Performance Pay Design of Modern Enterprises —— Performance Pay Design of Evergrande Group

In modern enterprise management, it is the core task of human resource management to establish a scientific performance management system and an effective salary incentive mechanism to continuously enhance the core competitiveness of enterprises. Performance-based pay system can not only guide enterprise strategy and drive employees' behavior, but also fully develop human resources, retain outstanding talents for enterprises and realize a win-win situation for enterprises and employees.

Keywords: performance pay design

1. remuneration and wages

1. 1 salary

Salary is the labor cost that organizations must pay in the form of direct currency and indirect currency, and it is also an important means to attract and retain outstanding talents. Salary system is the most important issue in enterprise organization, and it is also the most contradictory and difficult work in human resource management. Wages include wages and benefits. It is not only the labor remuneration of employees in the organization, but also the cost of the organization. Salary is an incentive.

1.2 salary

1) wages are divided into piece-rate wages and hourly wages according to the measurement form. Hourly wages are measured according to the working hours of employees, which are mainly divided into hourly wages, daily wages, weekly wages and monthly wages. China is mainly based on the monthly salary system. At present, there is also an annual salary system, but the payment is still monthly. Piece-by-piece wages are calculated according to the pre-specified piece-by-piece unit price and the number of qualified products produced by employees or a certain amount of work completed.

2) Salary is divided into post salary, functional salary and structural salary according to the content. Post salary is a salary system that determines the salary level according to the post level of employees. Functional wage is a wage system that determines the salary level of employees according to their technical, physical and intellectual conditions. Structural wage system is a combination of post salary and functional salary, which is mainly used in enterprises.

3) Wages and salaries

Salary gradually develops into salary, which changes with the deepening of human resource management concept. The range of salary is wider than that of salary. Based on the theory of human needs, it designs the economic and non-economic remuneration of employees and creates economic benefits for enterprises to make rational use of labor costs. Wage is relatively fixed, which is an important indicator for employees to measure their returns and contributions. However, the salary-based compensation system can no longer meet the needs of human resource management. It is necessary to design a long-term and short-term salary system with incentive mechanism that matches the corporate culture and corporate goals and can fully mobilize the enthusiasm of employees.

1.3 salary system

Although the composition of the salary system varies widely, the general salary system should include four basic components: basic salary, performance salary, subsidized salary and insurance benefits. Basic salary is generally a fixed part of the salary system, which is determined according to the employee's post level, position, job responsibilities and other factors and is the leading part of the salary structure; Performance pay is a part of the salary system that changes greatly, which is determined according to the overall performance of employees or teams; Allowances and wages refer to other allowances and subsidies designed by enterprises for employees; Employee benefits include insurance, economic benefits and public benefits. Employee insurance includes compulsory insurance and non-compulsory insurance. What an enterprise must establish for its employees is compulsory insurance (pension, medical insurance, housing accumulation fund and unemployment insurance), and non-compulsory insurance includes enterprise annuity and personal accident insurance. The public welfare of employees mainly includes public environment, housing, riding, labor protection, vacation and so on. The economic benefits of employees mainly include telephone bills, meals, holiday shopping vouchers and transportation subsidies. Enterprises attract employees not only economic income, but also employee benefits. Employee welfare is an important part of the salary system and a measure to attract and retain talents.

2. Salary design principles

Salary design must follow the following principles:

Strategic principles. The strategic principle requires that in the process of salary design, on the one hand, we should always pay attention to the strategic needs of enterprises and reflect the strategy of enterprises through salary design; On the other hand, the realization of enterprise strategy should be transformed into expectations and requirements for employees, and then the expectations and requirements for employees should be transformed into salary incentives, which is reflected in the salary design of enterprises.

Fairness principle: The fairness principle of salary system design includes internal fairness and external fairness. Intrinsic fairness refers to a psychological feeling of enterprise employees. After the salary system of an enterprise is formulated, employees of the enterprise should express their recognition and feel that their salary is fair compared with other employees of the enterprise. External fairness means that the salary provided by enterprises is competitive compared with other enterprises in the same industry, especially those with competitive nature. Only in this way can we ensure that we can recruit outstanding talents in the talent market and retain existing outstanding employees.

Competition principle: that is, salary design must have internal and external competitiveness.

Incentive principle: To truly solve the problem of internal fairness, we should appropriately widen the income gap according to the ability and contribution of employees, so that those who make great contributions can get higher salaries and fully mobilize the enthusiasm of employees.

Economic principle: salary design should follow the economic principle, carry out labor cost accounting, and control labor cost within a reasonable range.

Principle of legality: The salary design should conform to the laws and policies of the country, which is the most basic requirement, especially the relevant mandatory provisions of the country, which enterprises cannot violate in salary design.

3. Salary design steps

3. 1 Before salary design, job evaluation should be conducted first. According to their own characteristics and organizational structure, enterprises establish job descriptions after job design, and according to certain objective standards, through the analysis of job intensity, technical requirements, job responsibilities, environmental sanitation and other aspects, compare and evaluate the difficulty of the job itself and the quality requirements of the person in charge, and determine the job level.

3.2 The design of salary system should first budget the total salary, and divide the total salary into pieces, and determine the proportion according to the total salary of the post, that is, the proportion of basic salary, performance salary, overtime and allowances and bonuses. The proportion of variable part and fixed part in employees' monetary compensation is basically half. The fixed part of salary can make employees feel stable, while the variable part is incentive.

3.3 Salary hierarchy is the most fundamental and important basis of salary design. According to the enterprise characteristics, organizational structure and post setting, the salary level is determined, and the salary level coefficient is determined, so as to determine the post gap. The post difference reflects the labor difference, refers to the external labor market price and internal fairness, establishes the post salary level, and thus determines the base of employee salary composition. Salary design must also adapt to the performance system of the enterprise, that is, performance salary and post salary must be combined. Performance incentive is an important part of salary system, and the design of salary system must consider the increase and decrease of salary in order to be incentive.

3.4 In the formulation and implementation of the salary system, timely communication and necessary publicity or training are one of the factors to ensure the success of the salary reform. Labor remuneration is essentially the result of weighing the cost of human resources and the needs of employees. There is no absolutely fair salary method in the world, only a salary system that employees are satisfied with. Therefore, in the implementation of the salary system, it is necessary to constantly revise the salary standard and salary structure, which is a process of continuous improvement and dynamic management.

4. Performance pay design

4. 1 salary structure change

From the post salary before the 1990s, to the system of equal pay for the same post after the 1990s, and now to the system of performance salary or salary point post salary, it has experienced the change of management system, gradually adapted to the needs of marketization, and constantly enhanced the competitiveness of enterprises. Skill wages are linked to the technical level of employees, and gradually evolved into skill wages based on working years because of their long duration. This wage system seriously limits the enthusiasm of young people to work and study, which is not conducive to the development of enterprises. After 90, enterprises gradually implemented the salary form of post salary, supplemented by skill salary, highlighting the post contribution of employees. However, this form of salary was replaced after 2000, because equal pay for the same post could not reflect the difference of individual level of employees, which hindered the enthusiasm of young people and did not meet the requirements of modern human resource management. Therefore, the new broadband salary is more humane and more scientific and reasonable. Under the impetus of marketization, enterprises try out salary system and performance-based salary system one after another, and gradually mature in continuous exploration, and successfully apply performance management to enterprise management, which improves the management level of enterprises and also improves the management level of enterprises.