How to maximize the use of salary incentives

The competition and challenges faced by enterprises are self-evident, and corporate salary is the lever for the survival and development of the whole company. Encourage and attract talents, mobilize the creativity and vitality of employees in various positions, and maximize the advantages of human resources. Based on this, this paper makes a preliminary research and exploration on the salary incentive mechanism of Chinese enterprises in order to maximize the optimization of the salary incentive system, give full play to the best potential of employees and create greater value for enterprises.

I. the meaning of salary

in economics, salary refers to the sum of all the labor remuneration that workers get by relying on labor. In the modern sense, enterprise salary refers to a kind of labor remuneration paid by enterprises to employees regularly or irregularly in legal tender and legal form to achieve enterprise goals [1]. Literally, salary means salary and remuneration, which is the return of services and contributions provided by enterprises to employees, and can be defined as direct salary and indirect salary. Direct salary includes: (1) salary (2) bonus (3) annual salary. Indirect compensation can include (1) welfare (2) bonus (3) equity. Among them, welfare is a kind of supplementary remuneration that is difficult to include and accurately reflects the situation, such as wages or bonuses, and can be paid directly without monetary form. Such as paid holidays, medical care, safety protection and insurance.

second, the meaning and principle of motivation

motivation, in short, is to mobilize people's enthusiasm for work and give full play to their potential abilities. From the organizational point of view, managers motivate subordinates, that is, to motivate and encourage subordinates to show proactive and qualified work behavior towards the desired goals of the organization [2]. Motivation was originally a psychological concept, indicating how a certain motivation was generated and what the reasons were, and what the psychological activities were like when people moved towards the established goals. Therefore, motivation can be understood as a spiritual force to promote and promote, which can play a role of behavior orientation to some extent. Some experts and scholars believe that motivation is that the subject stimulates the object by using some means or ways to achieve the expected goal. In some large and medium-sized enterprises, the goal of motivation is to mobilize the enthusiasm and creativity of employees in various positions and achieve the purpose of profit.

The principle of motivation can be discussed from four levels: Behavioral science theory holds that "performance = ability-degree of motivation". Under the condition of constant ability, the size of work performance depends to a great extent on the level of motivation. In other words, ability is the foundation, motivation is the driving force, and the most important thing is the enthusiasm and initiative of the object; From the perspective of hierarchy of needs theory, necessity is a necessary condition for human survival and development, which refers to someone's desire for a goal to motivate people's behavior, and is the source and internal driving force of individual enthusiasm.

the necessity and principle of salary incentive: incentive is the core of management, and salary incentive is the most important and effective incentive means in enterprise incentive. One of the purposes of salary incentive is to effectively improve the enthusiasm of employees, on this basis, promote the improvement of efficiency, and ultimately promote the development of enterprises. While the enterprise is profitable, the ability of employees can also be well improved and self-worth can be realized. Pay incentives should follow the following principles when implemented:

(1) The principle of fairness.

Fairness doesn't mean a big pot of rice. Just generalize. This kind of fairness is based on the consistency of employees' positions, levels and abilities, and it is horizontal fairness. The other is vertical fairness, which is based on the consideration of development process. Because an employee's development in an enterprise is process-oriented and continuous, his salary also keeps increasing with the accumulation of time.

(2) the principle of competition.

this principle requires that the salary system of this enterprise should be competitive with other enterprises, so that talents can be attracted and retained, and then talents can serve the development of the enterprise.

(3) Incentive principle.

Effective motivation needs the combination of high salary and scientificity, not just relying on higher salary to motivate employees' work enthusiasm. Scientific salary incentive should be based on stimulating employees' ability and closely related to their work performance.

(4) the principle of economy.

this principle requires that the salary incentive should be within the scope of the enterprise's affordability, profit accumulation and cost control, rather than blindly advocating high salary. Therefore, when the competitive principle and the incentive principle are applied to the salary incentive system, they are limited by the economic principle.