The human resources department needs to arrange the salary system from three aspects: salary basis, salary design and salary promotion, so that the salary system design can reflect the principle of fairness and meet the overall needs of the company's development.

Salary basis and standard setting

Employees are paid for two reasons: first, they meet the job requirements; The second is to complete the specific performance of each work according to the post requirements. However, what are the specific requirements of the post and how to evaluate the performance of the specific work require the human resources department of the company to complete a series of basic work such as job description, job description and performance evaluation index.

The human resources department first needs to decompose the company's business activities, determine the corresponding jobs, and clarify the job responsibilities and qualifications in the form of job descriptions. The definition of job responsibilities and the company's requirements for job qualifications are the basis for determining the fixed salary of posts.

At the same time, in order to evaluate the completion of specific work, the human resources department needs to establish an employee performance evaluation system, including performance evaluation indicators, ability evaluation indicators and attitude evaluation indicators. By evaluating employees' performance on the post, the company determines their contribution to the company's performance, and then determines the proportion of employee bonuses. Employees may exceed or fail to meet the basic requirements of performance, which directly affects the amount of bonuses they receive. The results of employee performance appraisal are the basis for determining post performance bonus.

Salary structure and salary design

The salary system based on job description and performance appraisal system generally includes fixed salary+performance salary+welfare and other forms.

The design of fixed salary must ensure the relative internal fairness and external fairness of employee salary level.

Internal fairness means that salary can reflect the value contribution of each position to the overall performance of the company. Generally speaking, human resources departments need to evaluate positions from three aspects: 1. Requirements of knowledge and skills for this position. Requirements of the position for problem solving ability 3. The size of the position responsibility. The human resources department uses the analysis results to determine the range of wage differences and establish a wage level ladder. One of the meanings of internal fairness is that the salary gap between posts should be reflected.

External fairness refers to whether the salary is competitive in the market. On the one hand, the salary level of each position in the company needs to be adjusted with reference to the salary level of the same industry to ensure that the company can recruit suitable talents at this salary level; On the other hand, the human resources department also needs to know the salary changes of competitors regularly to ensure that the company's salary level remains dynamic and competitive.

However, because the evaluation of post value is not completely accurate, enterprises often introduce performance-based pay system, with the aim of making the pay structure fairer, more competitive and more flexible, thus stimulating the enthusiasm of employees. Performance pay mainly refers to the performance bonus determined by the performance appraisal results of employees-employees engaged in the same job may eventually have different incomes due to different performances.

In addition, the company may also decide whether to issue the year-end bonus according to the annual benefit.

Welfare is a necessary supplement to the salary system, which can effectively buffer employees' relative dissatisfaction with fixed salary and performance salary. For example, most foreign-funded enterprises reduce employee turnover by providing preferential welfare policies, and human resources departments should also formulate corporate welfare systems with reference to the welfare levels of other enterprises.

Staff development and salary increase

A reasonable salary system should promote the rise of employees' salary level. The human resources department must clarify the career development route of different positions, improve the training system, and provide employees with opportunities to compete for posts or further promotion.

On the one hand, human resources departments need to actively implement training programs to give employees opportunities to improve their skills. The improvement of employees' skills is often accompanied by the improvement of salary level and work performance appraisal, which is particularly important in the human resource management system with the appraisal reward and punishment system as the core. Training can greatly improve the quality of employees and stimulate their enthusiasm, which is an important auxiliary management measure.

On the other hand, the company should provide fair employment opportunities and make the career development of employees feasible. Companies can give employees as many opportunities as possible to win high-paying jobs by competing for posts, implementing rotation and regular exchanges. For example, if employees compete for posts, they will go to places where they have the ability to compete. When they fail in the competition, they will be paid less than others, so there is nothing to say. This kind of competition should not be one-off, but should be regular, such as once a year, so that every employee has equal opportunities and encourages every employee to make progress.

I hope the above answers are helpful to you!