Employment Style and Salary of Enterprises at Different Stages of Development

By Philip Perez,2017-12-04 19:51:00
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Employment Style and Salary of Enterprises at Different Stages of Development

The style of enterprise employment should be different according to the different development stages of the enterprise. Generally speaking, the development of the enterprise will go through the initial stage, growth stage, maturity stage and decline stage. Enterprises in different stages should choose their employment style and strategy according to their respective characteristics.

Initial Start-up Period

In the start-up phase of the enterprise, because the various conditions of the enterprise is not perfect, at this stage, the primary goal of the enterprise is survival, followed by development issues. Therefore, at this stage, the style of employing people should be meritocratic, do not blame the talent, as long as can create value for the enterprise, can be used. Historically, when Dafan and Qunxiong were together, the people chosen were often flawed, and under those specific conditions, if only meritorious deeds could be tolerated, even if the crime of murder and arson were committed. Such as Guan Yu of the Taoyuan Sanjie, he was carrying a murder case, but Liu Bei did not resent him.


In the enterprise has established a firm foothold, steady development, many conditions have been and the initial period is different. At this time the enterprise often has a certain strength, but also has a certain reputation, but the rapid development of the enterprise often in the employment area is overstretched, and the boss's personal ability is also subject to various challenges. As Chen Tianqiao, chairman of China Sheng Da Networks, puts it, some places have become bottlenecks for bosses. The essence of management is the ability to constantly find bottlenecks and solve them. When a boss is challenged with this ability, he or she does not know where the problem is, or where the problem exists but does not know how to solve it, then he or she should resort to professional managers.

At this time, the employment style should be a wide range of talents, while focusing on talent team building, a large number of selection, appointment and training potential better young people, the formation of talent echelon, and timely elimination of those who do not meet the needs of enterprise development. At this stage, enterprises need to consider the development of talent development strategy, because at this time the enterprise's competition has often become a comprehensive strength of competition, and talent, is the most critical factor of competition.


Enterprises to this stage, the cause of the foundation has been very solid, the talent team has been basically formed, the main style of employment should focus on the construction of the talent team, maintain and strengthen the combat effectiveness of the team to avoid internal attrition, at the same time, according to changes in the situation appropriate introduction of talent, for enterprises to inject some fresh blood to maintain the overall capacity of the team with the times.


When a company goes into a recession, it often manifests itself in many ways, such as a shrinking market, declining profits, a plethora of red tape, low morale, grumbling, talented people starting to leave one after another, and so on. The so-called freezing cold, the cold day, the emergence of many problems, it is not a matter of one day at a time. But these problems are, in a sense, human problems, which can be solved only by starting with people. At this stage, the hiring style that can often be considered is to cure chaos with heavy canons, to undertake large-scale organizational reform of enterprises, to withdraw a group of people who are no longer suitable for the need, to streamline their forces, to endure pain for a while, and perhaps to have the chance of re-survival.

Of course, the above views are just generalities, in the face of the actual situation, often need to make a specific choice, or even the use of the completely opposite style.

Three Modes of Salary Management

What kind of salary management mode an enterprise adopts should fully consider the development stage of the enterprise, the development strategy of the enterprise, the industry and region in which the enterprise is located and the scientific situation of basic management system such as talent selection and performance appraisal of the enterprise, etc. And the enterprise must dynamically adjust the salary management mode according to various contingency factors. The three basic salary management modes are as follows:

A. High incentive mode

20% of employees are individually negotiated and the other 80% are paid within a certain broadband range.

Performance orientation, that is, the increase or decrease of salary is mainly decided on the basis of the performance of the employee in the current period. Individual monthly performance remuneration is determined on the basis of the results of individual monthly appraisal; individual annual performance remuneration (such as bonus) is mainly determined on the basis of the results of individual annual performance appraisal.

The proportion of bonuses and performance pay is larger, the proportion of benefits and insurance is smaller, and basic pay is in the middle or upper middle range; such forms of pay as piecework pay and commission withdrawal.

Advantages: Motivational, flexible, but insecure for employees. Suitable for companies with high mobility, need to create a brand, and rapid growth; companies are in their infancy or fast growth.

B. High stability mode

Pay has little to do with individual performance, and employees' incomes are relatively stable. The main component of pay is basic (fixed) pay, with small bonuses and modest benefits and insurance ratios; or average basic pay, higher bonuses, higher allowances, and moderate benefit levels.

Advantages: staff mobility is small, more stable. Employees have a strong sense of security, but the incentive is poor, the burden of labor costs of enterprises. Suitable for business stability of enterprises and institutions; or enterprises in the late to mature stage of growth.

C. Medium incentive and medium stability models

A moderate proportion of base pay, bonuses and other wage supplements; or a lower base pay, where bonuses are tied to performance and costs. Additional pay such as benefits, allowances and insurance accounts for a higher proportion; or standard benefit levels.

Advantages: Consider meeting the safety needs of employees, reducing employee turnover and increasing business incentive. Suitable for more mature enterprises; enterprises in the mature or decline period.

Basic Structure of Salary and Welfare in Growth Enterprises

The practice of many enterprises has proved that the fast growing enterprises are generally suitable for adopting the high incentive salary management mode, and the basic structure design of salary and benefits introduced below has strong practicability and practicability in the practice of the fast growing enterprises.

1. Interpretation of remuneration and benefits

Compensation and benefits are the sum of the various forms of monetary income, services and benefits received by employees as a result of their work for the enterprise. These include wages, statutory and incentive benefits, bonuses and other subsidies, allowances, equity options and incentive funds.

2. Salary structure

Employee salary = fixed salary + floating salary + other

part fixed salary = post basic salary + basic quality additional salary

Post salary = post basic salary + post performance salary

Variable salary includes bonus, post performance salary, etc.

The other part refers to various subsidies, allowances and basic social insurance, etc.

3. Composition of basic salary and welfare items

A. Wages: The basic cash remuneration paid by an enterprise for work performed by an employee. Wages reflect the value of work or skills and are related to an employee's personal ability and performance. The withdrawal of the enterprise's total wages is linked to the enterprise's sales revenue.

B. Benefits: are established by the enterprise in accordance with relevant national and local regulations or in accordance with the enterprise's own need to motivate employees. Benefits are divided into statutory benefits and enterprise's self-determined incentive benefits.

C. Allowance: an additional allowance for a particular type of work or position, which is a form of compensation for the difficulty of fully and accurately reflecting the situation. The allowance is generally related to the position or type of work of the employee.

D. Bonus: A monetary reward paid by an enterprise for the excess labor performance of its employees, which is a monetary reward paid by the unit to encourage employees to improve their labor efficiency and quality of work. The bonus payment is related to the employee's job performance and is paid to the employee who meets the reward conditions. The withdrawal of the total bonus is linked to profit.

E. Special awards are established to motivate employees to give full play to their creativity and initiative in their work and to create special value and benefits for the enterprise, including the President / General Manager Award Fund, special commendations, special contribution awards, etc., awarded in the form of bonuses. Examples of specific awards are detailed in Chapter II of Part II of this book 4. The establishment of reward and punishment system.

4. Adjustment of remuneration and benefits

A. Enterprise overall compensation and benefits increase ratio can not exceed sales revenue growth rate and operating profit growth rate.

B. The adjustment of employees' individual remuneration and benefits shall be evaluated periodically according to certain conditions, such as once a year. The adjustment conditions are:

Change of employee qualifications and adjustment of salary scale.

Adjust salary scale according to annual performance appraisal results.

Adjust salary scale according to reward and punishment regulations.

Adjust salary scale according to promotion.

Other special circumstances.


The post salary is the embodiment of the post value. The post value needs to be determined by the post evaluation and embodied by the rank. The post evaluation and the rank division are the basis of determining the post salary.

Job evaluation

Job evaluation is to assess the value and importance of a position (not an individual) by analyzing various aspects of the position. Job evaluation generally considers three balances:

First, the external balance: enterprises to employees' wages compared with the market price of the same industry, with reasonable comparability;

second, internal balance: enterprises to employees' wages and the relative intrinsic value of the position in line with;

third, individual balance: enterprises to employees engaged in the same post, to reflect the characteristics of different value created by different people, that is, competent staff wages than the weak staff to achieve a high wage balance under the general conditions.

Job evaluation is usually assessed by the job evaluation team, which consists of the main leaders of the company who are familiar with the business, the heads of the relevant departments and the relevant personnel of the human resources department.

Warm Tip: If the enterprise is in the development of a very mature industry, this industry can refer to the general position value evaluation results and the position of the market price situation, combined with the actual situation of the enterprise, the value of the job to be assessed.

Classification of ranks

The rank is the rank of the post. It is the concrete embodiment of the post value. Different ranks correspond to different post wages. The rank is not equal to the administrative level. If the post of the same administrative level is of different value, the rank is also different. The rank is the basic basis for modern enterprises to formulate the salary. The division of the rank generally includes the division of the class, the layer and the grade.

Calculation of post salary

The post salary calculation formula is as follows:S = K (1 + N Q)

S-post salary; K-post salary base; N-step number of occupied posts; Q-step difference coefficient

Occupational salary base: The wage base is the basis for calculating wages, which is the basis for determining wages for higher positions in the same category. The wage base is not necessarily the same for different categories and levels. The wage base is established by an enterprise on the basis of its remuneration strategy and with reference to the history of the enterprise and the standards of the same industry (salary survey).

Differential Coefficient:

The grade difference coefficient is the difference ratio of the salary of two adjacent positions. The grade difference coefficient is formulated by the enterprise according to the salary strategy, salary span and reference to the standards of the same industry.

6. The basic quality of additional wages

The basic quality additional salary is the salary reflecting the knowledge and experience of the staff. It is determined according to the education, professional title, length of service and age of the staff.

Calculation of additional salary for basic quality: additional salary for basic quality = seniority allowance + seniority allowance + academic qualification allowance + title allowance.


The performance pay is a part of the post pay based on the achievement of performance appraisal. The calculation formula of performance pay is: performance pay = standard value of performance pay performance coefficient of performance appraisal

8. Welfare

Generally, it refers to non-cash income, which mainly includes various kinds of training, supplementary insurance outside the basic social insurance, free travel, paid vacation, transportation and communication subsidies that are actually sold within the quota, good and healthy working environment, etc.

“China's local business success practices1 ”design a variety of welfare programs to retain talent

The welfare policy of an enterprise should be consistent with its overall competitive strategy. As the competitive strategy of an enterprise changes, the corresponding welfare policy should be adjusted accordingly.

Founded in 1984, the high-tech S company, faced with a shortage of high-tech talent and high attrition rate in many domestic enterprises, has been able to maintain a virtuous circle of staff attrition rate of 5%. It is understood that the salary level of S company is not high in the local area, how can it attract and retain talent?

"We are committed to creating a family of companies with a healthy competitive atmosphere, working to enable our employees to share in the success of our business, but also working to make our welfare policies an incentive for our employees to strive to excel." Decision makers at S are increasingly aware that people are increasingly becoming the key to the success of high-tech companies in market competition.

It is understood that S Company's benefits include bonuses, various performance-related bonuses; dividends, statutory benefits, such as pensions, provident funds, health insurance, unemployment insurance and various types of statutory paid leave, which are shared with employees upon completion of the Company's profit targets. Clothing fees, housing allowances, commercial vehicles and comprehensive training are paid annually.

For example, comprehensive training includes induction training, management skills training, overseas training, overseas posting, company-paid academic education and special interest-free loans, supplementary insurance benefits, special benefits, and so on. In addition, employees are reimbursed a certain amount of clothing costs every year and are required to go to the company designated two world-famous brand stores to buy clothing, which will make employees feel extremely proud of being in the company.

“China's local business success practices 2” Welfare fund gives employees peace of mind

Rongsheng Holding Co., Ltd. stipulates that welfare benefits are special funds established within the company. They are drawn from after-tax profits in a certain proportion to solve the welfare problems of employees such as medical and health care, retirement pension and hardship allowance. The main ones include: medical subsidy fund, relief pension fund, retirement pension fund and public welfare fund, each accounting for a certain proportion. The specific provisions are as follows:

Establish a medical aid fund within the company to provide certain subsidies for medical and hospital expenses incurred by employees during their stay in hospital due to illness, excluding those paid by social labor insurance institutions. This part of the fund accounts for a certain proportion of the welfare fund and is managed and used by the welfare protection committee in accordance with the regulations.

Establishment of a relief pension within the company, with a certain subsidy for employees in special circumstances or living in difficult circumstances. This portion of the fund accounts for 8 per cent of the welfare fund, and the establishment of a special account is regulated by the Welfare Security Committee.

Establish a retirement pension fund within the company for the retirement pension expenses of employees, accounting for a certain proportion of the welfare fund. Divided into retirement pension and pension (excluding social co-ordination).

Establish a public welfare fund within the company, which accounts for a certain percentage of the welfare fund's expenses for organizing recreational activities, holiday allowances and other welfare items. Set up a special account to be handled by the Welfare Protection Committee as required.

Enterprises to implement the above basic welfare system from the concern for the most basic interests of employees to consider the issue, for example, if the bankruptcy of enterprises, in accordance with legal procedures should first repay this part of the employee benefits ; Employees can also be hospitalized because of illness to enjoy a certain standard of medical benefits, as well as retirement can be a one-time pension, these welfare measures so that employees no worries, and have a strong sense of security, to a large extent to encourage employees willing to work in the enterprise long-term.

Several employment psychology that managers need to overcome

To be fair to subordinates and to be meritocratic, managers should first overcome those bad employment psychology.

Selecting, retaining and employing people out of the public mind is one of the qualities a manager must possess. However, in fact many managers are unable to do so. The reason why they do so can be said to be the result of some ingrained inertial thinking, which is caused by some wrong employing ments.Therefore, to be fair to their subordinates and to be meritorious, managers should first of all overcome those bad employing people.

(1) The psychology of cronyism.

Cronyism refers to the fact that a manager, regardless of his subordinates' moral qualities, chooses only those with whom he has good feelings and close ties, or appoints his own relatives in the arrangement of employment or major tasks. It is mainly manifested in the following four aspects:

One is to "draw a line with me". Those who advocate and flatter themselves take care of and promote others. On the other hand, they are not to be reused and taken care of. The other is that "clientelism is affinity". All good friends, old colleagues, and people who get along with them, regardless of whether they are virtuous or talented, are given priority in hiring.

Second, "only faction is pro". All good friends, old colleagues, and their own get along with the people, regardless of whether they have merit and talent, in the employment of priority.

Third, "relationship first". That is, for those who have "relationship" with their own people, not "relationship" to let them side.

Fourth, the bloodrelationshipas a standard of employment, resulting in the Department of the trend of family-oriented. Personnel inbreeding, often distort the employment standards, but also suppress the smooth growth of other subordinates.

(2) Generation-based psychology.

This mentality means that managers use seniority, age, and seniority as the main basis for promoting and using talent. When promoting subordinates, regardless of their aptitude, they only mechanically rank them according to age and seniority from top to bottom. Although seniority is a historical record and, to a certain extent, reflects the experience of their subordinates, we cannot make it absolute, neither can we draw qualifications and aptitudes, etc. People's ability and length of service, seniority has a certain degree of connection, but seniority is not entirely proportional to the actual talent, the phenomenon of inverse ratio is not rare. If the manager in the employment of people to adopt the way of seniority, will bring great harm to the department:

First of all, it will hinder the growth of a large number of young and middle-aged talent, which is contrary to the laws of modern management development. Second, it hinders the talent competition, dampens the enthusiasm and creativity of talent, so that people with real talent are suppressed, buried, talented, ambitious difficult to pay.

(3) The psychology of misrepresentation.

In almost every organization, there are those unscrupulous people who, in order to achieve despicable ends, tend to use improper means, spread gossip, interfere with the manager's determination and intention to employ people, make it difficult for the manager to distinguish truth from falsehood, and often end up trusting slander.As a result, there will inevitably be bad consequences:

First of all, it represses the excellent talent, good and bad, for conscientious, hard work, loyalty and honesty, do harm to those who do not want to exceed the moment; for those who have the courage and ability to dare to break through resistance, pioneering and enterprising will also hurt.

Secondly, it is easy to make the internal atmosphere of the department worse, suppression of evil, right and wrong, loyalty and betrayal upside down, good people by gas, suffering, the wrong mind of the generation of praise, so that the organization of public opinion, the value of the guide deviated from the normal goal.

Finally, it will also damage the authority of the manager. By listening to the letter, indulging slander, will make the manager lose the trust and goodwill of those who are really honest subordinates, is not conducive to the smooth development of the work.

The decision maker of a certain enterprise is because of jealousy psychology and letter slander psychology, the good end of an enterprise collapsed, a large number of talent loss, reputation decline, product sales do not go out, finally the enterprise had to close down.

(4) Fear of taking risks

There are also managers who believe that young people are weak, that people with strong personalities tend to make trouble, that people who are not familiar with them are not at ease, and that there are greater risks if they are entrusted with important tasks. Under the influence of this psychology, managers are often forced to fall back on their old friends and "live up to their names".

During the Warring States Period, Wei Hui Wang once asked Qi Wei Wang this question: "As the king of Qi, what treasures can you collect?"

Qi Wei Wang replied: "No."

"Small countries like ours have several pearls an inch in diameter, and the light from these pearls shines on a dozen cars," said Wei Huiwang.

King Qi Wei said: " My most cherished treasure is a wise man, which is different from what you call a treasure. I have a courtiers called sandalwood, I sent him stationed in Gotang, the northern Zhaoren dare not to invade; another courtiers called Qianfu, I sent him Xuduanzhou, he can manage the people who travel there more than seven thousand households; and a dozen people, like this kind of people, he does not live in the night.

Qiwei Wang's words, can be said that the reason why the state of Qi is rich and powerful, that is people-oriented, meritocratic.

The importance of employing people has always been the same throughout the ages. Today, managers who do not favor old friends, employ people fairly and are meritocratic can truly turn their departments into an invincible fighting collective.