With the advent of the information age, compensation management has become one of the keys to enterprise management. However, the traditional fixed salary model has been difficult to adapt to the needs of modern enterprises, which restricts the development of enterprises. As a result, more and more companies are exploring new ways to manage compensation to achieve the goal of being efficient, transparent and motivating employees. In this article, we'll dive into some of the new, disruptive ways of managing compensation and illustrate how they can motivate employees and build great businesses.
1. Performance-centered compensation management model
The performance-centered compensation management model is one of the new compensation management methods widely adopted by enterprises in recent years. The key to this model is to link employees' compensation with performance appraisal, achieve a balance between employee effort and return, and make employees feel that their work has made a positive contribution to the company and receive corresponding rewards. This management style can not only motivate employees to work, but also better help enterprises achieve goals and improve performance.
For example, at a high-tech company, the company divides employee compensation into fixed compensation and performance bonuses. The amount of performance bonus will be determined based on the amount of tasks completed by employees according to the indicators set by the company, task quality, work effectiveness and other performance indicators, providing employees with more opportunities for ability improvement and development, and also allowing the company to achieve higher efficiency.
2. Stock option plans for start-up enterprises
A stock option plan is a way to extend compensation incentives to an employee's equity. This incentive is often used in startups or high-tech companies, where the business is often non-standardized, and it is not easy to determine the value of employees' output during their tenure. Stock options provide flexible and sustainable incentives for employees by directly linking employee compensation to the company's development results, while also promoting team cohesion and stability.
For example, in Facebook's early days, the company offered its employees a lucrative stock option plan. This program directly links the creative contribution of employees to the company's development value by allowing employees to hold some of the company's stock or options. This approach not only stimulates innovation and motivation of employees, but also helps the company achieve rapid growth.
3. "Results-sharing" plan
The "Achievement Sharing" program is a way to promote long-term incentives and equity incentives in the enterprise. This type of plan means that the company shares the company's operating results with employees, and employees receive equity or options in the company, and share the risks of success and failure with the company. This approach can stimulate the creativity and responsibility of employees, and at the same time mobilize the enthusiasm of employees and increase the vitality of the enterprise.
Meituan, for example, uses an incentive method called the "Shared Results Program." The program provides employees with the opportunity to hold shares in the company and allows employees' creative contributions to influence changes in the market value of the stock. This kind of program not only makes employees feel the direct rewards of their work, but also enhances employees' attention and participation in the long-term growth of the company, improving the overall competitiveness of the enterprise.
In short, these new compensation management methods subvert the traditional fixed salary model, achieve the balance between employee effort and return, mobilize employee enthusiasm and creativity, and realize the improvement and long-term development of enterprise efficiency. "Performance-centered compensation management model", "stock option plan" and "achievement sharing plan" are representatives of enterprise compensation management innovation, and are also one of the important paths for enterprises to enhance competitiveness and long-term development.