Zhifengyun: In the process of reform of state-owned enterprises, salary distribution is considered to be an important part of deepening the reform of state-owned enterprises and establishing a market-oriented operation mechanism because it involves the vital benefits of enterprises and employees, and is the bull's nose of the three system reforms.
Author|Zhiben Consulting market-oriented operation mechanism reform expert Xu Weibo
Responsible Editor|Billion Editor|Ah Ling
Reforming and improving the salary distribution system of state-owned enterprises is not only an important means to mobilize the enthusiasm and creativity of employees and promote the optimization of talent efficiency, but also an inherent requirement for deepening the reform of state-owned enterprises and establishing modern enterprises.
In 2001, the "Opinions on Deepening the Reform of the Internal Personnel, Labor and Distribution Systems in State-Owned Enterprises" clarified that "the implementation of a variety of distribution methods based on distribution according to work, giving priority to efficiency and taking into account fairness", and the 2016 "Guiding Opinions on Further Deepening the Reform of the Labor Employment and Income Distribution System of Central Enterprises" required "establishing a mechanism of 'one adaptation, two linkages' to reasonably widen the income distribution gap".
In addition, the policy documents on the management of the total salary budget, the remuneration system for enterprise leaders, and the guidelines for the distribution of remuneration for scientific and technological talents and skilled talents have further clarified and improved the salary distribution system of state-owned enterprises.
When we comb through these policy documents, we will find that the content on the internal salary distribution of state-owned enterprises is relatively scattered and lacks a certain systematic.
Recently, the General Office of the Ministry of Human Resources and Social Security issued the Guidelines for Internal Salary Distribution in State-Owned Enterprises (Renshe Fa [2023] No. 14) (hereinafter referred to as the "Guidelines"), which provides principles, norms, processes and methods for state-owned enterprises to establish and improve the internal salary distribution mechanism, thus forming a complete management closed loop of SOE salary distribution policy system.
As discussed in previous articles (refer to "5 Charts, Read the Salary Reform of State-Owned Enterprises"), internal salary distribution is a further implementation of the value concept of enterprise distribution and a secondary distribution within the enterprise.
The success of state-owned enterprises is inseparable from the efforts of the vast number of employees, who are value creators, so it is very important to share the success of enterprise reform and give them a sense of security and gain.
At the same time, the remuneration of the vast number of employees is the majority of the total salary of enterprises, which is related to the fairness of state-owned enterprises and the stability of state-owned enterprises.
Through long-term research and consulting practice, Zhiben Consulting has concluded that in order to do a good job in the reform of internal salary distribution in state-owned enterprises, it is necessary to solve the four core issues of internal fairness of salary distribution, external competition, salary and performance matching relationship, and salary and ability matching relationship.
After in-depth study of the relevant content of the Guidelines, we found that the answers to these four core questions can be found in the policy documents, and we will break them down and show them one by one.
Core question 1: How to solve the internal fairness of compensation distribution?
The internal fairness of remuneration is the recognition of the relative value of employees' work within the enterprise. Whether it is fair internally greatly affects employee satisfaction and loyalty.
In the internal salary distribution of state-owned enterprises, it is necessary to establish a basic salary system based on post wages, and implement the practice of setting salaries by post and changing salaries from posts.
On the basis of the established standardized post management and sequence management, the job value assessment is implemented and a salary distribution system based on the post value is constructed. In short, the relative value of the position determines the broadband salary range, and the high-value position has a higher salary range value.
Therefore, job valuation determines the internal compensation distribution, which is the main measure of internal fairness.
To carry out job value assessment, enterprises must first do a good job in the basic work of organizing the position system.
The Guidelines require enterprises to optimize their internal organizational structure, continue to deepen the "de-institutionalization" of corporate headquarters, and improve management efficiency;
Establish the internal management, technology, skills, marketing and other job sequences;
Carry out job analysis from the dimensions of job responsibilities, workload, level subordination, work authority, assessment indicators, and job qualification conditions, and compile job descriptions.
Enterprise organization optimization is the basic work of job value evaluation, which determines the accuracy and objectivity of subsequent evaluation results, and enterprises should pay full attention to it.
Another core issue of job valuation is how to construct a methodological model of job valuation, as mentioned in the Guidelines, which include simple ranking method, pairing comparison method, factor comparison method and factor scoring method.
The simple ranking method, pairing comparison method and factor comparison method are mainly suitable for enterprises with a single nature of work and fewer positions, and the factor scoring method is mainly suitable for enterprises with larger scale and complex organizational structure.
At present, the most commonly used method of enterprises is the factor scoring method, its core is the design evaluation elements, mainly including the impact on the enterprise, knowledge and skills, creativity, labor intensity, market scarcity, etc., each evaluation element should be given weight, clarify the score of each element under different requirements conditions, reflecting the importance of the value of the post.
The job value evaluation results determine the relative value of each position in the enterprise, form the position level of the same job sequence or the positions with similar value in different job sequences are classified as the same job level, and at the same time design and form the salary broadband of the enterprise based on the job value level with reference to the market salary price and the historical salary level of the enterprise.
Through job value assessment, we can determine the relative value difference of positions in enterprises according to unified evaluation standards, and form a salary distribution mechanism based on job value, and establish a distribution system based on post salary and post to salary.
Core question 2: How to reflect the external competitiveness of salary distribution?
The level of remuneration of enterprises and the resulting competitiveness of enterprises in the labor market are external competitiveness.
State-owned enterprises should give full play to the decisive role of the market in salary distribution, realize that the salary strategy and level of enterprises are compatible with the economic benefits of enterprises and market salary prices, and enhance the market competitiveness of enterprises.
Therefore, the salary level of the position needs to be determined by considering various factors, rather than the higher the better, because it involves the total cost of manpower of the enterprise.
In order to determine the appropriate and competitive salary level, enterprises usually need to carry out salary level market research and benchmarking, scientifically formulate corporate salary strategy, and reasonably determine the salary level of the enterprise.
The Guidelines propose that the salary level market benchmarking can select the salary data released by the government's human resources and social security, statistical departments, listed companies, associations and chambers of commerce, authoritative consulting institutions, etc. for benchmarking. Benchmarking data should be comparable and trustworthy, strengthen data comparison with different source channels, and avoid relying too much on a single data source.
In particular, for high-end talents, R&D, technology, marketing and other professional talents that are difficult to obtain, the salary level of the industry, region or benchmark enterprise is comprehensively considered when benchmarking in the external market.
The focus of salary level benchmarking is the choice of salary strategy, usually the types available are leading type (75th percentile), matching type (50th percentile), lagging type (25th percentile), mixed type (hierarchical classification to determine salary level), enterprises should reasonably determine the salary benchmarking quantile value according to the development strategy and stage, determine the corporate compensation strategy.
At present, the majority of enterprises adopt a hybrid strategy in practice, under which enterprises mainly adopt different strategies for different internal departments, different positions and different talents;
For example, core talents such as technology research and development can adopt leading strategies, while administrative personnel often adopt matching or lagging strategies to minimize labor costs.
Core question 3: How to achieve the matching of compensation and performance in salary distribution?
The internal salary distribution of state-owned enterprises should adhere to the main position of distribution according to work in income distribution, and practice more work and more rewards.
Salary distribution should change the average distribution method of "big pot of rice" and "good work and bad work" in the past, establish a strong link between salary distribution and assessment results, and realize the incentive mechanism of salary distribution according to performance contribution. Therefore, how to match salary and performance in salary distribution is another core issue that enterprises should pay attention to.
Performance-based pay is a relatively high proportion of current compensation, generally, the higher the rank, the closer to the front end of the market, the higher the proportion of performance-based compensation; The lower the rank, the relatively stable nature of the work, and the smaller the proportion of performance-based pay.
The Guidelines propose that the performance remuneration of management and marketing positions generally accounts for more than 60%, and the basic remuneration of technical and skilled positions generally accounts for more than 50%.
It can be seen that the performance appraisal determines the performance compensation, which is the key point of internal salary distribution. This requires enterprises to comprehensively establish a scientific performance management system, establish a complete performance management cycle from the aspects of target design, performance communication, performance appraisal, and application of performance results, and ensure the consistency of the interests of enterprises, departments and individuals.
Enterprises should link the total salary to the overall efficiency of the enterprise, and individual compensation should be determined by the performance contribution of the organization and individuals. When the efficiency of the enterprise declines or the personal performance appraisal does not meet the standard, the total salary of the enterprise declines, and the salary of employees also decreases accordingly, so as to realize the "income can increase or decrease" of salary reform.
There are many methods of performance appraisal, and enterprises can individually choose or combine the objective and key results method (OKR), 360-degree performance appraisal, key performance indicator method (KPI), balanced score card method (BSC) and other methods to carry out performance appraisal.
In addition, the Guidelines emphasize the need for hierarchical classification design and refinement of personalized assessment indicators;
For example, for the assessment of different types of enterprises, the commercial category should highlight the indicators of economic benefits, and the cultural public welfare category should highlight the relevant requirements of publicity, culture and other departments, social benefits and other indicators, etc.;
For job assessment, management and marketing positions should generally focus on indicators such as profit, sales revenue, and completion rate of key tasks, and technical and skilled positions should generally focus on assessing the professionalism, innovation and performance performance, innovation achievements, actual contributions and other indicators of various technical and skilled talents.
In short, enterprises should design differentiated and personalized assessment and evaluation content of "one enterprise, one table, one person, one table" in combination with the functional positioning and job characteristics of the enterprise, so as to achieve the objectivity and fairness of performance appraisal.
Core question 4: How to achieve the matching of salary and ability in salary distribution?
Performance and ability are two aspects that reflect the value of talents, and the two are both different and related. Performance is the result, and talents with higher capabilities have the possibility of achieving better performance, and the ability of talents ultimately needs to be reflected and measured through performance.
The role of competence in compensation distribution is often simplified or even ignored by enterprises. However, the linkage between ability and salary can not only make the contribution and salary of talents more matched, but also establish a clear orientation of "those who work more get more, and those who are skilled get more".
The application of competencies in compensation distribution in at least two aspects,
First, the level of career development channel is determined by ability, which in turn corresponds to the salary level;
The second is to determine the different salary bands of the same salary grade through competency evaluation, reflecting the difference in ability of the same position.
The Guidelines issued this time have clear provisions on career development channels and competency evaluations.
Enterprises should establish career development channels for employees throughout their career cycle, and reasonably determine employee level promotion. New employees and mature employees should be treated differently in terms of level promotion and development, and at the same time encourage gradual growth into expert authority, the career channel of technology and skills can be equivalent to the main post of the internal department, and the high-level technical talents and high-skilled leading talents can be equivalent to the senior management positions of the enterprise.
In addition, the Guidelines also emphasize the need to design a conversion system between different career development channels, clarify the horizontal mobility correspondence of different job channels, build career development channels for all employees such as management, technology and skills, and promote the comprehensive and sustainable development of all types of talents.
The evaluation of competency should include knowledge standards, behavior standards, competency standards, and experience standards, and the results of competency evaluation will be used as the basis for employee rating and salary.
Write at the end
The new round of deepening and upgrading of SOE reform proposes to improve a more accurate, flexible, standardized and efficient income distribution mechanism, which puts forward higher requirements for SOEs in internal salary distribution reform.
The issuance of the Guidelines provides principles, norms, processes and methods for the majority of state-owned enterprises to refer to, but enterprises should design and optimize the internal salary distribution system under the framework of the Guidelines and combine the actual situation and characteristics of enterprises in their own situations, solve the core problems of salary distribution, fully mobilize the enthusiasm, initiative and creativity of employees, truly play the stimulating role of salary distribution, and promote the sustainable and healthy development of enterprises.
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