In May 2023, the Ministry of Human Resources and Social Security issued the Guidelines for Internal Salary Distribution in State-owned Enterprises (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 from the perspective of better macro guidance and service to the salary distribution of enterprises.
This article will interpret the core points of the guidelines for the internal remuneration distribution of state-owned enterprises in light of the content of the Guidelines.
1
Post management
Post management and post value evaluation are the basic work of internal salary distribution, and post management is mainly to establish the post sequence and form the corresponding relationship between post development and salary system; The job value evaluation determines the relative value of the position within the enterprise, which solves the problem of internal fairness of compensation.
Classification design job sequence
The division of job sequences is generally determined according to the internal organizational structure, the nature of the job position and responsibilities.
It is generally divided into management, professional and other sequences, and can also be divided into management, technology, skills, marketing, etc. according to the actual situation of the enterprise. In addition, the job sequence can be further refined into the post category, and the larger scale or the higher degree of management refinement of the enterprise can also subdivide the post category into the post category.
Job value evaluation
After the job sequence is determined, the job value evaluation is carried out from the dimensions of job responsibilities, innovation requirements, work intensity and conditions, and market scarcity.
The Guidelines mention several methods, which can be adopted by enterprises of different sizes and structures:
1. Enterprises with a single nature of work and fewer positions: single sorting method, matching comparison method, factor comparison method
2. Enterprises with large scale and complex organizational structure: factor scoring method
unscramble
In the internal salary distribution of state-owned enterprises, it is necessary to establish a basic wage system based on post wages, and implement the practice of setting salaries based on posts and changing salaries at posts. So, how do you achieve this? The answer is job valuation.
Enterprises clarify the relative value of positions through job value evaluation, and the difference in job value after evaluation determines the broadband salary range, and high-value positions have higher salary range values.
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, clear elements of different requirements under the condition of the score, reflecting the importance of the value of the post.
2
Rank assessment
Rank evaluation provides an important basis for smoothing the talent development channel of enterprises and determining the salary of employees.
Rank level setting
It is necessary to consider factors such as the development stage, scale, and quality structure of the enterprise:
1. For start-up or small-scale enterprises, each job sequence can be divided into 3-5 levels
2. For mature or large-scale enterprises, it can be divided into 5-7 levels or more
Qualifications
The competency requirements or qualification requirements for positions at all levels generally include four aspects:
1. Knowledge standards: general knowledge and professional knowledge
2. Standards of conduct: organization and coordination, research and development, practical skills, etc
3. Ability standards: basic ability, management ability, execution ability, professional ability, general ability, etc
4. Experience standards: industry working years, organizational working years and work experience, etc
Mobility & Promotion
Combined with the relevance of different types of job sequences, on the basis of meeting the qualifications of the post, the conversion system between different career development channels was designed, and the horizontal flow correspondence of different job channels was clarified.
The Guidelines mentions:
1. The career channel of technology and skills can be equivalent to the main position of the internal department, and the high-level technical talents and high-skilled leading talents can be equivalent to the senior management posts of the enterprise.
2. There should be specific term regulations for the appointment of positions and ranks, and the evaluation should be re-conducted when the term of office expires. Those who have excellent results in the evaluation and recruitment of the term of office and have reached the qualifications of the previous rank will be given priority to be promoted, and those who pass the evaluation may retain their original rank, and those who fail to pass the evaluation will be reduced in rank.
3. Especially for enterprises with significant contributions or special talents, they can be promoted exceptionally, without being restricted by the requirements of working years and qualifications, and allowing state-owned enterprises to maintain a certain degree of incentive flexibility for senior talents.
3
Gross payroll management
Distribution of the Group's gross salary
The "Guidelines" require that the group company needs to classify and manage the total wages of enterprises at all levels according to the functional positioning of the subsidiaries and the development stage they are in, and determine the linkage indicators of the total wages by classification.
1. External benefit sub-enterprises: mainly select economic benefit indicators such as total profit/net profit, operating income, economic added value, and return on net assets as direct linkage indicators, and implement a mechanism of strong linkage between total wages and economic benefits.
2. Internal benefit subsidiary: the total profit/net profit, operating income and key task completion rate, management ability improvement and other indicators can be comprehensively selected as direct linkage indicators, and in principle, the increase in total wages shall not exceed the increase in total wages of the group company.
3. For supporting guaranteed enterprises and start-up enterprises: appropriately dilute the linkage of economic benefit indicators, reflect the orientation of strategic nurturing and support, and take non-economic quantitative indicators such as the completion rate of key tasks and the improvement of management ability as direct linkage indicators to keep the increase and decrease of total wages relatively stable.
It is worth noting that for mixed-ownership enterprises with non-absolute control by state-owned capital, the group company should reasonably authorize and delegate power to the total salary of the enterprise according to the actual control situation, give it a certain degree of autonomy, and adopt a more flexible and efficient salary management method.
Employee salary allocation
In addition to the overall distribution of total wages from the perspective of subsidiaries, there are also different tilts towards the wages of different employees.
1. It should be tilted towards subsidiaries with a relatively high concentration of technical and skilled talents, and the increase in total wages should be given priority to the increase in wages of technical and skilled talents.
2. In principle, the increase in the average salary of employees in the group headquarters should be lower than the average wage increase of all employees in the enterprise.
That is to say, if the average salary of employees at the headquarters is too high, it should be appropriately adjusted in light of the actual situation of the enterprise.
unscramble
Total wage management is the general outline of the management of the human compensation sector of state-owned enterprises, and doing a good job in total wage management will give state-owned enterprises a starting point and power source at the incentive level. With the deepening of the reform of state-owned enterprises, the management reform of total wages has also undergone a change from "one to one" to "classification and grading", highlighting the characteristics of industries and enterprises, and taking into account efficiency and fairness.
On the premise of meeting the requirements of total wage control, the internal salary management division of state-owned enterprises must be refined, how to implement it efficiently? In the article "Digital Empowerment of Human Resource Management of State-owned Enterprises - Taking the Application of Honghai Cloud HR System as an Example" shared on the official website of the Ministry of Human Resources and Social Security, the application case of empowering the salary distribution of state-owned enterprises through the introduction of digital tools such as Honghai eHR system was introduced. Intelligent management, to achieve the headquarters of the management and supervision of the labor cost of each unit, and timely exceed the standard early warning, so that the total salary is effectively controlled within the total amount of enterprise plan.
On the other hand, we should flexibly set up market-oriented salary standards for different formats, levels and sequences, build a differentiated salary distribution system that matches responsibilities and abilities, adapts to the type of enterprise, takes into account market competition, and is linked to business performance, and encourages subordinate units to establish and improve medium and long-term incentive mechanisms such as employee stock ownership, equity incentives, project dividends, post dividends, excess profit sharing, etc.; Salary incentives and salary distribution management of positions, and explore and improve the salary system of professional managers in enterprises.
4
performance management
Categorical performance appraisal
The "Guidelines" further clarify that according to the strategic positioning and development goals of the enterprise, combined with the characteristics of different functions and categories, the characteristics of enterprises, and the characteristics of positions, etc., the implementation of classified performance appraisal, highlighting different assessment priorities, reasonably setting the weight of assessment indicators, and determining differentiated assessment standards.
Assessment of the person in charge of the enterprise
The remuneration of the person in charge of the enterprise should be strongly linked to the performance appraisal target value, and the market double benchmarking of performance and remuneration should be carried out:
1. According to the characteristics of the different job responsibilities of the person in charge of the enterprise, the proportion of the salary structure of the person in charge of the enterprise is reasonably determined, and the performance salary generally accounts for more than 60% of the total salary.
2. Performance increases, salary increases, performance decreases, salary decreases. Its performance-based remuneration shall be determined based on the results of the performance appraisal. If the annual performance completion value is lower than that of the previous year, the remuneration shall generally be lower than that of the previous year;
unscramble
In recent years, the pace of reform of state-owned enterprises to establish a modern enterprise system has been accelerating, and the remuneration of managers of state-owned enterprises needs to truly reflect the "performance rises, salary rises, performance falls, salary falls", and how to effectively connect the salary incentive and assessment mechanism is also an important part of the deepening of the reform of the salary distribution mechanism of state-owned enterprises.
For example, a large central enterprise group uses the Honghaiyun HR system to combine organizational performance with the comprehensive assessment and evaluation of the enterprise leadership team and leaders, and the business performance assessment of the person in charge of the enterprise, and comprehensively evaluates the business results of relevant personnel during their tenure, which can be linked to the salary cashing management system. At the same time, it supports the dynamic correlation between the performance appraisal result data and the data of employee salary adjustments, bonus distribution and other modules, effectively implements the linkage between performance and salary, and realizes the linkage between the appraisal results and salary and post adjustment.
5
Remuneration mechanism design
Compensation structure design
Internal compensation mainly includes two modules, current salary and medium and long-term incentives.
1. Current salary: generally composed of post basic salary and performance salary
Basic salary of the post: generally based on the results of the evaluation of the position and ability, it is determined according to the level of economic and social development, the production and operation status of the enterprise, the salary strategy of the enterprise, the value of the post and the level of the position, and the market salary level.
Performance-based salary: a unit that mainly reflects the difference between the actual performance and contribution of employees, and is issued according to the results of individual performance appraisal of employees, which can take the form of performance commission, piecework salary, project bonus, year-end bonus, etc.
The Guidelines stipulate the weighting of performance-based remuneration accordingly:
1) The sequence of management and marketing positions generally accounts for more than 60%.
2) The proportion of technical and skilled positions is generally less than 50%.
3) Senior managers of financial enterprises generally account for more than 65%.
2. Medium and long-term incentives: including equity incentives, dividend incentives, etc.
unscramble
Performance-based pay is the focus of the design of the compensation mechanism. From the point of view of the law, the proportion of performance pay should be determined according to the characteristics of the position and the level of the position, the higher the general rank, the closer to the front end of the market, the lower the proportion of the basic salary of the post, the higher the proportion of performance pay; the lower the rank, the relatively stable nature of the work, the higher the proportion of the basic salary of the post, the smaller the proportion of performance pay. Performance-based pay can take the form of individual performance-based pay and team performance-based pay:
First, it is directly allocated to individuals: according to the unit value salary standard of the enterprise as a whole, the weighted value coefficient of the individual and the current performance appraisal coefficient directly determine the actual performance salary of the individual;
Second, the determination of secondary distribution: the first step is to determine the total amount of performance pay of each department, and the "Guidelines" list four approval methods for determining the total performance pay of the department, which is very instructive. In the second step, after the total amount of departmental performance pay is determined, the amount of individual performance pay distribution is determined according to the value of individual work and the results of performance evaluation.
The level of remuneration is determined
Enterprises need to select appropriate external enterprises as market benchmarking objects according to their own development strategies and stages, reasonably determine the salary benchmarking quantile, and determine the company's salary strategy.
1. Salary benchmarking strategy
So, how do state-owned enterprises choose the right target for benchmarking? It should be determined according to their own position in the industry's salary, and the "Guidelines" provide four strategies.
Of course, in addition to these four methods, state-owned enterprises can also choose other market salary benchmarking quantiles to reasonably determine the salary based on their own conditions.
2. Calculate the salary of the post
After obtaining market salary data, the Guidelines provide three methods to calculate job compensation: center trend analysis, discrete analysis, regression analysis, etc., which enterprises can choose by themselves.
unscramble
The determination of salary level is inseparable from benchmarking, but the benchmarking of talents in different positions has different factors. For example, for professionals who are difficult to obtain in R&D, technology, marketing, etc., the salary level of the industry, region or benchmarking enterprise should be comprehensively considered when benchmarking in the external market, while the general talents who do not have high professional requirements and are easy to obtain in the market can only benchmark the salary level of the market in the same region.
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