——Improve the salary management system to attract and retain core talents
【Customer Industry】Dairy industry
Problem type: Payroll management
【Customer Background】
Bei'an (pseudonym) Dairy Technology Co., Ltd. is one of the subsidiaries of a large dairy group, located in a city in Heilongjiang Province, founded in 1988, is a research and development of large-scale dairy enterprises transformed from scientific and technological achievements, mainly producing high-quality formula milk powder, liquid milk and other dairy products. With the green original ecological pasture milk source, advanced equipment and technology, professional talent team, since its inception, the company's development is relatively stable, so far, the number of employees has been nearly 1,000 people, its carefully built "Bei'an" (pseudonym) has become a well-known Chinese famous brand dairy products.
In the past development process, the company has achieved rapid development by virtue of policy support and product advantages. However, with the rapid rise of homogeneous enterprises in recent years, the dairy company is facing increasing competitive pressure, and there are problems such as brain drain, recruitment difficulties, and low enthusiasm, and the company's development has been hindered. According to the internal investigation of the enterprise, there are major problems in terms of salary, which are mainly manifested in the fact that the salary level is lower than the market situation, which leads to employees changing jobs; and the salary structure design is unreasonable, the proportion of performance pay is too small, and the incentive effect is insufficient; and the salary adjustment mechanism is unreasonable, and the salary of department employees has not been increased for many years. In order to solve the above problems, the management of the dairy company decided to invite Huaheng Zhixin, a professional company engaged in human resources consulting, as a cooperative unit.
【Huaheng Zhixin Problem Analysis】
After receiving the invitation, the experts and teachers of Huaheng Zhixin immediately conducted an in-depth investigation on the actual situation of the dairy company, based on the company's development status, and found that the company mainly has the following problems:
First, the salary level is lower than the external market, resulting in the loss of talent
Today, the company is still using the same salary regulations and wage levels that were established many years ago, which were highly competitive in the market more than a decade ago, attracting a large number of talented people to join the dairy company. However, with the development of the market economy, today, the original salary level of the dairy company has been lower than the market average, employees have complained about low wages, work enthusiasm is reduced, which gives the competitor company "an opportunity", some of the core talents who have worked for many years have jumped ship, but also led to the dairy company's difficulty in recruiting new people, difficult to recruit people, hindering the further development of the enterprise.
Second, the salary structure design is unreasonable and lacks incentives
In the design of the original compensation system, in order to cater to the general pursuit of stability in the past, the dairy company's salary composition accounted for a large proportion of fixed salaries, while performance pay accounted for a small proportion. However, after a long time, everyone feels that doing more and doing less is almost the same, and they generally begin to lie flat, and the original salary system has not been reasonably adjusted, can no longer meet the needs of employees, and cannot play the due incentive role. Capable and high-performance employees receive wages that are not much different from those who "mess around" all day, which greatly reduces the enthusiasm of employees and leads to a decrease in their enthusiasm for work.
Third, there is a lack of salary adjustment mechanism, and some employees report that their wages have not changed for many years
When the expert teachers of Huaheng Zhixin interviewed the grassroots employees of the dairy company, many employees expressed that they had worked in the company for many years, but there was no obvious change in salary, and they felt that they had no development prospects in the company, and they wanted to change jobs or plan to choose the idea of "lying flat". After learning about the situation, the expert teachers conducted an in-depth investigation and found that the dairy company did lack a standardized salary adjustment mechanism, and only relied on salary adjustments after employees were promoted. However, because the number of leaders is limited and the opportunities for employees to be promoted are also very limited, there are some employees who have worked for many years and their ability level has been continuously improved, but because the position has not changed, the salary has not changed much, which affects the work enthusiasm of old employees.
【Huaheng Zhixin Solution】
After having a preliminary understanding of the existing problems in the salary management of dairy products, the experts and teachers of Huaheng Zhixin conducted many discussions and finally determined the following solutions:
1. Carry out external research and redesign salary standards in combination with actual responsibilities
In view of the fact that the original salary level of the dairy company was lower than the market average and the employees complained about the low salary, the experts and teachers of Huaheng Zhixin conducted a large number of market salary research to provide a reference for the salary redesign of the dairy company. Firstly, it is necessary to understand the salary level of employees in other related dairy companies and compare them with the average level of the industry; secondly, when designing salaries, the company's positioning should be clarified, including the company's size, nature, geographical location and development goals, etc., and then the salary of each position should be changed according to multiple influencing factors, so as to ensure that while attracting and retaining talents, it will reduce cost input for the company to the greatest extent.
In addition, the expert teachers of Huaheng Zhixin reminded that the survey results can only be used as a reference factor for salary adjustment, and in the specific implementation process, the work intensity, work pressure and ability level of the incumbents should be comprehensively considered to formulate the most suitable salary for themselves.
2. Optimize the existing salary structure and improve the incentive effect
In view of the fact that the salary composition of the dairy company accounts for a large proportion of fixed salary, while the proportion of performance salary is very small, and the incentive effect is insufficient, the expert teachers of Huaheng Zhixin suggested that the existing salary structure should be optimized and the proportion of performance pay should be appropriately increased, but not blindly raised. According to the characteristics of each position, different proportions of performance salary should be raised for different positions. For example, for production personnel, the proportion of performance pay can be appropriately increased, while for functional personnel, the proportion of performance pay should be relatively small, so as to ensure that employees can obtain relatively satisfactory income while improving the incentive effect of salary.
3. Establish a reasonable salary adjustment mechanism to improve the enthusiasm of employees
On the one hand, the expert teacher of Huaheng Zhixin suggested that the dairy company introduce broadband salary, expand the salary floating range corresponding to each salary level, and cancel the obvious grade difference between the workplaces brought by the original narrow salary level, so as to solve the original salary adjustment only relying on employees after promotion, some employees have worked for many years, and their ability level has been continuously improved, but because the position has not changed, the salary has not changed much, and the enthusiasm of employees has been improved.
On the other hand, the company can appropriately broaden the channels for salary adjustment, and include employees' performance progress, honors, and certificates as reference factors for salary improvement. By opening salary adjustment channels, we can solve the dilemma of employees who only rely on job promotions and salary increases in the past.
【Huaheng Zhixin Summary Thoughts】
As one of the important modules of human resources, compensation management can improve the attractiveness of the organization in the competitive talent market through a reasonable salary level, attract high-quality employees to join the organization, and provide strong talent support for the long-term development of the organization. It can also help the organization reasonably control the compensation cost, ensure that the organization pays the salary within a reasonable range, avoid the burden of excessive compensation expenses on the organization's financial situation, and promote the realization of the organization's business goals.
Huaheng Zhixin has helped customers to improve the salary management system and solve their problems in salary management for many times. Combined with years of experience, the expert teachers of Huaheng Zhixin believe that the company generally has problems such as unreasonable salary design, insufficient incentive effect, lack of salary adjustment mechanism, etc., and has designed a variety of salary management tools including the three-salary-oriented wage system, and put forward constructive suggestions for the customer company, which has been highly praised.
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