Salary adjustment includes three aspects: salary level adjustment, salary structure adjustment and salary composition adjustment.
1. Salary level adjustment
Salary level adjustment refers to the process of adjusting the salary level while the salary structure, salary composition, etc. remain unchanged. Salary level adjustment includes three aspects: overall salary adjustment, partial salary adjustment and individual salary adjustment.
(1) Overall adjustment of salary
The overall adjustment of salary refers to the company’s changes in macro factors such as national policies and price levels, industry and regional competition, changes in corporate development strategies, and company changes. Adjustments are made to the company's personnel in all positions based on the overall performance and changes in employee service and company seniority.
The overall adjustment of salary means an overall increase or decrease in the salary level of all positions and holders. The adjustment methods generally include the following:
1. Equal proportion adjustment
< p>Equal proportion adjustment means that all employees will increase or decrease by the same percentage based on their original salary. The equal proportion adjustment makes the adjustments for employees with high wages larger than those with low wages. From the perspective of incentive effect, this adjustment method can produce the same incentive effect for everyone.2. Equal-amount adjustment
Equal-amount adjustment means that employees will be adjusted in equal amounts regardless of their original salary.
3. Comprehensive adjustment
Comprehensive adjustment takes into account the advantages of equal-proportion adjustment and equal-money adjustment. Positions at the same grade have the same adjustment amplitude, while positions at different grades have different adjustment amplitudes. Generally speaking, Under the situation, the adjustment amplitude for higher vocational and other positions is larger, while the adjustment amplitude for lower vocational and other positions is smaller.
In salary management practice, the overall adjustment of salary is achieved by adjusting wages or allowances and subsidy items.
If the salary is increased due to factors such as rising prices, an equal amount adjustment should be adopted, generally by increasing the amount of allowances and subsidy items; if the adjustment is due to external competitiveness and company efficiency, an equal proportion adjustment should be adopted The method or the comprehensive adjustment method is generally achieved by adjusting the position salary; if the adjustment is due to the factor of seniority (service length), an equal amount adjustment is generally adopted to adjust the salary or allowance based on seniority (service length).
As for the adjustment of position wages, the salary of each employee's position is generally adjusted to a fixed level, and the adjustment form is determined by the form of the salary grade table. Generally speaking, the salary adjustment for employees at different levels generally conforms to the principle of equal proportion, and the salary adjustment for employees at the same level generally conforms to the principle of equal proportion or the principle of equal amounts.
(2) Partial adjustment of salary
Partial adjustment of salary refers to periodic or irregular salary adjustment based on the company's development strategy, company efficiency, department and individual performance, changes in human resources market prices, and year-end performance. Assessment situation, and adjustments to employees holding a certain type of position can be made to employees in a certain department, employees in a certain position sequence, or employees who meet certain conditions.
At the end of the year, the human resources department proposes a position salary adjustment plan based on the company's efficiency, price index, and department and individual performance appraisals, which is implemented after discussion by the company. Under normal circumstances, the results of individual performance appraisals become the main influencing factor for employee position salary adjustments. Employees with outstanding performance appraisal results at the end of the year will be rewarded with salary promotion incentives; employees with unqualified performance appraisal results at the end of the year will be demoted in salary.
Based on changes in human resources market prices, the salary level of employees in a certain position sequence can be adjusted. Salary adjustment can be achieved by adjusting job wages, or by increasing bonuses, allowances, and subsidy items.
Based on the company's development strategy and company performance, the salary level of employees in a certain department can be adjusted. Salary adjustments are generally not realized by adjusting job wages, because that can easily cause a sense of unfairness within other departments. Generally, they are realized by increasing bonuses, allowances, and subsidy items.
(3) Personal adjustment of salary
Personal adjustment of salary is an adjustment to the salary level of the position due to personal position changes, performance appraisals or outstanding contributions to the company.
After an employee changes his position or is officially appointed after the probationary period, his salary grade must be determined according to the new position; according to the performance management system, those with excellent performance appraisals can be promoted to a salary grade, and those who fail the performance appraisal can have their salary grade reduced. ; Those who have made outstanding contributions to the company can be given promotion rewards.
2. Adjustment of salary structure
During the operation of the salary system, as the company's development strategy changes, the organizational structure should be adjusted along with the strategic changes, especially when the organizational structure is flat. Under the trend of globalization, the number of job grades in a company will be greatly reduced; on the other hand, due to the impact of changes in supply and demand in the labor market, the salary gap between different levels and positions in the company may change, which will put forward requirements for the adjustment of the salary structure.
Under normal circumstances, by adjusting the salary base level of each position, the salary gap adjustment requirements for different positions and different levels can be achieved; but when the changes are large, the existing salary structure cannot adapt to the changed development requirements. , it is necessary to re-adjust and design the company's salary structure. The adjustment design of the salary structure includes the design of the number of salary grades, the design of grade salary growth rate, the design of the number of salary grades, and the design of salary grade differences.
It should be pointed out that when designing the salary system, the trend and requirements of salary structure changes must be fully considered, so that the salary structure adjustment can be realized by adjusting the salary benchmark level of each position, which is simple to operate. ,convenient. Don't redesign your salary structure unless absolutely necessary.
3. Salary composition adjustment
Salary composition adjustment is to adjust the proportional relationship between fixed salary, performance salary, bonus and allowances and subsidies.
Generally, fixed salary and performance salary are adjusted based on the salary ratio of the position occupied. When an enterprise first begins performance appraisal, performance pay often accounts for a smaller proportion. As the performance appraisal work is implemented, performance pay can gradually increase the proportion.
The subsidy and subsidy items should also be adjusted according to the actual situation of the enterprise. When the reasons for the subsidy and subsidy no longer exist, the corresponding subsidy and subsidy items should be cancelled.
The bonus will be increased or decreased based on the company's performance and the market price of human resources.
Edit the indicators that need to be measured in this paragraph
1. The original total salary and the salary and benefit level of each employee.
2. The proportion of the original total salary to the company's sales revenue, and the proportion of the original total salary to the company's total costs.
3. The salary level of each employee calculated according to the provisions of the salary adjustment plan.
4. The proportion of total salary calculated according to the adjustment plan to the company's sales revenue, the proportion of total salary to the total cost of the company, etc.
Principles for editing this paragraph
1. Principles of fairness, fairness and competition
2. Principles of simple legality
3. Performance and incentives Combined
4. Principle of linking income with company performance
Edit this paragraph: Why salary adjustment is necessary
If salary management remains unchanged, it will inevitably lead to static salary management. The management of compensation is disconnected from performance management, market changes, price index changes and changes in corporate profitability. Ultimately, corporate compensation is ineffective in attracting, retaining, and motivating employees.
First of all, whether an employee's performance is good or poor, and whether his contribution to the company is large or small, should be directly reflected in his salary. You cannot "do more and less", as this will seriously affect employees' work enthusiasm.
Secondly, with the deepening of market competition, the market competition for talents has become increasingly fierce. Only when an enterprise's salary is sufficiently competitive in the market can it retain existing talents and be attractive enough to attract outside talents to join.
Furthermore, when the price index rises, the purchasing power of the original salary level decreases. If no adjustment is made, it is actually equivalent to reducing the income level of employees. If things go on like this, employees will definitely find another way out.
Finally, when a company performs well in terms of profitability, employees can maintain high morale by sharing the company's operating results with everyone through salary adjustments. When the company is not very profitable, it can also convey the current situation of the company's poor profits to every employee through salary adjustment, thereby stimulating the employees' fighting spirit, working together with one heart and one mind, and only then can the company turn around. .
In other words, activating the salary does not mean to increase the salary, but to use a dynamic management to adapt it to all aspects of corporate management to achieve the best input and output. By adjusting salary and activating salary, not only can we fully build the external competitiveness of corporate salary and effectively attract and retain talents; we can also fully realize the internal fairness and individual fairness of corporate salary and effectively motivate employees. In this day and age, corporate compensation management “dynamics” should become the norm.
Edit the experience curve effect in this paragraph
In the process of corporate management, salary adjustment is a very common phenomenon, but if the salary adjustment is improper, the effect will be counterproductive. The two key factors in the adjustment are the job experience curve and market salary changes.
The experience curve means that as time increases, a person’s familiarity with a certain position and a certain job will inevitably increase, and his experience and understanding of the job will also increase. Getting deeper and deeper, which will help him improve his working methods, improve work efficiency, and complete his job better and more rationally. But this kind of experience does not increase forever. As time goes by, the accumulation of experience will become slower and slower until it stops.
Generally speaking, the simpler and easier the work is, the faster the experience is accumulated, and this experience will soon reach its peak and will no longer continue to increase. But if the work itself is very difficult and requires a strong innovative spirit, then the accumulation of this experience will be very slow and long-term. A slight increase in this experience will greatly promote the substantial improvement of employees' abilities and work Improvement of efficiency. The general principle of salary increase is: the stronger the experience effect curve is for a job, the more the salary needs to be increased; for a simple job with a weak experience curve effect, the salary can be adjusted very little.
Determining the experience curve for each position within the company is mainly based on the results of job evaluation.
Job evaluation (job evaluation) focuses on solving the problem of internal fairness of salary. It has two purposes: first, to compare the relative importance of various positions within the enterprise and obtain the position grade sequence; second, to establish a unified system for salary surveys. Job evaluation standards eliminate differences in job difficulty within the company caused by different job titles or even if the job titles are the same but the actual work requirements and work content are different, so that different positions are comparable (the current popular salary point system is based on this foundation) to lay the foundation for ensuring wage fairness. It is a natural outcome of job analysis and is based on the job description. Therefore, when we do job evaluation, we must pay attention to the developmental experience of the personnel in each position, draw the experience curve of the position, and based on the strength of the experience curve effect, some stocks can rise beyond the market when the market rises. , when the market falls, it has better resilience. This is a reflection of the strength of the main force and the market's attention and trust in it. It is also called a strong stock, and its strength is an indicator that reflects this characteristic. Strength = (the stock rises or falls - the index rises or falls more>>
Refined into different levels, giving each level a reasonable score and weight, providing an accurate quantitative system for salary adjustment .
The specific function formula of the experience curve effect can be expressed as: experience salary = F (annual salary budget, job evaluation level, job experience requirement years, weight, working years)