Steel structure enterprises: use broadband salary with caution

Release time:


Modern management theory is being continuously innovated and introduced at an unprecedented speed. Under the social background with Chinese characteristics, with the help of the new thing of management consulting, it is gradually becoming mature in China.

1. Background of broadband salary design and application

Modern management theory is being continuously innovated and introduced at an unprecedented speed. Under the social background with Chinese characteristics, with the help of the new thing of management consulting, it is gradually becoming mature in China. The continuous application and verification of the latest management theory by Chinese enterprises has greatly improved the management level of Chinese enterprises, and also It has brought considerable hidden dangers to some enterprises. The broadband salary of steel structure enterprises (including shipbuilding and machinery manufacturing enterprises, the same below) may be one of the time bombs.

The reasons for the status quo exist at least in:

1) The ability to identify, digest and improve the steel structure enterprise itself; the management foundation of the steel structure enterprise itself is relatively weak, the understanding of management change and its design lacks the ability to judge, and it is impossible to predict the possible problems more reliably; once Embrace new management methods and lack the ability to continuously improve as problems arise.

2) Lack of reference practice; Because of reason 1), Chinese enterprises attach great importance to the consulting practice background of consulting institutions in the same industry, but whether it is a consulting giant with international background and extensive domestic experience, or a local consulting company who claims to be a domestic practice Neither the institution nor the academic school known for its academic strengths can guarantee the success of the consultation.

3) The vision, ability and sense of responsibility of consulting institutions/consultants; larger consulting institutions often cannot feel it because of their huge brand appeal, mature database or knowledge accumulation, strong financial strength and mature and smart consultants. Pressure from customer experience and market share. It is possible to make a high-level model plan by following the old ways, and it can take advantage of the information asymmetry between the consulting agency and the client to pass the customer's inspection smoothly, thus accelerating the rapid development of consultants/institutions with project promotion as the main incentive method. Sloppy design; while smaller companies tend to focus on customer experience, do not have enough research and development capabilities, knowledge accumulation, and most importantly, cannot avoid impetuous research, short-sighted and superficial design.

2. How to design and apply broadband compensation

With its good pertinence, the broadband salary theory is suitable for a considerable number of situations in China with narrow career promotion channels and irregular or absent career path ladders. Based on the practice of enterprises, this paper expounds the concept, characteristics, advantages and disadvantages of broadband compensation in detail and practically from two levels of theory and practice, and hopes to introduce some ideas. The so-called "broadband salary design" means that the company compresses the original 20, 30, or even 40 or 50 salary grades into several grades, but widens the salary fluctuation range corresponding to each salary grade, thereby forming a new type of salary. Management systems and operating procedures. We believe that broadband salary is more suitable for R&D and design personnel of steel structure enterprises, but not necessarily applicable to other functional personnel. The application of broadband salary in steel structure enterprises should also be linked with the construction of career development channels for enterprise employees to overcome broadband The inherent drawbacks of salary. In the traditional Chinese salary system, it has become an unwritten rule to determine the position and salary. If you want to break through the original salary level, you can only upgrade, and this brings a direct disadvantage of being in a fixed position. On the other hand, no matter how well an employee does, it is impossible to get a large salary increase, and the only reward is a subsidy in the form of a bonus. After joining the WTO, the competition for talent has become the fiercest competition, and an important bargaining chip for talent competition is salary. What should we do? After adopting the broadband salary design, many enterprises have found that the broadband salary system can maximize the mobilization of employees' work. positivity. This remuneration system roughly categorizes multiple positions with different remunerations. The remuneration for each category is the same, which increases the number of categories of personnel with the same salary level. Some subordinates can even enjoy the same salary treatment as the supervisor, and the salary fluctuation range increases. Industry insiders believe that this salary model breaks through the connection between administrative positions and salary, is conducive to the improvement of career development management, establishes a collective cohesion, and adapts to the objective reality of the reduction of promotion opportunities caused by the flattening of the organization. The essence of the so-called broadband compensation is to change from the original focus on position compensation to performance-based compensation. What kind of salary did you get in the original position, the salary changes with the change of position, and more emphasis is placed on the concept of the position; now, with broadband salary, more emphasis is placed on the concept of performance, the ranks are reduced, and many positions are classified as In the same rank, the bandwidth increases, and the salary of employees has a more flexible rate of increase and decrease. A direct consequence of this is that a capable salesman may earn more than a marketing manager, and an ordinary technician's salary may make a senior engineer speechless. Transforming traditions: Don’t be promoted, but do your due diligence In the traditional compensation system, compensation is often matched with a person’s administrative status or administrative rank in an organization, that is, the higher a person’s position in an organization, the The more wages, benefits and even bonuses he can get, if the employee is unfortunately always in a low-level position, then it is impossible for him to get too high salary income in his lifetime, no matter what he does in his own position. How brilliant. Under the incentive of this salary system, employees are motivated to spare no effort to "climb up", no matter whether the position he eventually climbs up is really suitable for him. At the same time, companies also wishful thinking that employees who do well in lower-level positions will inevitably do well in higher-level positions, so promotion has become the most important part of many companies for outstanding employees. of incentives. Management scientist Lawrence Peter, in his 1969 book "The Peter Principle", once warned that there is a common practice in business and various other organizations to promote an employee to a position for which he is not competent. general tendency. That is, once an employee has done a good job in a lower-level position, the company will promote him to a higher-level position, and the company will not stop treating an employee until the employee is promoted to a position that he is incapable of. Employee promotion. As a result, originally this person was down one position level, he may be a very good employee, but now he has to stay in a higher-level position that he is incapable of, and he has to stay in this position for a long time. consumed until retirement. This situation is undoubtedly not good for both the employees and the enterprise. The employees are not competent for their jobs, they cannot find the joy of work, and they cannot realize their own value. Depressed, and even some people will leave the company because of being promoted. For companies, when employees are inappropriately promoted to a position they are not qualified for, on the one hand they get a crappy new manager, on the other hand, they lose a person who is competent in a lower level. excellent employees in high-level positions, and therefore, companies are also victims of such inappropriate promotions. However, unfortunately, the traditional compensation system and the traditional promotion philosophy of rewarding outstanding employees make this situation common in our lives. Disadvantages: Difficulty in promotion, poor sense of stability, high performance requirements Any new thing is a double-edged sword. After seeing so many advantages of broadband salary, it naturally has its shortcomings. The possible drawbacks of broadband compensation are closely related to performance management. Since the evaluation of broadband compensation mainly comes from the performance of employees to the company, performance management has become an important aspect of company management. If performance management is not in place, the changes in positions will be particularly large. Under such circumstances, broadband compensation will be adopted, and employee wages will fluctuate. The ups and downs will cause a strong sense of instability in the psychology of employees, and thus lack a sense of belonging to the company. At the same time, if the performance management is not in place, the employee's salary will drop, and the employee thinks that he is working hard, it will make him have unhealthy emotions such as suspicion and doubt about the fairness, fairness and rationality of management, which is extremely likely to cause internal, Tensions in interpersonal relationships between superiors and subordinates and between colleagues, of course, this tension is not due to broadband compensation, but the consequences of performance management. The promotion of broadband salary design will make promotion a more difficult thing. For example, there are 9 ranks in a company, and it will be very difficult for an employee who was originally ranked in the sixth rank to be promoted to the seventh rank. In the traditional salary system, because there are many positions and ranks, it is easier for employees to go to a rank, but now the possible phenomenon is that employees may only move within one rank in their lifetime, and will not be promoted to another rank. Because the promotion of rank is a very strong incentive for employees, but after the adoption of broadband compensation, there will be only salary changes without promotion. Perhaps, this will be a frustrating thing for many employees. For domestic enterprises, the problem of incentive fading caused by too few promotion ladders can be solved through the construction of internal professional titles or job subdivision. The biggest difference between this approach and a job promotion is whether the promotion brings about a broadening of responsibilities or an increase in power.

copyright © 2022 Nantong Jinhong Steel Structure Engineering Co., Ltd.