英语论文网

There are various factors that influence companies’ salary setting and hence influence companies’ performance. Generally speaking those factors come from both inside and outside.

Internal factors that influence companies’ salary may include companies’ business nature, corporate culture, and the payment capability of the company as well as the performance of its employees. The more harmonious a company is, the higher the payment capability is and the better employees’ performances are, then the salary will relatively higher and more incentives will offer.

External factors consist the ideology, local living standard， national policies and laws as well as the human resource market. If the local living standard is high then the salary must be higher than those places where costs are relatively lower. Besides, if there are more supply that is to say more job hunters than need, then companies gain the upper hand and they can provide lower salaries.

Some times, companies need to consider the above influencing factors and adjust its salary mechanism to retain excellent employees and keep competitiveness.

3.4 Benefits of Effective Salary Management

It is quite evident to see salary is really essential in the performance of a company. Companies spend much time and money on salary management. In turn, effective salary management offers companies with many benefits.

Cowherd, D. M.; D. I. Levine (1992) suggest in their research that effective salary management will reward those outstanding people and encourage others to work harder to gain more interests. In daily management, companies can provide excellent employees with the priority of high-quality resources. Good and effective salary mechanism having the magic of urging the stronger to be better and encouraging those common employees to catch up with. Effective salary management helps companies attract key talents. An effective salary system must be competitive externally, be fair internally and be incentive for individuals. Therefore, companies should respect and follow the market discipline.

In addition, companies should provide employees with basic guarantee. In the relationship of employee and company, employees are inferior to the companies. So employees are more concerned about the benefits and interests companies can offer them including insurance, pension，timely payment. For executives and managers, they should pay attention to employees needs and assure them, in this way employees are more willing to do their best.

The other quite significant benefit of salary management is it links companies with employees. This aspect is well exemplified in the compensation for executives. Increasingly, companies are expanding the focus of executive compensation to support development of leaders as well as accomplishment of results. (Michael & Jerry, 2004) In designing the salary of executives, companies consider the dividends as well as share to 本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。