Talk about the enterprise's salary positioning the difference between high and low advantages and disadvantages

First of all: talk about why relatively high salary said enterprise, in fact the human cost is not the overall than those of enterprise high relative base salary?

The overall human cost about enterprise, most people will think of first salary, bonus, social security, the human cost explicit, but neglecting the recruitment, staff replacement cost, cost of training costs, and the personnel quality not beautiful result of low labor productivity in the "high cost rate". This is like buying a car, in addition to the naked car number plates, and total price of the insurance expenses, etc have cost, but also the most important long-term maintenance cost, and gasoline, parking, the use of cost. But most firms tend to focus on the "has cost" human (namely salary level), and to ignore the human "use cost" (the recruitment, staff replacement cost, training costs, including in order to make a staff to the basic requirements for post shall pay wrong operation, low efficiency of the price and related training input).

For example, the enterprise cost 2000 yuan for a "cheap" sales representative, but to pay for other costs to make the sales representatives to qualify or excellent level and share the cost down overall cost 4000 yuan may be higher than for a "expensive" sales representative for the cost. The learning and growth needs to pay the price, or the cost of higher pay cost is to show, or is the extra training to reduce the learning or labor productivity, the cost of wrong operation, in short, no matter any enterprise, and its overall human cost shall follow similar "of the law of conservation of energy" some rules-don't just disappear or produce cost, but turn into another kind of form.

Therefore, if the enterprise is able to all human cost statistics caliber, you'll find that looks low labor cost actually not low; And the industry's leading multinational company, although personnel salary is high, but in fact the human cost rate is not high, even more than many local counterparts low. But the industry's leading multinational companies do not fully rely on high salary to attract talent, and they are the most worth of local business place of study, is their extreme pay great attention to the talents cultivating through a set of powerful mechanism of talents training, systematic and comprehensive study of new employees training, let just graduated college students in a year or more short time grow up for outstanding talents, and at the same time, higher than the average level of the offer of compensation, the high investment yield talent strategy, its market position to the consolidation of ascension and rose to vital role.

This paper conception is to clarify the human cost is misreading and not preach the role of high pay, and at the same time, also want to cause the attention of local enterprises, this is the line we want to express views.

Next: talk about high pay what location advantages and disadvantages?

Enterprise take high salary localization strategy, there are two major advantages, first is relatively can attract more talents, followed by the stability of employees will be high, but high salary orientation strategy also have obvious defects; First is the enterprise pay cost is higher, when the enterprise the management performance decline, the inevitable will first take layoffs or a pay cut way to control costs, but layoffs or a pay cut is likely to backfire-want to eliminate employees stay down, and want to keep employees but departure; The second, a high salary is positioning, this part of the costs must reflect the enterprise the product price, it will affect the enterprise market share. So, keep an eye out for would be found that average salaries in the industry leading level in the enterprise, if not monopoly industry, so the enterprise products are largely the high-grade brand in the industry, because a premium brand will often be able to have more premium, can solve that part of the higher pay cost.

In addition to a few industry leading enterprises can bear absolute full high salary positioning, most enterprise cannot take this strategy, but this does not mean to deny high salary strategy to find a reason, but rather to take a more scientific mixed compensation strategy: to core position to take high salary positioning, for non-core post take moderate or above the average salary positioning, strong position to alternative, take medium low salary positioning. That makes it more scientific and more economic.

Salary level just affect the enterprise personnel attractive necessary condition and not sufficient conditions, to improve the staff's average quality and skill, and to attract more outstanding talents to join in, only high salary positioning is far from enough.

Again: talk about low pay what location advantages and disadvantages.

Enterprise take low salary localization strategy, the only advantage is its human cost is low, relative to the human cost is more flexible. However, low salary orientation strategy has not satisfy the current mainstream trend, because the current China's economy is transformation, depend on low labor costs to cost advantage model of development has come to an end.

Low salary positioning has many shortcomings, first is difficult to attract talents; Second, because pay is low, the staff of the enterprise loyalty and satisfaction is low, and the production of products, the quality of service provided by nor may be high; Third, the promotion enterprise's overall competitiveness against.

In addition, if want to in the human cost statistics caliber words, take low pay cost of enterprise strategy, actually happened is not low labor costs overall, so, even if is the enterprise wants to take the low salary localization strategy, also can't in all the sequence of the low strategy, but according to sequence and the importance of job position, targeted Settings, take mixed strategy.

Finally: tell me about why the average wage rise in China enterprise that is good news?

Whether made in China or Chinese create, is inseparable from the excellent labor and core talents, can say talent is the root of the enterprise development. From the historical development rule look, the current Chinese business circles, similar to the 90 s South Korea and Japan in the 70 s, have the experience of average wage labor from low to high this development process. And now China, just from the low labor in average wage labor to high average wage of phase change, labor intensive industry also has started to lag behind the Midwest, and the area to Vietnam, the Philippines and less developed countries transfer.

No matter whether is the enterprise would like to, must face rising labor costs, excellent industrial workers scarce reality, the speaking of the enterprise, is more of a challenge than it is a chance-was forced to higher content of technology of industry transformation of opportunities. We all know, the foreign trade type, OEM enterprises vulnerable to exchange rate and international economic situation, the influence of never which country can rely on trade industry or processing industry can power, has to depend on the precise manufacturing, high-tech industry to achieve the rich countries to the work of the strong international status, and therefore, today's China labor average wage rise, is actually persecution from the development of enterprises have to past model, thereby to industrial upgrade, to high added value, high technology content industry to move forward.

Any a big social change, the driving force is often not the endogenous factor from, but from an exogenous factors; China enterprise industry upgrade, since can't rely on entrepreneurs to realize the introspection, can only rely on the labor of average wage rise to achieve.