What are the high pay positioning 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.