Retaining Talents by Improving Compensation System in Zhengtai Group.doc

retaining talents by improving compensation system in zhengtai group论 文 摘 要正太集团是一家主要从事建筑施工为主的企业。但在从2006年到2008年最近几年，人才流失率一直在上升，08年达到12.66。越来越多的员工选择离职。通过问卷调查的那些离职者和现有员工，我们发现，其中许多人抱怨工资分配制度不公平，没有长效激励机制，没有培训机会，没有带薪休假，对未来前途不明确等原因。通过研究总结，我们发现这些问题，归根结底是缺乏合理的企业薪酬制度，薪酬已不是单一的工资，也不是纯粹的经济性报酬。从对员工的激励角度上讲，可以将薪酬分为两类：一类是外在激励性因素，如基本工资、固定津贴、社会强制性福利、等工资部分；另一类是内在激励性因素，如员工的个人成长、挑战性工作、工作环境、培训等福利部分（摘自mba智库百科）。 因此，最好的解决办法就是改善我们的薪酬制度。管理和技术是企业前进的轮子，而薪酬则是企业的翅膀。这里强调了管理和技术的重要性，而且更加强调了薪酬的重要性。好的薪酬制度，能促使员工产生文化认同及强烈归属感，使企业士气高涨，为企业提高绩效，保留优秀员工及吸引外面的优秀人才起着很大的作用。通过咨询企业管理方面的专家和学者，综合评估公司的财力与经营状况，我们开始了改善薪酬制度项目。通过问卷调查，swot分析等研究方法，对于存在的问题的进行剖解和分析。从以下方面进行薪酬制度改革：1、改进薪酬分配与考核方案：实行年薪制； 2、发展员工持股计划；3、落实带薪休假；4、增加培训机会；5、改进医疗保障制度；6、成立员工俱乐部。经过后两年的规划和实施，改进工资分配考核制度及其它相关福利制度，工作环境得到改善，2010年再进行数据统计时，我们发现人才流动率明显下降，从12.66降低至4.75，而且在问卷调查中发现员工满意度也大大提高。局势得到控制。然而薪酬制度是一项复杂与全面的工程，更需要一个不断更新和改进的长期工程。关键词：建筑企业；人才流失；薪酬福利制度；建设；abstractzhengtai group is a corporation with the main industry of construction. however, in the recent years from 2006 to 2008, the rate of talent turn over has been rising. it reached to 12.66% in 2008. more and more employees choose to shift theirs job. by questionnaire to those who applied for resign and those on duty, we found that many of them were complaining the working environment not as expected, distribution system not equal, and the no training chances, no long term encouragement plan and the carrier future not clear, etc. by studying those problems we found the symptom in short is an unreasonable compensation system. what is compensation system, as defined by mba lib website: compensation is not a single wage, nor a pure economic reward. which includes two sections: 1. salary section: include basic salary, fixed allowances, etc.2. benefits section: includes staffs personal growth, challenging work, working conditions, training and other motivation sectors.so the best solution to our corporation is to improve the compensation system. management and technology are the forward wheels, and compensation system is the flying wings of the corporation. good compensation system could motivate employees to produce cultural identity and strong sense of belonging, to enable enterprises to morale, and play a big role for enterprises to improve performance, retain staff and attract the best talents outside. by consulting the experts and scholars we started the project of building welfare system. scientific research methods of survey, such as questionnaires, and swot analysis were used in the identification and analysis of the problems. then we start the project of rebuilding compensation system. from measures to design the post annual salary system, develop the employee share holding plan, improve the medical insurance system, add annual pay leave, increase training opportunity and set up the staff club etc. after two years planning and implementation of the new compensation system, the working environment got improved. the figures collected at end of 2010, which showed rate of talent turnover reduced from 12.66% to 4.75%, and from the questionnaire the staffs satisfaction also got increased. still the welfare system can not be built in one day, he continuous updating and improvement is needed for a long term. key words: construction company; talent turn over; compensation system; rebuilding;table of contentspages1. introduction .12 summary of the preliminary research22.1. problem .32.2. problem analysis.32.2.1 companys current situation.32.2.2 needs and wants analysis.42.2.3 swot analysis.53. project objective and hypothesis.63.1. project objective63.2. project hypothesis.74. project rationale.75. project design.85.1. planning activities.85.1.1 activities planned to take place.85.1.2 critical path of the planned activities.95.1.3 time-scale of activities.115.1.4 people involved and responsibilities.145.2. costing.145.3. risks analysis.155.4. management and control.156.project implementation.166.1. general introduction of time, placeof project implementation166.2. the working steps of implementation.166.3. monitoring177.project findings and discussion.177.1.results177.2.discussion.188. conclusion19bibliography.21appendix 1: questionnaire22appendix 2: the talent flow log.24appendix 3: zhengtai groups compensation system.255retaining talents by improving compensation system in zhengtai group1. introductionfounded in 1995, zhengtai group is a construction corporation in a county in jiangsu province. it was set up by the local construction management bureau. year by year it developed into a large corporation and its system remains unchanged for so many years. the author is the secretary to general manager. however, in the recent years, from 2006 to 2008, the turnover rate has been rising. the figures reached 12.66 percent in 2008. more and more employees chose to shift theirs job. people choosing to leave was a terrible thing for the development of the company, and it would sharply slow down everything which was good for the company. we had to do something. by questionnaire to those who applied for resignation and those on duties in jan 2009, we found that many of them were complaining the working environment not as expected, distribution system and evaluation mechanism not equal, and there is no training chances, no pay leaves and the no clear carrier future, etc. by studying those problems we found the symptom in short is an unreasonable compensation system. what is compensation system, as defined by on mba lib website: compensation is not a single wage, nor a pure economic reward. which includes two sections: 1. salary section: include basic salary, fixed allowances, etc. 2. benefits section: includes staffs personal growth, challenging work, working conditions, training and other motivation sectors, from .company struggled to retain talent because of the poor compensation system, and superficial understanding of the compensation system. decadent, negative business environment and inefficient compensation system is difficult to introduce excellent staff, moreover, affect on service employees performance. a discussion on a forum stated that values of management and technology are the forward wheels, and compensation system is the flying wings of the corporation. this emphasizes the importance of management and technology, and more emphasis on the importance of compensation system. good compensation system could motivate employees to produce cultural identity and strong sense of belonging, to enable enterprises to morale, and play a big role for enterprises to improve performance, retain staff and attract the best talents outside. by consulting the experts and scholars, and considering companys strategy financial status, we planed the project of building the compensation system. scientific research methods of survey, such as questionnaires, and swot analysis were used in the identification and analysis of the problems. then we started the project of rebuilding compensation system. from measures to rebuild the salary and distribution mechanism; develop the employee share holding plan; improve the medical insurance system; add annual pay leave; increase training opportunity; and to set up the staff club etc. after two years of planning and implementation of the new salary distribution and compensation system, the working environment got improved according to our questionnaire, automatically, the statistics showed the talents turn over came reduced and the situation got controlled. the turn over figures collected at the end of 2010 showed that the rate reduced from 12.66% to 4.75%. in the certain period the situation got controlled, and the project achieved success in the short term. still the good and healthy compensation system needs the continuous updating and improving.2. summary of the preliminary research2.1problemfrom 2006 to 2008, the talent turnover rate in our corporation has been rising. more and more employees choose to shift theirs job. 40 persons resigned in 2008, the rate of talent turnover reached 12.66%, far beyond the general index of business administration which below 6%. according to statistics about the resigned talents, many of them are project manager, technical director, cost engineer, civil engineers. these positions are the core of the construction industry, and these people are the backbone of the construction industry. its hard to imagine the loss of their flow on the company.competition among modern enterprises is ultimately the overall strength of the competition between talents.the talent flowing severely affected the development of the company. though, every year there has a talents introduction plan, most of new employees are green hands, only a few of them are highly experienced. the requirement and introduction are seriously unbalanced, which severely blocked the development of our corporation. 2.2problem analysis2.2.1companys current situationl physical statuszhengtai group is a construction company which was founded in 1995. currently, we have 19 inland branches and 4 overseas branches. with a certificate of grade super the top class in general housing grade one in municipal public works, decoration, mechanical and electrical installation, roads and bridges works, and steel structure; grade two in gardening and fire detection etc, and other professional engineering works as well. currently, we need a great number of talents to join our group to enhance our development. l financial statusthe company had undertaken 34 project over markets national wide in 2008. the contracted amount reached 2.4 billion yuan. though, the profit margin in construction area generally is low than other industry, the budget for talent introduction was far adequate. the company reserved a percentage of its yearly revenue for salary improvement. the budget for improvement of the compensation system in 2009 was rmb 3,500,000, including the authors market research, etc.l human resourcesthe company has total 316 registered management staff, not including those laborers working on site, those people currently outsource to those subcontractor we call labor team. 45 of the staff working in the head office, 271 people working over the branches. 4 people working in the human resources department, mr. wang is the department manager who in charge of marketing research, and recruitment. ms. sun is for the human resource file keeping. mr. zhang is for and salary management and ms. li is for the general office work.to cope with the rapid rising turnover rate, zhengtai group must take action to solve the problem of employees loyalty and stability, and the compensation system is the key for the problem. l pest analysisthe world financial crisis storm seems passed. many blocked-down construction projects seems re-started. so this is best time for contraction industry to re-booming. just this moment we need a great number of talents to join us to make up recession in the crisis for our groups development. 2.2.2needs and wants analysisa market research project looking for factors affecting turnover rate to the company must narrow the research problem through a needs analysis of the companys staff. the goal is to find out what sort of reasons would be considered crucial.first, a questionnaire was designed in january 2008 covering aspects that were thought to be included in a human resource survey. in order to have a clearer picture of the problem, questionnaires were organized between two groups of people as follows:1. collected from fire 15 of those who resigned, for there is a rule for every resigned people must fill the human resource survey form for company file use.2. distribute to 35 serving staffs at different level and positions at 5 jan 2008.in about two weeks, all 50 forms were returned to the front desk. they were sorted according to the subjects department and then analyzed. (see appendix i) questions1)currently, do you know your working scope, and do you master the working skill?2)whether your work is satisfied by your leader or colleague?3)do you think your talent has been maximized?4)do you satisfy with your current salary?5） do you satisfy with current distribution system6)besides salary, which do you think is important for you?a、training chance b、working environment c、harmonious human relationship d、sense of successe、annual pay leave f、medical aid g、staff entertainment life7)how do you think the current working environment?8)how do you judge of your current job, whether is idea job is suit for you?9)how do you observe your carrier future in our corporation?10)what do you think which sectors the corporation needs to be improved, or any opinion to the development of corporation?11) what do you think which sectors the corporation needs to be improved, or any opinion to the development of corporation?1st questionnaire resultthe result showed that 33 people complaining the distribution system and evaluation mechanism not equal; 15 people complaining there is no long term encouragement; 50 people complaining the training chance; 45 people complaining pay leave; 15 people complaining the medical aid; 9 people complaining poor team entertainment activities and 8 people felt no future; still a one or two resigned people felt theirs ability can not meet the requirement of the job, then they chose to leave. 2.2.3swot analysisbased on the results of situation analysis and needs analysis, i came up with the following swot profile: strengths：1. our company has a good reputation in construction industry; it is the biggest construction company locally. 2. company has a lot of projects on hand.3. the high level management team is a full of experience in construction area.4. the profits for the current on working projects are good.weaknesses1. first of all, the talent turn over rate currently is high. 2. the compensation system is to be improved.3. some of the employees work spirit is not high.opportunities1. the world youth olympic game 2012 will be held in jiangsu, which will bring a lot of projects;2. taizhou is expanding its city scope, and a lot of organizations need to be rebuilt;3. the space of the real estate development in second/third city line is still huge;threats1. with the development of taizhou, a lot of constructer from other place will pull into our city;2. the real estate developer with try to dig some talents with unusual high pay;3. the competition between companies from local and outside will be fierce.4. more talents could possibly choose to leave. suggestionszhengtai groups ultimate goal is to reduce the talent turn over rate, namely to control number of the staff resigning. to achieve this goal, the center needs to deal appropriately with all of its weaknesses as well as some threats. if the zhengtai group can make good use of its strengths (good reputation, good on hand projects and well experienced management team), grasp some golden opportunities (world youth olympic game 2012, taizhou is expanding its city scope, and the space of the real estate development in second/third city line is still huge), avoid the threats (a lot of constructer from other place will pull into our city, the real estate developer with try to dig some talents, and fierce competition), its talent turn over rate will definitely reduced.the immediate objective of this project is to retain the talent. market research project looking for factors affecting turnover rate seems to be a good start. based on the results of the needs analysis conducted among peoples who resigned and on duties, the project will focus on improving the employees salary and distribution section and beneficial section like the encouragement plan, which will focus on share holding plan, medical aid system, pay leave, training chances, and entertainment club etc. so the best solution is to improve our compensation system.3. project objective and hypothesis3.1. project objective：the goal of my project is improve our compensation system to reduce the turn over rate under 5%. practice shows that with a good compensation system, turnover rate is significantly lower than those who do not attach importance to shape system of salary welfare. when the compensation system meets the values of employees, when the compensation system fully emerged and would reflect a respect to employees, employees will be integrated with the business. staff will be proud of for their own business, and willing to contribute their own wisdom for the enterprise.3.2. project hypothesis compensation system is the key reason for the high rate of talent turn over. it is hypothesized that through our effort in improvement of the compensation system, we could reduce the talent turn over rate to below 5% within two years.4. project rationalefirst, why should we rebuild our compensation system? how important of compensation system is? we not only have prac