Broadband compensation (wideband compensation structure system): According to the definition of the American Society of Payroll Management, it means recombining multiple compensation levels and their narrow compensation floating ranges in the organization to form a smaller salary level, but each compensation level a new type of compensation system with a wide range of floating range. The ratio of the range change between the highest and lowest values ​​of each salary level must reach more than 100%.

Typical broadband compensation generally does not exceed 4 levels of salary levels, and the interval change ratio between the highest and lowest values ​​of each level may reach 200%-300%; while the traditional salary structure usually exceeds 20 levels, each of which The interval change ratio of the grade is often only 40%-50%.

The biggest feature of broadband compensation is to reduce the salary level and expand the floating range. Employees are mostly in a broadband salary in their careers, can flow horizontally, focus on performance, and can get high rewards even in lower-level positions.

Broadband compensation began in the late 1980s to early 1990s. After the US economy began to decline in 1987 and officially entered a recession in 1990, a new salary structure design method was born as a combination of new management strategies such as flattening corporate organizations, process reengineering, team-oriented, and ability-oriented. By compressing the levels, expanding the corresponding salary range of each level, forming a new salary management system and operation process to adapt to the new competitive environment and business development needs. [For example, IBM had a total of 24 salary levels before the 1990s, and was later merged into 10 levels with a larger range].

In a broadband compensation system, the role of employees in the enterprise is determined by performance and skills, not by positions. Employees have outstanding performance and can receive a higher level of compensation, bypassing the position level and prove their own value. For example, skilled technical workers may contribute no less to the company than workshop directors, and the role of top salespersons may be more important than that of sales directors. The system believes that employee compensation levels depend more on work performance, responsibilities and skills.

In broadband compensation design, the most basic elements are market competitiveness and internal fairness:

Market competitiveness: When designing salary management, you need to consider the industry market, overall labor market and national economic development status. Usually, you can learn about the salary payment level of the company in the market by participating in market compensation surveys.

Internal fairness: When designing salary management, we must consider whether the company's internal level system is reasonable and fair. Usually, a reasonable and feasible level system is designed through job analysis and job evaluation. The most popular job evaluation methods now include three and four-factor methods. The number of positions in each position is calculated through job evaluation and the size of the job is compared. The natural level formed based on the job evaluation results is the basis for designing the enterprise level. The formation of the enterprise level may be the result of natural level mergers. Multi-level natural level mergers form a broadband compensation level. The situation of different merger levels of different enterprises is determined by factors such as the type of the enterprise, job characteristics, job distribution status and quantity.

The following conditions are required to implement the broadband compensation system:

Active participation management style: Managers of each department need to be mature enough in human resources management to make key decisions with the human resources department. Under the broadband compensation system, department managers have more room to participate in the compensation decisions of subordinates. If the management team is immature, department managers may not objectively evaluate employees and do not pay attention to employee development, which makes it difficult for the system to play a role.

Work performance is an important determinant of compensation: If an enterprise does not pay attention to employee work performance, it will have a "big pot meal" phenomenon and broadband salary will lose its meaning. Under the broadband compensation system, employee compensation fluctuates with work performance, and a fair and transparent performance evaluation procedure is essential. According to Porter and Lawler's comprehensive incentive theory, procedural fairness can stimulate employees' enthusiasm and creativity more than result fairness, and broadband compensation should emphasize procedural fairness and transparency, so that employees can understand the scoring rules and achieve a win-win situation for employees and enterprises.

Focus on communication: The introduction of a broadband compensation system requires timely and comprehensive communication between management and employees, allowing employees to understand the determinants of corporate remuneration and development strategies, and motivate employees to pay attention to the consistency between individuals and enterprises and see their own future in the enterprise.

Establish a team of high-quality salary management personnel: The implementation of the broadband salary system requires the compensation management personnel of the Human Resources Department to work closely with various departments and serve the department with the role of professional consultants. Enterprises need to consider the overall strategy, corporate culture, management team quality, human resources specialization and other aspects in order to give full play to the advantages of the broadband compensation system.

The broadband salary management model has high basic requirements for enterprise management, especially in human resources management, and the following basic work needs to be done:

Do a good job in market compensation survey: Broadband compensation requires companies to pay attention to internal and external compensation conditions and achieve external fairness. The survey content includes salary levels in this industry and region, salary structure, payment time, form and scope, other non-monetary remuneration, etc.

Prepare a job responsibility statement: Job responsibilities refer to the position and responsibilities of the position, and the size of the responsibility determines the level of the position. Enterprises should determine the human resource management model based on the development strategy, determine job positions and describe job responsibilities, and prepare job responsibilities instructions as the basis for evaluating employee performance.

Formulate a scientific performance evaluation system: broadband salary is essentially performance salary, and performance level determines employee salary level. Employee performance needs to be measured by a series of indicators, such as work attitude, educational background, technical level, innovation ability, etc. Improper performance evaluation will dampen the enthusiasm of outstanding employees and violate the principle of salary design. Therefore, there must be a supporting performance evaluation system for broadband salary implementation.

Determine the corporate human resources strategy: By establishing a human resources strategy, enterprises transform corporate strategies, core competitive advantages and core values ​​into measurable action plans and indicators, and use the incentive compensation system to strengthen employee performance behavior and promote the realization of corporate strategic goals. Then, based on human resources strategy, external legal environment and industry competitive situation, we will determine salary strategies and principles, as well as salary plan design, distribution, communication and coordination with performance. [For example, the salary policies of many high-tech enterprises attach importance to the value of human capital and tilt towards scientific research talents and senior management talents].

Formulate a salary strategy: The salary strategy needs to be related to the company's business strategy, and different business strategies correspond to different salary strategies and plans. > Table 1: Compensation systems for different business strategies

Identify core stakeholders: The change in the compensation system involves the reallocation of employee interests. When establishing a broadband compensation system, you need to analyze and understand the company's core stakeholders.

Choose the applicable position or hierarchy series: the hierarchical salary model is suitable for the traditional "tower" organizational structure, and broadband salary is suitable for the flat organizational structure. Enterprises can also choose according to the nature of the work. If work requires strong collaboration and team spirit, it is more suitable to adopt the broadband compensation model.

Establish and improve the salary system:

Determine the floating range of salary in broadband: Determine the floating range of each "bandwidth" based on objective salary survey data and internal job evaluation results, set the minimum and maximum salary benefits, and determine the corresponding salary for different job performance based on market salary levels and job evaluation. .

Horizontal position rotation in broadband: There are salary differences in different departments in the same salary belt. Employees may not promote their positions and increase their salary through job conversion. The same salary is encouraged to bring cross-departmental mobility of employees in different functional departments, enhance employees' adaptability to the organization, improve comprehensive quality, increase horizontal mobility opportunities, and enhance organizational applicability.

Do a good job in qualifications and salary rating: Under the broadband salary structure, managers can increase their freedom to decide employees' salary, which may lead to an increase in salary costs. Enterprise human resources management personnel need to control labor costs, build a qualification system, clarify wage rating standards and methods, encourage employees to obtain high salaries, limit the increase in salary of mediocre employees, improve the performance appraisal system, deduct salary for employees with poor performance, and create performance-based performance and a competency-oriented corporate culture atmosphere. > Figure 1: A broadband-based salary system design model, showing the ultimate realization of the strategy based on the corporate vision and mission, through corporate strategy, human resources strategy and other links, to job analysis, evaluation, salary survey, design, qualification management, etc. The process of goals, improving competitive advantages and promoting the healthy development of the organization.

Not available to all businesses:

Establish skills progress indicators and create learning organizations: Flat organizations require employees to master multi-field skills and achieve horizontal communication and collaboration. Enterprises should quantify employee skills progress indicators, establish a rotation mechanism, create a learning organization, encourage employees to actively learn and train, improve their knowledge level, master a variety of work skills, reduce the pressure of rotation, and ensure that the organization has multi-skilled employees.

Human resources costs have increased, and market research is difficult: each salary band covers many positions in the department, the workload of human resources management has increased, and it is difficult to determine the benchmark. Market compensation surveys need to be strengthened, resulting in an increase in human resources costs.

It should be introduced in stages:

Objective and fair evaluation of employee performance: the broadband salary level decreases, the change range increases, and high flexibility. Only when the performance standards are objective and accurate and the performance appraisal is objective and fair, will employees accept it, otherwise it will affect the fairness of salary and employee enthusiasm. Performance appraisal is the key to broadband compensation design. Only by establishing a fair and reasonable performance appraisal system can employees be motivated.

> Table 2: Evaluation of Necessity for Broadband Pay Management