From economics, compensation is the sum of all labor remuneration obtained by laborers relying on labor. For employees and managers, the role of salary sometimes lies in the value of the incentive, in short, it is to mobilize people’s enthusiasm for work and give full play to their potential ability. From the perspective of the organization, the manager to motivate subordinates is to motivate and encourage subordinates to show proactive and conforming work behaviors toward the goals expected by the organization.
The higher the salary satisfaction of employees is, the more obvious the incentive function of salary will be, and the employees will work harder, and often get the affirmation and appreciation of enterprise leaders, so as to get a higher salary, thus forming a virtuous circle, and the enterprise may retain more excellent employees. On the contrary, a vicious circle can be formed, resulting in brain drain.
The working attitude of employees directly affects the effectiveness of production and operation, and the salary satisfaction of employees directly affects their work attitude. Salary incentive is to give full play to the ability of employees while guaranteeing their basic life, so as to improve the economic benefits and market competitiveness of enterprises. My father is the founder of the family business. He has encountered many times when employees have been confused about their salary or asked for a raise. His solution was to follow the principle of individual pay equity. When applying for a salary increase, individual employees need to evaluate their own qualifications, abilities, and contributions to the company. One of the basic principles of compensation is efficiency first, that is, employees are paid according to their positions and their contributions to the enterprise. To achieve personal equity, the first step is to place employees in the most suitable positions and create opportunities for their career development.