The Practical Guide to Total Wages in State-owned Enterprises has been collected

-01-

"Correction" of the total wage base

The total wage management of state-owned enterprises generally includes four verification methods: the quota method, the target responsibility method, the performance increment method, and the performance accounting method, and the performance increment method is the most commonly used method in state-owned enterprises, and its core variables are the total wage base and the increase or decrease of the total salary. Among them, most enterprises approve the total wage base based on the "historical" base, that is, it is determined according to the average actual salary paid in the past three years or the actual salary paid in the previous year. In practice, the "historical" total salary of many enterprises is unreasonable, resulting in problems in the "initial base" or "rolling base" of the corresponding approved total salary, such as unfair remuneration among subsidiaries within the group, low remuneration affecting salary competitiveness, and excessive remuneration lowering operating efficiency, etc., so it is necessary to "correct" the base. This article will put forward some practical practices around the "correction" of the cardinality.

First, the initial base number of approval gradually "corrected"

In order to ensure the continuous and reasonable rolling of total wages, the initial base should be determined by separating the "unreasonable" part, flexibly adjusting, gradually digesting, and returning to "reasonable".

1. Acknowledging a reasonable "history" through historical value analysis

Wages are rigid, and from the perspective of policy guidance and customary practice, the initial base of total wages is mainly determined by the average of the actual wages of the past three years and the actual number of wages of the previous year, whichever is higher. In practice, it is necessary to analyze the changes in total wages, per capita wages, performance scale, labor productivity rate, etc., as well as their matching relationship with performance changes in the past three years. At the same time, it is also necessary to analyze the impact of external policies, market environment, business scope, management reform and other factors on total wages and performance, grasp the business characteristics of the enterprise and the total salary and performance under normal conditions, and clarify the abnormal impact of special factors in the "history" on the total salary, such as changes in business scope, increase and decrease of institutions and personnel, salary management reform, etc.

2. Analyze the total salary gap through salary market benchmarking

Whether wages are reasonable needs to be benchmarked against the market, including overall compensation effectiveness and per capita salary level. Through the comparison of salary performance, the matching between total salary and performance is mainly analyzed, including labor cost profit margin, wage profit margin, wage revenue rate and other indicators. The per capita salary level or the salary level of key positions is benchmarked, which mainly analyzes the market competitiveness and internal distribution structure of the existing salary level. Based on policy requirements, when the total wage base of state-owned enterprises is approved, the average wage of the target area should be applied, and the subsidiaries within the group should also deal with the same kind of subsidiaries within the group.

3. Through the comprehensive analysis of "history" and "market", determine the reasonable value

Based on the historical value of the enterprise and the results of market benchmarking, a reasonable range of the initial base of the total salary of the enterprise is reasonably set, which should not only compare the "history", control the increase and decrease of the salary of the enterprise, and ensure the relative stability of wages; It is also necessary to benchmark the "market", ensure a relatively reasonable per capita salary level, and take into account the market competitiveness of salary and high salary efficiency. Therefore, when determining the reasonable range of total wages, it is necessary to adopt the salary strategy of "performance benchmarking", benchmark the enterprises with similar "performance" status in the industry, region, the same nature and the subsidiaries within the group, and differentially set the base range of loss-making enterprises, incubation enterprises, industry leading enterprises, cost enterprises, etc. Due to the large operational risk of layoffs and downsizing in state-owned enterprises, in practice, the existing staffing is generally recognized, and the reasonable value range of total wages is mainly determined by setting a reasonable range of per capita remuneration.

4. Implement the initial base "correction" through the difference package mechanism

However, due to the rigid characteristics of wages and the restrictions of the "big plate" of the superior units, it is difficult to reduce or increase the initial base of total wages at one time, except for the simultaneous reduction of employees, institutional adjustment or a slight increase in the base. The "difference package" mechanism can help flexible digestion and gradual implementation, that is, the initial base of total wages is approved according to the above reasonable range, and the "exceeding" or "insufficient" part is set up as an independent "difference package", and a certain proportion of deduction is carried out every year with the increase or decrease of total wages during the transition period, and the transition is smooth until the reduction is completed; That is to say, enterprises with excessively high wages at present need to earn back the "difference package", and enterprises with excessively low wages will be protected to a certain extent when their wages are reduced, and gradually realize the "correction" of the base.

2. Dynamic "deviation correction" of rolling base

In the operation of total wage management, the annual total salary base is generally based on the total salary liquidation amount of the previous year and "increasing the number of people without increasing the capital, reducing the number of people without reducing the capital", but in practice, there may be some groups with too high wages, unreasonable personnel structure, too high per capita salary, too low human efficiency, etc., which need to be dynamically "corrected" with the withdrawal of personnel in the dynamic base verification.

1. Eliminate the part of "excessive salary" by "refund 1 to 1".

For employees whose wages are significantly higher than those of the same position or rank caused by "historical reasons", the "refund 1 and return 1" mechanism can be adopted to refund only the average salary of the rank or the average salary of the enterprise if one employee who resigns or retires from the "overpaid" can be adopted to gradually solve the "historical problem". Enterprises with excessively high per capita wages can also adopt this method and use it in conjunction with the "difference package" to gradually return the salary level to a reasonable value.

2. Improve labor productivity and salary efficiency through "refunding X to 1".

For enterprises with continuous losses and low labor productivity, they can adopt the "return X to 1" mechanism in which the resignation or retirement X individual only returns the per capita salary of the rank or the per capita wage of the enterprise according to one person, forcing the enterprise to reduce personnel, optimize the personnel structure, and improve the labor productivity rate, and "X" can be determined based on the specific situation of the enterprise.

3. Separate management of the total wage base of the dynamic correction of special groups

Special employee groups with low or no value creation, such as "internal retirement", "long-term sick leave" and "consultants", can be managed separately, and the corresponding total salary can be cancelled with the "withdrawal" of the personnel. Some non-standard employment can also be managed separately, and the total salary can be dynamically adjusted with the corresponding employment method after standardization.

-02-

"Marketization" of the total wage mechanism

In the fourth quarter of 2023, state-owned enterprises in some industries were unable to pay wages due to the total wage being stuck, while at the same time, salaries in some emerging industries and innovative technology positions were raised, which gradually reflected that "the real orientation of total wages is marketization". The marketization of total salary management is not only the "ability to rise and fall" salary, but also the "independent operation" of the business, that is, to promote enterprises to obtain market-oriented resources, expand market-oriented customers, and enhance independent market competitiveness through total salary.

Under the requirements of the current total wage management, "classified management and benefit decision" has laid the core foundation for promoting the market-oriented development of enterprises. This article shares some information based on consulting experience.

First, the benefit linkage will be "incremental", adjust the mode, and re-promote the "new" business development

The development of "new" business is the main path of "marketization" of state-owned enterprise business, and the new business is generally "fast-developing" and "fluctuating", so it is necessary to focus on grasping the "increment" when the benefit is linked, and adjust the linkage between wage input and benefit increment, so as to "incentive" and "guarantee" to promote the development of new business.

1. Incremental performance linkage part of the total salary - the total salary is cut, and the benefit increment is only linked to the "benefit wage"

Emerging business needs to balance the "guarantee" of business development and the "floating" of performance incentives, and the initial stage is generally approved by the "quota method", but after a certain scale, it is necessary to link the total salary to the "benefit increment", and before entering the mature and stable period, the method of "incremental performance linkage with part of the total salary" can be adopted, and on the basis of realizing the "rigid" guarantee, the key personnel are floated and motivated through the "creation and enjoyment" method to promote the development of "new business". Specifically, the total salary is divided into guaranteed wages, efficiency wages, and separate wages, and the corresponding proportion is determined according to the functional positioning, business type, and development stage of the new business.

Relatively speaking, enterprises in the mature and stable period generally adopt the total salary determination mechanism linked to full performance, that is, the change in performance affects the change of the overall total salary.

2. Partial rollover of incremental gross wages - the increase or decrease in total wages is only partially carried into the base of the next year

Emerging businesses tend to grow faster and fluctuate more, and it is more necessary to balance the "stability" and "transition incentives" of total wages to ensure the continuous and rapid development of new businesses. For new businesses that grow rapidly and show the stage of "economies of scale", only part of the "increase or decrease in total wages" can be entered into the base of the next year, for example, the total salary of the current year has increased by 10 million, but the base of the next year only increases by 5 million, that is, the "super-fast growth" of the new business can achieve the growth of total wages, and at the same time form a certain buffer for the decline of total wages.

Relatively speaking, enterprises operating in the mature and stable period generally adopt the full incremental base rolling mode, that is, the increase or decrease of the total salary of the previous year directly enters the base of the next year for rolling.

Second, the index design puts the "key", differential application, and tilts the market-oriented performance

Promoting the market-oriented development of business requires the traction and command of corresponding indicators, and the linkage indicators of efficiency and efficiency directly point to the key goals and guidance of total wage management. Setting up a "market-oriented" index in the total wage linkage mechanism can more effectively lead and promote the market-oriented operation of state-owned enterprises, and there can be a variety of settings and applications.

1. Differentiated design of "benefit linkage index" to reflect core business capabilities and goals

In practice, market-oriented enterprises generally directly link profit indicators, directly pointing to the ultimate operating efficiency. However, the focus of emerging business and innovation incubation business is more on the growth of market size, customer scale or the formation of leading products/services to achieve sustainable growth. When designing benefit linkage indicators, relevant indicators such as revenue scale, number of customers, and number of product users can be selected according to business characteristics and development strategies, so as to truly support the key objectives of new business and promote the development of new business. Judging from the overall orientation of total wage management in the past two years, the trend of strong linkage with profits has also weakened to a certain extent, and it is more inclined to innovation and other benefit indicators.

2. Set up the "file adjustment" index of benefit linkage, and the total salary is inclined to "market-oriented" business

Under the same benefit linkage index, we can add an adjustment index for the increase or decrease of total wages to increase and increase the incentive for "market-oriented" business. For example, you can set the adjustment indicators such as "proportion of competitive business", "proportion of innovative business", "dependence on superior resources", etc., and set the extraction ratio/linkage coefficient of the total salary increment based on the corresponding indicators, which will directly affect the increase or decrease of the total salary of the enterprise and encourage the external acquisition of a larger market. In the design of specific indicators, it is necessary to consider them in combination with benefit indicators.

3. Targeted design of key "adjustment" indicators to drive the "market-oriented" direction

The core of total wage management is "benefit decision, efficiency adjustment", the adjustment part is usually achieved through efficiency indicators, but it can also be adjusted through some key process/indirect market-oriented, innovative benefit indicators, such indicators generally have strong business characteristics, stage characteristics, such as the transformation index of scientific and technological achievements of science and technology enterprises, which does not affect the overall situation of total wages, but also plays a leading role.

Third, the separate management is "special", flexible and innovative, and meets the needs of "market-oriented" personality

Separate management provides a more independent and targeted flexible management space for the total wage management of state-owned enterprises in addition to the work-efficiency linkage mechanism. Under the framework permitted by the policy, the implementation of separate management of some special matters can meet the needs of more refined and differentiated market-oriented "special" salaries, promote market operation, and stimulate the innovation momentum of enterprises.

1. Reform the overall separate management of demonstration enterprises and special enterprises

At present, the "scientific reform", "double hundred", "create a world-class demonstration enterprise" and other reform pilot enterprises can implement the overall separate management. For state-owned enterprise groups, it is also possible to carry out a separate list of internal market-oriented pilot reform demonstration enterprises, fully market-oriented Internet enterprises, strategic emerging industries, etc., and manage "one enterprise and one policy" to achieve market-oriented total wage management.

2. Separate management of special talents, businesses, and matters

For special talents, special businesses and special matters that promote the market-oriented development of enterprise business, especially for scientific and technological innovation, transformation and upgrading, and special high-end talents, some of them can be listed separately to support the personalized and phased market-oriented development of enterprises, and at the same time help the local balance and overall adjustment of total wages within the group.

To request the full version of the manual compilation, please send a private message to note your own VX contact information. After seeing it, the editor replied as soon as possible to add.