Strategic Initiatives for Enhancing Compensation Management  at Guangxi B Company

Rongyu Liang; Jirapong Ruanggoon

Authors

Rongyu Liang Faculty of Management Science, Dhonburi Rajabhat University
Jirapong Ruanggoon Faculty of Management Science, Dhonburi Rachabhat University

Keywords:

compensation management, compensation strategic initiative, human resource management

Abstract

The research objectives were: 1) to examine the current state of compensation management at Guangxi B Company, 2) to identify the gaps and defects in the compensation management practices at Guangxi B Company, and 3) to propose strategies for enhancing the compensation management at Guangxi B Company. This research employed convergent parallel mixed methods approach. Quantitative data were collected through a questionnaire distributed to all 367 employees, with 350 valid responses. Qualitative data were gathered through interviews with employees, middle managers, and senior management, totaling 13 participants, selected using purposive sampling. The quantitative data were analyzed by using descriptive statistics, while the qualitative data were analyzed through thematic analysis. The results from both methods were synthesized to provide a comprehensive understanding of the compensation system and effectively address the research objectives.

The research findings revealed that: 1) the compensation management system at Guangxi B Company showed moderate transparency and clarity, with average competitiveness in salary structures. Employee satisfaction was moderate, with concerns about fairness and alignment with market standards, particularly regarding bonus schemes and performance evaluations; 2) significant gaps included perceived pay disparities, low overall satisfaction with compensation packages, and a lack of transparency in compensation policies. Employees felt under-compensated relative to their responsibilities, and the unclear connection between performance and rewards led to feelings of inequity and demotivation; 3) enhancing compensation management involved establishing clear salary structures, simplifying bonus schemes, and implementing objective performance evaluations. Regular communication, market benchmarking, and creating feedback mechanisms were also essential for fostering transparency, fairness, and employee engagement, ultimately aligning compensation practices with employee expectations and industry standards.

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