The Impact of Improving Employee Compensation Management System on Employee Satisfaction in Shandong University of Engineering and Vocational Technology

Citation

Liu, Gang. (2022). The impact of improving employee compensation management system on employee satisfaction in Shandong University of Engineering and Vocational Technology. (Master’s independent study). Bangkok: Siam University.

Abstract

The number of private education institutions are increasing every year as the competition in the private education industry has become increasingly fierce, and the treatment of faculty and staff in private colleges and universities is uneven. A private university in Shandong Province was selected as the research object. After analyzing the salary, salary structure, ratio, performance appraisal methods, welfare treatment, and other aspects, a questionnaires for faculty and staff in the school was utilized. On-the-spot investigation, telephone interviews, and other forms obtained their employees’ satisfaction with salary. Through mixed research, combined with Maslow’s hierarchy of needs theory, Herzberg’s two-factor theory and other theoretical foundations, it was concluded that the improvement of employee compensation management system is necessary. The impact of employee satisfaction, objectively and realistically was analyzed in the current situation of the salary system in colleges and universities. Establishing a set of talent selection mechanisms suitable for the development of private colleges and universities has laid a solid material foundation for realizing the strategic goal of strengthening private colleges with talents.

The research found that the university has problems, such as unreasonable salary structure, low proportion of basic salary in the salary system, and imperfect performance appraisal in conjunction with salary. Most employees were dissatisfied with their salary, which is mainly manifested in: unreasonable performance appraisal, inability to reflect differences between disciplines, serious “big pot rice” phenomenon of administrative staff, and inability to motivate employees’ work enthusiasm and creativity.

In response to the existing problems, solutions were researched and formulated corresponding to: classified remuneration, long-term incentives using deferred distribution system, special posts and special appointments, KRIF model, and optimization of the performance appraisal system for administrative (logistics) personnel in full-time teachers and administrative management. The problem of personnel salary was improved accordingly, and recommendations for future research were made.

Keywords: salary management, salary structure, employee satisfaction.

The Impact of Improving Employee Compensation Management System on Employee Satisfaction in Shandong University of Engineering and Vocational Technology

Master of Business Administration (International Program), Siam University, Bangkok, Thailand