On December 16, 2022, at 2:00 p.m., the online lecture "Compensation Principles and Practices: Benefit and Special Group Compensation Design" by an external expert was successfully held. Mr. Cheng Yun, Associate Professor of the Business School, invited Mr. Yu Jiefeng, founder of Honeybee Academy, to share and communicate with the students of the Human Resources class of International Business 2020, on the topic of benefits and special group compensation design.
Mr. Yu Jiefeng Graduated from Beijing Normal University and MBA from Lingnan College of Sun Yat-sen University. He is the founder and CEO of Honeybee Academy. He had worked as HR in several companies such as Rainbow, Emerson and Masefield, and he has rich experience in compensation management.
Mr. Yu first introduced the basic concept of benefits and common components of employee benefits. Then, through Herzberg's two-factor theory, Mr. Yu took the benefits strategies of Byte Jump and Google as examples and talked about the impact of various types of benefits on employee satisfaction and the impact on employee motivation. Mr. Yu pointed out that in designing the employee benefits, the main purpose of Internet giants is not to create attractive working conditions, but to assist employees in solving life chores as far as the company can, so that employees can concentrate on stimulating creative thinking and improve work efficiency.
About the compensation design for special groups, Mr. Yu shared the principles and methods of compensation management for senior executives, sales, and R&D employees.
For the senior executives, the ratio of fixed to variable compensation and the specific components of the variable compensation are usually the core concerns in designing the compensation package. The compensation package is usually influenced by performance, business status, importance of the position, and market level. Stock and options are usually the common parts of executive incentives. What is the difference between the two? How much of an impact do option incentives have on executives? Mr. Yu illustrates the different influence of executive compensation design on the performance of companies in the market with the different results brought by the stock dividend strategy of GE executives and the stock option strategy of P&G executives.
For the compensation management strategy of the sales, Mr. Yu proposed the differentiated strategies of salary leverage and bonus according to the length of the sales cycle, the characteristics of the company's products, the type of customers and other factors. Which is more appropriate, high base salary with low commission or low base salary with high commission? Does it make sense to cap bonuses? These usually have different answers depending on the type of business.
About the remuneration of R&D employees, Mr. Yu introduced the typical characteristics of R&D employees and the proper incentive strategies and methods. The three categories of R&D personnel - basic R&D, application R&D and R&D management - have different characteristics of R&D results and their compensation strategies should be different.
Finally, Mr. Yu introduced Uber's incentive strategy for drivers in detail. With the combination of exquisite incentive policies and management initiatives, Uber effectively tracts the drivers to provide quality services through doubling incentives, punching incentives and special titles.
Through rich cases and professional theories, Mr. Yu shared with the students the principles and practical methods related to the design of benefits and compensation strategies for special groups. Through the lecture, the students got a deep understanding of the compensation management and gained a lot.
Figure 1: Mr. Yu Jiefeng is sharing.
Figure 2: Mr. Yu Jiefeng introduced the bonus design for sales.
Text: Tang Jiefeng
Photo: Cheng Yun
Review: Cheng Yun
