– Timeframe for achieving Target Market Position: 3 years
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Considerations in Salary Structure design
In order to increase the accuracy of the new system design, and make it easier to do cost analysis, the proposed new salary structure adopts the actual salary data of all employees provided by HR department of China Mobile Beijing, Hebei and Shandong
According to Acenture survey, annual salary increase rate varies from 5% to 11%, so we assume the average salary increase rate of market will be at 8% in the next three years
The grading information adopted in the new salary structure is based on GGS, which is just for salary structure design use, not the final grading result for China Mobile
– All employees’ Guarantee Cash should be correspond to Market median (P50). And based on the market trend, widen the GC gap among different levels of employees gradually, thus change the current situation that GC varies slightly among different levels.
Confidential
Page 2
Draft foroDnliyscussion
Part II. Salary Structure
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Considerations in Salary Structure design
Based on the proposed salary structure discussed in last meeting on June 1st, and the interview with China Mobile top management, considering the current salary situation of China Mobile three pilot sites , suggested salary structure is designed based on the following pay philosophy：
three times adjustment:
Beijing
Hebei
Shandong
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Guarantee Cash－Mid-point Progression
Mid-point progression refers to the percentage difference between the pay grade mid-points. The larger the mid-points progression, the fewer the number of job grades within a pay structure.
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Salary Structure Design - Guarantee Cash
The first step for salary structure design is to set the Guarantee Cash for each grade benchmarking with market situation. The detail process is as following:
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Guarantee Cash－Anchor Point
Grade 11 are selected to be the anchor points for salary
structure midpoint design, following is the detail information for
– Adjust the percentage of Variable Pay Vs Guarantee Cash, thus change the current situation that VP percentage is too high.
– Widen the Total Cash salary gap among different levels based on the Market trend.
China Mobile Human Resources Enhancement
Project Meeting
Acenture Consultancy Co., Ltd July, 2001
ห้องสมุดไป่ตู้genda
Project deliverable Discussion
Part I：Market Comparison Result Part II：Salary Structure Design Part III：Benefit Plan Suggestion Part IV：Stock Option Plan Suggestion
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