In recent years, human resources is no longer as the cost in past but as an important resource that caused more and more enterprises to pay attention to. Compensation management is one of the core contents of human resource management, performance pay system involves the economic efficiency of enterprises and the vital interests of employees, this system used properly or not will directly affect the management and operation of the entire enterprise. This article will analyze the misunderstanding on the traditional compensation management methods as well as three innovative compensation management measures.
I believe that every enterprise is considering the question. How enterprises enable to remain invincible in the fierce market competition? Where is the power for a long-term development of enterprises? Numerous outstanding business practices tell us: “human resources, as a strategic resource of the modern enterprise, has became one of the most critical factor for enterprise development ” (Zhihui Lu, Based on performance salary management system 2011（3）). Among all the human resource management problems, the motivation problem is one of the important content. The science of motivation pattern is directly related to whether the human resources management will be good or not. Brain drain has become a serious trouble for many companies. Unable to retain talents has become an important factor to restrict the development of enterprises. Effective motivation is the key to solving this problem.
In essence, the extrinsic rewards in compensation management, one of the main motivation pattern impacts on employee’s enthusiasm in enterprise management is a non-mandatory contract. It is based on relative performance. An agreement will be signed by companies and staff through this contract; it combines...