COMPENSATION MANAGEMENT OPTIMIZATION IN MANUFACTURING ENTERPRISES: A CASE STUDY OF COMPANY A
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This study aims to: 1) identify the main weaknesses in the compensation management system of Company A, a small and medium-sized emergency equipment manufacturing enterprise in Nanchang, China; 2) examine how compensation level competitiveness, compensation structure rationality, compensation adjustment scientificity, and career development pathway accessibility affect compensation management effectiveness, employee work performance, internal fairness perception, and turnover intention; and 3) propose an operable compensation optimization framework for manufacturing enterprises with both technology-intensive and labor-intensive characteristics. A mixed-method case-study design was adopted. Quantitative data were collected from 192 valid questionnaires among 274 full-time employees and analyzed using SPSS 26.0 through descriptive statistics, reliability and validity testing, Pearson correlation, multiple regression, and mediation analysis. Qualitative evidence was obtained from 11 semi-structured interviews with frontline employees, middle managers, and senior managers.
Results show that: 1) employees evaluated the current compensation system at a relatively low level, especially in career development pathway accessibility; 2) compensation level competitiveness significantly improved compensation management effectiveness (β = .724, p < .001); 3) compensation structure rationality significantly improved employee work performance (β = .712, p < .001), and work motivation partially mediated this relationship; 4) compensation adjustment mechanism scientificity significantly improved internal fairness perception (β = .735, p < .001); and 5) career development pathway accessibility significantly reduced turnover intention (β = -.728, p < .001). The study recommends market-based benchmarking, differentiated pay structures, transparent salary adjustment rules, and a dual-track career development system.
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