Abstract

This paper proposes an integrated framework of compensation paying base within an organization. We use "competitive advantage of human resource" and "explicitness of job worth" as two dimensions to define four kinds of compensation paying bases. There are special skill, performance, seniority and job. The framework can match the compensation objectives of organization and employees. It also increases organization performance and employee satisfaction, and decreases the turnover. This framework facilitates a complete perspective for managers to decide which compensation base is more appropriate for different employees. We emphasize relevant positions will adopt more weight of "special skill compensation paying base" only on facilitate the growth and develop of competitive advantage. The "special skill-base" makes compensation system more effective. It also helps manager to understand which position has the potential to be a source of competitive advantage. Once the potential human resource is identified, it can be planned in advanced and well developed.