Author(s)

XinYang Xu

Affiliation(s)

Zhengzhou University of Technology, Zhengzhou 450044, Henan, China.

Corresponding Author

XinYang Xu

ABSTRACT

In the knowledge economy era, intensifying global competition has made high-caliber talent a critical factor in corporate core competitiveness. This study examines X Company—an education and training provider—to identify issues within its compensation management system and propose optimization pathways. As a comprehensive educational institution integrating postgraduate exam preparation, online education, and book publishing, X Company faces challenges including talent attrition, high costs, and increased operational pressure due to the COVID-19 pandemic and the “Double Reduction” policy. Its compensation management suffers from issues such as disconnect between compensation policies and corporate strategy, lack of position-specific compensation standards, structural imbalances, unscientific performance evaluations, limited benefits, and insufficient non-monetary compensation.This study systematically analyzes X Company's current compensation management practices by integrating foundational theories such as Equity Theory, Two-Factor Theory, and Human Capital Theory. It employs multiple research methods including literature review, case analysis, questionnaire surveys, and interviews. Based on this analysis, targeted optimization proposals are presented. These include aligning position-based compensation standards with corporate strategy, optimizing compensation structures, refining performance evaluation and benefit systems, and strengthening non-monetary compensation development. Implementation safeguards encompass conceptual innovation, feedback mechanisms, oversight systems, and communication channels. This research aims to enhance X Company's compensation management effectiveness, maximize cost-benefit ratios, strengthen talent attraction and retention, improve employee satisfaction, and elevate the company's overall competitiveness. It also provides reference for compensation management optimization in the education and training industry and other small and medium-sized enterprises.

KEYWORDS

Compensation; Compensation management; Solution optimization; Education and training enterprises

CITE THIS PAPER

XinYang Xu. Optimizing X company's compensation management system. World Journal of Management Science. World Journal of Management Science. 2025, 3(3): 57-68. DOI: https://doi.org/10.61784/wms3082.

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