The Influence Mechanism of Compensation Incentive in State-Owned Enterprises on the Realization of Enterprise Strategic Goal:A Case Study of a Petroleum Company in Guangzhou

Abstract

The report to the 19th National Congress of the Communist Party of China pointed out: "Socialism with Chinese characteristics has entered a new era, which is a new historical juncture in China's development.State-owned enterprises are the pillar of socialism with Chinese characteristics and a powerful driving force for China to enter this new era of history. Meanwhile, Employee compensation incentive is an indispensable part of state-owned enterprises to realize their strategic goals and leapfrog development, and to attract and retain critical talent. In order to research the influence mechanism of compensation incentive on the realization of strategic goals of state-owned enterprises, this paper select a state-owned enterprise in the petroleum industry in Guangdong Province as a case, and analyze its employee background, compensation structure, income change and the comprehensive development of the enterprise from 2012 to 2020.The research shows that:If state-owned enterprises want to keep their own compensation system competitive advantage in the market competition and effectively help state-owned enterprises attract and retain talents, they need to pay attention to the internal fairness and external competitiveness of the compensation system. At the same time, this paper proposes to adhere to the policy of maintaining and increasing the value of state-owned assets as the premise,and the next stage can continue to explore inefficient assets, loss assets of a variety of innovative business models, such as managerial responsibility system of contracting or entrusted management.