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Optimization of size and timing of base salary increases
The Engineering Economist ( IF 1.0 ) Pub Date : 2018-12-29 , DOI: 10.1080/0013791x.2018.1528408
Taner Cokyasar 1 , Alberto Garcia-Diaz 1 , Mingzhou Jin 1
Affiliation  

Abstract Salary administration research mostly examines the compensation guides in a subjective manner and lacks quantitative approaches. Recent failure instances of salary administration demonstrate the exiguity and/or inapplicability of scientific research in this area. This research considers the core aspects of theoretical salary administration while complying with the recent competitive working environment. In this article, a mathematical optimization approach that recognizes the significance of performance and potential to future promotions of employees is proposed to find the optimal salary increase amounts and to set an advantageous schedule for salary increases. The two objectives are combined with a weight, and a sensitivity analysis shows the impact of the weight on both objectives to provide managerial guidance. The resulting raise amounts satisfy both internal alignment and external competitiveness conditions and represent employee performance and potential for promotion. The proposed mixed integer programming problem can be solved with commercial solvers quickly, even for rather large instances. The short computational time directly addresses the challenge raised by the current trend that more enterprises hire a large number of exempt employees. Additionally, two cases are presented with detailed data collection to illustrate the applications and limitations of the proposed model.

中文翻译:

优化基本工资增长的规模和时间

摘要 薪酬管理研究大多以主观的方式考察薪酬指南,缺乏量化的方法。最近工资管理失败的例子表明该领域科学研究的稀缺性和/或不适用性。本研究考虑了理论工资管理的核心方面,同时顺应了最近竞争激烈的工作环境。在本文中,提出了一种数学优化方法,该方法认识到绩效和潜力对员工未来晋升的重要性,以寻找最佳加薪金额并设置有利的加薪时间表。两个目标结合一个权重,敏感性分析显示权重对两个目标的影响,以提供管理指导。由此产生的加薪金额满足内部一致性和外部竞争条件,并代表员工的绩效和晋升潜力。提出的混合整数规划问题可以使用商业求解器快速解决,即使对于相当大的实例也是如此。较短的计算时间直接解决了当前更多企业雇用大量豁免员工的趋势所带来的挑战。此外,还提供了两个案例,其中包含详细的数据收集,以说明所提出模型的应用和局限性。较短的计算时间直接解决了当前更多企业雇用大量豁免员工的趋势所带来的挑战。此外,还提供了两个案例,其中包含详细的数据收集,以说明所提出模型的应用和局限性。较短的计算时间直接解决了当前更多企业雇用大量豁免员工的趋势所带来的挑战。此外,还提供了两个案例,其中包含详细的数据收集,以说明所提出模型的应用和局限性。
更新日期:2018-12-29
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