Employee Incentive Mechanisms in Small and Medium-Sized Enterprises and Strategies for Their Optimization

摘要

Abstract

Constrained by their operating scale, financial capacity, and managerial foundations, small and medium-sized enterprises (SMEs) frequently encounter problems in employee incentive management, including ambiguous compensation standards, one dimensional performance appraisal, limited opportunities for career advancement, and largely symbolic nonfinancial incentives. Effective incentives should be based on the alignment of job value, employee needs, and organizational objectives. Enterprises should improve their compensation and performance management systems, establish differentiated career development pathways, expand appropriate employee empowerment, strengthen recognition and communication, and ensure effective policy implementation through dynamic evaluation and managerial training. These measures can help SMEs gradually develop sustainable incentive mechanisms that integrate material rewards with employee development.