Chinese Workers′ Attitudes towards Compensation Practices in the People′s Republic of China

Examines the compensation method used in state‐owned enterprises in the People′s Republic of China. A questionnaire survey of 504 workers′attitudes towards compensation practices regarding wages, bonuses,pensions, unemployment compensation and other incentives was conducted. Research results revealed that there was strong agreement among respondents for the ranking of the different forms of compensation practices. The respondents preferred a performance‐based compensation system as opposed to an egalitarian system. These results give some insight into designing a compensation package and the direction for economic reforms in enterprises.