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I. Introduction As the economy develops, salary issues have become increasingly sensitive and difficult to manage. Chinese enterprises still face many problems in salary management, and these issues severely hinder the development of our country’s economy. The new compensation management model is designed to motivate employees in different positions; it employs various compensation strategies based on the role each employee holds within the company, with the aim of meeting each employee’s most urgent needs and boosting their enthusiasm for work. In a modern market economy, compensation management is one of the most important and sensitive aspects of corporate human resource management, having a significant impact on a company’s competitiveness. In recent years, as business operations have gradually undergone transformation and there has been a need to establish modern corporate systems, the wage distribution system within enterprises has progressively shifted from being a **behavioral aspect to becoming an inherent feature of the enterprise itself. Once a company truly gains autonomy in its operations, it becomes necessary to determine how to balance the relationship between profit accumulation for the company’s own use and distribution among employees. It is also important to compensate those who contribute to the company in an objective, fair, just, and reasonable manner, so as to promote the company’s development while ensuring that employees receive both economic and psychological satisfaction from their salaries, thereby stimulating their enthusiasm and creativity. However, in practice, companies often fail to address this issue effectively, which leads to talent loss and increased costs for the company. Therefore, finding a compensation system that meets market demands and is compatible with modern corporate systems, while also being suitable for the company’s own development, has become an urgent requirement for businesses. As a result, the design of such compensation systems has become an important area of research for human resources managers. Research on compensation systems abroad is already quite advanced. However, domestic scholars’ research on compensation systems mostly remains at the conceptual descriptive stage. Under market economy conditions, the quality of the compensation system design has a direct impact on a company’s performance. Then, based on the evolving trends in the environment in which enterprises operate, new trends in salary system design were outlined, with the aim of helping Chinese companies attract and retain talent as well as improve their human resources management capabilities. II. The main research findings in the foreign academic community regarding compensation management are as follows. 1. There are many theories regarding human needs; some classify needs into existential needs, relational needs, and growth needs ； Others classify them into natural needs and cultural needs based on their origin ； It can be classified by object into material needs and spiritual needs, etc. However, Maslow’s \"Hierarchy of Needs Theory\" and Herzberg’s \"Two-Factor Theory\" have had the greatest influence on research regarding human needs, becoming the two main representative theories of content-based motivation theories. (1) Maslow’s “hierarchy of needs theory”. The renowned American psychologist and behaviorist Maslow proposed that people have needs, and it is these unmet needs that serve as the motivation for them to work, as well as the factors that drive them to engage in work. However, these needs appear in a hierarchical form, divided into five levels from low to high. The first level relates to physiological needs, which include all the material requirements necessary for humans to maintain basic survival. Once these needs are not met, survival becomes a problem, and it becomes impossible to consider any other needs at all. Therefore, Maslow believed that in societies with generally low economic development, it is necessary to first study and meet these needs. The need at the second level is the need for safety, that is, the human need to be free from danger and threats. This requires considering not only the present but also the future. The third layer is for social needs, also known as emotional and belonging needs. Such needs include maintaining good relationships with colleagues and seeking the affection of others in order to have emotional support. These needs are mostly met within certain organizations, especially informal ones. The fourth level relates to the need for respect – the desire for others to acknowledge one’s work, character, abilities, and talents and to give them high evaluations; it involves wanting to have a certain status and reputation among colleagues, so as to earn respect from others and exert influence ； The need for respect also includes self-esteem, which is a powerful driving force that motivates people to strive for improvement. The fifth level of needs, and thus the highest level, is the need for self-actualization – the desire to achieve success in one’s work, to make progress in one’s career, and to realize one’s own ideals or ambitions. The need for self-actualization is usually manifested in two aspects: a sense of competence and a sense of achievement. Maslow believed that these five types of human needs are arranged in order from lowest to highest. Only when the needs at lower levels are satisfied can higher-level needs arise. Therefore, it is only once the lower-level needs are fully met that the subsequent needs can serve as a source of motivation. (2) Herzberg’s “Two-Factor Theory”. “The “Two-Factor Theory” was proposed by the American psychologist Herzberg. According to Herzberg, contrary to traditional views, the opposite of satisfaction is not dissatisfaction, but the absence of satisfaction ； The opposite of dissatisfaction is not satisfaction, but the absence of dissatisfaction. According to Herzberg, improving hygiene factors only serves to appease employees, resulting in \"no dissatisfaction\" but not necessarily motivating them. Therefore, to truly motivate employees to work hard, it is necessary to improve those motivating factors, so as to increase their job satisfaction. In fact, upon careful analysis, it can be seen that Herzberg’s \"Two-Factor Theory\" and Maslow’s \"Hierarchy of Needs Theory\" are compatible with each other. Hertzberg’s hygiene factors correspond to Maslow’s lower-level needs, while his motivators correspond to his higher-level needs; the difference is that Maslow focused on the needs themselves, whereas Hertzberg focused on the goals and incentives associated with those needs. To some extent, Herzberg’s \"Two-Factor Theory\" validates Maslow’s \"Hierarchy of Needs Theory,\" as it is based on certain fundamental assumptions regarding individuals. (3) Raymond Loewy, John Horenberg, and Beyer Gerhart state in their book Human Resource Management: Gaining a Competitive Advantage that, aside from meaningful work, the most important incentive that companies can use to encourage employees to contribute to productivity, quality, and customer service is compensation. Furthermore, salaries and benefits are also used as a form of compensation for employees joining the company, as well as a means to attract them. If employees are dissatisfied with their compensation or believe that the company’s distribution of wages and benefits is unfair, then the positive effects of factors such as the design of new jobs, new technologies, and quality management activities on productivity will be undermined. (4) Wayne Mondy and Robert Noe discussed the determinants of compensation, analyzing the four key factors in compensation design, namely: the organization, the labor market, the job, and the employees. (5) Lloyd L. Bayers and Leslie W. Lou argue that most basic salary systems determine wage ranges for specific positions based on the relative value of those positions within the organization. Then, the performance of an employee in the same position should determine which point within that position’s salary range their salary falls at. The key to a sound basic salary system is to establish different salary ranges for various positions within the organization. The two basic steps to establish salary ranges: (1) determine the relative value of various positions within the organization (to ensure internal fairness). (2) Pricing various positions is mainly achieved through job evaluation and salary surveys. 2. Domestic scholars have also produced a considerable amount of theoretical research on compensation management. Feng Hong points out the three functions of compensation in her book Modern Enterprise Human Resource Management: the compensatory function, the motivational function, and the regulatory function. It is believed that salary management holds the following significance: it is an important aspect in implementing the principle of distribution according to work ； It contributes to enhancing corporate vitality and promoting the development of productivity ； Improving corporate management is conducive to further refining the corporate operation mechanism. It also introduces the contents of compensation management, the structure of the compensation system, and the factors that influence compensation levels. Wang Qiyan points out in \"Enterprise Human Resource Management\" that if enterprises want to gain a competitive advantage in the market, they must provide their employees with reasonable compensation. This is because the ability to establish a competitive compensation system is crucial for attracting, retaining, and motivating top talent to serve the organization, improving employees’ job satisfaction and sense of belonging to the organization, and helping them achieve the organization’s goals. It also provides a comprehensive discussion on the basic concepts of compensation, the contents of compensation management, and the principles of compensation management. In her book Human Resource Management, Guan Shurun provides a comprehensive discussion on wage management, arguing that wages are the amount paid by enterprises to employees in monetary form; they are a necessary condition for ensuring the continuation of social reproduction and represent an important manifestation of the principle of distribution according to work. In the book \"Human Resource Management in Modern Enterprises,\" the author focuses on the compensation of managers, arguing that compared to ordinary employees, managers’ compensation not only differs significantly in terms of amount but also in terms of structure. Managers have higher \"additional incomes,\" and their compensation is more geared toward incentives; the proportion of base salary in their earnings is relatively small, while the share of incentive-based pay is much larger than it is in the earnings of ordinary employees. III. Conclusion: Faced with the increasingly fierce competition for talent, Chinese enterprises must change their traditional salary management systems in order to retain talent, especially after China’s accession to the WTO. For Chinese enterprises to establish a compensation management system suited to their own development path, it is necessary to adopt different compensation strategies for employees in various positions, based on the characteristics of the enterprise. This approach helps these employees feel that the enterprise truly understands them and values their contributions, thereby boosting their enthusiasm for work and making them see their job as an integral part of their lives. It also helps them realize that the success or failure of the enterprise is closely related to their own interests. Every company has its own unique corporate culture and faces different competitive environments; therefore, finding a salary management system that suits it is not something that can be achieved overnight. Each company must continuously explore and improve its salary management methods over time. Two important issues that Chinese companies must pay attention to when implementing new models of compensation management are: avoiding the pitfalls of an overemphasis on compensation or the belief that compensation is useless; and recognizing that a company’s compensation management system is not an independent entity, but rather needs to be integrated with the company’s strategy, culture, and human resources management systems. The new model of compensation management allows employees to feel that the company truly understands what they need and strives to provide it, enabling them to realize that they are needed and that their abilities are utilized; as a result, they experience satisfaction, both in material terms and psychologically ； For businesses, when employees are satisfied, their enthusiasm for work increases as well as their efficiency, which leads to positive developments for both the company and its employees.