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In the era of the knowledge economy and economic globalization, if enterprises are to survive, the primary issue is to improve the level of management of their human resources in order to meet the demands of competitive society, and salary management, as an important part of human resource management, plays a key role in this regard. A sound compensation system can attract, retain, motivate, and unite top talent, enabling them to fully and consistently utilize their abilities and thus laying a solid foundation for the sustainable development of the enterprise. Therefore, how to formulate appropriate compensation strategies that align with the company’s development strategy is an important challenge for Chinese enterprises. This article is a theoretical study on corporate compensation management. At present, Chinese enterprises still face various issues in this area, which severely hinder the development of the country’s economy. In light of these problems, it analyzes potential solutions and strategies, aiming to provide systematic theories and practical methods for corporate compensation management. At the current stage in our country, wages are the main source of personal consumption goods for workers; they ensure their basic living needs and facilitate the reproduction of their working capacity. By searching for and collecting relevant materials, some valuable references were obtained. “In modern enterprise management, human capital plays an increasingly important role in helping companies gain a competitive advantage in terms of talent. The compensation system is a \"double-edged sword\" for enterprises: when used properly, it can help attract, retain, and motivate talent, while improper use can pose a threat to the company. ” “Salaries are a very fundamental and crucial aspect in any enterprise; however, the design of salaries affects not only the effectiveness of motivating employees but also the company’s costs and various other factors ； The motivational effect of compensation is influenced by various factors within a company; therefore, when choosing a compensation system, it is necessary to select one that suits the specific characteristics of each company. When establishing a compensation system, companies generally consider three aspects: first, the level of compensation ； Second is the salary structure ； Third is the salary grade and grade difference. ” “The traditional compensation system has become more like a right. In a work environment that emphasizes collaboration, there is a gap in the mutual needs between employees and the company. The bottom line for employees is that merely providing compensation is far from enough; they demand to share in the organization’s success. ” “A similar idea was mentioned as early as over two thousand years ago in the \"Analects of Confucius, Chapter Ji\": \"Those who have states and families need not worry about poverty, but rather about inequality; they need not worry about a small amount of resources, but rather about lack of stability.\" With a cover, there is no poverty; with harmony, there is no widowhood; with peace, there is no disorder. ”Today, we have given more meaning to the fairness of wealth distribution, but its fundamental essence remains unchanged—more work, more reward. ”“Joe E. Isaac, a professor at the School of Management at the University of Melbourne in Australia, points out that only when business management upholds the principle of fairness in its practices will employees be willing to cooperate with managers and strive to improve work efficiency. ” “With salary payments shifting from an \"additive\" model to a \"subtractive\" one, if salaries are determined only through addition (base salary + commission), performance evaluation criteria may become meaningless, as it still boils down to the principle of \"more work, more pay; less work, less pay.\" If one doesn’t want to earn a high salary, then there’s no need to strive hard ； Subtraction, on the other hand, is different: if you want to earn a certain salary, you have to work hard. ” “Under normal circumstances, depending on whether the motivation that compensation provides to employees is an external reinforcement or an internal psychological reinforcement, compensation can be divided into external rewards and internal rewards. ” “Self-service compensation is an interactive compensation management approach in which the company develops a package of compensation and benefits options for employees, who then choose the combination of benefits that they prefer. It’s like when customers shop in a supermarket: the supermarket provides employees with a variety of products, allowing customers to choose freely the items they need. The supermarket also has to adjust the range of products based on customer demands in order to better meet their needs. To a certain extent, this salary management model meets the requirements for innovation in salary systems under the concept of \"people-oriented management\". ” The 21st century is an era of both opportunities and challenges, and human resource management is key to competition. Salary is a powerful tool for driving a company’s strategic goals, and a well-established salary management system plays an important role in determining employees’ job satisfaction and motivating them to work harder. Therefore, when establishing a compensation system, Chinese enterprises must take into account the characteristics of their own companies, and through continuous exploration and refinement of various models, develop a compensation management system that suits them.