A Study on SEMs’ Performance Compensation Strategy Using AHP and IPA

This paper attempts to derive effective performance-reward strategies for SMEs, which is one of the primary concerns raised by SME CEOs. This paper draws on the four question items such as the financial/direct performance-reward factors, the financial/indirect performance-reward factors the non-financial/direct performance-reward factors and the non-financial/indirect performance- reward factors to shed light on the most important factors and aspects that need improving, using the AHP(Analytic Hierarchy Process) and IPA (Importance-Performance Analysis). The overall findings on the SMEs’ performance-reward factors of interest here are indicative of the need for rectifying their performance-reward systems. The results showed that the support of leader, extension of retirement age, recognition, management policy, wage, bonus payment and achievement should be improved immediately.