In reality, many employees work not motivated, one of the important reason, is that they can't see the relationship between effort and performance, the relationship between performance and reward, so want to motivate employees, must be scientific and reasonable to solve the relationship between these three, set up scientific compensation system, fairness is to develop the main basis to perfect the performance appraisal system. Any unfair treatment will affect employees' work efficiency and work mood, and affect the incentive effect. Small and medium-sized enterprises should establish a complete set of standard position management system according to the standard position setting and position description, based on which, they should work out the relative remuneration for each position according to the external salary market survey and the company's internal salary strategy. Determining compensation according to the position value can make employees change from focusing on the position level to focusing on the improvement of their own ability and get compensation in exchange for value contribution. It is beneficial to the long-term development of individuals and enterprises and the maximization of enterprise value for employees to understand their own value and seek real goals