Research on the problems and countermeasures in incentive mechanism of small and medium private enterprises

With the development of modern enterprises, more and more enterprises realize that "talent is the first capital of the enterprise". The competition among enterprises is essentially the competition of talents. However, for most of the small and medium-sized private enterprises in the period of entrepreneurship and development, due to limited conditions and insufficient resources in their development process, there are difficulties and obstacles in attracting talents and retaining talents. To solve this problem, the key is to establish and improve the corresponding employee incentive mechanism, in order to stimulate the enthusiasm of employees and improve the efficiency of the organization. Based on the analysis of the current situation of the incentive mechanism of small and medium-sized private enterprises, combined with the actual environment of China, this paper puts forward corresponding countermeasures and suggestions on how to establish effective incentive system in the management of enterprises.