At present, China's rapid development of SMEs in the country's national development through the play a decisive role, but compared with large enterprises or multinational corporations , there is the lag of incentive system. To improve productivity so that enterprises more competitive, through staff effective incentives to fully mobilize the enthusiasm of the staff's work, to play the maximum potential employees for access to the best interests of enterprises and maintain the sustainable development of enterprises, the enterprises will continue to do so Strong masterpiece. Although the management of enterprises have realized the importance of the work incentives, but in practical work there are many problems as lack of management incentives, the employees have not reasonable incentive systems to support the system. Therefore, enterprise managers must work to encourage its own continuous learning and training, improve the modern enterprise management level. On the other hand is to establish accurate, fair and reasonable employees incentive mechanism. Is to establish incentive and remuneration paid material from the spiritual needs of staff, will combine incentive mechanism of human nature, to take various means to enhance the work of staff enthusiasm, cultivating a sense of belonging among the staff.
KEYWORDS:incentives,small and medium enterprises, system