SMEs(small and medium-sized enterprises) have become most economic growth point and important part in China's socialist market economy and is playing an more to the more important role in meeting the diverse needs of the people, entrepreneurship, technical innovation, provide new employment opportunities and so on. However, with the deepening of market economy development, factors which not meeting market economy appear increasingly, and the most important factor is the lack of an incentive mechanism, which can mobilize the enthusiasm of staff, attract staff and make employee to be loyal in enterprises. This paper analyzes current situation and problems of human resources incentive in China's small and medium-sized enterprises, and the countermeasures has been pointed proposed for small and medium-sized establishing a perfect and scientific incentive mechanism
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