This paper explores desirable features of annual salary system a corporation can adopt to design it for R&D personnel or staff. This research, in particular, purports to examine how effective the money compensation is used to motivate R&D personnel and some differences with respect to their research areas, educational backgroudns and professional positions. In addition, the paper analyzes the motivational effectiveness of non-money compensation by comparing the preference level of the money and non-money rewards such as recognition, autonomy and responsibilities, etc. The response of R&D personnel as analyzed in this paper would provide a helpful reference for designing an annual salary system in R&D group.