Research On The Reform Of Compensation System In Rural Commercial Bank

With the development of Chinese rural financial system reform, rural credit cooperatives and rural credit union will have been transferred to rural cooperative bank and rural commercial bank in succession. Due to long-term legacy of the defects of system and mechanism, in China a relatively scientific, reasonable, fair and just rural commercial bank salary system and performance management system haven’t been established yet; which has affected the competitiveness of rural financial institutions staff seriously. Since it lacks a complete set of salary system which embodies different job characteristics and performance contribution, it leads to the weakness of market competitiveness of rural commercial bank and the slowness of talent introduction and cultivation. Therefore, rural commercial bank salary system reform and system design studies have important and practical significance to enhance market competitiveness of rural commercial bank, bank performance and employee satisfaction.A large number of literature researches and field investigation results indicate that it is necessary to maintain the employees’enthusiasm and creativity for the development of rural commercial bank. Meanwhile the incentive salary system is an important guarantee to mobilize their enthusiasm and creativity. As a new presence in the financial landscape of rural areas in China, the establishment of the rural commercial bank salary system should be a process of gradual and orderly advance. And the design of the salary mechanism should not only consider the general law of development of banking but also the actual situation of the local economy and their business operation of the bank so as to ensure the practicability, equity and effectiveness of salary system design. In this thesis, after historical and realistic analysis, theoretical and empirical research, the relevant theories of the rural commercial bank salary system reform and design are systematically investigated. The main contents and innovation points are summarized as follows:l.The direction of Chinese rural commercial bank system reform and the basic theories of salary system reform is discussed. This thesis reviewed the overseas development of rural commercial finance organization pattern, lessons and enlightenment to China, analyzed the development process and characteristics of the rural commercial bank and introduced the principal-agent theory, contract theory, incentive theory and the theory of Broad-banding Compensation which are related to salary mechanism.2.The method of rural commercial bank salary design is presented. From the historical analysis of the rural commercial bank salary management, this paper deeply discussed the present condition, the existing problems and reasons of rural commercial bank reform process and salary system. It also discussed the basic methods of salary design of rural commercial bank. The author studied the rural commercial bank salary system by model and put forward the relevant ways of salary distribution and methods of salary evaluation. Combining the reality of Wuhu Yangtze rural commercial bank salary reform, he analyzed the salary design principles and concrete scheme including basic salary incentive salary plan, welfare income plan and performance design.3.The policy recommendations for the rural commercial bank salary system construction are proposed. In this thesis, the author put forward and profoundly analyzed relevant policy recommendations for the rural commercial bank salary system construction, which comprised several points as follows:the perfection of the enterprise environment of the salary system construction and establishment of an effective job analysis and evaluation system; the improvement of Chinese rural commercial bank level line management system, adhering to the basic principles of "objectives, fairness and comprehension" and "different approaches, overall coordination and mutual improvement"; the perfection of rural commercial bank business process and innovation of business model and so on.The achievements in this thesis extend the research ideas of the reform and development of rural commercial bank reform and enrich the method of rural commercial bank salary mechanism establishment, and also provide systematical and potential solutions for the rural commercial bank salary system reform.