The Research On The Compensation Incentive Mechanism In Higher Education Institutions

Compensation combines the roles of cost and investment. The way to define it reflects the different managerial behaviors and ideology. To higher education institutions, human capital is both their survival skills and contribution to the society. However, university teachers are not satisfied with their pay and this show the problems in compensation incentive mechanism. As an effective incentive measure, compensation becomes increasingly important to encourage teachers to work actively and creatively. It is significant in overcoming the present financial stress and making full use of the financial and personnel resources.Starting with classic theories and based on the modern research achievements, this paper introduces and defines the compensation and incentive to lay a solid foundation in further research. By learning from the experience in compensation incentive in other countries, this paper summarizes the lessons: to combine compensation and performance, to adopt flexible personnel system, to give full play to personnel potential and control the cost. Looking back on the history of salary reform, traditional concept of compensation still has deep effects on the administration in universities. By comparing with the other countries and our own past experience, we find the hidden problems under the steady progress and superficial prosperity, lack of compensation incentive, inefficient pay structure, the urgent need for long-term incentive, limit in incentive factors and the separation from the society and market.Based on the practical experience, this paper analyses the compensation, incentive mechanism, and merit assessment in S University, and then presents the plan: total compensation equals to financial compensation plus non-financial compensation. In the new model, the paper adopts the common achievements in former researches, that is compensation combines financial and non-financial factors, but at the same time develops and surpasses the limit in incentive factors. The feedback from society, parents, students and graduates are all listed in the assessment.The new mechanism is competitive and economical, meets all material and spiritual needs, and claims the advantages of short-term and long-term incentives. In terms of the diversified needs of academic group, the cafeteria benefit plan is applied. Allowance standards are revised and the range overlap is introduced. The paper highlights profit sharing and deferred compensation plans, which are popular in industrial enterprises.Along with the shift in resource disposition by political power to by market, political capital influence will be gradually weakened, while the human resource will take the place. Therefore, the science in human resource management becomes important, but to encourage staff efficiently involves assessments. By analyzing the relationship among merit, efficiency and profit and between profession titles and being efficient, the paper paves the way in three-step assessment so as to play the long-term effect of non-financial incentive.In summary, overcoming the weakness of financial compensation and tapping the inner factors are the principle and base for the solution to the existing incentive problems in universities, and the down-to-earth improvement lies in implementing the assessment policies strictly and broadening the scope.