China's Commercial Banks To Pay Management Studies

Compensation is one of the important parts of incentive mechanism in bank. It plays an significant role in such aspects as determining job satisfaction, motivating the staff and strengthening cohesion of the bank. Reasonable compensation system can not only inspire the staff to work actively and positively and spare no effort to struggle for the goal and raise the interests of the bank, but attract and retain a group of competitive staff with high quality under the intellectual economy which is full of hot competitions of human resources.After China became a member of WTO plenty of foreign banks pour in and the competitions among domestic banks become more intense. With the development of the localization of staff in foreign banks and the development of domestic stock commercial banks, what all banks scrabble for is the talents of business administration. Foreign banks possess advanced management experiences and perfect management mechanism. Especially they have a set of scientific compensation system to bring encouragement into play. The salary and welfare of foreign banks which are not confined by our policy are high and are closely related with personal capability and contributions. And also foreign banks put the shot on the right foot. These are all past compare with domestic banks.Our research analysis shows the general level of the compensation management in Chinese banking system is not high. But it also indicates improvement potentiality does exist in our banking system.The research methods adopted here are theoretical analysis and case study. The main problems occur in compensation management of our commercial banks, causes and the new trend of the staffs requirement towards compensation are all discussed in this article. Also some compensation management experiences from western developed countries are adopted. I also put forward ten pieces of advice to perfect our compensation management. The advice are risk compensation mechanism, ways of salary adjustment, design and management involved with staff, regulation of effective restriction and encouragement mechanism, elastic welfare plans, tactics of payment, reward of team work, stock reward, compensation communication tactics, generosity to high staff etc.