The Salary System Design Of The Insurance Company YT Base On EVA

Since insurance business recovered in1980s, the insurance industry of China has been developing rapidly. At present, countries in world are suffering from he US subprime mortgage crisis and European sovereign debt crisis, so there are many challenges to recover fully. But in the sudden disaster, China’s economy has pulled the economy of the world to recover with difficulties. At the same time, Insurance industry in China has been developing steadily. Although we have gained some achievements, we have to know that there are a lot of problems to solve so as to improve the insurance industry.The YT Property Insurance Co., Ltd. GD Branch has been researched in this paper. YT Property Insurance Co., Ltd. is a national joint-stock property insurance company, and YT Property Insurance Co., Ltd. GD Branch is the branch of the company in GD area. A lot of insurance services are included in the business scope, such as Property Damage Insurance, Responsibility Insurance, Credit Insurance, Guarantee Insurance, Short-term Health Insurance, Accident Insurance and so on. After six months of preparation, the company almost can operate normally. However, the organizational structure is in chaos now and the performance appraisal system and salary are not obviously consummated yet. The company has miss the target on the annual assessment indicators, but the managers gained big bonuses in this case, so the management bonuses didn’t significantly linked to business performance and the actual inspection results.This paper diagnoses YT general insurance company’s salary system on the base of discussing the theory on salary incentive and EVA. By discussing the company employees’ satisfaction on the salary, the article proposes a performance appraisal system and a new design of salary system for YT general insurance company, which take economic value added (EVA) indicators as the core and are based on the old salary system. The EVA performance evaluation system is formed by three parts. They are Senior management’s performance appraisal system, normal employees’ performance appraisal system and insurance agent’s performance appraisal system. What’s more, the article make a EVA salary system to correspond the performance appraisal system. Lastly the article gives a calculation on the performance bonus, which is the core content of the optimized comprehensive salary system. The calculation ascertain the base number of performance bonus for senior management and normal employees, as well as the delay payment rates of insurance agent’s salary. What’s more, the article propose the difficulties, risk and strategies in the implementation of the program, and the way to control the program’s implementation. The optimized comprehensive salary incentive scheme was linked the staff with the interests of the company. It will improve the operation capacity of the manager and control the risk of the businesses of insurance, it can effectively solve a lot of problems on the original salary system in YT property. The index of EVA has been completed in foreign countries and there are many excellent practice cases, while it was not applied widely in the Chinese enterprises, especially the non-listed company. Hope to see that the research in this paper can make some contributions to the application of the EVA index to the internal management of property insurance enterprise.