Research On The Institution Of Compensation Incentive Of Employees In Hai Nan Branch Of Agriculture Bank Of China

Along with the advance of reform of the financial system, competition amongcommercial banks has been increasing rapidly. For improving the competitiveness, allthe commercial banks have been actively carrying forward transitions of theirbranches.Front-line employees are the images of commercial banks.Employeeincentive directly influences effectiveness,serving attitude and marketcompetitiveness. The effect of salary management for front-line employee incentivehas been seemed significant especially in the huge competition war among all thecommercial banks.Compensation and incentive system is the main for front-lineemployees are the main object of this research. I have analyzed the existing problemsof subsidiary bank in Han Nan Province by using experiential summery method andmethod of quantitative analysis which are based on questionary,information, materials,datas collected from front-line employees.After analyzing the causes of these existingproblems, I redesigned the compensation and incentive system for subsidiary bank inHai Nan Province which meets its developing needs. According to questionaries fromfront-line employees, compensation incentive system were redesigned combiningwith the knowledge of human resource.After researching on front-line employees, I think that until now the bank hasalready had performance appraisal system and compensation and incentive system.But due to backwards management concepts,lack of internal fairness in paymentsystem and low coverage of payment system, there are some problems incompensation and incentive system and performance appraisal system, likeunreasonable fixed compensation,and over-emphasis on performance assessment andfloating compensation ratio,welfare system lacking of autonomy,incompletenon-monetary Compensation.These are the problems which caused ineffectiveness ofincentive system,dropping of employee satisfaction levels,rising turnover rates whichresult in affecting business performance. This paper taking experiences from advanced payment system of other domesticand foreign commercial banks.According to questionaries from front-line employees,compensation incentive system were redesigned combining with the knowledge ofhuman resource. The unreasonable parts of the original monetary compensationsystem has been adjusted. The non-monetary compensation system were completed.The importance of organizational culture were strengthened.Staff career planning andstaff promotion mechanisms were added. Meanwhile,for the effectiveness of thenew system, I also designed the implementation steps. Hopefully, by compensationstrategy and needs analysis,post evaluation and grading,pay level survey,determiningcompensation structures and level and assessment and feedback, I was able to set up acomplete implementation process. To guarantee these steps, unifying messagingsystem,implementation group and new budget plans are needed.