| Railway, as the most important infrastructure in the country, not only responsible for the basic task of public transport, but also is the cornerstone of freight transport system. Compared with other means of transportation, the railway has many advantages, such as low energy consumption, high security, large transport capacity, less pollution and so on. In the past decade, with the development of high-speed rail projects and the Ministry of Railway’s reform, the railway in China has made great progress. However, railway company focused on the upgrading the infrastructure and equipment, to a certain extent, the construction of the "soft power" was ignored. Therefore, this study, which is based on Railway Bureau, analyzed the salary incentive mechanism, in order to enhance the enthusiasm of the staff and provide reasonable suggestions for Railway Bureau.Study launches from the following several aspects, first of all, under the guidance of previous studies, the salary of Railway Bureau is divided into four categories: general wage, subsidies and allowances, bonuses, performance pay. Based on the salary satisfaction of these four types of wages, the positive direct incentive effect model was built. In the other hand, the indirect effects model of pay satisfaction to salary incentive effect was built by adding the Intermediate variable of compensation perception. According to the direct and indirect model, the intrinsic mechanism of the compensation incentive in Railway Bureau has been established. Then, the questionnaire is designed to recover the research data. Through the software of SPSS and Amos, EFA, CFA and SEM were used to examine the hypothesis of the previous research.The test results show that the direct and indirect paths exist in the compensation incentive process of railway Bureau. And compared to the direct path, the indirect path not only plays a supplementary role in the compensation incentive, but also has stronger applicability. The study also pointed out that not all kinds of compensation have direct incentive effect. As in the railway bureau, the enthusiasm of the staff cannot be enhanced by adjusting the general wages and subsidies. Moreover, in the comprehensive consideration of both the direct and indirect effect path, it is not difficult to find that variable pay, such as bonuses and performance pay, has a better incentive effect than the fixed salary, such as General wages, allowances and subsidies. Therefore, two suggestions for the future reform of compensation incentive in railway bureau has been put forward. First of all, Railway bureau needs to strengthen the dual path of compensation incentives, especially the indirect path by approaching means of pay communication in order to enhance employees’ perception of salary. In addition, for the sake of maximizing the incentive effects of different salary types, Railway bureau needs to set differentiated policies by taking the characteristics of different salary types into account. |