Study On Incentive Mechanism Of HFZ Securities Company Investment Adviser Based On Psychological Contract Theory

Since the policy of floating trade commission had been implemented in China's stock market in May 2002,commission competition between securities traders gradually got started.With a new round of bull market in 2015 and the growing of opening online accounts,the commission for A-share stocks is getting close to brokers' costs gradually.Single channel revenues of securities companies has been already unsustainable,and the transformation of traditional brokerage business was imperative.Transformation of the traditional securities traders put forward higher requirements to the investment advisers on their expertise and service levels.In the foreseeable future,competition in the brokerage business is a kind of competition in service levels of investment advisers,and excellent investment advisers is a key factor to the healthy and sustainable development of brokerage business.It is of great importance to study how to effectively motivate investment adviser to improve their internal initiative,then to improve their performance and reduce turnover intension.Based on psychological contract theory,this article makes a research on the incentive mechanism of investment advisers,obtains a clear incentive path through the analysis of the important dimensions and their relations of employee incentive factors,and develops the corresponding incentives in view of the three dimensions of psychological contract.Firstly,according to the literature review and questionnaire research,it can be concluded that,the three dimensions of psychological contract for investment advisers are relational,transactional and developmental obligations,respectively.Secondly via a questionnaire survey on incentive factors,this paper puts forward the research hypothesis,and constructs the conceptual incentive model from the perspective of the employees' psychological contract.Afterwards,the conceptual model is verified by the structural equation.Through empirical analysis,it can be concluded that,the relational obligations,which likes the hygienicfactor of the two factor theory,has no significant effect on the incentive factors,but the transactional and developmental obligations have the obvious effects like the incentive factors.Meanwhile,the transactional obligations have greater influence on the variables than developmental obligations.This conclusion shows that the demand for material incentives is still higher than non-material incentives for investment advisers,which is consistent with China's national conditions.Taking HFZ Company as a microcosm of China's securities companies,this article probes into the current situation and problems of the investment adviser incentive,also discusses the corresponding incentive strategy from the perspective of psychological contract.The conclusion of this study not only can help the human resource management more comprehensive and objective understanding of the problems in the process of investment adviser incentive,also provides a new way of conducting investment advisory incentives from the psychological contract.At the same time,due to the representative of the problems of HFZ Company in the incentive of investment advisory,the research strategy and the constructed incentive mechanism of this article have some guidance significance to the securities firms or related financial institutions with the same management problem.