| As a knowledge-intensive financial firm that operates light asset,private equity firm relies its core competitiveness on the support of its professional fund team with talents and experience.For all private equity firms,professional,versatile and administrative fund investment managers,industry researchers and other staff in specific fields are of vital importance.TR Private Equity Firm(hereinafter referred to as "TR Firm")is a privately-owned company that is qualified to manage equity and securities investment.Currently,TR Firm requires a salary incentive system that can ensure equity for its employees and have a competitive edge in attracting talents,so it faces problems such as lack of motivation and high outflow rate among its core professional talents.Therefore,it is an urgent task for TR Firm to design and optimize a compensation incentive system in line with its strategic development goals and characteristics of its professionals.The research theme of this paper is the optimization of the salary incentive scheme for professionals in TR Firm.First,through reviewing literature related to salary management,based on the development trend of private equity industry in China,this paper comprehensively analyzes the current salary incentive scheme of the firm.By methods such as internal and external questionnaire and interview,it reveals that the firm’s salary incentive scheme has the following problems: the urgency of improving salary system,lack of competitiveness in salary level,unbalanced salary structure,and inequity in implementation of salary system.In accordance with the analysis,it finds the main reasons for the above-mentioned problems,including the gap between salary management ability and development process,less attention paid to the strategic planning for salary system,poor understanding of the need for motivating professionals,and extensive performance assessment.Following the principle of salary incentive optimization,through using the “4P” positioning method and post value assessment method,this paper improves the existing organizational structure,evaluates the post value of professionals,and puts forward the following improvement measures for salary incentive scheme: designing salary model and formulating overall salary strategy,salary level positioning,adjusting salary structure,and setting up the dynamic adjustment mechanism for salary and for stock incentive plan.Finally,it also puts forward related steps and supporting measures to ensure the successful implementation of salary incentive improvement scheme.TR Firm has the basic characteristics of small and developed private equity firm,so it is hoped that this paper will not only help TR Firm to optimize its salary system,but also provide significant references for other private equity firms of the same kind in resolving similar problems. |
