Research On The Optimization Of The Remuneration System Of HJ Private Equity Investment Company

Since the 21 st century,a large number of private equity firms have emerged in China,and the rapid development of the industry has sharply increased the demand for professional talents and talent specialisation.However,most domestic private equity firms have gone through a process of brutal growth,focusing more on asset scale growth and business expansion,neglecting talent management,leading to consequences such as high staff turnover rates and unstable project teams.For private equity firms with talent as their core capital,all project operations and the realisation of benefits need to rely on specialised talent and teams.Today,the industry faces many problems such as long project investment cycles,high uncertainty of investment exit,obscure project information and difficulty in project selection,especially in the context of market fundraising,sluggish investment and poor exit,the retention or departure of professional talent will inevitably affect the long development of the whole corporate.Only by continuously optimising the compensation system can we help companies attract and retain talent,effectively stimulate the optimal performance of human resources,enhance competitiveness and achieve long-term corporate development.Now,take one of the private equity firms—HJ for the study subject.Based on the accumulated knowledge of remuneration theory,incentive effectiveness and remuneration system optimisation practice,this paper firstly explains the external environment,general overview,organisational structure,human resources situation and the current status of the existing remuneration system of HJ Company.Secondly,through in-depth interviews,research and questionnaires,current remuneration system of HJ Company was found to have problems in terms of internal fairness,external fairness,structural rationality,remuneration incentive and dynamic development.And the research analyzed the reasons from the following five aspects: mismatch in value assessment,insufficient attention,rigid management mode,lack of supporting mechanism and lack of strategic thinking.The company also proposed specific optimization strategies in terms of improving the organizational structure,conducting external market surveys on remuneration,writing job descriptions,evaluating the value of jobs,optimizing the salary structure.In addition,the company proposed specific strategies for optimising the remuneration structure,especially in terms of optimising the incentive remuneration in line with the characteristics of private equity investment companies,giving full play to the role of the remuneration management committee,building a fixed remuneration based on the post and health care,a variable remuneration highly correlated with performance assessment,reflecting humanistic care and diversified welfare.The remuneration system is a comprehensive remuneration system that includes a ladder-type bonus,Carry incentive,secondary market investment of own funds,regular customer maintenance and other incentive policies in line with the characteristics of the industry.Finally,in order to guarantee the smooth implementation of the remuneration system design,measures such as strengthening the company’s organizational guarantee,improving the remuneration communication and feedback mechanism,enhancing dynamic strategic thinking,strengthening the construction of corporate culture are proposed.This paper argues that a scientific remuneration system has become a powerful weapon to attract and retain outstanding talent,especially in the private equity industry,where employees are generally of high quality and professionalism,with particularly rich academic backgrounds and large competitive advantages in the market,and companies need to build a remuneration system that can both stabilise and motivate people.Currently,the research on the remuneration system of the private equity firms is limited.This paper aims to optimise remuneration system of HJ Company,not only to improve the incentive effect of remuneration system of HJ Company and help the company attract and retain more talent,but also to promote more scholars to join the research on the remuneration management of the private equity industry.The research will be a reference in terms of the remuneration management research for companies of the same type in the same industry.