The Analysis of China’s State-owned Commercial Banks Compensation System
|School||Northeast Normal University|
|Keywords||Salary Incentives State-owned commercial bank|
Salary is probably the most important and most practical way of incentives in a variety of bank’s benefit package system. To bank employees, salary not only reflects their own labor value, but also, to some extent, represents personal status in society. Meanwhile, it is also a direct way to reflect company’s assessment of its employees. Consequently, not only does the system of benefit package determine the employee satisfaction from their work, it also has an important influence on the enthusiasm of staff and their loyalty to the bank at the same time.In the twenty-first century, especially after China’s accession to WTO, China’s financial market has been gradually opening up with more powerful overseas counterparts coming. As a result, the competition to secure more talents has become fiercer. A reasonable salary package will play a significant role in securing a pool of well-qualified bank talents. Furthermore, it also indirectly sharpens banks’ competitiveness, and ensure bank’s sustainable development in the context of heating competition of today’s market.Benefit package system has become increasingly important to the development of bank. Reasonable salary package can not only improve employees’initiative and nurture their sense of belonging to banks, but also helps to ensure the healthy and stable development of banks. Without a sound or well-operated benefit package system, the development of the bank will be stopped. Not only the staff will lose their sense of belonging to banks, internal efficiency will also be affected, as a result of which banks will lose its talent. Considering the fact that traditional benefit package system fails to meet the current needs of talents in the context of changeable market, it has become a difficult problem for the bank to build a effective and rational benefit package system.To meet the demand of productivity in today’s society and economic environment, various researches has been conducted on benefit package systems including the design of broadband pay, comprehensive self-pay system and pay system. With China’s rapid economic development, the overall effect of benefit package system applied in state-owned banks is rather limited after several trials. To be specific, many measures have not fundamentally solved the inherent problems. According to the analysis of the reasons, it should be mainly attributed to the fact that the reform strategy and methodology fail to reflect China’s overall economic growth. Therefore, we should learn from both overseas and domestic benefit package management methods, which is both meaningful and important.After research, many problems are found in the salaries of management of state-owned commercial banks. Benefit package system doesn’t help to improve work efficiency or financial income, which has a huge potential to be unleash in the future reform and development of benefit package system. Based on the comparison of the researches of banks’ benefit package system in various countries, this article finds a way of improvement in this regard. It summarizes actual practice and relevant theories and also provides some practical proposal so as to improve state-owned bank’s salary package system.