Research On The Level Of Salary Management Of Industrial Bank

Compensation management is an important component of the modern commercial bank corporate governance structure. An appropriate compensation management system can effectively stimulate employees'work engagement to improve the business performance of banks. With the overall opening up of the financial industry and the deepening of economic restructuring, the banking industry faces competition challenges in all aspects, especially increasing"talent competition"involving financial professionals. To avoid loss of key talents, the Industrial Bank must promote the reform and optimization of the compensation management system, and accelerate the establishment of a sound compensation management system. Therefore, it is critical and practical to study the state of compensation management of the Industrial Bank. It is not only required by the effort to improve the corporate governance structure of the Industrial Bank, but also to attract, retain and motivate key talent, and enhance the core competitiveness of the enterprise in order to adapt to fierce competition in the banking industry.This paper firstly defined the concepts related to compensation management, and presented a systematic exposition of compensation management theory. Then, under the current background of the Industrial Bank, the paper analyzed the bank's compensation management in three aspects, including compensation structure, general staff compensation levels and incentives; and according to analysis on the compensation management systems of international commercial banks, the paper identified the gap between the compensation management system of the Industrial Bank and international commercial banks. Furthermore, the paper applied relevant statistical and financial methods to conduct cost-benefit analysis for compensation management of the Industrial Bank on both aggregate and average amounts, and reached conclusions such as the compensation level of the Industrial Bank should be mainly determined by the financial year revenue. On this basis, through establishing relevant statistic indicators, this article makes a comparative analysis between the Industrial Bank and domestic commercial banks on the efficiency of compensation management from compensation levels, staff competencies, unit cost efficiency. The analysis showed that the Industrial Bank compensation management efficiency was higher, but its average salary level was lower. Finally, regarding the issues found in the analyses, the paper proposed solutions to optimize the compensation management of the Industrial Bank.