The Compensation Management Of Commercial Banks Of Our Country

Compensation is one of the important parts of incentive mechanism in bank. It plays a significant role in such aspects as determining job satisfaction, motivating the staff and strengthening cohesion of the bank. Reasonable compensation system can not only inspire the staff to work actively and positively and spare no effort to struggle for the goal and raise the interests of the bank, but attract and retain a group of competitive staff with high quality under the intellectual economy which is full of hot competitions of human resources.After China became a member of WTO, plenty of foreign banks pour in and the competitions among domestic banks become more intense. With the development of the localization of staff in foreign banks and the development of domestic stock commercial banks, what all banks scrabble for is the talents of business administration. Foreign banks possess advanced management experiences and perfect management mechanism.Especially they have a set of scientific compensation system to bring encouragement into play. The salary and welfare of foreign banks which are not confined by our policy are high and are closely related with personal capability and contributions. And foreign banks also put the shot on the right foot. These are all past compare with domestic banks. Our research analysis shows the general level of the compensation management in Chinese banking system is not high. But it also indicates improvement potentiality does exist in our banking system. This paper is written for the research object with the compensation management of Chinese commercial banks, finds the weak points of the salary incentive mechanism of commercial banks of our country through the comparative study, and puts forward the suggestion of improving, thus offers the basis for salary reform of commercial banks.This paper is divided into five parts altogether, the structure and contents are as follows:First part, analyzes the research background, proposes research purpose and meaning, and then carries on relevant literature surveys, including the salary's basic conception, roles, functions, influence factors, theories, and study progress, finally summarizes the research contents, frame, approaches and innovation.Second part, analyzes the current situation of the compensation incentive of Chinese commercial banks. Firstly, the basic state of the salary system of Chinese commercial banks is that the complete fixed-wage system of the planned-economic period has already turned to the basic wage and the performance wage system progressively, but the performance salary of the listing shareholding commercial banks is relatively tall in specific gravity, and that of the state-run commercial banks is still relatively low, it is difficult to play a role in effective encouragement. Secondly, stresses the performance of state-run commercial banks under the weak salary encouragement.Third part, explains the compensation management's experience of commercial banks in developed countries, concerning commission and base pay, Scanlon plan and the bank staff's welfare plans. Then, refines the enlightenment that the salary system of European, American and Japanese banking brings us.Fourth part, analyzes the problems about salary management of state-run banks of our country. Subsequently, points out the reasons that cause the problems described above to exist, including the influence of planned economy, thought and knowledge, salary being not designed by the post, the lack of technology and staff on salary management in banks.Fifth part, offers the suggestion about improving salary management of commercial banks of our country. Firstly, summarizes reasonable respects and deficiencies of the compensation management stated in the front of paper. Secondly, analyzes the reform direction about it.The innovation herein is: The research of salary management of the banks in the past concentrated on the qualitative analysis of the state-run banks or the quantitative analysis of the listing shareholding banks. And this paper, compiling the annual reports'data of the commercial banks, compares relevant financial indexes, annual income per capita and recessive income proportion of state-run banks, the listing shareholding ones and the foreign capital ones, aiming at putting forward main problems and reasons about Chinese commercial banks'compensation management and offering the suggestions of improving them. So the analyses about the salary incentive mechanism of commercial banks of our country are overall, combining quantitative method with determing the nature. The weak point of this thesis is: Because of the particularity of banking, the present accounting information disclosure of state-run commercial banks is basically at voluntary stage. The phenomenon of alternative information disclosure exists, and the overall figure of disclosing is more difficult, so the data collected are limited, having certain influence to the result studied.