Research On Salary Incentive For Life Insurance Marketing Staff In China Based On Equity Theory

As competition in the life insurance market is getting more and more fierce, stable marketing team and quality sales service are mainly influencing the core competencies of life insurance companies.Nowadays,China life insurance companies are facing two serious problems.One is higher turnover rate of marketing team,the other is worse sales service.Salary incentive effect is not apparent than before.Therefore,study on life insurance marketing staff’s salary incentive is particularly important in this situation.Firstly,the concept of salary incentive is defined in this thesis.Based on equity theory,the author introduce how to evaluate salary incentive effect to three aspects which are external,intermal,and individual equity.Besides that the author evaluate life insurance marketing staff’s salary incentive effect. Secondly,using data sample which is got from questionnaires,the author make an empirical study on salary incentive of life insurance marketing staff in some life insurance company from aspects of external,intermal,and individual equity.Then equity factors’ weight on salary incentive level and influencing factors contained in equity factors are got.Finally,on the basis of the above,combined with life insurance company’s development status, the author propose some suggestions to perfect salary incentive.In the long term, the change in the marketing system is the fundamental way to solve life insurance marketing staff’s invalid salary incentive.In the short term, we should take measures to improve the effectiveness of salary incentive.Firstly,it will be favorable to improve external competitiveness that commission rate is increased and tax is reduced. Secondly,it will be useful to strengthen intermal consistency that fixed salary is added. Thirdly, sales quality index should be contacted with commission to realize individual equity.