On Compensation Incentives For Customer Manager Of S Sub-Branch Of State-Owned Commercial Bank

In terms of bank management, human resources management is the source for bank’s competitive edge. Salary system, however, the most important role in human resources management, constitutes the core of bank management, so to speak. As China’s financial industry opens to the outside world, the bank competition is increasingly fierce, resulting in ever-intense scrambling for core talented people. Thus, to attract and retain key talents becomes the objective of salary system.With the conversion of management idea of bank as well as the application of customer manager system in China’s commercial banks, customer managers plays a more and more important role for the development of the commercial banks. Modern commercial banks mostly adopt a customer-centered marketing concept. A big, high-quality customer group becomes the basis for their development and competitiveness. The main responsibility of customer managers is providing financial services. They are required to center round customers, improve service quality, tap customer potential and expand customer resources to promote banking business. That’s why they create most of the bank value.As state-owned commercial banks face increasingly intense competition and operational pressure, senior managers attach greater importance to the operational outcome rather than the management, resulting in a kind of customer manager compensation incentives whose focus is extrinsic salary rather than intrinsic salary. At the same time, evaluation system for performance-related pay, an important part of extrinsic salary, also has room for improvement. For China’s banking industry featured by many knowledge staffs, it is worth thinking about building a sound evaluation system for extrinsic salary, which aims at improving team spirit, staff enthusiasm and according the goal of customer manager with orientation of bank development; in the meantime, intrinsic salary should meet the demand of customer manager so as to generate the senses of honor, accomplishment and responsibility. In this way, they will be more loyal to the bank. This is worth meditation for commercial bank managers when they are building and improving compensation incentives for customer manager.On the basis of above-mentioned ideas, this thesis, by employing remuneration theories, is to analyze compensation incentives for customer manager of commercial bank with the example of the financial institution where the author works.This thesis firstly proposes the importance of studying compensation incentives for customer managers and elaborates on main concepts and theories concerning salary management with particular emphasis on composition and function of customer manager salary of commercial bank. Next, in line with concepts and theories of salary management, it analyzes the present situation of customer manager compensation incentives with the example of S Sub-branch of state-owned commercial bank, trying to find its merits and flaws theoretically. On this basis, in view of the imperfections, it introduces advanced experiences of commercial banks of both home and abroad and summarizes them. Lastly, applying the remuneration theories and advanced experiences, it proposes countermeasures in line with the compensation incentives of S Sub-branch bank, hoping that the application of similar customer manager compensation incentives similar to that of S Sub-branch will shed some light upon state-owned commercial banks when they make reforms in this aspect.