Strategy-oriented Compensation Mode Design And Evaluation Of PICC P&C Harbin Branch

Insurance is a financial compensation system, which insures the growth anddevelopment of market economy. With the reform and opening policies goingfurther, the economic development in our country has entered a new phase inwhich the increase of quantity is no longer the only purpose, but theimprovement of quality has become the main focus. The adjustment of economicand social development leads to a structural change in insurance, which isdeveloping in the direction appropriate to the economic and social developmentin China as well as the production and living needs of the public, thus acustomer-centered mode becoming the new developing trend. PICC P&C Harbinbranch, as the leading enterprise of local insurance industry, sets up ourdevelopment strategic target as “holding to benefits first, persisting in makingmarket as a benchmark and accelerating the development of a customer-centeredmode”. Salesmen, as a bond between the company and the customers, undertakethe commitment and service of the company to customers, serve as an engine ofthe development of the company, as an important object to focus on andencourage during the phase of transition and development of the company.Therefore, in order to achieve the strategic target of the company, it is of greatsignificance to focus on the compensation incentive of salesmen.Aiming to achieve the following five years’ strategic target of PICC P&CHarbin branch, based on the related documents and research findings of thecompensation theory and mode, and using way of qualitative analysis, this paperconfirms the compensation strategic target of “customers’ value differentiation,salesmen specialization, organization system standardization, incentivemechanism as a long-term phenomenon, and labor cost explicitation”. Thesalesmen are divided into three different types according to the different condition and nature of the work, namely the group insurance customer manager,the intermediary maintenance commissioner, and the personal insurance customermanager. According to the principle of customer orientation, effective incentive,relatively uniform, differential allocation and legal operation, the idea has alsobeen put forward that the compensation structure should consist of the followingsix modules: basic compensation, performance compensation, behaviorcompensation, competence compensation, speciality compensation; by usinganalytic hierarchy process, the weight of every module in the wholecompensation has been determined, thus forming a strategy-orientedcompensation mode of various salesmen, as well as explaining and illustratingthe expression of every compensation mode. By using the method ofcomprehensive interview, expert investigation, and qualitative analysis, aconclusion has been reached that the compensation mode has a strategy-orientedfunction, and some guarantee measures for applying such mode in a better wayhave also come up in the paper.