Evaluation And Optimization Of The Compensation System Of SW Securities Company

During the period of the 12th five-year plan, the economic reform has put forward many new requirements for the diversified, multi-layer, and multi-functional development of capital market. The capital market faces new challenges in terms of integration of existing resources and innovation of incremental functions as well as in market width and depth. The securities firms are in urgent need of setting up a compatible, scientific and workable remuneration management system.SW is the earliest-found shareholding securities company in China. The company has developed into a large-sized full-service securities company with more than 4000 employees and paid-in capital of RMB6.7 billion yuan. It has several controlled subsidiaries and one listed company in Hong Kong.Now SW believes building up talent pool is a critical factor, Nevertheless, establishing an optimal remuneration management system which is compatible with market development is the most important.Facing the status quo of SW’s urgent need to set up an optimal remuneration management system, we start to evaluate and optimize SW’s remuneration management system. Based on consolidated theoretic foundation and deep understanding of current condition of SW’s operation, we have conducted a dimensional SWOT analysis for SW’s operation and research and evaluation of SW’s remuneration system. Through the massive collection of HR information, Q&A survey, interviews and investigation & research of current conditions and remuneration management problems faced by SW, we have dimensionally evaluated its remuneration management through three perspectives.1. We have evaluated the effectiveness of the company’s remuneration strategy by adopting "six elements" model of remuneration composition,, remuneration positioning, remuneration fairness, floating remuneration, remuneration adjustment and remuneration implementation. 2. We have evaluated the effectiveness remuneration welfare cost per person, proportion of manpower cost in operating revenue.3. We have evaluated the effectiveness of remuneration system through their external competitiveness of total incomes with fixed salary and cash. Through the previous deep investigation to SW’s remuneration management system and full-dimension evaluation with three perspectives, we found the advantages and problems faced by SW in its remuneration management system. Finally, by using remuneration management theory, we proposed our detailed optimization measures and steps in light of optimal remuneration system and strategy for SW.These optimization measures and steps aimed at SW’s remuneration system in order to solve the problems faced by SW in this aspect and to establish a set optimal remuneration management system which is compatible with market development and SW’s operations have strong guiding significance and enable the company to develop in a faster and healthy manner.