Research On Loan Officer’s Compensation Issues In Microcredit Company

Microcredit is part of the financial industry and is important to the business development of entrepreneurs.This article starts the analysis with the definition and history of Microcredit,then studies the problems that Microcredit Company faced during the development process.Microcredit is originated in the 1970 of 20 th century.The famous economist Professor Muhammad Yunus commenced the pilot of Microcredit loan.Since its introduction into China in 1994,after more than 20 years of development,China’s microcredit company has developed from scratch into the golden period.Currently,the Chinese Government attaches great importance to “the three rural issues”,which further promotes the development of Microcredit Companies in China.The poverty alleviation nature of Microcredit results s in “the double bottom line” of Microcredit Companies,which are the social performance and the financial performance.The sustainable development of Microcredit Company has become one of the main goals of Microcredit Company.Based on the clear understanding of the development goal of Microcredit Companies,this article further analyzes the importance of Human Resource Management role.Human Resource Management is a strategic resource for any organizations.It is one of the key factors for Microcredit Company to achieve its sustainable development goal.In Microcredit area,there are two main resources to rely on: Capital and Human Resource.Capital has been continuously paid attention by Microcredit companies in China.Nevertheless,despite importance of Capital,it’s merely a tool for people to use.Capital on its own cannot manage itself,only people can manage it.It is proven that Human Resource Management can help organization to improve their competitiveness,achieve social and economic benefits and contribute to employees working enthusiasm and satisfaction.Only when each employee realizes career success,can an organization eventually accomplish its aims and objectives.Each employee’s success ultimately will translate into the success of Microcredit institutions.One of the key factors to motivate employees to work hard and achieve the Company’s goal is effective compensation management and incentive system.Effective compensation management and incentive system can help to attract,retain,motivate employees and improve their performance and institution’s capacity for sustainable development,as well as to create a good culture.From the standpoint of cost budget management,effective compensation management can also help to control the labor cost at a reasonable range,which will significantly contribute to the sustainable development of Microcredit Companies.Under this precondition,this article will focus on the study of Loan Officer’s compensation problems and propose suggestions on Loan Officers’ compensation system pattern design.The research results of this article mainly include: firstly,it highlights the necessary and importance of establishing Loan Officer’s compensation system;secondly,it reveals the principles of designing Loan Officer’s compensation system;thirdly,it demonstrates the working procedures of compensation system pattern and corresponding solutions.It also raises a Loan Officer’s compensation system as an example,which includes the base salary system and variable salary system.