| Summary: | Abstract
Purpose: With the changing environment, performance-related pay (PRP) has become an increasingly popular management tool to motivate and retain employee due to its strong incentive. However, it has been argued that the topic has not been researched sufficiently and there are also some detrimental effects of PRP. There remain gaps in knowledge within the academic literature about clarity of definitions and true evidence of positive outcomes. This study aims to examine the experiences of the introduction of PRP in the China Minsheng Bank in order to provide a perspective about how to motivate and retain the employees.
Design/methodology/approach: The research uses interview to collect data. One-to-one semi-structured internet interviews took place with 15 employees from both higher-level and lower-level in the China Minsheng Bank. And the thematic analysis is used in this study.
Findings: It is shown that – in accordance with the literature- Chinese employees enjoy the PRP system and the PRP system has a more positive impact on the employee motivation and retention. However, the PRP system also has some problems of higher pressure, fairness, dissatisfaction and jealousy. Besides, some non-financial incentives may also play a significant role on employees’ behaviour, especially in relation to employee retention.
Research limitation/implications: One of limitation of this research is that it only covers the China Minsheng Bank and its employees. Another limitation is that it does not use the mixed research method due to shortage of time. This research may provide insights to the company and HR managers to motivate and retain employees.
Keywords: Performance-related pay, Motivation, Retention, Non-financial rewards, Banking and financial sector organisations, China
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