Xiamen Airlines: Pay for Performance
(10 pages of text)
On June 6, 2014, the deputy general manager of the human resources department of Xiamen Airlines, based in Xiamen, Fujian Province, China, discussed his company’s best practices at China's first national forum on aviation security. Since 2009, a significant reform in the company’s pilot compensation system had aimed to promote a stronger linkage between their pay and performance. Initial outcomes had been positive, with improved productivity and job satisfaction. Yet, there were ongoing challenges in recruiting and retaining pilots due to increasing shortages of qualified personnel in the domestic and global aviation labour market and greater competition from both state-owned and new private airline companies in China. How could Xiamen Airlines become an employer of choice? Was the high compensation sustainable if the industry became less profitable? What else could the company offer to retain talented pilots?
- To assess both the internal and external factors that an organization takes into consideration when designing employee compensation.
- To evaluate the choices of different compensation strategies to improve employee motivation and satisfaction besides monetary incentives.
Transportation and Warehousing
China, Large, 2014
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