Investigation on rumors of collective wage reduction in banking industry: industry compensation mechanism may be adjusted

 Investigation on rumors of collective wage reduction in banking industry: industry compensation mechanism may be adjusted

Securities Daily reporter and a number of banking industry insiders found that the rumors of wage cuts are not groundless.

Dong ximiao, chief researcher of Zhaolian finance, told Securities Daily: in the future, the differentiation of operating performance of different banks will be intensified, and the pay differentiation of different positions in the same bank will be more obvious. Even if the same person has different business performance and management performance at different times, the salary may be different. The previous general pay rise may not exist.

The total salary will be affected by the profit

Recently, a reporter from Securities Daily saw a chat record in several exchange groups in the banking industry. The content of the chat said that affected by the policy, a large joint-stock bank would take the lead in reducing salary, while a large state-owned bank would follow suit, and said that the pay cut of the whole financial industry would follow suit.

A bank employee told reporters: in fact, since the epidemic, the operation of all walks of life has been impacted. Of course, the banking industry can not be alone. In particular, banks need to make profits for the real economy. The overall decline in profits this year is a big probability event, and it is expected that banks need to reduce their costs.

For this reason, the reporter of Securities Daily communicated with many bank employees and verified the authenticity of the news.

People always think that the income of banking practitioners is stable and decent, but it is not at all. My salary is already very low. If I reduce it again, I really cant accept it. Teller make complaints about the Securities Daily.

A number of people in the banking industry told reporters that even if the banking industry wants to reduce wages, it should not adopt a one size fits all approach, because the salary of the banks grass-roots employees has been irreducible.

According to the statistics of the annual reports of listed banks in 2019, the average annual salary per capita of 36 listed banks is 316000 yuan, but the salary calculation method in the annual report is the annual salary paid by each bank. The average income calculated according to the number of employees disclosed can not represent the salary level of grass-roots employees of the bank. After many investigations, the reporter found that the monthly income of grass-roots employees of some state-owned banks in first tier cities was even less than 5000 yuan after paying the five insurances and one fund. Although the salary level of some joint-stock banks is slightly higher than that of state-owned banks, most of them are less than 10000 yuan.

In fact, the rumors of wage cuts in the banking sector are not groundless.

In the detailed rules for implementation, the wage calculation formula of state-owned financial institutions is determined. It is pointed out that the increase of total wages of financial enterprises should be reasonably determined by implementing the national macro policies, serving the micro economy and the real economy, and comprehensively considering the economic benefits, labor productivity and other factors. In other words, in the future, the total wages of state-owned financial enterprises will be affected by the increase of net profits. If the increase of net profits is negative, the total wages of enterprises may be reduced.

The CBRC pointed out last month that the provisions of some institutions are not up to the standard. Even if it is calculated according to the minimum standard of 100% provision coverage at this stage, there is still a gap of more than 350 billion yuan in banking institutions. If they are evenly distributed throughout the year to make up for the provision gap, the profit growth rate of these institutions will be greatly reduced, some even negative. The next step will be to urge banks to maintain a reasonable increase in profits, make full use of profits, and effectively supplement capital. We should appropriately reduce the dividend, do not increase the bonus, use the limited profit more for capital replenishment, and improve the ability to resist risks.

In this regard, Dong ximiao analyzed that the salary determination mechanism of state-owned banks, large state-owned banks and joint-stock banks is changing. Because the state-owned financial enterprises are more closely linked to the service of the real economy with their own benefit growth and risk control. If the operating performance declines, the salary decreases; if the operating performance rises, the salary rises. The wage determination mechanism is changing, and the rumored judgment on the drastic wage reduction of the whole banking industry is not tenable.

Although it is difficult to establish a large-scale salary reduction in the banking industry as a whole, the next step is to adjust the compensation mechanism of the industry.

Dong ximiao said in an interview with the Securities Daily that there are two trends: one is the performance differentiation of different banks and the other is the increase of salary differentiation of the same bank. First, the performance differentiation of different banks will be intensified. Banks with good operating conditions may be better, and those with poor management may become worse or even have negative growth. The corresponding pay differentiation will also increase; second, the salary differentiation of different positions in the same bank will be more obvious. For example, due to the importance of financial technology, technology research and development, network finance related department positions, salary will increase, will increase incentives. However, for the positions that can be replaced by technology and with relatively low technical content, the salary will naturally decrease.

Deng Yu, a researcher at the Bank of communications and a specially appointed senior researcher of Xize Research Institute, told the Securities Daily that since then, the banking industry will more obviously determine the total wages in accordance with the principle of marketization, that is to say, the salary of employees must be linked to the overall operation. If the banks operating performance declines, the corresponding salary drop is also possible. However, the bank should not save funds in two aspects, that is, the incentive for core talents and the investment in financial technology talents, because this is one of the core competitiveness of banks.

Deng Yu further analyzed to reporters that the development of the banking industry is inseparable from the support of the real economy. The scale and profits of the banking industry are all from the prosperity of the real economy, while the costs and risks should be more measured. The traditional commercial banks are huge in scale, with numerous departments and more than millions of employees. However, most of the time, banks and financial institutions give the impression that they are bloated and inefficient. In the era of digital intelligence, the traditional banking service has gradually become a burden, too detailed division of labor, cumbersome procedures and departments, coupled with the slow process of digital transformation, the operation mode constantly consumes a lot of human and material resources, which runs counter to the light modern commercial bank management concept.

The reality is the same. The reporter found that the demand for financial science and technology talents is quite high from the school recruitment posts of various banks this year. For example, CCB Jinke released 500 posts in spring recruitment in March, and again recruited from the society on July 16, mainly covering blockchain development, cloud computing, database development, mobile application development, platform system development, software testing and development, etc. According to the information on the recruitment app, the reporter found that in some financial technology companies of large state-owned banks, the salaries of some scientific and technological talents are more than 400000 yuan. There are even many financial technology subsidiaries of banks that employ through real name certification or open poaching through headhunting companies. Some of the salaries are even as high as one million yuan.

An industry person told reporters, in the process of accelerating the layout of financial technology field, the recruitment and reserve of core talents must be the key to the development of financial technology and digital transformation of banks. Therefore, the investment of capital will only continue to increase, because this is the value of talents.

In order to reduce operating costs, banks are likely to control operating costs, optimize business processes, put more middle and back-end personnel in front, and consolidate the foundation of front-end marketing and service personnel. At the same time, it will continue to optimize the setting of business organizations, streamline the functions of departments and posts, reduce unnecessary administrative expenses, and improve the level of internal management through digital transformation, so as to solve the old problem of redundant personnel and numerous departments. For reducing the operating costs of banks, reducing salary is not the best choice. Deng Yu said.