Theoretical Frameworks for Human Resource Management in Securities Companies

A first-class workforce must be matched with first-class human resource management. The improvement of human resource management depends not only on innovation in approaches and techniques, but also, more importantly, on a fundamental change of management concepts. Based on the industrial characteristics of securities companies, their human resource management work needs to build a management system characterized by "one system, two strategies, three levels, four bodies, and five mechanisms," as detailed below:

One system: This refers to the information communication system. It is the artery of an organizational body and a potential business expansion cradle in a securities company. Effective information communication is an important block for the building of team spirit and corporate culture. The information communication system can build horizontal and vertical connection channels that are orderly and interactive. Based on these channels, the company may, in a timely manner, inform the employees about the company's goals for future development, current operational situation, and existing weak links. Lower-ranking departments and employees can give their feedback to the decision makers of the company or relevant departments, including their suggestions and difficulties facing them. Information is no longer proprietary. Given certain channels, even a layman is able to obtain certain information ahead of others. This is particularly true in securities companies. Therefore, through the establishment of sound and institutionalized information communication channels and information gathering and sharing incentive mechanisms, it is possible to take full advantage of each employee's information gathering channels for the purpose of improving the company's profits.

- Two strategies: The term two strategies refers to the development strategy and human resource strategy of the company. Actually, there is an affiliation relationship between the two strategies. The latter is an important part of the former, while the former provides the basis and specifies the final goals for the latter. In the next few years, the Chinese securities industry will enter a critical stage in its evolution. Every securities company will have to formulate its own development strategy for the future based on its own conditions and position itself properly in the future market. Accordingly, human resource management departments should also formulate human resource strategies that are foresighted and practical, so that they can adjust ahead of time the knowledge structure of employees, optimize the set-up in various departments, forecast human resource demand, reserve professional talents, and build up the company's core competitive strength with a head start.

- Three levels: A sound and effective human resources management system should center on the human resources strategic planning. Work should be carried out on three levels: fundamental work, institutional construction, and culture management. Of them, work at the fundamental level is the basis of human resources management. It includes administrative routines such as work analysis and management of labor insurance, social insurance, and various provident funds. Institutional construction mainly includes external recruitment mechanisms, performance assessment mechanisms, employee training mechanisms, incentive mechanisms, and competition mechanisms. Work in these fields is the most important component of the human resource management system, and also the indicator of the management quality of an enterprise. Culture management reflects the highest level management art of an enterprise. Corporate culture is the sum of a series of codes of conduct that embodies a value system formed in the internal and external environments of an enterprise. By building a vigorous, positive, and enterprising corporate culture, efforts by different employees and departments can be integrated to form a set of evaluation and judgment standards that is conducive to the development of the company and that cause the employees to work hard and be willing to thrive and fail together with the company.

Four bodies: In securities companies, human resources management is carried out by four different groups: the leadership of the company, heads of departments, human resource management personnel, and individual employees. The leaders of the company are the commanders-in-chief in human resource management. They lead the securities company into human resource management reforms, advocate the creation and evolution of corporate culture, and get personally involved in the process. In practice, human resource management affects the interests of every employee. Without strong support and oversight from the top leaders, positive changes in human resources management can hardly come to fruition. Department heads and the human resources management department form the main body that conducts human resource management. Of these two groups, department heads should gradually assume the leading role, as the function of the human resource department becomes a supportive role. Employees are at the center of human resource management. They are active participants of human resource management work. Because employees of securities companies are high-caliber talents working highly decentralized and individualized jobs, human resource management in securities companies should make a greater effort to guide the employees to engage in self-training, self-development, self-encouragement, and self-management. - Five mechanisms: These are the five most important mechanisms among various aspects of human resource management: the external recruitment mechanism, the performance assessment mechanism, the development and training mechanism, the incentive mechanism, and the competition mechanism. Talent is the core competitive strength of a securities company. But how to identify the best among a large number of high-quality applicants is an important topic for human resource management departments. Development training is an important means to improve the human resource content and realized sustainable development of the company in keeping with the regenerative and proliferating properties of talents. A high-caliber staff is usually characterized by self-awareness and spontaneity. The contents and approaches of training should be adjusted accordingly. For example, the training approach may shift from spoon-feeding-style lecture sessions to explorative research sessions.

Performance assessment is the foundation for the manifestation, retention, and improvement of talent value, and the basis for the compensation system, employee promotion, and training. Performance assessment in securities companies should be managed at a series of separate levels and carried out on a regular basis. The items assessed should be specific. The inventive mechanism is an important means to improve employee engagement. In principle, incentive measures in securities companies should be implemented on the corporate and department levels. At the corporate level, the human resource management department should head the formulation of inventive mechanisms, and heads of departments should provide incentives for employees in their respective departments in a timely and moderate manner. Competition is the key note of the corporate culture of a securities company. The competition mechanism is the fundamental guarantee for the optimization of personnel structure, the improvement of employee quality, and the activation of human resource deposit. In practice, the human resource management department may adopt various measures such as competition for positions, unconventional promotions, job rotation, and appropriate dismissal in order to boost employee morale and promote the fast development of the company.

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