Xiamen Airlines: Pay for Performance
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?
Collection: Ivey Business School (Canada)
Ref: IVEY-9B15C001-E
Format: PDF
Number of pages: 16
Publication Date: May 26, 2015
Language: English
Review date: May 19, 2015
What material is included in this case:
Description
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?
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Year: 2014
Geographic Setting: China
Industry Setting: Transportation and Warehousing;
Learning Objective
·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.
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