Research on the Optimization of Incentive Mechanisms for Bank Employees Under the Performance Appraisal System

Abstract

Under the impetus of digital transformation and intensifying competition in the financial industry, optimizing incentive mechanisms
for the employees of commercial banks has become the key factor to enhance competitiveness. Based on Herzberg's Two-Factor Theory,
this paper studies the optimization path of employee incentive mechanisms under performance appraisal system. It systematically analyzes
core issues in traditional performance appraisal systems and incentive mechanisms that fail to adapt to digital transformation and employees'
diversified needs. Based on this, a three-phase optimization framework from "performance appraisal restructuring" to "corporate culture
reshaping" and finally "innovative incentive portfolios" is proposed. This framework provides theoretical and practical insights to address
challenges such as "appraisal inefficiency" and "low incentive effectiveness", offering actionable strategies to boost employee motivation and
reduce turnover rates.