BOC (Hong Kong) switches to merit system

Bank of China (Hong Kong) has advised its 13,000 employees it would measure staff performance instead of tenure in awarding pay and promotions from now on, according to the South China Morning Post. The report quoted one bank source saying it was possible for a recently hired MBA to earn less than a long-service driver. Under the reward scheme, salary grades will reportedly match specific jobs and qualifications. Staff considered underpaid under the new system of job categories will reportedly be awarded pay increases, while staff judged overpaid could face salary freezes or redeployment in lower job classifications. The Post reported that some observers suspect the dropping of the �iron rice bowl� HR policy could lead to massive layoffs.