Nowadays, China's market economy is developing continuously. For many state-owned enterprises, although the corresponding incentive system has been constructed, it has not achieved remarkable results in actual use. At present, as far as China is concerned, all kinds of problems caused by unreasonable incentive mechanism have great influence on the development of state-owned enterprises. Starting from the current situation of the incentive mechanism of state-owned enterprises, this paper discusses the problems faced by the state-owned enterprises in the incentive mechanism, and puts forward relevant countermeasures to achieve the goal of stimulating the working motivation and effective incentive of employees.