The performance salary policy reform in China’s colleges has been highly concerned for years, but sluggish progress has been made． From perspectives of Two Factor Theory, this paper analyzes the major problem in the reform: the underestimated performance salary of college teachers and the incomplete performance assessment system． Based on the analysis, the paper discusses the enlightenment of Two Factor Theory: pay close attention to teacher’s performance, remove teacher’s dissatisfaction, establish an effective performance assessment system in which hygiene factors and motivational factors will be considered, and finally apply the results of performance assessment appropriately．