Keywords: wages and benefits; Migrant workers; Enterprise risk
Many labor-intensive enterprises are facing the problem of insufficient recruitment. In order to recruit workers, enterprises have improved the welfare level of employees and the employment environment, which greatly increased the cost of enterprises in the short term. However, from the perspective of enterprise risk management, improving the treatment of migrant workers brings certain cost pressure to enterprises, but avoids the risks brought by low wages, such as inertia of enterprise strategic transfer, trade barriers, legal disputes, shortage of migrant workers, turnover rate of senior employees, etc. Moreover, the improvement of employees' treatment can also enhance employees' labor enthusiasm and production efficiency, and does not necessarily increase the cost of enterprises. From the perspective of enterprise risk management, using enterprise risk management tools, this paper analyzes the enterprise risk changes brought by improving the welfare benefits of migrant workers, and discusses how enterprises can deal with the risks brought by low welfare benefits with proactive risk management strategies.
First, the status quo of wages and benefits of migrant workers
In 2006, the Survey Report on the Quality of Life of Urban Migrant Workers released by the National Bureau of Statistics showed that the protection of migrant workers' rights and interests was low: there were mainly problems such as low wages, low contract signing rate, poor working conditions and insufficient protection measures, long working hours, high labor intensity and less participation in social insurance.
(A) low remuneration for work
Nearly 40% of migrant workers have not signed any labor contract or agreement with their units, half of them can't get overtime allowance, 57% can't get compensation for work-related injuries, nearly 80% can't get paid vacation, more than 90% can't enjoy housing subsidies and housing accumulation fund, and 80% of female workers can't enjoy paid maternity leave system.
(B) labor protection measures are not strict
According to the survey, 5 1.47% of migrant workers report that the safety measures at their jobs are not strict enough. 13.86% of migrant workers reported that their employers (or employers) failed to provide necessary protective measures.
(3) Long working hours
The survey shows that the average daily working hours and weekly working hours of migrant workers are longer than those employed in urban units. Among them, 1 1.79% of migrant workers work more than 12 hours, but only 49.87% of migrant workers can get overtime pay. On average, migrant workers work 6.29 days a week and 8.93 hours a day.
Low social insurance participation rate
The survey shows that 74.8 1% of the migrant workers did not participate in any insurance, among which 73.37%, 73.77%, 84.65% and 67.46% did not participate in basic old-age insurance, medical insurance, unemployment insurance and work injury insurance.
To sum up, it can be seen that the wages of migrant workers are at a low level, and the welfare policies of employees in labor-intensive enterprises (especially migrant workers in the production line) are still seriously inadequate and need to be further improved.
Second, the basic concept of enterprise risk management
Enterprise risk refers to the internal and external factors that adversely affect the normal operation of enterprises; Enterprise risk management is a process of analyzing the source of risk, dividing it according to the probability of risk occurrence and the severity of loss caused when it occurs, and putting forward risk coping strategies and control procedures according to different risk types. Enterprise risk coping strategies mainly include: accepting risks, transferring risks, exiting strategies (strategic transfer) and setting preventive measures (including establishing risk reporting and control systems).
Third, enterprise risks are related to low wages and welfare levels.
(A) strategic risks of enterprises
With the development of economy, the increase of labor costs forces enterprises to rely on technological transformation, employee training and employee welfare to improve labor productivity and reduce costs. This will make enterprises turn to the strategic shift of technological innovation and industrial upgrading; On the contrary, with the development of economy, enterprises will be forced to move to places with lower labor costs and lose strategic transfer opportunities for technological transformation and innovation and industrial upgrading.
(B) Labor barriers to trade
SA8000 International Standard for Social Responsibility was initiated by the American-based International Standard for Social Responsibility 8000 1997 and formulated by international organizations such as European and American multinational corporations. It consists of nine elements: salary, prohibition of child labor, labor intensity, production conditions, working hours and training. Faced with the impact of a large number of cheap goods from China, European and American countries began to require China enterprises with SA8000. Without SA8000 certification, enterprises will not be able to obtain foreign orders. It can be seen that low employee welfare benefits will make enterprises face the risk of labor trade barriers.
(3) government intervention
China's "Labor Law" has strict regulations on employees' wages and benefits, labor security and working environment, and the government has paid more and more attention to the protection of migrant workers' rights and interests. If enterprises ignore the wages of migrant workers, they will not improve the working environment and production conditions, shorten working hours and reduce labor intensity; Will face the risk of investigation and intervention by government departments.
(4) Industrial accident risk
Due to poor working conditions, high labor intensity and long time, many migrant workers are in a sub-health state; Moreover, enterprises lack safety education and training, and industrial accidents occur frequently. When enterprises fail to sign contracts with employees, industrial accidents will stimulate labor-capital conflicts, and enterprises will face the risk of legal proceedings and pay a lot of compensation.
(E) the risk of attracting talents and high turnover rate
Low wages will make it difficult for enterprises to attract talents and face high-level employee turnover rate, especially skilled workers and skilled workers; The shortage of migrant workers is a typical example. According to statistics, the turnover rate of front-line employees in Shenzhen is 10%, and the textile and toy industries are as high as 20%-30%, which makes the human resources department of enterprises often in the recruitment state. Through the analysis of enterprise risks caused by low wages and benefits, we can find that we should formulate wage and welfare policies from the perspective of risk management, formulate wage and welfare policies according to different risks, make overall plans for medium and long-term wage and welfare policies of enterprises, control reasonable promotion range according to the principle of cost-effectiveness, and gradually improve the wage and welfare level of employees. Of course, when implementing this strategy, enterprises should consider setting up a committee composed of senior management, human resources department, workshop supervisor and employee representatives to take charge of the risks of the existing wage and welfare policies of enterprises, and formulate and adjust the wage and welfare strategies of enterprises according to the changes in the internal and external environment of enterprises; And the Committee authorized the internal audit and human resources departments to jointly implement it; Form relevant risk reporting, evaluation, review and control procedures, so that the wage and welfare policies of enterprises and the risks faced by enterprises can be effectively coordinated and controlled.