Case study of employee incentive mechanism

Case study of employee incentive mechanism

At the beginning of development, many enterprises in our country generally put the pursuit of corporate profits in the first place, and put human resource management in a secondary position, with insufficient attention. However, when the quality of personnel becomes an important driving force for the development of enterprises, it is found that there are many problems that do not match the growth of employees and enterprises, which hinder the development of enterprises. Today, I have compiled a case of employee incentive mechanism for everyone. Friends in need can have a look!

On August 27-28, 20 16, the summit forum of the top 500 Chinese enterprises was held in Changsha, and the entrepreneurs' associations of china enterprise confederation and China released it to the public for the fifth time in a row? Top 500 Chinese enterprises? List. In this list, Wahaha Group ranks 27 1 with revenue of 49.475 billion.

Zong, chairman of Wahaha Group, also appeared at the forum, wearing short-sleeved shirts and leather sandals, patiently answering every reporter's questions and agreeing to every participant's photo request. At the forum, Zong made two speeches and talked about many key topics. The main points are as follows:

1. Talk about the general trend: The world economic crisis is far from over and may even get worse. China's economy has been driven by exports and investment for a long time, and the downward pressure is also great. For example, the annual growth rate of the beverage industry has dropped from more than 20% to single digits, from 5.8% last year to only 2.8% in the first half of this year.

2. Talking about product innovation: Not only Wahaha, but also many large enterprises in the beverage industry are losing their innovation ability. Without innovation, they can't meet the growing consumer demand. The beverage industry still has great innovation potential, and large enterprises should bear the main responsibility of innovation, development, transformation and upgrading.

3. Talk about enterprise transformation: On the basis of becoming a "beverage production enterprise", Wahaha is constantly striving to become a "beverage production enterprise", that is, to develop into a high-end intelligent equipment manufacturing industry.

4. Talk about employee motivation: give employees a raise every year and care about their family life. We have been helping employees solve the housing problem. Second, the problem of children studying and the problem of children seeing a doctor.

The following is the full text of the speech, welcome to read:

Leaders, entrepreneurs and friends, it is a great honor to participate in this forum of top 500 enterprises. I was really inspired by the wonderful speeches made by leaders and entrepreneurs just now. Next, I would like to take the liberty to talk about my views on the development of large enterprises at present, and please criticize and correct me.

In my opinion, the world economic crisis is far from over, and it may even get worse, because governments all over the world have no practical economic development policies, and they just print a lot of money.

Europe's high welfare and high tax policies make people unwilling to work and eat the same pot; Under the virtual economy with high debt in the United States, employment is also difficult to solve. Under the current world economic and trade pattern represented by WTO, developed countries have more resources and wealth, but less wealth is created, and wealth is mainly created by hundreds of millions of people in developing countries. Now developed countries have problems, they can't afford to spend, and developing countries are unlucky.

China's economy has been driven by exports and investment for a long time, so it has been severely impacted by the world economic crisis, and the downward pressure is also great. For example, our beverage industry used to grow by more than 20% every year, but in recent years, the growth rate has dropped to single digits, 5.8% last year and only 2.8% in the first half of this year. Although Wahaha industry is still the first, there is also negative growth.

Therefore, for Wahaha and many other large enterprises in all walks of life, how to achieve sustained and healthy development in the current complex economic environment is indeed an urgent problem to be solved. In fact, since the 18th National Congress of the Communist Party of China, the Central Committee has clearly pointed out the direction for us, that is, to firmly establish the development concept of innovation, coordination, green, openness and enjoyment, change the mode of economic growth, deepen the structural reform on the supply side, and accelerate the pace of economic transformation and upgrading. To implement the strategic deployment of the central government, we must firmly grasp the two key points of innovation and transformation for the majority of enterprises, especially large enterprises. In recent years, Wahaha has done the following work in innovation, development, transformation and upgrading.

Product innovation: The beverage industry still has great innovation potential.

Innovation is the soul of an enterprise and the most effective way for an enterprise to remain invincible in the fierce market competition. Since Wahaha started its business, it has been able to grow rapidly and maintain its leading position in the industry for a long time. One of the important reasons is that we have been pursuing it? Small step run? Strategy, always half a step ahead of competitors, relying on continuous innovation to maintain competitive advantage.

But in recent years, I feel that not only Wahaha, but also many large enterprises in the beverage industry are losing their innovation ability. Without innovation, they cannot meet the growing consumer demand. In the past, people's living standards were low and the economy was in short supply. As long as they can quench their thirst and taste good, they won't worry about selling drinks. Now that the standard of living has improved, there are more choices, all kinds of food? Rich disease? It is also becoming more and more common. Consumers are becoming more and more picky about food and drinks. They no longer just drink to quench their thirst, but pay more attention to health, taste and culture. However, many beverage companies have not made innovations in the past few years to satisfy consumers, and consumers do not buy their products.

In fact, I think the beverage industry still has great innovation potential, such as a large number of new resource foods with health care functions at home and abroad, such as traditional Chinese medicine in China? Medicine and food are homologous? Theory provides us with a huge space for innovation and development. At present, our large beverage enterprises have abundant human and financial resources, and are fully capable of developing innovative products with high scientific and technological content and high added value by using modern bioengineering technology and strain technology, and are fully capable of doing more work in implementing supply-side reform, leading consumers and creating new demands.

Although with the continuous development of the beverage industry, there are many kinds of products, it is indeed more difficult to innovate products now than before, but we always insist on continuous investment in product innovation. In the past two years, we have been focusing on developing cheese and yogurt products. We all know that cheese condenses the essence of milk, but people in China often can't adapt to the taste of cheese. Therefore, we selected New Zealand milk source, European cheese and lactic acid bacteria to produce a yogurt product with rich nutrition and unique flavor through constant temperature fermentation, which was widely praised by consumers. Moreover, due to its unique technology and high technology content, it is difficult for others to follow suit, and the product profit rate is also relatively high. Therefore, I think large enterprises have strong support. Only by carefully analyzing consumer demand, they still have great advantages in innovation, which can achieve a win-win situation for consumers and enterprises and greatly promote the development of the industry.

Enterprise transformation: an enterprise that produces both beverages and beverages.

Now we are all advocating "innovation for all". It is true that large enterprises should innovate, and so should small enterprises. Some small enterprises have done a good job in innovation and may have subversive results. However, I believe that large enterprises should still bear the main responsibility of innovation, development, transformation and upgrading.

Because innovation and transformation are always accompanied by risks, whether it is technology research and development or market development, if innovation fails, not only high investment will be wasted, but even the survival of enterprises will be affected. Therefore, it is really difficult for small enterprises to innovate, transform and upgrade on their own, while large enterprises have strong strength and strong anti-risk ability and can withstand failure. Therefore, I have always believed that it is necessary to encourage countries to innovate spontaneously and advocate organized innovation, and form a model of "government organization and coordination, scientific research institutions engage in basic research, large enterprises engage in applied innovation research, and small enterprises provide supporting services for large enterprises". Different roles play their respective roles and give full play to their respective advantages, so as to maximize the overall interests. Moreover, innovation is not only the innovation of products and technologies, not only the innovation of scientific and technological personnel in enterprises, but also the all-round and all-round innovation.

Wahaha, as one of the big enterprises in the beverage industry, has never stopped exploring transformation and upgrading. We have long been members of the Ministry of Industry and Information Technology and Zhejiang Province? Integration of industrialization and modernization? In the pilot unit, through the use of Internet technology, we have realized the systematization of the whole process, including quality traceability and financial accounting, from placing orders by dealers to arranging production, delivery plan and supply plan, which greatly improved our efficiency and reduced our costs.

On the basis of becoming a "beverage production enterprise", we will continue to strive to become a "beverage production enterprise", that is, develop into a high-end intelligent equipment manufacturing industry. Through the research and development of intelligent beverage production line, the technical parameters of each equipment are fed back in real time through sensors, and the equipment is automatically connected and controlled through the Internet, so as to realize real-time automatic monitoring and adjustment of various technical parameters, thus constantly moving towards the goal of "unmanned factory". Now our intelligent production line has begun to take shape.

In addition, we are cooperating with domestic and foreign scientific research institutions to develop robot ontology and core components, and strive to occupy a place in the strategic emerging industries of high-end manufacturing. At present, palletizing robots of various specifications have been independently developed for beverage production line, which greatly reduces the labor intensity of production line employees and improves efficiency. Through these transformation and upgrading efforts, we have continuously extended and developed to the high end of the industrial chain, thus firmly occupying the leading position in the industry.

Leaders, colleagues, our generation of enterprises and entrepreneurs are lucky, not only have a broad stage to display their talents, but also have the honor to catch up with the great era of vigorous rejuvenation of the country and the nation and be able to do something tangible for the country's prosperity and national rejuvenation. Although the road ahead is always full of twists and turns, I think as long as we firmly adhere to the ideal of industry serving the country, implement various economic development strategies put forward by the central authorities, persist in innovative development, and accelerate transformation and upgrading, we will certainly make greater contributions to the country and the nation. Thank you!

Management: Over the years, we have been relatively stable and have never borrowed a penny from the bank.

Wahaha Group is one of the largest beverage companies in China. At present, more than 80 branches have been established in China, with about 20,000 employees. After the melamine incident, it is said that Wahaha's nutrition express line will get leukemia after eating it. This is a rumor. Our brand has done well in recent years. In the first half of this year, despite the negative growth, we paid a tax of 3 1 100 million. Although it is affected, the overall problem is not very big. In any case, the key is to do a good job in products and manage the enterprise well. Over the years, I have learned something.

First, I insist on steady development. Wahaha has been developing in the food and beverage industry. We have tried other diversified industries, but we still insist on developing in our main business. I thought it was better to follow the rules, so I didn't do anything else. We ran in small steps and were cautious at first. Once the opportunity comes, we invest heavily and run fast. Over the years, we have been relatively stable and there have been no major problems. Do business, do business, and have a good attitude. Some money can't be earned. You have to win it, but you have lost everything.

Second, keep innovating. Innovation is all-round innovation, and our innovation has gone through three stages: first, follow-up innovation; The second is to introduce innovation; The third is independent innovation. We are constantly innovating in management and marketing. We have always guaranteed good cash flow and never borrowed a penny from the bank.

Third, pursue first-class technology and first-class equipment. In the beverage industry, Coca-Cola was canned when it was in China, and the cost was relatively high. We have introduced world-class production lines from the beginning, and all products are intelligent in and out. Now we have begun to intelligentize the beverage production line, that is, our key technologies are automatically adjusted by sensors and systems, which further ensures the quality of products. Moreover, in terms of product development technology, we have also introduced many advanced equipment and talents, and our technology and equipment are first-class. First-class technology, first-class equipment and quality are guaranteed. Second, high efficiency and low cost. So the profit margin is also high. It should be said that our profit margin was around 30% before, and it is still 20% now. The general profit rate of general enterprises is not so high.

Our incentive mechanism for employees is to increase their salary every year to increase their income, and our employees' income is relatively high. But after the income is high, it will also produce inertia, so we have a competitive mechanism. After all, I am a private enterprise. I was the chairman and general manager, and I was also the party secretary at that time. In my company, I have the final say, no one is in charge, and there is no superior department in charge, because we are developed from a market economy. I should say that I made the decision myself. Always keep their positive state.

In addition, decompose authorization. The media said that I had to approve myself when I bought a broom. At the beginning, it was really necessary to approve everything because there was no money at that time. But it is impossible to say that I have to criticize every little thing now. Our whole system is highly centralized and unified. What are the advantages of highly centralized management? Sales is managed by the sales department and finance is managed by the finance department. In fact, our branch is a workshop, responsible for production and sales, and the rest are managed by the company department.

Although our income is relatively high, we used to work overtime for a long time, so we should care about the family life of our employees. We have been helping employees solve the housing problem. Second, the problem of children studying and the problem of children seeing a doctor. When we first started, some state-owned enterprises were poorly managed and employees could not report medical expenses. However, our employees are proud to go to Hangzhou Hospital to prescribe any medicine. Care about employees, employees will work hard for your enterprise, and you will have good benefits. Private entrepreneurs don't understand, are too mean to employees and won't work for your factory. So the loyalty of our employees is relatively high.

In addition, all employees can hold shares after working in our company for one year, and the shares of 1 yuan can be divided into 80 points every year, which is also a good way to solve employees' income. When we sign the contract, you are willing to hold shares, and if you leave, you will quit, which can be increased or decreased every year according to your work performance. After all shareholders hold shares, there will be inertia, so you have to change. The good can be increased and the bad can be reduced. Because if you sign an agreement, you can follow it.

There are differences between eastern and western cultures. In terms of management, we always learn from western management concepts and methods, but the western countries seldom study China's enterprise management methods. In fact, China's industry has existed for a long time, including its GDP ranking first in the world before and ranking first long ago. Hangzhou was the capital of the Southern Song Dynasty, and the GDP of the Southern Song Dynasty ranked first in the world. But at that time it was silk, porcelain and tea. You have no industrial revolution and no advanced weapons. Many of our western theories can be used for reference, but I think there are still differences, because the national conditions are different and the cultures are different.

In fact, China people are more difficult to manage, because China people are smart and want to be emperors. I think all good enterprises in China basically have an enlightened leader. Strong management, while caring about your employees. I think it is necessary to be afraid that I don't hate me, and I can't control you if you are not afraid of me. But I also care about you. I don't tease you. I don't provoke you. I just change. I'm good to you. Afraid I don't hate me. We say that shopping malls are battlefields, and now enterprises are also fighting every day. Enterprises should have fighting capacity and strict discipline. Enterprises in China really need to combine incentives with competition, be people-oriented and convince people by reasoning. Entrepreneurs in China should have connotation, credibility and prestige. Some people can be trusted without authority.

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