Huawei is amazing!Under such a difficult situation also dividends, this is ren Zhengfei’s brilliance
Again bitter can not bitter children, again poor can not poor education.Similarly, as a company, you have to treat your employees well even when times are bad.Because everything in the company is earned by the employees, the interests of the company cannot be above the employees, but “complement each other”.As you all know, Huawei has encountered considerable development difficulties in the past few years.According to huawei’s 2021 financial report, the company achieved sales revenue of about 634 billion yuan in 2021, representing a 28.9 percent year-on-year decline.In particular, Huawei’s smartphone business, which was expected to be number one globally, dropped out of the top five for the first time after chip restrictions.Even so, Huawei has survived qualitatively.As the rotating chairman of Huawei said, In the coming year, Huawei is confident to strengthen its foundation by producing more grain.Today, media broke the news that Huawei announced the dividend data at the end of January, and it will continue to implement the stock dividend in 2021, which is expected to be 1.58 yuan per share.According to previous information, Huawei Investment Holding Co., Ltd. is a 100% employee-owned private enterprise.Huawei implements the employee stock ownership plan through the labor union, and the number of employees in the employee stock ownership plan is 121,269 (as of December 31, 2020), all of whom are employees of the company.Based on 194,000 employees, the average salary of Huawei employees is 700,000 yuan.Huawei has more than 20 billion shares, which means it will pay out more than 30 billion in dividends in 2020.So the question is, why does Huawei pay a large dividend in such a difficult situation?That’s where Ren Zhengfei, huawei’s founder, comes in.Many netizens believe that the practice of employee ownership is initiated by Internet companies. In fact, it is not true. Most Internet companies learned from Huawei, and many companies still learn from Huawei’s management mode today.Spring childe said before, Ren Zhengfei is the Chinese enterprise circle unique “enterprise strategy master”!Many company founders believe that the company gives its employees opportunities and that employees should help the company unconditionally.But Ren Zhengfei does not think so, Ren Zhengfei understood very early that all things in the company are empty talk without people.So how do you retain talent?In plain English, it means throwing money at them. Smart companies never talk about their employees’ dreams, but use real money to keep them engaged, because employees have families and want to improve their family life through their own efforts.Huawei implements the employee stock ownership system, which assigns certain virtual stocks to employees based on their performance. Employees can buy stocks based on the stock price determined by the company or not.But most Huawei employees will buy it.Through holding the internal shares of the company, employees participate in the distribution of the company’s wealth and share the success of the company with the capital owners, which is the basic theoretical framework of the employee stock ownership plan.When enterprises design equity incentive schemes, most of them are thinking about how to play an incentive effect and mobilize the enthusiasm of employees.This is no doubt the fundamental purpose of equity incentive, but incentive at the same time can not forget the establishment of restraint mechanism.Only by clarifying the restraint mechanism, can employees take into account their obligations and responsibilities while obtaining benefits, and make rewards and punishments clear, which is a good plan.The darkness will pass, the dawn is at hand.Let’s wish Huawei can grow against the trend and lead China’s science and technology forward again in 2022!