Piling up salary increases! Internet company talent turnover rate exceeds the average 2 times, big manufacturers spend money to keep people reliable?

Recently, a number of Internet companies have released equity incentives, salary increase plan, the scope of the award is mostly for middle and senior managers and technical personnel. Rough statistics, half a month, there are more than five Internet companies announced a similar plan, only part of the equity incentives involved in the amount of nearly 3 billion yuan, per capita benefit of more than 300,000 yuan. Such a short-term and intensive collective reward phenomenon has become a landscape for a while.

Most companies, including Tencent Holdings, emphasized in their evaluation of the above behavior that the move was to reward some employees for their contributions and to attract and retain talent. A number of analysts expressed similar views.

However, the money spent, people retained?

Zahei reward employees

July 14, Tencent Holdings announced that in order to reward the contribution made by some employees, to attract and retain talent, plans to issue an additional 2.432 million new shares awarded to no less than 3,300 recipients of awards, awards, including employees, executives or officers, directors, experts, consultants or agents.

At the close of business that day, Tencent's share price was reported at HK$556.50 per share, and roughly calculated, the market value of the 2.4 million shares corresponds to more than 1.1 billion yuan, with an average of 340,000 yuan per person.

Previously, the millet group released two equity incentive announcements in succession.

On July 2, Xiaomi Group announced that it awarded 70,231,700 shares to 3,904 employees of the Group, and the closing price of the shares on that day was HK$26.2, valued at HK$1.84 billion, or about RMB 1.534 billion, with an average of RMB 392,900 per person.

On July 6, Xiaomi Group made another announcement that it had taken out 119 million shares to reward 122 selected participants, all of whom were selected as the company's technical experts, middle and senior managers, and those selected for the New Decade Entrepreneur Program.

In addition to stock giveaways, there were also companies announcing salary increases. Jingdong Group announced that it will take two years to gradually increase the average annual salary of employees from 14 salaries to 16 salaries, on the basis of two months of salary increases before July 1 this year. According to public information, the Jingdong salary increase range includes managers, project managers, product and technical staff, delivery staff and other grass-roots employees will be according to the region and type of work for "appropriate adjustment".

Human resources expert Shi Huijun said in a previous interview, equity incentives are often found in intellectual enterprises (such as Internet companies), talent is critical to the development of these enterprises. According to Shih, equity incentives are not about the boss being generous and letting the shares out to everyone, but about knowledge workers getting the part of value creation that should belong to them in addition to their salary.

Beijing Darui Management Consulting Co., Ltd. founder, chief analyst Ma Jihua that the Internet company has been to attract high-quality talent with high income, but in the last two years, some of the emerging startups in order to develop the business of the cost of digging people, the "big factory" is the main place of export of talent, in order to retain the backbone of the business, but also to spend money. The only way to do this is to spend money.

Cao Lei, director of the e-commerce research center of the net economy, said that the core of the Internet company is a major asset of the staff, in order to lock the talent, in addition to salary, equity incentives is also a very effective means of incentives. "But there is a certain follow-the-wind effect of the successive salary increases of Internet companies, there will be a natural flow of talent between peers, in order to prevent and prevent the loss of talent, it will follow the wind to introduce incentive programs." Cao Lei emphasized.

is an old tradition

The Internet company issued stock awards to employees is not new, is an old tradition.

According to Tiger Securities ESOP statistics, since 2008 to 2020, 13 years, only Tencent has issued at least 14 share award announcement, the cumulative number of awards 137,600 people, awards shares *** counted 227 million shares, the total market value of the award reached 126.3 billion Hong Kong dollars.

In addition, according to incomplete statistics, since the establishment of millet, has also announced 9 times the share incentive program.

Lei Jun, founder and chairman of Xiaomi Technology, has publicly stated that Xiaomi is a startup company, if the person does not care about our shares, just want a job with a good salary, I think this person is not what I want, he has no entrepreneurial spirit!

Human resources expert Shi Huijun believes that the company is going uphill, or at least can see the shadow of the uphill before it is suitable for equity incentives, equity incentives to serve the realization of the strategy. Equity as a scarce resource, should be given to the development of the company has a vital role in the people, and, also need to cooperate with the assessment, stimulate employees to make greater performance.

According to the financial report, in 2020, Tencent Holdings total revenue of 482.064 billion yuan, a year-on-year increase of 28%; net profit of 159.847 billion yuan, a year-on-year increase of 71%; millet 2020 to achieve revenue of 245.86 billion yuan, a year-on-year increase of 19.4%, the adjusted net profit of 13.006 billion yuan, a year-on-year increase of 12.8%.

Is it reliable to spend money to keep people?

Public data show that in 2020, the Internet industry has the greatest demand for digital talent, and the distribution of talent accounts for 88%, which is currently the largest inflow of talent.Since 2018, the annual average salary of the Internet industry has been steadily increasing, and during the four-year period, the Internet salary has increased by as much as 22%.

However, in the first half of 2019, the average domestic enterprise employee active departure rate was 7.1%, while the Internet industry had the highest employee active departure rate in the same period, at 13.3%, which is nearly twice the average.

SkyNet Business data survey on the age of employees in the TMT industry shows that the average frequency of employees jumping ship in domestic enterprises does not exceed 5 years, and Internet companies are even worse, the average age of the department did not exceed 3 years.

Some analysts believe that, for employees of large factories, in addition to the lack of money, "too much overtime" is the main incentive for people to leave the workplace.

Liu Run, a business consultant, has publicly stated that the problem of population brings the problem of talent, and with the sharp decline in population, the trend of grabbing people in all walks of life. Pulse data shows that in the past 6 months, the number of talents "teased" by companies on Pulse has increased by 4.2 times.

A person who stayed in the Internet industry for 10 years jumped ship to the state-owned enterprises to the financial network technology, said the work intensity, performance appraisal is difficult, promotion space is small Internet company employees will encounter problems, "35 years old is almost all of the Internet people a threshold, or a career life, when the executives on the up, when not to find another way out! The problem is that the company's employees will encounter problems.