Ren Zhengfei and Cao Dewang are undoubtedly outstanding figures in their industry, and they can even be said to be leaders. These two companies, one can fight and the other can support, and they have opened up a new world for domestic brands.
There is no doubt that Ren Zhengfei and Cao Dewang are both very successful entrepreneurs, and they have built a "business empire" that rivals the wealth of the country. However, the strategies adopted by the two in business management are different, especially in terms of remuneration system, which can be described as contradictory.
Ren Zhengfei advocates "eclectic salary raisal", which means: as long as you are capable, willing to endure hardships, and willing to work hard, the company should give you a salary several times higher than that of your peers.
It is said that the average salary of Huawei employees is 4-6 times higher than that of high-tech companies such as Alibaba, ZTE, Xiaomi, etc., although this figure may not be accurate, but it also fully shows Ren Zhengfei's determination to "make a big deal".
Cao Dewang fully abides by the company's rules and regulations, even if it is a salary increase, there must be a limit, not higher than competitors.
Someone once asked him: why are you willing to donate so much money, but you are not willing to give employees a salary increase?
The positioning of enterprises is different
Huawei is a high-tech company. Winner takes all, whoever sets the standard first, who gets the patent, who is the winner of the communications industry, "lie down all the way to win", sit and collect patent fees.
Just like Nokia, the creator of the 2G standard, has become a leader in the mobile phone industry with its powerful communication technology.
Qualcomm Communications, with the accumulation of 3G communication technology, has an absolute advantage in the field of chips.
Cao Dewang's Fuyao Glass, which mainly produces automotive glass, started very late, but compared with Huawei, there are still differences in nature.
At the beginning, Cao Dewang took advantage of the advantages of labor-intensive and cheap labor to make a windfall. Even today, production capacity and cost are still the key to determining a company's survival, and only by doing the ultimate can it occupy a place in the market.
Huawei is a "bayonet" company, facing countless powerful enemies, which also involves political struggles between major powers, the rules of the game are very cruel, the slightest mistake is a complete loss, so they must always be vigilant. Therefore, Huawei has no choice but to use the aggressive "wolf nature" as the company's totem.
Fuyao Glass, on the other hand, is a broader and longer-term competition, and they need more long-term planning, patience and perseverance than Huawei's courage.
Therefore, there are inevitably differences in the specific levels of corporate culture and system design due to different types of enterprises and different competitive situations.
Differences in talent needs
Whether it is communication technology or chip manufacturing, a large number of high-quality talents are needed, and the requirements for academic qualifications and abilities are very high. This kind of talent is the most valuable strategic resource of the enterprise and the backbone of the enterprise. Without these talents, it would be difficult for tech companies to survive.
Senior IT engineers, chip designers, etc. are all leaders in the industry, and they must be offered generous compensation packages to attract and retain them.
In 2019, Huawei invested 120 billion yuan in R&D, a significant part of which was invested in the training of R&D personnel. This can be seen from Huawei's salary system.
Huawei's basic salary, from level 13 to level 23, each level is divided into three grades of ABC, the gap between each grade is 4,000 yuan to 5,000 yuan, and the threshold for an annual salary of one million is 18 level B, which has more than 10,000 employees.
Since 2019, Huawei has launched the Talent Program to select outstanding talents from among recent graduates. The first batch of 8 outstanding graduates recruited, with an annual salary of nearly 900,000 yuan and a maximum of 2 million yuan, is shocking. When it comes to talents, Huawei can be said to be generous.
Ren Zhengfei said at an EMT conference that in the future, he will discover "talented teenagers" around the world and expand the scale of recruitment, so as to inject a steady stream of fresh blood into Huawei.
Huawei has always advocated the idea that as long as you have the ability and performance, there is no upper limit on salary.
Compared with Huawei, Fuyao Glass has taken a more traditional and conservative approach. Large companies with tens of thousands of employees are not as enthusiastic about attracting talent.
In the eyes of policymakers, today's high market share is no longer a "competition for talent", but large-scale investment and efficient and integrated production.
The demand for talent is more for skilled operators, who can create value and profits faster and more efficiently. In domestic factories, the monthly salary is only 4,000 yuan, which is lower than the average salary in China.
In Cao Dewang's eyes, "people" are worthless and can be easily replaced, and even in front of the camera of the crew of the documentary "American Factory", Fuyao's managers did not shy away from saying: Hope.
In July or August, we will be able to get rid of such people. 」
At the end of the documentary, an executive reports to Cao Dewang, who is visiting the factory, that the factory is in full swing to implement a plan to replace human labor with robots.
Cao Dewang also explained the reason for his "slamming the door": I never arbitrarily raise the wages of employees. I raise my salary, and my peers will also follow suit, resulting in their costs**, and many companies will not be able to afford such losses.
Conclusion
The company strategy is different, but with the same success.
In just a few years, Huawei has swept through communications and mobile phones, beaten telecom giants Siemens and Arka, and targeted Samsung. Trump, who threatened that 5G is the future war, suppressed Huawei at all costs, not only imposed a technical blockade on Huawei, but also threatened Ren Zhengfei's daughter Meng Wanzhou.
In the face of unprecedented pressure, Huawei did not flinch, but bravely stood up, playing the slogan "No scars, how to be cheeky, heroes have suffered many hardships since ancient times", accompanied by an old-fashioned military aircraft**, suggesting that Huawei is not afraid of difficulties and will definitely win this unfair war.
Huawei's resilience has finally been recognized and praised, and under the "extreme pressure", they have become more and more fierce, once again setting a series of brilliant records. Today, Huawei carries the dreams and hopes of the Chinese people all the way through obstacles and forges ahead.
The Oscar-winning documentary "American Factory" tells the stories of Cao Dewang before and after he built a factory in the United States. This entrepreneur from a poor mountain village has single-handedly created China's largest automotive glass production enterprise, and is also the world's second largest automotive glass business, and the title of "glass king" is also created by himself.
Cao Dewang, who claims not to accept bribes, is a faithful believer in Buddhism, and contributes to philanthropy, has donated 11 billion yuan since 1983, and has won the Ernst & Young Global Entrepreneur Award, known as the Oscars of the business world, the first Chinese in history to receive this honor.
Trump attended the groundbreaking ceremony for the construction of a factory in Ohio, USA, which fully reflects the important position of the company.
Some people believe that business management is both a technique and an art. Just like education, teaching according to aptitude, different from person to person, this is an immutable book, in enterprise management, we should also dig deep into their own characteristics, positioning, goals and other aspects of the characteristics, so as to develop a suitable tactical strategy.
Judging from the story of Ren Zhengfei and Cao Dewang's "different paths to the same end", in the design of the salary system, there is no good or bad between high and low, as long as it meets the needs of the company's development, it is the best.
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