If the profit declines, the performance will be retrospective, and iFLYTEK will let employees take r

Mondo Finance Updated on 2024-02-17

iFLYTEK, a technology company based in Hefei, China, has been researching and developing cutting-edge intelligent speech and artificial intelligence technologies since its inception in 1999. Over the years, iFLYTEK has set a monument in the international market and become a high-profile AI leader in the Asia-Pacific region. Recently, a topic about the annual performance retrospective of iFLYTEK employees has attracted the enthusiastic attention of the majority of netizens.

In layman's terms, performance backtracking is to distinguish between an employee's basic salary and performance-based salary. Among them, the basic salary will be paid in full on time; Performance-based pay may be paid monthly, quarterly, or even semi-annually based on the employee's performance. However, at the end of the year, if the company's overall operating performance is better or lower than expected, it is necessary to make appropriate adjustments to the performance pay for the previous year.

For example, let's say that the year-end inventory results show that the company's performance has reached 09. Failure to meet the expectations of investors or management. This means that the full amount of performance pay that would have been paid will be only 09 copies were cashed. At this time, for the part that is more than 01. The company has the right to recover part of the income or deduct it from the salary and year-end bonus paid in the future. Conversely, if the company performs well, it reaches 11. Even more than expected, it is possible to compensate all employees in order to give you a higher salary, which is undoubtedly a gratifying thing!

However, this is not the first time that this type of performance management has appeared at iFLYTEK. As early as February and March 2023, when a large number of companies were preparing for the issuance of year-end bonuses, iFLYTEK had publicly implemented a round of performance retrospective measures, which made many employees complain about it and accuse it of being a disguised salary cut. In response to this incident, iFLYTEK immediately clarified the rumors, saying that this "performance retrospective" is not a disguised salary cut, but is implemented based on the actual performance of various businesses, and the salaries of most employees have increased significantly.

According to the official introduction of iFLYTEK, the company successfully landed on the Shenzhen Stock Exchange in 2008. This company, which has been focusing on the field of speech-to-text since the 90s of the 20th century, has now fully invested in the innovative research and development of artificial intelligence and AI. As a technology leader, iFLYTEK has always believed that technological development can not only promote social progress, but also bring benefits to every employee.

It is worth mentioning that late at night on January 29, iFLYTEK released its proud performance forecast for 2023. Estimates show that iFLYTEK is expected to achieve a net profit of 6 in 2023$4.5 billion to $7300 million yuan, a year-on-year growth rate of 15% to 30%! It can be seen that iFLYTEK does have the opportunity to provide material rewards for hard work through performance retrospective measures, but at the same time, the company has to face another harsh fact - in mid-2023, iFLYTEK's net profit has declined sharply. In this regard, we can't help but ask, what are the company's considerations for implementing such a reform at this time?

iFLYTEK further explained that the net profit after deducting non-recurring losses in 2023 is expected to be between 80 million yuan and 120 million yuan, compared with a year-on-year decrease of 71% to 81% in the previous reporting year. It was in this context that the company was launched"Performance backtracking", trying to push some of the responsibilities and pressure onto the employees. I think this is clearly not fair, and it can even be said to be irresponsible.

As for the question of whether performance retrospective is in compliance with laws and regulations, as early as March 2010, the China Banking Regulatory Commission (CBRC) promulgated the Guidelines for the Supervision of Sound Remuneration for Commercial Banks, which clearly requires commercial banks to formulate provisions on deferred recovery and payment of performance-based remuneration.

From the perspective of employees, such an explanation seems reasonable, but in fact it masks a deeper problem. Think about it, if the overall profitability of the business has been stable or even improved, why bother employees to bear the potential risks that come with it?

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