An employee of Xiaomi Auto broke the news on the Internet that in addition to paying employees' salaries normally, Xiaomi Auto also requires the company to keep enough in its accounts18 monthsThe matter has been widely discussed.
As an emerging electric vehicle manufacturer, Xiaomi Auto's operational strategy and employee benefits have always attracted much attention. As soon as this revelation came out, many netizens said that Xiaomi "failed" Huawei in terms of employee protection, and Xiaomi's CEO Lei Jun once again became the focus of attention.
* On the Internet (e.g. invasion or deletion).
How should we look at this objectively and rationally? What problems does Xiaomi Auto's "18-month cash retention" policy reflect? In the face of all kinds of speculation and comments, what should we do? What lessons do we have to think about?
In the current economic environment, any business will face certain operating pressure. The new energy vehicle industry requires a lot of investment and development time, and it is difficult to make a profit in the short term. As a start-up company, Xiaomi Auto needs sufficient cash flow to support long-term development.
"18 months of cash retention" does not mean that there is a problem with the cash flow of Xiaomi Auto, it is a conservative operation strategy adopted by Lei Jun, which not only reserves funds for the company's future development, but also allows employees to have a more stable mentality when the market changes.
This management strategy fully embodies Lei Jun's leadership philosophy of "employees first". In the early days of entrepreneurship, in order to alleviate the pressure on employees' lives, Xiaomi launched a program of "choosing trust and going home with a year's salary". Twelve years later, the Xiaomi car project still upholds these values.
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Lei Jun hopes that employees will devote themselves to their work and do not need to worry about their livelihoods. This corporate culture of "daring to invest" is also an important reason why Xiaomi products can continue to innovate and be recognized by consumers.
Overly conservative cash flow management may also affect the company's ambition to grow. According to reports, Huawei implemented a fixed cash reserve system of "orders in hand to pay three months' salary" in the early days, which was later adjusted to about one month.
In contrast, Xiaomi Auto's current strategy is indeed more cautious. As a newcomer to the automotive industry, this conservatism has its fair share of considerations, but it can also lead to companies becoming more stable than aggressive.
When we comment on this strategy, we also take into account the reality of Xiaomi Auto as an emerging enterprise. It faces competitive pressure from traditional auto companies and lacks the cash flow to support risk-taking experiments like Huawei. Steady and steady can win long-term survival.
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We should also see that the vitality of entrepreneurial enterprises is often the most positive and enterprising spirit in the corporate culture. Being too conservative may encourage inertia, which also needs to be vigilant at the management level.
In any case, this revelation allows us to see that technology companies with fierce competition in the eyes of the outside world also have different management concepts and practices in terms of protecting the rights and interests of employees. We should not simply judge them against each other, but rather establish a long-term perspective. Corporate culture and business strategy need to be accumulated and precipitated over time, and the strategy of the enterprise also needs to take a long-term view and avoid subjective assumptions.
Every business has its own real-world dilemma at a particular stage, and external comments should be empathetic.
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Let's wait and see, I believe that Xiaomi can bring us more surprises.