Improve enterprise's own management level
According to estimates of relevant experts, the “rising salary increase†may cause more than 50% of companies in China to be affected, while only about 10% of companies in the region will not be affected. However, there may be more than 60% of the entire Pearl River Delta region. Due to the salary increase of employees, the company’s profit margins have drastically decreased. Many companies have been pressured to either move to the Mainland or Southeast Asia or close down.
At the same time, the problems of enterprise management brought about by the increase in salaries have also gradually become apparent. Due to the fact that the wages and wages of employees in different companies are mutually comparable, it is very likely that the reshuffling of the employees of the company will be directly caused, and the resulting social problems will have to attract the attention of all parties.
It is undeniable that after the salary increase, many entrepreneurs felt that the era of relying on low labor costs to develop is over. They can only be improved by improving the company’s own management and management levels and integrating all aspects of the industrial chain. The production efficiency has been developed through independent research and development of mastering core competitiveness and pricing power to reduce costs. This has been beneficial to our current industrial upgrading.
Relying on low cost and low price is not the long-term development of the company. Low wages and low welfare are not the core competitiveness of the company. Improving people's livelihood is not an empty talk. It is even more necessary for the broad masses of workers to enjoy the fruits of reform and opening up. While paying attention to efficiency, it is necessary to give due consideration to fairness. Otherwise, it is an unhealthy economic development model.
Therefore, companies must pay attention to the development of the company while increasing their salaries. Only when the company has developed well, the workers have a long-term sustained “increased salaryâ€. If they ignore the actual situation in a short period of time and blindly increase their wages, it is a short-sighted behavior that only shows short-term interests. Then, at the onset of rising wages, companies should call on everyone to work together to create a harmonious labor-management relationship based on the idea of ​​seeking common ground with differences.
Appropriate salary increases can motivate employees
The increase in salary paid by employees to the company is bound to increase the cost of the company. However, the company has never been unilaterally formed by the employers, but rather is composed of both employers and employees. Therefore, the company's business can not simply stand on the side of the employer to consider.
Perhaps it is extravagant to talk about entrepreneurial social responsibility. As an entrepreneur, you should be responsible for your own business. The long-term low salary will seriously affect the production enthusiasm of workers and become an important reason for many companies to stagnate.
Therefore, if entrepreneurs are responsible for their own businesses, they may wish to change their minds. How can the biggest cost of “employees†be turned into corporate wealth? That is, it is appropriate to increase the salaries for employees. If they can mobilize the enthusiasm of employees and increase production efficiency, the newly increased productivity may be able to offset rising costs. What is wrong with this?
Pearl River Delta's inland migration or relocation may not be feasible
In the face of the Pearl River Delta region’s widespread “income surgeâ€, some scholars expressed concern that there were companies that threatened to “move in†and “move outâ€. There was even more sensationalizing that a sharp increase in salary would bring about the closure of companies in the Pearl River Delta. With all sorts of doubts, the author understood the ideas of some companies.
Some companies have visited Vietnam and Southeast Asian countries to see if they can transfer some of their production lines to Southeast Asian countries. According to their research, the labor cost advantage of Southeast Asian countries is obvious. At present, the wage level in Vietnam is only equivalent to 40% of the Pearl River Delta. Other Southeast Asian countries are on average less than half of the Pearl River Delta, and some are even lower. Moreover, setting up factories in Southeast Asia can rely on the China-ASEAN Free Trade Area to avoid some trade frictions.
However, these enterprises believe that there are many unsatisfactory areas for the transfer to “outsideâ€. For example, water, electricity, transportation, infrastructure, and production facilities in Southeast Asia are far less than the Pearl River Delta. The business environment is far less than that in the country. .
In addition, some companies believe that after 30 years of development, the Pearl River Delta has formed a complete industrial chain that matches production capacity. Relocation to other places, of course, can reduce the cost of labor, but the cost of supporting raw materials will also rise. And offsetting the two, companies may not feel the ease of cost.
For many foundry hardware companies, the transfer to the mainland does not necessarily solve all problems, and even meet unexpected problems. For example, some hardware manufacturing enterprises in Guangdong have moved to a certain city in southwest China. They have indeed obtained preferential treatment in terms of taxation policies, land, and supporting facilities. However, the first troublesome business process is procurement. In order to find a kind of parts, the procurement department traveled around several counties and cities in the surrounding area, and finally had to be shipped from Guangdong to the company after purchasing. At the end of the period, the company's accounting, the time of delay, and the cost of shipping, etc., made the transfer cost almost the same as when it was produced in Guangdong.
Therefore, the author does not oppose the company's consideration of relocation to the Mainland or its emigration due to cost pressures. However, if one simply considers the migration from the perspective of labor costs, this idea is debatable. In the market competition, enterprises are not lonely, all need supporting upstream and downstream industrial chains, and the cost of the company is not only the labor cost, but also the collaboration costs, logistics costs and other operating costs, under many constraints, the company is Staying must be careful, "transfer" may be in line with the company's development strategy, leaving to digest the cost, transformation and upgrading in place, may also be able to come up with a new path.
Using wage levers to accelerate the change in business model
According to Cui Renquan, director of the Bureau of Human Resources and Bureau of Guangzhou City, it is undeniable that some low-tech, low-value-added and low-efficiency hardware companies will affect their production and operation due to the increase in the minimum wage and the increase in labor costs. To increase the minimum wage, it is also possible to use wages as an economic lever to prompt them to speed up the transformation of their production and business models, increase the added value of their products and the benefits of their production and operation, and exert their role as a forcing mechanism.
An expert in labor relations who has studied for more than ten years in the field of labor salary shows that at present, there are few companies that do not comply with the minimum wage standard. However, the salary mode of "basic salary + piece rate" in hardware manufacturing enterprises is worrying.
In his view, the enterprises in the Pearl River Delta have passed product and quality barriers. The current problem is that corporate culture and brand building still need improvement. And if many hardware manufacturing companies are only foundry, there is little profit margin, then how can a company give employees processing capital?
Therefore, this expert believes that salary increase is not just something that a department of labor can do. The key lies in the economic structure and industrial upgrading. Only when the industry is upgraded, the profits of the company go up, and the employees can improve their quality. To meet the requirements of the company's skills development, the wages of employees can continue to grow.