The rumors about Huawei's layoffs have become a hot topic. These rumors cite the post of Huawei's internal forum “Heart Communityâ€. An anonymous poster claimed that he heard the supervisor said that “Huawei China started to clean up 34+ (over 34 years old) delivery engineering maintenance personnel, and R&D began to clear and retreat. 40+ (over 40 years old) old staff."
Immediately, Huawei officially responded that online news that Huawei is cleaning up employees over the age of 34 is purely a rumor.
On February 24th, the Heart Voice Forum released a speech by Ren Zhengfei, which seemed to be a positive response to the matter. He said: "Huawei has no money. If you don't struggle, you will be embarrassed. It is impossible to pay for those who are not struggling. In the 30s, young and strong, don't work hard, just want to spend money in bed, is it possible?"
However, this response does not seem to dispel the fears of many people, especially the concerns of Huawei employees. Up to now, the heart sound forum still retains such things as "Age is the performance will be badly beaten?" ""Where is my 34-year-old employee out of the way?" and other posts. And many outsiders also have a strong sense of substitution because of the age line, feeling "bunny dead dog cooking."
Will Huawei really lay off employees based on age in 2017? What is the real departure process? For these issues, China News Weekly glimpsed Huawei's layoffs through several Huawei employees.
“The 34-year-old is a misunderstanding.†Huawei’s China employee Li Ming told China News Weekly.
He said that Huawei's annual brain drain rate is around 10% to 20%. It has its own way and has been retired. Age is definitely one aspect. It is also related to past performance and rising potential. If it performs well, even if it performs well, The company will retain it when it is older. "It's impossible to get rid of all."
In fact, each newly recruited employee will be involved in Huawei's cruel final elimination system, that is, the performance evaluation system will be set up in conjunction with each position to evaluate employees, and the employees with lower ratings will be eliminated according to the results of the assessment. . In Huawei, the scores are A, (B+), B, C, and D, which are executed once every six months. The lower ranks of 5% of ordinary employees and 5% of management will be eliminated. "Some of the non-working employees must not let him stay here."
Li Ming explained that the assessment result is D, the company will directly terminate the contract with it; for two consecutive half-years, C will basically be dismissed, and the employees who are not dismissed will generally leave the company themselves; the assessment result is B, which is called Huawei's solid contributors are ordinary employees; B+ is relatively good; A is particularly good. A and B have a considerable gap in the year-end awards and salary increases. A can increase the salary by 30% to 50% at the end of the year, and the B+ can increase the salary by 20% at the end of the year.
It should be noted that performance is directly assessed by the immediate leadership of the employee. But leaders also have performance, and their performance is tied to the overall performance of the team, so it will be relatively fair. "But after all, it is subjective scoring, and occasionally there will be unfair situations." Li Ming said.
At the beginning of each year, the employee and the superior agree on a letter of responsibility for work, that is, what goals are achieved within half a year, and after half a year, the target can be beaten; outside of this goal, there are other contributions that can reach B+; contributions outside the target Especially outstanding, you can hit A+.
Due to the limited position of cadres and the corporate nature of Huawei, the 5% final elimination system at the Huawei cadre level is hard and very cruel. Ren Zhengfei, president of Huawei, once said: "Our cadres are not lifelong, and senior cadres must be able to get on and off. Upon expiration of their term of office, cadres must accept their own debriefing reports, as well as applications for the next phase, accepting organizations and the masses to review and re- Discuss pay."
However, due to humanization considerations, Huawei has not implemented such strict rules on ordinary employees most of the time. It often retains this part of the staff or adopts some alternatives.
For example, the company will negotiate with employees who wish to voluntarily leave, let them back 5% of the elimination indicators, so that these voluntarily retired employees can also get the N+ that can only be obtained by the company's dismissal under the Labor Law. 1 compensation. According to the provisions of the Labor Law, the active resignation personnel cannot receive compensation. Therefore, in the past development, the proportion of Huawei's ordinary employees has been taken down by the active employees, and there are actually not many employees who have been eliminated by the last.
In Li Ming's view, Huawei's situation this time is not much different from the last year's elimination. It is only because of the surplus of personnel, so the elimination of the last position of ordinary employees is more strict, which leads to the number of layoffs. More in the past.
Another overseas employee, Zhang Chu, introduced China News Weekly, and there is a rank system within Huawei. General undergraduate and postgraduate graduates entering the Huawei rank is 13 and the doctor can go to 15. Generally, it is upgraded to the next level in 2 years. The upgrade speed sent to overseas is slightly faster. The employees with medium performance are about 8~10 years old, and the employees with medium performance are basically the core personnel of the company. The problem is not big at the 17th and 18th grades. At the level of president and vice president.
Zhang Chu said that there are two factors that affect the rank system. One is the performance appraisal mentioned above, and the other is the technical exam. After passing the exam, you can go up. "When I graduated, I entered Huawei. Now I am 34 years old. I have been working for at least 18 years. At least 34, I am still at the 14th and 15th grades. It means that there is not much initiative. This kind of person is also very good. May be eliminated."
Overseas business needsAccording to official data, Huawei's 2016 sales revenue is expected to reach 520 billion yuan (about 75.7 billion US dollars), an increase of 32%; but its operating profit margin for the first half of 2016 was 12%, down from 18% in the same period last year. At the same time, Huawei's consumer business's profit in 2016 was only 2 billion US dollars, not only did not reach the target of 2.5 billion US dollars, compared with the 2015 profit of 2.2 billion US dollars also shrunk.
In this context, Huawei began to maintain profit as the main direction of work in 2017, and the staff of the clean-up business shrinking department naturally became the meaning of the title. Li Ming said that he did hear that Huawei's delivery of engineering maintenance personnel in China has cleaned up hundreds of people. This department is the main force of Huawei 34+ employees in the network.
He believes that this is related to the characteristics of equipment maintenance work. "The maintenance requirements for telecommunication equipment have been very high. The network in Chaoyang District has been cut off for an hour. Consumers can explode complaints. If the equipment finds a problem, it must respond immediately. It turns out that the maintenance personnel are directly stationed on the scene and work when there is a problem. There is no workman who can't live without it, and must be idle there. But with the development of technology, many problems can be withdrawn now, remotely monitored, positioned, and solved. The company's labor cost in this piece can be compressed."
At the same time, the contradiction of how to allocate manpower in the absence of labor in the international market is becoming more and more prominent. "Many Huawei's human resources measures need to be understood in the context of their business. If you just think about it like other companies, it is too simple." Li Ming said.
Compared with other domestic companies, Huawei's internationalization has always been at the forefront, with offices in more than 170 countries. The high level of labor in Europe and the United States, coupled with the implementation of localization strategies, often has low demand for local manpower, and can even reach the level of ten Chinese people managing hundreds of foreigners. However, in Africa, Southeast Asia and other places, the level of education of the nationals is not high, and the human resources market cannot provide sufficient labor. Therefore, only personnel can be dispatched from the local government. The proportion of Chinese personnel is very large.
Some of the colleagues around Li Ming are unwilling to go abroad. The complex of "the land is difficult to leave" is very serious. Huawei's solution is to send young people who want to make money to go back to the age at which they need to be married. In order to encourage everyone to go out, Huawei will not only rent staff quarters in the rich areas of the countries and cities, but also give employees a high amount of “hardship subsidiesâ€.
“In the past, when there were more profits, there was no problem with this model, but now the whole industry is mature, and the overall opportunities in overseas markets are slowly decreasing. Overseas, there is no need for a large number of young people, but a small amount of experienced and skilled Employees. Huawei hopes to adjust manpower, turn the squad mode into a refined mode, send experienced people abroad, bring business together, send overseas young people back to exercise, improve their skills, become elite soldiers, all can Understand, and some domestic jobs are indeed saturated," Li Ming said.
However, at this time, "fine soldiers" generally have a family business in China and are unwilling to go overseas. Under this background, some people have no way to continue their work after communication, and they can only agree to leave.
"The official said that there is no layoffs. I think you can see how you look. I have to allocate manpower, but you are not obeying the deployment. In this case, do you think it is a layoff?" Li Ming said.
Zhang Chu summed up the same stage of the resignation of the employees in the metropolis: first look at the performance is qualified, then see if you are willing to stay overseas, the negotiations can not only leave. Of course, even if the employees are removed through the form of assignment or transfer, they will still follow the national legal procedures and pay compensation. "After all, the company does not lack this money."
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