What HK Inc can learn from a Jiangxi steelmaker

January 21, 2019 12:51
Social media forums in China are abuzz with chatter about wads of cash being offered by a Jiangxi-based firm as annual bonus to employees. Representative image: Bloomberg

If you are one of those Hongkongers who have received a year-end bonus and are thanking your stars, just take a look at the bonanza that is in store for workers of a steel firm in mainland China. 

In a payout that would make most Hong Kong workers turn green with envy, a Jiangxi province-based enterprise is doling out annual bonuses totaling 312 million yuan to its employees.

In a gesture of thanksNanchang Changli Iron & Steel has announced wads of cash in bonus for each of its roughly 5,000 workers ahead of the Chinese New Year.

Building a "bonus mountain" with 100 yuan notes, the Shanghai-listed manufacturer of special steel decided this year to go to new lengths to impress the staff.

Putting the cash pile on display, it gave an opportunity for the employees to crow about their luck.

On social media, several workers shared their joy and posted pictures, with some noting that the stacks of banknotes added up to a height that was taller than an adult human being. 

At the venue where the bonus cash was on show, Nanchang Changli laid out colorful banners bearing messages such as "Happiness is a result of hard work” and "Your dream to nice living is our corporate target”.

A back-of-the-envelope calculation shows that each of the company workers was entitled to a bonus of some 60,000 yuan, or double what was offered last year.

That works out to about 5,000 yuan per month in extra payment – not bad at all.

Better still, it marked the eighth consecutive year that the company has offered bonus to staff, with the cumulative payouts coming to around 900 million yuan.

The Jiangxi steelmaker, in many ways, can be seen as an ideal enterprise that cares for its staff and believes in sharing its wealth.

Nanchang Changli also offered a salary raise for eligible staff and contributed to a filial piety fund to help the workers' aged parents.

In other initiatives, staff who had retired during the last financial year after crossing the age of 60 will also be entitled to a red packet of 5,000 yuan.

Nanchang Changli is expected to report another set of good financial results for 2018 after its profit tripled in the previous year.

The good fortunes, we'd like to believe, have a lot to do with the way the steelmaker treats its staff and rewards them well.

Hong Kong businesses, please take note!

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EJ Insight writer