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The Lunar New Year is approaching, and it is time to do the annual year-end review and look forward to new goals. Recently, a piece of news that "a cross-border company in Shenzhen has received nearly one million yuan in year-end bonuses, and the highest employee dividend has exceeded 390,000 yuan" has swept the cross-border circle. While many cross-border people are envious, they also observe that in the past year, there are many cross-border companies that have issued high bonuses to motivate employees. In addition, many large companies have adopted employee stock ownership plans to attract, retain and motivate core talents: In June 2022, Anker Innovations released a draft restricted stock incentive plan; In October 2022, Huakai Yibai announced a draft employee stock ownership plan; In October 2022, Jihong Shares issued an announcement on the third phase of the employee stock ownership plan This shareholding plan means that employees not only have the right to receive labor remuneration according to their work, but also have the right to obtain the benefits brought by capital appreciation, thus establishing a deeper community of interests with the company. It can be seen that as competition among cross-border enterprises becomes increasingly fierce, boutique and branded operation routes have become the mainstream of the market. Cross-border enterprises have a stronger demand for high-level talents and are willing to introduce more incentive systems to encourage the enthusiasm of talents. However, a seller recently revealed that a cross-border company took a unique approach and introduced a bizarre negative incentive mechanism. Negative incentive mechanism emerges in cross-border companies? It is learned that a few days ago, a seller posted an announcement of Amazon Cross-Border Company’s 2023 incentive mechanism: The company's operating commission will be settled at 3% of the amount received (the amount transferred from Amazon to the company's designated account) . If there is a monthly loss, the commission ratio will be halved (for example, if the commission is 3, it will be settled at 1.5, and if the loss exceeds RMB 50,000, the commission for that month will be cancelled).
- If the sales volume is achieved and the annual profit margin is above 10%, different levels of annual bonuses will be given in US dollars: RMB 20,000 for RMB 800,000, RMB 35,000 for RMB 1.1 million, RMB 50,000 for RMB 2 million, RMB 70,000 for RMB 3 million, and RMB 100,000 for RMB 4.5 million or more.
- If sales volume is not achieved or profit is lower than 8% target , there will be a negative incentive of 5,000 for sales volume below 800,000 USD, 10,000 for sales volume below 1.1 million USD, 20,000 for sales volume below 2 million USD, 30,000 for sales volume below 3 million USD, and 40,000 for sales volume below 4.5 million USD.
▲ The picture comes from Weibo Since the "negative incentive" mentioned in this incentive mechanism is a new concept for many sellers, there are different opinions on it. I found the explanation of this word in the encyclopedia: Negative incentive means that when the behavior of organizational members does not meet the organizational goals, the organization will punish or criticize them to weaken and disappear, thereby suppressing such behavior. Combining the seller's analysis and the amount mentioned after "negative incentive" in the announcement, the "negative incentive" is likely to mean "rebate". Since the cross-border company that issued the announcement has not yet been contacted, the explanation of this term here can only be used as a reference. In general, many sellers are opposed to the incentive mechanism mentioned in the announcement: "After the full year's accounting, we still don't make any money and still owe the company money." "This company's announcement is disorganized and the written expression is confusing. It looks unreliable. It's better to run away." “It’s just an ineffective incentive system.” Some sellers also mentioned that in the cross-border industry in 2022, there are many ineffective incentive systems like this. Some companies have not even formulated clear incentive systems, and will find various excuses to withhold commissions and reduce operating base salaries. At the beginning of the new year of 2023, an operator revealed that he had encountered a workplace problem where his base salary was reduced by 20%. The basic salary of operations staff is reduced by 20%! It is learned that recently, an operator reported that he was summoned for a talk by his boss’ wife after New Year’s Day . The boss wanted to reduce his base salary from 7,000 to 5,600, and seemed to want to let him go if he did not agree to the salary reduction. ▲ The picture comes from Zhiwubuyan The operator said frankly that he had long anticipated that there would be a day when his base salary would be reduced. His commissions had been decreasing since he had previously performed well: "When I was converted to a regular employee, my boss thought my base salary was too high and was unwilling to pay for my social security. During the job interview, he clearly said that the freight would not be deducted. Later, when I wanted to get a commission due to good performance, the boss still deducted the ocean freight from the payment. After that, the commission went from monthly to quarterly, and then to annually." In this regard, many cross-border people are dissatisfied with his experience: "The boss is not very ambitious and what he does is meaningless!" "It's really too much to get commission once a year. It's already very uncomfortable to get it once a quarter." Many operators also said that they had encountered similar things: "I'm currently experiencing the same thing as you. The results of a year of hard work have been cut in various ways. I always thought that if I invested 1 million, I would get 1 million back immediately, and I didn't even think about calculating the profit once a year." "I encountered basically the same thing, but I was in charge of a project with an annual sales of 8,500 yuan. I started from scratch after I came here. Now I encounter this kind of thing, and it is even more difficult to make a decision. There is no way to deal with it." Looking back at 2022, the cross-border recruitment market has been cold, with salary cuts and job reductions becoming a trend. There are also many cases of disguised salary cuts. According to data from Zhiyouji, as of December 2022, the number of positions operated by Amazon has dropped by 69% compared with the same period in 2021, and the average salary has dropped by 13% compared with 2021. ▲ The picture comes from Zhiyouji
The reason is that the popularity of the cross-border e-commerce industry has faded, and the weakening of consumer power under inflation is the main factor. As the saying goes: To resist foreign aggression, one must first stabilize the internal situation. In such circumstances, a reasonable commission system and incentive mechanism, like the propeller on a ship, is not only the key to reconcile the contradictions between employees and the company, but also the key to promote the growth of cross-border enterprises. Therefore, some senior sellers bluntly said: Setting up a reasonable commission system and incentive mechanism requires two-way communication between the company and employees. It is unreasonable to simply blame the company or rely on operations. Only when the company and employees are of one mind can the operation strategy be adjusted to maximize performance growth. What do you think the incentive mechanism should be set to be reasonable? Welcome to discuss in the comment area~
Bidding farewell to 2022, a year of both danger and opportunity, cross-border merchants usher in a new journey in 2023 What changes have taken place in the cross-border market landscape in 2022 ? How to embrace new development opportunities in the new year? The 2022 Cross-border E-commerce Annual Report is released
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