Aokang four strokes to deal with labor shortage: pay increase, red envelopes, affection, technology upgrades

On February 11th, the employee of Shaanxi Li who had worked for Zhejiang Aokang Shoes Co., Ltd. for 3 years got a red envelope of 200 yuan. Under the temptation of “dividend”, after the Spring Festival, Li Xing’s employees came to the company to report early. Not only that, he also brought two fellows.

Just after the Spring Festival, "labor shortage" once again attacked labor-intensive industries in Jiangsu and Zhejiang. In order to attract employees, enterprises racked their brains and they tried their best to retain old employees and attract new employees.

A person from Zhejiang Aokang Shoes Co., Ltd. told a reporter at the International Finance News yesterday that in order to retain employees, the measures introduced by the company include "everyone has red envelopes," "three days of triple wages," and "keep an Internet cafe". "Matchmaker Club" and so on.

Not only that, Fan Manru, the general manager of the company’s Qianshi Footwear Manufacturing Center, explained that in order to prevent the loss of employees, the company adjusted its employees’ wages as early as the end of last year, and the increase rate was more than 20%. Prior to the Spring Festival holidays, the group was also divided into 8 groups by region. The team leader is responsible for the daily contact of returning employees in the region.

“As of now, the rate of returning employees has reached more than 98%, and some of them are on the road and they will continue to work.” Fan Manru said that only one day yesterday, the company recruited 150 employees, as a staff reserve.

In fact, the "labor shortage" is not just a problem in the Pearl River Delta and the Yangtze River Delta, but it has spread to the whole country. With the increase in labor costs, "labor shortage" is almost equal to industrial restructuring.

Tang Min, a prominent economist, said that this year's "labor shortage" is caused by the large-scale transfer of coastal enterprises to the interior, and many migrant workers are employed at their homes. On the Other hand, the cost of living in the coastal areas has increased and migrant workers' wages have been relatively low.

For enterprises, reducing the number of workers through technological upgrading will become self-distribution due to cost considerations. This will help China's manufacturing industry upgrade. In this regard, Fan Manru said that the company will then update equipment to increase labor productivity. "Although only a small number of machines have been replaced, the efficiency of labor has been increased by more than 10%, that is, employees have had 10% more free time."