In less than a week, Xiaomi has generously donated stock to employees twice in a row. This Bora hatred operation has a full score, and it has become a veritable company of others, which is enviable.
First, on July 2, a total of more than 70 million shares were awarded to 3,904 employees, of which about 700 outstanding young engineers were selected into Xiaomi’s latest talent incentive program “Young Engineer Incentive Plan”, and they will receive a total of 16.042 million shares; later On July 6, it was awarded to technical experts, middle and high-level core managers, and the first batch of candidates for the New Decade Entrepreneur Program, totaling 122 people, and rewarded 120 million shares of Xiaomi.
Obviously, Xiaomi’s unprecedented talent incentive is enough to inspire people and help improve the morale of the internal team. So the question is, why does Xiaomi reward young engineers and core backbones?
Xiaomi launches equity incentive combination punch
To a certain extent, stocks are equated with real money. Based on Xiaomi’s latest share price of HK$26.2 as of the announcement date, the equity incentive on July 2 cost a total of HK$1.84 billion, with an average per capita HK$470,000, of which 700 employees selected for the “Young Engineer Incentive Program” were rewarded about HK$600,000, above average. The equity incentive on July 6 was even more attractive. 122 people liked to raise 120 million shares, totaling 2.56 billion yuan.
Unlike many listed companies’ equity incentives, which require employees to buy stocks at a discount, Xiaomi directly sends stocks to employees. Yes, you read that right, Xiaomi buys stocks out of its own pocket to give to employees who have made great contributions, and motivated employees can share the development results with the company without spending a penny. What is even more rare is that as Xiaomi continues to grow bigger and stronger, the future stock price performance of Xiaomi is worth looking forward to, and the stocks in their hands have a large room for appreciation.
According to my observation, Xiaomi launched a combination of equity incentives, which mainly has two characteristics:
1. The scale of incentives is large. 3,904 employees and 122 core backbones received equity incentives, that is, a total of more than 4,100 people were rewarded, covering a wide range. Among them, the Young Engineer Incentive Program was led by Lei Jun himself, and the first batch of nearly 700 people covered R&D engineers, testers, product managers, designers, etc., from chip R&D, machine learning and algorithms, software and hardware development, cloud computing, system architecture, image processing, etc. , material technology, operating system, image training, interaction design and many other cutting-edge positions, of which the youngest selected employee is only 24 years old.
It can be seen that Xiaomi’s multi-level talents will benefit from it, with a total cost of nearly 4.1 billion yuan, which is very generous, and it is also very hard to build a sustainable innovation partner group. At the same time, Xiaomi’s current wave of equity incentives has a clear focus, which not only strengthens the background and strength of Xiaomi’s technical team, ensures the stability of the middle and high-level teams, but also lays a solid foundation for the future echelon construction of the middle and high-level teams. The energetic young engineers will one day rise to the next level building.
Second, show cohesion. Although the young engineers received short-term incentives, I believe that the reason why they emerge is not only due to their outstanding business capabilities, but also very optimistic about the company’s development prospects, and they may hold Xiaomi stock for a long time in the future. At the same time, the 120 million shares obtained by the core backbones have a 10-year lock-up period, which means that they are deeply bound to the company, enabling them to grow and profit together with Xiaomi.
It is worth mentioning that the 122 people include the first batch of candidates for the New Ten-Year Entrepreneur Program. They closely linked Xiaomi’s mission with their own life values, and encouraged them to meet for ten years and strive to the end with an entrepreneurial mentality and commitment. This also fully demonstrates the cohesion of Xiaomi’s core team and their confidence in Xiaomi’s future development. More and more core backbones dare to make a ten-year appointment and join the team that is struggling with Xiaomi.
Just imagine, when the personal value of employees and the value of the enterprise are positively correlated, why does the enterprise have no innovative atmosphere and combat effectiveness?
Why does Xiaomi invest heavily to motivate talents?
Anyone with a discerning eye can see that Xiaomi’s move is intended to use generous benefits to retain technical talents. After all, talking about dreams and benefits is doomed to fail, but its intention is more than that. There are three in-depth considerations:
1. Open the way for the new decade. In 2020, on the occasion of the tenth anniversary of Xiaomi’s establishment, Xiaomi proposed three major iron laws-technology-based, cost-effective as the key link, and making the coolest products. The launch of the equity incentive plan this time is behind Xiaomi’s focus on R&D, technological innovation, and product strength, aiming to seize the commanding heights of technological innovation in the new decade. Under the reward, there must be a brave man. Xiaomi’s perfect incentive system will help to build a world-class technical team and become the world’s leading technology company.
At the same time, in 2020, Lei Jun set the tone for Xiaomi’s new decade-restarting business. Entrepreneurship must not only endure hardships, but also pay attention to enjoyment. Strengthening the incentives for talents, especially technical talents, has become an important means to tap new talents and continuously improve the vitality of the team. By giving rewards to similar early-stage entrepreneurs, we encourage them and the company to draw a bright blueprint for the next ten years, and share the value of company growth while driving the company forward.
2. Global talent demand. In August last year, Xiaomi’s core strategy was upgraded to “mobile phone × AIoT”, and in March this year, it officially announced the official car production. In view of the fierce competition in the three major tracks of mobile phones, AIoT, and new energy vehicles, Xiaomi wants to win these three battles at the same time. It is inseparable from the accumulation of rich top talents. The accumulation of talents is nothing more than two ways of external recruitment and internal training. Xiaomi has adopted a two-pronged approach, which not only recruits 5,000 engineers externally, but also reserves technical talents with attractive benefits.
The magic weapon for attracting technical talents is nothing more than interests and a sense of achievement. Young engineers care more about interests, and core backbones pursue a sense of achievement. Xiaomi has been extremely accurate in their demands. The Young Engineer Incentive Program is mainly aimed at young people who value tangible and visible benefits, and this short-term incentive allows them to obtain another income in addition to their annual salary. On the other hand, the core backbones are often not short of money. They are eager to do one thing. Xiaomi has made a ten-year agreement with them to inspire them to advance and retreat with the company and work together to create more impossible.
3. Practice social responsibility. The greater the ability, the greater the responsibility. The social responsibility of the enterprise is not only reflected in the products and services to the public, but also in the cultivation of talents. This wave of equity incentives by Xiaomi mainly rewards those technical talents who have made outstanding contributions, which means that a large number of talented people have been cultivated in the Xiaomi system. This is not only a valuable asset of Xiaomi, but also indirectly creates value for the society.
At the same time, people are going high. Looking at the domestic mobile phone industry, there are not many players with stronger comprehensive strength than Xiaomi. The burden of talent training naturally falls on Xiaomi itself, which is also its due responsibility and example as an industry leader. It is an indisputable fact that attractive benefits are the catalyst for accelerating the growth of talents. The Xiaomi Equity Incentive Plan can encourage talents to strive for the first place and build a global innovation base, which is also in line with the expectations of the entire industry and itself.
Xiaomi advocates technology and establishes a business
Xiaomi advocates technology to start a business, and has always attached great importance to the investment and incentives of technical talents. In 2018, on the eve of Xiaomi’s listing, it granted option incentives to thousands of core engineering and technical talents. After the listing, Xiaomi has also granted share awards many times, 5 times in 2020 alone. In 2019, Xiaomi established a group technical committee and launched the “Million Dollar Technology Award”, which is the highest technology award within Xiaomi.
In my opinion, Xiaomi’s emphasis on awarding technical talents is ultimately due to the company’s genes. At its core, it is an innovative technology company driven by technology. As early as the beginning of the business, the founder team all had technical backgrounds. Almost all the first 100 employees were technicians. Now there are more than 20,000 employees. Technology has become the blood of Xiaomi. the most important thing.
In fact, Xiaomi is technology-oriented, and the most intuitive performance is the continuous increase in R&D investment. The total R&D investment in the first three years of listing was 11.1 billion yuan. In 2018, 2019, and 2020, it was 5.8 billion yuan, 7 billion yuan, and 10 billion yuan respectively. This year, it is expected to increase by 30-40% year-on-year. At the beginning of 2020, Lei Jun said that Xiaomi will invest 50 billion yuan in “5G+AIoT” in the next five years, and most of the funds will be used for pure technology research and development.
High input brings high output, and Xiaomi ushered in a good situation in which the technology fully bears fruit. In April 2013, the first NFC-enabled mobile phone Mi 2A was released; in January 2015, Mi Note became the world’s first mobile phone with a 3D curved glass back cover; in October 2016, the world’s first full-screen mobile phone Mi MIX was shining debut; in May 2018, the world’s first dual-frequency GPS mobile phone Mi 8 came out, and in 2020, it will lead the industry in the fields of wireless charging and imaging. ． ． ． ． ．
Of course, R&D investment is not the only indicator to measure whether an enterprise has the ultimate pursuit of technology, and the creation of technology culture is also crucial. Companies with a strong technical atmosphere are often more attractive to engineers for the simple reason that they can not only do various technical explorations, but also provide engineers with a broad upward channel.
What is gratifying is that Xiaomi’s attraction to technical talents is constantly increasing. The establishment of the Group Technical Committee is to build a first-class technical team and culture. and other forms of rewards that allow technicians to gain honor and respect. It can be seen that Xiaomi’s concept of technical talents is to let young people shoulder the burden, give young people opportunities, and allow more technical talents to emerge.
Today, Xiaomi is committed to building a first-class technology culture and an excellent engineer culture. Engineers can concentrate on technology, with huge room for development and improvement, and can get the rich rewards they deserve. Looking forward to the next ten years, Lei Jun said, “The fire of innovation will illuminate every crazy idea, and Xiaomi will become the holy land that engineers yearn for.”
In other words, Xiaomi will give engineers a very high voice, and the free technical atmosphere is enviable. It encourages young people to innovate boldly and freely explore technological no-man’s land, in order to stimulate the innovation potential of engineers, and innovation will continue to flow. “Without top talents, innovation is water without a source and a tree without roots.” Xiaomi has stepped up efforts to motivate technical talents, precisely to make Xiaomi a holy place that engineers yearn for.
There is no doubt that if Xiaomi wants to maintain high growth in the new decade, maintain innovation vitality in the organization, and achieve sustainable product competitiveness, it must rely on strong incentives for technical talents and the incentive mechanism for the entire team. As Xiaomi gradually improves the incentive system and attracts the world’s top technical talents, its future can be expected, and the new decade will definitely become more and more brave!