Large employment cost survey: the company pays 16,000 employees to only a fraction of the time

The summary "does not raise wages, can't recruit people; wages go up, companies can't afford to eat" "cost reduction, other costs and drama, labor costs, I think it is difficult!" Reporters in Hangzhou and Jiaxing, Zhejiang Province, Zheng, Henan Province. ..
"Do not raise wages, can not recruit people; wages go up, enterprises can not afford to eat" "cost reduction, other costs and drama, labor costs, I see difficult!" Reporters in Hangzhou and Jiaxing, Zhejiang Province, Zhengzhou and Luoyang, Henan Province In the interview, the company generally reflected that the cost of labor increased rapidly, especially in the case of unsatisfactory corporate benefits in recent years, which puts greater pressure on enterprises.
However, unlike raw material costs and institutional transaction costs, most companies believe that labor costs, especially wage costs, are unlikely to be reduced. They only want to be able to control their growth rate not too fast, while reducing the costs associated with wages. .

The recession has also increased every year.
“In the past three years, the proportion of labor costs in total corporate costs has increased from 5.8% to 9.17%.”
"Although the company is losing money, it still raises wages every year." The person in charge of Zhejiang Zhenshi Group Oriental Special Steel Co., Ltd. has aroused the resonance of various companies. Almost all the companies interviewed said that the cost of labor has risen rapidly in recent years and has been rising in the proportion of corporate costs.
In Hangzhou and Jiaxing, the interviewed companies said that the current average salary of ordinary workers is about 4,000 yuan, and the skilled workers are paid at least 6,000 yuan a month. Most of them have to eat and wrap. "Our workers, the rest day is also managed by the company, and the quilts are also bought by the company." Wang Zhen, deputy general manager of Hangzhou Jinhang Packaging and Printing Co., Ltd. said.
Labor prices in the central region are not low. Luoyang Huacheng Office Furniture Co., Ltd. is a village and town enterprise. Zhang Huiqun, chairman of the board of directors, said that the average salary of enterprise employees is about 4,000 yuan per month. The wages of skilled workers have risen faster in the past two years. The person in charge of Zhengzhou Coal Mining Machinery Group Co., Ltd. said that the monthly income of the company's welders is generally above 6,000 yuan, and the excellent welders have to pay 10,000 yuan.
A number of companies said that employee wage growth is normal, but has risen faster in recent years. Zhengzhou Yalida Garments Co., Ltd. calculated the average salary of its employees in 2015 by 100% compared with the same period in 2012. According to the person in charge of the financial center of Yutong Bus Group, the labor cost per hour of the company has increased by 60% since 2011. This stage is precisely the period when the manufacturing industry is generally not prosperous and the operation is difficult. The pressure on the cost of labor is particularly obvious. Xu Lida, chief financial officer of Hangcha Group Co., Ltd. said that in 2013, labor costs accounted for 5.8% of the total cost of the company, and in 2014 it rose to 7.12%, and in 2015 it rose further to 9.17%. Xiao Xuebing, general manager of Zhejiang Wentai Communication Co., Ltd. said that labor costs have accounted for more than half of sales revenue in the mobile phone assembly industry.
The cost of labor costs is not small, but companies have indicated that they dare not raise their wages. "The welding technology has high technical requirements and high work intensity. Most young people are reluctant to do so. They will not raise their wages. They will not be able to recruit people." "There is a lot of salary increase every year, and there are still many cases where core employees leave."
In order to meet the needs of employment, private enterprises often have to pay higher wages. A person in charge of a company in Henan said, “In Luoyang, the state-owned enterprises will give more than 3,000 yuan a month. Young people may go. If it is a private enterprise, he may not go to this monthly salary, and he must raise his salary.”
During the interview, some companies said that relocation was also one of the reasons for the rapid rise in wage costs. In the past two years, many cities have planned to adjust and construct industrial parks, and manufacturing enterprises have moved out of the urban areas and moved to suburban counties or new industrial parks. “The more the company moves farther and farther, the higher the transportation cost and time cost of the employees, the higher the wages will not be given, and the more people will not be able to stay.”

The cost of attaching to wages is too high
A staff member with a monthly salary of 10,000 yuan, after deducting personal insurance contributions and personal taxes, etc., is 7300 yuan, and the company pays about 16,000 yuan to pay the employees. The wages are only part of the company's labor costs. Large chunks are labor costs attached to wages.
The person in charge of Hongfujin Precision Electronics (Zhengzhou) Co., Ltd. believes that the social security contribution rate is high, which increases the labor cost of the enterprise. "According to our local social security contributions in 2015, pension insurance 20%, medical insurance 8%, as well as work injury, maternity, unemployment insurance, plus housing provident fund, the company's five insurance and one gold contribution rate reached 37%. Individual employees Social security and provident fund are also required to be paid. The company and the individual add up to 55% of the payment rate of the five insurances and one gold.” The company believes that higher social security rates affect the enthusiasm of enterprises to raise wages. "If we give employees an increase of 100 yuan, the company will have to pay an additional 37 yuan for five insurance and one gold. The total labor cost will increase by 137 yuan, and the individual employee will have to pay another 18 yuan. The actual disposable is finally available. The income is only 82 yuan, which only accounts for about 60% of the labor costs paid by enterprises."
The company also complained that the social security contribution base was “increased”. At present, the lower limit of the social security payment base in China is implemented according to the local social average wage of 60%. Many enterprises, especially labor-intensive small and micro enterprises, have lower wages than the contribution base and the growth rate is lower than the average social wage growth rate. Payments are growing, and the actual income of employees has decreased. The enterprises in Zhengzhou have settled their accounts. From 2011 to 2014, the average wage of the local society increased by 10.8% annually, reaching 49,279 yuan in 2014, but most small and micro enterprises can't keep up with this pace. In 2015, the minimum wage in Zhengzhou was 1,600 yuan, while the minimum base for social security contributions was 2,464 yuan. If an employee with the lowest wage level pays the provident fund at a rate of 8%, the individual has to pay about 380 yuan for the five insurance and one gold fee, and the enterprise has to pay another 900 yuan for it, totaling 1,180 yuan. More than 70% of his salary.
In addition to social security, enterprises also need to pay disability protection funds and union fees according to the scale of employment. Zhengzhou Nissan listed a labor cost table: an employee with a monthly salary of 10,000 yuan, after deducting the social insurance and individual taxes paid by the individual, the portion that was obtained was 7,300 yuan, and the enterprise paid a total of about 16,000 yuan.
In addition, state-owned enterprises also undertake some of the functions of “organizing the society” and also increase the cost of enterprises. The person in charge of China Yituo Group said that the company has more retirees than the employees on the job. Although the pensions for retirees have been socialized, some of the benefits are required to be borne by the company. For example, the stipends of employees who have continued in the planned economy period will only pay 30 million yuan a year. The enterprise also undertakes some social functions and increases the cost of labor. “The houses that were built up in the 1950s and 1960s were not able to be handed over to the municipal government, and they were hired to repair and manage.”

"Machine substitution" has become a trend. Enterprises generally believe that wages are impossible to drop, and the key is to increase labor productivity.
How is the cost of labor reduced?
Faced with this problem, many companies interviewed bluntly said, "Wage is impossible to fall. In the past two years, enterprises have difficulties. It is not bad to raise wages too fast." After all, economic development will eventually make people better. day. Enterprises believe that despite the high labor costs and rapid growth, it is unlikely to reduce costs by lowering wages. The person in charge of AVIC Lithium said: “Employees create value, and enterprises must recognize this.” Moreover, the current demographic structure changes, and the relationship between labor supply and demand is gradually shifting from the “buyer market” of the past to the “seller market”. The problem of sexual shortage is becoming more and more apparent. In this market environment, it is not realistic to reduce wages. The person in charge of Jiaxing Yajie Jet Weaving Co., Ltd. said that at the beginning of this year, the company recruited skilled workers and encountered difficulties. The wages and salaries went up, and only enough people were recruited.
Increasing labor productivity has become the choice for most companies to reduce labor costs. Many manufacturing enterprises in Zhejiang and Henan are promoting “machine substitution”. Xiao Xuebing said, "As long as we can replace the manual with a machine, now we all tend to use the machine." For example, in the test section of the mobile phone motherboard, after updating the equipment, the work of a dozen people was originally required, and now it is handed over to one person for operation 4 The machine is ok.
Another aspect of improving labor productivity is to strengthen training and improve skills. However, companies have expressed their distress. For example, Wang Zhen said that Jinhang Packaging specially recruited 14 college graduates as the key training targets in 2014, and hired a tutor for these 14 people with an annual salary of 120,000 yuan. Unexpectedly, six people offered to resign at the end of the year. By March of this year, only two of the 14 people were still in the company. “Cultivate one and one, how can enterprises still have the motivation to train employees?” The company recommends that the state increase the training subsidies of manufacturing enterprises, which can not only reduce the cost pressure of enterprises, but also help improve the skill level of workers. “The substitution of machines is a big trend. What should we do with the employees who are replaced? Our company is willing to do training to turn employees who have been engaged in simple labor into technical workers in the past, and hope to get support from relevant parties.” Hong Fujin said.
During the interview, the companies felt that the social security contributions rate was high, but they emphasized that social security treatment could not be reduced. “Social security has to protect the future life, but it is necessary to ensure that its water is steadily improving.” “We are executives, but after 60 years old. I also have to rely on pensions to live, and I don’t want to drop.” Since May 1 this year, the state has lowered the social security rate while ensuring that social security benefits are not reduced. The pension insurance unit’s contribution rate is 20% and the fund’s accumulated balance can be paid at the end of 2015. In provinces with more than 9 months, the number can be reduced to 19%. There are 20 provinces in Henan and other countries that meet the conditions of reducing the proportion of pension contributions to 19%.
However, some companies in the survey believe that a 1 percentage point reduction does not quench their thirst. At present, the payment rate of employee pension units in Guangdong and Zhejiang enterprises is 14%, and enterprises in other provinces are envious.
Some companies have also suggested that the cost of controlling labor can be considered from the perspective of urbanization. At present, the main body of frontline workers in manufacturing enterprises is migrant workers. Companies need to stabilize their workforce, rather than recruiting people after the Spring Festival. If migrant workers have no sense of belonging in the place of employment, housing, medical treatment, and schooling for children will not be properly solved. It will be difficult to stabilize, and their own living costs will increase, which will indirectly increase the cost of employment.

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