Click on the image for details Private Enterprise Internal Management Research/Pan Wenfu Who are wages paid to? This question seems simple: employees work for the boss, so wages naturally go to the employees. Could they go to someone else? In fact, paying wages is not simply compensation for labor, nor can it be a complete equivalent exchange. From a management perspective, wages are a management tool used to influence employees' thoughts and drive their behaviors. In simple terms, wages are used to win people's hearts. Therefore, in the matter of paying wages, besides the simple amount, there is much room for innovation in the form of payment. If optimized properly, it can enhance the influence of wages on employees' thoughts and behaviors to a greater extent. For example, in setting the recipient of wages, the traditional approach is simple: pay directly to the employee. But if we change our thinking and pay the employee's wages to their family members, allowing the family to share in the benefits of the employee's work, what would the effect be? Why Pay Wages to the Employee's Family? So, why pay wages to the employee's family? What benefits does this bring to the boss?
- The Supportive Relationship Between Employees and Their Families First, every employee has a family background (unless the boss only hires Sun Wukong, who was born from a stone). Employees have responsibilities to their families, and the wages they take home are used to support the family. In this sense, the wages the boss pays are actually for the employee's family. It can also be said that the boss pays wages, and the employee uses them to maintain the family's livelihood. In turn, the family supports the employee's work to varying degrees. For example, family members take on household chores so the employee can focus on work and rest. Or, when the employee works overtime and has little time for family, the family shows tolerance and encourages the employee to work hard and stay with the company.
- The Issue of Wage Information Transparency As family members, they naturally care about the employee's income, especially the spouse. However, not all employees truthfully report their wages to their families. It is common to underreport or not report at all. Some employees, due to limited ability, lack of effort, or deductions for mistakes, are unwilling to explain the real reasons to their families. Instead, they shift the blame to the boss, saying the boss is stingy and pays too little despite their hard work. This can easily lead to misunderstandings among the employee's family about the company and the boss, thinking the boss is too stingy, ignores the employee's value, or that the employee joined the wrong company. At best, they curse the boss; at worst, they advise the employee to find ways to take advantage of the company, thinking they shouldn't suffer losses. Some even urge the employee to resign. Sometimes, employees planning to leave may deliberately complain about low wages to gain family support for their job change. Additionally, from the perspective of traditional Chinese culture, considering the employee's family when paying wages is because the family is the true manager of the employee. The boss is at best the second manager. To effectively manage employees, it is necessary to unite with the employee's first manager, forming a triangular management relationship to achieve effective management. This triangular relationship is shown in the diagram below: [Diagram: Boss, Employee, Family] The formation of this triangular relationship not only stabilizes employees through positive reinforcement from their families but also increases safety leverage, reducing the risk of misconduct and sudden resignations to a certain extent. To truly establish this triangular management relationship, it is necessary to connect with the employee's family and introduce communication and benefit-sharing mechanisms, which is the purpose of paying wages to the family. So, how should wages be paid to the family? Directly splitting the money? That would likely cause employees to argue with the boss, so a mutually acceptable method must be adopted. 1. Separation Ratio Traditionally, 100% of wages go to the employee. Now, we can consider extracting 2-5% to give to the family, with a cap of 5%. 2. Budget Setting When making the annual wage budget, include this family wage portion. Before each payroll, set aside the family wage and do not include it in the employee's wage statement. Otherwise, employees will think the boss is using their money for favors. Instead, make employees believe the family wage is an extra contribution from the boss. 3. Usage Form The 2-5% extracted as family wage is only a few dozen yuan, at most a hundred or so. How to spend it? Should the employee's parents come to the company to collect this small amount? A better approach is to purchase physical goods and distribute them as welfare along with the wages. 4. Choice of Welfare Items When it comes to welfare, the boss might say, "We've done this before, but it wasn't effective; employees found it troublesome and preferred cash." Here, it's important to clarify: the cash in wages is for the employee, while the welfare items, as family wage, are for the family. So, the choice of welfare items should consider the family, not the employee. Generally, for parents, daily necessities like rice, oil, salt, sauce, vinegar, and tea are suitable. For spouses, items for spiritual life can be given. For children, children's food and toys are appropriate. These items are low in value, practical, and widely applicable. If the employee is local, the items can be distributed with wages. If items are heavy or the family is in another city, they can be delivered by courier. 5. Purpose of Distributing Welfare Items First, let the family directly feel the benefits. Welfare distribution, in traditional concepts, carries emotional elements, and both employees and their families are happy to accept it. It effectively promotes goodwill toward the company and the boss. Besides having the employee carry the items or courier delivery, the boss or senior executives can also personally deliver them. Of course, delivering welfare is just an excuse to maintain contact and communication with the family. As long as there are 2-3 meetings a year, employees will not dare to fabricate the actual wage amount. Ultimately, a triangular management relationship among the boss, employee, and family is formed, strengthening positive drive and increasing negative leverage. So, bosses should think: the same wages, no matter how much, if paid only to the employee, may not be enough; but if paid to the family, allowing the whole family to share the benefits, the driving effect will be much greater. Author: Pan Wenfu Originally a private business owner, managed a family-owned distribution company for many years, and concurrently served as business manager and trainer in several manufacturing companies. Research focuses on internal management of small and medium-sized private enterprises, with main topics including personnel management, cost control, management backend setup, and military veterans entering private enterprises. Continuously breaks down over 400 topics related to private enterprise internal management, maintaining material collection and solution updates. Click on the image for details The 3rd (CFIC) China FMCG + Internet Conference will be held in Chongqing in October 2017. At this conference, New Distribution has invited 1000+ distributors, 500+ brand owners, 200+ B2B platform founders, and 100+ investment and financing institutions to participate. The theme of this conference: New Forces, New Ecosystem. We will invite well-known domestic B2B industry experts, mentors, and B2B platform founders to discuss the following topics: Core Topics of the Conference:
How can the FMCG industry leverage B2B to achieve new growth opportunities?
How should the new supply chain behind new retail be built?
How can intra-city logistics help B2B achieve leapfrog development?
Highlights of the Conference:
The industry's first "2017 China FMCG B2B Industry Competitiveness White Paper"
Case sharing of excellent transforming distributors
Upgraded conference + exhibition, Hall 6 Internet Technology Exhibition strengthens networking
Leaders from well-known enterprises such as Alibaba Retail Link, Puhua Finance, Eternal Asia Supply Chain, Best Store Plus, Yijiupi, Unilever, Haiding Technology, and Yunmei Shares will deliver speeches and share pioneering views.
October 17-18, 2017 Chongqing International Expo Center Registration is now open. Long press the QR code below or click "Read Original" to register. Early bird tickets before September 15 enjoy a 30% discount! Add friend and note "Conference Registration" Click the links below to review the highlights of the first and second FMCG + Internet conferences: 2016 "FMCG + Internet" Summit Forum 2017 (2nd) China FMCG + Internet Conference Click the links below to review the highlights of the first and second FMCG + Internet conferences: 2016 "FMCG + Internet" Summit Forum -END-