Many business leaders worry about not being able to recruit talent, but first they must understand that the company may lack not talent, but a mechanism for producing talent. How to retain talent and motivate employees to work with more enthusiasm and creativity? Before answering this question, let's look at four phenomena:

  1. Why could Qin Shi Huang unify the six states and become the first emperor? Because he adopted a farming-and-conquest mechanism, i.e., for every ten mu of land captured, three mu were given to soldiers; for each enemy killed, ten coins were rewarded.
  2. Why could Chinese farmers eat and dress well after the reform and opening up? Because farmers used to work for the production team, but now they work for themselves.
  3. Why do our bosses, with little external support, still work from dawn to dusk without complaint? Because the boss is making money for himself.
  4. Why can employees work day and night, forget to eat and sleep, be obsessed, and go all out? Because they are acting for their dreams and fighting for honor. From the above four phenomena, we can see that running a business is about managing people, and managing people is about grasping human nature and then satisfying it. A reasonable distribution system that meets people's needs is an essential incentive and value-oriented mechanism for a company. The distribution mechanism is the core mechanism of a company, mainly determined by the boss and middle and senior management. Before formulating the company's distribution system, the boss and middle and senior management must clarify: 1. What is corporate value; 2. Who creates value? Only the creators of value have the right to share it; 3. How to evaluate value? The evaluation principle reflects the company's value orientation and development strategy, determining the direction in which each value creator should strive; 4. How to distribute value, balancing external fairness, internal fairness, and self-fairness. After solving these four problems, let me tell you the specific operations for formulating a distribution system. Example 1: Incremental Distribution Mechanism 1. Problem: Output or sales are difficult to increase; the boss wants it badly, but employees don't. 2. Principle: Employees only put in normal effort for normal income. To get them to put in extraordinary effort, they must receive extraordinary rewards. 3. Specific Operations: Set a baseline for production or sales, then distribute a certain proportion of the excess to the parties involved. 4. Notes: (1) The portion given to employees should preferably be more than 50% of the net profit from the excess; (2) If possible, distribute daily; at the very least, monthly; (3) This mechanism suits all enterprises; (4) The boss must broaden his mindset. Example 2: Reduction Distribution Mechanism 1. Problem: Production and operating costs are hard to reduce. 2. Principle: People only care about things that relate to them. 3. Specific Operations: (1) Set a cost baseline, then take 50% of the monthly reduction and distribute it to the parties involved according to a certain proportion. (2) Set a personnel baseline for a department, let it survive the fittest internally, and give half of the saved base salary to those who remain. (3) For newly established companies, set a break-even period, then distribute 50% of the reduced loss to the team. 4. Notes: (1) At least half of the reduction should be given to employees; (2) This mechanism suits all enterprises. Through these two mechanisms, we understand that our company lacks not talent, but a mechanism for producing talent. Example 3: Lottery Distribution Mechanism Why is the lottery so popular? (1) Because you can win big with a small stake; (2) The redemption process is simple; (3) Immediate payout. 1. Problem: Excellent employees don't feel valued in the company, so they stop being excellent or change jobs. 2. Principle: Excellent employees hope to use their outstanding talents to get extraordinary rewards, thus remaining excellent. 3. Specific Operations: Operation 1: Set a standard for performance, and give the first place who meets that standard a super prize that month (at least 5-10 times the regular income). Managing people: grasp human nature, use mechanisms to control it. Pyramid Principle Operation 2: Select the first place in technology or service each month, give a big prize, and use mentorship culture to make them sacred. Operation 3: Establish a golden idea project—set big prizes in process flow, technological innovation, etc. That is, when someone proposes a suggestion in these areas, an expert group discusses whether it can be implemented and assigns someone to follow up on the results. Finally, distribute 10%-30% of the net profit generated to the proposer. 4. Notes: (1) The awards must be ones that excellent employees think are worth fighting for; (2) This mechanism suits all enterprises; (3) Pay out immediately. Example 4: Welfare Distribution Mechanism 1. Problem: When company performance rises, administrative and logistics staff feel unfair. 2. Principle: If it's related to them, they no longer complain but actively pay attention. 3. Specific Operations: (1) Conduct ideological education; (2) Set a performance target, and distribute 0.1% of the excess to administrative and logistics staff according to a certain proportion. (3) Give parenting awards to the parents of excellent employees among administrative and logistics staff; (4) On employees' birthdays, send gifts to their parents; (5) When employees win awards, deliver the prizes to their homes with great fanfare; (6) Invite the parents of excellent employees to the company's annual meeting and use the three cultures. Example 5: Mortgage Distribution Mechanism 1. Problem: Excellent employees are prone to resign before they can take charge independently. 2. Principle: People hope to use future chips to exchange for today's rewards. 3. Specific Operations: (1) Buy them a car or a house, promising that after working for the company for 5 years, the car or house will be transferred to their name. (2) Promise that after working for 3 years, they can get an extra year's salary. (3) If they work for 3 years and can take charge independently, open a store for them, and they get 30% of the shares; those who invest money can get more. (4) Promise that after working for 10 years, the company will provide a car worth 50,000 yuan. Example 6: Marriage Distribution Mechanism 1. Problem: When old employees or relatives can take charge independently but do not get the benefits they deserve, they will have a negative effect in the company. 2. Principle: Employees who can take charge independently hope for a stable and dignified future. 3. Specific Operations: Four-level shareholder system (including employees and relatives) (1) Performance shareholders (service shareholders)—become so due to excellent performance or service; (2) Auxiliary shareholders—can work in a certain sector of the company and take charge independently; (3) Leading shareholders—can play a leading role in the overall operation of the company; (4) Independent shareholders—can independently operate a company. 4. Notes: (1) Each level must have entry and exit mechanisms defined in advance, with written agreements and signatures (including for relatives); (2) Outsiders should preferably invest money to participate, while relatives should preferably not invest money. 5. Entry Mechanism For example, from non-shareholder to performance shareholder. (1) Work as operations manager or supervisor for more than one year; (2) The team's performance in the previous year ranks no lower than the top 30% of teams; (3) For logistics: within one year, based on market-oriented assessment, the average score is no lower than the top three; (4) Personal performance in the previous year is no lower than the top 10% of the team, e.g., no lower than the top 10; (5) The ideology and soul must be consistent with the team; (6) More than 60% of original shareholders agree. 6. Share Reduction and Exit Mechanism For example, the share reduction and exit mechanism for leading shareholders: (1) Those who exit midway only enjoy the current year's profit distribution, and the invested capital is not refunded. (2) If they can no longer take charge independently, the shareholder pays for someone to do the job, and goes to study for two years, during which profit distribution is unaffected. If they still cannot keep up after two years, shares are reduced as appropriate. (3) If the shareholder cannot work for the company due to force majeure, the shares are disposed of in the following three ways: A. Internal transfer at market value; B. If internal transfer is not possible, transfer to a natural person, subject to 60% approval of original shareholders; C. Diluted year by year according to the cooperation period; All shareholders must fill in a "Share Beneficiary" declaration, filed with the company. The disposal of the shareholder's shares is the same as in the third clause. 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