Pay & Reward for Huawei Technologies, Co., Ltd.

Pay & RewardforHuawei Technologies, Co., Ltd. By: Elaine Ng Mercer Executive Resources Consulting (MERC) Tel: 852-2115 2088; Email: enskcrg@netvigator.com

設定薪酬結構Developing Salary Structure

設定薪酬結構之考慮因素Developing Salary Structure- Considerations • Base Pay Policy 基本薪酬政策 • Decide Competitive Reference Salary 決定具有競爭性的標準工資 • Decide Salary Ranges 制定工資幅度 • Range Overlap 幅度重疊 • Significance of Salary Range 工資幅度的重要性 • How many structures? 多少個結構? • Overs and Unders高出/底於工資幅度

薪酬政策 Compensation Policy $ 标准工资 Reference Salary Grade 级别 • 定下最经济的标准工资以支付公司架构图 • Define the most economic reference salary to pay for the organization chart • 建立最少增加幅度之标准工资 • Establish the smallest possible increase of reference salary

中國市場數據 Market Data on China - 上海製造業Shanghai Manufacturing WOFE (1)Data as at April 1999 RMB 90百分比 90th Percentile 75百分比 75th Percentile 中位數 Median 25百分比 25th Percentile 10百分比 10th Percentile Position Class

中國市場數據Market Data on China - 上海製造業Shanghai Manufacturing WOFE (2)Data as at April 1999

貴公司以及市場比較Your Company vs the Market Comparison RMB 75百分比 75th Percentile 中位數 Median 貴公司回歸線 Your company trendline 25百分比 25th Percentile Position Class

貴公司以及市場比較Your Company vs the Market Comparison

基本薪金政策 Base Pay Policy • LAG落后 • LEAD领先 • LEAD-LAG • 落后-领先之间 1320 1100 900 1200 1000 800 年初年中年末 Start Year Mid End Year 1320 1100 800 1320 1100 800 年初年中年末 Start Year Mid End Year

建立竞争工资Develop Competitive Salaries 一个等级 = 一个标准工资 One Grade = One Reference Salary 标准工资 = 竞争报酬 = 招聘标准 Reference Salary = Competitive Pay = Recruitment Standard RMB Grade PC 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 Grade or Position Class

Grade 利用幅度制定工资架构Develop Salary Structure with Ranges RMB a b c = Mid-Point Progression 中点增加率 a1 - a2 = b1 - b2 = Range Spread 幅度 c1 - c2 = } • Question: • How much should be the mid-point progression (%) between grades? • How wide should the ranges be? • How much should the range overlap?

制定幅度Developing Salary Range 由中点开始 (或标准工资) • Start with Mid-Point (or Reference Salary) 决定幅度 • Decide Range Spread 定最低工资 • Establish Minimum 定最高工资 • Establish Maximum

Rmb 1,000 E.g. = 50% ( 1 + ( 2 Rmb 1,000 50% ( 1 + ( 2 Rmb 1,000 = = 1 + (25%) = 1 + = 1 + 0.25 = 1.25 1.25 25 100 Rmb 800 = 定最低工资Establishing Minimum Mid-Point 中点最低 Minimum = Range 幅度 ( 1 + ( 2

1 + 50% = 1 + = 1 + (0.5) = 1.5 50 100 ( ( 定最高工资Establishing Maximum 最高最低幅度 Maximum = Minimum x (1 + Range) = Rmb 800 x (1 + 50%) = Rmb 800 x 1.5 = Rmb 1,200 幅度 Range = Minimum Rmb 800 最低 Mid-Point Rmb 1,000 中点 Maximum Rmb 1,200 最高

中点增加率Mid-Point Progression Moderate 稳健的 Gradual 逐渐的 Steep 陡斜的 30% 30% 15% 15% 10% 10% More grades 多级别 Less grades 少级别

2,700 2,250 1,800 1,800 1,500 1,500 1,350 1,250 1,200 1,200 1,200 1,125 1,000 1,000 1,000 900 800 800 Grade Grade = = 40% = = 67% 幅度重叠Range Overlap 1,875 RMB RMB 1,563 RMB 1,500 1,250 1,200 1,250 1,000 1,000 800 Grade Moderate overlap 适度重叠 25% jump each promotion 每晋升, 增加 25% Range overlap 重叠部分 = 40% 1,200 - 1,000 200 1,500 - 1,000 500 Big overlap 大部分重叠 12.5% jump each promotion 每晋升, 增加 12.5% Range overlap 重叠部分= 67% 1,200 - 900 300 1,350 - 900 450 No overlap 没有重叠 50% jump each promotion 每晋升, 增加 50%

幅度重叠Range Overlap (2) How much ? 多少一个级别的幅度一般不超过三个其他级别的重叠 The range span of any one grade should not overlap much more than three other grades

幅度的重要性Significance of Salary Range Maximum 最高点 Q4 Q3 一般期望 = 标准工资 Standard Expectation = Reference Salary - Performance 工作表现 - Competencies 技能 - Years in service 服务年期中点 = 竞争性工资 Mid-Point = Competitive Pay Q2 Q1 Minimum 最低点

多少结构How Many Structures? 市场特色 • Market Characteristics 内部平衡 • Internal Equity 外部竞争力 • External Competitiveness 管理概念 • Management Philosophy

等级 Grades 超过/低过工资幅度 Overs and Unders $ Reference Salary 标准工资中值前进 mid-point progression 用什么策略? What Strategies?

Pay & Reward for Huawei Technologies, Co., Ltd.