Huawei staff told Netease Technology that Honor changed the way it is motivating and assessing employees. The Honor department is relatively independent, with separate financial statements and control of overseas operations. The most obvious change for employees is that the “year-end bonus” has chenged into a quarterly-bonus, which is linked to user service instead of rank and seniority.
Honor now uses a simplified method for assessing employees and awarding bonuses. It also adjusted the percentage drawn from mobile phone sales. The adjustment is intended to scale up sales. Huawei’s Ren Zhengfei reportedly approved the adjustment program.
Commissions within the Honor department are based on sales volume, regardness of price or model. In other words, Honor staff will be judged by their contributions to service users. After completing the company’s given profit, the more service users they have the more bonus money they will receive, with no upper limit.
Honor staff said the scheme is simple, and the simplified bonus makes it faster to redeem. As long as the company receives a sales payment, the bonus is issued immediately.
“This means that no matter whether you are Level 13 or any other level, as long as you do a good job and makes outstanding contributions, the Level 13 employees will get the same bonuses as those at Level 23,” the Huawei employee said.
(Netease Technology reported the bonus for a Level 23 employee may exceed 1 million yuan.)
Honor changed its annual bonus to quarterly bonuses. “Among senior Huawei staff, there is a saying that our annual bonus is not a year-end bonus but a mid-year bonus. That is to say you won’t receive the last year’s bonus until the September or October of this year. It’s the first time in Huawei’s history that the company has released a year-end bonus so early,” the Huawei employee said.
To this end, the Honor will have separate financial statements.
In addition, Netease Technology learned that Honor will take back marketing and sales organizations overseas and will independently operate the global Honor brand.
“In 2017, Honor has such great performance and its sales are far beyond all expectations. It achieved the goal of becoming China’s first Internet phone brand. The boss set a new target for Honor, which is to expand overseas and become one of the Top 5 brands within three years. That’s why Honor has some supporting policies,” Honor staff told Netease Technology.
In June, Zhao Ming, the president of Honor, said in terms of sales and sales volume Honor is China’s largest Internet phone maker.