Analysis Of The New Labor Law Will Increase The Cost Of Shoe Enterprises

About the new labor law, the first thing that caused much controversy was HUAWEI. In October, the HUAWEI company dismissed more than 5000 old employees at one stroke and then went back to work.

Then, WAL-MART, Sinopec, nine dragon paper, Luzhou Laojiao, Guanlan everhui, and many other companies, have burst out the tide of employees.

These are typical enterprises.

In addition, there are also some typical areas, such as the shoe market of Guangdong, which are facing collapse. It is said that the new labor law is the last straw to crush camels after the appreciation of RMB.

Earlier, when we analyzed HUAWEI, we also said that HUAWEI's elimination of labor number culture is just a cover, and the reason for not exporting is for the cost and profit of enterprises.

Then, how much increase will the new labor law bring?

This should be divided from the length of time. If 1 years are regarded as short term, 5 years as medium term and 15 years as long-term, the cost changes in human resources may be like this.

1, short term.

The cost is expected to increase by 3%.

In terms of explicit human cost expenditure, it will not change, but it may bring hidden expenditure, for example, a small number of people who have already been turned into life contracts in the company, the working pressure may be reduced, overtime time will be reduced, work enthusiasm will be reduced, and the driving effect will be triggered.

2, medium term.

At this time, at least 1/3 of the company's employees turn to life contracts, and those who work hard will be less efficient. The cost will increase by about 10-15%.

3, in the long run, explicit and implicit costs will be further improved, which will increase the cost of human resources by more than 25%.

If a company's wage costs account for 15% of the cost of all products and services, the total cost will increase by 3.75% in the long run.

At present, the profit margin of China's electronic enterprises is between 3-4%. If the price of products does not increase, most enterprises will fall into losses.

Of course, this is only from an enterprise perspective.

What if we look at it from a national perspective?

The state will lighten the enormous social burden.

If an enterprise can casually dismiss a worker, then no business owner will like the old, weak and disabled employees. 40-50 of the employees will be kicked away.

But the huge number of these vulnerable groups can not be borne by any society or any country.

From a brand perspective?

1, products lacking brand value added are more difficult to survive.

The shoe market of Guangdong is facing collapse because most of them lack brand, but do processing trade. The profit is generally 6 to 10 percent.

After the appreciation of RMB, the profit will drop to 0% - 2%. After the implementation of the new labor law, enterprises will die in large numbers.

2, repressive brand management will not last long.

In the past, the brand building of the company was a matter of the boss and the planning department. Employees were too weak in the business and often chose not to voice.

When employees' rights and interests are guaranteed, employees will send their opinions to the brand.

We often say that brand positioning is mainly determined by two factors, striking and real.

In the future, brand building will face greater challenges.