Recently an internal email titled “Huawei will implement annual salary management for eight gifted new recruits” has been a trending topic on popular social media platforms. The email indicates that Huawei has put increasing attention on technological innovation and attracting the world’s top talent. Huawei has therefore decided to lure top talents by offering higher salaries.

The annual salary of those 8 top roles were determined by the company as follows:

  • The top salary level is 1,820,000-2,010,000 RMB ($258,700-$285,700) per year (two persons)
  • The second level is from 1,405, 000 to 1,565,000 RMB ($199,700-$222,400) (two persons)
  • The third level is 896,000-1,008,000 RMB ($127,300-$143,200) (four persons). Read more on EDN.

These top talents are all recent Ph.D. graduates from top universities in 2019 such as Chinese Academy of Science, Hong Kong University of Science and Technology, Peking University, Zhejiang University, Tsinghua University, University of Science and Technology of China respectively. Most of their professional major involves automation, robotization and artificial intelligence. However, their annual salary is far more than the average in the similar fields, which is why this news attracted extra attention.

The CEO of Huawei revealed that Shenzhen-based Huawei will hire 20-30 “young geniuses” around the world this year in a bid to build up their “combat capabilities” and until 2020, they are planning to recruit another 200-300 talented persons. The email revealed Huawei’s commitment to bringing top talent and is willing to display their motivation to to explore and invest in such talents to re-activate the rest of the company.

However, Ren, Huawei’s CEO also pointed out that based on data, the average turnover rate of doctoral staff of Huawei’ R&D department has reached 21.8% in the past five years. Also, the proportion of PhDs who have been staying in Huawei for four years is less than 60%. Hiring talent may not be hard but keeping is a different story and a challenge they have yet to overcome. Ren mentioned they need to be aware of the seriousness of the talent and knowledge loss that this causes. At the foundation of the people strategy, one can see it is not only hiring but also keeping their talent happy. Read more on EDN.

Talent loss is one of the most concerning challenges for Huawei. Therefore, they need to concentrate on how to improve talent management.

In fact, Ren already realized the importance of training the talent in 1996, he said:

<center>“the training work is very important and training is the ladder to tomorrow.” </center>

Huawei University was founded in 2005. Huawei attached high importance to creative and applied talent training. Huawei University is considered to be part of Business Group (BG) and the aim of the Huawei University is to empower its personnel and managers, learn the company’s organizational experience and manage the company’s intellectual assets. They teach their personnel through real case studies and they used E-learning in an early stage, which efficiently solves the problem of large amounts of content. In addition, Huawei University also has a good technical means called LVC (Live, Virtual and Constructive), which is a virtual classroom system developed by Huawei itself. These several technical means formed a blended learning method. Read more on Sohu.

「ATIOM TAKE」: Usually the employees’ salary situation is confidential, however, Huawei's unveiling of the annual salary plan has some meaningful take-aways. Firstly, it raises the public attention and has become a hot trend on different social media which shows their high emphasis on top talents. It may also be considered a marketing strategy to promote the companies reputation. Will this put pressure on the HR departments of other companies and how they treat their talents in the future? From this Huawei case, we can find out the importance of the AI-related field and the impact it has on company development. This case highlights the importance of having a strong training and development plan to retain the top talents.

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