Respecting Employees

At Youngor, there is no discrimination against potential employees based on geographical origins or employment history. People who join Youngor automatically become part of the Youngor family.

No Youngor employee is given special treatment. Managers and general staff must wait in the same line for dining and are expected to dine at the same place as all other employees. The managers and leaders make way for the general staff when they enter or exit company grounds in their vehicles in order to show respect for their peers regardless of their position within the company.

In the terms of the company’s share distribution, every employee is given a company share option plan after a year of work at the company, regardless of his or her position or geographical origin.

Through a five-level payment distribution scheme, employee satisfaction has remained high, and staff turnover rate has remained small (2% to 10%) for most of Youngor’s subsidiaries this year. This demonstrates the internal harmony of Youngor Group’s labor intensive enterprise.

Employee Care

Youngor’s income distribution and welfare system follow a five-point plan:
 
1) Distribute income according to performance and correlating with efficiency. This provides an incentive for employees to work harder and learn from the model members of the staff.
2) Use yearly bonuses to balances any unreasonable payment distribution in order to ensure each employee receives fair compensation for their work.
3) Distribute company profit through shareholder’s meetings, thus reinforcing the Youngor employees’ sense of ownership.
4) Distribute dividends according to employee share of Youngor stock in order to supplement income.
5) Provide relief funds to Youngor employees who have been afflicted with serious disease or injury, totaling millions of RMB if necessary.

With regard to health care, Youngor arranges medical examinations for each of its employees. These examinations are given once per year for employees aged 35 years or above; and once every three years for employees under 35 years of age.

In addition, Youngor provides a ticket-booking service and arranges chartered buses to its Spring Festival evening dinner party and to other activities that are arranged for those who remain by their posts over the holiday. This way the employees can enjoy the Spring Festival in a “home away from home.”

Creating a Hospitable Working and Living Environment

Youngor has invested heavily into introducing the most advanced equipment in the world into its facilities, including smart hangers, CAM cutting beds, and various other innovations which reduce labor intensity and improve worker safety. Youngor has also installed air-conditioning systems for its workers so that they may enjoy a comfortable work and living environment. In order to provide quarters for its employees, Youngor spent 82 million RMB (USD$12 million) between 1999 and 2006 to build three dormitory buildings. Each building contains 929 rooms, can accommodate 6,800 employees, and comes equipped with closets, desks, telephones, 24-hour hot water, multi-purpose activity rooms, TV rooms, indoor and outdoor fitness equipment, internet cafes, and other various accommodations. Activities are regularly organized for the residents to take part in and enjoy. To relieve the employee residents of the summer heat, Youngor plans to spend 5 million RMB (USD$735,300) to install separate air-conditioning systems in each dormitory room beginning this March.

Significant Increases in Employee Income

As early as 1993, while re-evaluating its equity stock, Youngor proposed employee share options so that every employee could become a shareholder in the company, thus supporting a more harmonious enterprise. According to the provisions set forth at that time, the board chairman can hold 20% of the total shares with an option to hold another 20%. Youngor has been implementing its share distribution scheme as follows:

1) For general staff, income will be mainly related to work performance.   Dividends from the shares will serve as supplementary income.
2) For middle level management staff, payment is structured from a combination of work performance and dividends.
3) For senior management, dividends serve as the sole source of income.

This distribution scheme is designed to effectively balance the interests of employees at different levels and protect the long-term interests of the general staff. Village workers and township enterprises had at one time not been included in the group’s social security system and thus were not secure after retirement. In order to counteract this, each Youngor worker is given 5,000 Youngor stock shares upon retirement. After share enlargement and distribution, the total share value may reach 2 million RMB (USD$294,120) and may generate 30,000 RMB (USD$4,412) in yearly dividends. Under this income program, Youngor can maintain long-term stability.

Youngor’s system of income distribution is meant to create a reasonable method for allocating income to both shareholders and employees. With an annual wage increase of 8-10% for general staff, the system guarantees that the income of the general staff increases at a faster rate than the income of the management.

In order for an enterprise to operate harmoniously it must have a sound system of operation. As a fast-growing company, Youngor is under pressure to build this system as rapidly as possible. For years, the company has been fine-tuning its systematic methods of assessment, management, distribution, and training in order to provide a fair environment for each employee so that that Youngor may progress harmoniously.

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