Amidst the "cold wave" of layoffs at many global automotive companies, a sudden "warm current" has emerged. On September 13, Li Yunfei, General Manager of BYD Group's Brand and Public Relations Department, said on social media, "Today, BYD's total workforce has exceeded 900,000, making it the largest among over 5,300 A-share listed companies, with more than 400,000 employees more than the second-largest company." He specifically noted that among BYD's 900,000 employees, the total number of R&D personnel has reached nearly 110,000, making it the automaker with the largest R&D team globally. Moreover, in the past two years, BYD has recruited nearly 50,000 outstanding fresh graduates, continuously supporting their employment.

Some may believe that BYD's ability to expand its talent pool against the trend is primarily due to the company's ascending growth phase. However, in reality, talent development and corporate growth have always been complementary and mutually reinforcing. Without the perseverance and dedication to continuously strengthen and increase investment in R&D over the past decade, how could BYD stand out and accelerate its pace during the crucial transformation of the automotive industry? Nevertheless, for BYD, becoming a "super factory" also means confronting new challenges, such as employee evaluation mechanisms and promotion channels, especially in enhancing "employee efficiency," which requires heightened attention and proper resolution.

Workforce increased by over 200% in four years

According to public information, BYD's current total workforce has increased by up to 200% in four years, compared to the 290,000 employees at the end of 2021. Today, BYD is not only the largest employer among over 5,300 A-share listed companies, surpassing the second-largest by more than 400,000 employees, but also the largest private enterprise in China, truly becoming a "super factory."

In fact, BYD surpassed Volkswagen Group last year to become the automaker with the largest global workforce. Financial reports show that as of the end of 2023, BYD had a total workforce of 703,500, including 524,700 production personnel, 37,500 sales personnel, 104,000 technical personnel, 34,200 administrative personnel, and 3,193 finance personnel.

It should be emphasized that BYD's workforce expansion is not "blind." Comparing the personnel structure between 2022 and 2023 reveals continuous optimization, with a decrease in the proportion of production personnel and an increase in R&D and sales personnel. In 2023, BYD surpassed 100,000 R&D personnel, second only to Huawei's 114,000, and the proportion of R&D personnel increased from 27.3% in 2022 to 29.3% in 2023. Among them, the number of master's degree holders increased from 7,827 to 23,706, a year-on-year growth of 202.87%; the number of Ph.D. holders increased from 590 to 1,587, a year-on-year growth of 168.98%.

As Li Yunfei stated, while actively expanding its workforce, BYD has also significantly contributed to supporting the employment of university graduates. According to official data, BYD recruited a total of 11,300 university graduates in 2024, with over 67% holding master's or Ph.D. degrees, and R&D personnel accounting for 78% of all recruits. Among the 2024 graduates, Ph.D. holders accounted for 10%, a significant increase from the 3% in 2023. BYD told reporters that the company fully respects the growth aspirations of each employee, assigning mentors to every graduate to help them successfully transition into their new roles. To discover, train, and develop skilled talent, BYD implements a mentorship system to accelerate the pace of independent talent cultivation and development. Additionally, it fully considers employees' career paths, encouraging job rotations aimed at development, continuously challenging individuals, and enabling each employee to find their place here.

Cumulative R&D investment approaching RMB 150 billion

Among the figures released by Li Yunfei, one number stands out: BYD's total R&D personnel has reached nearly 110,000, making it the automaker with the largest R&D team globally. This fully confirms what BYD Chairman Wang Chuanfu emphasized at the annual shareholders' meeting in June this year: "At BYD, technology is king, and innovation is fundamental, with the core being our R&D personnel." In Wang Chuanfu's view, BYD's advantage lies not in its financial assets or profits but in its 100,000 engineers, a "super team" not reflected in financial reports, which forms the foundation for BYD's future development and sustained growth.

Similarly, BYD's R&D team has continued to improve and optimize. On the one hand, BYD strives to address its R&D shortcomings in intelligence, pursuing both cooperation and independent research. Wang Chuanfu previously revealed that the company's current autonomous driving team exceeds 4,000 people, including over 1,000 algorithm and hardware engineers and over 3,000 software engineers. On the other hand, the proportion of highly educated R&D personnel at BYD has been increasing year by year. Financial reports show that as of the end of 2023, among BYD's 102,800 R&D personnel, there were 23,700 master's degree holders, a year-on-year growth of 202.87%; and 1,587 Ph.D. holders, a year-on-year growth of 168.98%, with the proportion of master's degree and above holders increasing from 2% in 2022 to 4.5% in 2023.

Building a larger and higher-quality R&D team undoubtedly requires substantial financial support. In the first half of this year, BYD's R&D expenses rose to RMB 20.177 billion, a year-on-year increase of 42%, about RMB 6.6 billion higher than net profit. In other words, BYD invested over RMB 100 million in R&D every day in the first half of the year, compared to Tesla's RMB 16.1 billion in R&D investment over the same period. To date, BYD's investment in technological R&D has approached RMB 150 billion.

Data shows that BYD has globally applied for over 48,000 patents and been granted over 30,000. Specifically, BYD currently possesses a series of advanced technologies and platforms, including the "Cloud Racer Chassis," "Yi Sanfang," "Yi Sifang," "CTB Battery-to-Body Integration Technology," "Blade Battery," "e-Platform 3.0," and "Xuanji Architecture." It can be said that BYD has built a formidable technological "moat," which will serve as a powerful "weapon" for it to compete in an increasingly intense market.

"Employee Efficiency" becomes the key for the next stage

BYD's current development momentum is certainly attractive to talented individuals. However, to better attract and retain outstanding talent and industry elites, BYD has invested significant effort in employee development in recent years. In its 2023 financial report, BYD stated that it has established a unique talent development system based on the core talent development philosophy of "cultivating excellence through excellence and replicating success through success," aiming to create a multi-level, all-encompassing learning and development organization. It has established multiple online and offline training channels, innovated training formats, and continuously improved its talent competitiveness and thickness through various methods such as theoretical lectures, case studies, skill competitions, and practical simulations.

BYD is generous in rewarding outstanding individuals. The financial report reveals that BYD has established various awards from the company level to the production unit level, including company merit awards (President's Award, Special Merit, First-Class Merit, Second-Class Merit), funding awards, model awards, patent awards, quality fund rewards, and safety and environmental awards. In 2023, the company awarded a total of 338 prizes, including five President's Awards, 21 Special Merits, 25 First-Class Merits, 68 Second-Class Merits, 18 model awards, and 201 funding awards. Additionally, including group culture promotion awards, safety and environmental management excellence awards, Golden Badge Craftsman Awards, patent layout awards, patent honor awards, quality fund awards, outstanding employee awards, and best employee awards, the cumulative bonus payout exceeded RMB 3.3 billion.

Furthermore, BYD actively implements employee equity incentive plans. Last year, it completed the first unlocking and bonus payment for shares granted under the 2022 Employee Stock Ownership Plan, continuously enhancing employees' enthusiasm, engagement, and cohesion, thereby improving the company's overall competitiveness.

Research indicates that, despite BYD's excellent performance in sales, revenue, and profits, according to its 2023 financial report, its employee efficiency and salary competitiveness are not high due to its large workforce, reflecting challenges in human resource management and cost control. "BYD's rapid rise in recent years is primarily attributed to its extensive business chain layout and precise grasp of the opportunities of the times," wrote Huang Xiaojing, a senior researcher at China Automotive People, in an article. This development model also implies potential risks. Should the market environment change or the company falter in continuous innovation, losing its competitive edge, its business model could face severe challenges. For BYD, continuously optimizing personnel allocation and management to improve employee efficiency will be crucial for its future development.

However, BYD is aware of this. Earlier this year, news emerged that BYD was planning to implement a discipline-based system to continuously refine and explore new models of personnel management. "BYD promotes a competitive culture of 'comparing, learning, catching up, helping, and surpassing,' emphasizing internal competition and continuous learning to ensure a constant internal driving force for talent, fostering a robust and resilient talent ecosystem and high ground," BYD stated. It added that it would continue to uphold the "people-oriented" philosophy, increase investment in talent development, create more development opportunities for employees, and inject continuous momentum into the company's sustainable development.

There is reason to believe that by focusing on continuously optimizing its talent pool, BYD will move towards an even brighter future.

Image: From the internet

Article: Auto Industry

Typesetting: Auto Industry