Taking compensation to work for new forces

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Written by Wang Lei, Liu Yajie | Edited by Qin Zhangyong

What's the matter? Employees are scrambling to be laid off?

Many media outlets have reported that GAC Honda began a large-scale layoff in May with voluntary resignation as the core method, and even more interestingly, these people are actively "resigning".

The main reason is that the compensation is really too much!

It is reported that the laid-off employees will receive a compensation package of "N+2+1.8". Because the compensation is too attractive, GAC Honda employees have voluntarily registered, and the first batch of layoffs is in short supply. Currently, 2,300 employees have left, accounting for about 19% of the company's total number of employees.

Even more interesting is that originally GAC Honda only planned to provide 900 voluntary resignation spots, but unexpectedly, their employees, especially the older ones, were scrambling to be laid off, so they simply gave out all the subsequent over 1,000 involuntary layoffs spots.

It must be said that this operation of GAC Honda's employees has reduced a lot of workload for the company's HR.

Where did these employees who actively wanted to be laid off go? Some chose to "retire and return to their hometowns" to enjoy a retirement life early; the rest mostly seamlessly transitioned and joined the ranks of new forces.

01 Being laid off pays more than working

Employees are scrambling to be laid off mainly because their employer is giving too much.

GAC Honda Automobile was established on July 1, 1998. It is a Sino-Japanese joint venture jointly invested, constructed, and operated by Guangzhou Automobile Group Co., Ltd., Honda Motor Co., Ltd., and Honda Motor (China) Investment Co., Ltd.

This also means that the severance compensation is not entirely borne by Honda, but is shared equally by GAC and Honda, so the final severance amount is very generous.

According to GAC Honda internal employees, the company provided a compensation package of "N+2+1.8" for laid-off employees. Among them, "N+2" is the standard compensation, where "N" represents the number of years of service, "2" represents an additional two months' salary, and 1.8 months' bonus is paid additionally. The bonus refers to the pre-issued bonus for the current year, and the specific compensation amount varies according to the employee's position and level.

In other words, the higher the basic salary or the longer the working hours, the more compensation. Informed sources revealed that employees with about 10 years of service tenure can easily receive 200,000 to 400,000 yuan.

Calculated this way, this compensation package not only far exceeds the average level of many industries, but even exceeds Tesla's N+3 compensation package for layoffs worldwide in previous months.

Earlier, Ideal Auto's layoff compensation package was "N+1", and GAC Honda's previous compensation package was only "N+1+bonus". Now, the compensation provided is obviously very attractive.