Summary of Key Points
This article focuses on the concept of "investing in people." It begins by outlining the national strategic approach (the 20th Central Financial and Economic Conference, the 2025 Government Report, and the 14th Five-Year Plan), which emphasize that investing in people is a long-term strategy that covers the entire population and all life stages (including childbirth, education, employment, health, and retirement). The article then highlights the critical role of enterprises in this process—both as implementers of policies and as the core entities for transforming employee human capital into profits. It delves into the meaning of investing in people for businesses (which includes more than just training; it also involves benefits, incentives, and working environments), its significance (in building competitive advantages, adapting to technological changes, attracting talent, and fulfilling social responsibilities), as well as the current challenges (such as insufficient training and inadequate welfare provisions) and their underlying reasons (misconceptions among management, externalities of investment, and lack of support from social systems). Finally, it provides practical solutions (changing mindsets, establishing comprehensive systems, fostering collaborative skills between humans and machines, and multi-party cooperation), using examples from companies like Pang Donglai, JD.com, and Ctrip to illustrate these points.
Detailed Explanation
1. Why does the state encourage enterprises to "invest in people"? — It's a necessary choice for long-term development
In the past, we often talked about investing in factories and equipment. But why does the state now emphasize investing in people? Simply put, the situation has changed:
- Population structure: The working-age population is declining, and aging is accelerating. The demographic dividend derived from a large workforce is fading, so we need to rely on a talent dividend—people who are more skilled and healthier for sustainable development.
- Return on investment: The returns on "material investments" such as building factories and purchasing machinery are decreasing, while investing in people (e.g., training and improving benefits) can bring long-term benefits. Strong employees lead to higher efficiency, and satisfied employees help retain talent.
- Adapting to technological revolutions: With the advent of AI, many repetitive tasks will be automated, but human creativity, emotional communication, and complex decision-making cannot be replaced by AI. Enterprises must invest in training employees to work effectively with AI or risk being left behind.
By incorporating investment in people into its plans, the state is guiding businesses to shift from using labor to nurturing talent, which is not only beneficial for the companies themselves but also crucial for the country's future.
2. What exactly does investing in people entail for enterprises? — It's more than just training; it's about comprehensive support
Many companies think investing in people means providing training, but it's much more:
- Basic protections: Meeting legal requirements such as social and housing insurance, and offering statutory holidays (for example, JD.com provides full-time delivery riders with five types of insurance and housing benefits, giving them a sense of security).
- Well-being and benefits: Caring for employees' physical and mental health (e.g., providing psychological support), balancing work and life (Ctrip's "3+2" hybrid working model and childcare facilities at the workplace), and addressing personalized needs (child education subsidies, parental care).
- Skill enhancement: Tailored training (Sany Heavy Industry uses AR to teach maintenance; Juewei uses AI to share store management experience), and career development opportunities (Shuangbao Group offers multiple promotion paths for frontline workers; Anta's "Olympic Star" program rapidly develops middle management).
- Value sharing: Allowing employees to benefit from company profits (for example, Pang Donglai distributes 90% of its profits to employees; EVE Energy gives equity incentives to key staff), which creates a stronger bond between them and the company.
The biggest difference from traditional management is that employees are now viewed as assets rather than costs—instead of controlling them, companies aim to empower them.
3. Why are enterprises reluctant to invest? — Three major obstacles
Despite recognizing its importance, many companies still fail to do well. What are the issues?
- Management misunderstanding: They see training and benefits as expenses rather than investments, cutting back on them during tough times; they focus only on short-term performance and believe that investing in people yields slow returns; or they treat employees as tools without considering their lives.
- Fear of wasted investment: They worry that training employees will lead to them leaving for competitors.
- Lack of social support: There is a disconnect between vocational education and corporate needs—external training courses are either too theoretical or not practical, and internal trainers lack industry expertise, while external trainers understand theory but not the business context.
Examples like the low social insurance compliance rate (34.1%) and the low coverage of enterprise annuities illustrate these challenges.
4. How can enterprises invest in people effectively? — A four-step approach from mindset to action
To succeed in investing in people, companies need to take concrete steps:
- Change mindsets: Elevate the importance of investing in people to a strategic level (e.g., Pang Donglai has written "employees are assets" into its business philosophy, resulting in a low turnover rate and growing profits).
- Establish comprehensive systems: From basic protections to value sharing, creating a tiered approach (e.g., Ctrip's maternity benefits and flexible working hours that allow employees to balance work and family; Sany Heavy Industry uses AR for safety training).
- Embrace AI and develop new skills: Teach employees how to use AI (e.g., Transfar Group offers AI training camps) and cultivate abilities that AI cannot replace (creativity, emotional intelligence). Enterprises should also restructure their organizations using AI (e.g., Haier encourages employees to use AI as innovators).
- Seek external support: Collaborate with governments, schools, and industries (e.g., JD.com partners with Beijing University of Science and Technology to offer robotics training; Chint Electric jointly establishes training alliances with 25 companies to share resources).
5. The benefits of investing in people — More than just profits; it also builds a good reputation
What can enterprises gain by investing in people?
- Enhanced competitiveness: Strong, retained employees lead to higher efficiency and faster innovation (e.g., Pang Donglai's stores outperform their peers; Anta's "Olympic Star" program rapidly develops middle management).
- Greater talent attraction: Younger employees value job meaning and work-life balance. Good benefits and training attract top talent (e.g., Ctrip's flexible working hours reduce turnover).
- Fulfilling social responsibilities: It aligns with ESG (Environmental, Social, and Governance) investing principles, earning better recognition from investors and enhancing the company's image (e.g., JD.com's social insurance contributions drive industry compliance).
In summary, investing in people is not a cost; it's a long-term investment. By taking good care of employees, companies can achieve mutual success. The competition in the future will revolve around people. Only by truly treating employees as assets and investing in their development can enterprises thrive in a changing landscape. With national guidance and practical actions, investing in people can become a reality.