Renrui TalentsZhang Jianguo, founder and president of Technology Group

In the human resources market in 2020, crises and opportunities coexist. On the one hand, the epidemic has disrupted the overall recruitment plans of enterprises, making it more difficult for enterprises to recruit and increasing employment costs; on the other hand, this kind of “chaos” will also become an important opportunity for enterprise transformation, and new forms of flexible employment and recruitment outsourcing can be implemented within enterprises. The timely and effective adjustment of human resources strategies has become an important starting point for enterprise development.

On August 5, 2020, 36 Krypton successfully hosted the “WiseX2020 New Manpower Era Summit” in Shanghai, inviting entrepreneurs, experts and scholars from the domestic human resources industry to discuss the ways and techniques of breaking the situation in this 100 billion market in the post-pandemic era.

In recent years, flexible employment has occupied more and more market share in the human resources service market, and the ecosystem of the human resources service industry has also become more comprehensive. For enterprises, how to use flexible employment models to improve enterprise efficiency and maximize their true value will be an important issue in enterprise management. Zhang Jianguo, founder and president of Renrui Talent Technology Group, said that with the rapid development of mobile Internet technology, the new economy has promoted the efficient allocation of social resources, while also bringing about diversification and flexibility in employment patterns. In the face of the uncertain environment of the times, flexible employment will become the mainstream model in the labor market. It will allocate personnel flexibly according to the peaks and valleys of enterprise business, increase production capacity per capita, and create higher efficiency!

The following is a transcript of the guest speeches.36Editorial arrangement:

Hello everyone! I am specifically responsible for the operation of the business, and I have also been involved in human resources management within the enterprise for a long time. Some of my own experiences in the actual operation process from the perspective of social management and social values on issues related to flexible employment.

The existence of any enterprise must have social value. How it serves its customers is fundamental to it. For human resources service companies, one is corporate customers, and the other is individual job seekers. What are the demands of these two? This is a fundamental issue we need to understand. For enterprises, there are three main considerations: first, how to accelerate the development of the enterprise; second, how to obtain good profits; and third, how to reduce business risk. This is a fundamental issue for businesses to consider. For individuals, there are also demands: first, how can you find a job faster; second, work more freely; and third, how can you get corresponding employment security.

For HR services firms, how can the two deliver the value they need? Can obtain corporate value. This specifically reflects three points:

The first is whether it can help enterprises improve management efficiency. For example, recruitment. When a recruitment company hires 100 people a month, sometimes it can only recruit 50 people. Can a human resources service company meet the needs of 100 people? Originally, it took two months to recruit 100 people, but can the service company complete it in half a month? This is a question of efficiency.

The second is flexible configuration. There are ups and downs in the employment of many enterprises. At peak times, you can quickly provide staffing services, and during troughs, you can be transferred to other enterprises, making the enterprise's labor costs minimal. This kind of low cost is a kind of management efficiency that is relatively benign in management. Instead of not paying him a social security fund to keep the cost of my business to the lowest, this is difficult to sustain, and it's also illegal.

Third, as a human resources service platform, how can job seekers obtain better labor security, so that enterprises can reduce employment risks. For example, when hiring, reduce compensation for their employees. These aspects have the most fundamental value for human resources service companies.

Since the topic of flexible employment is quite hot recently, how do you define flexible employment? In my opinion, flexible employment is a relatively big concept. Outsourcing or crowdsourcing. I need to do my own business construction and development. I need to recruit 10 people and 20 people to form a team, but I can't do it; I'll outsource it to others. He will complete it for me in 3 months and 6 months, then deliver it to me. The method of business outsourcing is also a form of flexible employment.

We used to outsource IT. IT outsourcing existed 20 years ago, not today. It's more about using software project outsourcing to deliver one result. However, many IT outsourcing alone does not deliver results, because after opening an account with a company and getting software development results, my business continues to change, and I still need continuous improvement and secondary development. At this time, for enterprises, this is the organizational structure of the software; the basic database needs to be built by oneself. At the peak of the project, when 30-50 people are reached, an outsourcing method is required. I use three months, five months, or a year to return these personnel to the outsourcing company after the peak of the project period has passed. Move business outsourcing to the form of personnel outsourcing. This pattern complements each other; it is also a flexible way to work.

Why is everyone concerned about this issue now? There are platforms that employ workers. For example, Didi taxi drivers can take orders flexibly, including takeaways, so can take orders. Platform employment has obvious flexibility and autonomy. However, many other jobs may not have these characteristics, but in order to avoid social security provident funds as so-called platform workers, the flexible employment method is a very vague concept. I think it's actually a business management model for enterprises, and different forms of employment for human resources. They are all combined according to the business management needs of the enterprise, not to avoid legal risks. A lot of people use this name to wipe the edge of the law. This is difficult to sustain, and it doesn't play up its true value.

Why is flexible employment the mainstream model for the future labor market? It is reflected in three points:

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The first is sharing. So-called sharing is like bike sharing. I used to buy a bike at home and ride it twice a week. I usually keep it in one place. Bike sharing rides one hundred times a day has the highest utility value. For individuals, you don't need to spend a few hundred yuan to buy a car; you can just spend a few yuan a day, so the cost of capital is minimal. For enterprises, the pattern of employment or the pattern of sharing employees should not only consider that they recruit, train, and use everything themselves, but they should be able to adopt a shared approach. This is a new concept for human resources.

The second is to break the boundary. If platforms are connected, maybe talent acquisition can be faster and exit risk is lower; this can be done. The greatest project in China was Dujiangyan. The regulating effect of Dujiangyan's inner core and outer core has made the Sichuan Basin a country of Tianfu. This value is sustainable. For enterprises, it is possible to open up their individual thinking and view problems as a social platform way of thinking. The efficiency is the highest.

The third is openness. I don't necessarily have to hire everyone; I can only use it for myself, not for others. It's impossible to monopolize talent even now. As for the future, the way of thinking about human resources will change.

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Use a case study to show the value brought by an enterprise when adopting flexible employment and the actual mode of operation. This picture truly reflects the process of cooperation between a company and Renrui. In 2017, bike sharing had cars of all colors in the north and south of the river overnight. One of the companies is top in the industry; he collaborated with Renrui. It will expand to more than 150 cities within half a year. Many are Tier 3, 4, and 5 cities, and there are no plans. We don't know when to enter this city. Because the time point at which the local city government will approve the settlement is beyond control. Therefore, every week, customers will tell us that they will enter 90 cities next week, how many employees they need to recruit, and whether they can quickly add staff. We will complete 150 cities within half a year, and the normal number of outsourced workers will reach about 56,000. In addition to the loss of personnel, etc., we need to complete the business volume of at least 10,000 people.

If 150 cities are distributed in multiple locations, how many manpower would an enterprise need to recruit more than 10,000 people? Not only is every region equipped with a human resources department; several regions need at least five to ten people to be responsible for several provinces. The overall allocation of human resources requires more than 200 people and is distributed all over the country. Can the recruitment capacity of this model meet the standards? This is not possible. In terms of efficiency, it is difficult to meet requirements. Therefore, using the methods of outsourcing human resources services and business outsourcing, this company has the fastest development in the industry, the widest region, the largest scale, and the most standardized management.

There are many employees joining these businesses every day and they are distributed in various places. How can labor contracts be completed? Do you send it by contract? The journey took a week, which was too long. Attendance needs to be completed every day. How can I attend? How are wages paid? Wait, it is difficult for an enterprise to do these things if the human resources department does it on its own.

After the company cooperated with Renrui, the human resources department at the headquarters had more than a dozen people. None of the other branches had human resources; we did everything for him. When an enterprise is developing rapidly, how to meet its development needs is to accompany him in seizing land to meet his business development needs. At the end of 2017, the beginning of '8, this company was bought by another company. After the acquisition, because it depends on costs, and because there is a lot of room, employees have to be laid off. From more than 5,000 layoffs to 3,000, half of the people will face layoffs. Assuming 2,500 people lay off employees, each person's average monthly salary is about 56,000 yuan. How much money will the company spend? Probably 20 million. However, these personnel were hired by Renrui. Some of them continued to operate, and some were hired by other partners. These employees did not use layoffs; in fact, more than a dozen people were unable to arrange for compensation; in fact, only about a dozen people were laid off, and Renrui undertook responsibility. Colleagues transferred the remaining personnel to other company projects. Renrui provides services to hundreds of companies and has a large platform, so it has solved the problem of employment conversion, and the labor contract does not need to be changed. Help companies reduce risk throughout the business restructuring process. At the end of 2018 and the beginning of 2019, this company resumed development, and now it still has the greatest influence in the industry. We are still cooperating with him, and the number of people is increasing by several hundred people every month.

Judging from this example, the so-called flexible employment is actually a management model; what can really bring value to an enterprise is not the adoption of other means to reduce costs.

In the human resources service model, the model of labor dispatch that everyone is familiar with can be transformed into a truly advanced integrated human resources service foreign trade model. Dispatch is actually an employment model. A three-party contract solves legal issues, and it does not really bring the value of human resources services. However, as an integrated service solution model, it assumes the responsibility of the enterprise's second human resources department. It is more professional than the enterprise's human resources department, and its platform is larger. This is the direction and transformation of the service model we need to see.

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Judging from the overall international development situation, China is just in its infancy in the field of flexible employment. Our total number of flexible workers accounts for less than 1% of the labor force population. This is the result of a survey by a professional company. It is already over 10% in the US, and about 15% in Europe and America, including Japan. This is a habitual method adopted by developed countries and advanced countries. This is a relatively common and mature management concept, so the future trend in China is also certain. This is its management philosophy.

At the same time, with regard to the development trend of flexible employment and related issues, a few points have been raised recently. Why does it have this trend? Because of the development of Internet technology, the allocation of social resources to colleges and universities has been promoted. If there were no smartphones, would there be a Didi taxi? In fact, there are also many telephone ride-hailing services. A few companies in Shanghai have call calling services, but not many users choose to call? Because a mobile phone can request a ride at any time, and it knows where it is, how far, and how long to wait. This is the result of advances in technology, changes in employment patterns.

Second, for Chinese companies, they are in a period of transformation. This year's epidemic is actually a huge impact. There are only two aspects of enterprise transformation. One is product innovation, which can obtain relatively high profits, and the other is management efficiency. Higher management efficiency can capture my profits. Third, there are issues to consider in terms of staffing, peaks and valleys, and the changing characteristics of its business as a means of management.

The third is specialization. Specialization in modern society is an inevitable trend. For example, the division of labor in Hong Kong as a whole is quite specialized. We spent more than one month in the listing process at the printing house every day. The printer's business alone was so much better, and they were professional. It will be the same in the future in China. Its division of labor will definitely be more specialized. Only specialization can be the most efficient, and it has the strongest capabilities. This is also a future trend.

Fourth, laws and regulations are imperfect, but any laws and regulations are relatively lagging behind. Only when many phenomena occur and become one common phenomenon after another can national laws and regulations establish corresponding regulations. If this industry is to develop healthily and continuously, it will definitely go through a process of regulation, but the essence must have an effect on our customers. This is fundamental.

I proposed a talent outsourcing model where 1+1 is greater than 2. Outsourcing not only outsources non-core business, but also includes core competencies. My efficiency is higher and the cost is lower. Only in this way is it possible to have social value, so Renrui advocates two points. Human resources management uses technology to drive efficient human resources service, and explores a new model of flexible employment in China through professionalism. We hope to make the corresponding contribution and role we hope to play in promoting flexible employment and human resources services in China.

Thank you all!