Why Don't Car Companies Love Newly Graduated College Students?

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"It's really unemployment after graduation." A school recruit who claimed to have been terminated by car companies said that the fresh students were laid off during the probation period last year. This year, the three parties were directly destroyed, or at the end of the spring recruitment. "Our graduates have been forced to a dead end." It is the two new car building forces that have driven these graduates to a dead end.

On May 11, a user disclosed on the on-the-job social networking platform that due to the recent adjustment of the business structure of ideal automobile, some school enrollment graduating in 2022 are facing termination. However, one wave did not end and another wave began. On May 19, Xiaopeng automobile was exposed to the same situation. For a time, the topic of "Xiaopeng car was revealed to have destroyed more than 20 fresh students" was pushed to the hot search list.


Pictures provided by netizens

The new force of car making, which was originally on the cusp of the storm, was once again involved in the vortex of public opinion because of the "termination of contract school enrollment" incident.

Cut school enrollment before layoffs

"Immoral!"

For the "termination of school enrollment", HR of a large Internet factory said to Hu olfactory, "we won't have this action". He further analyzed that these terminated school enrollment may have wasted the identity of fresh students, "missed the school recruitment of many companies. Now when you go out, you really have to go to the social recruitment."

Taking ideal automobile as an example, the enrollment of these terminated schools originally passed the interview in the autumn recruitment of 2021, and signed the employment agreement for graduates of National Ordinary Colleges and universities (hereinafter referred to as the "tripartite agreement") with ideal automobile. In theory, the tripartite agreement is a written form to clarify the rights and obligations of graduates, employers and schools in the employment of graduates. It belongs to an offer and has legal effect. At the same time, it is also a means used by schools to restrict students and enterprises.

However, as everyone knows, the tripartite agreement is linked to the assessment of school employment rate by the competent education department. Therefore, the school hopes that students will find jobs when they graduate, but it doesn't care whether every student is satisfied with the company they go to, let alone whether the enterprise can accept and cultivate the student. Anyway, at least there are jobs for students and fresh blood for enterprises.

But now, the original balanced system has been gradually broken by big factories.

Since recent years, the high salary treatment of Internet manufacturers has been rendered continuously. For example, the highest monthly salary of fresh students who terminate the contract with ideal cars has reached 20000 yuan. In contrast, the "average monthly starting salary for undergraduate graduation of 5825 yuan", which rushed to the hot search at the beginning of the year, appears to be high and low. In the face of the prospect of big factories and high salary, these fresh lifers who have not yet entered the society may have made up a good career.

But who would have expected that the two new car building forces with a market value of more than 100 billion Hong Kong dollars would also be in trouble because of the fate of dozens of school enrollment. Behind this, ideal automobile and Xiaopeng automobile attribute the reasons to business adjustment and department adjustment.

In response to Hu olfactory, ideal automobile said: "recently, ideal automobile has made business adjustment, and some posts have been closed, involving some school enrollment partners who have not joined this year. In view of the inconvenience that may be caused to these students to find jobs again, we have provided job transfer options and termination compensation schemes, and are currently communicating with relevant students."

Xiaopeng automobile's response to the "termination of contract school enrollment" is almost the same, "due to the post adjustment and performance optimization of some departments, involving the adjustment of a small number of fresh graduates and relevant employees, we will continue to communicate and deal with it properly."

It can be seen from these two responses that the two new forces are making overall personnel adjustments. Instead of just for school enrollment, perhaps more social recruitment employees have been transferred from their original posts, and some have even quietly packed up and left.

But for the ideal car, the turnover rate of its employees is significantly higher than the industry level.

According to the 2021 environmental, social and governance report released by ideal automobile, by 2021, based on the total number of 11901 employees, the employee turnover rate in the current period has reached 27% - which is a high proportion even in the whole domestic Internet industry. As a reference, the latest data released by Tencent is: in 2021, the annual turnover rate of Tencent employees was 12.37%.


Ideal automobile 2021 environmental, social and Governance Report

It is worth noting that the turnover rate of employees under the age of 29 is significantly higher in the automotive industry. In contrast, according to the corporate social responsibility report released by Great Wall Motors, the turnover rate of employees under the age of 30 was only 10.22% in 2020. Although there was a slight increase in 2021, it was still far lower than 36% of the ideal car.


Great Wall Motors 2021 Corporate Social Responsibility Report

However, high employee turnover does not necessarily mean that there are problems in the enterprise. On the other hand, the total number of employees of ideal automobile in 2021 increased significantly compared with the previous year. According to relevant data, in 2021, the total number of ideal employees increased by 185% year-on-year and 7720 people a year. The growth of Xiaopeng automobile is even greater. Since the beginning of 2021, Xiaopeng has added more than 10000 employees.

It can be seen that behind the rapid growth and high turnover rate of personnel, there are indeed many personnel changes. Such operations are more like the style of Internet companies. "With the rapid growth of Internet companies, various departments will be established suddenly, business will be established, and then recruit quickly. After doing it for a period of time, they find it inappropriate, and then they will shrink, so they may have to cut people. This is still quite common." An HR of a large Internet manufacturer analyzed it to Hu olfactory.

For enterprises, it is indeed a normal personnel adjustment, but for fresh graduates who have just entered the society, it is really a lesson. "If you want to lay off staff, you must start with cheap ones first," the above person said

Fresh students are obviously the best choice.

What's wrong

After the "termination of contract school enrollment" incident, another voice began to circulate on the Internet, urging fresh students to go to relatively stable traditional car enterprises.

Some netizens said, "It's better to give priority to state-owned enterprises and traditional vehicle enterprises, such as FAW, SAIC and GAC. Although you don't have so much money, at least you can grow in it and don't lay off staff. You can jump again in the future. This kind of atmosphere with internet gene is very bad. You have a lot of money, but you also like to lay off staff and recruit new fresh students. To be honest, you can buy your youth with money and kick you away with one kick, old scum man."

Another netizen released a screenshot showing that the employment guidance center of a university said that for the fresh students who are ideal for car layoffs, BYD has opened a green channel for the school and can directly submit their resumes.


Screenshot from little red book

However, are these powerful traditional car enterprises really better than the new forces of "slag men"?

The truth may not be the case. An insider who has worked in BAIC new energy, Xiaopeng, BMW, Mercedes Benz and other auto enterprises told Hu olfactory that the friendliness of the auto industry to school enrollment should be divided by the nature of the enterprise. "If the state-owned enterprise has indicators, it is generally OK for those who have just entered, but the follow-up will not give opportunities. However, foreign-funded enterprises rarely recruit schools and generally like to recruit people with 2-3 years of work experience."

One of the reasons for the differences is the cultural differences between different types of automobile enterprises. "New forces can come out because they dare to try and make mistakes. I think the biggest risk is also the cost of trying and making mistakes, followed by people and salary. The key is the invisible time cost". The insiders of the above car enterprises further disclosed to Hu olfactory, "the idea of the new force is to complete a goal. No matter what the logic in the goal setting process is, as long as the senior management decides, the following team must complete it. If it can't be completed, it's not to adjust the goal, but to adjust the team."

When the whole industry goes smoothly, the new force's rapid trial and error ability is its advantage. The iteration speed of these companies' new products and technologies will also be accelerated. For example, in a recent earnings call, ideal car and Xiaopeng car both mentioned the mass production plan of the next new car. However, when the market growth slows down, all enterprises must focus their resources on places that can ensure their survival.

In April, the sales volume of domestic automobile market was 1043000, with a year-on-year decrease of 35.5% and a month on month decrease of 34.0%. In addition, the output of the whole passenger car market also reached a low of 969000, a year-on-year decrease of nearly 40%. Among them, the sales volume of ideal and Weilai in April showed a "waist fold". Even if Xiaopeng's situation was slightly better, it also fell by 40% month on month.

So we soon saw the cost adjustment action of Xiaopeng automobile. For example, cancel the lifelong free charging rights and interests, add some models and provide driving assistance software packages.

However, is it really reasonable to adjust the business due to the poor market environment? An insider of the new forces of car manufacturing told Hu olfactory, "the new forces that were still expanding wildly last year have frequent layoffs due to high cost pressure, which shows that they have no strategic judgment on the talent market. Behind it is the lack of research and judgment on the market trend and strategic determination, and they always hope for short-term adjustment."

"Tactical diligence cannot hide strategic laziness," the insider concluded

However, in sharp contrast to the "fast" of the new forces, the traditional car enterprises plan and then move, fully demonstrate and then implement. For example, in the hottest high-end electric vehicle market in the industry, BYD only "revived" Tengshi until recently, and avita of Chang'an has just appeared in the new car. Soon after, BAIC's Jihu, next to Huawei's thigh, has also delayed the delivery of hi version models for nearly half a year.

"Traditional car companies lack flexibility, but they can do it with a high probability as long as they demonstrate in the right direction." Generally speaking, the traditional mainframe factory will carry out R & D and make products in strict accordance with the original industrial process. Although the pace of the overall market is slow, the internal personnel of the enterprise are relatively stable, and there is enough room for post adjustment.

However, whether you are in a new force where risks and opportunities coexist, or in a traditional car enterprise with relatively stable working conditions, you will always encounter unexpected problems in your work. You know, since the development of the automobile industry, many enterprises are also feeling the stone to cross the river.

Then, in this changing era, the ability of self-management and self-growth is particularly important. "These days, we rely on ourselves, supplemented by training. It is important for individuals to take the initiative to learn and grow." The insiders of the above car enterprises concluded.

Write at the end

In the matter of school enrollment, Wei Lai, who is also a new force in car making, is commendable. Recently, Weilai released a poster saying that the company has opened a new round of supplementary recruitment in the spring of 2022, and predicted that the early approval of school recruitment in 2023 will be opened soon.


Picture from Weilai recruitment

Xiao Peng and ideal have also expressed a "warm welcome" to the fresh blood of school enrollment.

In 2021, he Xiaopeng personally ended up recruiting college graduates. They even launched the micro variety show "challenge! New pengyou" for this purpose, allowing enterprise leaders to personally communicate and interview with college students. A report also said that he Xiaopeng was the only one of the bosses of Wei Xiaoli's three companies to do so. The ideal car once said in the official channel: in 2022, more than half of the new recruits of the ideal car must be recruited by the school.

However, in 2022, the recurrence of the epidemic has caused a great blow to the automobile industry. Otherwise, the new forces of car making known for innovation and breakthrough will not shrink the Department at such an important stage of enterprise development.

But no matter how difficult it is for car companies, terminating the contract school enrollment is not a decent thing.

Speaking of this, people can't help but think of a famous saying of Li Shufu: "an enterprise without a sense of social responsibility will always be ruthlessly abandoned by the market in the end. Such an enterprise can't achieve sustainable operation."

Author | Wang Xiaoyu editor | thoughtful

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