Ansteel Group Corporation (Ansteel) has inspired vitality and improved efficiency by implementing a three-year action plan for reform of state-owned enterprises (SOEs) and adhering to the market-oriented principle.
Ability-determined positions, efficiency-based recruitment and contribution-oriented salaries have led to high-quality development of the company.
In 2020, the total profit of Ansteel was 13.4 billion yuan ($2.08 billion), the highest in its history.
The total profit of the company from January to April this year reached 10.8 billion yuan, 16 times of the same period last year and reflective of a new high in operating efficiency.
In 2020, Ansteel's annual labor productivity was 373,000 yuan per worker, 1.2 times that of 2019 and the annualized labor productivity in the first four month this year was 642,000 yuan per person per year, up 70 percent year-on-year.
Ansteel has reshaped its control system and optimized appointment of leaders and recruitment of employees. It improved integration of similar resources within and between its subordinate companies and shrunk management by 35.8 percent, limiting managerial personnel to within 7 percent of the total employee number.
Meanwhile, the company also implemented a professional managerial system, tenure mechanism and a contractual management pattern to guarantee that the most capable and appropriate personnel sit in the right positions.
In 2021, these management and systems were implemented in 288 Ansteel subsidiaries.
The company also highlighted plan-making, talent introduction and competition to encourage workers' passion and the company's vitality.
Performance-determined salary has also been promoted in Ansteel, which inspires employees' commitment to innovation and entrepreneurship.
Employee income increased by 10.5 percent year-on-year in 2020 and was up 10.9 percent in the first four months of this year.
Medium- and long-term incentive rewards have been given to key talents in positions of research and development, engineering technology, and purchase and sales, and extended to highly-skilled workers.
In 2019, 34 people were rewarded with 194,000 yuan per capita. The annual income of the chief R&D expert was nearly 1.05 million yuan and the annual income of a special high-skilled technician was 296,000 yuan. Such rewards have greatly stimulated the work enthusiasm of the company's talents.
(Executive editor: Niu Yilin)