Chinese companies are making changes in response to the public's negative perception of harsh corporate cultures by shifting towards more employee-friendly and humane management styles. This change is driven by a combination of factors, including the desire to address employees' mental health issues, the need to adapt to a changing market environment, and the influence of younger generations entering the workforce who value work-life balance and personal fulfillment.
Companies like Fat Donglai, a Henan province-based company, have gained nationwide attention for their focus on employee happiness and well-being. They prioritize making frontline employees happy, even if it means shortening business hours and giving employees time off during holidays. This approach has resulted in increased customer loyalty and a dedicated workforce.
Other companies, such as JD.com and Wahaha, have also shown signs of adopting more family-oriented corporate cultures. JD.com's founder, Richard Liu, has publicly argued that anyone with long-term poor performance and no aspirations is not considered part of their "family." Wahaha's late founder, Zong Qinghou, was known for his parental-like care for employees, including refusing to lay off employees over 45 years old.
This shift towards more humane management styles is a response to the growing public demand for better treatment of employees and a more compassionate approach to corporate culture. As the market becomes more competitive and employees seek greater autonomy and meaning in their work, companies that prioritize employee well-being and happiness are likely to have a competitive advantage.