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[RDHY Dictionary] Paid-by-Users Mechanism

Interpretation: Haier explored a salary mechanism for internet companies which is paid-by-user mechanism. Employees listen to users and create value for users. The value is evaluated by users and the salary comes from extra profit sharing. Haier employees salary is based on the valuation adjustment mechanism (VAM, find the interpretation in Rendanheyi Dictionary topic) , and it needs to be calculated in advance. The resource input for creating value for users is not allocated by the superior, but is from the investment under the valuation adjustment mechanism and taking risks in advance. If the employees cannot create value for the user, then the investment fails and they cannot get their investment back.

3 June 2021 : 03:40 am

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