Ali, we're starting to use knives on our own people

Tech 2023-07-16 10:40:09 Source: Network

Before reading this article, please click on theFollowIt not only facilitates your discussion and sharing, but also brings you a different sense of participation. Thank you for your support!Source/007 from the financial industryAuthor/007 from the financial industryThe Alibaba P9, once known as the 'worker ceiling', is about to become history

Before reading this article, please click on theFollowIt not only facilitates your discussion and sharing, but also brings you a different sense of participation. Thank you for your support!

Source/007 from the financial industry
Author/007 from the financial industry

The Alibaba P9, once known as the 'worker ceiling', is about to become history.

Recently, it was reported that Alibaba has launched the most volatile human resources reform in recent years, with the most notable being the cancellation of the P-series that has been implemented for many years.

Source: Sina Weibo

As we all know, working at Alibaba does not matter as much as the length of employment and position, but rather the numbers after the P sequence. If the rank can reach P8, the starting annual salary is basically above one million, and P9 is often worth over three million yuan. Moving up to this level will basically become the ceiling for working people.

It is such a rank system that envies countless people, but now we need to break it ourselves, which may also reflect Ali's anxiety and concern behind it.

01. Alibaba P-level, step down from the altar

This is the first time in recent years that Alibaba has undergone such a major adjustment in its job rank system.

According to the pictures exposed online, Alibaba will cancel the P-series position hierarchy and change it to 14-28 levels, equivalent to the current P4 to P8 levels. At the same time, employees who originally included P8 and above will also take the form of organizational appointments, and will no longer be promoted or downgraded separately.

Among them, more people are paying attention to Alibaba's synchronous adjustment of promotion rules. It is understood that the next level promotion will be evaluated based on the actual performance of employees and teams. If the performance is exceptionally excellent, multiple promotions can be achieved within a year.

Source: Sina Weibo

Although the current adjustment plan is still in the stage of soliciting opinions, in any case, changes within Alibaba are imminent and must be made.

You should know that reaching the P8 and P9 levels while working at Alibaba is basically the ultimate dream of most internet workers. This drastic reform may have touched the cheese of many people.

According to insiders, if the adjustment is officially implemented, many employees with higher ranks will face a reduction in their salaries. Previously, there was a fixed salary standard for P8 and above, but now it is highly likely that binding performance will result in poor performance and not being able to achieve the previous level.

However, some industry insiders have also stated that dividing Alibaba into more levels is beneficial for motivating lower level employees.

On the one hand, the differences between levels are further narrowed, and on the other hand, by achieving excellent performance, multiple levels can be achieved in a short period of time. For employees who have the ability but find it difficult to improve within the previous job level framework, it will be a good opportunity.

It is worth mentioning that this major adjustment of the rank system is only one of the major moves made by Alibaba in the near future.

Source: Alibaba Official Weibo

Not long ago, Ali Group officially announced a change of leadership, from Zhang Yong to Joseph Tsai and Wu Yongming; Since March this year, we have successively completed the structural adjustments of "1+6+N" and six major business groups.

02. What are the reasons for being bold and resolute?

The fundamental reasons for Alibaba's major adjustment can be summarized in four words:Embrace change.

Especially in recent years, the negative news surrounding Alibaba has started to increase, suffering from major company diseases, coupled with slower growth and the emergence of competitors, forcing Alibaba to adopt more radical change plans.

An earlier impact was the suspension of Ant's IPO, which caused a huge storm at that time. Looking closer, it is the huge fine handed over by Alibaba.

In addition, there are also many side stories surrounding Alibaba with their own topic attributes. Things like executive infidelity, P8 employee recruitment of personal female assistants, workplace sexual harassment, etc. can push Alibaba to the forefront every time. The public's favorability towards Alibaba has also declined due to these events.

Image source: Alibaba Group official website

If all of these are the news impact on Alibaba, then the decline in actual revenue growth rate and the eyeing of competitors are the core factors for Alibaba's firm transformation.

According to the past financial report data, Alibaba's quarterly revenue in March was 208.2 billion yuan, with a year-on-year growth rate of only 2%, lower than JD's growth rate of 7% and Pinduoduo's growth rate of 46%. It should be noted that Alibaba's highest growth rate in the past three years exceeded 40%. For the retail business, there has even been negative growth in the fiscal year 2023.

Another signal that more people may have firsthand experience is that Alibaba has not released sales data for Double 11 since last year, and the large screen displaying real-time transaction volume has been cancelled in 2021, replaced by the results of various sub categories.

Source: Tmall Official Weibo

Regarding this, the outside world interprets it as possible that major platforms are already on the decline in specific transaction data.

At the same time, for Alibaba, external competition is also becoming increasingly fierce. It is no exaggeration to say that Ali's market share has been eroded by rivals such as Pinduoduo and Tiktok.

Some consumers said bluntly: "Now when shopping online, if there is a favorite anchor, he will place an order in Tiktok. If he is short of money, he will go to Pinduoduo directly. He has not opened Taobao for a long time."

This is also the reason why Alibaba is reducing costs and increasing efficiency on the one hand, and actively changing on the other hand.

03. Proactively seeking change, with a foreseeable future

In fact, not only Alibaba, but also many internet giants have made adjustments to the job classification within the company. In 2019, Tencent changed the original levels from 1.1 to 6.3 to 4 to 17, while Meituan directly cancelled the original rank sequence and adopted an "L+number" naming method, making the promotion channel more transparent.

Industry insiders say, "The reason behind Alibaba's major adjustment is always to return to the business itself. This can be seen from the cancellation of high P and the use of Taotian Group as a pilot

To some extent, canceling the P sequence can stimulate employees' enthusiasm, as salary and performance are linked, and Alibaba's long-standing corporate illness may be alleviated.

The simplest example is that determining compensation based on business scale has led to a sense of crisis among many higher-level employees, and those who are "out of stock" are most likely to be affected first.

However, for Alibaba, the adjustment of employee rank is only a means, and the ultimate goal is still to settle in the business.

Source: Sina Weibo

Jack Ma's strong return is one of the signs. For example, after Jack Ma returned to China in March this year, Alibaba experienced significant changes within just a few months. In addition to being divided into six major business groups to bear their own profits and losses, Jack Ma once again emphasized that in the future, he should return to Taobao and return to users.

In addition, Liu Qiangdong, who was going to retire, also returned to Jingdong and focused on the low price strategy.

Obviously, in the face of the rise of new platforms such as Pinduoduo and Tiktok, traditional e-commerce companies such as Taobao and JD must take the initiative to take up the challenge.

Take Pinduoduo as an example. By the end of 2022, the platform GMV has officially exceeded 3 trillion yuan. The young people who used to sneer at Pinduoduo have all staged large-scale authentic fragrance scenes after their first attempt.

Source: Pinduoduo official microblog

It must be acknowledged that the current internet consumer market has entered an era of slow growth, and platforms are more focused on competing for existing markets. As long as someone takes an extra bite, others will be hungry.

At present, Alibaba's bold approach has demonstrated its determination to reform to the outside world. Enterprises and the market ultimately rely on people to create, and the future of Alibaba after transformation is still foreseeable.

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