This article explores the potential of foreign business models to address challenges faced by Taiwanese enterprises, particularly regarding low wages and employee welfare. It examines the current situation in Taiwan, highlighting examples of discrepancies between company profits and employee compensation, and contrasts it with practices observed in foreign companies.
The Reality of Low Wages in Taiwan
Taiwan is characterized by a prevalence of low-income workers. This issue extends even to high-level positions, with the salaries of general managers in Taiwan reportedly being among the lowest globally. Numerous underlying factors contribute to this phenomenon, creating a challenging environment for employees.
A Case Study: 25 Years of Stagnation
The speaker shares the story of a close friend, "Jack," who dedicated 25 years to a single company. Despite rising to a directorial position, his salary remained stagnant at around NT$60,000 per month. This example illustrates the lack of upward mobility and fair compensation that many Taiwanese workers experience.
The Boss's Logic: A Disconnect
The speaker points out a common "Taiwanese logic" where employers prioritize personal gains over employee welfare. One anecdote involves a boss claiming financial constraints while simultaneously purchasing luxury items, highlighting a disconnect between the company's perceived financial status and its treatment of employees. Another example details an e-commerce business owner who consistently purchased luxury cars for himself while haggling over a few thousand dollars in a prospective employee's salary.
Contrasting with Foreign Company Practices
The speaker contrasts these experiences with their observations working in foreign companies, particularly in Germany.
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Emphasis on Employee Welfare: Foreign companies often prioritize employee well-being, offering competitive salaries, comprehensive benefits, and a supportive work environment.
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Less Disparity in Compensation: The gap between executive and employee compensation tends to be smaller in foreign companies. For example, the speaker notes that while the CEO might drive an Audi, other employees drive practical and reliable vehicles.
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Valuing Employee Input: Foreign business models typically respect employees' thoughts and wishes and place a greater focus on employee care.
The Impact of Low Wages
The speaker argues that low wages and poor working conditions in Taiwan contribute to several negative consequences:
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Talent Drain: Frustrated with limited opportunities and inadequate compensation, talented Taiwanese workers may seek employment abroad.
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Low Birth Rate: Financial insecurity and lack of work-life balance discourage individuals from starting families.
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Decreased Consumption: Low wages limit workers' disposable income, impacting overall consumption and economic growth.
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Social Discontent: Employees feel undervalued and exploited, leading to dissatisfaction and a lack of motivation.
The Need for Transformation
The speaker suggests that adopting elements of foreign business models could be a solution for the transformation of Taiwan's traditional enterprises. This includes:
Digital Transformation and Corporate Management
Taiwanese companies should focus on areas like digital transformation and modernized corporate management to stay competitive.
Respect and Valuing Employees
Adopting a mindset that truly values employees and respects their thoughts and wishes is essential.
Social Responsibility
Treating labor as a social responsibility, rather than merely a cost, is crucial for creating a sustainable and prosperous society. This entails:
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Fair Compensation: Offering competitive salaries that reflect the value of employees' contributions.
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Improved Working Conditions: Providing a supportive and respectful work environment.
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Work-Life Balance: Promoting policies that allow employees to balance their professional and personal lives.
Moving Beyond Price Competition
Taiwanese industries often engage in intense price competition, which can lead to cost-cutting measures that negatively impact employee compensation and working conditions. Shifting the focus towards innovation, quality, and employee well-being could create a more sustainable and equitable business environment.
Conclusion
The speaker concludes by emphasizing the importance of creating a positive and supportive work environment. They suggest that even small gestures of appreciation can significantly improve employee morale and loyalty. Ultimately, the transformation of Taiwanese enterprises requires a fundamental shift in mindset, one that prioritizes employee well-being and recognizes the vital role of labor in driving economic prosperity.
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