Feb 18, 2021|
JD Logistics IPO: Average Monthly Expense for Employee Exceeds Average Income of First-tier Cities
by Hui Zhang
In its IPO prospectus filed with Hong Kong Stock Exchange (HKEx) on Feb. 16, JD Logistics disclosed a number of key figures, one of which relates employee benefits. The filing showed the average monthly expense for a frontline employee reaching RMB 8,300 yuan, which exceeds the median income of China’s first-tier cities such as Beijing and Shanghai.
According to the prospectus, JD Logistics spent RMB 17.9 billion yuan on compensation for 240,000 employees involved in warehouse management, sorting, picking, packaging, shipping and delivery in the first three quarters of 2020 alone. Roughly calculated, the average monthly expense for each frontline employee is nearly RMB 8,300 yuan. According to data from Chinese Academy of Social Science and Sina Finance, the median income of Beijing and Shanghai are RMB 6,906 yuan and RMB 6,378 yuan respectively.
JD Logistics is also one of the few companies in the industry that provides insurance benefits for all of its employees as well as more than 30 other kinds of benefits and subsidies such as commercial insurance and transportation. During Chinese New Year 2021 holiday, JD Logistics further increased its subsidies for frontline employees working during the holiday to RMB 200 million yuan.
41-year-old Qiang Zhao is one of the employees who has benefited from JD’s compensation policies. He was among the first batch of employees who joined JD after the company started to build its own logistics network in 2007. He started his career at JD as a picker in a warehouse near Beijing’s Fenghuangling area and then went back to Siping of Jilin province to be in charge of a delivery station. Zhao still remembers that when he first joined the company, his biggest wish was to make enough money to buy a house and a car, which have both come true over the course of his career with JD. He bought a house in his hometown of Siping in 2012, and bought another one in Shenyang and a car in 2016.
Looking back on the past fourteen years, Zhao said he has learned a lot. Before joining JD, he did not even know how to use a computer. After joining JD, he got the opportunity to attend training courses to learn how to use front-end technology, such as intelligent delivery vehicles, to improve working efficiency.
“Working in JD, it feels like there are always new things to learn and new changes every day. As long as you want to and learn, JD provides [opportunities] to you without hesitation,” said Zhao.