JD Hikes Wages and Introduces Regulatory Changes

The recent change of the JD.com app logo and the announcement that the company intends to raise its workers’ wages has caused a lot of speculation. It’s believed that the Chinese company is looking to nurture more social responsibility despite the nation’s aim to strengthen industry regulations.

JD is one of the leading e-commerce platforms in China. Its move to grow a more socially responsible low-profile image will push other companies to make similar moves. It will impact businesses around the country looking to remain competitive and productive.

An independent social media outlet referred to as Fancaiju reports that JD is still using the same dog mascot on their logo, but with a few distinguishable changes. It now takes a more direct face with a broader smile making it more amicable and appealing. JD.com did not comment regarding the logo change.

However, the new look makes an excellent first impression on the audience. Retaining the dog mascot ensures JD’s brand identity is maintained while fostering loyalty. The new logo is more memorable and instantly grabs the attention of viewers. It also distinguishes JD from its competitors and draws attention from potential users.

In the second week of July, JD revealed that it would increase its employees’ salaries from a 14-month model to a 16-month model by July 2003. JD conveyed this surprising information through a WeChat post, causing a hot discussion on the topic on the Chinese social media platform Weibo. According to JD current affairs, there has been a need for change in operations. The increase in wages acts as a display of financial power from the initial JD earnings date and a strategic move to remain on top of their game.

According to the previous JD earnings date, the employees will likely receive an average of 14% increase over the next two years. JD uses this opportunity to display its financial strength when most of its rivals struggle with regulatory audits. This move aims to boost the current employees’ morale and attract attention from the right skills and talent.

Some media reports claim that the salary increase does not intend to cover all JD’s employees. By March, the company consisted of at least 370,000 employees after an additional 100,000 in December last year. However, the increment may not include some of the grassroots workers in their new 16-month pay model. According to Ge Jia, a well-renowned tech analyst, its move mainly depends on their demands to attract talent and pressure from society.

The current sprawling economy in China has been exploiting surplus labor. According to an article published the same day as JD’s WeChat post in People’s Political Consultative Daily, it needs to be reined under the protection of the Chinese People’s Political Consultative Conference.

Internet firms that have been rapidly expanding over the past ten years need to realize that the nation is trying to strengthen regulations to grow more soundly. Ge Jia also says that more companies are likely to become more socially responsible for establishing a reputable image before throwing in the money to form their ecosystems.

A day after JD’s announcement, one of China’s most popular food delivery services, called Ele.me, declared the launch of “Summer Action.” It will include a batch of 300 million yuan ($46 million) intended to improve their worker’s welfare by increasing rewards for every delivery and summertime high-temperature bonuses.

Every Big Tech in the country should make some massive changes, including optimizing the labor structure and implementing any necessary rectifications. Ge also noted that they should avoid merely paying lip service and ensuring employees spend time in good working conditions.

While considering JD current affairs, Ge Jia openly reveals what all big technology businesses in China should consider the government’s move to make them more regulatory compliant. They need to make some significant moves in the entire management and avoid the effects of below-par audit results by government officials.