Enterprises recruit employees in order to achieve their business goals, so the wage income provided is not as high as possible.
The seemingly contradictory salary between enterprises and employees can actually be effectively solved through the financialization of human capital.
Why should human capital be financialized?
Inevitability of upgrading human capital in enterprises
With the decline of China's economic growth and the fading of the demographic dividend, the growth rate of enterprise salary cost has exceeded the GDP growth rate after 20 1 1, and the pressure of enterprise salary cost has gradually emerged. But if the enterprise reduces the salary level of employees, will it lead to an increase in employee turnover rate?
Please click here to enter the picture description of China's macroeconomic index and China's salary increase.
According to the estimation of foreign organization Ibbotson, the proportion of human capital and financial capital owned by a typical investor is as follows (as shown in the following figure): At the age of 25, 96% of the total assets owned by investors are human capital and only 4% are financial assets. With the growth of age, investors' human capital is gradually transformed into financial assets. By the age of 65, the proportion of financial assets owned by investors reached 60%, exceeding the proportion of human assets by 40%.
This means that before the age of 45, the employee's salary income is his main source of livelihood, which is why employees will quit for higher wages.
Life cycle trend of financial assets and human capital ratio
If we can effectively increase the financial assets of employees before the age of 45, so as to increase their proportion in the overall assets, then employees can achieve more life goals through financial assets, reduce the dependence of employees' living expenses on wage income, and also reduce the turnover rate of employees seeking higher salary due to life pressure to some extent.
The benefits of this are self-evident, because enterprises don't have to keep their employees by constantly raising salaries. Of course, this only reduces the growth rate of salary cost mentioned above, and enterprises still have to rely on other management systems to retain employees.
Resolving the inevitability of employees facing risks in the stage of wealth accumulation
A person's life can be divided into three stages: the wealth accumulation stage from 25 to 45 years old, the transition stage from 45 to 65 years old and the wealth consumption stage after 65 years old. In the stage of wealth accumulation, the main risks faced by employees are as follows:
Cost risk:
Refers to the risk that employees' current income may not be enough to pay their current expenses, such as income reduction and inability to pay their mortgage and children's education expenses.
Savings risk:
Refers to the risk that employees may not be able to accumulate enough expenses after retirement.
Risk of death:
Refers to the risk that the death of an investor may cut off the financial resources of relatives.
Market risk:
Refers to the risk that employees' financial assets may depreciate due to the sluggish financial market.
Risks at different stages of the life cycle
It is obviously not enough to solve the above four main risks faced by employees in the stage of wealth accumulation, and it needs to be supplemented by financial assets. Therefore, by increasing the proportion of employees' financial assets in the wealth accumulation stage, employees will be able to resolve more risks, thus reducing their dependence on salary income, slowing down the growth rate of enterprise salary costs, and achieving a win-win situation for both enterprises and employees.
Then, the key to increase the proportion of employees' financial assets in the stage of wealth accumulation is how to make employees' financial assets appreciate effectively, which depends on the financialization of human capital.
How to finance human capital
Enterprises can improve the income of employees' financial assets by "exchanging space for time"
1. Get the spread income of financial products at low prices and shorten the time to achieve life goals.
Enterprises encourage employees through the securities market, and employees buy company shares at a discount price. Once the company's performance improves, especially when the securities market enters a bull market, employees will get a good share price return, sometimes the share price return will be more than ten times the annual salary of employees, which is equivalent to employees spending more than ten years' savings to realize financial assets at one time.
2. Use leveraged financial products to shorten the time to achieve life goals.
In the case of high housing prices, whether it is to buy a wedding room or because the second child wants to buy an improved large apartment, it is impossible for employees to buy a house at one time by saving their wages. Therefore, after employees have saved enough down payment, they can get the right to use the house in advance through loans. At present, employees get loans mainly in the form of commercial bank loans, national housing provident fund loans and enterprise housing interest-free loans. Enterprises with good capital conditions can provide employees with interest-free housing loans to help them reduce the pressure of buying houses.
With the accelerated pace of social work and increasing pressure, the trend of young employees with serious diseases is becoming more and more obvious, especially the accidents of family members who create significant income, which will bring great difficulties to the family's future living expenses. However, if employees save enough cash to cope with future disease risks, other living expenses will be reduced, thus affecting the quality of life. Therefore, enterprises can reduce the pressure of cash savings for employees to cope with diseases by purchasing commercial medical supplementary insurance for employees.
Employees can improve the income of their financial assets by "exchanging time for space"
If the financial products provided by enterprises can't effectively relieve the pressure on employees to achieve their life goals, then employees can not only pursue higher salary income, but also invest in financial markets, especially buying funds to relieve the pressure. However, many employees will worry that buying funds is risky and may not be able to realize the appreciation of financial assets. In fact, if the time period is prolonged, the total return rate of funds is still very objective. For example, in 10, the total rate of return in Public Offering of Fund can reach 158%, while during the period of real estate development in golden decade from 2000 to 20 10, the national average house price increase was only 147%.
Fund 10 income
Therefore, when investing, we must be friends with time and gain the appreciation of financial assets through long-term investment. But long-term investment does not mean random investment, and investment also needs appropriate methods.
1. Make long-term investment by using the asset allocation method of "Merrill Lynch Clock"
The investment clock model proposed by Merrill Lynch is an asset allocation method that links economic cycle with asset and industry rotation. This method divides the economic cycle into four different stages according to the indicators of economic growth and inflation-recession, recovery, overheating and stagflation. In different stages of the economic cycle, clockwise circulation, different types of assets will show significant differences, and at each stage, specific assets can obtain excess returns that exceed the market.
Rational allocation of four categories of assets, such as stocks, bonds, commodities and cash, through Merrill Lynch Clock can effectively improve the income of employees' financial assets in different economic cycles. If we want to further improve the income of financial assets through asset allocation, we must consider investing in alternative assets.
2. Long-term investment through alternative investment products
Private equity, hedge funds and real estate funds are the mainstream of alternative investment. The absolute return strategy represented by hedge funds can avoid the bull-bear cycle of traditional financial assets; Private equity provides investors with the opportunity to participate in the primary securities market, and they can get a premium after the merger or listing of the company; Real estate funds provide investors with opportunities to participate in commercial real estate investment, facilitate investors to quit, and effectively hedge inflation risks. On the basis of the traditional four types of assets, alternative investment can further enrich the investment scope of employees' financial assets and increase the probability of employees' life goals.
Under the background of China's economic transformation, the financialization of human capital will be a sharp weapon to achieve a win-win situation for enterprises and employees, and it also needs our wealth management institutions to promote the financialization of human capital from the perspective of enterprises and employees.
Beijing niutoubang technology consulting co., ltd