Guangdong people are practical in business and other fields, but this does not mean that they only focus on short-term interests. However, in order to ensure that the company's incentive policy can guide employees to focus on long-term goals and overall development, we can start from the following aspects: ### Set comprehensive assessment indicators 1. **Taking into account both short-term and long-term performance** - In addition to setting short-term and easy-to-measure indicators such as quarterly sales and short-term project completion rate, add long-term indicators. For example, the long-term customer satisfaction improvement ratio, the brand market share year-on-year growth target, etc. Let employees understand that the company not only values the immediate business results, but also pays more attention to future sustainable development. - For sales positions, in addition to assessing quarterly sales performance, set a goal of customer repurchase rate reaching a certain ratio in the next year. For R&D positions, while assessing the short-term product R&D progress, pay attention to the indicators for improving the market competitiveness of products in the next few years. 2. **Incorporate non-financial indicators** - Introduce some non-financial assessment indicators, such as employee training and development indicators (employee skill improvement degree, performance improvement after training), team collaboration indicators (internal collaboration satisfaction survey scores), etc. These indicators can encourage employees to focus on their own ability improvement and teamwork, rather than just focusing on short-term financial benefits. - For example, it is required that each department organize a certain number of internal training courses each year and evaluate the improvement of employees' work performance after training. Incorporate teamwork satisfaction into the department and individual performance appraisal system and link it with incentives. ### Design a long-term incentive mechanism 1. **Equity incentive** - Implement a stock option plan to give employees the right to purchase company stocks at a specific price within a certain period of time in the future. In this way, the interests of employees are closely linked to the company's long-term stock price performance, and they will pay more attention to the company's long-term strategy and performance growth, rather than just short-term profits. - For example, for middle and senior management and core technical personnel, a certain number of stock options are granted, and it is stipulated that they will be exercised gradually within 3-5 years. When the company's performance grows and the stock price rises, employees will gain benefits by exercising their options, which will motivate them to work hard for the long-term development of the company. 2. **Long-term bonus plan** - Establish a bonus pool based on the company's long-term performance goals, such as taking a three-year or five-year assessment cycle, and distribute bonuses based on the completion of long-term indicators such as the company's return on net assets and net profit growth rate. - For example, set the company's average net profit growth rate to reach 15% in the next three years. If the goal is achieved, a long-term bonus will be distributed to employees at a certain proportion from the bonus pool. Bonus distribution can be differentiated according to factors such as employee job level and contribution size. ### Strengthen communication and cultural guidance 1. **Clearly explain the company's vision and strategy** - Regularly communicate the company's long-term vision, strategic planning and goals for each stage to employees through internal company meetings, training, emails and other channels. Let employees understand how their work fits with the company's overall goals and understand the impact that pursuing short-term interests may have on long-term development. - For example, hold an annual strategic press conference to detail the company's development direction for the next five years, as well as the goals and action plans for each business segment. In daily work, department heads should communicate with employees how their department's work supports the company's strategy, so that employees can recognize the value of long-term efforts. 2. **Emphasis on long-term value concept** - Create a cultural atmosphere within the company that focuses on long-term value creation. Strengthen employees' awareness of long-termism by promoting cases of outstanding employees' long-term contributions and commending teams and individuals who have made outstanding contributions to the company's long-term development. - For example, set up a "Long-term Contribution Award" to select employees who have worked in the company for many years and have played an important role in promoting the company's long-term development every year, and give them public recognition and rewards. Display their deeds in the company's internal publications and bulletin boards to encourage more employees to establish long-term values. ### Improve the supervision and feedback mechanism 1. **Establish a supervision system** - Set up a special supervision team or use internal audit departments to conduct regular inspections and irregular spot checks on the business operations of business departments. Ensure that employees do not ignore short-term performance when performing tasks, and do not damage the company's long-term interests in pursuit of short-term benefits. - For example, supervise whether the sales department has problems such as over-promising customers and ignoring follow-up services for product quality in order to achieve short-term performance; check whether the R&D department ignores the long-term accumulation and innovation of technology due to its eagerness to launch short-term products. 2. **Timely feedback and adjustment** - Regularly collect employee feedback on the incentive policy to understand whether the policy guides employees to focus on short-term interests during implementation. Adjust policy indicators, weights, etc. in a timely manner based on feedback to ensure that the incentive policy always plays a role in promoting the company's long-term development. - For example, hold a seminar on the effectiveness evaluation of the incentive policy every quarter to allow employees to share their feelings and problems found in the process of implementing the incentive policy. According to employee feedback, optimize indicators that focus too much on the short term and increase the incentive intensity of long-term indicators.