Liu Qiangdong: Yu Donglai and JD Share Similar Philosophies; Exploiting Employees Doesn’t Breed Good Service

In a recent address, JD.com’s Chairman and CEO, Richard Liu, shared his insights on a range of topics, including his initial retirement plans and the e-commerce giant’s strategic moves into the travel and hospitality sector. Liu’s comments, however, were particularly illuminating when touching upon the core philosophies that underpin JD.com’s operations, drawing a parallel with the operational principles of a well-regarded retail chain.

Liu underscored the importance of employee well-being and fair treatment, echoing the practices of the retail chain. He noted, “The operational principles are strikingly similar to JD.com’s.” The retailer, known for its commitment to high-quality products and competitive pricing, prioritizes employee trust and satisfaction.

Responding to a question about customer service Liu pointed out, “If you squeeze your employees, do you think they’re going to provide good service and guarantee a positive customer experience?”

Liu emphasized the alignment between these principles and JD.com’s own approach.

The retail chain’s employee-centric policies include no sales targets for stores, with performance goals set based on actual operational results. New store openings are supported with dedicated policies, fostering a relaxed and positive work environment.

On the financial front, the retailer allocates the vast majority of its profits, almost 95% or more, to its employees. This policy, which exceeds standard benchmarks, aims to improve employee quality of life and contribute to the national agenda of shared prosperity.

Benefit offerings include a management workload averaging no more than six hours per day and employee workloads capped at seven hours. Furthermore, employees enjoy ten days of paid leave without the need for justification, with automatic approval granted by supervisors.

The company also offers an additional thirty days of annual leave and ensures all stores are closed for 52 days annually (every Tuesday), as well as a five-day closure during the Spring Festival.