Why do so many people want to join state-owned enterprises and central enterprises? What are the advantages of state-owned enterprises and central enterprises?

In the 2020 employment willingness index of fresh graduates, central enterprises and high-quality state-owned enterprises ranked first, and high-paying private and foreign enterprises ranked second. Due to the epidemic last year, the employment willingness index of state-owned enterprises, especially central-level enterprises, has reached an all-time high. Students from prestigious schools and Ivy League turtles who originally disdained to enter state-owned enterprises have also begun to join the army of state-owned enterprises.

If you look at the homepage of central enterprises, the recruitment announcement is a guide: the headquarters or secondary headquarters recruit basically outstanding graduates from the top 30 well-known universities in the world, including the top 5 domestic universities. Only a master's degree and a Ph.D. can be interesting.

Moreover, state-owned enterprises and central enterprises are carrying out a three-year action to deepen reforms. By 2023, the salary ceiling will be broken. The annual salary of state-owned enterprises and central enterprises may reach a high level of more than tens of millions, which will attract more prestigious schools. As graduates join state-owned enterprises, the involution competition will become increasingly fierce in the future.

Why are state-owned enterprises and central enterprises so popular? The fundamental reason is based on the underlying logic of safety, stability, and overall high cost-effectiveness. The first advantage: high safety bottom line.

The biggest difference between state-owned enterprises and private enterprises is the difference between the bottom line and the upper limit. The safety bottom line of state-owned enterprises is high and the upper limit of salary is low. Private companies have high salary ceilings and low safety bottom lines. What does it mean?

No matter how bad you are in a state-owned enterprise, you don’t have to worry about living on the streets or starving to death in the wild. State-owned enterprises have a hardship relief fund to provide relief to employees when they encounter difficulties. The slogan is to prevent an employee from living in poverty and prevent an employee's child from being unable to go to school. For example, if an employee of a state-owned enterprise becomes seriously ill, his or her income will be guaranteed and their children will be taken care of. However, the salary ceiling of state-owned enterprises is indeed lower than that of private enterprises. It is not really lower, but less flexible. Judging from the average salary in 2020, the average salary of state-owned enterprises nationwide is nearly twice that of private enterprises nationwide, but the maximum annual salary for state-owned enterprises is approximately one million. Private enterprises have great flexibility, ranging from a low of 2,000 yuan to a high of 200 million yuan.

The safety bottom line for employees in private companies is very low, and private companies will not give their employees any security. For example, one company kicked out sick executives. Private companies have high salary caps, and there are executives with annual salaries of over 100 million. The proportion of people at the top of the pyramid among the huge employee base of private companies is extremely low. What is the practical significance of using this as an argument? You might say that employees in private companies at least have the dream of being worth over 100 million. You can have this dream, but in the context of rational analysis, you can't use dreams as an excuse. The second advantage: a lifetime of stability.

State-owned enterprises, especially central enterprises, are basically managed according to the public service department, and they are also considered within the system. As long as you don't do it yourself and don't take the initiative to resign, the company will not fire you, and the dismissal procedures are also very troublesome. The main reason for dismissal is that the employee has a fault, such as violating laws and disciplines, and the labor contract must be terminated.

For general violations of laws and disciplines, you will also be able to retain your job. For example, if you commit a non-subjective crime or hit someone with your car and receive criminal liability, you will basically be able to retain your public position. For another example, if you are criminally liable for a work safety accident, when you are released after serving your sentence, the company will recruit you again, giving you a way out.

In other words, if you don’t resign and have no flaws, you can basically work in the company until retirement. Then, even if the company goes bankrupt, the local employees will be placed in other state-owned enterprises, and there will not be the previous wave of layoffs. The third advantage: Retirement medical benefits are relatively high.

Some people compare state-owned enterprises with private enterprises and only calculate the salary accounts of the previous year, which is unscientific. The income of state-owned enterprises is not only reflected in salary income, but also in social security, provident fund, supplementary medical insurance, corporate annuity, retirement pension, etc. Some state-owned enterprises and central enterprises are still engaged in internal development. Even in first-tier cities such as Beijing and Shanghai, some central enterprises with strength and freedom also have internal development. Just because you don't know doesn't mean they don't have it. If you share a house, it is equivalent to a salary increase of 200,000 per year. This kind of invisible income must be calculated.

State-owned enterprises and central enterprises all pay social security, provident fund, enterprise annuity, and supplementary medical insurance according to the maximum limit. For example, a central enterprise purchased a supplementary medical insurance for each employee. Basically, the reimbursement for medical treatment and hospitalization reached 99, completely eliminating worries.

If you are in a private company and your medical insurance is not adequate, you will lose your job due to a serious illness and your family will be depleted.

Let’s talk about the housing provident fund. For example, state-owned enterprises in Beijing pay 24 on a bilateral basis of 12. The upper limit in 2021 is 6,680 yuan per month. Just one housing provident fund crushes the 80th percentile of the national average wage. Moreover, you can enjoy very low preferential interest rates by using provident fund to buy a house loan.

Let’s talk about enterprise annuities. For example, for the enterprise annuity of a central enterprise, the individual pays 2 yuan, the unit pays 4 yuan, the monthly salary is 30,000 yuan, and the enterprise annuity is 2,000 yuan per month. The enterprise annuity is used for investment and financial management. If you roll it over, when you retire, an enterprise annuity may be one or two yuan. Millions of dollars.

Let’s talk about pensions. State-owned enterprises and central enterprises must pay enough according to the highest proportion. Assume that two of you retire at the age of 60, one is a central enterprise and the other is a private enterprise. The base of the central enterprise is 30,000 and the base of the private enterprise is 3,000. Then, after you retire, the pension of the central enterprise will be 1.2 Thousands of people in private enterprises only have 2,000. If you all live to be 90 years old, and if you live another 30 years, the pension income of central enterprises is 6 million yuan, and the pension income of private enterprises is 720,000 yuan, the difference is more than 5 million yuan.

Don’t analyze too many subjective factors, just look at the overall cost-effectiveness.