Haidilao's approach to staff selection and motivation centers around creating a supportive and

empowering work environment where employees feel valued, acknowledged, and incentivized to
deliver exceptional performance. By investing in its workforce and nurturing a positive
workplace culture, Haidilao lays the foundation for continued growth and success.
The company utilizes KPI-based performance evaluations, which encompass result-oriented,
process-oriented, and 360-degree assessments. Haidilao employs a color-coded card system with
different rating scales to measure various activities.
Since 2016, Haidilao has implemented a piecework salary system based on workload volume.
For instance, a worker caring for four tables receives a salary four times higher. Salaries increase
proportionally with workload.
Haidilao employs a top-down organizational structure with graded designations, ranging from
entry-level positions to regional management roles. While employees from rural areas may
initially face challenges in advancing, Haidilao offers opportunities for growth by assigning
diverse responsibilities and providing training through Haidilao University. Promotion decisions
are determined through a voting process involving all except the immediate supervisor.
In addition to promotion strategies, Haidilao also manages employee performance by
implementing demotion protocols for underperforming staff. Following a 4-month notice period
and efforts to improve performance through training, employees may be demoted if their
performance fails to meet expectations.
Overall, Haidilao's comprehensive approach to staff management ensures that employees are
motivated, recognized, and provided with opportunities for growth, ultimately contributing to the
organization's continued success.