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Baidu Employee Related Mechanisms and Measures

Baidu adheres to the talent philosophy of "recruiting the best employees, providing the largest growth space, focusing on the final results, paying for the value creation, and making the exceptional climbers stand out".We value employees different needs from aspects of the ion, cultivation, utilization, and retention of talents. From material security (survival and sense of security)to mental satisfaction (sense of belongings and being respected), and to the cultivation of the "super employees"(self-fulfillment), Baidu has made all-round efforts and innovation to make exceptional "climbers" standing out. At the same time, Baidu follows the concept of sustainable talent development to implement forward-looking strategies of talent reserves and builds an enabling environment for talent cultivation. By doing so, we create a more mature talent supply chain, thus realizing a mutually beneficial symbiosis between the individual, the organization, and society.

I. Exclusive Talent Recruitment

Baidu has established a diversified recruitment system and multiple recruitment programs with the self-developed Intelligent Recruitment System to improve the recruitment process.
The Management Standard of Baidu Recruitment explicitly states that in the recruitment process, every candidate should be respected and provided with equal competitive opportunities, ensuring equal treatment regardless of gender, race, skin color, age, nationality, religious beliefs, physical disabilities, etc.
Baidu emphasizes in interviewer training that interviewers should screen and assess candidates fairly and impartially, while respecting the diverse characteristics of employees. Interviewers should not discriminate against candidates based on factors such as gender, age, financial status, marital status, appearance, religious beliefs, political stance, sexual orientation, etc.
In addition, our algorithm can further help to adapt the right candidates to the right position by spotting the potential connection between resumes and job descriptions.

II. Talent Cultivation

1. Hierarchical Governance of Talent Cultivation

As for talent cultivation, Baidu has a clear hierarchical governance mechanism:

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2. Talent Cultivation Mechanism

Baidu Talent Cultivation Platform and Cultivation Mechanism

Baidus Diversified Training Policy

Baidu is committed to ensuring equal training opportunities for everyone. To support female managers, Baidu has established the Baidu Womens Leadership Forum, which aims to help female employees achieve better career development. For employees from different countries, regions, ethnicities, and genders, Baidu has created a learning module titled "Inclusive Baidu Workplace Culture" on Duxuetang, the online Baidu School, to foster an equitable and inclusive work environment.

3. Baidu Employee Growth Mechanism

Baidu Employee (Manager) Growth Mechanism

  1. The series of leadership development training programs developed by Baidu, including Qihang (for new managers), Qingzhou (for technical managers), Fenglei (for young high potential talents), Leadership Plan (for director level managers), Mini MBA, as well as external funding programs such as ing middle and senior executives to pursue EMBA, aim to provide managers with a comprehensive leadership training system to ensure their leadership in innovation, change, and team development.
  2. Baidu offers a wide range of practical courses to enhance leadership and competency, targeting the management actions and differnet levels of managers. In to cultivate the next generation of managers, the designed courses include dimensions such as business, innovation, management fundamentals, and leadership. The specific courses include Business acumen courses, Innovation workshops with business acumen, AI native design workshops, Management Fundamentals series, Performance Evaluation workshops, Making People Act, and more. More than 100 training courses are conducted annually, covering a total of 3,000 people.
  3. Baidu designs a special development plan for high potential reserve talents in management, product, technology, sales, and other fields. Through mentorship, targeted ability development, face-to-face communication with executives, and external study tours, Baidu provides targeted development support for high potential reserve talents. Baidus recent practices include successfully matching mentors for high potential employees, organizing multiple specialized training sessions on strategic thinking, project management skills, and talent recognition abilities.

III. Talent Rights and Interests Protection

The Baidu Employee Manual stipulates that we pledge to comply with the Universal Declaration of Human Rights, the International Covenant on Economic, Social and Cultural Rights, the International Covenant on Civil and Political Rights, the ILO Declaration on Fundamental Principles and Rights at Work, the United Nations Guiding Principles on Business and Human Rights, and the United Nations Global Compact. We are committed to respecting and safeguarding the human rights of our employees, eradicating any discrimination in employment and industry, and refraining from any actions that disregard or violate human rights. The Baidu Employee Manual is an important system within the "System Confirmation Letter" and is signed by all employees upon joining the company.
Baidu has established the Baidu Human Rights Policy, constructed a human rights tracking indicator system, and regularly carries out company-wide due diligence processes. Annually, it tracks the human rights protection status of internal employees, identifies potential impacts and risks, and discloses this information in the ESG report.

1. Compensation and Performance Incentive

Baidu implements a scientific performance assessment mechanism and has established systems such as the "Baidu Performance Management Standard," regularly evaluating employee performance. This allows employees to fully understand the alignment between their job responsibilities and their capabilities, providing strong support for their continuous improvement.

1.1. Compensation System

Baidu determines its compensation strategy based on talent strategy positioning. On an individual level, the pay level is determined based on the position and capability level of the individual, with corresponding short-term incentives and salary increases based on performance.
In collaboration with third-party professional institutions, Baidu researches and analyzes outstanding external compensation and incentive events, takingaccount the development of various regions and local consumer spending levels to provide employees with compensation that is competitive externally and fair internally.
Baidu has established a job family management model, which is dividedmultiple job groups (i.e., sequences) based on different requirements of jobs, positions, or capabilities. Each job group is further dividedlarger sequences, smaller sequences, and sub-sequences. An individuals job falls under a specific branch within a job group and is defined by their level of capability within that branch. Different compensation designs are carried out for different sequences and levels, with all sequences featuring performance-based pay, although the frequency of distribution may vary. Additionally, the proportion of the variable part in the overall compensation may differ depending on the position.
Employees who have objections to the compensation and performance can communicate the details through discussions with HRBP or via email. After discussing with the employees supervisor, the HRBP provides objective advice, assesses the reasonableness of the employees claims, and offers timely feedback.

1.2. Performance System

The main process of performance management consists of three parts: goal setting, performance coaching, and performance evaluation. Goal setting is achieved through employees filling out quarterly OKRs (Objectives and Key Results), which should be aligned by employees and managers through communication. Subsequently, managers provide performance coaching to employees, including daily coaching and quarterly OKR reviews. Finally, employee performance is rated based on the employees task performance and contextual performance, takingfull consideration the employees contribution to tasks and the broader impact of their work. This performance evaluation mechanism applies to all full-time employees at Baidus headquarters and branches.
Baidu uses the IMPACT (Chinese name "Business Contribution Degree") concept model for annual performance evaluation. The annual performance evaluation is initiated at the end of each year, mainly assessing employees annual work from two dimensions: task performance and contextual performance. The annual performance evaluation includes five steps: self-evaluation, peer evaluation, line manager evaluation, performance calibration, and confirmation and approval of evaluation results. After the evaluation, the direct manager will communicate with the employee based on the performance evaluation results and help them improve their work performance through a Performance Improvement Plan (PIP). During the performance evaluation process, if there is any significant disagreement with the evaluation results, employees may communicate and appeal according to the performance appeal process.

1.3. Incentive System

Baidu has established effective long-term incentive plans for key talents at or above a certain management level who can create significant value, as well as high-potential talents who demonstrate excellent performance and show good potential for value creation. These incentives include stock options and restricted stock units. Currently, Baidu implements the "2018 Equity Incentive Plan," which complies with U.S. regulatory requirements and discloses basic information such as the number of shares granted, the proportion, and the covered group. The plan mainly targets groups that can contribute to the companys long-term development, covering professional employees at certain levels or above, middle and senior management, and board members. The equity incentive plan is primarily a time-based vesting plan for employees, who can trade their vested shares in the market after receiving them.
Baidu has designed a short-term incentive mechanism for all employees. The intensity of the incentives and the frequency of bonus distribution are tailored according to the characteristics of different sequences and job responsibilities and are flexibly adjusted according to the development of the business. This includes monthly, quarterly, semi-annual, and annual bonuses, with the bonus amount and frequency determined based on the characteristics of different job sequences and responsibilities, ensuring a 100% coverage rate.
Additionally, Baidu has established the "Baidu Top Award" and "Baidu Pride" as mechanisms for rewards and recognition. The "Baidu Top Award," proposed by Baidus Chairman and CEO Robin Li in July 2010, is the highest-level award within the company. It targets grassroots employees below the director level who have made outstanding contributions to the company, encouraging the fundamental spirit of the Internet industry: "small teams make big things happen." It is the highest award given to ordinary employees in Chinas Internet companies, with each winning team receiving 1 million USD. "Baidu Pride" is an important mechanism for recognizing outstanding talents and teams, launched at the end of each year for all employees, aiming to discover individuals and teams that have truly contributed to the company and actively practice Baidus core values of "simple and reliable."

2. Non-salary Benefits

Baidu cares for every employee. We have developed the Baidu Caring Benefits Management and Baidu Community Management System to provide all regular employees and interns with benefits in addition to their salaries, so that they can continuously feel the warmth from the company.

3. Employee Health and Safety

Baidu believes that equal protection and comprehensive occupational health and safety measures are the fundamental commitments of a company to its employees. Baidu has established a comprehensive occupational health protection and safety management system.
Baidu strictly complies with the Labor Law of the Peoples Republic of China, the Law on Safety Production of the Peoples Republic of China, the Fire Protection Law of the Peoples Republic of China, and other relevant laws and regulations on occupational health and safety as well as fire safety in the workplace.

Internally, Baidu has established several rules and regulations, such as the Baidu Specification on Office Management and the Baidu Office Emergency Plan, which are applicable to all Baidu office premises with the aim of ensuring workplace safety.

Baidu Employee Health and Safety Management Measures

IV. Sustainable Employee Engagement Mechanisms

Smooth communication mechanisms, effectively functioning appeal and complaint mechanisms, as well as comprehensive satisfaction surveys and feedback mechanisms, are the prerequisites for truly achieving employee engagement and are also important components for the sustainability of employee engagement mechanisms.

1. Smooth Communication Mechanisms

The Baidu Employee Manual specifies that "Open communication is encouraged. Employees can discuss any issues related to employee management with their immediate supervisors, head of business, Human Resources Department, or senior managers of the company at any time. We desire to create an open and comfortable working environment for every employee by constantly improving employee policies." This article provides an institutional guarantee for smooth communication mechanisms.
Baidu has various internal channels for communication, such as an intranet platform, which includes a Bulletin Board System, Q&A Section, and so on for all employees to air their views. Through these channels, senior managers and personnel in charge of business or products can understand what employees really think. Positive interaction and open communication are encouraged in the intranet, while deleting meaningful feedback posts are objected to. In the Q&A section, all questions can be asked or answered anonymously in to alleviate any concerns.
Besides, there are other events for internal communication, such as the monthly Senior Management Face to Face, Summer Party, and annual party at the end of the year. Senior Management Face to Face has been held for 22 sessions since June 2018. In this event, senior managers discuss the latest strategic direction and updates about Baidus business with all employees and answer questions of common interest. These questions are those posted in the Q&A section on the internet platform or voted by employees before each session. Employees who cannot come in person can watch the live streaming and ask questions, or watch the playback on the online platform of Baidu School. The meeting minutes are also available online after the session to ensure transparency of the content.

2. Effective Mechanism for Appeals and Complaints

Baidu has set up internal feedback and complaint mechanisms for all employees. Employees can raise their questions or suggestions via email, intranet platform, and other channels, or inform the Human Resources Department via email if they are involved in controversial issues. The person in charge will help the employee contact the relevant person within the prescribed time to discuss the settlement of disputes.

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3. Customized Survey on Employees’ Satisfaction

Since 2011, Baidu has regularly conducted the "Human Capital Index (HCI)" survey for all employees, aiming to understand employee satisfaction and the issues they encounter at work. This comprehensive feedback from different perspectives provides suggestions and references for optimizing and improving company management. The HCI survey is officially launched in November each year and lasts for 10 working days. In 2019, the HCI covered more than 20,000 headquarters employees, with an average response rate of 97% from 2017 to 2019.
Starting from 2020, Baidu began to implement a more flexible satisfaction survey. Instead of a unified HCI survey for all staff, each BG (Business Group) launches surveys freely based on their business and management needs. This adjustment makes the survey more diversified and timely in reflecting the situation, and the organization can also respond quickly, take corresponding actions, and achieve optimal adjustments based on the survey results.
In addition, Baidu has innovated a convenient channel for collecting employee feedback—the "Mini Pulse Survey." It is a mini tool that assists in organizational diagnosis and is a new channel for employees to voice their opinions, with an anonymous protection mechanism.
To understand employee engagement and organizational climate, Baidu conducts a quarterly survey for all employees. Regularly, it makes a comprehensive evaluation of the atmosphere, morale, and sense of mission employees feel within the Baidu organization, reflecting the overall employee engagement. Based on employee feedback, timely insightsengagement and organizational climate issues are gained, allowing for prompt improvements in management.