XPENG’s Human Approach To Technology: Part 1

While listening to the technical discussions at XPENG presentations and press conferences, I started to see the people behind the technology. While we can get caught up in the technical details, all the progress that we see comes from human ideas and the hard work of teams of people. Every technology story has a human story behind it. That made me start thinking about how XPENG attracted and developed its people. I started thinking about the facilities I had seen and the people I met, and I started asking questions.

My questions led to a conversation with Zheng Yeqing, Vice President, Chief Council and Chief Compliance Officer for XPENG. In speaking with him, it became readily apparent that he wasn’t the typical corporate lawyer. Before getting his JD from Yale Law School, he earned a Master of Environmental Management (M.E.M.) degree from Yale, and a Bachelor’s degree in Environmental Engineering from Tsinghua University. After Yale, he also spent over a decade working on Wall Street and lived in New Jersey. As a New Yorker focused on clean technology, he was easy to relate to. Along with fellow Yale alum and President Brian Gu, who worked on Wall Street as an investment banker, the New York perspective is not foreign to the leadership of XPENG, making points of reference easy.

Mr. Zheng Yeqing recounted meetings six years ago (the company is only 12 years old) over shared $1 dishes in their more modest previous headquarters. He recounted people of different backgrounds collaborating to find solutions to technology problems without the typical corporate silos. But you get the idea that these people, coming from Ivy League degrees, high-speed Wall Street careers, and some of the most advanced technological backgrounds, were not just trying to come up with technology solutions. They could easily work anywhere and make a lot of money. They chose to come together, initially in an environment that was far from glamourous, to build a better company.

In my experience, the people at XPENG are open and accessible. You get none of the top-heavy hierarchy that is prevalent in many automakers. I often found myself starting conversations with department heads, executives, and top minds in their technology fields without knowing their status, only to figure out their elevated positions later. They are more focused on innovation than they are on ego. And they are creating significant innovations in the process. That impacts their employees. As Mr. Zheng Yeqing describes:

“I think it’s driving people to be innovative, to instill this kind of a higher calling in their work. You are not doing something that is a dime a dozen. There are dozens, even hundreds of car companies in China. You can work in every single one of them, and there’s no difference. But here, you’re doing something that is exceptional. This is cutting edge. This is catching up with the world’s leading technology. And we know that they are not talking rubbish. They are actually doing something. And we can see the progress and the kind of work they are actually delivering every single month, every single quarter. And that’s really motivating people. You need to instill this higher calling in their work and make them believe that they are doing something that is exceptional and cutting edge.”

If you have ever spoken to a young engineer, they want to work on “cool stuff” and the latest technology. Young engineers want to work with technology leaders, rather than being lost somewhere in the hierarchy beneath them. They want the feeling of efficacy that comes from seeing the impact of their contributions. Beyond the appeal to them personally, they also see these projects as helping career progress. That focus on exceptional, cutting-edge work motivates engineers.

Official Commitments and Human Implementation

XPENG has won multiple ESG and employer awards from global organizations and organizations within China. They prohibit discrimination in any form, including but not limited to gender, age, race, nationality, religion, or other factors. They also strictly prohibit any use of child or forced labor within their organization as well as within any business unit or partner. Standardized employment practices and employment contracts are upheld with all regular employees, with corresponding service agreements for interns, temporary workers, and other non-regular employees.

The use of violence, such as corporal punishments, threats, or assaults, are also prohibited. Multiple communication channels have been established for employees to provide feedback. Over 97% of employees received training last year. XPENG also provides scholarships for employees pursuing advanced degrees. If you read through their ESG report, it can almost feel like a bit of a throwback to when many companies proudly promoted more progressive policies. However, much of the emphasis in the report is on the “Social” category.

Beyond all the processes, commitments, awards, and statistics, what really impresses is the humanity that you can in their initiatives. When touring XPENG’s campuses, it feels comfortable. People in the headquarters tend to be dressed in blue jeans or athleisure wear like hoodies and sneakers. It feels more like a tech startup than a traditional automaker.

Food in the cafeteria was surprisingly good at both headquarters and the factory. Employees get two meals provided per day and have access to the reasonably priced cafeteria after their shifts. On my trip to the XPENG headquarters, I had Peking Duck that would easily cost ten times as much in the US. I had grouper at the factory cafeteria. Meals are designed for leisurely consumption, rather than speed. More like a real restaurant than fast food.

However, for those hoping for a home cooked meal, there are also options. XPENG has a program called “Mom’s Kitchen” where mothers nominated by employees set up booths to provide meals. They do not pay rent, fees, equipment, or commission, and take home the earnings from the meals they provide. While the number of meals per “mom” is limited due to not wanting to overwhelm them, it provides a means for family members to earn money. And it provides employees who come from distant regions with a taste of home. It is part of what XPENG calls its “Six Goods” — good food, good health, good learning, good family life, good benefits, and a good workplace. This approach to employee experience intends to not just support productivity but also support a sense of belonging.

XPENG also built a park next to its headquarters, with landscaping installed since my visit in November. This is part of an urban ecological restoration effort and includes native species to support local biodiversity, helping to attract bees, butterflies, and birds.

Within the park, there are public spaces where concerts, sporting events, and activities are held. 20,000 employees and their families participated in their annual Family Day at the park. Employees often enjoy their lunch breaks outside.

About a 5-minute walk from their headquarters is a small historic river that connects to the Pearl River 10 km away. Due to environmental protection efforts, including water recycling onsite, this river offers waters available for fishing or swimming (a stark contrast to urban rivers in NYC). The park also connects to miles of running trails.

Benefits of Location

For those of us who have lived through the NYC rat race, especially at the entry level, affordability can be oppressive. Rent in NY can often take up half of your pay, even with roommates and a 45-minute commute. Student loans often take a good part of the rest. While NYC is a diverse, energetic city, everything is expensive. Instant ramen was consumed more out of necessity than preference.

In comparison, the environment surrounding XPENG’s Guangzhou facilities is far more humane. Apartments within walking distance in the residential areas of Guangzhou are roughly $200 a month and XPENG provides heavily subsidized dormitories. Public transit is available. Food at grocery stores is surprisingly inexpensive. A 4000 square meter (40,000 square foot) gym is available to employees, removing another expense, while improving wellbeing. As paying off their education does not present the financial burden that it does in the US, employees get to keep more of what they earn. Although we did not get into pay scale, due to the cost of living, entry level employees are able to save money from their paychecks from the start.

Beyond the neighborhoods surrounding their facilities, Guangzhou is also a surprisingly safe and clean city. Made especially clean and quiet by the proliferation of EVs. People feel comfortable congregating with their families in public places, even after dark. There are also multiple festivals and events in the city throughout the year.

Benefits of Inclusion

The automotive industry can be a bit of a “boy’s club.” Often a meeting of executives will be all men except for a female interpreter. XPENG Motors is led by President Ms. Wang Fenying, who directly reports to CEO and Chairman He Xiaopeng of XPENG Group.

However, one area where XPENG really stands out is its approach to maternity leave. They offer six months of paid maternity leave and let parents returning to work leave an hour early for six months after that. That appears to be better than any automaker in the US and represents a leading position globally. In addition, bonuses are given out to parents having their second and third children. These policies are especially appealing to young women and create stability in the workforce.

But this isn’t a handout. China is filled with many talented female engineers. Those engineers contribute aspects to the design and engineering of vehicles that might be missed by someone built differently with a different gender. From sightlines, seat shape, adjustability, entry and exit, airbag placement, control positioning, steering effort and storage to style preferences, design changes can range from subtle to significantly impacting safety and useability. That is not to say men can’t contribute to designs to be used by women and women can’t contribute to designs intended for men, but things can be missed when a group is not represented in the design process.

And it is paying off. Women played essential roles in the development of the MONA M03, which is XPENG’s top selling model. That model is also primarily purchased by women, especially young, first-time buyers.

In addition, special attention has been paid to recruiting employees with disabilities. This is a personal priority of CEO He Xiaopeng. Accessible design features for useability have been incorporated in their new headquarters. In addition, funds are provided to help care for their disabilities. While this may seem like an altruistic move, in a country with an aging population, as well as for a company growing in the aging European market, accessibility in design for people with limited mobility becomes a priority. Including the voices of those with disabilities in design and development has a great potential upside for the company.

More To Come

At this point, I have a feeling that this article contrasts with the preconceived notions that many people have about people working in China. Meeting the people at the top companies in China is a definite eye opener, even for relatively open-minded people coming from the West. It can be convenient to oversimplify everything into companies and countries and forget that they are only as successful as the people within them. XPENG seems to be an industry leader in how it develops the people who develop its technology. I’ll touch more on the interaction of people and technology within their company in a future article.

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