When people think about the reasons they have left an
organization or have not accepted an offer with a company, one of
the key common factors is perhaps something one might not expect:
development, or rather, the lack thereof. Compensation, while
certainly important, is often not the deciding factor in the
decision to work or stay somewhere.
The same need for development seems to be a growing emphasis as
part of the recruiting efforts in China for many organizations. The
rapidly rising economy in China has led domestic and foreign
companies to often compete for the same pool of candidates.
Job-hopping has become commonplace as the workforce's desire
for growth and improvement increases. The HR function of foreign
companies in China cannot simply focus on recruitment, but in order
to retain qualified talent, it must increasingly focus on training
and career development for its employees. This is increasingly
evident as the days of cheap labor in China are quickly coming to
an end. According to a study by the Boston Consulting Group, in
2000, China's average wage rate was about 36% of that in the
United States. By the end of 2010, the average wage rate was about
48% of that in the U.S. The Boston Consulting Group estimates that
this gap will further shrink to 69% by 2015.
To throw some more statistics at you, it is estimated that the
average employee turnover rate for private-owned companies in China
for 2010 was 18.5% (compared to 15% in the United States). Some of
the major reasons for the turnover included better compensation
packages, career opportunities, training and development
opportunities, benefits, and prospects for success. Thus, as in the
United States, the key to attracting and retaining qualified
candidates in China must be multi-faceted when it comes to a
foreign company's success and cost-saving efforts. Many
companies have begun embarking on this comprehensive approach by
focusing on college recruitment programs, utilizing social
professional networks, developing and actually providing
on-boarding and continuous training to their employees, and placing
more emphasis on career development and succession planning.
Human resources has developed into a strategic partner in most
large companies in the United States. This is even more important
when it comes to operating overseas when cultural and legal issues
come into play. Human Resources cannot be simply viewed as an
administrative function – hiring and firing, paying taxes and
benefits, etc. As the workforce in China continues to emerge into a
key contender in the global economy, so must the effort to recruit
and retain continue to evolve for companies who seek to make the
most of this workforce.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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Long experience representing many of Australia's leading employers has taught us that in employment litigation the identity of an employee's representative is a major factor in how employee litigation runs.
This WHS decision clarified the interpretation of s 19 of the Work Health and Safety Act 2011 (NSW).
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