Finding and keeping good employees in China

Finding and Keeping Good Employees in China

- Ambition Recruit

Finding, paying and retaining employees in China remain among the toughest challenges for foreign SMEs. Foreign companies are facing high employee turnover in China across all industries.

The Current State of the Job Market in China

Hiring is difficult and becoming expensive. China’s skilled labor shortage is most prevalent in middle management. Foreign banks that are doubling their outlets over the next three years, international retailers that are each expanding to over 100 outlets, and hotel brands that are growing rapidly are all looking at the same pool of potential hires – particularly in middle management. This competition for talent is pushing China wages up an average of 15% per year. It is not uncommon for key talent to receive annual increases of 50% to 100% in the current market.

The Most Common Reasons We Have Found for Talent Changing Jobs in China

Limited career growth, as they have outgrown their existing roles.

Not satisfied with new structure in place or new direct reporting manager.

Serial job-hopping in order to get better packages and opportunities to develop more skill sets.

Best Practices that We Have Identified in Companies with Good Retention Rates

Internal promotion as part of the corporate culture. As employees see that a company rewards them through promotions or greater responsibilities, they will be more loyal.

Training and exposure. As mentioned previously, offering employees overseas travel and training increases hiring and retention rates. Develop close relationship with employees. People are keys to a SME’s success in China. A smaller company can develop close relationships with its employees. Large organizations do not generally have this opportunity because of their large structures and bureaucracies.

Recognize and reward the achievements of employees, which will give them a sense of importance and let them know that the company appreciates their contributions.

Train and equip employees with the knowledge and materials required for them to perform at work

Consider Hiring Talent from Another Industry

Hiring managers should consider potential hires from other industries. Some people are remarkably versatile, and able to switch from one industry to the other with ease. Such candidates bring additional value in that they can provide a fresh point of view to the company. Regardless of whether a company considers this approach ideal, the reality is that employers must find ways to be flexible in China’s job market.

We have had success in hiring candidates from other industries for our clients. In one instance, a US retail client was launching a brand that allows its clients to customize their items. We found someone from the hotel industry with experience in customer servicing to fill the position. It was much easier for the candidate to learn the product than it was for the typical retail industry potential hire to learn how to deliver the desired level of service.

Provide Career Development and Training for Employees

Companies that dedicate significant resources to training, send employees on international assignments, or cross-train them at home headquarters do well in attracting talents. Recruiting is about more than just offering good packages.

Ambition Recruit specializes in finding and recruiting talent at all levels from Directorial, Managerial, and Executive to support staff levels in various specialized industries. For more information on employee retention strategies in China, go to tour website at www.ambition-china.com.

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