Chinese companies now seem to be facing the bitter realties of attracting and retaining talent. According to research by Mercer HR Consulting "Companies in China are struggling to retain their professional and support staff, and face either having to pay higher salaries or excessive recruitment costs.
The survey of more than 100 organisations in China, many of which are multinationals, shows that 54% have experienced an increase in turnover for professional staff since last year, while 42% have reported higher turnover for support staff.
It also found that the average tenure for 25 to 35-year-olds – the age group targeted most by multinational companies – fell from an average of three to five years in 2004, to just one to two years in 2005.
The research also found:
83% of organisations offer healthcare and related insurance to staff,
41% provide health and fitness plans 24% offer flexible working.
44% of organisations believe their employees are dissatisfied with the benefits on offer
The average cost of replacing staff at any level is around 25% to 50% of annual salary.
Here what Recruiting in China has to say about retaining top talent?
Whether they work in Beijing, Shanghai or Guangzhou, executives at multinationals who stay behind closed doors and rarely offer performance feedback or advice are bound to fail. That's because the local hires they need to run their offices and plants will be seeking out bosses who will help them advance their careers.Another example which shows why standard one shot Performance Management strategy never works in all organizations. Individual’s ability and his perception about Career growth and work content also depend on the cultural background and values.