HR Headaches: The art of keeping Chinese staff (happy)

THE OUTCOME OF A STUDY AMONGST 600 COMPANIES IN ASIA NAMES STAFFING TROUBLE AS THE NUMBER ONE CONCERN - HERE IS WHAT STAFF REALLY WANT.

Staffing issues remain a headache for many HR managers in China, according to a study recently conducted by the Economist Intelligence Unit. The decisive factor why local potentials turn down job offers is not necessarily the demand for higher wages or more vacation time. If companies look at some of the secondary factors that keep Chinese workers from leaving their jobs, they might end up with some new and possibly more successful retention methods:

Training and a clear career path

Employees are less likely to leave a company if they feel that it is a place where they can grow and add value to their careers. This could be said about most employees anywhere in the world, but in China, the ideas of career and personal growth are often not separated. Learning and training are considered critical factors for staff as education is highly valued in Chinese society. This is a fact that companies which are looking to localise should take advantage of. The McKinsey Global Institute estimates that China will need 75,000 business leaders in the next ten years with currently about 3,000 to 5,000 leaders available. So instead of fighting over the existing pool, the development of "internal" talent may be a more promising approach. Local employees are already in China and they speak the language. Most importantly, they are willing to learn – according to a survey by the China Market Research Group, 90% of Chinese youth between the age of 18 and 28 look for continuing education. 41% of those same people see continuing education as the way to raise their salary and obtain their career goals. More often than not, simple practical training such as budget
planning for department managers, presen-tation seminars for sales staff or assessment training for HR personnel will help update and improve employees' skill sets - and their willingness to stay. A successful example is Cisco System's Shanghai office which runs a "management kindergarten class" for all young managers teaching them basic concepts such as how to handle key decisions.

New challenges and travel

Another way to retain employees is to provide new opportunities. One way to gauge this is by asking them at their quarterly or annual review where they see themselves going in the company, what other departments in the company they wish to experience working in. IBM has another method to see which of their employees would be ideal for which department. It uses "Personal Business Commitment (PBC)" which measures how employees meet company and department targets. An "Individual Development Plan (IDP)" contains details of training an employee feels he needs to reach these targets. If an employee has been with the company for at least two years and met their goals for IDP and PBC, they cannot be refused a transfer to another part of the company without a valid reason. That opens up a whole new window of possibilities for many employees and gives them a much larger incentive to stay with a company.

Giving local staff the chance to go abroad e.g. to a company's head office for training can be a positive challenge, especially when international travel is difficult for many Chinese. It also gives them a chance to work in an international context and gain a new perspective. This can allow for easier communication between the head office and this staff at a later stage. It will also help them develop a range of management skills they may be lacking in their current position in China. Companies such as L'Oreal and Starwood Hotels & Resorts have employed this method in China with great success.

Local networks and care

It cannot be said often enough: when doing business in China, relationships and local networks are key. That means when hiring a Shanghainese employee, one is not only benefiting from that person's skills, but also tapping into the relationships he or she has with family, friends and colleagues from previous jobs - in Shanghai. Employees are more willing to stay with a company when they work in their home city or area where they have their social network and can have the most impact. This doesn't conflict with letting staff travel – if you are allowed the chance to return home. Since there is no strong social safety net in China, many elderly people rely on their children to care for them. As this is still considered a duty by the children in Chinese society, it certainly restricts mobility. Employees might be happier to stay if their company's location allows them to fulfill their career aspirations while still living up to their filial duties. Local advantage can also be created by making sure that it is easy for employees to get to the office - either through a central office location or through transportation support such as corporate shuttle buses or a pick-up service for managerial positions.

Personal attention by superiors and the often-quoted "open door policy" can contribute significantly to job loyalty and retention. Caring for employees can also mean extending benefits to their children or elderly relatives – offering education plans or family medical care are other incentives that can be used to keep your employees from becoming job hoppers.

Find and bind

Employee retention is still the number one issue of employers in China and a tough issue to tackle successfully. The main challenge besides hiring a promising talent is making sure they will stay. Looking beyond primary considerations such as salary or annual leave might help strengthen their loyalty to the company to an unexpected extent.

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