The Seven Challenges of Employee Management in Chinese Enterprises

In China's current era and economic context, the fierce competition in the labor market is not a new topic, and this stimulating competition affects almost every industry, from the shortage of high-end talents to the labor shortage, the labor market presents significant characteristics that are different from anything we have ever known, and to attract, retain and build a group of high-quality employees who are dedicated to their work, they face unprecedented challenges. The challenge is to attract, retain, and build an engaged workforce like never before.

To understand what kind of labor market Chinese companies are facing, we have to first look at the following facts and the characteristics that underlie them:

Employment costs have been increasing year over year, and the trend is continuing, with high turnover rates: Employee salaries have been growing at about the same rate as China's GDP for nearly a decade, and in the wake of the 2009 economic crisis, salaries have been increasing at about the same pace as China's GDP, and in the wake of the 2009 economic crisis, salaries have been increasing at about the same rate as China's GDP. After the economic crisis in 2009, salaries showed a strong rebound trend, for the salary growth is still expected to be more than 7%; at the same time, the average turnover rate of Chinese employees has remained high, starting in 2009, the proportion of nearly 20%.

Workers' choice of career opportunities is getting wider and wider: the momentum of foreign companies to enter China from 2005 onwards, although somewhat weakened, but there are still a large number of foreign companies entering China every year, and has entered the foreign companies in 2009, the expansion of the Chinese market often becomes its strategic goal; with the deepening of China's market economic reform, China's state-owned enterprises and local private enterprises gradually increase the attractiveness of talent. The attraction of state-owned enterprises for new graduates is growing rapidly; high-quality graduates can choose a wider and wider range of career choices;

China's pay inflation in Asia's top: According to Towers Watson's survey, in the last three years, mainland China's pay inflation ranked in 2008 was Asia's second in 2009 dropped to Asia's sixth, and in 2010 it was back to Asia's sixth. Sixth, in 2010 and then re-ranked to Asia's second, second only to Vietnam. Although the salary is rising every year, Chinese employees still feel that the salary can never catch up with the price increase.

China's high-tech talent into a seller's market: China's supply of high-end talent is far from meeting market demand, although it is said that a large number of college graduates enter the labor market every year, but due to the structural problems of the education system, as well as the geographic distribution of colleges and universities in the status quo, so that the organization wants to talent may not be recruited in the market or, although there is such talent, but is not concentrated in the company's geographic area. in the geographical area where the company is located. Whether in terms of matching ability or geographical matching, often presenting a mismatch situation, resulting in high-end talent in the talent market supply is less than the demand for the situation generated, and in the next 3-5 years will not have the essence of the change.

The lack of mature leadership in China: Due to historical and contemporary reasons, the 45- to 55-year-old population in China is generally being held back in education. The Chinese 45 to 55 year olds are generally a delayed generation in terms of education due to historical and contemporary reasons. At the same time, China's fast-changing times have not given them enough time to settle down and develop outstanding leadership; while the younger so-called "young and strong" generation has not had enough time to develop their leadership skills. The younger so-called "young and strong" leaders are also hard to see the veteran leadership.

These are the most important of all, and they are the most important of all.

In the interesting context of China's huge population and labor shortages, the employer-employee relationship presents a different kind of game, and as a company, the enterprise, the organization in the process of attracting, retaining, and constructing a team of dedicated employees is bound to encounter a huge challenge that is different from that of any other era:

Challenge 1: Chinese employees' high level of dedication and tendency to leave the workforce is co-existing. The TW Global Workforce Research survey shows that Chinese employees are fully engaged. Employee engagement has risen rather than fallen after the economic crisis, which is good news for employers, but at the same time, employees say that if there were better opportunities in the marketplace, he/she/they would go after them. This interesting state of affairs stems from the fact that Chinese employees are very optimistic about future market opportunities. The data shows that 46% of employees in China believe there will be more job opportunities in the next 12 months, compared to 21% of employees globally.

Challenge 2: Low satisfaction with pay. It's not unusual for employees around the world to rate their own pay as the lowest of all, but Chinese employees rate their own pay lower than employees in other Asian or Western countries. Not only is this low not only for overall compensation, but also for internal fairness and external competitiveness; and if we further analyze the reasons, we find that poor communication about compensation is the main reason.

Challenge 3: Strong demand for career development. Our research found that career development has always been a top concern for employees in China, and a key driver in determining whether a position is attractive, retains talent, and generates high levels of engagement, but so far employers in China have felt that this has been a headache, and that it seems as if the company's development never catches up with the demands of their employees' career development.

Challenge 4: The gap between high leadership expectations and reality. Research has found that what employees expect from leaders and managers is different from what they think they really? get.

Challenge 5: Increased expectations of employers in terms of retirement responsibility. In the face of China's aging society, more and more employees are concerned about retirement, while the insecurity of the social welfare system makes them more anxious about their future life after retirement; this anxiety makes them have higher expectations of the organization, especially in the future pension, as well as the responsibility of medical care after retirement, they hope that the current employer can take more responsibility.

The Challenge

Challenge #6: GenY: China's Post-80s is a new generation of laborers that cannot be ignored. The characteristics are obvious. We have done a special study on this group,

Challenge 6:GenY.