Managing Chinese Workforce: Employee Status in China

By Biao Wang (MBA)

Camellia Universal Limited9 April 2011

Moscow, Russia

Camellia Universal Limited 2011

Introduction

The importance to success in China is hiring suitable people.

It is vital to invest in training for skills and cross-cultural relations for both Chinese and foreign employees.

Chinese people work hard for the benefit of their ancestors, for their future and offspring.

In order to retain good employees, it is important to open up the prospects for them to reach management or board level in the longer term as well as offer an income increase every year.

How To Recruit Employees in China

Recruitment agencies.

Recruitment websites.

Recruit from the Chinese people at Russian universities.

Awareness When You Are Recruiting

Many employees in China will leave their current companies for ones that are offering better pay packages.

It is important to note that salaries in China have increased over the last few years and will continue to do so.

It would be advisable to conduct some market research to get a clear idea of appropriate income levels for the positions you wish to fill.

Common mistakes include hiring Chinese staff from outside mainland China who do not speak Mandarin to the level required.

Offer Appropriate Compensation

Provide sufficient compensation.

Offering employees the opportunity to train overseas.

Be sure to invest in the mentoring of Chinese management-level talent.

The Employment Law Awareness

If you are employing staff in China you will need to make sure that you comply with China’s Labour Law, which

came into effect on 1 January 2008.

Current Employee Status in China

Every year, around 30% of employees in China decide to receive the year-end bonus after the Chinese New Year, and then leave their jobs.

Labour shortages in manufacturing.

Across the country in China, local governments have been raising the minimum wage.

Conclusion & Recommendation

In order to manage the Chinese workforce, it is fundamental to be aware that “Employees are God” and the manager should focus on the following elements in order to keep a happy and healthy workforce:

To have the attractive direction of career development To provide good working wellbeing To give trainings To open promotion opportunities To give reasonable income To have the attractive bonus

Questions & Answer Time