News Story
RETAINING STAFF IN CHINA
In China’s booming economy, nearly every sector is facing unique sets of challenges. It could be argued that managers with HR responsibilities face the most complicated of those challenges, regardless of the business sector they operate within. Emma Charnock, Business Director of Hays in Hong Kong and China, here explores.
China’s increasingly competitive pool of labor means that businesses have started exploring new and innovative ways to attract new talent. But one area commonly neglected by companies is retention. Considering China has one of the highest turnover rates in the world, it is surprising that retention simply isn’t getting the attention it needs. So what’s to be done?
First, it’s important to recognize that managing staff in China can be completely different than managing staff in other countries. Foreign managers within large multinationals need to understand the differences or risk losing their staff.
For example, “coaching” does not exist in China. Managers do not work with an employee to set goals and empower them to develop or improve their own skills or performance or guide them towards new learning. Instead, a more direct leadership/supervision style has to be employed and it can take long periods of time before coaching can even be considered.
Another example is the perception employees’ hold of managers. Local Chinese employees view their manager as the epitome of the business, like a ‘hero’ of the company. They expect their manager to know all and be all. Rather than a facilitator working with staff to gain the best from the group, in China direction needs to be unequivocal and concrete.. Communication flow should occur in very straight and stringent lines. Skipping a step, or going around a person, results in loss of face.
Recognise that front line managers are the key to retention. Remember people join companies and leave people. Managers are at the coalface, so objectively assess how good they are at motivating and inspiring team members, managing good and bad performance and setting useful goals. If training in any area is required, arrange it.
Multinationals simply have to adapt to this way of management, with cultural-awareness training essential for any new manager to China.
Secondly, provide career progression opportunities for all staff. Lack of career progression is often the primary reason given by candidates when asked why they are looking for a new job, followed by a desire for new challenges. Interestingly, these two considerations are often given greater importance than salary.
Employees need to know more about promotional opportunities available, so communicate your plans for the future and don’t let employees become stale or bored. Obviously every organization has different parameters within which they must work, but remember a retention plan including career development does not necessarily mean promotion, although it certainly can. It is as much about an employee’s ability to see a clear path of progress and know exactly what they need to do to achieve it.
Thirdly, plan to some extent a new employees’ first few weeks. Don’t forget that the process of recruiting a new staff member isn’t finished the day contracts are signed. Without an effective induction program, your new employee may feel that they don’t fit in and perhaps resign.
An induction program builds confidence and competence at the commencement of the employment relationship. One approach is a buddy system, which involves a more experienced staff member working with a new employee to answer any questions that may arise and generally monitor and help the new employee integrate with their new work environment. This gives a new staff member exposure to senior people in the business and forces knowledge sharing.
While these are just three of many simple steps any manager wanting to retain their staff can take, it is important to remember that a “one size fits all” approach to retention will not work for all employees. For example, some employers still believe salary is an overall umbrella fix for retention and staff satisfaction. However as noted Chinese employees are interested in career progression, as well as being part of something bigger. It is the ground level manager’s role to work with staff, build their internal relationships and make staff feel they are a valued part of the business’ bigger picture. Everyone is unique, so recognize and utilize the unique talents of each staff member.
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