By Lucille Wu

China lacks a well-established talent pool of mid and top-level leadership which is hampering the economic growth of Chinese and foreign-invested businesses. A priority for organizations is therefore to develop tailored HR policies and practices which help them attract, retain and expand their talent pool in China.

As the Chinese economy grows and moves into more value-added work, the challenge of attracting and retaining staff is rising with skill levels, as demand outstrips supply.

Despite these considerable challenges, the solutions are relatively simple.

Foreign-invested companies based in China need to adapt to the local environment and change their viewpoint to look from inside China out, rather than outside in. They need to rethink their working practices, taking Chinese culture into account, and resist the urge to impose Western management processes and thinking on their Chinese employees.

Chinese small and medium-sized enterprises also have tough challenges; they will have to work even harder at retaining managers who would rather work for foreign-invested companies. Chinese domestic companies need to create a working culture and environment which is more attractive than that offered by competitors.

All organizations need to take into account the multiple factors at play that affect employee attraction and retention, highlighted in the research commissioned by Manpower China. They need to be more thoughtful and go beyond simply asking employees why they leave, or why they want to work for another employer, as this is unlikely to give the insights they need.

Organizations must also focus on employee engagement to ensure that their workforce is committed to the long-term success of their organization and want to stay with the organization to honor this commitment. Engaged employees will also act as ambassadors and produce better results.

Companies operating in China need to develop an integrated, strategic approach to attracting and retaining talent and ensuring their employees are fully engaged. The HR goals in China are the same as those elsewhere in the world; for the organizations that can develop new approaches for the same ends, and turn cultural differences into a help rather than hindrance, there is virtually no limit to the growth they can enjoy.

Lucille Wu, Managing Director of Manpower Greater China

This was the third and last part of the Manpower White Paper “The China Talent Paradox“.