When entering the China market, many multinational companies assume that a country with a population as large as China’s would not have a labor shortage. However, the fact is that qualified labor is at a premium in China. Under the booming economy, the rising demand for Chinese labor has exceeded its supply. Hiring talented employees—young, upwardly mobile Chinese professionals with advanced skills and an understanding of international business—is even more difficult. Because of the limited availability of such employees, the competition for this talent is intense.

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By Christine Liu McLaughlin and Margaret Kurlinski

When entering the China market, many multinational companies assume that a country with a population as large as China’s would not have a labor shortage. However, the fact is that qualified labor is at a premium in China. Under the booming economy, the rising demand for Chinese labor has exceeded its supply. Hiring talented employees—young, upwardly mobile Chinese professionals with advanced skills and an understanding of international business—is even more difficult. Because of the limited availability of such employees, the competition for this talent is intense.

With tough competition comes a high turnover rate. According to a report by Hewitt and Associates, China has one of the highest (if not the highest) employee turnover rates in Asia, around 14% in 2006. It is no wonder that a recent poll by the American Chamber of Commerce-Shanghai revealed that Read the rest of “Attraction and Retention of Chinese Employees: A Legal Perspective” or post a comment