War for best talent in China
It’s almost a paradox, there is a large workforce but a shortage of skills. This results in skilled locals having better career prospects. As workers are aware of how hard it is to find a well educated and skilled worker, they seek out challenges and better paid or rewarded positions. This leads to a high turnover volume and consequent shortage of qualified workers. The worst hit industries are retail sales and marketing.
Qualified employees now look for a chance to develop as a person and prefer performance related rewards, as they are meritocratic. Employee retention is pivotal to HR management success in China.
In order to retain the best talents in your company, you are not only to offer a very competitive salary but also need to provide opportunities for career development and personal recognition. (source 2009 Hewitt HR Watch report)