Yuan Lingzi

 

While the rapid growth of China's economy is a blessing for most companies, it is also proving a headache for management faced with the challenge of attracting, developing and retaining top employees.

 

Common methods such as decent salaries and benefits, promotion and well-designed training programs are no longer sufficient to retain talent. Lured by abundant job opportunities in the booming market, talented employees are often poised to jump to the next opportunity.

 

One feature of China's job market is that it has plenty of talented professionals on offer.

 

But another feature is that demand for talent exceeds supply.

 

Owing to the lack of clear messages from CEOs, HR departments often find it difficult to set criteria for selection, retention and incentive plans.

 

Given the reality of China's job market, the right solution involves several different approaches.

 

A company should establish a clear "employer brand". It is difficult for companies, especially small- and medium-sized firms, to attract talent.

 

Capital strength alone is not enough, since talents often consider multiple factors when they decide which company to work for. Companies should establish "employer brand" and a good image in the job market just as they do with their product brands.

 

A clear talent identification system is indispensable. Some companies cannot find the right talent because they do not have a clear definition of the kind of people they are looking for.

 

Adopt a proper incentive system and a favorable working environment.

 

A well-designed incentive system will be very helpful to motivate and retain talent.

 

A healthy working environment includes not only sound benefits, but also well-established working procedures that allow employees to work more smoothly and flexibly and obtain a greater sense of achievement. But negative environmental factors such as bureaucracy and corporate politics should be minimized.

 

Companies should invest more in training managers because many employees resign due to the incompetence of their superiors.

 

Companies should retain people with corporate values. Most companies do this by optimizing their salary system again and again. But what keeps people in the long run is corporate values.

 

Given the fierce competition for talent in China, companies should not place a high expectation on retention.

 

A Watson Wyatt survey shows that it is good enough for an employee to work for a company for three years. People who choose to stay may not be the best in terms of capacity, but they recognize corporate values and will grow with the company.

 

Developing people inside the company is more important than smart recruitment, given the shortage of experienced talent.

 

In fact, large corporations such as Motorola and HP all have long-term training programs. Training means investment, which might not bring revenue in the short term, but will surely benefit the company in the long run.

 

The author is consulting director of Watson Wyatt Consulting's Shanghai office. The article is based on his speech at an EMBA forum held at the China Europe International Business School.

 

(China Daily January 31, 2007)