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Employers in China face worst staffing turnover level

(Xinhua)
Updated: 2008-01-18 19:46

China's employers have dual problems on the hiring front as they face the biggest salary increases in Asia needed to attract talent and the region's highest turnover, according to a survey.

The findings appeared in the Friday edition of the China Youth Daily.

Nearly one-third, or 32 percent, of the employers surveyed planned to raise salaries by at least 20 percent to attract badly-need talent, said the survey by human resources company Hudson.

The survey covered employers' first-quarter plans and expectations.

Year-end bonuses are expected to rise significantly, with 66 percent of the respondents planning to increase year-end bonuses at least 10 percent and almost one-fourth planning raises of more than 20 percent.

But despite significant increases in compensation, staffing turnover has been heavy.

Across all industries, 47 percent of companies surveyed had turnover rates of more than 10 percent in the past 12 months, and 13 percent said that the rate was more than 20 percent.

China's staff turnover rate was highest in Asia, more than twice that of Japan, the Youth Daily report said. Unsatisfactory compensation and limited career progression were blamed for China's high turnover level.

Among respondents, 22 percent agreed that limited career progression was a major cause of high turnover, while 18 percent believed it resulted from dissatisfaction over money.

The report predicted a persistent increase in salary levels in China because of limited talent resources.



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