Attracting and Retaining top talent in China by Multi-national companies

Stud

Prof

Course

08 October 2007

A Booming Chinese Economy and the Ensuing Human Resource Nightmare

It has been said in the past that China is like a sleeping dragon . And when the dragon awakes the whole world will know . The prophecy has come to pass and much more . China has not only awakened from deep economic slumber but it has also taken the whole planet by storm transforming how business is done in a global way

But as the Chinese government tries to steer a zooming economy into a

br sustainable future , problems began to arise . They became a victim of their own success . As China began to improve on their image from being a mere major outsource player into a major leader in innovation and technology they are beginning to feel the seriousness of growing pains With regards to the latter China is learning fast that it will require significant upgrades in their human capital if the country expects to play with the big boys . But it is in this area that China is critically in need of help

This study will look into the effect of China 's booming economy in terms of attracting , developing and retaining high quality employees CEOs , consultants , etc . An explanation on how things came to be will also be provided to serve as background information to fully grasp the context of the problem

Staggering Growth

In the past few decades China is enjoying robust economic growth as one of the major recipients of Foreign Direct Investments . Those who have been following the headlines and business related news are well aware that Multinational Companies MNCs ' that invested in China were able to post spectacular profit . One can easily deduce as to the reason for their success . The said MNCs have found a use for China 's huge labor market that can be easily transformed into a cost efficient workforce But it seems that this is already old news

The MNCs that are in China are worried about the current trend - the lack of skilled employees that can improve the stability and competitiveness of the company . The high turnover and poaching of employees is a picture that suggests non-sustainability and this has to be resolved if MNCs could hope to continue their winning streak

Human Capital

It is common knowledge in the Western world that China is a land of more than one billion people . How then , can a serious lack in human capital be explained considering such an enormous population ? The answer to that question serves also to frame the problem

Adrienne Fox was able trace the root cause of this nation 's most immediate need and she wrote , China 's economic shift up the value chain - from parts manufacturing to research and development - represents another change . With that shift toward higher-end manufacturing , innovation and services comes greater need - and competition - for experienced and skilled labor ( 2007 ,

. 1 . It is now clear that China 's economy is evolving to a point that there...