Silver Lining for Employers in China Slowdown -

The cool down in China’s torrid growth is benefitting employers in China by improving employee retention, according to Derek Hu, Managing Director Shanghai Office, DHR International. “The economic slowdown means that people are less likely to be hired away. Before we had the risk that new hires would leave very quickly because they had a better offer elsewhere,” Derek said.

The truce in the war for talent is providing unforeseen benefits for employers by improving IP protection, succession planning and expense control.

IP Protection: “Lower employee turnover will give employers better intellectual property protection,” commented a Project Manager, Commercial Development, at a global manufacturer of resins and other intermediates. “In the past there was a risk that employees in China who were hired by your competitors would leave with your IP.”

Succession Planning: Now that growth has moderated to a mere 6 -7%, employers are having more success retaining and developing their new hires. This gives them breathing room to develop meaningful succession plans for China that include long term employee development and training and the opportunity to localize their management organizations.

Expense Control: Growth in China slowed from its peak of 14% last year. When the economy was expanding at double-digit rates, salaries also rose at a dizzying pace. The promise of ever-increasing salaries lured employees to job-hop. The market cooling allows employers better control over their Asia p & l’s.

“Despite the benefits, the slowdown in the war for talent can still be a double-edged sword,” said Derek Hu. “Finding the right people may still be challenging because the best candidates are more reluctant to move at this time.”

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Employees at China Manufacturing Companies -