Tenaga eksekutif di China bergaji amat tinggi. 
Eksekutif menengah bergaji $ 2,000 - 3,000 sebulan,
eksekutif yang lebih tinggi $ 4,000 - 5,000 dan
eksekutif puncak $ 8,000 - 9,000.  Itu belum termasuk
perks, seperti mobil dan rumah.

Mengapa begitu ?  Yah, karena tenaga kerja di
posisi-posisi itu susah didapat, dan kalau didapatpun
mereka dalam waktu singkat pindah kerja dengan gaji
yang lebih besar.

Seperti di India, di Chinapun tidak sulit memperoleh
tenaga teknis.  Tapi untuk job marketing dengan budaya
persaingan, bukan main susahnya.  Ini karena mereka
yang sekarang di usia kerja, tidak punya role model
untuk itu -- karena diatas angkatan mereka adalah
pegawai negeri atau orang partai.  Kita masih ingat,
bahwa revolusi kebudayaan (1966-1976) menghapus sama
sekali kelas manajemen.  Andaikata China-manusia, dan
bukan China-negara, tidak ciamik, jangan diharapkan
dalam waktu singkat China dapat menjadi kekuatan
ekonomi dunia seperti sekarang.

Salam,
RM

-------------------------

China's people problem

Apr 14th 2005 | HONG KONG AND SHANGHAI 
>From The Economist print edition
 
 

 

Problems recruiting and retaining workers,
particularly skilled ones, are raising the cost of
doing business in China



CAN China—population 1.3 billion—really be running
short of people? In many of the most important parts
of its booming economy, the answer, increasingly, is
yes. Though China has a vast pool of unskilled labour,
firms in the south now complain that they cannot
recruit enough cheap factory and manual workers. The
market is even tighter for skilled labour. As the
economy grows and moves into higher value-added work,
the challenge of attracting and retaining staff is
rising with the skill level, as demand outstrips
supply. The result is escalating costs for firms
operating in China. “If you think that China is a
cheap place for labour, think again,” says Vincent
Gauthier of Hewitt Associates, a human-resources
consultancy.

The particular shortages mentioned most often are of
creativity, of an aptitude for risk-taking and, above
all, of an ability to manage—in everything from human
resources and accounting to sales, distribution,
branding and project-management.


Though developing economies often encounter talent
shortages as they start to grow, China's history has
left it with some peculiar deficits. Its Confucian
heritage, which emphasises rote learning and
hierarchy, may partly explain why many graduates,
despite good paper qualifications and English language
skills, are often cautious about taking the
initiative. Some firms complain that China's one-child
policy has made it harder for them to find natural
team-players. That there are few MBA programmes in
China may not help either.

Large parts of China's economy remain in thrall to the
state, where loyalty to the Communist party more than
business acumen drives career success. Jeff Barnes,
“chief learning officer” at General Electric (GE) in
China, says that the “issue we have is finding
mid-level and top-level leadership. The Chinese talent
is first-generation. They don't have role models.
Their parents worked for state-owned companies.”



The wrong sort of chairman
Chairman Mao's Cultural Revolution in 1966-76 wiped
out a generation of management potential, as millions
of Chinese learned that capitalism was evil. After a
lifetime under socialism, many lack the mindset to
adopt western working practices. In China, says Jack
Perkowski, boss of Asimco Technologies, a supplier of
vehicle parts, “the talent pool consists either of
managers from state firms who are too bureaucratic or
entrepreneurs who have come up through the private
sector and are unconstrained by capital or the law.”

Foreign firms now invest some $1 billion a week in
China. As they expand, they increasingly need workers
able to handle the complexities of multi-site
operations. Staff shortages threaten these plans. In a
recent speech, Arics Poon, managing director of Oracle
for South China and Hong Kong, said that “we need a
group of strong, professional managers or we may fail
to support our growth in China.” Anthony Wu, head of
accounting firm Ernst & Young (E&Y) in Hong Kong and
China, admits that “we have decided not to tender for
some major clients because we feel we don't have the
staff to service them.”

Business plans for China rarely reflect the cost and
time involved in recruiting and retaining local staff.
Firms are finding that they cannot replace expensive
expatriate staff with cheaper local hires (“localise”
in the jargon) as quickly as they hoped. Many
underestimate the cost of local staff. Chinese
graduates often have an inflated view of their own
worth, complain some foreign managers. Multinationals
are also competing for talent with China's domestic
companies, which need to improve the quality of their
people as their markets open to foreign rivals.

Chinese people returning from overseas (lyrically
named hai-gui or “sea turtles”) are plugging some of
the shortages, particularly at the most senior levels.
David Wei, president of B&Q China, Yifei Li, managing
director of MTV China, and Zhu Min, head of
restructuring at Bank of China, all worked or were at
least partly educated outside China. But at a more
junior level, returnees can sometimes have problems
reintegrating, may lack local market knowledge and are
expensive. 

Recruitment, retention and localisation of staff is
now top of the agenda for firms in China. Paolo
Gasparrini, head of China for L'Oréal, a French
cosmetics firm, says that “to find good people in
China is not easy. Technically and in administration
they are very good. But in marketing—a crucial
discipline—there are just a few people with short
experience and everyone is competing for them. You
find yourself micro-managing more than you'd like.” Mr
Poon concurs: “If the tasks are across departments, or
if it means working in a team or trying to relate to
others, they [Chinese staff] still have a long way to
go.”

Fierce competition and a limited supply of talent is
resulting in high turnover rates. “The biggest issue
is retention of people,” says E&Y's Mr Wu. “Retention
is much cheaper than recruitment.” One in ten
executives changed job in the southern city of
Shenzhen last year and one in 12 in Beijing, according
to Hewitt. The same research points to a nationwide
employee churn rate of 11.3% in 2004, up from 8.3% in
2001. Some smaller firms see turnover as high as 30%,
but leading global firms are not immune. L'Oréal, with
3,000 people in China, says that staff turnover in its
marketing department is nearly 15%. “A lot of fresh
graduates leave. We lose almost all we hire in the
first three years,” says Daisy Dai, its
human-resources director.

Pay and benefits are soaring. A Chinese middle manager
at a foreign company in Beijing or Shanghai can now
command total annual cash compensation (salary plus
bonus) of $27,000-$32,000, says Hewitt. Senior
managers receive between $46,000 and $54,000 and top
executives can expect $80,000 to $90,000 or more.
While underlying inflation in China is around 2%,
average annual salary increases for mid-level and
senior managers are now 6-10%. Lai Kam-tong at the
Hong Kong Institute of Human Resource Management says
that accountants' salaries are rising by 14% a year.
Jürgen Viethen, general manager for F&G China
Electric, a small Spanish-owned electrical
switchgear-maker, is offering key employees raises of
up to 50%—and still losing them.

Bonuses, longer-term incentives, free housing and
meals, a mobile phone and a set of wheels are becoming
standard perks. More than one-third of 1,600
multinational firms surveyed by Hewitt now offer a
company car. More holidays, maternity and paternity
leave, more frequent job rotation and share options
also now feature. Add in the big contributions that
employers must make to China's national security fund
system and the total cost of an employee can be double
his basic pay.

Above all, Chinese employees want good training, as
they are acutely aware of the limitations of their
educational system and keen to acquire marketable
skills. Ping-on Mak, senior human resources manager
for GE Consumer Finance in Asia, says that the
attitude of many young Chinese managers is “if I want
training, I'll go work for a multinational and then
after three years I'll leave.” But GE, with an
in-house “university”, and L'Oréal, which provides
mentoring, say that training produces employees who
tend to stay longer.

Some foreign firms hope to persuade the expatriates
they send out to stay longer than first
planned—despite their higher cost. Some are relocating
operations from the coast to smaller, cheaper cities
to tap new markets for talent. Some are even
considering outsourcing from China itself, by moving
parts of their operations to, say, Vietnam and
Cambodia, where the workforce is even cheaper and
younger.

None of this has, yet, slowed China's economic growth.
Basing production in mainland China remains
cost-effective for most foreign firms. But the growing
shortage of executive talent may make the growth
assumptions written into many business plans
over-optimistic. F&G's Mr Viethen's lament that,
despite being a business manager, “I spend most of my
time on human resources, not sales,” rings true at
many foreign firms in China.



 
 
 The Economist 


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