Xiamen Taxation Service
Hotline: 86-755-82143348 Email: 2355725105@qq.com
Xiamen human resources have experienced immense changes with the transformation of the Chinese economy from a traditional state-controlled one to one that is more open and market-orientated.
Human Resource Management in Xiamen – Local Management
The effects of China's rapid growth are being felt everywhere. In Human Resources, a significant repercussion is that the demand for Chinese management talent is far outstripping the supply. Foreign firms in China need local people with local knowledge to overcome their most common blind spot, namely ignorance of the way business is done here as opposed to anywhere else. Domestic companies, likewise, need well-trained managers in their ranks to be able to compete effectively with foreign competitors.
What all these companies need is quality local managers who understand internal business practices. That is why the master of business administration degree has suddenly become such a must-have in China management.
Business education in China is still young. All that is certain right now, is more talent is needed. Look for the number of schools, the number of students and the list of areas of specialization to grow as China continues to work to build a managerial workforce that is as impressive as its labor force.
Human Resource Management in Xiamen – Return of Overseas Chinese
The role of an overseas Chinese in the development of the mainland's economy has repeatedly been emphasized as a key factor for China's overall ascension into the global competitive arena.
More than a year ago, Beijing officials publicly encouraged foreign-living Chinese to return to the motherland and contribute to China's imminent prosperity. From the perspective of the government officials, the motivation to promote their return is clear. Overseas Chinese bring with them a wealth of trade contacts, new ideas and capital, all of which will inevitably add value and more stability to an economy that is bursting at the seams.
The so-called "returnees" have naturally a distinct advantage today over the local Chinese, and subsequently, they hold many desirable positions in multinational companies in China.
Statistics show that the number of returnees has increased by 13% every year. Companies seeking replacement for their Western expatriates see returnees as a viable option for many reasons. Prime among them are fluency in English and knowledge of western business models. They are also a less expensive talent pool than their foreign counterparts. Most of these returnees match their western expatriates in terms of degree of education, language skills, and work experience acquired within companies in China.
However, over the past few years, the competitive advantage of the returnees over the locals is changing. The main reason for this has been the additional cost that many companies have invested in training local employees. Some companies today place returnees on par with locals and test them equally for skills and specifications required for the job at hand, and then decide on recruitment. The preference earlier given to Chinese returnees is fast disappearing in the compensation arena, too.
Human Resource Management in Xiamen – Blue Collar Workers
For foreign companies looking for cheap factory labor, they may be surprised to find that China will not retain its dominant position forever. Recently, companies in southern Guangdong province have complained of labor shortages. Despite China's population of 1.3 billion, much of which remains unemployed in the agriculture sector, the appeal of becoming a migrant worker and traveling to find a job in a coastal city has dropped. According to a report from the Chinese policy research institute of Dongguan, there is a shortage of nearly two million migrant workers in the Pearl River Delta region alone.
Some claim that the shortage is specific to southeastern China, arguing that other regions such as Shanghai are still attracting large numbers of factory workers, others point to structural problems. China's implementation of special economic zones (SEZ's) on its coast in the early 1980s created a system where workers traveled to the factories. It is now believed this system may not be sustainable and that factories may have to move to the regions where the workers are located, not vice versa.
MNC's with better reputations and better working conditions than local, Hong Kong or Taiwanese companies have been more successful in recruiting and retaining blue collar workers. And some MNCs have been successful by offering perks and increasing worker satisfaction. But while China remains the "factory of the world", labor shortages and rising wages, especially on the east coast, will undoubtedly affect the strategies of firms looking to use China as a manufacturing base.
Contact Us
For further queries, you are welcome to visit ATAHK website www.3737580.net or email to atahkhk@21cn.com / ata-cfmp@hotmail.com or contact any of the following branches, thank you.
HONGKONG TEL: 852-27837818
XIAMEN TEL: 86-592-5332308 CHINA TEL: 86-755-82143422