The rising competition in China over talent (and by extension how to retain talent) has been a major factor in lifting compensation and job perks. Companies in China now rank talent as their number one concern, replacing the long time favorite: Government red tape.
Average job turnover for companies is now 40% per year – including jobs created and destroyed. The average management team also is 10-15 years younger than Western counterparts. Although a younger workforce has advantages, generally it means more mistakes in smooth business operations. The smoother things work, the greater the potential profit.
Firms growth is highly dependent on both talent retention and manager experience. Although growth in the Chinese market has been rapid, it still is being held back by this HR battle.
Beyond simple retention, holding onto fast learners is the key to success; workers will always make mistakes, but the same mistakes mean hobbling your chances of success in a cutthroat market.