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How is China's management adapting to the new Chinese worker?
I am writing an article for Chaina magazine, and am seeking input from China-based management executives.
In your opinion, how will China’s managers, both foreign and Chinese, best adapt to new employment requirements and wage levels?
China’s labor force is becoming more assertive, with substantial wage increases in 2011, as well as higher demands to protect workers’ rights. Recently, a wave of strikes and labor disputes have broken out, in which workers have succeeded in winning better pay and working conditions. As the Chinese worker becomes more expensive to employ, management must adapt.
1. How can managers provide a fair and competitive paycheck for their employees while still protecting their profit margins?
2. To what extent do the changes in employing Chinese workers necessitate shifting production elsewhere, such as the interior of China, or even other countries?
3. Aside from wages, what trends are evident in workers’ demands and concerns in the work place?
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Replies to This Discussion
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Permalink Reply by Ooi, Eng Hai on -
My personal opinin is that the Chinese labor forces has made what I will call shift in paradigm. Gone are those days when having a job in a factory in Shenzhen vicinity is a self esteem. With most inland cities now more developed then ever being closer to home is far more attractive for these so called migrant workers, where one score point will be that they will be closer to the families and do not have to battle the exodus on each festival seasons, particularly the Spring Festival. That being said my opinion is that managment should be more engaged with the workers and provide appropriate bonuses (like most state owned companies) when they are making money, while managing overtime as humane as possible instead of using force. The labor forces in China will shrink for sure, with most of the population becoming more affluent, educated, knowledgable,coupled with the one child policy that has create a 'comfortable' life for most born in the mid 80's and 90's that they will not indulged or endured unconditional hardship. Therefore to create a better working environment is not only having sports facilities, but also allowing the employees having access to internet where they can communicate with their love ones and friends. Shifting of productions to inland is one possible notion, but one may however look into the inland transportation/logistics cost and the lead time. Moving to other countries? Not in the foreseeable future as cannot really see any emerging countries that ready to take the manufacturing role of China - in all respect China's is very proficient and efficient in the production logistics chain
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