At the recent World at Work Conference (May 7-10) there was much discussion at emerging markets specifically China. With a total population of 1.3 billion, China is one of the largest economies in the world and is an attractive economy for multinationals which currently comprise about 15% of all companies in China.
While reward and recognition strategies may vary among models (state owned, private enterprise and multinationals) one thing is clear: there has been a rapid adaptation to a free market economy. That makes it easier for multinationals to operate there, but it also signals that those that do will need to be innovative with their employee retention strategies. In China employee attrition is high and the war for talent is as competitive as it is in the west.
Already we are seeing evidence that reward program planners are taking a holistic view with pay, benefits, leaning and work environment to promote retention and engagement. It’s hard to imagine how much the world has flattened. Consider this: In the new China economy individual recognition goes a long way in helping employees there understand how their performance impacts business results. Sounds familiar doesn’t it?
Transnationals looking to outperform the China market will want to explore implementing western style peer-peer and manager-associate recognition programs to sustain high levels of productivity and retention. Systems that translate language and award in local currency will be in demand.
