Discuss Strategies Adopted By Domestic or Foreign Firms in China to Essay

Discuss Strategies Adopted By Domestic or Foreign Firms in China to Reduce Turnover of Their Staff and Assess the Effectiveness of Specific Measures - Essay Example This essay stresses that the major factor driving the staff turnover rate to increase somewhat incessantly indicates to the demographic factors of the Chinese economy, which comprises of low cost Chinese labour and the behaviour of the employees, giving much emphasis on their salary structure. The fact was further justified when the HR professionals of China reported that in the early years of 2000s, around 73% of the employees on an average, in China, had resigned from their previous jobs and moved to the other because of a higher pay structure. This discussion declares that apart from stating the reasons for the Chinese employees to leave the job, the HR professionals of China have also stated that the implementation of strategies focused on high employee satisfaction is the best method to deal with the ongoing problem of increment in the staff turnover. The various organisations are also struggling hard to retain their employees by implementing effective organisational strategies for the reduction of staff turnover rate. The continuous increase in the employee turnover rates has evidently emerged as a major barrier to the effective performance of both domestic as well as the foreign firms of China. Although the problem’s epicentre is same, the strategies adopted by the two groups have been observed as quite different. The Chinese firms usually believe that the best strategy of retaining the employees is to provide them with the best deals in comparison to those offered by other employers.... In this essay, the key area of study have been concentrated on the identification of the strategies adopted by the domestic as well as the foreign firms in China for reducing their staff turnover rates and subsequently, assessing the measurable effectiveness of those strategies in the current scenario of the economy. Discussion Strategies Adopted by Domestic firms for Reducing Staff Turnover The continuous increase in the employee turnover rates has evidently emerged as a major barrier to the effective performance of both domestic as well as the foreign firms of China. Although the problem’s epicentre is same, the strategies adopted by the two groups have been observed as quite different. For instance, to ensure better retention of the productive professionals in the organisation and mitigate the issue of increasing staff turnover rates, domestic firms in China have adopted certain distinctive strategies at organisational level, which principally focus on pay structure design efficiency, better training and developmental aids to ensure performance satisfaction to the employees and enrich management-employee relations. The Chinese firms usually believe that the best strategy of retaining the employees is to provide them with the best deals in comparison to those offered by other employers (Ferreira & Alon, n.d.). Few of these strategies that the Chinese firms have adopted for reducing the issues of staff turnover have been explained below. Considering the fact that a majority of employees decide to leave their current job being influenced by the pay hikes they shall obtain from joining another organisation, domestic firms in China often tend to emphasise regular pay hikes and increments to be delivered to their employees. In many