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How To Retain Your Star China Employees

By Dan Harris and Steve Dickinson

Anyone with a business in China knows how difficult it is to retain Chinese high level Chinese employees. Rapidly rising salaries are obviously factor into this difficulty, but according to Andrew Hupert at ChinaSolved, a China retention policy must consist of more than "just dumping cash, bonuses and big commission payouts on star employees." In his post, "China Key-Person Retention Planning now a Strategic Battle," Hupert sets out what he calls "3 arrows in the quiver of China Key Man Retention strategy": 1) High-end health care plans. Hupert calls for a family plan so that the spouse of your key person "will get used to the convenience and prestige in a hurry ? and thus become your advocate in the household." 2) Pension plans that vest over 3 ? 5 years. "There are many ways to structure a company retirement or long-term savings plan, but the key is Vesting." Set up the plan so that the longer your employee stays, the more portability he or she will have. Do not make the vesting period so long as to be unattractive to your employees or potential employees, but do not make it so short that you are doing little to stop the revolving door. 3) Company ownership and profit sharing. Hupert sees this as the "least valuable" because if company growth slows or reverses, it serves as little to no incentive to stay. "It?s still a great idea for building long-term loyalty and motivation, but you?ll find it doesn?t help you much when you need help the most." All great advice. Any other ideas?

Full post as published by China Law Blog on April 26, 2008 (boomark / email).