This week’s Economist has a great article on the main issue preventing foreign companies from growing their China business: staffing. There is a shortage of skilled Chinese workers that are able to fulfill the requirements of foreign companies to work in China. This makes them a very desirable commodity — and the Chinese know this and using to their advantage. They’ll hop between jobs for more money, but most importantly they’ll hop between jobs for career advancement. Graeme Maxton does a great job of outlining all the factors involved with this issue and even mentions some of the ways to businesses can lower staff turnover (Disclosure: I work for one of the consulting firms mentioned in the article. That isn’t why I am recommending this piece it really is an informative article).
And since Maxton does such a great job outlining China’s staffing problem, the piece has got some coverage at other blogs on the web. Managing the Dragon did a great post on it and over at ThinkChina some of us had a short discussion on it.