Employee loyalty slumps in China

Updated: 2011-12-13 19:20

By Sun Chi (chinadaily.com.cn)

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Li Hua collects his last month's salary and quietly walks out of a skyscraper in Beijing after quitting his job.

Although the company offers good welfare and compensation, the white collar worker walked out on his position due to a lack of promotion opportunities or the working environment.

Li is just one of a growing number of people who desert their jobs as the year draws to a close.

Many enterprises across the country are finding it increasingly difficult to recruit and retain talent as the new year approaches.

The latest Mercer What's Working survey of nearly 30,000 employees, including 2,000 in Chinese mainland, shows there has been a slump in employee loyalty compared to five years ago.

A lack of loyalty, interpersonal indifference and inter-level conflict have all become universal problems that mainland managers and human resource departments have to address.

Mercer's survey, taken in 17 geographic markets between the fourth quarter of 2010 and the second quarter of 2011, also shows an increase in pride in the workplace does not convert into increased commitment to the business.    

Promotion opportunities and compensation carry great weight in sustaining employees, which are considered unfair in most enterprises leading to a fall in loyalty.

Another important factor that impacts employee's loyalty is inter-level conflict, especially ones between mid level managers and staff. Mercer's survey shows younger employees aged from 16 to 24 are a major group, accounting for 39 percent of those who resign due to inter-level conflict.

Experts says mangers who started their career through hardship and tolerance in 1990s copy this criteria to manage staff, calling for a tough environment and high working pressure, contradicting the concept of the post-1990s generation.

The survey claims the key to retaining employees is a mechanism that can stimulate staff's interest and offer a reasonable system of encouragement.