Beyond Pay: What Rewards Work Best When Doing Business in China

Abstract

Finding and holding on to employees is no easy task for foreign firms doing business in China. Certainly, money talks, but it is no guarantee that workers will remain on the job. Easily lured away by higher salaries, workers with the right skills often have their pick among newly arriving com-panies who are eager to cash in on China's still booming economy. What's an employer to do? In a fluid and fickle marketplace, training pro-grams, promotions and perks are quickly becom-ing key rewards for Chinese workers. For employers, that means offering employees better pensions, building ownership in the company, and providing foreign travel opportunities. And for retaining top talent, buying them cars and houses is not unheard of.