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People power

September 28, 2006
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(Business Daily Update Via Thomson Dialog NewsEdge) Author: dai The strength of employees is of great importance to any enterprise. That is where Manpower Inc gets its core business values. As a head hunter and human resources (HR) management expert, Manpower has a different business approach from many of its rivals: instead of simply seeking employees for clients and earning a commission, it tries to play a positive role in lobbying and aiding companies to do a better job keeping the talents they have. Through this approach, the head hunter aims to build a long-term relationship with clients and maintain a positive business circle, says David Arkless, executive board member of Manpower. "If our clients thrive further after consulting us, they will offer us more business opportunities in the future," Arkless explains. Replacing an employee with a new recruit can be expensive, often as much as the cost of the employee's annual salary. That price could mount when considering hiring new employees involves assessment, training fees and loss of quality, Arkless says. "When clients come to us requesting new talents, we always ask them why they want to substitute certain existing employees," Arkless explains. "In fact, they have to realize that it costs more to find and use new people." In reality, however, it is sometimes difficult for companies to keep first-class talent, as a long term relationship requires both companies and employees' efforts to adapt to each other. "Therefore, we will not turn down business chances or refuse requests from companies for new talents, though we warn them of the extra cost involved to use new people," Arkless says. Boosting morale As to how to keep talents longer, Arkless proposes another counterintuitive theory: rather than forcing an employee to change his or her many years of values and experiences, it is relatively easier for companies and organizations to shift their culture, management style and system to boost employees' morale and enhance working efficiency. "That is why we always tell our clients to figure out better ways to tune in with employees' needs," Arkless says. This proposal seems unconventional when considering Chinese State-owned enterprises, which have long sacrificed employees' benefits for self-development. In order to save the extra costs caused by brain drain, they should adjust their style to be in line with modern business management principles, the HR consultant suggests. The "employee-first" theory is also useful to foreign companies, who should bear in mind what it takes to keep Chinese employees and to secure smooth business operations in China. A recent survey by Manpower indicated that Chinese workers tend not to be as motivated by salary and compensation as their European counterparts. Rather, they attach greater importance to hands-on management and face-to-face communication with executives. "They prefer a flat organization, in which they can get access to new knowledge, training, and communication opportunities with the top administrators," Arkless says. Because of these factors, foreign companies need to better organize themselves to motivate their talents in China. "They have to combine modern management know-how with a traditional Chinese context in HR management," Arkless says. A unique market The Chinese market has other unique characteristics as well. There are more students graduating from colleges every year, but the country still lacks a skilled labour force to drive its economy further. This is another particular phenomenon of China that Arkless has observed. "Many graduates come out of university without the necessary silks to meet employers' requirements. As a result, it is hard for them to find jobs," Arkless says. There are profound reasons behind this phenomenon. The structure of high-level education does not fully fit the requirements of the social and economic development of China. Furthermore, enterprises do a poor job innovating, which is necessary to stimulate and keep talents, according to Zhang Xiaoqiang, vice chairman of the National Development and Reform Commission of China. Furthermore, people have not changed their perception as to what they see as ideal jobs, Zhang says. He indicates that vocational training and skilled labour positions are still regarded as inferior. To help the Chinese authority solve the problem of skilled-worker shortages, Manpower is working closely with the relevant government divisions, such as the Ministry of Labour and Social Security, on vocational training and employment, Arkless says. Manpower is working on a more scientific method known as "talent planning" to identify what category of skilled talents a certain Chinese city, such as Shanghai, is in desperate need of. Based on the research, the company will provide consultation for local governments and help them train professionals in need. Manpower is a global employment and HR service provider. It is currently ranked 412th in Fortune's Global 500 list. The company has opened 60 offices in China since its entry into the Chinese market in the 1960s.



Copyright 2006 Business Daily Update Source: Financial Times Information Limited - Asia Intelligence Wire.


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