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CCH 2010 HR Seminar Series A Strategic and Practical Approach to Structuring, Managing and Terminating Employment Relationships in the PRC Many companies have, as we know, been adversely affected
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While these moves may be good for the bottom line, they may lead to a loss of morale as employees struggle to maintain employment, and this can have significant spill-over consequences for companies outside of China. What are some principles that a PRC HR manager should follow to increase employee morale? The first thing to do is determine if the company itself is in trouble: are there long-term management structural issues? Could the Chinese state, particularly in the provincial level system, be moving against senior management positions? Many companies report that they are forced by their Chinese corporate governance authorities to take a more conservative approach. In these cases, the local company will be forced to close and/or lay-off senior managers and employees. How do we deal with this? Here are some examples of things you can do at the outset to help maintain morale. Set and carry out a thorough employee orientation campaign, designed and managed in line with the company's policy guidelines. Work through the company's employee's human resources department to reach out to everyone. Inform employers that layoffs can no longer be deferred in the face of a company in trouble (in particular in those provinces where the state has been taking a harder line). Be prepared to address the needs of the employee community about what is now expected of them. If the employees start to believe that they are treated less well, then they will start to lose morale. Be proactive about managing the recruitment process. The key point to keep in mind is that a company is only so good at managing its own workforce. The company needs to be able to make its own decisions to recruit and retain employees efficiently and effectively. This means doing the job of recruiting and selecting employees differently from those of your international competitor. Look for ways to get your international competitor to share your company's values, goals and objectives, so that your company's employees share a common set of values, aspirations and aspirations for what you are trying to achieve. The point to keep in mind here is that the company needs to be able to make its own decisions about how to attract and retain its employees, and your customers, and can do this much more effectively and efficiently with a more unified approach. Consider ways to ensure the continuity of employment by giving employees a clear indication of the direction in which they need to go as part of training programs. If possible, find ways to encourage internal transfer programs in order to reduce the high turnover rates of domestic employees and maintain more experienced employees.

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