Retaining staff in China can be difficult. Good, technically qualified English speakers tend to move very frequently especially amongst the foreign-invested companies and 'poaching' is common. Conveying a feeling of stability in your company and minimising any sense of risk will help in retaining the good ones!


In our experience, local employees often prefer to report to a Westerner than to another Chinese person. The reasons for this are often debated but two popular theories are: firstly, that working for a Western company will help ensure they will be working in an English-speaking environment. Secondly, local employees feel they learn more from a foreigner, especially about Western methods of doing business.

Offering employees the opportunity to train overseas is very attractive to staff at all levels. It is, however, not uncommon for a business to come to China without such a programme. There are ways around this; many external training programmes are available, especially in major cities. Offering to sponsor staff to attend such training is always a good idea.

Managing staff in China also relies heavily on an understanding and acceptance of the Chinese culture which has a great respect for education, history, family ancestors and national ancestors. In addition to this understanding 'face' and relationship-building are also key to successful communication and business skills in China.

The employee's role and how that employee relates to and interacts with others are also extremely important issues, and essential to manage well. Much of this stems from the cultural idea of 'face' which is a mark of personal dignity and reflects a personís status in business and social life.


Employees should be given a clear picture of what their role entails and of the reporting structure in the organisation. Chinese employees expect their superiors to tell them exactly what to do. Using initiative could cause loss of face. In a similar way, business colleagues will not inform you of any mistakes you make. These will be communicated to you indirectly. Asking clarifying questions along the way will help minimise mistakes and to avoid loss of 'face'.



The importance of relationships
Relationship building, or 'guanxi' works in a similar manner. There is no convenient translation for this in English. Chinese culture is process-oriented (unlike the goal-oriented West) and much time is spent on building a relationship, negotiating and establishing that both parties are ready and willing to work with each other. Once built this relationship can help to enter a network of connections (the 'guanxi') where members are expected to help each other out, thus maintaining and developing the relationship. It is important to bear in mind the indirect and circular method of communication in China; people rarely say 'no'. The Chinese people are tough negotiators, often enabled by being good hosts which allows them to control the pace and agenda of negotiations. Keep in mind that in China people tend to have a much more long-term view of things in general.


The best approach overall is to maintain an open and respectful attitude in working in China and managing staff.