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Message to employers: Staff want more cash
By Li Xiaowei (China Daily)
Updated: 2005-09-22 06:25

SHANGHAI: A global human resources firm has apparently discovered what many of us already know: the secret to keeping hold of staff could be money.

According to results of a survey released yesterday by Hewitt Associates, for the first time compensation payment for work done was reported as the biggest influence on employee loyalty, followed by processes the organizational structure a company has in place and career opportunities.

Findings that may explain high turnover rates for foreign businesses amid a shortage of talent.

"It is simply a supply versus demand situation," said Stella Hou, Hewitt Associates Head of Regional Sales and Accounts.

The result is a rise in salaries offered by foreign employers across the board in Shanghai, with the fastest increases year-on-year taking place for managers (from 9.6 to 10.1 per cent) and professionals (from 8.7 to 9.2 per cent).

For graduates fresh out of school, positions in marketing, research and development and management attract the highest monthly base salaries: Around 3,500 yuan (US$432).

Shanghai is not the only place in China seeing the rise.

Countrywide, companies are paying 8.4 per cent more than last year, way above the 2.3 per cent rise in the consumer price index and almost as high as the 9.5 per cent growth in the gross domestic product.
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