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back to index backGLOBALtalk July,  2014


Air Pollution Impedes Executive Hiring in China

Rapidly increasing wages, high demand for qualified workers, and high turnover rates have made recruiting and retaining talent one of the top challenges multinational companies face in China year after year. But there’s another issue making employee recruitment and retention even more difficult: China’s air pollution.

Julian Ha, a partner at executive search firm Heidrick and Struggles, said that pollution is having an impact on companies’ ability to fill executive positions. Companies are noticing that their employees, when they’re offered positions in China, are thinking twice,” Ha said at the US-China Business Council’s (USCBC) annual meeting. (USCBC is the publisher of the China Business Review.)

Surveys of foreign multinationals in China in recent months say that air pollution is driving up human resources costs and making it more challenging for companies to recruit talent. The American Chamber of Commerce in China’s 2014 Business Climate Survey reported that nearly 48 percent of respondents have had difficulties recruiting or retaining senior executives in China because of air pollution.

Nearly one-third of respondents to the EU Chamber of Commerce in China’s annual business confidence survey said that air pollution was contributing to higher HR costs. Two-thirds of respondents said they have taken steps to address air pollution concerns, including installing air purifiers at the office, providing masks for employees, and implementing work from home policies.

While additional hazard pay” for posts in China’s polluted cities is not widespread, 6 percent of respondents to the EU Chamber’s survey said they have increased employee pay in response to concerns about air pollution.  And In March, Japanese electronics company Panasonic announced that it would offer a more generous compensation package to its expat employees in China in response to hazardous levels of air pollution.

To read entire article, please click here.

Source: China Business Review - GAI




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