China needs a really big HR department.
Chinese workers are apparently far less satisfied with their pay and benefit packages than workers in the rest of the Asia-Pacific region and in the U.S., according to a just-released survey from Watson Wyatt Worldwide.
The study of 180 companies and 60,000 employees revealed that just 28 percent of Mainland Chinese workers see their compensation and benefits favorably, versus 38 percent in Asia-Pacific overall and 47 percent in the U.S. Satisfaction with pay continues to decline, with 33 percent of Chinese workers rating it favorably in 2005/2006, compared with 38 percent in 2003/2004.
“As Chinese workers express dissatisfaction with pay more and more, multinational companies may find it helpful to address these concerns as they attempt to establish a base in China,” said Patrick Huang, managing director of Watson’s Greater China offices.
A first step might be to offer clear communications about compensation and benefits programs; many respondents said they don’t know how performance is measured nor do they receive a consistent message from the company on the link between high performance and an individual’s pay.
“Raising pay will not solve this problem alone,” said Robert Wesselkamper, director of international consulting for Watson Wyatt. “By demonstrating how pay is determined and the value of a total rewards package, companies can help employees understand how financial return is only one part of a larger compensation strategy.”