Thursday, May 17, 2007

Shanghai still pulls white color workers from provinces

For many well-educated people, Chinese and foreign, Shanghai is just not offering the kind of reward they expect, I wrote last week. Experienced managers with a foreign education do not return to China or leave again because of the low compensation they get for their work.
That story triggered off some interesting reaction from readers in the poorer provinces of China, who struggle with the same problem, getting and keeping experienced staff, on a different level. University graduates, who speak some English leave after three, four years provinces like Fujian to go to Shanghai. "Salaries in Shanghai are about three times what they can earn here," writes a manager in a joint venture in Fuzhou, who sees many employees leave. That is already the case for people with a few years of experience, for managers it is still more problematic.
They compete directly with the graduates from Shanghai who have nowadays a hard time in finding a decent job. That keeps the salaries in Shanghai on a - relative - low level.
"In Shanghai experience means a higher salary," says the manager in Fuzhou. "Here typically companies do not want to increase salaries, so people leave for Shanghai."

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