Beijing: Employers in China are struggling with a twin-problem on the hiring front - offering the highest salary increases in Asia to attract talent but finding it difficult to retain them, according to a survey.

Nearly one third, or 32 per cent of the employers, said they planned to raise the salaries by at least 20 per cent to woo badly needed talent, showed to the survey by human resources firm Hudson which covered employers first quarter plans and expectations.

 Year-end bonuses were expected to rise significantly, with 66 per cent of the respondents planning to enhance it by at least 10 per cent and one fourth of them by more than 20 per cent, findings of the survey published in the China Youth Daily said.

Despite significant increases in compensation, staffing turnover has been heavy. Across all industries, 47 per cent of companies surveyed had turnover rates of more than 10 per cent in the past 12 months, and 13 per cent said the rate was more than 20 per cent.

China's staff turnover rate was highest in Asia, more than twice of Japan, the Youth Daily report said. Unsatisfactory compensation and limited career progression were blamed for China's high turnover level.

Among respondents, 22 per cent agreed that limited career progression was a major cause of high turnover, while 18 per cent believed it resulted from dissatisfaction over money. The report forecast a persistent increase in salary levels in China because of limited talent resources. 

Source : PTI