The paper "Chinese Factories Struggle to Fill Production Lines " is a good example of a marketing case study. As manufacturing plants expand in the international markets, they tend to face more challenges. For instance, the Chinese manufacturing industry continues to struggle to retain their support as well as professional staff (Ahmad, Iqbal, and Sheeraz 2012, p. 272). As a result of this factor, most of these companies have been forced to pay high wages and salaries to their workforce, thus leading to increased costs of recruitment. According to the 2006 China Employee Attraction and Retention Survey, which covered over 114 multinationals in China established that 54 percent of companies in the survey have experienced an increase in turnover of their professional staff (Harter, Schmidt, Asplund, Killham, and Agrawal 2010, p.
389). The survey also established that whereas 42 percent reported high turnover with regards to their support staff, the average tenure for the most targeted age group (25-35 year-olds) for the multinationals fell from 3-5 years. On the current issue in the international markets, this paper will explore the various challenges faced by Chinese factories as they struggle to fill their production lines.
Besides, this paper will also provide solutions for addressing the current problem of filling production lines in Chinese factories. China's employment market has forced companies to expand their business practice into the international markets. As a result of these factors, individuals with transferable skills have increasingly become of great value as companies battle to retain them (Anis, Ijaz-Ur-Rehman and Safwan 2011, p. 2679-2685). Whereas such approaches may work on a short-term basis, competing companies tend to pay higher wages to these employees.
Besides, most companies in China see the need to become more complex when it comes to issues that concern employee retention and attraction. Companies offering viable pay tend to promote softer benefits such as creating flexible working conditions as well as providing meaningful career changes to their employees (Yamamoto 2011, p. 3564). Despite the application of these approaches, most factories are not able to hold their most valuable employees. Chinese Factories Struggle to Fill Production Lines As the international markets continue to expand, countries are facing an increased number of challenges.
As a result of the increased need for market expansion, most Chinese factories continue to struggle to fill their production lines. Whereas global investors continue to fear China's slowing economy, factory owners in Dongguan, which is considered the global heart of manufacturing continue to face the problem of finding enough workers who can produce the world’ s smartphones and clothing Bland (2015, p. 2). For instance, on a banner located outside a factory owned by TAL International Group, a Honk Kong company that manufactures high-end shirts for Brooks Brothers and Charles Tyrwhitt offers Rmb3,500 ($550) on a monthly basis on minimum wage.
While the minimum wage is twice the region's minimum wage, it has been set with the aim of retaining workers beyond for weeks. As stated by an employee in a Chinese clothing manufacturing company, “ as long as one is not lazy, it is not hard to find jobs in China” (Anis, Ijaz-Ur-Rehman and Safwan 2011, p. 2679-2685). In China, most workers would not wish to retain their current jobs because they feel that their current jobs do not pay very high salaries.
Poor employee retention is experienced across the entire manufacturing hub of China. For instance, the province of Guangdong, a city that has transformed into a megacity with a population of over 7 million people just within two decades has been flooded with a vast supply of cheap labor (Gberevbie 2010, p. 1449). The recent months have been the worst since the great financial depression. Whereas heavily indebted cement and steel plants are lying idle across China and the sale of luxury goods continues to increase, China is in good economic health since people are willing to travel and take up manufacturing work.
Ahmad, N., Iqbal, N., & Sheeraz, M 2012, ‘The effect of internal marketing on employee retention in Pakistani banks,’ International Journal of Academic Research in Business and Social Sciences, 2(8), 270-272.
Aldamoe, F. M. A., Yazam, M., & Ahmed, K. B 2012, ‘The mediating effect of HRM outcomes (employee retention) on the relationship between HRM practices and organizational performance,’ International Journal of Human Resource Studies, 2(1), 75-88.
Anis, A., Ijaz-Ur-Rehman, A. N., & Safwan, N 2011, ‘Employee retention relationship to training and development: A compensation perspective,' African journal of business management, 5(7), 2679-2685.
Bilton, R 2014, Apple 'failing to protect Chinese factory workers’ - BBC News, [online] BBC News.
Blanchard, B 2012, 'Apple, Foxconn Scandal Highlights Exploitation of Chinese Workers by Foreign Firms, Huffington Post (Reuters).
Bland, B 2015, Chinese factories struggle to fill production lines, Financial Times.
Cardy, R. L., & Lengnick-Hall, M. L 2011, ‘Will they stay or will they go? Exploring a customer-oriented approach to employee retention,’ Journal of Business and Psychology, 26(2), 213-217.
Chu, K 2013, China Manufacturers Survive by Moving to Asian Neighbors, [online] Wall Street Journal.
Gberevbie, D. E 2010, ‘Strategies for employee recruitment, retention, and performance: Dimension of the Federal civil service of Nigeria,’ African Journal of Business Management, 4(8), 1447-1456.
Grissom, J. A 2012, ‘Revisiting the impact of participative decision making on public employee retention the moderating influence of effective managers,’ The American Review of Public Administration, 42(4), 400-418.
Harter, J. K., Schmidt, F. L., Asplund, J. W., Killham, E. A., & Agrawal, S 2010, ‘Causal impact of employee work perceptions on the bottom line of organizations,’ Perspectives on Psychological Science, 5(4), 378-389.
Hassan, M., Hassan, S., Din Khan, K. U., & Naseem, M. A 2011, ‘Employee retention as a challenge in the leather industry,’ Global Journal of Human-Social Science Research, 11(2).
Sandhya, K., & Kumar, D. P 2011, ‘Employee retention by motivation,’ Indian Journal of Science and Technology, 4(12), 1778-1782.
Thite, M., & Russell, B 2010, ‘Work organization, human resource practices and employee retention in Indian call centers,’ Asia Pacific Journal of Human Resources, 48(3), 356-374.
China Labor Watch 2014, iExploitation: Apple supplier Jabil exploits workers to meet iPhone 6 demands. Available from:
Wright, T. A 2010, ‘Much more than meets the eye: The role of psychological well-being in job performance, employee retention and cardiovascular health,’ Organizational Dynamics, 39(1), 13-23.
Yamamoto, H 2011, ‘The relationship between employee benefits management and employee retention,’ The International Journal of Human Resource Management, 22(17), 3550-3564.