How Rising Wages Are Changing the Game in China Essay Example

How Rising Wages Are Changing the Game in China Essay Example How Rising Wages Are Changing the Game in China Essay How Rising Wages Are Changing the Game in China Essay If a company can accrue. Rain and retain manpower It will cause to higher efficiency. Qualified and knowledgeable employees produces good quality product with more consistency and less errors or waste. Labor inputs can be reduced if employees are better trained so that time spent on each individual output is decreased. Irreproachableness. Com/management/dun- Coma/Competitive-Advantage. HTML If a company Is able to attain and sustain that level of manpower at low cost as possible, the company will have bigger margin, from cost of producing to a perceived value of the product. A country like China can average on the cost of labor that their country can offer. It greatly affects the countrys GAP (Gross Domestic Product). It would be a great benefit for China to continue to offer cheap labor to keep the world bringing in business to their country of 1. 3 billion In population but Chinese people are getting more aware of contract law. Companies are getting high labor turnover. According to New York Times, June 2010, that labor dispute Is becoming part of Chinas economic landscape. And that of 210 factories that were studied by labor advocate, 90 per cent of those factories cheat on overtime. A common complaint among laborers is lack of overtime pay when a work schedule exceeds 40 hours. Mr.. Lieu, the labor advocate, said his group had done a study of 210 factories in the Pearl River Delta and the Yanking River Delta that showed 90 percent of those factories cheat on overtime: they often reported employees as working eight-hour days even when the hours were much longer. Thus, the salaries were much more generous on paper than In reality. Http:// www. Anytime. Com/2010/06/21/world/Asia/occasionally. HTML? _r=l ;paginated=2 The cost of labor force is important in relation to their skill level. When employees are motivated and have a sense control because they are involved in decision making, they are most likely to stay and be dedicated to their jobs. That Is Intrinsic need that Is major important to most if not all people. If resources with skill level desired are scarce, labor cost will be higher. According to the article, How Rising Wages are Changing the Game in China, as many people who live in China, there are 2. 5 million Jobs that remain unfilled in Guano province alone. There are not enough qualified people to fill those positions; the market was not keeping up with the growth of business miming In to China. People are not educated, experienced or literate enough to tall ten Sods Tanat are open. In turn, teen Decode scarce Ana teen cost more, manpower turnover is increasing as qualified and experienced laborers are able to choose to get a better paying or more rewarding Job. It is becoming a challenge for them to keep good workers. They have been creative in appropriating funds such as providing employees with better food, investing in utility saving measures in order to provide more benefits to employees. Human Resource is involved in cost accounting, t realizes the cost of hiring and training and retraining. Retaining the good and experienced workers is more cost effective. If resources are trainable and are available, HER are making ways to provide education, training and cross training. Benefits are tailored to the needs or wants of the employees. Childcare and paid health club membership, are some of the perks provided for. Employees are gaining awareness of their rights and gaining confidence to fight for their rights. Disputes are channeled through centralized system and are being watched and tracked. Chinese people are going to be treated better by their employers. In order for the companies to stay in business is to have a labor force. If the labor force is treated fairly and equally, it will stabilize and will gain respect from world market. They would not want to be able to offer cheap labor because they are mistreated and cheated on, on their overtime pay. The rising wages in China will affect the bottom line of major companies. As other countries develop trading relationships with multinational companies and able to provide competitive labor cost, other countries ill gain ground in the labor market. Global economy is evolving as the world market determines its place in trading. I believe it would be a smart move for China to invest in educating its people. Education grants and loans will encourage people to study and learn because they know that there are Jobs available. Jobs that will make their lives better. This will increase its qualified labor force and will continue to bring in business, a lot of work and a lot of structuring is needed in China, with a billion populations, it is a billion potential strong.