Employee recruitment in China is challenging

Many multinational companies assume that a country with a population as large as China’s would not have a labor shortage. Under the booming economy, the rising demand for Chinese labor has exceeded its supply, and hiring talented employees is even more difficult.
According to a report by Hewitt and Associates, China has one of the highest employee turnover rates in Asia.
Employee turnover is costly and detrimental. The huge resources drain incurs direct and indirect expenses including the cost of advertising, human resource costs, loss of productivity, training costs, and customer retention.
From information of research, the main causes of employee turnover are inadequate payment, unsatisfied work environment and lack of career development opportunities.
One of the most common employee turnover causes is insufficient employee pay and absence of adequate benefits. Employees leave for alterative higher-paying jobs. Employees are dissatisfied with work environment, such as, poor supervision, vague job content, poor employee communication and lack of recognition. These factors initiate employee's thoughts of leaving the workplace. Providing training and learning opportunities is an important retention strategy. Acknowledging employees achievement more frequently and help company reach its performance goals. Employees are provided opportunities for career and personal growth through on-going mentoring and training. Focus on generational differences to selects effective training with clearer expectations. Excessive turnover can cause major damage to the company. Managers can control these problems by determining what cause employee turnover and applying retention strategies to meet employees need, improve business performance and achieve business goal.
http://www.biztimes.com/news/2007/8/17/employee-recruitment-in-china-is-challenging