Brief introduction of Chinese labor market and High potential employees (part 2)

The supply and demand of chinese labor market

After 21st century, a series of changes take place in the supply and demand structure of the urban labor market. When the total amount of labor market remains in oversupply, a structural supply shortage and surplus occurred in the labor market. This kind of structural supply shortage and surplus means as follows:

By geographically are labor supply shortage in eastern coastal areas and oversupply in the Midwest.

By education is oversupply of comprehensive talent above bachelor, supply shortage of skills-based education talent and shortage of unskilled workers with low education.


China is still facing greater pressure on urban employment, the pressure mainly from two aspects. One is the transfer of rural labor to urban areas; the other is the pressure of new entrants in the labor market. The two aspects are gradually converging into a single pressure – new entrants on the labor market, because more and more rural youths do not choose to work in rural areas.

Meanwhile, mismatch of labor supply and demand is becoming increasingly serious, on one hand is a huge demand for manufacturing staff cannot fulfill in time, and on the other hand is college graduates are much harder to find a suitable job. The problem of structural unemployment is growing; the performance of the “shortage” and “surplus” coexist, “shortage” reflects the enterprise “difficulties of recruitment” and “surplus” reflect college student “difficulties of getting a job”.


The problem of Human Resource Management on HIPO retention faced by corporate

Several surveys showed that Chinese enterprises were suffering a high turnover rate of employees. One report shows that in a group of employees in Beijing, Shanghai, Guangzhou, 46.5% of them have 1-2 times job-hopping and 43.7% of them have 3-5 times, 9.8% of them have more than 6 times change their job. Change jobs become a trend. The survey also found that 2/3 of them willing to continue job-hopping if it is a possible. The proportion was 70.1% in Beijing and Shanghai 57.1% in Guangzhou.According to the survey of Hewitt Associates Consulting, 43% of Chinese enterprises feel that brain drain is a major problem, and in Singapore and Malaysia, this proportion is only 5% and 4.5%.

Some companies have in place strategic policies to respond to the upcoming global competition for the most skilled employees, which include looking to the future. Presciently, Dibble (1999) suggested “If you think that it is hard to retain your employees now, be aware that in the future it will be worse.” Therefore, such companies may focus not only on high achievers at the present time, but also on those with potential to become high performance in the future. Companies tend to invest more in high potential employees than in other employees. So, it is very important to focus on this kind of employee.

The discussion of High potential employees’ definition

The identification and development of high potentials are a foundation of the talent strategy of many organizations. Give an appropriate and clear definition to High potential employees is able to help the identification and development of them. Therefore, research of definition and features of High potential employees has a very important theoretical and practical significance.

The term-“High potentials” was came out during the 80s last century.More than ten years have passed, the definition is still has the same expression “high potentials”—the people that companies believe may become their future leaders.

All the definitions were describing this type of employee by their career development channel. The common element was the progression of their career- to be a leader. The patterns of these definitions were made less clearly expression of stable and enduring personal characteristics of High potential employees, and were not enough to help to identify them. By contrast, the definition of HIPOs made by CLC shows the feature that they think the employees should have-A high potential employee is someone with the ability, engagement, and aspiration to rise to and succeed in more senior critical positions.



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