Fringe benefits and loyalty on the Chinese labour market – a trend towards higher individual‐ and performance‐orientation

Emerald - 2012
HelmutKasper1, JuergenMuehlbacher1, GeorgKodydek1, LipingZhang1
1Department of Management, Institute for Change Management and Management Development, WU – Vienna University of Economics and Business, Vienna, Austria

Tóm tắt

PurposeThe labour turnover rate is in general 10 per cent in China. Although this rate is especially high for blue collar workers, fluctuation among qualified employees and managers is high as well. As a result, the economic development has led to high competition on the Chinese market. Moreover, companies also have to deal with lack of employees – especially highly qualified ones. The purpose of this paper is to figure out the impact of fringe benefits on the labour turnover rate of Chinese professionals.Design/methodology/approachThe study subjects were 14 managers working for private companies in the Shanghai region. The authors conducted semi‐structured interviews as the primary data collection procedure to investigate reasons, opinions, and views about fringe benefits and employees' loyalty to their organisations.FindingsThe paper outlines highly diverse perspectives about fringe benefits. Furthermore, the authors show a series of reasons for labour turnover and motivators of Chinese professionals.Originality/valueThis paper contributes to the compensation literature by analyzing the relation between fringe benefits and loyalty of Chinese professionals. Moreover, it shows to what extent fringe benefits influence labour turnover in China. It also presents the preferred fringe benefits of employees in Chinese companies.

Từ khóa


Tài liệu tham khảo

Adithipyangkul, P., Alon, I. and Zhang, T. (2009), “Executive perks: compensation and corporate performance in China”, Asia Pacific Journal of Management, Vol. 28 No. 2, pp. 401‐25.

Akhtar, S., Ding, D.Z. and Ge, G.L. (2008), “Strategic HRM practices and their impact on company performance in Chinese enterprises”, Human Resource Management, Vol. 47 No. 1, pp. 15‐32.

Baker, G.P., Jensen, M.C. and Murphy, K.J. (1988), “Compensation and incentives: practice vs theory”, The Journal of Finance, Vol. 43 No. 3, pp. 593‐616.

Chung, W. (2003), “Fringe benefits and inequality in the labor market”, Economic Inquiry, Vol. 41 No. 3, pp. 517‐29.

Clark, A.E., Kristensen, N. and Westergard‐Nielsen, N. (2009), “Job satisfaction and co‐worker wages: status or signal?”, The Economic Journal, Vol. 119, pp. 430‐47.

Dale‐Olsen, H. (2006), “Wages, fringe benefits and work turnover”, Labour Economics, Vol. 13, pp. 87‐105.

Dickel, T. and Watkins, C. (2008), “Hiring and compensation trends”, China Business Review, Vol. 35 No. 4, pp. 20‐3.

Ding, D.Z., Akhtar, S. and Ge, G.L. (2006), “Organizational differences in managerial compensation and benefits in Chinese firms”, International Journal of Human Resource Management, Vol. 17 No. 4, pp. 693‐715.

Edralin, D.M. (2008), “Innovative human resource management (HRM) practices as predictors of employee job involvement and organizational commitment”, Asian Journal of Technology Innovation, Vol. 16 No. 2, pp. 67‐81.

Gao, W. and Smyth, R. (2010), “Job satisfaction and relative income in economic transition: status or signal? The case of urban China”, China Economic Review, Vol. 21, pp. 442‐55.

Graetz, F. and Mennecke, K. (1979), Handbuch der betrieblichen Zusatz‐ und Sozialleistungen, Gabler, Wiesbaden.

Guan, X. (2001), “Globalization, inequality and social policy: China on the threshold of entry into the World Trade Organization”, Social Policy & Administration, Vol. 35 No. 3, pp. 242‐57.

Gunkel, M., Lusk, E.J. and Wolff, B. (2009), “Country‐compatible incentive design”, Schmalenbach Business Review (SBR), Vol. 61, pp. 290‐309.

Huang, T.‐P. (2011), “Comparing motivating work characteristics, job satisfaction and turnover intention of knowledge workers and blue‐collar workers and testing a structural model of the variables' relationships in China and Japan”, The International Journal of Human Resource Management, Vol. 22 No. 4, pp. 924‐44.

Hui, C., Lee, C. and Rousseau, D.M. (2004), “Employment relationships in China: do workers relate to the organization or to people?”, Organization Science, Vol. 15 No. 2, pp. 232‐40.

Jiang, B., Baker, R.C. and Frazier, G.V. (2009), “An analysis of job dissatisfaction and turnover to reduce global supply chain risk: evidence from China”, Journal of Operations Management, Vol. 27, pp. 169‐84.

Kahneman, D., Krueger, A.B., Schkade, D., Schwarz, N. and Stone, A.A. (2006), “Would you be happier if you were richer? A focusing illusion”, Science, Vol. 312, pp. 1908‐10.

Kong, S.‐H. (2003), “A portrait of Chinese enterprise through the lens of organizational culture”, Asian Academy of Management Journal, Vol. 8 No. 1, pp. 83‐102.

Lee, T.H., Gerhart, B., Weller, I. and Trevor, C.O. (2008), “Understanding voluntary turnover: path‐specific job satisfaction effects and the importance of unsolicited job offers”, Academy of Management Journal, Vol. 51 No. 4, pp. 651‐71.

Leininger, J. (2007), “Recent compensation and benefit trends in China”, China Business Review, Vol. 34 No. 4, pp. 28‐31.

Li, T. and Zhang, J. (2010), “What determines employment opportunity for college graduates in China after higher education reform?”, China Economic Review, Vol. 21, pp. 38‐50.

Li‐Hua, R. and Khalil, T.M. (2006), “Technology management in China: a global perspective and challenging issues”, Journal of Technology Management in China, Vol. 1 No. 1, pp. 9‐26.

Lin, Z., Trenberth, L. and Kelly, J. (2010), “The development and implications of China's employee benefit systems”, Asia Pacific Journal of Human Resources, Vol. 48 No. 3, pp. 287‐301.

Loi, R. and Ngo, H.‐Y. (2010), “Mobility norms, risk aversion and career satisfaction of Chinese employees”, Asia Pacific Journal of Management, Vol. 28, pp. 237‐55.

Manning, S., Massini, S. and Lewin, A.Y. (2008), “A dynamic perspective on next‐generation offshoring: the global sourcing of science and engineering talent”, Academy of Management Perspectives, Vol. 22 No. 3, pp. 35‐54.

Markovits, Y., Davis, A.J., Fay, D. and van Dick, R. (2010), “The link between job satisfaction and organizational commitment: differences between public and private sector employees”, International Public Management Journal, Vol. 13 No. 2, pp. 177‐96.

Nielsen, I. and Smyth, R. (2008), “Job satisfaction and response to incentives among China's urban workforce”, The Journal of Socio‐Economics, Vol. 37, pp. 1921‐36.

Nielsen, I., Smyth, R. and Liu, Y. (2011), “The moderating effects of demographic factos and hukou status on the job satisfaction – subjective well‐being relationship in urban China”, The International Journal of Human Resource Managements, Vol. 22 No. 6, pp. 1333‐50.

OECD (2007), Benefits and Wages: OECD Indicators, Organisation for Economic Co‐operation and Development, Paris.

Pichler, F. and Wallace, C. (2009), “What are the reasons for differences in job satisfaction across Europe? Individual, compositional and institutional explanations”, European Sociological Review, Vol. 25 No. 5, pp. 535‐49.

Prendergast, C. (1999), “The provision of incentives in firms”, Journal of Economic Literature, Vol. 37 No. 1, pp. 7‐63.

Rhoades, L. and Eisenberger, R. (2002), “Perceived organizational support: a review of the literature”, Journal of Applied Psychology, Vol. 87 No. 4, pp. 698‐714.

Schmidle, T.P. (2011), “Employer practices, labor policy and ‘tough times for the American worker’”, Public Administration Review, Vol. 73 No. 3, pp. 502‐7.

Shelton, C., Gartland, M. and Stack, M. (2011), “The impact of organisational culture and person‐organisation fit on job satisfaction and organisational commitment in China and the USA”, International Journal of Management Development, Vol. 1 No. 1, pp. 15‐39.

Simon, K.I. and Kaestner, R. (2003), “Do minimum wages affect non‐wage job attributes? Evidence on fringe benefits and working conditions”, Working Paper 9688, National Bureau of Economic Research, Cambridge, MA, May.

Simon, K.I. and Kaestner, R. (2004), “Do minimum wages affect non‐wage job attributes? Evidence on fringe benefits”, Industrial & Labor Relations Review, Vol. 58 No. 1, pp. 52‐70.

Sun, L.‐Y., Aryee, S. and Law, K.S. (2007), “High‐performance human resource practices, citizenship behavior and organizational performance: a relational perspective”, Academy of Management Journal, Vol. 50 No. 3, pp. 558‐77.

Wang, P., Lawler, J.J. and Shi, K. (2010), “Work‐family conflict, self‐efficacy, job satisfaction and gender: evidences from Asia”, Journal of Leadership & Organizational Studies, Vol. 17 No. 3, pp. 298‐308.

Weng, Q. and McElroy, J.C. (2010), “Vocational self‐concept crystallization as a mediator of the relationship between career self‐management and job decision effectiveness”, Journal of Vocational Behavior, Vol. 76, pp. 234‐43.

Zhang, Y., Farh, J.‐L. and Wang, H. (2011), “Organizational antecedents of employee perceived organizational support in China: a grounded investigation”, The International Journal of Human Resource Management, pp. 1‐25 (in press)..

Zhang, Y., Li, H., Li, Y. and Zhou, L.‐A. (2010), “FDI spillovers in an emerging market: the role of foreign firms' country origin diversity and domestic firms' absorptive capacity”, Strategic Management Journal, Vol. 31, pp. 969‐89.

Eisenberger, R., Cummings, J., Armeli, S. and Lynch, P. (1997), “Perceived organizational support, discretionary treatment and job satisfaction”, Journal of Applied Psychology, Vol. 82 No. 5, pp. 812‐20.

Ngo, H.‐Y., Lau, C.‐M. and Foley, S. (2008), “Strategic human resource management, firm performance and employee relations climate in China”, Human Resource Management, Vol. 47 No. 1, pp. 73‐90.

Xia, J., Tan, J. and Tan, D. (2008), “Mimetic entry and bandwagon effect: the rise and decline of international equity joint venture in China”, Strategic Management Journal, Vol. 29, pp. 195‐217.

Xiao, Z. and Tsui, A.S. (2007), “When brokers may not work: the cultural contingency of social capital in Chinese high‐tech firms”, Administrative Science Quarterly, Vol. 52, pp. 1‐31.

Yamazaki, Y. and Kayes, D.C. (2010), “Learning and work satisfaction in Asia: a comparative study of Japanese, Chinese and Malaysian managers”, The International Journal of Human Resource Management, Vol. 21 No. 12, pp. 2271‐89.

Zhou, K.Z., Li, J.J., Zhou, N. and Su, C. (2008), “Market orientation, job satisfaction, product quality and firm performance: evidence from China”, Strategic Management Journal, Vol. 29, pp. 985‐1000.

Thông tin
Thông tin xuất bản

Emerald

Thông tin tác giả