The issue chosen for this study is the problem of retaining the talented staff in the company for the long term due to the inability to meet the wage demands and poor policies set to govern employees. The country chosen for the discussion of this issue is China, which has been selected because of the growing number of foreign companies investing in the country and thus offering better care and higher salaries to employees. Policies and laws applied by organizations and the government of China oppress many employees in the country due to setting low wages but requiring high commitment. The nation also has a very high population and so is the number of employees, which is increasing rapidly in both the government and private sectors. Additionally, there is more advanced technology innovated in the country, which threatens the existence of workers in the firms because most of the work is now done by machines. This has made it hard for the local Chinese companies to retain talented workers, especially with the weak labor laws imposed by the government. The following research paper discusses regulations and laws that influence employee retention and payment of wages in China while comparing them to those of the UAE and giving recommendations on how to solve the issue.

Country Report

Workers in China, especially in the factories, docks, mines, mills, and other industries, do not have the freedom to choose their representatives in the workers union. Employees can by no means stop their work and try to air their grievances to their bosses in the company. More so, they lack the right to the organization of trade unions of their choice, and all the legal business unions in the country have to adhere to and accept the control of the All-China Federation of Trade Unions (Brown, 2010). Furthermore, the Labor Law of the People’s Republic of China provides for forty to forty-four working hours per week and gives employees five days leave per year with only seven holidays (Brown, 2010). There is also the rising inflation of wages in the major cities of China, which has made it hard to handle the increasing pay demands of many workers in various industries. Many employees have been enticed by other corporations that promise to increase wages and offer better care and working conditions.

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Some labor laws in China have made it tough for employees who work tirelessly to consider working at one place for a long time. Some of the benefits of working for a long time in an organization include receiving promotions and earning additional bonuses to the salary, among other unique advantages (Ray, Sharpe, Roush, & Strassfeld, 2014). In China, the labor laws do not consider the management personnel of organizations when coming up with a system of governing the wage payment. For example, it does not make any differentiation between a regular customer service assistant and a manager in a communication corporation. Both are supposed to be paid according to how the law stipulates, and the management personnel is not entitled to any special payments and benefits (Zhu, 2005). Everyone in the working class is grouped into a similar salary level. This affects many workers since most of them expect exclusive benefits when promoted, which makes them look for other alternatives in foreign corporations, thereby making employee retention hard for local Chinese companies.


In the UAE, retaining employees in various companies is hard, which is a human resource challenge that China also faces. All the employers in both the UAE and China want to hire cheap labor, though with competence and high skills in a particular job (Dike, 2013). The market in the UAE is also full of highly qualified people for many jobs in the country. This leads to the same situation as in China where people accept to be paid wages that are lower than normal. Consequently, when employees find a better opportunity, they take it. However, in the UAE, the labor laws do not classify employees who have managerial positions as being in the same wage structure as those working in lower positions. Unlike in China, management personnel is entitled to special benefits and payments for their work and achievement of the company’s objective.

Some of the challenges that the UAE has faced in the retention of its employees are differences in culture between the immigrants and the original population of the country. The country has seen many immigrants from various countries with various ethnicities and cultures. These people approach their careers and jobs differently and opt to satisfy their particular needs through their work. This makes it hard for big corporations to know the expectations that employees have of the company, which makes it difficult to satisfy the entire workforce. China has also faced challenges in the retention of its talented workforce in major industries because of a big number of foreign companies trading in the country. Although the government has imposed a few tough laws and policies on foreign companies, they continue to offer better packages in terms of care of the employees, thereby hiring them away from the local industries. There is also the fact that there is a dense population of highly qualified people, which is a challenge in both countries. This is because organizations tend to be tough in making policies governing employees knowing that replacements would be easy to find in the market. This has led to poor treatment of workers in many industrial sectors since companies take advantage of employee desperation.

The Arab culture is low performance-oriented, which means that they value family relationships and it is more important for them who people are rather than what they do. This explains why the labor laws do not affect the special treatment of management personnel since the Arab culture to some extent does not value materialism or competitiveness. However, the Chinese culture is high performance-oriented. It means that they value a person’s development through training and they value competitiveness within the society. This explains why the government has set stringent labor laws that do not recognize the management personnel as requiring any special wage structure. This is because the Chinese culture advocates hard work and competitiveness for one to receive payment or any special benefits.

The UAE Perspective

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To ensure productivity, loyalty, and commitment of employees, an organization should make sure that it provides good wages that are equivalent to the job done. Moreover, it should set policies that provide better care to its workers. In the event of hiring new, expatriate workers from China, for example, the human resource department should formulate a policy that states that the working day of Chinese employees cannot exceed 8 hours and allows them to have a rest break after having worked for five hours consecutively. The highest number of overtime hours should be two hours, and an increase of over 20% should be added to the basic salary in such cases. Employees should be entitled to a leave that does not exceed one month, and the organization should pay for workers’ annual vacation leave after they have worked for it for over one year. Additionally, both female and male workers should be permitted a maternity leave of no less than three months. The mothers who happen to experience complications while delivering should be allowed to return to work only when they fully recover and when they are discharged by a certified medical officer without pressure.

The organization should set up monthly meetings for the Chinese employees to freely air their grievances concerning wages, care, and anything relating to their welfare. These policies would be put in place to ensure loyalty and total commitment of the employees and prevent them from shifting to other companies. Any employee who works for the organization for a period that does not exceed one year would be entitled to the end of service gratuity payment in a bid to increase the employee longevity in the organization (Dike, 2013).

One of the challenges that the organization would face is the expectation of the Chinese employees to receive a 150% increased salary for overtime hours as the labor laws in China stipulate. However, the UAE labor laws state that a worker should receive a compensation of only 25% (Khoja, 2013). The organization should solve this issue by raising the basic salary of the employees to make it higher than what they would receive in their country so that the overtime percentage would result in better payments. 


Offering better salaries to employees and providing better care is one way in which an organization can boost its employee productivity and ensure a high generation of income. Policies and labor laws oppress employees by demanding commitment, making them work extra hours, and paying lower wages to drive them away to look for better options. This is also seen in China where workers are currently opting to work for foreign corporations investing in the country to earn huge salaries as opposed to the local companies that oppress them. As time goes by, it will be especially difficult for businesses to recruit a highly qualified workforce if the human resource practices are not effective. Making use of advanced practices in human resources, as well as understanding the culture of a particular set of personnel and comprehending local employee grievances, will lead to employee satisfaction, which will result in better retention of workers in the long term.

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