I shared some insights about the talent shortage in China and Asia Pacific at an executive briefing yesterday at the Four Seasons Hotel-Shanghai.

Big picture economics are of course part of the picture.  The labor market is also facing challenges.  The cost of labor and talent is getting inflated and competition is increasing.

Typical responses include using money to retain talent (comp and benefits), providing additional training and development, expanding campus recruiting and even getting experimental with non-traditional approaches.

When it comes to motivation and engagement, companies tend to over-rely on financial incentives and assume it is the most compelling motivator for talent.  Our own research with over 2000 managers in China shows that fewer than 1/3 list money, compensation or benefits as their top motivator.  There is a mismatch here.

What are effective companies doing?  Smart recruiting, culture transformation, and targeted skill development for their talented workers.

The roundtable discussions with executives after the presentation added more context to the big picture, and it demonstrated that many organizations are strugglin with exactly these issues.

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