An analysis of job dissatisfaction and turnover to reduce global supply chain risk: Evidence from China

Abstract

Suppliers' labor problems in developing countries have emerged as a key risk in global supply chains. In China's coastal industrial zones, where most Fortune 500 companies have established their manufacturing bases, local suppliers are facing serious labor turnover problems. High labor turnover rates have caused poor quality, low productivity, and unfilled orders in supply chains. Applying a combination of quantitative techniques to determine the reasons why workers leave China's export factories, this research tries to identify the root causes of job dissatisfaction leading to turnover and provides managerial implications that may assist managers in dealing with labor-related supply chain risks. #

An Exploratory Study on Workforce Development Strategies by Taiwan-Invested OEMs in China

“…For instance, the prevailing manufacturing wages in Pearl River Delta are expected to rise 9.2 percent in 2013, faster than the estimated GDP growth rate of 7.6 percent in this region. Evidence shows that the impact of volatility in labor costs on OEMs' profit margins is likely to influence global MNC's manufacturing strategies (Herrigel et al, 2013;Chin, 2013aChin, , 2013bJiang, Baker, & Frazier, 2009). Hence, as noted previously, wage increases in China have intensified the problems of high employee turnover rate and relevant workforce issues, particularly in labor-intensive OEM industries.…”

Rally for Normative Demands and Solidarity of Workers

“…Working strikes and labor protests cause a high lost of working hours, cause business loss and make potential investors hesitate to invest in Indonesia. This is reinforced by the results of research by Jiang (2009) stating that job dissatisfaction causes decreased turnover due to the high turnover rate of labor so that the quality is low. On the other hand, dissatisfaction arises because there are employees who are not satisfied with the work situation so they have attitude to unionize (Sarkar 2012; Vangel 2011;Chan et al 2010;Ford 2013;Juliawan 2011;Thomas & Sudhakumar 2012, 2014.…”

Empresas alemanas en China; ¿Cómo solventan las empresas el problema de la formación a nivel de planta?

“…With the implementation of an apprenticeship system according to the German dual model (see section 4.1: cooperation in apprenticeship), not only those companies recruiting DAWT graduates, but also others, whose employees have valued experience and skills, face the problem of losing their skilled workers as they are highly coveted on the labour market. Poaching employees from neighbouring firms intensifies competition amongst companies and, as a number of previous studies show, the prevalence of poaching even discourages firms from investing in qualification measures that would be necessary to redress skill shortages (AMCHAM SHANGHAI, 2009;JIANG et al, 2009;LI & SHELDON, 2012). German transplant companies are confronted with the risk of labour piracy, and in order to keep the number of employees being poached by other companies as small as possible, they implemented attractive staff retention programmes.…”