Case Study On The Human Resource Straits During The Cost-Migration To West China Of PSi Technologies

In recent years, the cost-migration of labor-intensive manufacturing companies is getting more and more popular. But during the migration of the plant of PSi Technologies Co., Ltd. from Philippines towards Chengdu, the threat from talent acquisition and retention gives a lesson to the HR managers as well as the cost-migration decision makers.Talking about the micro scale of HR management of a single company, while facing more and more human resource competition, HR managers have to adapt the working habits together with the whole mindset for survival. Regarding the acquisition of work force, HR managers need to establish a reasonable and competitive compensation and benefits framework to reinforce the attraction of company as an employer. Also employer branding helps to develop more effective sourcing channel for recruitment. In a larger scope, HR also need to cooperate proactively with local government, universities and colleges and even other competitors to adapt the talent cultivation system to enlarge the total human resource supply.While facing high turnover rate, beside the retention approach, HR managers need to think more on the sustainable human resource supply within an organization by building up a healthy training and development system as well as succession plan within. Retention plan is much more challenging for the HR managers of those labor-intensive manufacturing company for the pressure given by the cost reduction strategy.1st, HR managers should strategically use the C&B (compensation and benefits) method to invest in the core competency holders within organization to"influence who leaves and when"after trying the best to retain by creating and maintaining the sense of equity. By doing so, HR managers can make the threat of turnover easier to handle. 2nd, organization need to pay more attention to people management skills of the direct managers towards a better working environment both physically and emotionally in order to optimize the working satisfaction of employees.3rd, for those high level positions, HR managers need to ensure the sustainable work force supply by combining employees'career development plan with company succession plan. For those low level positions, better to standardize the work contents by setting up procedures. It helps to shorten the replacement cycle time to an acceptable level. For those cost-migration decision makers, they need to recognize that"historical trends and present conditions may be less important than future development".