Current Issue: Minimum Wage In China

Current Issue: Minimum Wage In China

Human resource involves numerous issues. Every day around the globe, some issues and laws are passed by the lawmakers to guide the organizations on how to treat their employees. While numerous legal laws are affecting human resource management across the globe, the most concerning issue that seems to be common in many organizations is reward and compensation systems. In most cases, the government and the law make pass the laws that are deemed to be enough and sufficient for them to meet their needs(Chipman,  Zhou, 2018). This is a big issue that affects people across the globe. Effective performance of employees depends on how well they have been compensated and the wages that their employers pay them. It is always difficult to determine the minimum wage that can be offered by an organization to an employee. As one of the most concerning issues, I have decided to choose the issue of minimum wage in China that has become a global concern considering that China has numerous multinationals in the country. Several events are related to human resource development about this course.

Human resource is about dealing with the issues that are related to people. It is composed of different items such as staffing as well as hiring and recruiting employees. Human resource has raised numerous concerns together with laws in different countries. One of the most concerning issues is the minimum wage issue China that have affected the operations of organizations that have to meet the demands of this law. In China, raising the minimum wage have always been a concern to the human resource while at the same time it raises concerns for the employees. At the start of the year 2018, the regional governments in China had raised the minimum wage from 4050 to yuan to 6050 yuan. This is meant to allow all the junior employs to be paid better including the employees auch as the security guards. The arguments are that it would help these employees to meet the constantly increasing cost of living. The local government has also laid down some rule that guards employment issues such as contract termination and how to treat the employees. The local governments in China are also expected to update the given minimum wages after a few years and that they are supposed to remain flexible so that the wages are adjusted according to their local demands and conditions. This is the current issue that I have picked on and would like to dissect as it is closely related to this course.

Impacts of this issue

Minimum wage is one of the most concerning issues in human resource is the key to other employee activities such as motivation, salary, and award system. When there is a huge demand for the wage that is determined by the law, it becomes difficult to improvise on the other compensations. It also affects the recruitment process. Dealing with the people and staffs that operate in an organization involved numerous issues such as recruitment and salary are at the heart of it. Research has shown that compensating people leads to an improvement in performance and corporation. Also, the employees who are given better salaries are likely to get better involved in the operations of the company thereby creating teambuilding and harmony. For a long time, deciding on the amount of minimum wage that is supposed to be paid to the workers have been a problem. Every company usually gives compensation based on the qualification and experience of its workers. It is these qualifications that relooked for when people get employed. Most companies use the qualifications to get employed and to join the firm. In most cases, the most qualified and senior employee is supposed to get higher payments and rewards as compared to the junior employees who may be less qualified.

In China, provinces have different classes about the minimum wage. The most concerning consideration is the cost of living that is quite varying in different regions. There are regions where the cost of living is low, and therefore the minimum wages have to be no compared to those who leave in expensive suburbs where life is more expensive. In such cases, it is essential for companies to adjust as required. This issue has seen three of the most wealthy provinces in China such as  Guangdong, Jiangsu, and Shandong raise the minimum wage tremendously making other employees from different regions to demand an increase in wage compensation. It is also a concern that some wealthy provinces are freezing the wage offered for the people so that they can increase the gross domestic product.

The increase in minimum wage has excavated the disparities within different regions. This is because the richest that are developed have minimum wages almost double those of less developed regions. The highest minimum wage is paid in Shanghai followed by other developed regions such as Shenzhen and Beijing. This is a massive issue, and it is currently influencing the decisions of human resource department especially when it comes to employment and recruitment. Several employees are likely to go to places where they are highly paid and reject offers where they are not paid well. The increasing differences in payment can be seen to be the primary source of regional imbalance especially when it comes to talent and recruitment. For the regions which cannot afford to pay the employees as required by the minimum wage implementation, it is less likely that they can meet the requirements of the market and compete with the companies that are in more developed regions. Income inequality is one of the biggest concerns in the world today. China is one of those countries that is experiencing inequality in terms of labor supply and compensation.


How this current issue applies to the cause

The issue of minimum wage has helped me understand the cause better in many ways. First, it is important to note the role of the government in determining the success of the company’s and operations of the human resource department. The government has a massive influence on the operations of the companies. Through passing the laws that cover the sensitive issues such as minimum wage and recruitment, it becomes a concern for the leaders in an organization who have to adjust well to meet up with the demands of the government. It is also important that employees manage their resources well so that they can meet the minimum wage. Keeping the employee s happy is a major factor in the minimum wage issue. It also affects the decisions that are made by the employers. The administrators have to make decisions that affect the employees including promotion and termination of contracts. The employers have to terminate contracts of some people so that the minimum wage requirements can be met. It puts too much pressure f the companies that have to adjust by eliminating some members of the organization. To make up for the increased wages, it is vital that the human resource department perform an appraisal and get feedback as to whether the employees are motivated or not. Employee motivation is an important element in the human resource; it also encourages them to even the feedbacks concerning the performance.


Impacts of the minimum wage issue on the labor cost


Apart from the human resource department, the entire economy depends on the compensation of employees. As the economy of China moves up in the level of the value chain together with the transition in service innovation, there are workers employed by enterprises that are foreign investors who have to earn money about the minimum wage. This affects the people in the country as the foreigners have to pay the wages by the law. An example is a worker in Beijing who is on a minimum wage of $1200 per month in the year 2017 to 2018. As the year changes, it becomes important to make adjustments with the demands of the law. This law puts too much pressure on the employers who have to adjust under the demands of the government. Human resource activities include recruitment training and career development. The activities incur a massive cost that the employers have to adjust to. The adjustment can prove to be quite expensive especially those that relate to international human resource management. Because many workers are aware of their minimum wage, it affects their performance and the overall performance of the firm. This is a trend that has been excavated in the wealthy regions of China. These are regions that had traditionally been the hotbed of investment and manufacturing. Numerous migrant workers leave where they are to join the inland parts of  China where their wage is high. Statistics have shown that the migrant workers fell by 3% after their minimum wheeler was implemented. This contributes to different ideas and specific features of performing or doing business in China. Employers who are from foreign nations have to adjust to the demands of the country and ensure that they give the minimum wage that is more than the normal wage. Also, some employers do not like to pay the minimum wage demand.

How this issue can directly affect me in the working world


After graduating from school, it is obvious that the first initiative is to look for employment. In most cases, the best employers are those that provide the best wages. Due to the numerous issues that take place in China as a result of the minimum wage,  it becomes important to consider regional differences while choosing for a place of employment. Just like China, there are fewer differences at the regional differences in the economy throughout the globe including Canada. In Canada, the minimum wage is a massive issue because the cost of living is higher. It will be important to get involved with companies that are within locations where workers are paid better. It is also important to compare the locations for investment as a parameter to gauge the labor cost through the different regions. At the same time, this issue will be important for me as an employer who will start her own business. Identifying specific wages within the industry and the available talent is important as an employer especially when performing recruitment and training of the employees. Human resource involves getting the right information and managing people in an organization. As an employer, human resource ideas such as training, recruiting and managing are important parts that lead to success. After completing my school, I will be an employee who has to consider issues that are trending especially those that are concerned with human resource development such as reward and compensation. Employ management and performance have a lot to do with supervision and leadership management. All these come as a result of excellent condition and management. Excellent Supervision and leadership are keys to better performance in an organization. It also has to do with stress management within the workplace. Employee motivation together with the training and development are key to the better performance of an organization. People who work and manage different aspects of the human resource have to be well equipped with organizational development, and personal effectiveness.these are factors that are considered before an employee signs with the new company. It is best always to include success and effectiveness when describing the future of the employees. For the investors, it is always unavoidable to keep up with the rules that have been set by the government. This is a feature of doing business in a different place as the government plays a key role in determining the success and operations of an organization. Other factors affect productivity in an organization including access to the market and getting talented employees into an organization. It is always best to follow the right procedures and follow the right recruitment strategies. When it comes to locations, the minimum wage is a barometer of deciding whether the labor cost across different regions is a factor in deciding the location for the firm. When introducing a new product into the market, government restrictions and laws such as the minimum wage law can affect the general strategies laid down by the intrapreneur.

Role of states in the industrial corporation

In the industry, numerous ideas and issues are decided upon by the state. The role of states in industrial relation is a massive issue that human resource developers have to take into consideration. States are the regulators of the entire market as they establish the labor standards including the minimum wages, the safety for works and conditions that are sufficient for the workers.apart from this, the state ensures that all the social standards that have been set are met by the employers including the standard of living. The state together with other local governments and was that there is an improvement in the labor market through the use of interventions that can help with the supply of the employees. This applies in some organizations including nursing institutions where there must be enough nurses for them to operate. It is the role of the government to solve the ideas behind the shortage of nurses in healthcare organizations. There are numerous immigration policies in Canada including the federal skilled worker program which determines how the immigrants can get employment or any form of work within Canada. The local government is in charge of the working conditions for the employees. After graduating from school, it will be important to recognize the massive role played by the state in the corporate industry. The government also ensures that industries and business institutions maintain they have corporate roles and responsibilities. Corporate social responsibility includes taking care of the environment and helping the people around the community. This ensures that the industry benefits everyone but not only their owners. The state also plays the role of establishing the welfare system by providing insurance risks against employees and thus were not employed. It is the role of the government to protect individuals rights including the rights of the employees and employing people on equal terms and basis. Equal employment opportunity also ensures that the interest of particular groups such as races, and specific sexual preference group, and the disabled people are also given the same chance as those that are normal. It is important to recognize these roles especially after graduating from school and starting to venture into the entrepreneurship world.


In Conclusion, this work has explored human resource management issues, specifically, the minimum wage issue in China. This is one of the biggest concern in the human resource department, not only in China but also across the globe. Companies usually struggle with methods that can be used to maintain and keep their employees. Through determining the wage that is given to them, it becomes easier to manage and to keep the employees happy. Minimum wage in China also has a massive influence on the economy of the country. This is an issue that relates directly to what has been learned in this course. It is an idea that I will have to consider while I graduated from school. It will be important to consider the differences in locations and places where the minimum wage is high depending on the economic status of the region. Human resource management has to look and ways on how to balance the employee reward and compensation together with the laws that have been set by the state and the government. The state has a massive role to play in the operations of a country and organizations in a country. The human resource department has to recognize the importance that this stage plays in the industrial corporation.


Chipman, A., & Zhou, Q. (2018, December 17). Minimum Wages in China 2018-19. Retrieved from