Grant Thornton
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2008-04-10

Substantial increase in
Chinese personnel costs

According to new results from the Grant Thornton report, personnel costs at privately held companies increased substantially compared to last year. At the top of the list are the growth economies. Sweden, Japan and Spain are at the bottom of it.

With 91 percent, China is at the top of the list of countries where privately held companies experience a considerable increase in staff costs compared to last year. Botswana is second with 86 percent followed by India with 85 percent.

- The new growth economies experience the largest increase in staff costs, says Peter Bodin, Managing Director at the accounting and consultant firm Grant Thornton in Sweden. Out of 7800 surveyed companies, 63 percent report a considerable increase in staff costs. 36 percent of Swedish companies report a substantial increase, positioning Sweden as number 32 out of 34 countries in total.

 

Retaining your staff

In addition, the survey indicates that the growth economies are at the top of the list with companies being more focused on recruiting than retaining personnel. This time, Vietnam is at the top of the list followed by China. Half of the companies in Sweden state a stronger focus than last year. The most common way to retain and attract personnel is to strive for the staff’s knowledge about company core values. 57 percent of the companies offer training and mentorship for future managers. Only 35 percent of the Swedish companies are offering these benefits.

                                               Emelie Ring, Editor Establishing Abroad


 

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