What’s more, China’s cash-focused compensation strategy is a highly attractive one—in addition to pay premiums, technology industry employees can look forward to generous project and retention bonuses, and also benefit from profit distribution or excess profit sharing. In this regard, E.U./U.S.’s choice to focus on equity premium could fall short of a key factor in attracting and retaining top talent in a hotly contested market like China.
Even though tech companies are in search of technical skills, companies also look for behavioural traits. Problem-solving capability is in high demand, both in China and E.U./U.S. —as well as other qualities such as leadership capabilities, high emotional intelligence, good written communication skills, strong negotiation skills, and the ability to work well in teams. Although it’s not realistic to attach pay premiums to each of these skills, candidates and employees who demonstrate them are more likely to be rewarded—and in China, this means higher cash.