While the behaviors of Generation Y in the United States have been all the rage the past several years, there are some profound generational differences in China that deserve equal attention, especially as China continues to drive global economic growth. The young generation of China happens to share some similarities with Gen Y here in the U.S., but there are several key differences which are critical to understand when shaping strategies for recruitment, engagement and retention.

A number of the characteristics often attributed to Gen Y in the U.S. include: A sense of entitlement; open, collaborative work style; and a desire to be involved in decision making. An Economist article describes an additional hallmark of this generation: “Bosses complain that after a childhood of being coddled and praised Net Geners demand far more frequent feedback” (Dec. 30, 2008). Indeed there is a significant level of culture clash when a generation accustomed to instant responses in social networks has to wait for either a quarterly or annual performance review from an older manager.

The young Chinese generation, often referred to as the “Little Emperors,” shares this sense of coddling and pampering with the U.S. Gen Y. These are the children of the “one child policy” who received special attention from doting parents and grandparents. They are especially common in the rich, coastal areas of China where the policy was more strictly enforced. The presence of this generation in the workforce helps explain the rise of conspicuous consumption, individualism and career mobility now seen in China.

Western managers, however, assume far too much individualism than is actually the case when this generation is in the workforce. One manager from a German tool company with several plants in China complained, “How do I get them to take more initiative?” U.S. Gen Y is quite happy to be proactive in the workplace and is eager to express their ideas to management. How do they differ from the Little Emperors? U.S. Gen Y did not grow up in a Confucian based educational system.

Despite the increased individuality found in the young Chinese generation, they still attended schools that encourage rote learning and respect for authority. The role of the teacher is to instruct the student rather than foster contradiction and debate. These Confucian values of hierarchy and obligation then manifest themselves in the workplace, so managers are perceived as responsible for their continued learning and development. If these younger workers don’t get those opportunities then they soon leave for another company.

SHRM’s 2007 report on Employee Retention in China cites lack of development opportunities as the top reason for employee turnover. Western managers assume the Little Emperors are more proactive about their learning than they really are, so many remain unaware that they need to structure and present such programs more aggressively. Stephen Markscheid, a former Beijing based GE executive now serving on the boards of two Chinese companies, has frequently observed this western management trend: “Western firms naturally expect more ambitious staff to self-select, seeking out opportunities themselves for professional development. Local Chinese managers intuitively understand that their role obligates them to take a much keener interest in the advancement of their subordinates.” Interestingly, the western multinational companies that explicitly design developmental programs for their young Chinese talent prospects are far more successful with retention rates.

Take Intel for example. The Wall Street Journal reported that when setting up their plant in Chengdu in western China, they closely aligned themselves with the local university (May 23, 2006). They assessed professors and invited them to the plant to better understand the manufacturing process. Intel even added courses in the university curriculum and purchased the necessary textbooks for students. All of these efforts allowed them to shape and train their future hires as well as build critical relationships with the community from a long term perspective – values that run deep in Chinese culture. In return, young generation Chinese have been very enthusiastic at the prospect of working at the Chengdu plant given their commitment to long term development and education.

AstraZeneca is another company that pays special attention to the young generation Chinese (SHRM Employee Retention in China, 2007). They employ a comprehensive approach to talent management and make the strategic connection between selection and retention. They have special campus recruiters who utilize behavior based interviews to help identify candidates that fit the company culture well. AstraZeneca experienced most of their turnover in sales, so they further identified high potential sales talent and created very clear career paths and developmental plans. They found that these selection and development strategies dramatically improved retention rates.

What companies are discovering about the young generation Chinese is that they are not as motivated by flexible work conditions and lifestyle support, which are esteemed much more by their U.S. Gen Y counterparts. The Little Emperors want to work for well respected companies that are willing to invest in them, mostly from the developmental standpoint. So the more clearly a company presents learning and growth opportunities to young prospective employees in China, the better the chance of attracting and retaining young Chinese talent.

MARK FREDERICK, Ph.D., Director, IOR Global Performance Consulting, has worked extensively over the past 14 years with business executives and corporate teams in Fortune and Global 500 companies. Mark analyzes talent management systems and helps design solutions that reflect organizational values as well as integrate intercultural competence. He also works with learning leaders in companies and universities to develop systems and curriculum that foster the development of intercultural competence. Mark has broad, global experience working with leaders and employees from over 50 different countries. He is licensed to deliver and interpret the Intercultural Development Inventory (IDI), the Culture in the Workplace Questionnaire (CWq), the Tucker Assessment Profile (TAP) and The International Profiler (TIP) – assessment instruments useful for coaching, candidate selection and team building.