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People's Daily Online>>China Business

Chinese firms lag far behind foreign counterparts in human efficiency

By Yang Xuemei (People's Daily)

14:31, April 10, 2012

Edited and translated by People's Daily Online

The human efficiency of Chinese enterprises only accounts for 19 percent of that of the Fortune 500 companies, according to data from the "White Paper on Human Efficiency of China Enterprises 2011" recently published by the Chinese Human Efficiency Improvements Research Center.

Human efficiency is an indicator to measure the profitability of existing human resources, which refers to the ratio of total operation revenue of an enterprise to the total number of its employees, equal to the per capita output in value, said Deng Ting, secretary general of the Chinese Human Efficiency Improvements Research Center.

The White Paper compared 2,767 A-share listed companies of China by 2010 with the Fortune 500 companies and found that the human efficiency of European enterprises is six times higher than that of Chinese enterprises. The human efficiency of the American and Asian companies, excluding China, is five times higher than that of Chinese enterprises and Australian and Americas, excluding the United States, is more than two times higher than that of Chinese enterprises.

The data shows that the per capita output of over three quarters of Fortune 500 companies reaches more than 188,000 U.S. dollars while over 80 percent of A-share listed companies in China are lower than the figure. Energy industry, which has the highest human efficiency in China, has the largest gap with the Fortune 500 companies.

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