Abstract
Internet startups in China are currently facing a severe labor force shortage. The White Paper on Employment Insights in China’s Internet Industry (Enterprise Chapter) has highlighted that labor force distribution in China’s Internet Industry is imbalanced, with 60% of resumes going to 3% of big firms, leaving startups unable to hire enough employees, instead big firms unable to find the suitable staff. This study aims to determine how Internet startups improve their appeal to fill their labor force shortage. We have undertaken a conjoint analysis experiment online with Internet firms in China. Our results indicate that the annual salary is the most essential criteria for respondents when choosing a job, followed by firm size, weekly working hours, location, and team-building activities. There are also distinct preferences among employees. For example, female Internet employees and those with master’s degrees are more sensitive to income fluctuations. On this basis, Chinese Internet startups can attract Internet employees with a cost-effective strategy that combines improved pecuniary conditions and non-pecuniary conditions based on characteristics of different types of employees.
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