labor - "Foreign companies overpay graduates"

Shaun Rein, the managing director of the China Market Research Groups joins a debate at Harvard Business Review on wages in China:

Consider the following: Organizations in China—the small and midsize enterprises as well as the Fortune 500 companies—are actually overpaying university graduates right now. The first job out of university for many Chinese grads is with a multinational. That’s because the graduates’ parents, most of whom were raised in the state-run era, want their kids to find stable, prestigious work in big companies. When the grads leave their first big jobs, they become more independent; they do more of what they want and thus join smaller firms. To get the right talent for their teams, foreign companies are regularly doling out 20% increases in salaries to junior workers to poach them from other companies.

Putting more emphasis on training and career paths would be better than paying more money, says Shaun Rein. He might be right, but I'm not sure whether he will get a lot of following.