This Korn/Ferry report was passed on to me which I found quite interesting.
"Overcoming the Challenges of Recruiting and Retaining Talent in China’s Life Sciences Market" provided some interesting insight to the issues and unique features of the MNC environment in China. While it focused on the life sciences sector (medical equipment, pharmaceuticals, biotechnology, etc.), I would think the conditions and skills shortage were similar in other sectors.
Brief description of current environment:
* Severe shortage of PRC nationals in executive roles with sought after skillsets - widening a gap in local talent versus expat talent.
* MNCs look to returnees to fill those roles, however problems in cultural fit lead to just 1 out of 3 returnees succeeding.
* Steep salaries - Whereas globally, compensation increases with cost of living (about 4%), in China the minimum annual increase is 10%.
* High turnover rate - Because of skills shortage, top execs expect 50-100% comp increase when considering new jobs, where realistically it should be 15-30%.
* Relocation within PRC relatively new and very difficult to retain talent
* Organizational development also relatively new
What this paper explores is the need to stabilize the workforce by localizing the workforce with a proactive focus on training and development programs that foster loyalty to the company's culture.
It's clear that while recruiting is intense, HR development will be even more intense.
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