Talent war heats up for foreign companies

Talent war heats up for foreign companies in China: Manpower

Manpower Inc. 2010 Talent Competitiveness Survey reveals strength of Chinese private-owned companies is changing the country’s employment landscape

New Zealand (11 November 2010) – Companies with operations in China need to step up their efforts to attract and retain local workers, or face losing out to Chinese private-owned companies in the battle for talent, according to a new Manpower white paper.

According to Chris Riley, General Manager of Manpower New Zealand, foreign companies in China are facing increased competition for talent as worker preference leans towards Chinese private-owned businesses, with the number of job seekers considering a foreign company as their first choice of employer down 10 percent since 2006.

“Many New Zealand’s biggest companies have major holdings in China, including Fonterra, Richina Pacific, NDA Engineering and PAN PAC, and it’s vital that these companies realise the importance of developing HR strategies that will drive their business forward in that region,” said Mr Riley.

“China is New Zealand’s second largest trading partner, so it’s likely we’ll see more and more companies looking to establish a presence in there. But, just as we advise local employers in New Zealand to develop a robust hiring strategy aligned with their business needs, it’s even more important for companies entering the Chinese market to ensure they have the talent pipeline in place to win in an increasingly competitive market.

“China is only the ‘land of opportunity’ if businesses can find the right people to make use of that opportunity,” he said.

The rapid rise in demand for Chinese private-owned company employment is based on a number of factors including training opportunities, compensation and the perceived ‘glass ceiling’ - favouring senior overseas employees over local talent.

Manpower’s survey reveals that 43 percent of job seekers who favour Chinese private-owned companies do so primarily because of “better compensation”. This figure is seven percentage points higher than for those who are attracted to foreign companies.

According to Jeff Joerres, Chairman and CEO of Manpower Inc., while 60 percent of HR managers at foreign companies based in China say they are already feeling the effects of competition from Chinese private-owned enterprises, few companies are actually taking steps to respond to this challenge.

“Foreign companies’ reputations as “golden brands” is under threat as Chinese private-owned companies increase their appeal to local workers,” said Mr Joerres.

“Multinationals need to respond to the increased competition for talent from local businesses. While business opportunities in China continue to grow, competition to attract and retain talent will only intensify as local and international companies seek to increase their footholds in the Chinese market.

“HR must take the lead in developing workforce strategies that address the specific needs of Chinese management-level workers in terms of compensation, training and career development. If companies are held back by their inability to secure the talent needed for expansion in China, it will restrict their ability to grow and take advantage of business opportunities.”

A full copy of the Manpower Fresh Perspectives paper, Winning in China: Building Talent Competitiveness, is available at:
http://www.manpower.com/research/research.cfm

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