Chinese firms compete globally for top talent

Chinese firms with global ambitions are now competing with major multinationals to land the best talent, according to a top headhunter in Beijing.

Despite a slowdown in the nation's economy, China's state-owned and private companies, including startups, are emerging as key players in the global talent market, says Zhang Yang, a senior consultant with Spencer Stuart, a leading executive search and leadership consultancy.

She says more Chinese enterprises are looking for high-level recruitment services, and this year has seen a trend of local workers moving from foreign multinationals to domestic companies.

Spencer Stuart has forecast that its revenue for the Greater China region will grow 15 to 20 percent this year, with business from Chinese companies expected to rise 50 to 100 percent.

This is largely down to the fact more Chinese companies are going global, Zhang says. "For example, we're searching for talent to fill seven high-level positions in China and abroad for a big Chinese finance group because its executives believe sooner or later it will compete on the international stage with other first-class financial companies, so they want international first-class talent."

Another factor is that enterprises across China now want workers with an international vision and mindset, to help make the corporate culture more international and effective, she adds.

In November, Zhang told a meeting at the China Outbound Forum in Sanya, Hainan province, that Chinese firms began going global two decades ago and already have lots of experience, but the next big step will be to attract the best talent from around the world.

"Getting the right talent is not only a challenge for Chinese companies want to go global, but also a challenge international companies face," she said at the forum. "But when it comes to attracting and keeping talent, Chinese companies are still at the initial stage and have a long way to go."

In an interview with China Daily, she says most Chinese enterprises that branch out overseas have a market strategy, but few have a recruitment strategy, such as deciding what kind of skills they want, how to go about finding the right people, or how to evaluate and retain them.

Currently, many companies just send over a team from China and apply their own management methods, "but this won't work in a European market", Zhang says. "European companies emphasize flexibility and innovation, which is different from the traditional top-down management style of Chinese companies that emphasizes order and authority."

Meanwhile, other firms let their overseas operations run themselves, but she warns this can lead to a lack of supervision.

One important step is defining the skills needed to carry out a global strategy, she says. "A company needs to first think what kind of talent it needs, whether it be a manager, someone good at dealing with government relations, a good marketer, or someone familiar with the local technology or industrial chain."

Finding the right person is imperative. Zhang says about 70 percent of foreign executives quit within a year after starting with a Chinese company.

"Some candidates have said to us they found it difficult to understand how Chinese companies operate and the internal reporting mechanisms, and said they found it was difficult to fully develop their strengths."

Cultural differences can also be an obstacle to team-building for Chinese companies with overseas operations, as communication between Chinese and local employees can often be restricted to work, so team leaders play an important part in integration, she adds.

chenyingqun@chinadaily.com.cn

(China Daily European Weekly 12/18/2015 page21)