Highly skilled Chinese workers are a tremendously valuable asset to multinational companies doing business in China.
However, new research from the Corporate Executive Board (CEB) shows that many of these workers are now engaging with domestic employers a trend that puts Western companies trying to compete for talent in a precarious position.
According to CEB, there are two main reasons for this shift:
China's continued economic growth despite the global recession
Chinese companies offer more compelling career opportunities than their counterparts based in the West
At this point, CEB says Chinese companies are essentially viewed as equal to multinational brands in terms of employment preference.
"Our Western multinational clients are increasingly concerned about their ability to attract and retain highly skilled Chinese talent," Conrad Schmidt, executive director of CEB's Corporate Leadership Council, explained in a press release. "Many say their Chinese talent is being aggressively recruited and employees get calls daily. What's more, multinationals are hard pressed to fend off the domestic attack, since the benefits that have been historically most attractive to this talent pool are no longer unique. In fact, many Chinese employers can match or beat them."
Clearly, Western multinationals must re-evaluate their recruiting strategies if they hope to re-establish their edge and effectively recruit within China. Based on its research, the CEB developed five specific recommendations for Western companies that want to regain their footing. The CEB says that Western multinationals that want to attract and retain highly skilled Chinese talent need to revamp their approach to:
Counter strategies for compensation
Establishing a local presence and relationships
Forward-thinking companies will take this advice --and they'll be prepared to invest more resources in the fight to acquire and retain talent.