To my great relief, as the owner of a recruitment firm active throughout China, 2013 is looking like it’s going to be a good year: The Europeans seem to have adverted the ‘nuclear’ scenario being touted last year of a multi-country Euro exit (there are even positive noises about Greece’s economy now); the Britons and the Germans seems to be talking sense over the EU budget; the stock markets around the world have rallied so far in 2013; Obama is pursuing a growth agenda alongside encouraging data coming out of the US and there seems to be increasingly and repeatedly positive news about the state of the Chinese economy; albeit with simmering concerns over local government debt.
We can, therefore, take comfort in the fact that there is at least some good news for the average white-collar professional working in China (unless you’re a banker), as the renewed confidence in the economy translates into greater hiring numbers; particularly in mission critical / demand-creation roles. I would expect this confidence to grow quite considerably in Q3 & 4 of 2013. So with this likely need to hire, I’d like to offer a different perspective on taking on hiring individuals who are currently not in work.
Traditionally, there has been an assumption amongst many executives that those not in work are in some way tarnished, and therefore to be avoided (I know this having talked about it to thousands of clients over the last 15 years in many different countries). An assumption that their lack of work is in somewhat related to poor performance either directly or indirectly, and ‘they’ are therefore ‘best’ avoided. Maybe a reasonable assumption in a developed economy, not so here!
Let me present to you the current scenario in mainland China, and then some reasons why it might just be the best thing you’ve ever done to hire someone who’s not working:
Firstly, the Chinese situation at present: The ratio of cost of living to income amongst affluent, educated professional people is just about the highest I have seen anywhere in the world. What I mean is this, although yes, food prices have risen of late, the cost of food, particularly when consumed in restaurants, is tiny compared to the average professional’s income. You can eat well, with wine for CNY 200, (USD 30) whereas the same would cost you 4 times that in major western cities. My car (a ‘full-sized’) costs me CNY 400 to fill up in Beijing, whereas in London my (by comparison) tiny VW Polo costs me CNY 600 to fill up (and it’s tank is half the size!). Taxes, when you factor in indirect taxation, are much lower in China than in most European countries.
You get the picture, if you don’t have an army of Children in international schools in China, the cost of living is cheap; and even more for the many Chinese who invested in down-town property developments 10-15 years ago for a 20th of the current prices, when the developers were enticing people to pool their family money (and so created a slew of dollar millionaires in the process). And then there’s the family. Chinese people are very skilled at sharing their wealth within their extended families to facilitate property purchases and other investments; there is a group attitude to wealth creation, and it often seems to have worked to many families’ advantage.
According to the statistics of RMG China Talent-flow Survey, among the online job seekers, only 9% employees with bachelor’s degree receive no responses in the last 6 months |
Chinese Recruiting Pattern & Trends – Bachelors Beat Doctors!RMG Selection initiates China Talent-flow Survey 2012 – 2013 Report. China Talent-flow Survey is designed to understand the current talents flow trends on region, company type, industry and positions within Greater China Region, and get an insight of changing job and how do candidates engage with headhunters. According to the statistics, among the responses from online job seeking, employees with doctor’s degree are less popular than those with bachelor’s degree. MBA does not show its advantage in online job seeking. Employers have different requirement in the aspects of education background for employees of different positions and different type of work. Higher education background doesn’t mean better job opportunities. Finding one’s niche in life, making a timely judgment, and then the education background will become the assistance of your career. |
Link to the article: http://www.recruitment-international.co.uk/news/chinese-recruiting-pattern—-trends-%E2%80%93-bachelors-beat-doctors-18687.htm
Download the full report: https://www.rmgselection.com/tfs
罗迈国际RMG Selection祝您新年快乐、心想事成!回顾2012,总有点点滴滴难以忘怀。有汗水,也有喜悦,有困难,也有成绩。借此15分钟的视频,感谢每一位RMGer 2012年的努力付出,相信2013我们会创造更杰出的成绩。感谢您的观赏!
Watch the video on Youku: http://v.youku.com/v_show/id_XNTE1NjAyNTcy.html
Watch the video on Youtube: http://www.youtube.com/watch?v=b74rFnEkVmw&feature=youtu.be
Enterprises must have a balanced hiring strategy to stay ahead in China
Everyone in the sphere of professional staffing and human resources in China seems to talk endlessly about a shortage of “talent”. Indeed it seems that this problem is an assumed consequence of a fast developing economy. However, it is simply not true that China lacks talent.
According to thefreedictionary.com, talent means “A person or group of people having natural endowment or ability of a superior quality”. Therefore, when we use the word talent in the context of the general employment market in China, I think what people mean about a “lack of talent” is a lack of workforce engagement exemplified by:
A generation of particularly highly skilled employees who are spoiled for choice and not afraid to show it;
A general trend in the labor force toward uncontrolled and unjustified increasing compensation;
A lack of sense of loyalty to companies
So I would prefer to redefine this group more accurately as a group that is short of motivation, not talent.
When we look at what talent actually means, the key is having skills or experience of a superior quality. China has a huge population of 1.3 billion and has been successful in educating those people. There is no dearth of Chinese “talent” seeking admission to the Ivy League and other top European educational institutions. There has also been a steady flow of Chinese professionals from abroad to the mainland in the last seven years. Most of them are highly educated professionals, in other words real “talent”.
So, combining the huge number of home-grown Chinese graduates with returnees, together with the millions of blue-collar employees who are highly skilled, I find it hard indeed to believe that China lacks talent.
In fact, the case is that China has not yet had the time to properly understood how to manage, motivate and retain the human resources it does abundantly possess. The problems of the enterprises are not that they lack “talent”, it is that:
They do not know how to retain employees;
There is a lack of engagement in the work;
The preoccupation with the belief that money motivates;
The lack of leadership experience within different corporate hierarchies;
Obsession with status
The true talent for a company is those who best fit the corporate culture and values rather than those who are simply the “smartest” or best-educated. Those who fit the company best means that their skills, knowledge and vision are in accordance with that of the company. For a company to produce and retain as many of these types of staff as possible, it can take measures such as good quality new employee training and induction, leadership training, apprenticeship programs and a focus on “good” corporate culture, etc. These actions will help the company create highly engaged, highly motivated employees.
Companies need to think seriously about how to keep employees, otherwise there is no point in hiring them in the first place. All of the actions and systems need to be based on the fundamental point that it is important you select the right person.
Based on my eight years of experience in China, I have found that there are some key factors needed to transform the existing workforce into one that is highly motivated and engaged and also to retain talent.
1. Money just cannot be the only reason for people to join a company. It is important to understand what it is that really drives new hiring and if it is just money not to proceed with it.
2. Use a fair and clear salary scale.
3. The perceived value of the total pay package is important. Load it with other incentives such as overseas trips, teambuilding nights or recognition systems.
4. A manager should spend more time with new people and know their needs.
5. Once you account for the overall costs, you will understand the necessity to have a well thought-out hiring process.
6. Be aware of the non-verbal communication in hiring and induction process and pay attention to the body language.
7. Trust your instincts.
8. Pay them enough.
Enterprises that are most successful in China today have a good culture, focus on matching values and people rather than obsessing with people’s experience and education. Most importantly, the employers seriously believe in a long-term approach to business.
The author is the founder and managing director of RMG Selection, a recruitment consulting company based in Beijing.
Read the whole article: http://usa.chinadaily.com.cn/weekly/2012-08/31/content_15722774.htm
Read the magazine: https://www.rmgselection.com/images/rmg%20news_cd-sep_rp_3.jpg