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Graduates turn to local firms to dodge glass ceiling

0 CommentsPrint E-mail Global Times, June 13, 2011
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Editor's Note: Multinational companies (MNCs) are complaining that recruiting in China is getting harder, as local firms enter the competition for talent. Many MNCs have been forced to raise salaries and improve training programs to make themselves more attractive to Chinese talent. Does this indicate the weakening power of MNCs in China? Do Chinese employees in foreign firms face a glass ceiling?

Global Times reporter Chen Chenchen (GT) talked to Yuan Yue (Yuan), founder and chairman of Horizon Research Consultancy Group, and Jiang Bo (Jiang), China partner of Antal International, a global executive recruitment company, on these issues.

GT: Is it getting harder for MNCs to recruit in China?

Jiang: The situation is varied at different levels. Entry-level talent like college graduates increasingly prefer offers from State-owned enterprises like local banks. But for experienced talent, MNCs are still very attractive, especially in industries like consulting and auto-making where foreign companies largely outshine local firms in market competency.

We just finished a survey of nearly 3,000 senior employees in China, aiming at finding the most attractive employer brands in the country. The survey covered 10 main industries.

According to our findings, the top three desirable employers in each of these 10 largely remain foreign brands, such as IBM, Google, Apple and GE.

It's true that local businesses are growing vigorously, which may cause the flow of talent away from some foreign companies. But we can't simply conclude that foreign firms are losing their attraction for domestic talent.

Yuan: It's normal that some foreign companies find it harder to recruit talent in China. Fewer Chinese college graduates consider working for MNCs these days, partly because these firms now offer less job opportunities here. College graduates' expectations of MCNs are lowering.

As for Chinese executives, foreign firms' attraction is also declining, especially when China's own businesses are witnessing vigorous transformation. More than a few Chinese managers now feel working for local firms more challenging and thus more interesting. New indigenous firms are able to give greater decision-making power to these executives.

GT: Is the so-called glass-ceiling effect the primary drive behind the talent flow from foreign companies to Chinese firms?

Yuan: I think the flow is related to MNCs' limited concentration on human resources. In recent years, many local firms have done a much better job in this regard. Some indigenous businesses have also outshined their foreign counterparts in publicity. Nowadays it is largely local CEOs who actively give open lectures and actively engage with college students and employee candidates. If a Chinese youngster needs to choose between Alibaba and eBay, he may choose the former, because Alibaba's head Jack Ma has become an icon among young Chinese.

MNCs' China recruitment policy appears rigid. For instance, when recruiting managerial candidates, many only target graduates from well-known colleges, making up a mere 5 percent of the labor market.

Local firms are well aware that graduating from a famous school may only mean someone is good at taking exams.

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