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Are Foreign Firms becoming Less Attractive to Chinese Employees?

BritCham / CBBC
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As Chinese companies start to raise their profile domestically and internationally, China Daily reports that positions at foreign firms are becoming less attractive to Chinese employees.

Based on a report undertaken by Korn/ Ferry International analysing talent management, over the past 18 months a growing trend has seen many Chinese employees move away from multinational corporations in favour of positions at Chinese firms. Graduates, managers and executives are being lured away with generous compensation packages, increased decision-making power, and a faster career track.

The last ten years have brought huge changes to the corporate structure of many large Chinese companies. Nowadays, domestic businesses are offering similar benefits as their international rivals, which has resulted in the so called ‘poaching’ of managerial talents by domestic companies. Alongside this, with an increasing number of Chinese companies going public, joining a pre-IPO company on speculation of the future benefits it may bring is also a strong pull for many of these workers.

The global recession is also contributing to undermine the competitiveness of foreign firms. Employees are facing shrinking salaries and lack of bonuses, as well as the possibility of redundancy as big firms seek to cut costs. In contrast, domestic companies are viewed as offering stable positions and pay, especially those that are government owned. Jobs in domestic companies are also perceived allowing for a greater work- life balance.

Despite this, many still point out that job-hopping is extremely common in China and it is not unusual for workers to seek out opportunities elsewhere. Many doubt whether this can truly be called a trend, especially considering that whilst many state-owned companies do seek to recruit those with managerial experience in multinational companies, the successful cases are limited because of differences in corporate culture.

Souce: China Daily

Korn/Ferry China Talent Management Landscape Report

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