Embed Size (px)
Citation preview
© 2006 Management Recruiters International, Inc. An Equal Opportunity Employer. Each office is independently owned and operated.
YOUR Unique Operating Identity Logo Lock-Up
Managing Talent in China: Pitfalls and Challenges
Erica Perry Briody, Director
February 21, 2008
2 © 2006 Management Recruiters International, Inc. An Equal Opportunity Employer.
Current Scenario
• China’s economy grew 11.4 percent in 2007
• Growth expected at 8 -10 percent in 2008*
Pressures impacting HR:
• Find faster and easier ways to populate databases with a qualified talent pool
• Improve communication through integration of the talent acquisition process
• Need to compete with companies to source top talent
• Gain access to targeted attraction channels, open internet boards and private talent portals
(*According to the USCBC )
3 © 2006 Management Recruiters International, Inc. An Equal Opportunity Employer.
Key Talent challenges facing MNC’s in China?*
• Talent acquisition
• Talent retention
• Talent compensation
(*According to the USCBC )
4 © 2006 Management Recruiters International, Inc. An Equal Opportunity Employer.
Critical question keeping your CEO up at night is:
How to identify and retain the next generation of leaders?
5 © 2006 Management Recruiters International, Inc. An Equal Opportunity Employer.
The 5 processes of Talent Acquisition:
• Planning
• Sourcing
• Assessing
• Hiring
• On-boarding
6 © 2006 Management Recruiters International, Inc. An Equal Opportunity Employer.
Does your company have a “talent mindset”?
Best performing companies distinguish themselves by
leveraging: Market intelligence
Technology
Assessments
Outsourcing
Creating long term strategic plans that enable them to effectively source and assess candidates
7 © 2006 Management Recruiters International, Inc. An Equal Opportunity Employer.
Evaluation
Do you
• align the Talent Acquisition Strategy with the company business goals?
• have the market intelligence to determine the strategy?
• measure workforce performance based on quality of hire over cost per hire and time per hire?
• use technology solutions?
• use a long-term talent acquisition plan?
• pro actively data-mine and map out the market to determine the size of your talent pool and know the interest level of your company as an “employer of choice”?
8 © 2006 Management Recruiters International, Inc. An Equal Opportunity Employer.
Which Category represents your company?
Need Improvement Category Average Category Best In Category
Process Reactive, emergency-driven; none or little long-term staffing planning
Annual staffing plan for anticipated resourcing needs
Yearly hiring management plan covers all hiring levels; includes contingent plans for unanticipated hiring needs and succession planning
Organization Struggle to align the talent acquisition strategy to the overall strategy of the company
Working to align talent acquisition to the overall strategy of the company
Strong employee focus – nearly all of these organizations align their talent acquisition strategy to the overall strategies of the company
Knowledge Paper-based methods to source and assess candidates
Transitioning between paper based and automated services
Automation is used to source and assess candidates
Technology Many still use paper based applications and view assessments as a priority but still face cost restraints and a lack of automated systems
Moving towards an automated system for both assessments and sourcing tools
Invest in some or all of the following: in-house or externally hosted tools to ascertain competencies, external job boards, company career sites, online assessment tools
9 © 2006 Management Recruiters International, Inc. An Equal Opportunity Employer.
Key Performance Indicators: How do you measure success?
Quality of Hire
Cost per hire
Time to hire
Job vacancies outstanding
Time from job requisition to offer acceptance
Average new hire tenure
10 © 2006 Management Recruiters International, Inc. An Equal Opportunity Employer.
Talent issues in China*
• China needs 70,000 new corporate leaders for international operations in the next five years
• Currently only 20% of CEO’s in China are mainland Chinese
• Over 50% of HR professionals in China think their current leadership program is below average
• Only 11% of executives in China think they can retain top talent
*DDI
11 © 2006 Management Recruiters International, Inc. An Equal Opportunity Employer.
The Key Challenges in Talent Acquisition
12 © 2006 Management Recruiters International, Inc. An Equal Opportunity Employer.
Talent Acquisition Solutions
Conduct market intelligence reports - map out the market
Improve employer brand and align USP's
Improve pre-assessment tools / Implement Mandarin
language assessments
Planning and managing the sourcing and hiring process
efficiently with pre set timelines
Create an automated talent pool of active and passive
candidates
Emphasize strategic long term workforce planning and outsource time consuming
functions
13 © 2006 Management Recruiters International, Inc. An Equal Opportunity Employer.
ACQUISITION: Be prepared in how to attract the best “Senior Level Talent” in China !
• Develop and consistently communicate the company’s unique selling points and vision
• Confirm with all parties the position’s requirements and scope. The “must have” and “nice to have” skills
• Determine who must be involved in the process and why
• Develop pre-set dates of availability for all involved in the interview process
• Pre-approval for compensation and benefit variances
14 © 2006 Management Recruiters International, Inc. An Equal Opportunity Employer.
ACQUISITION: Be prepared in how to attract the best “Senior Level Talent” in China !
• Update your line managers interviewing techniques
• Condense your hiring cycle to less than 30 days
• Have HR or your Search Firm engage in a “pre-close”
conversation
• Set up weekly contact with the newly hired candidate to prevent the “counter offer”
• Deliver what you promise in the interview!
15 © 2006 Management Recruiters International, Inc. An Equal Opportunity Employer.
Retention: Why Staff Leave or Stay
More stability and security
Better training and personal development opportunities
Lack of growth and development opportunities
Better career opportunities
Better benefits
Better compensation package
16 © 2006 Management Recruiters International, Inc. An Equal Opportunity Employer.
Retention: Why Staff Leave or Stay (continued)
Better work/life balance
Opportunities to use and improve upon existing skills
Social and community commitment
Strong training and personal development opportunities
Stronger Employer Brand and USP's
Established career track plan with timelines
17 © 2006 Management Recruiters International, Inc. An Equal Opportunity Employer.
Retention: Besides having strong leadership as the key to gainingemployees’ commitment; how do we retain the best talent in the midst of the “War for Talent” in China?
• Understand and adapt your position in the market relative to your talent competitors
• Develop a consistent leadership development program that involves overseas training and / or advanced education opportunities
• Understand your own employer brand and develop a clear employer brand strategy
• In China you must pursue your staff to confirm you are meeting their needs regarding their career
• Develop long term financial incentives that make it more difficult for a team member to leave for financial reasons
• Develop a “market map” of the talent for your key functions so that you have an ability to respond quickly to sudden management changes
18 © 2006 Management Recruiters International, Inc. An Equal Opportunity Employer.
COMPENSATION: What are the current contributors to the dramatic increases in Compensation?
• Supply and Demand
• Continuing influx of new companies to China
• Expanding needs of established players who are seeking to attract top level talent
• Candidates becoming more sophisticated in their approach to job changes
19 © 2006 Management Recruiters International, Inc. An Equal Opportunity Employer.
COMPENSATION: What are the current contributors to the dramatic increases in Compensation?
• MNC seeking out the top 20% of available talent is putting further constraints on the talent pool
• The trend of “upgrading” talent is continuing
• Hiring cycles can take 8 -12 weeks during which time the candidate often interviews with multiple companies to evaluate opportunities and compare compensation
• This has an inflationary effect at times and often forces the
company to raise their offer to attract the candidate
20 © 2006 Management Recruiters International, Inc. An Equal Opportunity Employer.
China: Looking Forward
• A further tightening of senior to mid-level talent for at least the next 12-24 months
• Compensation trends to increase at 30% for candidates moving from one MNC to another
• Larger MNCs will struggle with tight compensation bands
• Operational execution inhibited by long hiring cycles and prematurely promoted talent
• “Localization” of talent will continue but companies will be forced to hire expensive expatriate talent to fill in the gaps
21 © 2006 Management Recruiters International, Inc. An Equal Opportunity Employer.
Which Category represents your company?
Need Improvement Category Average Category Best In Category
Process Reactive, emergency-driven; none or little long-term staffing planning
Annual staffing plan for anticipated resourcing needs
Yearly hiring management plan covers all hiring levels; includes contingent plans for unanticipated hiring needs and succession planning
Organization Struggle to align the talent acquisition strategy to the overall strategy of the company
Working to align talent acquisition to the overall strategy of the company
Strong employee focus – nearly all of these organizations align their talent acquisition strategy to the overall strategies of the company
Knowledge Paper-based methods to source and assess candidates
Transitioning between paper based and automated services
Automation is used to source and assess candidates
Technology Many still use paper based applications and view assessments as a priority but still face cost restraints and a lack of automated systems
Moving towards an automated system for both assessments and sourcing tools
Invest in some or all of the following: in-house or externally hosted tools to ascertain competencies, external job boards, company career sites, online assessment tools
22 © 2006 Management Recruiters International, Inc. An Equal Opportunity Employer.
Steps to Success
Need Improvement Category• Improve the Employer Brand• Move away from paper based manual system to implement an
automated system that will provide a faster and easier way to source and assess candidates
• Create a “talent mindset” so that the talent acquisition strategy is aligned to the overall strategic plan of the company
Average Category• Invest in assessment tools / improve assessment capabilities• Plan for the Future• Use an automated system to create a talent pool of both active and
passive candidates
Best In Category• Integrate sourcing and assessment processes with the other
processes of talent acquisition• Social cohesion and community commitment
23 © 2006 Management Recruiters International, Inc. An Equal Opportunity Employer.
Solutions to Challenges and Pitfalls :
• Be pro-active in identifying and assessing candidates
• Map your talent pool to build your database
• Be open minded to partnering with a RPO/RPM firm to assist during peak periods
• Find out what candidates are being compensated and how they view your employer brand
• Assess the competencies of your internal team to match against future open requisites
• Constantly re-evaluate the succession plans
Market intelligence formulates your future strategy for positioning your company!
24 © 2006 Management Recruiters International, Inc. An Equal Opportunity Employer.
MRI China Group
• One of the largest and fastest growing executive search firms in China with over 1000 assignments completed annually in the last 2 years
• 11 Offices in Asia / Head office in Hong Kong. Research and Data mining centers in Manila and Chengdu
• Over 200 staff across the group covering most major industry sectors such as Banking, IT, Telecoms, Chemicals, Manufacturing, Property, etc
• Major Services: Executive Search, Recruitment Process Management, Talent Mapping Analysis and Data mining
• “Recruitment Firm of the Year, China” in 2003, 2005 – 2007 • Established Tal-os Asia with Barkers Resourcing to support
our clients with volume hiring projects, Talent Market Analysis and Recruitment Process Management / RPO
25 © 2006 Management Recruiters International, Inc. An Equal Opportunity Employer.
Objective:
• Receive your opinion on how the economic conditions in the U.S. will affect companies in Asia
Summary of Results:
• Companies trading with the US expect fewer orders
• Companies with operations in China expect increases in operational costs
• Companies with U.S. HQ expect a freeze in operation expenses and potentially hiring needs
• 90% of respondents expect salary increases to be below 10% in 2008
• Finding the “best quality” candidates is CRUCIAL to the success of companies in Asia
Talent Market Research by Tal-os Asia
26 © 2006 Management Recruiters International, Inc. An Equal Opportunity Employer.
THANK YOU
