HROTodayGlobal

The APAC Report challenge because of the shortage of talent and the sheer size of the numbers of people that these companies must hire," says Hans Jan Wijsma, country managing director, China at Lumesse, a talent management software provider. He is not alone in this view of the need to recruit beyond China's borders. "Local hiring remains a key focus, but with a small talent pool for niche skills, and limitations generally on skill levels, many leading Chinese companies are learning there are not enough candidates with ready-made experience," says James Mendes, managing director, Asia for Futurestep, a strategic talent acquisition firm. This experience, he adds, must be found somewhere else, and soon, given the dynamic economy. China, in particular, is struggling with the English language on a talent management level. A 2011 report by GlobalEnglish titled the indicates that out of 11,000 Chinese employees in top global organizations the average BEI was 5.1 out of 10. To put that into perspective, a BEI score of 5.0 or lower translates into a workforce that can understand only basic information on the telephone or in person, but cannot understand most business presentations or take a leadership role in business decisions, according to the online learning company. Small wonder that China is eyeing talent across the globe. Acquiring that talent is a different challenge altogether. "With the value of talent at a premium, companies are having to use innovative methods to engage potential candidates and referral sources well in advance of hiring needs," Mendes maintains. "While the use of recruitment technology is at an early adoption stage, we are seeing increased momentum." Coming Home Where will China's talent come from in the future? Given the cultural and language impediments, if requisite talent cannot be accessed locally it will likely first be solicited from other Asia-Pacific countries, particularly those with people who can speak Mandarin. Paul Daley, director, Asia Pacific, in the Hong Kong office of recruitment provider Ochre House, cites Singapore as a country with many Mandarin speakers who are eager to hire on at Chinese firms. This, ironically, has actually fostered a void in Singapore talent locally, he notes. Wijsma is similarly aware of companies in China that target well- educated Chinese people living abroad, such as Americans of Chinese ancestry, especially for senior positions. "I know of Fortune 500 companies that place advertisements in Chinese in American newspapers to draw top talent back to China," he says. "The war for talent is definitely on here." For many individuals, a job in China can be a significant career steppingstone. "Many individuals are moving from the West to the East, since the job market in Asia is generally more favorable than in the U.S. and Europe," says Mark Ellwood, managing director, Asia (ex. Japan), at recruitment consultancy Robert Walters. "Many organisations are looking to expand in Asia, and people know there are opportunities that could translate into a good career move." Another factor in the migration of talent is cost of living. "Western currencies have generally depreciated against Asian currencies, and the expense of a move combined with generally lower tax rates makes Asia, and particularly China, an attractive place to work," Ellwood notes. "Depending on their personal circumstances (read: marriage and children), more people are open to an international career than 20 years ago." Nevertheless, as international businesses become established in China, the risk arises that they may remove the ex-pat talent and replace it with local hires. As Daley explains, "This is, in part, a drive to reduce costs, but also a recognition that to be sustainable in the future, local talent will be required." Until that inflection point is reached, Chinese companies and multinationals serving the region are leveraging an innovative array of recruitment methods to acquire the best and the brightest—from here, there, and pretty much everywhere. And although recruitment process outsourcing (RPO) has suffered a mixed reputation in China, as it implies project recruitment rather than a long-term career, Daley says more than a few recruitment agencies in China have started offering RPO services. The downside, he adds, is that few of them "have the necessary consulting, client engagement, project management, and change management capabilities to deliver an effective solution." Nevertheless, Mendes believes the market opportunity for RPO is significant. "Although RPO adoption in China still lags behind that of USA and Europe, the growth prospect remains high, and appetite is increasing," he says. Others share this view. "The industry has developed enormously in the last few years, and while there is still a tendency to refer to RPO interchangeably with 'project type' recruitment, this is evolving," says Simon Bell, general manager, RPO and talent management for Hudson Talent Mangement Asia. "There are now some progressive multi-country solutions with the systems, policies, and governance underpinning the model to deliver on the RPO promise. And there is growing sophistication from buyers looking for how the RPO model can be leveraged to drive increased productivity, retention, and performance from the workforce." Jobs For Hire The talent recruitment process in China is not very different from elsewhere. "Internally, many organisations pull their functional heads together, as part of overall business strategy sessions typically led by HR, to identify talent gaps to meet their business goals," says Kenneth Kwek, senior vice president and general manager, in the Singapore office of Asia Pacific Cartus, a global relocation solutions provider. "Organisations may also conduct regional or global talent trades within their own companies in an effort to fill foreign assignments." Another practice is to develop high-potential employees within an organisation to take on future roles worldwide. Campus hires are often sent to key locations to take training, and then "parachuted into locations where talent is needed," Kwek says. He cites the example of a China-based life sciences firm that recently sourced bioengineers from Eastern Europe and then moved them to the firm's Singapore- based research and development center to fulfill various assignments. [26] HRO TODAY GLOBAL | FALL 2011 Business English Index

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