Category Candidates & Labor market

Foreign training key to Chinese success

Duncan Mavin, Financial Post
Published: Thursday, October 04, 2007

In China’s red-hot recruitment market, business professionals are desperate to get ahead of the competition, with qualifications and overseas experience among the most sought after resume credentials.

‘Returnees,’ Chinese workers who have spent several years honing their business skills abroad, often have their pick of the best jobs, as does any Chinese executive with foreign training.

It’s a trend that is leading to a wealth of opportunities for Canadian organizations able to provide the right kind of training.

“It’s still a small part of our business, but it’s been growing nicely in the past three years,” says Roberta Wilton, chief executive officer of CSI, the Canadian Securities Institute.

At Toronto City Hall in August, for instance, twenty-eight Chinese executives became the latest graduates of the Canadian Securities Institute.

The business students from Guangfa Securities, a full-service securities firm based in Gaungzhou, China, graduated from a two-month course organized by CSI in conjunction with the Securities Association of China.

Hundreds of financial professionals from China have participated in CSI’s executive style training programs in the past couple of years.

But it isn’t the only organization to spot the opportunity.

Ads for the University of Western Ontario’s Richard Ivey School of Business are impossible to miss in Hong Kong, where they are plastered all over subways and other prominent places.

The Ivey school has a modern campus in Hong Kong — with a high-profile location in the heart of the Hong Kong Convention and Exhibition Centre — and another office in Beijing, as well as alumni associations in Shanghai and Hong Kong.

Schools from all over the world are catching on fast, says Pete Fiaschi, the head of international marketing at Newcastle College, a vocational school in the northeast of England that focuses on the business of arts, tourism and sports.

Toronto-born Mr. Fiaschi spends most of the summer months travelling through China, including to relatively unknown cities such as Fuzhou or Qingdao, recruiting 200 or so Chinese students whose fees are a significant source of income for the school. In July, he set up permanent regional offices in Beijing and in Dalian, in northern China, to deal with the growing competition for Chinese students.

CSI, too, has a permanent office in Beijing and is about to open a Shanghai office. It also has partnerships with Chinese universities, including the Central University of Finance and Economics in Beijing, and the Shanghai University of Finance and Economics.

There is competition among foreign training providers, says Ms. Wilton. In particular, many of the big foreign banks and securities firms offer training courses, as do the international consulting and accounting firms.

CSI is betting its North American perspective plus its access to trainers from a variety of real live businesses gives it an edge over some more academic institutions as well as companies that can only provide insight from one industry.

Offering courses jointly with the Chinese regulator also helps build credibility, which will lead to deeper inroads in China, says Ms. Wilton.

Executive hiring in Asia to accelerate in Q4 -Hudson

HONG KONG: Hiring by multinationals in major Asian markets is likely to accelerate in the fourth quarter, notably in Japan, a survey by executive recruitment firm Hudson shows.

Sixty-five per cent of managers at multinationals in Japan said they expected to increase recruitment in the fourth quarter, according to the survey released on Thursday, up from 60 per cent in a survey taken three months earlier.

In China, 64 per cent of respondents plan to increase headcount this quarter, up from 60 per cent in the previous quarter; in Hong Kong 54 per cent of managers expect to add staff, compared with 49 per cent in the last survey.

The survey by Chicago-based Hudson Highland Group Inc covered responses from 2,500 managers at multinational companies across industry sectors in China, Hong Kong, Japan and Singapore.

Expectations in Singapore remained unchanged from the previous survey, with 54 percent of managers seeing a need to hire more staff.

Fast economic growth has led to a shortage of executive talent in Asia. More than a third of employees in Hong Kong and Singapore leave a company within two years, according to the Hudson report.

In China, 52 per cent of staff leaves within two years, and 30 per cent of job candidates there are demanding salaries of more than 20 per cent above what employers are willing to pay, the survey shows.

Foreign training key to Chinese success

Duncan Mavin, Financial Post
Published: Thursday, October 04, 2007

In China’s red-hot recruitment market, business professionals are desperate to get ahead of the competition, with qualifications and overseas experience among the most sought after resume credentials.

‘Returnees,’ Chinese workers who have spent several years honing their business skills abroad, often have their pick of the best jobs, as does any Chinese executive with foreign training.

It’s a trend that is leading to a wealth of opportunities for Canadian organizations able to provide the right kind of training.

At Toronto City Hall in August, for instance, twenty-eight Chinese executives became the latest graduates of the Canadian Securities Institute.

The business students from Guangfa Securities, a full-service securities firm based in Gaungzhou, China, graduated from a two-month course organized by CSI in conjunction with the Securities Association of China.

Hundreds of financial professionals from China have participated in CSI’s executive style training programs in the past couple of years.

But it isn’t the only organization to spot the opportunity.

Ads for the University of Western Ontario’s Richard Ivey School of Business are impossible to miss in Hong Kong, where they are plastered all over subways and other prominent places.

The Ivey school has a modern campus in Hong Kong — with a high-profile location in the heart of the Hong Kong Convention and Exhibition Centre — and another office in Beijing, as well as alumni associations in Shanghai and Hong Kong.

Schools from all over the world are catching on fast, says Pete Fiaschi, the head of international marketing at Newcastle College, a vocational school in the northeast of England that focuses on the business of arts, tourism and sports.

Toronto-born Mr. Fiaschi spends most of the summer months travelling through China, including to relatively unknown cities such as Fuzhou or Qingdao, recruiting 200 or so Chinese students whose fees are a significant source of income for the school. In July, he set up permanent regional offices in Beijing and in Dalian, in northern China, to deal with the growing competition for Chinese students.

CSI, too, has a permanent office in Beijing and is about to open a Shanghai office. It also has partnerships with Chinese universities, including the Central University of Finance and Economics in Beijing, and the Shanghai University of Finance and Economics.

There is competition among foreign training providers, says Ms. Wilton. In particular, many of the big foreign banks and securities firms offer training courses, as do the international consulting and accounting firms.

CSI is betting its North American perspective plus its access to trainers from a variety of real live businesses gives it an edge over some more academic institutions as well as companies that can only provide insight from one industry.

Offering courses jointly with the Chinese regulator also helps build credibility, which will lead to deeper inroads in China, says Ms. Wilton.

Manpower first to land China approval to provide temporary-staffing help

After 13 years of building its business recruiting permanent workers in China, Manpower Inc. announced Wednesday that it is the first multinational corporation to receive a license to provide temporary-staffing services in the nation.

Milwaukee-based Manpower said that it, along with six Chinese firms, has been granted a license to supply temporary help to employers as part of a pilot program organized by the Shanghai Personnel Bureau.

Huge job losses in China over Mattel toy recall

The China Toy Association has announced that Mattel’s global recall of Chinese-made toys has had a huge impact on the industry, with many workers losing their jobs, but added the industry was not to blame.

China has been struggling to convince the world its products are safe after a series of scandals over a string of products from tainted pet food and drugs to tyres, toys and toothpaste.

In its second recall this month, the US’s largest toy company recalled millions of Chinese-made toys due to safety risks from magnets and lead paint.

Mattel warned it may recall additional products as it steps up testing.

The China Toy Association, representing manufacturers and suppliers, said the production of poor-quality goods was not deliberate.

“The industry itself did not mean to produce poor quality goods and paid a heavy price for its mistakes,” the association said in a statement.

“Most of the employees will have to leave factories they have been serving at for many years and are facing unemployment or re-employment problems.

“This has had a huge impact on the industry and society. The recent recalls were instigated by foreign brands. Nobody was injured.”

It also blamed “unobjective whipping up of public opinion” for the troubles which “certainly led to excessive worries for domestic and foreign consumers”.

It added that no companies had considered shifting orders elsewhere.

Carrefour China lets staff set up trade union

Retailer Carrefour yesterday announced the opening of a trade union to cover its five outlets in the city. The organization, which is the company’s first in Guangdong Province, will have a branch in each outlet and represent some 590 employees. It will be chaired by Li Wenkai, a department manager at one of the stores.

Pierre Bertholat, vice-president of Carrefour China, said: “We hope the union will play an active role in organizing activities and do its bit to contribute to an invigorated corporate culture and to the protection of the worker’s rights.” Joanna Meng, human resources director, said establishing the trade union was part of its localization strategy.

“Carrefour is witnessing a rapid expansion in China and we will step up efforts to set up trade unions in all of our outlets across the nation,” she said. Carrefour has opened 13 outlets in China this year, taking its total to 100, and plans to open a further 10 by the year’s end.

Zeng Fanqiang, trade union chairman of Guangzhou Development District, where Carrefour’s South China territory is registered, said the setting up of the union was a positive move. “I hope the union will aid Carrefour’s labor-management relations and unite employees,” he said.

More than 70 percent of the province’s 36,200 foreign-funded companies now have a union. Sixty-eight were set up last year. In addition, more than two-thirds of the multinationals represented in the province have established unions, with the remainder expected to do so by the end of the year.

Cisco China’s ‘management kindergarten’ aims to grow seasoned execs

China is a red hot market for Cisco, which saw its second-half sales in Hong Kong grow more than 35% from a year earlier, reports the South China Morning Post. But the country is suffering from a lack of experience managers to lead the hi-tech firms – including Cisco – that have set up facilities there.

Businessweek is reporting on Cisco’s answer to the problem – grow managers from within by instituting “management kindergarten” programs. Businessweek cites Cisco’s Shanghai research center, where the average age of workers is 27, as an example of a unit that is offering such a program.

Quoting Jan Gronski, managing director of the Shanghai facility, and her No. 2 Chris Dong, Businessweek writes:

Gronski and Dong have opened “Cisco Clubs” at three Chinese universities, giving students a chance to work with Cisco engineers. For those on staff, Gronski runs management seminars every Thursday. He schools young managers on everything from giving presentations and decision-making to speaking their minds.

Some readers of the article think that Cisco will still churn out inexperienced managers. But what’s the difference between this program and other “management trainee” programs offered by companies in the west?

Shenzhen eyes top overseas talent

The government of the southern boomtown of Shenzhen bordering Hong Kong plans to hold job fairs in North America, Europe and Australia next year to attract top professionals.

Although the move has not been well received by some residents, it has gained the support of overseas returned Chinese and human resources organizations.

“It’s very positive. It is a goodwill gesture by the government toward foreigners, especially Chinese people working or studying abroad. It will also help companies attract quality candidates,” Ouyang Hui, director of the talent research center of ChinaHR.com, told China Daily.

William Zheng, a special counsel with US law firm Sheppard, Mullin, Richter & Hampton, said the government of Shenzhen has created a good opportunity for companies.

“A growing number of Chinese companies are setting up subsidiaries abroad or acquiring foreign companies. They are in great need of senior foreign executives who are not only good at business, but also know the local accounting rules and laws,” Zheng said.

The Chinese-American began working in China in 2003.

“Government-sponsored job fairs have more impact on foreign communities and attract top professionals, more so than individual companies,” he said.

According to the Shenzhen office for introducing foreign talents, the city has held job fairs in the United States, Canada, Europe and Hong Kong since 1992. It was the first Chinese mainland city to hold such fairs.

“The fairs have proved successful in attracting overseas professionals,” Yin Shaowen, deputy director of the office, said.

The number of overseas returned Chinese surpassed 10,000 in June this year, Yin said. Some of them have set up companies in the city with start-up funds from the government.

“To encourage these people, the government raised the start-up fund for a single project from 150,000 yuan ($20,000) to 300,000 yuan early this year,” Yin said.

According to official figures, the city has attracted more than 150,000 overseas technicians and executives in the past 20 years. In the past two years alone, 72,000 have settled in the city.

Mayor Xu Zongheng said the government would soon launch a series of campaigns to make the city a most attractive destination for foreign professionals.

Do China and India Produce A Million Engineers?

By Melinda Liu and Sudip Mazumdar
Newsweek International

Aug. 20-27, 2007 issue – Earlier this year, students would show up for class each day at the Jalpaiguri Engineering College in West Bengal—and find no teachers. The Department of Electronics, Computer Science and Information Technology had just one full-time teacher (it’s supposed to have 20). Finally, in May, the students—who faced impending exams despite having had no instruction—went into the streets to protest. Eventually, the government announced it would enlist teachers from other schools. But that proved easier said than done: when administrators went looking for recruits at one of India’s oldest educational institutions, the Bengal Engineering and Science University (BESU) in Kolkata, they found that it couldn’t spare any teachers—it didn’t have enough of its own.

Wait a second: this isn’t what the picture is supposed to look like. For years, pundits and the press have been warning that the millions of engineers and scientists India and China produce each year would soon challenge the United States’ technical superiority. Just a few months ago, the London-based think tank Demos warned in a report that “the center of gravity of innovation has started moving from the West to the East,” and that China could become a “scientific superpower” by 2050. Indeed, the raw numbers are impressive. China cranked out more than 600,000 engineers in 2005 alone, and India produces nearly 500,000 technical grads annually.

But these stats only tell half the story. Many of the graduates can’t find work, and corporate recruiters in both countries lament a dearth of qualified applicants. “Out of the huge number of engineering and science graduates that India produces, only 25 to 30 percent can be regarded as suitable,” says Kiran Karnik, head of the National Association of Software and Services Companies. The reason? Underfunding and a range of other factors have produced serious educational crises in India and China. These problems could soon wreak havoc on their economies. To sustain their breakneck growth, the countries will need lots of high-quality engineers and scientists. Yet neither have enough reliable universities to produce them. M.A. Pai, who taught at the prestigious Indian Institute of Technology in Kanpur, warns that the “lack of highly trained people at the Ph.D. level in both sciences and engineering will be a serious setback to India becoming a knowledge economy.”

For China, the problem can (at least in part) be traced back to the Cultural Revolution, when ultraradical Maoists paralyzed universities. Many students and instructors were shipped off to farms—if they didn’t wind up in “re-education” camps. Higher education started to rebound in the 1980s, and in the 1990s Beijing launched an ambitious program to expand college enrollment. But in the process, standards slipped. “Once you get in, it’s [too] easy to graduate,” says Prof. Mao Shoulong of Renmin University.

Experts also complain that Chinese schools emphasize rote memorization, which often “detracts from the quality of education,” says Mao, who believe China’s system fails to teach practical applications or to instill creativity. “That’s why students in the United States might not have good marks in class but can produce effective missile technology, while students in China enjoy good marks in class but might not be able to make sufficiently good missiles,” he says.

Chinese universities also face another common problem: poor funding. Many schools must now support themselves largely on tuitions. “This makes some of them lower their enrollment standards,” says Prof. Chu Shulong of Tsinghua University. And the model just doesn’t bring in enough cash. At U.S. universities, tuitions run into the tens of thousands. “But in China it might be one twelfth as much,” says Mao. Thus while many U.S. students enjoy comfortable dorms, students in China have to share cramped and poorly maintained facilities. Many colleges are also short on equipment, labs and classrooms.

India faces similar deficits. Pay for university teachers is pitiably low (it starts at about $400 a month), especially compared with what they could make in the private sector (more than $10,000 a month). As a result, says Madhusudan Datta, an economist at Kalyani University, “talent gets soaked up by lucrative offers from industry.” To make matters worse, India’s educational establishment (like China’s) is far too rigid. A recent example from BESU is revealing. A few years ago, science teachers there began keeping their labs open around the clock so enthusiastic pupils could drop in at any hour. Their students responded in droves and a more relaxed atmosphere began to prevail, with students sometimes showing up in shorts—a common sight in the West but comparatively rare here. After several years of this experiment, however, the administration abruptly ordered labs to return to their normal schedule and mandated that students must wear trousers, shirts and shoes on campus. “It seemed as if the dress code was more important than rigors of study,” says Biplab Kumar Sikdar, an assistant professor of computer science.

Adding to India’s problems is a conspicuous lack of vision amongst the bureaucracy and corruption at every level. “All this has affected the quality of our technical education,” says Sikdar. One result: despite the large number of new graduates India rolls out each year, it only produces about 50 Ph.D.s in computer science, about the same number as an average public university in the United States.

To meet their rapidly growing demands for trained manpower, more and more top companies in both states have begun taking matters into their own hands, creating in-house training programs. In China, the trend was kicked off by Microsoft years ago. And in India, Infosys leads the way with 16-week comprehensive training courses that cost the company nearly $5,000 per employee. “The biggest challenge for India today and going forward will be how to create a skilled work force,” says T.V. Mohandas Pai, an Infosys board member focused on human resources. “And the government is not waking up to this fact.”

In fact, Delhi and Beijing are slowly moving in the right direction. In India, industry and scholars recently persuaded the government to ask two state education bodies to recommend ways to improve the country’s high-tech and science programs. And in China, authorities have launched a drive to boost the reach and sophistication of technical training schools. Yet getting either country up to speed will be an enormous task. Which means the West can rest easy, at least for the moment—neither India nor China will leapfrog ahead anytime soon.

40% top Chinese students choose to study abroad

About 40 percent of the top students in college entrance examinations have chosen overseas universities for their postgraduate studies, according to a survey.

Most of them have stayed overseas after finishing their intended courses, showed a survey that tracked 130 top performers in college entrance exams from 1977 to 1998.

Dubbed zhuangyuan, which means top contestants in the imperial examinations in feudal China, these students have been lauded by the media as examples for their younger peers.

The survey, released on the China Alumni Association website, found it worrying that many of the top students would not stay in China for higher studies despite the country’s rapid development in the past few decades.

The government should find better ways to hold back talented students, said Cai Yanhou, a professor with Central South University in Changsha, capital of Hunan Province.

UNESCO figures show Chinese students comprise 14 percent of international students, the highest in the world. Their favorite destinations for higher studies are the US, Britain and Japan. Some experts said handsome scholarships, better job prospects and more opportunities to pursue further studies are the main attractions of foreign universities.

But Cai, who also led the survey team, said “top in exams” does not necessarily mean “top in career” because the study found none of the top students at college entrance exams had become a top Chinese expert or academic.

The entrance exam is just one of the numerous exams a person will go through in his life and that can’t foretell his future achievements, said Wang Xuming, a spokesman for the Ministry of Education. He criticized the media hype over the so-called zhuangyuan.

Some of them are just more adaptable to exam-oriented education than their peers, experts said.

The media fill pages and time slots with their “success” stories to gain wider readership and viewership. High schools promote their former students proudly to attract new ones, and universities want to show their superior status by recruiting them, they said.

Wang hoped future reforms would do away with the score-oriented method so that students can be judged from all aspects.

China Daily – Xinhua