Category Working in China

IT salaries to go up in China, Singapore

By Vivian Yeo, ZDNet Asia
Wednesday, July 19 2006 11:34 AM

update Companies in the IT and telecoms (IT&T) sector across Asia, particularly China and Singapore, expect to offer higher remuneration this quarter, according to a new report from human resources agency Hudson.

Nearly 2,400 key employment decision makers in China, Hong Kong, Japan and Singapore were surveyed for the report, according to Hudson. Respondents were from companies in six industry segments: IT&T, banking and professional services, consumer, healthcare and life sciences, manufacturing, and media, public relations and advertising.

The report, released Tuesday, noted that 82 percent of IT&T companies in Singapore anticipated salary increases during the third quarter of 2006. Of these, 44 percent said they were expecting to hand out increases of 5 percent or more.

Lynne Ng, general manager at recruitment agency Adecco, agreed that salaries are climbing in Singapore’s IT industry. Brisk hiring activities can also be expected and IT professionals will likely be encouraged–by this environment–to change jobs, she added.

In China, 5 percent of IT&T companies forecast a salary raise of more than 15 percent, the highest among the six industry segments. About 57 percent of those polled expected to hand out increments of between 5 percent and 15 percent, while another 18 percent predicted pay raises of under 5 percent.

Salary sentiments, however, were not as positive in Hong Kong. Respondents forecast minimal or no pay increases, where 69 percent indicated that salaries would remain the same, while 31 percent said pay raises will be less than 5 percent.

On the bright side, the employment outlook in the IT&T sector remains buoyant for all China, Hong Kong and Singapore, noted Hudson.

The hiring trend for all job functions remains positive across the sector this quarter, according to Hudson. This is notably so in Hong Kong, where 62 percent of respondents anticipated a headcount growth in the third quarter, compared to 38 percent during the same period last year. The demand for new hires was expected to be particularly strong in “development and sales roles”, Hudson added.

In Singapore, 54 percent of IT&T companies planned to hire new staff, up from 49 percent during the third quarter of 2005, while 57 percent of Chinese IT&T companies also intend to increase headcount, a slight increase from the previous quarter. Although the hiring forecast for the IT&T industry in China is one of the lowest among the six sectors, the Hudson report noted that expansion in the other sectors will help drive demand for new IT projects.

In addition, the demand for IT specialists–regardless of industry sector–is strongest in Singapore at 21 percent of the estimated increase in headcount. In the report, Hudson attributed this demand to “Singapore抯 rapid development as a regional hub for companies’ IT operations”.

In China and Hong Kong, 3 percent and 8 percent, respectively, of the overall increase in new hires for the IT&T industry will go to IT professionals.

Andrew Sansom, director of DP Search, a recruitment agency specializing in the IT and finance industries in Southeast Asia, told ZDNet Asia in an e-mail that the strong hiring outlook now means both prospective candidates and employers have a bigger basket to pick from.

“Job seekers have more choice now, for sure, but [the growth is] still well short of pre-2001 levels,” he said. “Hirers are very choosy and won’t recruit just to fill headcount. They expect to see more resumes now than before, and take longer to make decisions.”

Companies in the banking and professional services industry indicated the highest level of hiring activity, and is consistently ranked first or second in China, Hong Kong and Singapore, in terms of expected increase in headcount.

Signing Expat Labor Contracts in China

By Adam Ehrlich

Expat Labor Contracts: Be aware before you sign on the line that is dotted.

Living and working in a foreign country can be a daunting endeavor – the native language is not your own and you are thousands of miles/kilometers away from your family/friends. So, I think it’s natural for an expatriate to look to and depend on its Shanghai employer as a source of comfort and assistance. It is reasonable to believe that your Shanghai employer understands your vulnerable situation and will shield you from predators that feed off the naive that venture into Shanghai from foreign lands. But, when the employer is actually one of the predators, your Shanghai adventure may soon be over.

So how could you avoid problems with your employer and what do you do now if you have one? If you are contemplating signing or have signed a contract, here are a few tips….

1. Insist on signing ONLY an English-language copy. If the prospective employer balks at this and explains that it is illegal to only sign an English version, you should try to convince them that that is not true. In China, you can be legally employed with signing an English-only version. But, if they insist, it is OK to sign a Chinese version, but DO NOT sign a Chinese-language contract without simultaneously signing a purported English-language copy. When signing the Chinese version, you should add a note near your signature that you do not understand Chinese and as a result are unaware of the contents of that version. The fact that the company provided the translation should influence a judge to lean in your favor with any discrepancy between the two versions.

2. Make sure the language (the version you understand) in your employment contract is WATER-TIGHT. The employment contracts that I have seen from my expatriate clients are so poorly written it feels like I have to cup the contract with two hands for fear that it may slip through my fingers. Make sure someone who passed high school with a “C” average can read the contract through one time and understand it. It should be written in clear, basic English which can easily be translated into Chinese by an average-skilled translator, yet still have enough sophistication that a lawyer or judge can feel secure when reviewing.

3. Memorialize all subsequent amendments and insist an authorized company representative sign it. Often times, the employer wil lpromise to sign it but use delay tactics. Do not be lulled into putting this off. A signed writing is almost necessary for a China judge to enforce an employer’s promise.

4. If a promise is not delivered, make a written demand with a time-certain a reply must be received (should be 10 days or less). The establishment of the date a written demand made is crucial to enforcing your rights within the China Labor Arbitration system.

If you cannot settle the dispute with your employer, then you can file a petition with the Labor Arbitration Bureau. It sounds like a scary place to be, but it can be surprisingly pleasant, even for a foreigner.

But before you can have your case heard, you must have these things:

1. Signed and notarized Labor Arbitration Petition(notarized by the Shanghai notary office);

2. Alien Employment Permit (it looks like a passport which your employer must give you in order for you to legally work in China)

3. Labor Contract (whichever versions were signed must be submitted).

You will submit these to a clerk of the court. This is not a simple, perfunctory step. The clerk (through the Review Committee) actually has the power to refuse your petition for either procedural or substantive reasons. If the clerk accepts your petition, then it will set a preliminary hearing date about two weeks later. This date is important because the judge must issue a decision within about three months of that date.

Most expats believe that pursuing a case in court requires thousands of dollars in legal fees and expenses (especially in litigious countries like the U.S.).This is not the situation here. First, a lawyer can pursue your case on contingency which means you don’t pay unless you receive money from the employer. You will need to expend some money up-front for translation and notarization fees, but it is relatively cheap ($500 is about average). But, if you receive a favorable judgment, it is possible for the court to award these fees to you in addition to the disputed amount (as long as there is no counter-claim, then it is highly improbable for the court to award expenses to the defendant).

If you don’t want to stay in China to battle in court, don’t worry, you don’t have to. The court will hear your case despite your absence in the country as long as you have a licensed China lawyer representing you. But you have to first sign, in-person, some documents with the Notary office.

The best advice I can give is to make sure the contract cannot be interpreted in more than one way which is the way you understand it to mean. If the employer violates an unambiguous promise, the judicial process should be swift and rewarding.

Your Spouse Headed to China? Do More Than Just Trail Along

By Perri Capell

Question: I’m a 50-plus marketing and training consultant, who will be going to China as a “trailing spouse” for six months this fall. While there, I need to work or acquire skills or knowledge that I can use on return. How I can I take advantage of this experience?

Answer: China is now a top expatriate destination, and 90% of companies surveyed globally expect to send as many or more expats there as they have recently, according to relocation-services company Cendant Mobility, a unit of Cendant Corp. of New York. That means that more professional spouses, such as you, may be seeking work.

This situation can be tough. World-wide, only 21% of trailing spouses and partners worked during a foreign assignment, even though 60% of them were employed before it, according to a survey conducted in 2004 by GMAC Global Relocation Services (GRS) of Woodridge, Ill.

The key to making the most of your stay is to get busy now. Start by taking Chinese language classes and cross-cultural training. Find out if your husband’s employer offers training. Ask friends and networking acquaintances to recommend books about China or international aspects of your field, and research the Internet about your destination city, which you said separately is Nanjing.

“Develop a mini-curriculum similar to an independent-study program,” says Lisa Johnson, director of consulting services for Cendant.

Gill Aldred, director of strategic services in London for GMAC GRS, believes your stay is too short for you to expect to secure full-time work. However, American corporate skills are scarce in China, and many Chinese employees accustomed to central controls lack U.S.-style initiative, says Ms. Aldred. Helping to train local employees in U.S. work styles may be an option for you, she says.

To find clients, tell all your current and past clients about your plans. Find out if any have subsidiaries in Nanjing and if you can provide training to their employees. Also use your network to gain referrals to managers of Nanjing-based companies. They may want to know how to market their products to the U.S.

If neither are possible, offer to research for U.S. companies how products and services are sold in China and how they might tap this market. “Let them know you’re going, and ask what initiatives they have in place,” says Ms. Johnson. “Ask if you can be a resource on the ground, doing research, training, or working with local trainers there.”

You likely will need a special visa or license to work in China, says Stephen Hincks, China manager in Shanghai for Fragomen, Del Rey, Bernsen & Loewy LLP, a corporate immigration law firm based in New York. There are visa and work permit issues you need to research.

If you learn from the China Immigration Department and Labor Bureau that an “F” visa isn’t right for you, you can enter China on a different type of visa and then file for a work permit and residence license, Mr. Hincks says.

If you can’t find work, make the six months an information-gathering mission by learning as much as you can personally and professionally, says Beverly L. W. Sunn, president of Asia Pacific Properties, a corporate real-estate and relocation-services company based in Hong Kong. “Probably, the most realistic expectation is to return home ready to articulate new knowledge about the country,” says Ms. Johnson.

Local expatriates have a lot to offer. Local expatriates have a lot to offer. Consider joining groups such as the American Chamber of Commerce and the American Women’s Club. You also can network by joining local professional groups, such as Chinese marketing or training societies. Offer to speak about corporate marketing and training at one of these groups or perhaps to business students at local universities.

Find ways to interview corporate marketers or trainers in Nanjing or observe them at work. “Look for companies that provide training for local Chinese trying to move ahead in an international career, since they will mostly offer training in English,” says Ms. Johnson.

Also consider teaching English or volunteering in hospitals or orphanages or for another cause. Take language, cooking, art or Chinese culture classes. Participate in activities that are part of the general culture, such as morning exercise sessions in a park, Ms. Sunn suggests.

Travel to China without preconceived notions, and be ready to change course if you find doors closed to you. Keep track of what you learn by writing a daily journal or letters to friends. Finally, don’t let professional demands keep you from sightseeing and enjoying this adventure with your spouse.

Why Young Expats Are Heading to China – The Drifters

Young expats looking for adventure and opportunity are being drawn to China, where the economy is booming, rents are cheap and skills in short supply.

By Ralph Jennings

May 4, 2006 – Jeremy Goldkorn spent six years hanging out in Beijing, drifting from job to job. He taught English for a while. He rode his bike through Tibet. For a year he worked at Beijing Scene, an entertainment magazine, until it was shut down a year later. He bounced between Beijing and Silicon Valley for a high-tech company, until it went belly up. By 2001, he had resettled in Beijing to start a bilingual entertainment magazine, which became Time Out, but quit after nearly a year “mostly because I wanted to do my own thing,” says Goldkorn, a 34 year-old South African. In 2002, Goldkorn helped start Standards Group, a Beijing advertising, Web-site and corporate video agency that now boasts lucrative blue-chip clients. “China is a superb place if you want to get your teeth into different types of creative work,” he says.

Goldkorn is not the only Western drifter to make good in Beijing. China seems to be awash in expats who seem content to drift from one job to another before landing something that catches their fancy. They are taking advantage of burgeoning demand for local-hire China hands with Mandarin-language skills in entertainment, media, finance, trading and other fields. At the same time, Western firms are looking to scale back on their longstanding practice of sending highly compensated expats to China with housing allowances and hardship pay. Instead, they’re turning to a labor pool of Westerners—estimated at 300,000—who have decided to settle in China, at least while the economy continues to grow and rents (one-bedroom apartments in Beijing start at $300 a month) stay cheap. “You’re in a market that’s growing at 10 percent a year, so there’s a market here for whatever you want to do,” says Kaiser Kuo, a musician and local magazine satirist who came here 10 years ago from the United States.

Until the late 1990s, China didn’t let foreigners stay long-term for much more than diplomacy, university study, or pre-arranged jobs with well-established foreign organizations. In the past five years, however, Beijing has relaxed visa restrictions in order to attract foreign investment and foreign staff for Chinese companies, from airlines to English-language newspapers. China’s liberalization of its so-called F visas—ostensibly for come-and-go foreign investors and company executives—has allowed more people to stay in China without formal jobs. Despite occasional rumblings of a crackdown on F-visa abuse, visa agents in Beijing say they can process the paperwork for six-month or one-year stays. Over the past five years, many cities have also scrapped rules requiring foreigners to live in designated high-end apartment complexes. As a result, the number of foreigners in China has increased fivefold, according to visa consultants and Chinese press reports. The biggest single group of expats are about 110,000 Americans, half of whom live in the two prime job centers of Beijing and Shanghai; the rest are scattered across the mainland.

Expats who speak Mandarin and offer specific technical skills are most likely to find work, according to Jim Leininger, general manager in the Beijing office of the human-resources consultancy Watson Wyatt Worldwide. They may land high-level finance jobs, which lack qualified Chinese applicants, or jobs in areas such as media and advertising that emphasize creativity and innovation, because the Chinese educational system has been “traditionally weak in these areas,” he says. Half the foreign companies in China plan to add expatriate staff, particularly specialists and middle managers, according to a study last year by Hewitt Associates, a British human-resources consulting firm. The maxim of many of these companies is “talent first, package later,” says the Hewitt report.

That’s good news to people like Seattle native Perri Dong, 40, who was having trouble finding a job after the dot-com bust had put a damper on hiring in San Francisco. His wife had done some work in China, so in 2001 they made the move to Beijing. Because his wife held a stable job, Dong could afford to “put in a little bit of investment” in building connections. He wrote a cooking column for a monthly magazine and cofounded a wine and cheese tasting club in Beijing. Then in December, he got his break: the American-owned importer ASC Fine Wines hired Dong as North America brand manager in its Shanghai office. “In the end everything came together,” he says, “I got a job that pays pretty well, and it’s in an industry that’s consistent with what I know. All the stars seem to be in alignment right now,” says Dong.

Xuer Khawa Dang, 33, had good luck as well. A U.S. citizen, she moved to Beijing in 2003 because China had grabbed her attention when she joined a women’s talent show in Chengdu in 2001. She worked for several Chinese and joint-venture companies, then decided to run her own business to capitalize on her familiarity with both China and the United States. Dang realized that she could profit from her passion for swimming. She had been informally buying waterproof strap-on MP3 players for friends in Beijing, so last year it hit her to ask the gear maker, California swimwear company Finis Inc., for China distribution rights. She now earns a living from MP3 player sales and tutoring four children in English. “After living in Beijing for two and a half years, I have to admit that I’m very content with the current lifestyle I have,” Dang says.

First jobs often include editing for Chinese state media or a public-relations firm, processing visa applications at an embassy or doing freelance work for local magazines. Garage musicians may get a few yuan for mentoring a Chinese rock band. Other expats live in bars and out of backpacks on noncareer incomes plus savings from home. Most study Chinese in their down time. The classic starter job is teaching English, sometimes at top universities (for some 4,000 yuan per month, or about $500) but often on hourly wages at private schools that want white faces more than educators. Brian Gottlieb, 29, who moved to China in 2001 because he’d been inspired by a Chinese couple who stayed with his family in Washington, D.C., picked up whatever jobs he could find on the side, writing for local publications or copy-editing English-language documents for Chinese enterprises. After working for several traditionally autocratic Chinese companies, he took an internship with the American consultancy APCO, which led to a full-time job.

Western companies favor long-term expatriates over local Chinese for jobs that call for bilingual skills skewed toward English, cross-cultural communication ability and problem-solving instincts, said Teresa Woodland, founder of the Wudelan Partners consulting firm and a member of the board of governors of the American Chamber of Commerce in the People’s Republic of China. She said local Chinese do not only always know how to talk with Western clients or have a “solution” mentality toward client queries. But Chinese hires are still cheaper. “The reason you’d want a foreigner is because they bring something different,” she said. Expat hires have increased with growth of overseas firms in China’s communication-intensive service sector, especially public relations, travel, moving and consulting, Woodland added. Ten percent of New York-based Ogilvy Public Relations Worldwide’s 120 Beijing employees are expatriates. Ogilvy hires foreigners who have found their own way to China, learned Chinese and want entry-level positions largely “because they want to be here,” said Scott Kronick, president of Ogilvy Public Relations China. The company still brings people into China for special expertise—the leader of its investor-relations team was brought in from the United States—but does not automatically pay them more than local-hire expatriates, he said.

The good times for expat drifters may not last forever. Chinese citizens returning from college educations overseas now have the English fluency, technical skills and low salary requirements required to fill jobs previously held by higher-paid expatriates. As with the dot-com phenom that propelled many expats here in the first place, the boom could end with a bust. For the time being, however, China is a good place to be an expat drifter.

© 2006 Newsweek, Inc.

Executives see China as place to boost career

Dallas Morning News, The (KRT) Via Thomson Dialog NewsEdge) DALLAS

Bobby Carter shows all the symptoms of China fever.

Each week, he meets with a private tutor to learn Mandarin. On airplanes, he listens to language tapes. And in his spare time, he reads books about the Asian powerhouse and blogs written by expatriates living there.

China “is really intriguing to me. I want to experience it,” said Carter, 44, UPS’ international sales and marketing manager for the Southwest region.

Although he’s traveled in the region for his job, now he wants to work full time in China, for at least a few years.

“Who would think in our lifetime we would have the opportunity to be pioneers in anything?” he said.

As China evolves into an increasingly important market for many U.S. companies, a growing number of Americans are eager to work there, despite potentially formidable obstacles of language and culture.

Interest in China extends beyond multinational corporations. Increasingly, managers at small- and mid-size businesses are volunteering for forays in China, seeking excitement, riches and a career boost.

“It’s not a hardship,” said Louisa Wong-Rousseau, managing director of China for Stanton Chase International, an executive search firm. “People see going to China as a career advancement.”

Though many in China prefer to hire locals, a shortage of skilled executives means expatriates remain in demand, said Lisa Johnson, director of consulting services for Cendant Mobility, a large relocation company.

Many companies award assignments in China to their rising stars, she said. “It’s where a lot of companies’ future is.”

According to a Cendant Mobility study conducted last year, people moving to China for business reasons are typically married men in their early 40s.

Shanghai, China’s most cosmopolitan city, ranks as the top destination for expatriates. But a growing number of them are headed to less well-known places such as Chengdu, Dalian and Tianjin.

For example, Dallas attorney Ryan Greene recently accepted a job with EnterHealth China LLC, which manages two hospitals in the Chongqing area. The firm aims to become a leading provider of health care services in China.

Greene, 34, already has an apartment leased and furnished for him in Chongqing. Initially, he plans to spend half his time in the southwestern Chinese city and the remainder in Dallas.

After three trips to China, he has developed an admiration for the Chinese people’s work ethic and culture. “In the next five to 10 years, everyone is going to be going over there,” he said. “I want to be on the leading edge of that transition.

“What’s happening there is so amazing,” he added. “It’s the industrial revolution in early 19th-century America all over again.”

Americans who have taken the plunge and moved to China often find the experience an eye-opener.

In November 2004, Nokia Oyj employee Ron Davenport sold his house and two cars in Grapevine and moved to a gated community in Beijing.

Now, he is helping develop low-cost phones at Nokia’s product creation center in Beijing.

“The pace is quite frantic,” Davenport, 41, said of the Chinese business environment. “But I am much more sensitive to growth in other parts of the world.”

For Mark Abe, living in China became a necessity. The 40-year-old executive for Plano, Texas-based Electronic Data Systems Corp. arrived in Beijing three months ago to help his company win information technology services contracts from Chinese airlines, airports and other air services providers.

“It’s very hard to build those relationships when you’re flying in and out,” he said.

The expatriate from Orange County, Calif., quickly learned that conducting business in China requires forming personal relationships, not just making sales calls.

“The business models that are prevalent here in China are different from ones in other parts of the world,” he said, referring to the nation’s many state-owned firms.

“Don’t wait,” he advised others considering working in China. “The country is changing so fast. Jump in with both feet and don’t look back.”

Taking on a China assignment does involve some challenges and adjustments.

Chief among them is finding health care that meets U.S. standards, according to the Cendant Mobility study.

Number of foreigners working in China soars

www.chinaview.cn 2006-04-04 08:15:47

BEIJING, April 4 — A lack of qualified personnel in both the private and public sectors has seen the number of foreigners working in the country soar.

Expatriates legally employed in the country last year almost doubled compared with three years earlier, reaching a record high of more than 150,000, according to the Ministry of Labour and Social Security.

The rise is mainly seen in overseas-funded companies and local offices of multinationals as they expand rapidly in the coastal areas as well as big cities in the inland provinces.

The most sought-after positions include those in information technology (IT) and management, including human resources and finance departments.

In Shanghai alone, where more than half of the global top 500 multinationals have a presence, an estimated 40,000 foreigners work.

The State Administration of Foreign Experts Affairs is also hiring foreign experts every year.

“Foreigners with managerial and professional skills are welcome to work in China,” said Gao Lin, an official with the ministry’s employment department, adding that more are coming after the country joined the World Trade Organization (WTO) in 2001.

Lack of talents to fill new positions is a major reason behind the influx of foreign professionals.

The IT and telecommunications sectors, new materials and energies, high-tech and financial industries are particularly in need of foreign talent, said Wang Tongxun, a senior expert with the Chinese Academy of Personnel Science under the Ministry of Personnel.

“It means greater opportunities for both domestic and overseas talented people,” he said. But since most domestic jobseekers cannot meet the requirements, foreigners fill the breach.

For instance, senior personnel in finance and accounting, like finance controllers, are urgently needed, Mercer Consulting said in a mid-March report after it co-sponsored a survey with the Association of Chartered Certified Accountants (ACCA).

But most senior accounting positions are taken by expatriates, it said.

Key positions such as marketing managers of overseas enterprises and foreign-funded hotels, and top posts in banks and manufacturers are also mostly taken by foreigners.

For these jobs, “expatriates are paid two to three times higher than their local counterparts,” said Alan Zhang, who leads Mercer’s Human Capital Product Solutions business in China.

“Most expatriates used to take up senior managerial or senior technical positions. But since 2004, there is an increasing trend to assign expatriates at middle management and professional level,” he added.

(Source: China Daily)

Hot expat destination: China

Robin Pascoe reports on the challenges HR faces as their international companies contemplate a move to China.

With world foreign direct investment (FDI) set to rebound in 2004, the attraction to China in particular is growing. The country is forecast to receive FDI of USD 58 billion in 2004 according to the fourth edition of the World Investment Prospects from the Economist Intelligence Unit

It’s no wonder then that companies are scrambling to figure out how to do business in China, and more importantly, looking hard at their HR strategies in order to make them relevant and productive.

“When you see the amount of foreign investment flowing into China, and the growing impact of China on the global economy, the country has become the place to be for most international firms,” says Carlos Mestre, who heads the International Unit in Mercer HR’s Global Information Services Practice in Geneva, Switzerland.

“For many firms, this has meant a need to develop and enhance policies to cover the diversity of assignments, the multiple nationalities, and the important differences that exists from city to city in China,” he says.

Mercer held its 8th annual Expatriate Management Forum in Paris last month. More than 60 HR managers from European companies attended the two day meeting, which included a special presentation on international assignment management in China.

Presenter Peter Schoof, who has been responsible for the International Transfer Centre at Daimler Chrysler since 2001, believes the role of HR has not developed yet in China.

“The current HR challenges in China include recruiting, training and qualification, integration and retention, and the introduction of HR policies and procedures,” Schoof told the audience, with a particular emphasis on retention of local Chinese managers.

Schoof proposed that higher salaries could help retain local Chinese managers but it was also pointed out during the session that loyalty and the building of relationships are key business values in China. This means, among other things, that if expat managers are rotated out of positions too quickly or too often, the Chinese employees will also leave out of sense of loyalty.

The importance of understanding the Chinese value of guanxi—which translates from the Chinese as the “relationship between people”—is typically stressed by most cross-cultural business trainers preparing managers to work in China—and there’s a good reason for that.

According to business Professor Oliver Yau, the Chinese style of management tends to be very human-based. Professor Yau is the chairman of the Academy of Chinese Management and Vice Chairman of the Academy of Knowledge Management in Hong Kong.

“The importance of guanxi, for example, indicates a task-focused approach which emphasizes the human side of a relationship and personal behaviour,” says Professor Yau.

“Most international joint ventures fail because people are unable to handle the relationship [side]. There are generally misunderstandings on both sides as to the way in which the other side works. Both sides need to try to understand how the other party thinks. This is crucial if the venture is to succeed. Trust is also very important.”

So should managers go for long- or short-term assignments in China?

This question was also raised during the Mercer meeting by Taina Makkonen, who is responsible for Nokia’s international transfer programmes. Nokia currently has 220 expats in China.

“China must be considered a long-term assignment to be successful,” believes Makkonen based on Nokia’s experience. “It takes a long time—typically longer than in other countries—to learn to do business and be effective in China. Companies therefore need to determine whether some allowance is required to compensate for the extended duration of a Chinese assignment.”

Accompanying family considerations must also not be ignored, according to panel members, otherwise it will be difficult to find staff to move to China even though the availability of western amenities in the major cities such as Beijing and Shanghai has improved dramatically over the past five years.

“A key factor for the success of assignments—to China and elsewhere—will be how well the many family issues are dealt with,” points out meeting organizer Carlos Mestre.

Other conclusions reached by this particular panel on HR challenges in China included:

• there is still a big gap between managerial and other salaries as the dramatic growth in China has pushed local salaries up, with upper management levels creeping towards international standards;
• there is increased competition for local talent which is driving up cash incentives so that firms wishing to retain talent must constantly evaluate incentive schemes; and,
• training opportunities are an essential weapon in the war for local talent.

China is destined to be the biggest expat destination in the next five years, according to Daimler Chrysler’s Peter Schoof. He underscored the importance of companies understanding the Chinese way of doing business by adding: “We consider our expats as ‘ambassadors of the brand’.”

www.expatica.com

Tips for selecting right international schools in China

by tnmom – from ShanghaiExpat Forum

Here are some things I would ask:

1. Class size? Subjects offered?

2. Language program – Opportunities to learn Mandarin, How much cultural emphasis in the curriculum?

3. Compatibility with home country curriculum – not a problem if this is a pemanant move, but if you will be moving back to Australia you want to make sure that your kids will be able to slip back into the curriculum as well as possible (or you may decide that the cultural experience is worth a little give and take academically)

4. Extra curricular activities – do they have what you want or will you have to search outside of school?

5. College recruitment program – for older grades – where do their graduates go to college? Who recruits at the school? What is the reputation? Do they offer appropriate college tests? Counseling for college application process?

6. Drug testing policy, uniform policy, etc. – nice to know up front.

7. Be sure to ask what the acceptance process is like – we were surprised to end up on the waiting list at SAS because we thought we had a seat guarantee from our company. It all worked out, but we moved here not knowing exactly where our younger two kids were going to school.

Behind The Chinese Networking (GuanXi) Buzz

By Michael Connolly

Shanghai is abuzz with the murmur of networking. Every week in Shanghai, countless events are held for ambitious fortune seekers relentlessly practicing the art of handshaking, exchanging mingpian, and of course, building guanxi or “relationships.” Many residents in Shanghai will testify that attending networking mixers is a great way to expand contacts, establish face-to-face exposure, and in general, meet some interesting people.

Social networking gatherings are still primarily a Western concept. In China one builds guanxi through introductions by family and friends, or by doing favors. The idea of holding public meetings for the purpose of making new connections and expanding relationships is still relatively new in China, but in today’s dynamic business climate it has become essential to have a multitude of connections, while still managing them effectively.

Networking is nothing new, of course. Every salesperson knows that they need to develop a base of contacts, and every businessman in China understands that he needs guanxi. In China, everything of consequence gets done through a person’s guanxi. The difference between Western-style social networking and Chinese-style guanxi has to do with the specific rules governing interaction in the social network. At some point, for a Western businessperson trying to reach a local Chinese business prospect, a cultural threshold must be crossed. Western business rules that dictate how to do things must eventually yield to the mysterious rule of Chinese guanxi. Still, the “Six Degrees” concept applies. The person seeking contact probably knows someone, who knows someone, who knows someone (and so on), who knows the prospect. This is a core concept in both Chinese guanxi-building, as well as in the Six Degees of Separation (or Small World) Theory.

Science is proving what we already know

In his seminal work, American sociologist Stanley Milgram advanced and empirically tested the theory of “six degrees of separation,” which states that any randomly selected pair of perfect strangers could be associated through no more than six common acquaintances. In one of his tests, Milgram successfully built associations between test participants in two different cities and two other participants living in Boston. The procedure was done by asking the first participants to mail a brochure to the Bostonians, using no more information than a common set of acquaintances. Columbia University began to test the six degrees of separation theory in 2002 on the Internet. Initial findings suggest that the “will” to communication outweighs the “means” of communication.

The Steps to Developing Good Guanxi

So what does one do with the pile of business cards collected at these networking events? First, it is important to realize that each connection can have hidden value, so it is prudent to look at more than the immediate needs and instead to treat each contact as potentially valuable in your personal six degrees network. While the person may not look, at first impression, like a particularly appropriate business contact, the act of just following up might make enough of an impression to open the door to further opportunities. Collecting business cards and shaking hands is only the first step. At some point, each connection has to develop some level of substance.

The next step is to simply follow up. If a person is serious about strengthening connections from the first handshake and business card introduction, then they have to be organized in a systematic way. Making the new contact a part of one’s social network is next. The savviest network builders may automate the tracking and maintenance of his/her addresses through an online tool, but such thoroughness requires the discipline to get the information from the collected business card into the software.

Is Guanxi about Quantity or Quality?

A management consultant and author, Patricia Durovy, has stated that success in business is directly related to the QUANTITY of communication that is sent out. Once a connection is made, each person needs to manage communications with the people in his or her network so that connections become stronger and continue to develop. It may require a bit more work, but with the technology tools available, having a good six degrees network is not difficult and will pay for the effort by making it easier to get things done.

The Job Landscape for Expats in China

By Michael Connolly

Want to work in Shanghai? Many people from all over the world do. There are more people from other countries who want to come live and work in Shanghai than there are jobs with expat salaries. In the last few years, the job market has been flooded with educated and experienced overseas Chinese or overseas educated mainland Chinese being attracted to the same thing other expats are attracted to — the lure of riding the booming economy. With issues of culture, language, disparity in pay scales, and suitable job availability, there is not always an easy solution to finding a comfortable niche. Many seek to move to here without the benefit of company support and an expat package. One recruitment industry manager indicates an educated guess of less than 20% of the expats in China is here on an expat package. Given the range of talents and available positions, a job seeker might break down potential opportunities:

Get hired by a company for a position in China with relocation.

(the expat relocation option). Most of the people who are getting expat salaries now are in senior management. Directors, project managers, and technical specialties are also being hired. Many, if not most, if the managers hired into these positions get hired in their home country and relocated here. At this point, this is reserved only for senior managers and technical experts. Jobs in this category also tend to have the best salaries and the best perks. Even so, the benefits offered these days are not what they used to be. Shanghai is not a hardship post, so even though salaries maybe similar to what they make at home, the perks are not what they used to be.

Relocate to China Independently.

The job seeker can pick up a position as a local expat hire. According to a 2003 Amcham survey, there is a trend to hire locally even for expat positions because hiring a person in this situation often brings added benefits to the company. Hiring a local expat is less expensive. Expats already living here are already culturally acclimated, and they tend to already have a solid set of contacts in China, which potentially makes them more valuable.

Get a job on the local economy at local or semi-local wages.

This is not a desirable option for income, but in many cases, is an option for living here to learn the language and begin making contacts. Many come to fill English teaching positions and develop their network to work themselves into a niche. However, even these positions usually require education and credentials unless it is a short term internship.

Start a new business.

This is an option if the job seeker has some experience and some capital and requires that they have some contacts, partners, and advisers that can help navigate the maze of pitfalls. The most difficult option to execute but potentially the biggest reward if done well.

Even with education, credentials, language, and experience it is still a highly competitive market. According to Wang and Li in their article “Who has the edge?”, just being educated overseas is not enough. Local mainland hires with experience and ability are more common place than even 5 years ago. The cost of the new hire is more significant factor for many companies and expat packages are being offered much less often. Being bilingual is a given requirement for just about every significant job. Soft skills and the demonstrated ability to manage Chinese staff is a huge necessity. Hiring managers are looking deeper into what is written on resumes and expecting more from those who are offered.

The process of finding a position in China that pays an expat salary is increasingly difficult. It is combination of skill, experience, contacts, and luck. This situation leaves few options to the job seeker who wants to work in China. Each option has its own set of requirements and its own set of pitfalls. However, the lure of boom here in China is too much to be ignored and many are arriving here to carve out their niche.