China to recruit foreign experts through Internet

Foreigners who intend to work in China can have interviews with employers in China through the Internet.

From May 29 to June 4 this year, an online recruitment campaign will be launched by China Association for International Exchange of Personnel.

Foreign job hunters just log on www.e-jobfair.com, view the vacancies, submit their resumes, and ask to “meet” and “talk” with the employers through an audio-visual interaction system on the web.

The whole process is free and there is no need of downloading any plugs. It is the first time that such face-to-face online international recruitment has been made possible in China.

More than 500 Chinese educational institutions and companies have registered on the web site and more than 4,000 foreign job seekers have put forward their resumes there.

The web site also links with the world’s top three English teacher associations: TESOL, TESL Canada and IATEFL.

An incomplete statistics show that some 100,000 foreign teachers and experts are working in China. Nearly 5,000 universities and colleges have been approved by the State Administration of Foreign Experts Affairs to have foreign teachers.

By People’s Daily Online

Joint ventures give China edge

By LARRY RINGLER Tribune Chronicle

YOUNGSTOWN — It’s well known that China is quickly becoming the world’s manufacturing center.

It might not be as obvious that it’s also closing the gap in research and development, which someday will be the seed corn of China’s homegrown manufacturing base.

That’s why two area business and labor leaders say it’s important to tap the skills of U.S. engineers, production experts and other skilled workers who face losing their job at shrinking American companies.

Think Warren-based auto parts maker Delphi Packard Electric. John Russo and Jim Cossler certainly are.

‘‘Delphi is in the forefront of making components for wiring harnesses. They could leave their technology in joint ventures that aren’t competition to them,’’ said Russo, codirector of Youngstown State University’s Center for Working Class Studies in Youngstown and a recent visitor to China.

Delphi Packard has a proven ability to generate patents. The Community of Science database of patents for the Warren-Youngstown area lists the Delphi Corp. division with 82 patents from 2000 to 2004 — more than the next seven companies combined.

Such brainpower is needed to keep pace with China, which is getting technology from joint ventures with Delphi, General Motors Corp. and other U.S. companies that are jockeying for a piece of the burgeoning market.

Russo got a sense of China’s meteoric growth as he recently visited Nanjing in eastern central China and Shanghai on China’s eastern coast.

Delphi Corp., he said, is investing $50 million to employ 1,500 Chinese engineers by 2009. The knowledge the Chinese glean from Delphi likely will help fledgling Chinese car companies such as Geeley Holding Co. and Chery Automobile Co. to export cars to the U.S., he said.

Chery, which is China’s largest car company, could start shipping vehicles to the United States by 2009, especially if it gets a $200 million investment from billionaire investor George Soros. Auto industry trade paper Automotive News carried a story last week that Soros may pump that much into Chery to help the company begin exports.

Russo noted Chinese automakers such as Chery, Geeley and Brilliance Automobile Corp. that make their own vehicles can export them. Shanghai GM, a joint venture with General Motors Corp., and other such collaborations can’t export their products.

China has encouraged joint ventures because the country lacked the technical expertise needed to design and build vehicles. Joint ventures also allowed vehicles to be made more cheaply because the Chinese company didn’t need to develop its own research and development, Russo said.

The same American technology that China covets would be valuable in the Mahoning Valley, Russo and Cossler said.

Cossler, whose Youngstown Business Incubator includes fast-growing software company Turning Technologies Inc., said he was ‘‘stunned’’ when he saw some of Delphi’s software.

‘‘I’m sure they don’t want rivals to have it, but we see it as of tremendous interest to any company that does business in electrical controls,’’ he said.

‘‘Delphi always focuses on making their plants as efficient as possible,’’ Cossler added. ‘‘We’d love to work with Delphi to examine the intellectual property they use. If they’re laying off some engineers, we’d like to help those engineers start new technology companies in the Mahoning Valley.’’

Delphi Packard’s parent, Troy, Mich.-based Delphi Corp., filed for Chapter 11 bankruptcy reorganization last October. Deep wage and job cuts for hourly workers have garnered most of the headlines, but the company also plans to shed *thousands* of engineering and other white-collar jobs.

Cossler and Russo noted Delphi holds the patents on inventions and processes developed by its employees. The division is a world leader in designing and building complex wiring harnesses that most often are used in vehicles to power the growing array of electronic devices, but which also could be used in computers, appliances and medical equipment.

They believe that by licensing the technology or forming a joint venture with a startup company, Delphi could benefit as the new company explores different markets for the product or process.

‘‘Our suggestion,’’ Cossler said, ‘‘is to take the training and experience of those workers and think electrical controls outside (Delphi’s) vertical markets.

‘‘We need innovative ways to work with Delphi on new technology that they may not even recognize,’’ he added.

Delphi Packard is well aware of the role its technology could play in local startup companies. The division held discussions last year about what role it might play in the incubator program but no talks have been held lately, spokeswoman Ann Cornell Vickers said.

‘‘The incubator is Ö a great idea for the area,’’ she said, ‘‘but we’re a company in bankruptcy, so we’re not able to enter into funding development of other companies. We need to focus on getting this company turned around.’’

Delphi Packard already has a number of agreements to license its technology, Cornell Vickers said, adding, ‘‘We’d certainly entertain discussions with the incubator.’’

She said she didn’t know the terms to which departing engineers would have to agree, such as promising not to develop products that would compete with Delphi Packard.

‘‘The particulars would have to be done in private discussions,’’ she said.

Cornell Vickers said Delphi Packard also has a number of engineers and other workers who can either retire or who are close to retiring. The company has announced its intention to trim its salaried work force globally, but no plan has been communicated to workers.

‘‘Everything right now is at the choice level’’ as to whether a salaried worker will decide to retire or leave, she said.

‘‘We’ve had some excellent engineers leave and go to work at universities. They may consider taking some of their expertise and parlay that into a development at the incubator or other companies,’’ she said. ‘‘Their knowledge doesn’t end just because they retire.’’

China’s SAIC hires former GM China chief

SHANGHAI, June 18 (Reuters) – General Motors’ main partner in China, which will soon roll out its first independently developed car, said on Sunday it was appointing GM’s former China chief as executive vice president.
Philip Murtaugh, who served as chief executive and chairman of GM’s China operations between 2000 and 2005, will be responsible for SAIC Motor Corp’s overseas business, China’s biggest car maker said in a statement.

SAIC, which makes Buicks and Santanas in ventures with GM and Volkswagen AG , set up a $460 million unit in February to make its own model of car. It acquired some of the technology by purchasing assets from failed British car maker MG Rover.

It is scheduled to roll out the first car in the second half of this year, and aims to sell over 200,000 of the cars by 2010, 45,000 of them in overseas markets, company executives told Reuters in April.

Tax Manager (NYC)

Our client is Top 20 US accounting firm with offices in more than 20 locations. They are currently seeking a Tax Manager based in NYC, US.

Job Descriptions:

• Assist Tax Management in advising US & International companies on China market entry strategies;
• Research and investigate issues related to:
• the Chinese & US tax implications of investments & business operations, which are related to business planning, repatriation of dividends, reinvestments, structuring & restructuring business in China, mergers, cross border acquisitions, onshore reorganizations, transfer pricing studies and tax efficient supply chain planning.
• the setting up of operations, offices, subsidiaries and trading companies in China,
• assisting clients in understanding international tax issues, and reviewing & interpreting business laws, tax & financial documents, and market information
• Execute tax compliance on existing and new client engagements, including the preparation of tax returns, financial statements & other documents of Firm clients, ensuring compliance with tax regulations
• Research and investigate appropriate information to provide to the Firm’s existing as well as new clients with updates on tax, legal and economic issues of China operations
• Execute tax compliance services to International individuals, both inpatriates and expatriates, on related international income tax and financial planning issues • Prepare and maintain on line publication “Doing Business in China” for organization’s international website

Requriements:

• The candidate is in US already
• Company can sponsor H-1B visa if needed
• 20% Travel
• At least 3 years in China and 3 years in US accounting, tax or legal experience

Package: Manager level 80-125K, Senior level 60-90K

* Please send us your complete resume (both in Chinese or in English) to: topjob_z01@dacare.com

Sourcing Engineer

Company introduction:
Our client is one of the world’s largest tire companies, sells its products in 185 countries and manufactures them in more than 80 plants in 28 countries and employs about 86,000 associates.

Responsibilities:
1. Identify Asian suppliers to support operations.
2. Drive and track supplier technical approval via PPAP £¨PRODUCTION PART APPROVAL PROCESS).
3. Enhance EPD SBU (strategic business unit) EBIT£¨earning before interest and tax)by utilizing lower priced Asian sources.
4. Implements business practices, product design and commercial terms that support company’s business interests, profitability goals and working capital or cash flow goals.

Requirements:
1.4-year degree in Mechanical Eng., Materials Eng., or similar related discipline.
2.At least 1 year of technical experience in fabric, polymer and/or yarn industries.
3.Purchasing fundamentals and fabric, polymer and/or yarn processing characteristics and terminology.
4.High proficiency in English.
5.Ability to travel at least 50% of the time.
6.Team player, strong communicative skills, self-managing.

* Please send us your complete resume (both in Chinese or in English) to: ‘topjob_ic042sh@dacare.com’

Organization Development Consultant

Company introduction:
One of the Global Top10 pharmacy Company

Responsibilities:
1.Develop and continuously improve Talent Management System including Talent planning, Talent Identification, Talent Development, Talent Review, etc.
2.Put in place Talent Management related HR policies & procedures
3.Facilitate the Talent Identification and Review session, etc. to make the process work
4.Design and implement appropriate development interventions to support talent development and evaluate • the development programs to continuously improve
5.Establish and maintain the Talent Pool database for analysis and report
6.Effectively manage external vendors'(development interventions’provider) performance & quality on follow up if necessary
7.Under the business needs of business function
8.Provide consultation for organizational change
9.Facilitate appropriate workshops or dialogue sessions to help the people get prepared and shift to the change
10.Follow up to deal with any related issues along with the change together with line managers to make sure the smooth change

Qualifications:
1.Bachelor or above
2.Understanding of organizational behaviors
3.Knowledge on Organizational Development such as Change management, Strategic Planning, etc.
4.Understanding of Adult Learning
5.Facilitation & training delivery skills
6.3 years working experience in the areas of HR management, corporate learning or OD
7.Business experiences and/or supervisory experiences
8.Fluent English speaking and writing
9.Strong PC skills
10.Planning and organizing skills
11.Interpersonal skills

* Please send us your complete resume (both in Chinese or in English) to: ‘topjob_hl011sh@dacare.com’

Headhunting Heats Up in China Market

Marie-Anne Hogarth
The Recorder
September 28, 2005

Earlier this year, New York-based recruiter Henry Lipschutz persuaded Kurt Berney, a prized partner at Wilson Sonsini Goodrich & Rosati, to join O’Melveny & Myers’ China practice.

Landing a skilled M&A partner like Berney who was willing to relocate to China was a coup. And it came from a cold call.

The world’s largest law firms are intensely interested in China and the other fast-growing economies of Asia. But firms eager to open or expand offices there are finding the supply of lawyers is outstripped by demand.

That’s creating opportunities for U.S.-based recruiters like Lipschutz, who says Asia now accounts for about 60 percent of his placements. For now, it’s a small market — there just aren’t that many partners in Asia willing to move around. But it’s expected to grow.

“There is tremendous opportunity for search work on the horizon [in China],” says Newport Beach, Calif.-based consultant Peter Zeughauser, who advises many firms on their China strategies. “It’s starting now and it will be a long run — maybe 15 to 25 years.”

Firms with established China practices, like O’Melveny, can recruit people like Berney, who are willing to take a specialty and move it overseas. Firms trying to launch a China practice, however, need partners who’ve been on the ground in Asia.

“There are a lot of legal recruiters actively recruiting in China — there is no shortage of people trying to do that,” says partner Howard Chao, who heads O’Melveny’s Asia practice. “Where things are tight are senior people with lots of China experience.”

Lipschutz, who points to the shortage of partners in explaining why he’s focused on recruiting second- to fifth-year corporate securities associates, agrees. “All the partner-level lawyers that should be in Asia have been there for the last three years,” he says.

Thomas Shoesmith is one of them. After starting his career with Cooley Godward, he joined the Shanghai office of Paul, Hastings, Janofsky & Walker. Earlier this year, recruiter Avis Caravello brought the IP litigator to Thelen Reid & Priest, where he’s launching the firm’s China practice.

“Tom would call me at 8 at night” — morning in China — “and the kids would answer the phone, ‘It’s Tom Shoesmith,'” Caravello said.

Despite the need for evening and even middle-of-the-night phone calls — there’s a 15-hour time difference between San Francisco and Shanghai — more U.S.-based recruiters are making inroads in China.

Zeughauser, who says he only represents partners who’ve told their current firms they are looking to leave, says he’s currently doing some work in China.

Major, Lindsey & Africa joined the small colony of Western recruiters with offices in Hong Kong a few years ago. Recruiters there are increasingly doing more work for U.S. firms that want to open in Beijing and Shanghai.

“Demand has been strong now for five years, but at least with respect to China, it does now seem to be hitting a fever pitch,” says Charles Fanning, a global practice leader at Major Lindsey who is based in San Francisco.

Joe Macrae, founder of Mlegal consulting, primarily does recruiting on behalf of U.S.-based firms in the London market. He says his firm is currently handling work on behalf of five candidates in Taiwan and Shanghai seeking to work stateside, or to move within their local markets. Silicon Valley recruiter Carl Baier recently handled work for candidates in China and India, and as a solo he forges deals with larger search firms in other parts of the world.

The biggest hurdle for recruiters is the shortage of recruits. “To the extent that we could find people in China, they would be very viable candidates,” says Caravello. “But it is like the needle in the haystack in Asia.”

Adding to the difficulty, talent searches in China have become increasingly specialized. Where firms employed generalists who could handle foreign direct investment, they’re now calling on specialists in IP, private equity and M&A, says Gregory Nitzkowski, co-managing partner at at Paul, Hastings, Janofsky & Walker. The latter are especially in demand, recruiters say, as Chinese companies in the last year have developed an appetite for American ones.

As in other international markets, poaching is common. And as with many ex-patriot communities, lawyers in Hong Kong and China seem more often willing to make the move.

“There is more mobility in Asia,” says partner Michael Gisser, who co-heads the Asia-Pacific practice of Skadden, Arps, Slate, Meagher & Flom. “There is less stigma associated with job-changing by partners and associates alike. In the U.S., “if someone is on their third or fourth law firm, it is more likely to raise a question.”

While individual hires account for much recruiting, some firms prefer to bring on groups in the international market.

“Our London growth has been with groups and I love recruiting [that way],” says Morrison & Foerster Chairman Keith Wetmore. “I have higher confidence around quality and demonstrated team dynamics [with a group]. With a single person, you don’t know why they are in the market.”

Topic: Headhunting in the Mainland Chinese Market

Topic: Headhunting in the Mainland Chinese Market
October 2002 issue
with ART’s Managing Director

Interview Date: 14 September, 2002:

Q1. How does recruiting for the mainland Chinese market differ from recruiting for other markets?

A1. Every market is a little different, and we do not find China to be notably different from most world markets in most respects. It’s always the same question: “does this client’s business model and expectation coincide with this candidate’s experiences and career path?” The level of candidates that we recruit in China – mostly “C” level, VP level, Managing Director/ G.M. levels, and Director/ Manager levels – tend to be “global class” people. These are the same types of people that could and do operate successfully anywhere, be it in Beijing, Shanghai, Shenzhen, Hong Kong, Singapore, Taipei, San Francisco, New York, London, Zurich, etc. Most of these people have either lived, worked, or were educated in other parts of the Asia-Pacific, North America or Europe. These candidates might have known ART for years or might have heard about ART from trusted colleagues in China or abroad. They understand that the calibre of our candidates is high, and our clients’ expectations of them are high. Such people usually find us, or we find them through our network of contacts. Generally, good people recommend other good people, so in recruiting people in China we place some reliance upon trusted referrals to steer us in the right direction.

Depending upon the specific job, industry or business model, sometimes there are shortages of specific mainland China profiles. In that case, it might be necessary for an employer to seriously consider Hong Kongers, Singaporeans, Taiwanese and other Chinese speakers from abroad. The most notable of these would be a VP or “C” level person for a small early stage China division of a small or medium sized foreign company. Foreign startups in particular typically are founded by people who have limited finances and who work very hard with limited staff. When they seek senior managers for new Chinese operations, they often look for the same type of “shirtsleeves” person to head their China groups. Such people, however, can be a bit hard to find in mainland China, particularly since most foreign-trained or foreign-company experienced Chinese executives come from large multinationals. So a person whose resume might suggest a high suitability for an American employer (i.e., s/he worked for U.S. multinationals, s/he received an education in the U.S.), that person might not automatically be suitable at all for a Silicon Valley-type startup firm. While a Chinese finance manager at a major U.S. multinational might be supported by a very large China staff, that person taking a job as a CFO of a startup China division, might find himself or herself alone in a room with the expectation of “doing it all.” Most search firms operating in the China market do not appreciate this subtlety, and that is why many of their matches are not good fits for the candidate or the client. When we take on such assignments, then, we ask the employer to keep this factor in mind. When we discuss such jobs with candidates, if we do not see a lot of appropriate startup company experiences, we ask pointedly if such a job would interest her or him. We typically lay out scenarios: you will be expected to do all the work, you will not have a staff until business allows for hiring, you will have to do what ten others do at your present company, etc. We rather have nine candidates out of ten realize early that this would not be good for them, rather than to place someone in the wrong job.

Our focus in China tends to be people who are bilingual English/Chinese (Mandarin or Cantonese) speakers who are fully bicultural, which is to say that they are “at home” in China, familiar with mainland Chinese customers and business partners, and also are able to deal effectively with overseas companies, customers and business partners in the way that those companies would expect to be dealt with. Because China today is still a mix of people coming from state company experiences and domestic and foreign private company experiences, the overall numbers of Chinese middle managers and senior managers with the experience of running proper corporations or departments 100% along world class lines is still limited. In five or ten years, the expertise of Chinese managers will be truly outstanding, as today’s junior managers and middle managers hone their skills. We recruit middle managers today for middle management roles, because we know that they are valuable recruits today and critical for tomorrow’s CEO, CFO and VP placements. Right now, we are seeing in China many fully able world class managers, a larger number of managers with hybrid Chinese and foreign business styles, and a larger number that only could perform within their existing Chinese business models.

One somewhat different aspect of China recruitment is finding people who are suitable for joint ventures. While JV’s are found in every country, there is a perception by some clients that entering into a joint venture in China with a local partner is a “high stakes” proposition, bringing a potential of high gain along with potentially high risk. So when we look for a General Manager or Finance head who is to be the prime contact person with the JV partner, a special person must be found. Some people can work perfectly well in monitoring a JV with a state partner, while others only would be good with a private sector JV partner. Also, the goals of JV’s in China can vary significantly: it could be a transition for the foreign company to buy out a local partner, it could be a pure partnership, or it could be primarily a mechanism for funding or modernizing a local partner in return for a stake in future profits. JV General Managers or Finance Directors anywhere are always in a sort of high risk business model, regardless of the country, but in China, where cost accounting, manufacturing cost, and balance sheets are somewhat new concepts, it sometimes is hard for a prospective partner to fully understand what the local partner brings to the table, can bring to the table, or what it might take off the table. Each type of business model requires a manager suited to those ends. Most important is that the person be a trusted monitor and negotiator on behalf of our client’s interests.

Q2. Is there still a “hardship” premium for postings to China?

A2: We are very leery of any foreign candidate in China or any person seeking a position in China who feels the place is a “hardship posting.” In remote provincial areas, some special allowances might be quite justifiable, including for Chinese nationals relocated to those jobs, but in Beijing or Shanghai, a person calling for “hardship” premiums is probably someone that we would not be able to help.

It kind of reminds me of the story that used to circulate a decade ago about how a cost of a cup of decaffeinated coffee in a Tokyo hotel restaurant was $20. My comment to that is either don’t order decaf in a Tokyo 5-star hotel (drink tea instead), or don’t leave your country if you exactly want to recreate every shred of your past life, brick by brick, in another country. Certainly don’t expect that a prospective employer is going to happily coach you on to extract such benefits from their budget. A person who starts out feeling that China is a hardship posting probably should not be in China. There are benefits and problems in living in every city in the world. To a degree, “everything is negotiable,” but if the China job seeker is primarily focused on expat benefits, we get nervous that they might be more interested in locking in big amounts of cash and a luxurious lifestyle, rather than concentrating on the bottom line: making our client’s mission successful.Success involves commitment to a market, and success involves some sacrifice and risk taking. If the person comes into a tough job with all the comforts locked into an ironclad, long-term contract, where is the motivation to work hard? If an employer had to choose between two very closely matched candidates, one already living in China who only wanted a good salary, bonus and decent benefits package, versus another candidate who wanted all that plus a hefty expat package, which candidate do you think that the employer might regard more favorably? No employer is in a position to give away free money. If they are offering an expat package, it’s likely because that candidate was the best candidate interviewed for the job.

Many international executive search firms sometimes seem to push high cost expat candidates on their clients without even seriously considering capable local candidates with bankable credentials. We do not specialize in expatriate recruitment. Some percentage of our placements involve expat assignments, but every job search that we take on, regardless of the country, assumes that we should first try to find candidates already in that city or country. In some cases, a client can consider bringing in people from other cities or countries, and they might be willing to consider reasonable expat benefits on a case-by-case basis. Some candidates might have requirements such as school fees or housing allowances, but these candidates might be competing with very good local candidates who don’t need the employer to pay their food and rent, and who do not carry with their candidacy other such up-front burdens. The decision to consider one candidate with a reasonable total cost versus another with a higher set of requirements is left to the employer. We leave it to the employer to weigh the pluses and minuses of each candidate. Since our candidates are in 100 countries, we have a broad database of people to consider, depending upon the client’s budget and needs. If the employer has no budgetary limits to bringing in managers from abroad, that is not a problem for us, of course.

Nowadays, we see people in Hong Kong, Singapore, Taiwan, Australia, North America and Europe who are willing to take a job in China and who do not even ask for the cost of a plane ticket, because they perceive that there are great opportunities in mainland China. The person who might speak of a hardship premium for a posting in Shanghai or Beijing these days might be a person who is only half interested in the place or the opportunity. This more than likely would be a person who overestimates his or her own current market value, or underestimates the capabilities of his or her competition.

Q3. What are the main attractions of a China posting for candidates?

A3. The most obvious attraction is probably the vastness of personal career opportunities. Just to discuss finance jobs, a person who is currently a finance director at a hum-drum job might be pegged for a China VP of Finance job at a multinational engaged in financing a vast China market expansion plan, or a very exciting startup that might make him or her a millionaire. Currently, the economies of Hong Kong, Singapore, the U.S., Europe, and Japan have been slow, so many foreign firms are seriously focusing their attention on countries like China. This interest, as well as an expansion amongst local Chinese companies, causes there to be many interesting management opportunities for Chinese nationals and foreign professionals alike.

Having good work experiences in China is seen as an asset in most resumes of senior and middle management candidates. If you are a foreigner considering a job in China, the likelihood is that when you return to your home country after a China assignment, your profile might possibly be raised in the view of employers. It is one thing to “think global,” and it’s another thing to have actually “been global.”

The quality of the work in China, again only discussing finance jobs, can be very exciting. This is a country where much of the groundwork of creating formal finance structures, institutions and systems has only barely begun. A person who in his or her home country might not have the opportunity to make deals with the big players, much less help create financial systems, institutions and mechanisms for a country or industry, might possibly have the chance to do so in China.

Some people come to China because their family origins are in China and they would like to broaden their understanding of China.

Some people are returning migrants from abroad who, after several years working in foreign countries, feel that their best prospects are in serving as bridges between the country of their birth and the country of their professional lives.

Some people go to China in search of the proverbial proposition of selling their product or service to a billion people. These people might be motivated by big dreams or big money – or both.

Q4. What are the main drawbacks of a China posting for candidates?

A4. This answer really depends upon the location and the candidate. There can be a wide variety of issues that could make a China posting wrong for any one person. We therefore would highly recommend that a foreigner who has some interest in a China posting do a lot of research about the place in advance of considering applying for a job in China. In a thousand ways, life in China is not the same as in Taiwan, Hong Kong or Singapore, and even having Chinese fluency does not guarantee that one would be happy working in China or would be successful. Because of the many personal variables involved in such postings, ART tends to recommend to its client companies people who are already well experienced in or well established in the target city and market, be they Chinese nationals or foreigners. We think that by focusing on such candidates, we help minimize everyone’s risk of failure.

Q5. Can you give an estimate of the increase/decrease in demand by international firms for candidates willing to relocate to China?

A5. Our firm specifically prides itself on trying to present local candidates on six continents, so most employers coming to ART seeking managers for mainland China or other countries usually do not look for us to present them with people who are not already in the country where they need the person to be based. Often, in fact, many employers contact us to help find the replacement for their past or current expat managers. Typically it is a situation where the person being replaced is the “first generation” manager being rotated back to the home country. In other cases, it is a case of the person simply having failed, often due to lack of local language skills, lack of local business contacts, or a limited understanding of local business culture. If anything, we are seeing a greater demand for high calibre, internationally trained or internationally experienced local Chinese managers to run Chinese operations. There can be quite a challenge in finding these candidates, but they will be the future, and companies that are lucky enough to snatch these people up will have, in our opinion, a much better chance of success than putting in charge a foreign manager who might describe himself as a “China expert,” but who, shockingly too often, is usually a person who is not even capable of reading the day’s weather report in a local Chinese language newspaper.

Q6. Any other issue you feel may be of interest to international employers looking to place staff in mainland China?

A6. Too often executive compensation in China is tragically misperceived by foreign companies without regard to either the supply and demand of appropriate candidates or without regard to the value that a really good local Chinese candidate can bring to a foreign employer. What we sometimes see is this potentially reckless and simplistic thought process by some employers: “Wages in China are a fraction of our own, so a Chinese general manager’s salary should therefore be a fraction of a general manager’s in our own country.” Yes, it is true that the average general manager in China is much lower paid than the average general manager in most industrialized countries, but in China, an average general manager is someone who does not speak English well or at all, has never worked for a foreign company, and whose conception of profit and loss is one that a foreign company would never consider acceptable in running their China business unit.

The profile that most foreign companies seek for China is not the “average general manager.” Rather, it would probably be something closer to the average one-tenth of one percent of the Chinese private sector industrial managerial class. These are the people who might have U.S. MBA’s, who might have worked or lived in Europe, the US or Singapore, whose English is fluent, who perfectly understand foreign conceptions of business success and failure, and who have successful track records in China working as senior managers or general managers of foreign firms in China. Their salaries are high by Chinese standards because they are worth every penny, and their skills are constantly sought out by foreign firms. The first, easiest and worst mistake a foreign employer can ever make in entering the China market is to underpay their top local management team. Either you will not be successful in hiring the best managers that you need to shepherd your products and services properly into the Chinese market, or you will soon find that your key managers are giving you notice, because of the many opportunities offered them by your competitors and others, who do understand the value that their knowledge, skills, contacts and personal integrity can bring their companies.

China’s Recruiters Speeding Up

As multinational companies expand into China, the headhunting business is growing quickly and moving online, says Zhaopin CEO Liu Hao

Zhaopin was founded in Beijing in 1997 as an old-fashioned headhunting company. Since then, it has shifted much of its focus to the Internet, and has become one of China’s leading online recruitment firms. Still, Zhaopin hasn’t abandoned the old ways of doing business, continuing to run recruitment ads in newspapers, especially in smaller cities. Clients include many multinationals such as Microsoft (MSFT), Shell (RDSB), DaimlerChrysler (DCX), Hewlett Packard (HPQ), Motorola (MOT), and Intel (INTC). Advertisement

Thirty-six-year-old CEO Liu Hao has degrees in physics from Beijing University and the University of Washington in Seattle, and a law degree from Yale University. He recently met with BusinessWeek’s Beijing bureau chief, Dexter Roberts, at Zhaopin headquarters to discuss his Internet operation and the overall recruitment market in China. Edited excerpts follow:

How has your company developed recently?
We have been growing very rapidly, with 100% annual growth in revenues the last three years. A couple of years ago we were profitable, but in the last few years, with the speed up of our expansion — we have grown from 4 cities to 16 cities — we have not been profitable. In early ’04 we had fewer than 300 people. Today we are at about 1,000.

We are particularly strong in the multinational business. Think of the Fortune 500 companies — 95% of them are our clients. We are definitely not the largest recruiter in China. No. 1 is [Nasdaq-listed] 51job.com. But their strength is mainly in newspaper ads. They do only 20% of their business online. We instead are 60% online, with 20%-plus in newspapers. The rest of our revenues are from headhunting.

Why are you expanding into the interior of China?
We see this as the driver of our growth. In the past, the online market has really been centered in Beijing, Shanghai, Shenzhen, and Guangzhou. Outside these cities it was just in the development stage. But China’s secondary cities also have huge populations. In the past, Internet penetration was not so high there, but that is changing.

For cities like Wuhan and Hangzhou, for example, their online jobs market might only be worth a couple million yuan ($125,000) right now. But in the next few years it will grow to 10 million yuan ($1.25 million). As multinational companies expand across China, we will go with them. We will probably be in 20 cities by yearend.

How bad is the talent shortage in China?
In the past, when companies first came into China, they were all struggling to fill managerial positions with people with solid operating experience. Chinese returnees with overseas degrees came back, but often had very little managerial experience. Over the last couple of years we have started to see a new pattern. General managerial staff is still in great demand, but the market demand is getting much more specialized.

For example, there’s an acute shortage of skilled workers such as specialized engineers. That’s particularly true in industries like autos, with the entry of BMW, Mercedes, and all the Japanese brands into China over the last few years. The pharmaceutical industry and the finance industries are also facing talent shortages. In general, sales and marketing professionals, medical care staff, and investment and fund managers are all facing serious shortages.

Are wage inflation and turnover a big problem right now?
China has doubled the number of people in its colleges over the last few years. That has had a deflationary effect on salaries for entry-level people. But in certain industries over the last couple of years, salaries have increased dramatically. For example, in the computer and Internet industries they have gone up 20% to 30% over the past year. Wherever you have venture capital flowing, salaries will go up. But in consumer electronics and the cell phone industry, we have seen that pay levels have dropped a little bit. So we actually see pockets of deflationary pressure.

Second-tier cities face a more severe problem. Cities other than Beijing and Shanghai have a particularly hard time keeping top talent. For example, take Xian. There are 100,000 to 200,000 college graduates in Xian every year. Xian is a city with a high educational level. But most graduates leave Xian after college. Beijing- and Shanghai-based companies offer higher salaries and a sexier work environment.

Chinese employees are known for changing jobs quickly. Why?
China’s job market is still not very mature, and professional ethics are still in the process of developing. We still see cases where job candidates will sign an offer and then decide not to take it. People also jump ship more often here in China. The general sentiment of society is impatience.

People are very ambitious. It’s like a virus affecting the job market: It is very hard to develop employee loyalty. People see working at a multinational as a stepping stone — something to put on their résumé before moving on. Talented people are being lured away by local or private companies. Others would prefer to start their own companies.

How does that drive your business?
A lot of employers are starting to realize that going online is the best way to find the kind of employees they want. Certain employers use the Internet as a way to screen employees — anyone the company would consider hiring should be proficient online. And a lot of multinationals are spending more online, while decreasing their print ads.

How do you see the overall online jobs market developing?
In Beijing, revenues from online job listings overtook newspaper listings last year and now lead by a large margin. Online jobs are growing at 30% a year now and were about 100 million yuan last year in Beijing. The size of the Shanghai market is a little smaller but growing at the same pace. Nationwide, newspaper revenues from recruitment ads are around 2 to 3 billion yuan, but growth is pretty much flat. The online recruitment market for all of China was probably around $50 million last year, and is growing at around 30%.

Any plans to take your company public?
Yes. Probably late next year. And it will most likely be on Nasdaq. It’s where all the Chinese Internet companies have gone

Engineering Manager

Company introduction:
Our client is a global, diversified company that provides vital products and services to customers in manufactory. This history and experience has enabled our client to build a vast support structure, which includes technologies, human and physical resources and most importantly to have an intimate knowledge of various industry processes. Our client is a major provider of products and services to most of the regions water, industrial process and infrastructure projects. The company works in close relationships, partnerships and alliances with the majority of the regions major companies to create ongoing value to the customers process. The employs are approximately 260,000 people worldwide.

Responsibilities:
1.This is a position of a leader with broad and diversified skills with responsibility for the design and support of products.
2.Leads a team on large engineering projects. Engineering projects may be new development and/or value engineering based cost reduction projects. Each project may consist of specific cost and reliability target objectives.
3.Applies intensive and diversified knowledge of engineering principles and practices in broad areas of assignments. Makes decisions independently on engineering problems and represents the organization on important matters.
4.Develop and translate functional specifications and cost targets for large projects.
5.Prepare project plans including schedules, budgets and staff assignments for the entire project from concept through introduction to production.
6.Evaluate functional specifications and cost targets and develop or approve design concepts to meet them.
7.Lead the project team. Clarify the objectives. Motivate team members. Assess team members performance.
8.Coach, mentor and otherwise encourage the professional development of other engineers.

Requirements:
1.Bachelor of Science in Mechanical/Electronic Engineering or equivalent, additional professional education is preferred.
2.More than 8 years of mechanical/Electronic design experience, preferably with experience of people management and project management.
3.Be very familiar with the mechanical parts. Good at the research and development and designing of mechanical parts. Solid technical background.
4.Creativity, initiative, analytical skills, attention to detail, problem solving skills, teamwork skills, communications skills, organizational skills.
5.Success in progressively more difficult assignments involving technical contributions, project management and team leadership including at least three years at the Senior Engineer level.

* Please send us your complete resume (both in Chinese or in English) to: ‘topjob_eng030sh@dacare.com’