Category Opinion and View

China firms struggle to find top talent.

Increased FDI, the relatively small pool of locally-experienced talent and a growing trend in salary package inflation are the most common complaints of companies struggling to hire suitable staff in China, research by the recruitment group, Antal International has found.

More than half of the companies in China questioned are being held back by problems recruiting quality staff, according to the latest China Market Survey conducted by global recruitment firm, Antal International. Most of the 500 company managers who were questioned in the bi-annual survey believe their operation is being held back by a combination of increased competition for candidates caused by more new entrants to the market, fast-rising packages as companies offer more to attract staff and a concern at the size of the experienced talent market given the number of middle to senior vacancies on offer.

Academic qualifications are less of a concern; most candidates are highly educated with just ten percent of managers showing this as an area of concern. What mattered more to the overwhelming majority was the shortage of people with local market or regional experience as a reason for being unable to find the right person to fill a vacancy. “The fact that over 50% of companies in China are struggling to recruit using their own methods at the management level is a great concern to new market entrants and those players already here,” said Robert Parkinson, head of Antal’s Asia region. “There are so many other intellectual property, licensing, regulatory, cultural, and other important issues for business managers to deal with today that this adds greatly to their already crowded agenda” said Parkinson.

While over-fishing in the talent pool has exacerbated the shortage of experienced people, the competition for staff has led to increased wage inflation with people moving roles more frequently as increasingly higher packages are offered to tempt them. Added to this, the risks associated with hiring the wrong people; especially in a place like China make it a minefield, particularly at a time when growth and opportunity is at stake. Some companies are looking for Chinese staff in Europe, USA and wider Asia and bringing them back to fill the gaps. Having an international reach into other markets to cover domestic market issues like staffing is now a key aspect to success in China.

The research found that the Media & PR, Technology & Telecommunications and FMCG sectors were most affected by skills shortages, with 59% of companies reporting trouble finding suitable candidates without resorting to external solution providers such as Antal. This was followed by Shipping and Transport with 51% reporting hiring issues as their market expanded.

Functionally, experienced Marketing and Sales skills, across a broad range of industries, far outweighed the rest as the area with the most scarcity but was closely followed by Accountancy and Finance. In freight and transport, Chartering and broking skills were in high demand.

Geographically, businesses in the major cities reported the most difficulties with Shanghai and Guangzhou in third and fourth place. Beijing and nearby cities in the north were the worst hit, with 63% of companies saying they struggled to recruit adequately experienced staff on time without enlisting the help of external recruiters.

Robert Parkinson, who has seen his own business grow four fold in headcount in the last 12 months, sympathised with the findings. “It is difficult to find the right people on your own or using only a single sourcing methodology such as the web as it exposes you to those who may just be after an increase. It also has an effect on the amount of management time spent in sifting and hiring. This is why our clients use us as we can scour the market more thoroughly and use a combination of methods to find the best people for them. Additionally our in-depth screening and matching process identifies traits that might be a warning of candidates who job-hop from package to package.

Suppliers must move soon in China

April 4, 2006
BY JUSTIN HYDE

U.S. auto-parts makers struggling to survive in an industry clogged with bankrupt companies can find a foothold in the future in China — but only if they act now.

That’s the message several experts and supplier executives brought to suppliers Monday on the opening day of the Society of Automotive Engineers 2006 World Congress at Cobo Hall in Detroit.

Suppliers and automakers have been making multibillion-dollar moves into China, lured by the possibility of cutting their costs as much as 50%.

They also hope to snag a piece of the booming Chinese economy, which is on track to pass Japan as the world’s second-largest market for new cars and trucks by the end of the decade.

“It’s a market you ignore at your own peril,” said Mustafa Mohatarem, General Motors’ chief economist.

Jack Perkowski, CEO of ASIMCO International Technologies, a Beijing-based auto-parts maker, said it was not too late for suppliers to jump into China, but the door is closing as Chinese suppliers increase their own abilities.

“If you’re not there by 2010, you’re too late,” Perkowski said. “The center of gravity for technological innovation is going to move to China. It’s going to be the fastest-growing market in the world.”

Last year, automakers in China built 6 million vehicles, a 20% increase. For the first time, China exported more cars and trucks than it imported.

Automakers have pushed suppliers to lower costs by building in China, and exports of Chinese-made parts to the United States have been rising at roughly 30% a year, heading toward $12.8 billion in 2007 according to PRTM Management Consultants.

Yet according to a survey of suppliers by the firm, most companies find it far more expensive to do business in China than they had planned. One big reason: Counterfeiting runs rampant in China for many goods including auto parts.

Andreas Mai, a consultant at PRTM, said companies should take several steps to protect their goods from copying, ranging from spreading contracts among several suppliers to keeping their key innovations out of the country entirely.

Mai estimated that auto-parts companies building in China need to save at least 20% in costs to make up for the higher overhead of shipping, quality control and guarding their intellectual property.

With Delphi Corp. and other large U.S. auto parts makers in bankruptcy, some attendees asked what kind of future the U.S. industry could have when faced with such stiff competition.

“There will still be a very vibrant, active industry here … it will just look different,” Perkowski said, citing automakers’ need for parts close to assembly plants. “Every one of the businesses here will have some sort of China strategy.”

Tips for doing business in China

Some advice from experts for auto suppliers who want to set up shop in China:

Have a presence in China — workers who can make decisions about the business. Trying to manage by remote control often leads to problems.

It takes a critical mass of business — $10 million — to generate real savings and an understanding of the country.

Avoid handing out unnecessary information that could be used to copy your products, and break up work among several suppliers.

Beware of logistical problems, such as bottlenecks at ports.

¡°China Rocks!¡± says Boeing¡¯s chief executive

Apr. 21, 2006 (China Knowledge) ¨C ¡°China Rocks!¡± said Boeing Commercial Airplanes Chief Executive Alan Mulally as he closed the proceedings of Chinese President Hu Jintao¡¯s speech at Boeing¡¯s Everett plant.

While Hu displayed goodwill of friendship and healthy working relation at Microsoft, the usually reserved president showed the affectionate side of him that amazed both Americans and his people at home.

Not only did Hu, in a celebrity-like gesture, put on a Boeing cap offered by one of Boeing¡¯s veteran staff Paul Dernier, he also gave the latter two hugs and several pats on the back as a sign of camaraderie and appreciation.

This came after a well-received speech from Hu. Commenting on Boeing¡¯s relations with China, Hu said, ¡°Boeing’s cooperation with China is a living example of the mutually beneficial cooperation and win-win outcome that China and the United States have achieved from trade with each other.”

“This clearly points to a bright tomorrow for future cooperation between Boeing and China,” Hu added.

Although several other Boeing workers remain apprehensive about this ¡°bright tomorrow¡± which might threaten their employment as China rises in economic terms, Dernier, who received Hu¡¯s public display of affection said the close ties between Boeing and China ¡±helps keep our factory open¡±, according to Seattle Post-Intelligencer.

In his speech, Hu shared a way by which China can help to keep their factory open: ¡°I hope the American companies will seize opportunities, aggressively expand their share of China’s market and continue to enhance their business ties with China.”

Labor in China

According to recent front-page articles in the New York Times and the Financial Times Asia edition, wages have been steadily rising during the last several years throughout southern China, where the world’s largest manufacturing base is located. Citing “double-digit” increases in Chinese labor costs, executives of the Li & Fung group, a $7 billion Hong Kong-based trade-sourcing company, told the Financial Times last month that the competitiveness of China’s sprawling manufacturing industries seriously eroded last year. William Fung even went so far as to declare that China “is no longer the most cost-effective country in the region,” an assertion that has been seriously challenged.

China’s rising costs have generated recent price increases averaging 2 percent to 3 percent for its goods, Mr. Fung reported. Though relatively small in absolute terms, these price increases nonetheless represent a major reversal of a long-term trend marked by “severe deflation.” That deflation, which reflects falling prices, was especially evident in many consumer durable goods, which are products expected to last three years or longer, such as furniture, household appliances and most electronic goods, all of which China produces in abundance.

The Commerce Department’s price index for all consumer durable goods, for example, has declined by nearly 20 percent since 1995, while the price index for furniture and household equipment plunged more than 40 percent over the same period. The prices for clothing and shoes, nondurable goods in which China specializes, fell 14 percent over the last 10 years. U.S. consumers derived extraordinary purchasing-power benefits from these falling prices, whose anti-inflationary impact has had the added benefit of helping to keep long-term interest rates, including mortgage rates, well below historical levels for years.

The New York Times article attributed China’s rapidly accelerating wages to “persistent labor shortages,” noting that the rising wages were “swelling the ranks of the country’s middle class.” U.S. workers should view this as a welcome development because American exports become far more affordable to Chinese workers whose living standards are rising. However, while the recent upward trend in Chinese wages is indisputable, there is good reason to believe that the trend will not have the long-term impact that experts cited by the New York Times seem to believe. Specifically, it is highly unlikely that rising wages are causing the Chinese economy to undergo “a profound change that will ripple through the global market for manufactured goods.”

Applying “the math of small numbers” to China’s changing wage structure, Stephen Roach of Morgan Stanley recently explained why China and its 1.3 billion people are unlikely to lose their comparative advantage in the manufacture of goods. “Rapid wage inflation off a very low base does little to close the gap with higher-wage economies on a moderate inflation trajectory,” Mr. Roach convincingly argued. Back-of-the-envelope calculations illustrate Mr. Roach’s point. The New York Times reports that the wages paid by multinational corporations in their largest Chinese factories typically average between $100 and $200 a month. (Minimum wages are less than $80 per month.) Given that Chinese manufacturing employees customarily work 10 hours per day six days a week, the upper limit ($200 per month) of wages paid by multinationals translates into 77 cents an hour. By contrast, U.S. workers in goods-producing industries earn an average wage of $17.72 per hour. Now, assume the 77-cent wage increases by 20 percent for each of the next five years. (The 20 percent annual increase would represent a significant acceleration over the 12-percent annual average that has prevailed since 1999.) Next, assume that the average U.S. goods-producing wage increases over the next five years by the Blue Chip consensus inflation forecast of 2.5 percent per year. Five years from now, China’s top wage would be $1.92 an hour, having increased by $1.15. America’s average goods-producing wage would be $20.05 per hour, having increased by $2.33, an absolute rise that is more than twice the absolute increase in the Chinese wage. The U.S.-Chinese wage difference would increase from $16.95 today ($17.72 less 77 cents) to $18.13 five years from now.

Responding to the New York Times assertion that China’s rising manufacturing wages are “threatening at some point to weaken China’s competitiveness on world markets,” Morgan Stanley’s Mr. Roach notes that “[p]roductivity growth in China’s industrial sector — manufacturing, mining and construction — surged at an average annual rate of nearly 20 percent over the 2000 to 2004 interval,” which was “well in excess of the cost pressures implied by 12 percent gains in hourly compensation.” Thus, unit labor costs probably declined over the past five years. At worst, they were very well contained. Mr. Roach finds the “labor shortage in China” argument to be “equally preposterous.” He cites the 60 million workers that have been furloughed by China’s state-sponsored enterprises since 1997. And he points to the fact that China’s rural population totals nearly 750 million, “by far the largest pool of surplus labor in the world.”

So, it is good news that China’s growing middle class is experiencing sizable relative income gains, a trend (if it continues) that will make U.S. goods more affordable to the average worker in China. It is also good news that the combination of soaring Chinese productivity and the continuing large absolute difference between Chinese wages and developed-country wages is likely to keep low-priced, purchasing-power-enhancing Chinese products within easy reach of consumers everywhere.

http://washingtontimes.com/op-ed/20060415-091638-9341r.htm

Toyota in China: Full Speed Ahead

Toyota (TM) might be closing in on General Motors (NYSE: GM – news) (GM) as the world’s largest carmaker, but in China the Japanese company has

plenty of catching up to do. Despite exporting cars to the mainland since the 1960s, Toyota’s market share is just 3.5% in China, compared to 13% in the U.S. and more than 40% at home in Japan. Market leader GM sold more than 650,000 vehicles in China last year, while second-placed Volkswagen (Xetra: 766400 – news) , with sales of over 500,000, is also way ahead of Toyota’s 179,000 units in 2005.

But don’t expect Toyota to be lagging behind the pack for too long. Just as the auto maker has grown rapidly in the U.S. over the last decade, it’s now gearing up for rapid expansion in China. In December, Toyota President Katsuaki Watanabe outlined plans to ramp up sales 60% during 2006, to 290,000. And ominously for rivals, by 2010, the company aims to triple its current share in China to 10% of the fast-growing market [see BW Online, 12/21/05, “Toyota: King of the Car World in ’06?”].

To meet those stiff targets, Toyota is unleashing a host of new vehicles on the mainland. What’s more, it’s showing it isn’t afraid to build its newest models in China through partnerships with First Auto Works and Guangzhou Auto. On Dec. 15, Toyota and FAW held a ceremony to herald local production of the Prius, which sells for about $36,000 and will be China’s first hybrid.

CUTTHROAT COMPETITION.

Leading Toyota’s rapid expansion in China is Yoshimi Inaba, who splits his time equally between Tokyo, Toyota City, and China. Inaba had only ever been to China once when he accepted the post last June, but brings immense know-how accumulated during various management roles at Toyota, including two spells in the 1990s at Toyota Motor Sales in the U.S., becoming president in 1999.

Inaba will need to draw on all his experience to make Toyota tick in China. Cutthroat competition has triggered a 28% fall since 2000 in the price for a compact on the mainland, and profit margins are falling. Most Chinese car buyers, meanwhile, might be new to car buying, but there are no easy sales [see BW Online, 3/9/06, “A Billion Tough Sells”].

On Mar. 7 in Toyko, Inaba addressed Toyota’s China plans with BusinessWeek Tokyo correspondent Ian Rowley. Edited excerpts of their conversation follow:

Toyota plans to grow 60% in China this year. That sounds pretty aggressive. Is it?

At this stage of the development, percentage increases don’t have so much meaning. We’re starting up a new factory in Guangzhou with a different partner [Guangzhou Automotive]. A whole new factory will be added, hopefully increasing sales by about 50,000 to 60,000 units this year.

What’s the impact of working with two partners?

With two partners — the other is First Auto Works — we have to have a totally separate sales networks. That’s two different channels and two different franchises under the name Toyota. Our guys are working to set up a whole new sales network, and have already appointed 100 dealers [for the GA channel]. For FAW, we already have about 220 dealers in operation already. On top of that, we have Lexus, which is 100% our own operation.

How different is selling cars in China compared with other countries?

The first thing I looked at [when I took charge of China] was the pay scheme at the dealerships. This is very similar to the United States. It’s predominantly commission-based sales, while the fixed salary is very small. That is very different from Japan or even Europe, and dictates the whole dealer network. We can apply many of the things we did in the U.S. to China.

The other thing is that the dealers are much younger and are mainly in the 30s and 40s. Some of the new powerful entrepreneurs in automobile retail are quite young, impressive, and have pretty much the same mentality as U.S. dealers. The whole strategy — how to set up a network in China — can be learned from our experience in the U.S. The dynamics of retail are quite similar. Japan is very different.

But is it difficult to find good people?

Actually, it’s not. There are always 10 to 20 applications, and many of those are from multifranchise retailers already operating. Many of them started as brokers, importing and distributing. Others started as used-car traders.

What about Chinese consumers? How do they compare with other markets?

Many of them, 85% I’d estimate, are new, first-time buyers, whether they’re young or old. That’s quite different and probably the biggest difference I can see between China and other countries. The other thing is the element of status or expression or lifestyle shown in the cars people buy. You get that everywhere, but the sense of pride or showing off is still very, very strong in China. There’s an element of emotion in China that’s stronger than in other countries.

Will this continue?

I think so. But the Chinese market is changing so fast. Price will become increasingly important. My theory is that you still have to have a good emotional reason to buy a cheaper car or even an inexpensive car. It’s always a question of the affordability vs. the emotions.

What about Toyota’s brand image?

Well, we’ve been exporting to China — officially or unofficially — since the 1960s and, to my surprise, the Toyota brand is recognized. We should be very careful not to damage that image.

Is it strong relative to other Western auto makers?

Yes, and among Japanese auto makers as well. In China, Toyota is a very well-known brand.

Given that most buyers in China are first-time buyers, do you market differently?

I would not say that there’s a very big difference in terms of our approach to customers. But one thing is that China is a very young market relative to the U.S. or Japan, so you have to tune your marketing approach to a younger generation of people. We also try to promote more customer test-driving experiences — it’s more about personal experiences rather than just image.

Is anti-Japanese hostility in China a problem?

We’re very conscious of this, but it’s not actually [a big problem] on the retail scene. As long as you offer good products, Chinese [will buy] Japanese products. The only area where we might [suffer] a little bit is when it comes to city government or state government purchases. They’d rather choose other brands than Japanese, but that’s a very minor part of our business. Nevertheless, we’re very careful about what we say and how we say it in terms of PR and advertising. We have to be 100% sure we don’t stimulate any anti-Japanese sentiment.

How about the luxury sector? Can the Lexus do well in China?

There’s tremendous potential for the Lexus. The rich [in China] are very rich and often younger guys. There’s a lot of room for us to grow in the luxury segment. China is the only country where we’re offering a product lineup as big as in the United States. We’re offering everything that’s available.

But is Lexus brand recognition a problem?

Recognition with the wider public is very low, but our targets are the [kind of] people who travel to the United States, and their recognition level is already quite high. [It’s] not to the same extent as Mercedes and BMW (Xetra: 519000 – news) , but I think Chinese are now really looking at the U.S. quite a bit, so knowledge of the Lexus is quite common.

Are you still targeting 1 million cars by 2010?

That is a very visionary target, based on the assumption that the market would reach 10 million and that Toyota would take a 10% share. One million is something we can aim for, but maybe the 10 million figure was too aggressive. China has healthy growth — 10%-plus growth for the total market. But [10% growth won’t be enough for] 10 million by 2010. [It will] probably be 8 million or so.

Also, in China, about 50% of the market is very cheap, old-fashioned vehicles. There’s no way we can compete there, so really we’d need to get 20% [to achieve our aim]. Whether we can do that in a short time, I doubt it. But it is still a good vision.

How will the Chinese market develop?

There will be changes in the fundamental structure of the market. The Chinese government will reshape their tax scheme, and that will change the demand structure quite a bit. The trend is going towards smaller, fuel-efficient cars. No segment will shrink, but there is potential for a fast-growing small-car segment.

At the same time, I think the Chinese government will institute emissions and safety controls, and many of the old-fashioned [car producers] will have to upgrade their technology, and prices will go up. Today, the best-selling category of cars in China is [priced] around $6,000 to $8,000. We will have to come down [in price], and they will have to come up. But there will be a shift in mix towards the lower end, that’s for sure.

Who will be the biggest rivals for Toyota in China? Will it be local players?

China is a sizeable auto market, so it can have several local players. It seems to me that the pure, privately [funded manufacturers] like Geely or Chery are the ones to watch, and Hyundai [of Korea]. [The challenge] will be both international and local.

Are you concerned about profitability in China?

One thing in China is that there are no price increases for the near future — it’s always downwards. Everyone looks at China as a growing market, so they prepare more capacity. That means there’s always some overcapacity somewhere and pressure on prices. China used to be a very profitable market for everybody, but now it’s becoming like any other market.

But you’re confident Toyota can succeed in China?

We’re a minor player in the China market, with a 3.5% share, but we’re one of the few manufacturers where demand exceeds supply. Even though we see big potential for growth, we will make sure we’re not in a position of overcapacity. That will be a very key element. And as long as you retain the quality, treat dealers as partners, and avoid oversupply, the results will come. The race for the Chinese market is just around the first corner.

The Venture Investor’s Guide to China

Seven steps to succeed in the world’s largest market

The flow of venture capital into China is on the rise. Despite challenges and regulatory uncertainty, venture capital and private equity firms are finding opportunities, according to the latest report by Deloitte Research, “Seven Disciplines for Venturing In China.” With this initial investment come some early lessons on to proceed and profit in this growing economy.

“Venture capital and private equity firms are transforming Chinese enterprises by helping them to tap into innovative practices, global, commercial, and capital markets,” says Ajit Kambil, firm director in Deloitte Services. “In addition to creating companies with modern corporate practices and high value jobs, venture capital and private equity also create a new guanxi by connecting the world economy to opportunities for growth in China. But unlike investing in developed markets, investing in China is substantially different in all aspects of the deal, from sourcing to management through exit.”

Seven strategies for success:

* Develop guanxi of social capital networks to access information and to establish and maintain business relationships. Guanxi is a highly personalized Chinese system of social capital enabling mutual, preferential favors based upon trust or mutual benefit. It is a widespread practice.

* Implement corporate governance and shareholder rights initiatives. One key role of the investor may be to educate the Chinese entrepreneur on the differences in opportunities with each form of capital, governance requirements, and the rights of shareholders.

* Manage intellectual property. Protecting intellectual property can involve a change of thinking for some Chinese entrepreneurs. Culturally, copying is not always a crime, but sometimes is homage to past masters.

* Adapt foreign business models to local Chinese contexts. For example, many Chinese do not have credit cards or if they do, prefer not to use them in online commerce. To adapt, some companies allow Chinese customers to buy online, but pay over the phone or by cash on delivery.

* Understand the value added. More than just financial investments, a venture investor can add value in other ways, including screening and recruiting management team members and installing and maintaining financial controls.

* Establish a clear exit pathway. Look to innovative legal and financial constructs that are a mix of Chinese and Western practices.

* Create opportunity from regulations. The political and regulatory climate in China is constantly changing. Instead of viewing this as a barrier, look for ways to leverage regulatory hurdles. Licensing requirements, for example, can create barriers to entry for competitors.

Automotive Competition: Is China the Next Japan? (GM, F, TM, HMC)

By Evelyn Rubin on Douglas McIntyre

Douglas McIntyre submits: Chinese automotive manufacturers Geely (in photo) and Chery have begun to show their cars at the auto shows and are starting to make the rounds of U.S. dealers. According to MSNBC, Malcolm Bricklin, who helped Subaru and Yugo get footholds in America, is working with Chery to line up retail outlets.

No one seems worried. Maybe the American automotive industry should not be. Maybe the Chinese automotive threat is still too far off.

The Chinese automotive industry is growing at an astonishing pace. According to the People’s Daily, in February, China produced over 528,000 cars and sold 480,000. The Chinese Ministry of Commerce says both figures are increases of more than 50% over the same period a year earlier.

Granted, General Motors Corp. (NYSE: GM), Ford Motor (NYSE: F), Toyota Motor Corp. (NYSE: TM), Honda Motor Co. Ltd. (NYSE: HMC) and others are doing well in China along side the local manufacturers. And, they should. In the U.S. there are more cars that households. In China, there is still only about one vehicle for every 100 households.

The demand for cars and light trucks in China over the next decade will drive down production costs and raise unit sales in a way the industry has not seen since the early part of the 20th Century in the U.S.

It would be foolish to think that the Chinese will not be aggressive exporters as their manufacturing cost efficiencies rise with unit sales.

It’s a good bet that U.S. consumers will be driving Chinese-made cars in the next two or three years. The question is, will these new models go the way of the Yugo, or will they take share the way Subaru and others have?

Douglas A. McIntyre is the former Editor-in-Chief and Publisher of Financial World Magazine. He has also been president of Switchboard.com, which was at the time the 10th most visited site on the web, according to MediaMetrix. He has also been on the boards of TheStreet.com and Edgar Online.

how returned overseas chinese viewed by locals?

Post from blog.bcchinese.net

received a mail:

I’m a chinese girl who was born and raised in *** (an european country). I’m coming this *** to work in Shanghai, and I’d like to know how chinese people consider people like me, I mean huoqiao ren. Are we considered as strangers, even if we look like asian, and talk chinese ?

returned overseas chinese are still regarded as “chinese” and therefore a “zi ji ren” (people of our side), no matter what passport they hold. however there are some changes in recent years. overseas chinese are no longer seen to hold those advantages over the local chinese in fields such as language, skills or working experiences, in fact, the trend is that many executive search firms favor local talents over those returned from overseas because of their extensive experiences and knowledge of china.

interestingly, the chances are greater that local chinese got frustracted in socializing with overseas chinese than with foreigners. i don’t understand why. but in general, returned overseas chinese can fit into shanghai quite well, and they are viewed as a member of shanghai and chinese community.

good luck to you!

http://blog.bcchinese.net/bingfeng/archive/2005/08/16/32031.aspx

Talent Shortage in China v.s. Do You Feel?

I found this piece “Talent Shortage in China” on AESE web site and compare to the blog “Which Countries Feel the Pain of a Talent Shortage” I read yesterday on Teleo.

The AESE article pointed out that shortage in China was real and a serious issue. But the survey on Taleo told me that not many hiring manager were aware this (only about 20% surveyed admitted shortage).

“There is a management gap that will take 10 years to fill,” said Paul Reilly, the chairman and chief executive of executive recruiter Korn/Ferry International. “There is a huge shortage.”

“China produces 10,000 MBAs a year, but the problem is experience,” Reilly adds.

My experience tells me that there is really a shortage of talent at very top level, because not so serious at middle level. Top level talent may take more than 20 years to develop, while China’s reform didn’t start until late 80’s. That explains the talent gap in China

Monster in China – where are the billion people?

I found today that chinahr.com officially added monster.com link to its front page. This maybe a very natural thing after chinahr.com’s majority shares were aquired by Monster.com last year. I checked Monster.com homepage and found china and korea are added to the geo choices.

This move is still a very interesting thing to me:

1) It seems to me that both China and Korea monster sites are now established by acquiring local job board. Other Asian monster sites including HK, Singapore and India – all of them are English sites and bear same look and feel as rest of Monster sites. Language seems still a barriar even to the big player like Monster, so buying an establish local job sites seems much easier and cheaper than building them from scrach.

2) While the 2 new added sites (China and Korea) seems still using their own databases and can not directly link to the rest Monster databases worldwide. So I still have to buy seperate corporate accounts as an agent if I REALLY want to seach cross regions. I don’t know how Monster gonna solve the problem.

e.g. If I purchase a HK monster account including region – ‘China’, but the problem is it does not include new Monster China’d databases. The HK (or all Englissh Monster) database only has candidates registering directly to English Monster sites. While you are thinking buying a potential billion names, you can instead only access a few thousands people in that region. Crazy to think – where are the billion people? 🙂

I was excited initially to assume that I can now consolidate my job board accounts, but it seems that I have to maintain both accounts for a while. Converting two databases with different structures is no easy thing if not impossible. I will see how Monster will come up with any better idea to consolidate them.

TZ