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© 2006 Management Recruiters International, Inc. An Equal Opportunity Employer. Each office is independently owned and operated. YOUR Unique Operating.

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Presentation on theme: "© 2006 Management Recruiters International, Inc. An Equal Opportunity Employer. Each office is independently owned and operated. YOUR Unique Operating."— Presentation transcript:

1 © 2006 Management Recruiters International, Inc. An Equal Opportunity Employer. Each office is independently owned and operated. YOUR Unique Operating Identity Logo Lock-Up Managing Talent in China: Pitfalls and Challenges Erica Perry Briody, Director February 21, 2008

2 2© 2006 Management Recruiters International, Inc. An Equal Opportunity Employer. Current Scenario China’s economy grew 11.4 percent in 2007 Growth expected at percent in 2008* Pressures impacting HR: Find faster and easier ways to populate databases with a qualified talent pool Improve communication through integration of the talent acquisition process Need to compete with companies to source top talent Gain access to targeted attraction channels, open internet boards and private talent portals (*According to the USCBC )

3 3© 2006 Management Recruiters International, Inc. An Equal Opportunity Employer. Key Talent challenges facing MNC’s in China?* Talent acquisition Talent retention Talent compensation (*According to the USCBC )

4 4© 2006 Management Recruiters International, Inc. An Equal Opportunity Employer. Critical question keeping your CEO up at night is: How to identify and retain the next generation of leaders?

5 5© 2006 Management Recruiters International, Inc. An Equal Opportunity Employer. The 5 processes of Talent Acquisition: Planning Sourcing Assessing Hiring On-boarding

6 6© 2006 Management Recruiters International, Inc. An Equal Opportunity Employer. Does your company have a “talent mindset”? Best performing companies distinguish themselves by leveraging:  Market intelligence  Technology  Assessments  Outsourcing  Creating long term strategic plans that enable them to effectively source and assess candidates

7 7© 2006 Management Recruiters International, Inc. An Equal Opportunity Employer. Evaluation Do you align the Talent Acquisition Strategy with the company business goals? have the market intelligence to determine the strategy? measure workforce performance based on quality of hire over cost per hire and time per hire? use technology solutions? use a long-term talent acquisition plan? pro actively data-mine and map out the market to determine the size of your talent pool and know the interest level of your company as an “employer of choice”?

8 8© 2006 Management Recruiters International, Inc. An Equal Opportunity Employer. Which Category represents your company? Need Improvement CategoryAverage CategoryBest In Category ProcessReactive, emergency-driven; none or little long-term staffing planning Annual staffing plan for anticipated resourcing needs Yearly hiring management plan covers all hiring levels; includes contingent plans for unanticipated hiring needs and succession planning OrganizationStruggle to align the talent acquisition strategy to the overall strategy of the company Working to align talent acquisition to the overall strategy of the company Strong employee focus – nearly all of these organizations align their talent acquisition strategy to the overall strategies of the company KnowledgePaper-based methods to source and assess candidates Transitioning between paper based and automated services Automation is used to source and assess candidates TechnologyMany still use paper based applications and view assessments as a priority but still face cost restraints and a lack of automated systems Moving towards an automated system for both assessments and sourcing tools Invest in some or all of the following: in-house or externally hosted tools to ascertain competencies, external job boards, company career sites, online assessment tools

9 9© 2006 Management Recruiters International, Inc. An Equal Opportunity Employer. Key Performance Indicators: How do you measure success? Quality of Hire  Cost per hire  Time to hire  Job vacancies outstanding  Time from job requisition to offer acceptance  Average new hire tenure 

10 10© 2006 Management Recruiters International, Inc. An Equal Opportunity Employer. Talent issues in China* China needs 70,000 new corporate leaders for international operations in the next five years Currently only 20% of CEO’s in China are mainland Chinese Over 50% of HR professionals in China think their current leadership program is below average Only 11% of executives in China think they can retain top talent *DDI

11 11© 2006 Management Recruiters International, Inc. An Equal Opportunity Employer. The Key Challenges in Talent Acquisition

12 12© 2006 Management Recruiters International, Inc. An Equal Opportunity Employer. Talent Acquisition Solutions

13 13© 2006 Management Recruiters International, Inc. An Equal Opportunity Employer. ACQUISITION: Be prepared in how to attract the best “Senior Level Talent” in China ! Develop and consistently communicate the company’s unique selling points and vision Confirm with all parties the position’s requirements and scope. The “must have” and “nice to have” skills Determine who must be involved in the process and why Develop pre-set dates of availability for all involved in the interview process Pre-approval for compensation and benefit variances

14 14© 2006 Management Recruiters International, Inc. An Equal Opportunity Employer. ACQUISITION: Be prepared in how to attract the best “Senior Level Talent” in China ! Update your line managers interviewing techniques Condense your hiring cycle to less than 30 days Have HR or your Search Firm engage in a “pre-close” conversation Set up weekly contact with the newly hired candidate to prevent the “counter offer” Deliver what you promise in the interview!

15 15© 2006 Management Recruiters International, Inc. An Equal Opportunity Employer. Retention: Why Staff Leave or Stay

16 16© 2006 Management Recruiters International, Inc. An Equal Opportunity Employer. Retention: Why Staff Leave or Stay (continued)

17 17© 2006 Management Recruiters International, Inc. An Equal Opportunity Employer. Retention: Besides having strong leadership as the key to gaining employees’ commitment; how do we retain the best talent in the midst of the “War for Talent” in China? Understand and adapt your position in the market relative to your talent competitors Develop a consistent leadership development program that involves overseas training and / or advanced education opportunities Understand your own employer brand and develop a clear employer brand strategy In China you must pursue your staff to confirm you are meeting their needs regarding their career Develop long term financial incentives that make it more difficult for a team member to leave for financial reasons Develop a “market map” of the talent for your key functions so that you have an ability to respond quickly to sudden management changes

18 18© 2006 Management Recruiters International, Inc. An Equal Opportunity Employer. COMPENSATION: What are the current contributors to the dramatic increases in Compensation? Supply and Demand Continuing influx of new companies to China Expanding needs of established players who are seeking to attract top level talent Candidates becoming more sophisticated in their approach to job changes

19 19© 2006 Management Recruiters International, Inc. An Equal Opportunity Employer. COMPENSATION: What are the current contributors to the dramatic increases in Compensation? MNC seeking out the top 20% of available talent is putting further constraints on the talent pool The trend of “ upgrading ” talent is continuing Hiring cycles can take weeks during which time the candidate often interviews with multiple companies to evaluate opportunities and compare compensation This has an inflationary effect at times and often forces the company to raise their offer to attract the candidate

20 20© 2006 Management Recruiters International, Inc. An Equal Opportunity Employer. China: Looking Forward A further tightening of senior to mid-level talent for at least the next months Compensation trends to increase at 30% for candidates moving from one MNC to another Larger MNCs will struggle with tight compensation bands Operational execution inhibited by long hiring cycles and prematurely promoted talent “Localization” of talent will continue but companies will be forced to hire expensive expatriate talent to fill in the gaps

21 21© 2006 Management Recruiters International, Inc. An Equal Opportunity Employer. Which Category represents your company? Need Improvement CategoryAverage CategoryBest In Category ProcessReactive, emergency-driven; none or little long-term staffing planning Annual staffing plan for anticipated resourcing needs Yearly hiring management plan covers all hiring levels; includes contingent plans for unanticipated hiring needs and succession planning OrganizationStruggle to align the talent acquisition strategy to the overall strategy of the company Working to align talent acquisition to the overall strategy of the company Strong employee focus – nearly all of these organizations align their talent acquisition strategy to the overall strategies of the company KnowledgePaper-based methods to source and assess candidates Transitioning between paper based and automated services Automation is used to source and assess candidates TechnologyMany still use paper based applications and view assessments as a priority but still face cost restraints and a lack of automated systems Moving towards an automated system for both assessments and sourcing tools Invest in some or all of the following: in-house or externally hosted tools to ascertain competencies, external job boards, company career sites, online assessment tools

22 22© 2006 Management Recruiters International, Inc. An Equal Opportunity Employer. Steps to Success Need Improvement Category Improve the Employer Brand Move away from paper based manual system to implement an automated system that will provide a faster and easier way to source and assess candidates Create a “talent mindset” so that the talent acquisition strategy is aligned to the overall strategic plan of the company Average Category Invest in assessment tools / improve assessment capabilities Plan for the Future Use an automated system to create a talent pool of both active and passive candidates Best In Category Integrate sourcing and assessment processes with the other processes of talent acquisition Social cohesion and community commitment

23 23© 2006 Management Recruiters International, Inc. An Equal Opportunity Employer. Solutions to Challenges and Pitfalls : Be pro-active in identifying and assessing candidates Map your talent pool to build your database Be open minded to partnering with a RPO/RPM firm to assist during peak periods Find out what candidates are being compensated and how they view your employer brand Assess the competencies of your internal team to match against future open requisites Constantly re-evaluate the succession plans Market intelligence formulates your future strategy for positioning your company!

24 24© 2006 Management Recruiters International, Inc. An Equal Opportunity Employer. MRI China Group One of the largest and fastest growing executive search firms in China with over 1000 assignments completed annually in the last 2 years 11 Offices in Asia / Head office in Hong Kong. Research and Data mining centers in Manila and Chengdu Over 200 staff across the group covering most major industry sectors such as Banking, IT, Telecoms, Chemicals, Manufacturing, Property, etc Major Services: Executive Search, Recruitment Process Management, Talent Mapping Analysis and Data mining “Recruitment Firm of the Year, China” in 2003, 2005 – 2007 Established Tal-os Asia with Barkers Resourcing to support our clients with volume hiring projects, Talent Market Analysis and Recruitment Process Management / RPO

25 25© 2006 Management Recruiters International, Inc. An Equal Opportunity Employer. Objective : Receive your opinion on how the economic conditions in the U.S. will affect companies in Asia Summary of Results : Companies trading with the US expect fewer orders Companies with operations in China expect increases in operational costs Companies with U.S. HQ expect a freeze in operation expenses and potentially hiring needs 90% of respondents expect salary increases to be below 10% in 2008 Finding the “best quality” candidates is CRUCIAL to the success of companies in Asia Talent Market Research by Tal-os Asia

26 26© 2006 Management Recruiters International, Inc. An Equal Opportunity Employer. THANK YOU


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