New graduates now finding domestic companies more appealing as employers
BEIJING - Chinese employees no longer find foreign companies irresistible and instead are moving to privately-owned Chinese companies in increasing numbers, according to a report released by Manpower, a leading company in the employment service industry.
A total of 1,041 job seekers and 1,143 foreign and Chinese private companies on the Chinese mainland were quizzed about talent competitiveness to discover employees' preference in choosing their employers as well as changes in talent competitiveness at those companies.
The percentage of job seekers considering Chinese private companies as their first choice is up by five percentage points, while the percentage of those preferring foreign companies is down by 10 percentage points when compared with results from 2006, noted the report, entitled 2010 Foreign and Privately-Owned Chinese Companies Talent Competitiveness Survey.
Better compensation and benefits were considered the primary reason to prefer privately-owned Chinese companies by job seekers. Those who chose to work for foreign companies preferred their corporate culture and environment.
Sixty-one percent of all job seekers who put private Chinese companies as their first choice were at management level, indicating that experienced and senior job seekers prefer them.
For more than three decades, foreign companies have flourished in China. As "golden brands", they had never been more popular or desirable among Chinese employees. However, after the 2008 global financial crisis, some foreign companies cut down production, reduced the size of their staff, and some even shut down operations.
At the same time, more Chinese companies have gradually begun to enjoy higher social status and gained their position on the international stage, changing the landscape of China's talent.
Moreover, all human resources management at foreign companies who expressed an opinion said their organizations had been affected by Chinese private companies in terms of competition for talent. Sixty percent of them anticipate this will increase. However, only 17 percent of Chinese private companies reported any impact from foreign companies.
Surprisingly, few foreign companies are responding to the challenge. The percentage of foreign companies that have taken measures is lower than that of Chinese private companies.
The margins are especially notable with regard to investing in talent by increasing compensation and benefit packages. The survey found 10 percent more private Chinese companies than foreign companies would go down this route. The gap widened to 16 percent when it came to offering tempting training incentives and learning opportunities.