The big talent migration

Once viewed as the greener pasture in China, multinational corporations are now getting increasingly shunned as Chinese workers flock to domestic enterprises which they say offer better career prospects and remuneration

Chinese have always aspired to work for big-name multinational companies (MNCs), associating such organizations with better career prospects and being more prestigious than domestic companies.

According to Taiwan-born Chang Ping-Chih, working for an MNC used to be seen as the best recognition of one's abilities and a means of standing out from the crowd.

"Back then top-notch students were drawn to large foreign firms. It's like an endorsement that you are the crme de la crme," said the 40-year-old.

The tides, however, are changing, as evidenced by the manpower situation in some of the leading US technology firms in China. High-profile players such as Uber and Airbnb have been found to be struggling to secure leadership roles for their China operations. According to the Wall Street Journal, Uber China was being run without a CEO prior to its buyout by Didi Chuxing.

The changing sentiments on the ground are reflected in the latest survey by global recruitment specialist Michael Page which points out that 55 percent of Chinese mainland companies will be increasing their headcounts this year. In contrast, just 41 percent of MNCs based in China are looking to do so.

"The reason for this gap is that domestic companies are more optimistic about the economic outlook while multinational corporations are struggling to achieve better performances and reduce labor costs in China," said Peter Smith, managing director of Michael Page East China.

One reason why Chinese companies are optimistic about the financial outlook is that, unlike the matured MNCs, they possess more room for growth and have been quickly developing in recent years. The past decade has also seen a broad-based pickup in technological upgrade among Chinese companies. The nation's internet players, for instance, have advanced so quickly in terms of scale and innovation that they are on the cusp of overtaking their global rivals.

In addition, industry experts pointed out that the 2008 financial crisis had affected some MNCs in China so badly that they are still trying to trim their expenses through hiring freezes and layoffs in order to recover. On the other hand, the Chinese economy was largely unaffected by the crisis, having maintained its shape and grown, albeit at a slower pace.

According to Xiao Yun, a software developer in Hangzhou, Zhejiang province, MNCs are no longer held in higher regard than their Chinese counterparts. Xiao had worked for a US company for a decade before quitting to join a local firm.

"When I graduated in 2007, MNCs were a great catch. Today, that kind of glamour is fading away," said the 34-year-old.

"Career opportunities in Western companies that are restructuring and experiencing diminished growth would be limited. Now that my former employer no longer has the best technologies, I need to join a genuine industry leader."

Less competitive payrolls

One of the reasons foreign companies have fallen out of favor with the locals is the fact that their salaries are no longer as competitive as before.

MNCs were known to offer employees merit increases - a pay raise that is determined by one's performance - but this no longer looks to be the norm, with Chinese employees lamenting about lower or even zero increments.

"Last year, merit increase was just 2.5 percent, a far cry from previous years' 6 to 8 percent. I was deeply let down," said Joey Wang, who worked for a German chemicals company for five years before leaving last June.

In contrast, 44 percent of local companies will be offering salary increases of 6 to 10 percent in 2017, according to the Michael Page report.