Major HR Challenges Faced By Best Executive Search Firms In China

For the past several years, China has been the focal point of economical and industrial growth. This has led to a large number of foreign businesses to set up operations within the country. However, finding the right talent to handle the various aspects of their business locally has proven to be an uphill task. Even the best executive search firms in China have to work extremely hard to fulfil the HR needs of business organizations. This is mainly due to the various HR challenges that have stemmed from the various socio-economic changes within the country. The seemingly never-ending demand for top talent is another reason that has led to the evolution of these challenges. The most important of these challenges are discussed as follows.

Lack Of Qualification

Despite the abundance of workforce in China, only about 10% of the employees are qualified to work in international business organizations. This extremely limited talent pool has led to the growth of a fierce competition between foreign businesses. Hiring the most experienced professionals employed by local organizations within the same niche, is also not the right solution. This is because such professionals have little exposure to the employee-centric work environment within international companies. The other alternate of employing expatriate executives, often proves to be too expensive and hence not preferable for smaller setups.

High Employee Turnover

The lack of enough qualified professionals has naturally created a huge gap between the demand and supply of best candidates for executive posts. With the various organizations, trying to woo the best talent with offers of better compensation, perks and incentives, the rate of employee turnover is quite high. In fact, the top 10 executive search firms in China often find themselves, shuffling the most eligible candidates between their different clients. However, the high turnover rate often leads to loss of productivity and reduction in customer satisfaction levels. Therefore the recruitments firms face a major challenge in terms of finding talented candidates who are in no hurry to change jobs.

 

Inconsistencies In Resume

Given the huge demand for top talent and the obvious shortage of the same, it is not uncommon for the recruiting firms to find inconsistencies in candidate resumes. In order to cover up their lack of proper qualifications, candidates often resort to providing false data in their resumes for enhancing their chances of getting hired. The challenge of filtering authentic candidate information to identify the most deserving candidates for various executive positions thus falls on the recruiting firms. This requires them to make extra effort to identify the in-discrepancies in candidate resumes and avoid the failure of recruiting the right professionals.

Increase In Compensation Expectation

One of the main reasons that attracted international business organizations to China was its inexpensive workforce. However, with the significant growth in the demand for qualified and skilled executives, the compensation expectations of the candidates have also risen significantly. This trend has been further boosted by the cut-throat competition between various business organizations to hire top talent with the offer of best salary, perks and incentives. Thus, hiring top executives in China today costs almost the same for business organizations, as similar professionals in their home countries.