3 ways recruitment in China has changed in the last 8 years

I have had the privilege and opportunity of working and living in China for the last eight years. I'm originally from the UK and relocated to Shanghai with my family from our London office back in early 2009. I moved to Hong Kong three years ago but have continued to spend a lot of time travelling across China to develop our business.

From a small office in Shanghai, our mainland business has grown so quickly over the last eight years. We now have 10 offices across Greater China. In mainland China alone, we have six offices in Shanghai (Puxi and Pudong), Beijing, Shenzhen, Guangzhou and Suzhou, employing over 300 staff.

During quieter moments or transit periods, I often reflect on the lives of the many Chinese and their families we have touched, in terms of candidates we have placed, the clients whose teams we have helped to build as well as our own team of consultants who have grown tremendously over this period. We are, after all, a people business.

My friends, wider family back home and particularly my professional network ask me all the time how the recruiting landscape in China has changed in the last eight years. My answer — an incredible amount.

Here are three of the biggest changes I have seen over the last eight years:

Change 1: Greater focus on career versus compensation

People in China are increasingly focussed on developing their career and personal skills. Eight years ago, the vast majority of our candidates were very focussed on getting a higher  salary and a bigger job title. Whilst that is still undoubtedly important, now there is so much more interest in learning and development, picking up new skills and staying that bit longer in a company to develop those areas. The best businesses are realising this and implementing genuinely strong development programmes for their staff at all levels. Our clients are also becoming tougher in dealing with candidates or employees whose main focus is money or titles. We have seen many companies pass over demanding candidates with high salary expectations or a jumpy CV in favour of those who have demonstrated a clear ability and willingness to learn.

Change 2: China's pace of progress is (still) mind-boggling

We all know about China's rapid progress. Six years ago, I was involved in setting up our Suzhou office. Construction began in a then up-and-coming but chaotic business district, with lots of buildings in various stages of being built and very few people around.

Fast forward to a few weeks ago, I visited the same area again and the transformation has just been phenomenal. This district of Suzhou is now a modern, cosmopolitan part of the city, buzzing with activity and has a vibe and working atmosphere akin to Shanghai or Hong Kong, complete with brand new skyscrapers, luxury hotels, trendy shops and restaurants. Even after working in China for the past eight years and witnessing relatively slower economic growth, I still feel the overall pace of change is mind-boggling.

Change 3: Rapid rise of domestic companies

Eight years ago, multinational companies (MNCs) were very ambitious and aggressive within China. Economic conditions were tough back in their home countries so China represented the real growth opportunity. At the same time domestic companies were very much seen as the poor cousin. Very few graduates, let alone experienced professionals, wanted to work for local firms. In fact, many of our own consultants were reluctant to take on assignments with domestic companies, either due to challenges in the recruitment process or the perceived lack of prestige of working with such clients.

But the change just in the last two to three years has been dramatic.

MNCs have become much more cautious, almost defensive in their approach, as the reality of making a business truly successful and profitable in China has become clear. At the same time, local companies have gone the opposite way, becoming more aggressive and more ambitious -- almost a 100 per cent turnaround. Domestic companies are now more confident in the future,  more forward-thinking, more innovative. This means they are a lot more attractive for graduates and experienced professionals alike… and our own consultants are now very keen to work with domestic clients. Indeed, our own client list is now dominated by local clients. We work closely with large and start-up domestic companies, forging close relationships and true partnerships.

Even as I reflect on the above changes, I feel there are plenty of lessons for businesses in China going forward. First, as an MNC ourselves, we need to make sure we are still bold, innovative and forward-thinking. Second, companies need to have strong leadership and learning and development programs to help Chinese staff grow in their careers, both at a professional and personal level. Third, the Chinese economy is still growing, albeit at a slower pace – and this means there are still fantastic opportunities available for all business and individuals in China.
 

Summary

The three biggest changes in China's recruitment market include

  • Greater focus on career versus compensation
  • Fast progression 
  • Rapid rise of domestic companies

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