Two and a half years after it started, the Covid-19 pandemic is still greatly impacting businesses in China at all levels. Especially the ‘zero-cases policy’ is creating increasing difficulties to individuals and businesses in the mid-long term. 

 

From HR perspective, for companies, especially foreign companies, one of the major concerns today is how to attract and retain international talents, considering the exodus of foreign nationals and the scarcity of new talents coming to China. In some specific industries, international competences are hardly replaceable by local workforce and the increased scarcity of foreign talents is creating many challenges. 

 

International businesses that provide internal rotations of international profiles now, find themselves having to look outside their own reality to overcome the difficulty of moving talents in China. The immediate effect is that businesses are willing to offer highly competitive salary to attract and retain international resources and others are turning to local employees to bridge the gap.  

 

The peculiarity of China job market challenges European companies in attracting and retaining local employees, as many are the job opportunities rising all at once. In addition, it is not easy to find qualified resources, particularly in terms of soft skills”, “critical thinking” and “practical knowledge; an issue present for several years but exacerbated in the last period due to the scarcity of international resources, which led businesses to look at the pool of local candidates. 

 

In the long run, this localization strategy of the team might significantly impact the management and communication between HQs and the China business. Both foreign and Chinese are unable to travel to HQ for information exchanges, networking, training, and sharing of expertise. The risks facing are the lack of diversity in the team, and the isolation of China operations

All these elements have led to an increase in the demand for international resources which is unbalanced with respect to the current market offer. Currently, businesses in China are monitoring the situation for their next moves, and we, Consea Group, with our team in Shanghai will keep a close eye on it for you. 

 

 

Authors: 

Gaia Ceccatelli – Country Manager China 

Chiara Altomonte – General Manager and Head of the Fashion & Retail division