asiathechallenges

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There is an increased demand for more skilled and multicultural talent Hiring the right talent is the primary source of competitive advantage Recruiting the right talent is a critical business priority Having a strong global EVP that is localized to each key market is essential Implementing a targeted and cost effective sourcing strategy is crucial KEY TRENDS IN THE ASIAN TALENT MARKET IN TODAY’S SCARCE TALENT MARKET: Talent is often “not familiar” with Companies as employers. They do not always know where to find their ideal talent or how to attract them Their offers don’t get accepted They lose talent to other companies They spend a lot of money on advertising to attract people and fail to get them They use language and images that students don’t understand Engineering and IT students are in high demand across industries Common trends among most fortune 500 companies… SOURCE: NOVA GLOBAL TALENT STRATEGY INDICATOR 2011 Based on a survey sent to Fortune 500 companies and 2010 Deloitte Technology fast 500 globally

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Great report of hiring patterns and challenges across Asia.

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Page 1: Asiathechallenges

There is an increased demand for more skilled and multicultural talent

Hiring the right talent is the primary source of competitive advantage

Recruiting the right talent is a critical business priority

Having a strong global EVP that is localized to each key market is essential

Implementing a targeted and cost effective sourcing strategy is crucial

KEY TRENDS IN THE ASIAN TALENT MARKET

IN TODAY’S SCARCE TALENT MARKET:

Talent is often “not familiar” with Companies as employers.

They do not always know where to find their ideal talent or how to attract them

Their offers don’t get accepted

They lose talent to other companies

They spend a lot of money on advertising to attract people and fail to get them

They use language and images that students don’t understand

Engineering and IT students are in high demand across industries

Common trends among most fortune 500 companies…

SOURCE: NOVA GLOBAL TALENT STRATEGY INDICATOR 2011 Based on a survey sent to Fortune 500 companies and 2010 Deloitte Technology fast 500 globally

Page 2: Asiathechallenges

66% Of global employers will increase their hiring during 2012

92% Of Fortune 500

companies will focus more on attracting the right talent during the next three years

1/3 Have few resources on

the ground in Asia Pacific, which will experience the largest recruitment growth over the next three years

57% Say the economic

downturn has led to re-

evaluate efficiency of

recruitment efforts

83% Say their current

access to top students at schools where they don’t have campus presence is limited or non-existent

STATISTICS FROM SURVEY AMONG FORTUNE 500 COMPANIES

SOURCE: NOVA GLOBAL TALENT STRATEGY INDICATOR 2011 Based on a survey sent to Fortune 500 companies and 2010 Deloitte Technology fast 500 globally

Page 3: Asiathechallenges

Over the next 3 years, employers are expecting significant recruitment growth in Asia Pacific, but many of

them are not prepared and view those same markets as most challenging.

APAC – KEY SOURCE OF FUTURE TALENT

China, India, Hong Kong, Indonesia, and

Singapore will experience the largest

recruitment growth over the next 3 years

Asia Pacific will be the most challenging

region with respect to sourcing ideal talents

1/3 of employers do not have strong

recruiting presence in those markets at this

time

Future Expectations per region/market

Page 4: Asiathechallenges

4

• INCREASING DIFFICULTY TO

RECRUIT TALENT ACROSS

APAC COUNTRIES – HIGH

DEMAND FOR SKILLED LABOUR,

EXPERIENCED PROFESSIONALS

AND MANAGERS

• QUALITY OF CANDIDATES STILL

A CHALLENGE – MAJORITY OF

EDUCATIONAL INSTITUTIONS OF

POOR QUALITY

• EXPLOSIVE GROWTH IN ASIAN

NATIONALS STUDYING IN THE

WEST – GLOBAL SOURCING

BECOMING CRUCIAL FOR

MULTINATIONALS

• Multinational companies lose

ground to national champions

• National as well as

multinational companies in

investment and growth mode

– increasing the pressure on

the talent market

• Millennial trends are seen in

Asian students and young

professionals influence

employer selection

• Retention a persistent

problem

• Concern over “Job Hoppers”

(2 year average tenure –

attrition rate 20-30%, up to

50% in China)

• Monetary reward and future

career opportunities the

main driver in employer

selection

Talent Sourcing Employer attractiveness Cultural differences

APAC MAIN CHALLENGES FOR EMPLOYERS

Page 5: Asiathechallenges

…to 7 companies in the Top 10 in 2011 China: From 2 companies in the top 10 IDEAL™ Employer Rankings in 2006… Company Rank 2006

Procter & Gamble 1

McKinsey 2

Citigroup 3

HSBC 4

China Mobile 5

Bank of China 6

PricewaterhouseCoopers 7

KPMG 8

Morgan Stanley 9

The Boston Consulting Group 10

Company Rank 2010

Bank of China 1

Procter & Gamle 2

China Mobile 3

China Development Bank 4

ICBC 5

CICC 6

Citi 7

SGCC 8

HSBC 9

PetroChina Company 10

What are the strong factors that domestic companies have?

Financial strength and market success

Secure employment and professional training and

development

Offer a comfortable physical work environment and a

friendly work environment

Good prospects for high future earnings and competitive

benefits

ASIA 2006 TO 2011 – THE RISE OF LOCAL FIRMS

Why aren’t international companies attractive to

China’s top talent?

I do not feel the career opportunities are

attractive enough

The work environment is too competitive

I do not perceive that I would develop at that

employer

Key conclusions…

Page 6: Asiathechallenges

SOURCE: NOVA GLOBAL TALENT STRATEGY INDICATOR 2011 Based on a survey sent to Fortune 500 companies and 2010 Deloitte Technology fast 500 globally

Top 5 countries where employers recruit

international students:

1. UK

2. USA

3. China

4. Germany

5. France

Primary employment markets for which

employers recruit international students:

1. China

2. India

3. France

4. UK

Do you recruit international students for

roles in their home countries?

More and more organizations attempt to bring international students back to their home countries!

58% of employers say they recruit international students (occasionally or frequently) for roles in their

home countries

ASIAN STUDENTS STUDYING ABROAD IN HIGH DEMAND!

Never Occasionally Frequently

41% 35%

23%

Page 7: Asiathechallenges

50%

26%

10%

5%

8%

I plan to work in my current country for 2-3 years before moving back to

my home country

I plan to work in my current country

I plan to work in my home country

I don't know

Other options

Plans for future employment – Asian students abroad

THE MAJORITY OF ASIAN STUDENTS ABROAD PLAN TO RETURN HOME

Page 8: Asiathechallenges

23%

77%

22%

78%

Asian

students

in US

Asian

students

in Europe

18%

82%

32%

68%

Do you have enough information about career opportunities available for you in Asia?

Have you been approached by employers based in home country?

ASIAN STUDENTS ABROAD NOT INFORMED ABOUT OPPORTUNITIES BACK HOME

Yes No

Page 9: Asiathechallenges

9

61 %

59 %

52 %

50 %

49 %

48 %

39 %

36 %

26 %

25 %

19 %

21 %

22 %

32 %

28 %

24 %

15 %

18 %

19 %

9 %

4 %

4 %

Communication

Technical competence

Practical experience

Business acumen

Team leadership

Adaptability

Sales

Management

Financial expertise

Theoretical knowledge

Administration/OrganisationSkills Desired

Skills Missing

What type of skills are you looking for in new hires?

What are the skills that your new hires lack the most?

THERE’S STILL A MISMATCH IN SKILLS DESIRED VS. CURRENT SKILLS

Page 10: Asiathechallenges

10

Japan Hong Kong

China

Singapore

India

1. Banks 2. Financial Services 3. Auditing and Accounting 4. Business services and operational consulting 5. Travel and leisure

1. Banks 2. Financial Services 3. Auditing and Accounting 4. Business services and operational

consulting 5. Travel and leisure

1. Financial services 2. Investment banking 3. Accounting (public) 4. Private banking 5. Hotel/restaurant/tourism/hospitality

1. Banks 2. Financial Services 3. Auditing and Accounting 4. Management consulting 5. Public sector & Governmental Agencies

1. Banks 2. Auditing and Accounting 3. Financial Services 4. Management consulting 5. Business services and operational

consulting

THE MOST ATTRACTIVE INDUSTRIES TO BUSINESS STUDENTS

1. Engineering and manufacturing 2. Automotive 3. Telecommunication Services 4. Aerospace and defense 5. Hardware equipment

1. Engineering and manufacturing 2. Banks 3. Public sector and Governmental Agencies 4. Educational and research institutions 5. Construction and materials

1. Engineering and manufacturing 2. Chemicals 3. Aerospace and defense 4. Industrial engineering 5. Pharmaceuticals and biotech

1. Engineering/manufacturing 2. Academic research 3. Chemical/petroleum 4. Engineering consulting 5. Government/public service

Page 11: Asiathechallenges

Top Career Goal Trends in APAC

Local Differences – Business

China: To be a leader or manager of people

Japan: To be autonomous or independent

Hong Kong: To be dedicated to a cause or to feel that I

am serving a greater good

Singapore: To have work/life balance

India: To be a technical or functional expert

-What career goals do you hope to attain within three years of graduation?

Local Differences – Engineering:

China: To be a leader or manager of people

Japan: To be a technical or functional expert

Hong Kong: To be secure or stable in my job

Singapore: To have work/life balance

India: To be a technical or functional expert

Business 1. To have work/life balance

2. To be secure or stable in my job

3. To be a leader or manager of people

4. To have an international career

Differences do occur on a country by country basis in the ordering of the above career goals and the addition of country-

specific career goals.

Engineering 1. To have work/life balance

2. To be secure or stable in my job

3. To be a technical or functional expert

4. To be a leader or manager of people

THE MOST IMPORTANT CAREER GOALS

The local differences are based on the biggest positive difference to the average among the career goals in each market.

Page 12: Asiathechallenges

Business 1. Good prospects for high future earnings

(Remuneration & Advancement Opportunities)

2. Will enable me to have good work/life balance (People

& Culture)

3. Good reference for future career (Remuneration &

Advancement Opportunities)

4. Professional training and development (Job

Characteristics)

5. Offers a friendly work environment (People & Culture)

My IDEAL™ employer should offer. . .

This data excludes Singapore as the data due to differences in the methodology. The local difference is based on the biggest positive difference to the average among the Top 5 attributes in each market.

Engineering 1. Challenging work (Job Characteristics)

2. Will enable me to have good work/life balance

(People & Culture)

3. Good prospects for high future earnings

(Remuneration & Advancement Opportunities)

4. Offers a creative and dynamic work environment

(People & Culture)

5. Secure employment (Job Characteristics)

Local Differences – Business:

China: Competitive benefits (Remuneration &

Advancement Opportunities)

Japan: Secure employment (Job Characteristics)

Hong Kong: Professional training and development (Job

Characteristics)

India: Financial strength (Employer Reputation & Image)

Local Differences – Engineering:

China: Competitive benefits (Remuneration &

Advancement Opportunities)

Japan: Challenging work (Job Characteristics)

Hong Kong: Professional training and development (Job

Characteristics)

India: Leadership opportunities (Remuneration &

Advancement Opportunities)

ASIAN STUDENTS’ IDEAL EMPLOYERS

Page 13: Asiathechallenges

13

EXPECTED ANNUAL SALARY

Page 14: Asiathechallenges

14

OUT OF ALL THE MAJOR ASIAN COUNTRIES, CHINA ACCOUNTS FOR THE MOST

OVERSEAS STUDENTS IN US FOLLOWED BY INDIA AND SOUTH KOREA

Japan

21K

South

Korea

73K China

158K

India

103K

Vietn.

14K

Taiwan

25K

Number of Chinese born students in USA went up by 23,3% between 2010 and 2011

Number of undergraduate Chinese students in USA

increased by 43% between 2010 and 2011

Page 15: Asiathechallenges

15

3. NY University

1800

Total Chinese Students Undergraduate Level Graduate Level

1. UCLA

CHINESE STUDENTS ARE TO A LARGE EXTENT SPREAD OUT IN USA, MAKING IT

DIFFICULT FOR COMPANIES TO FIND THEIR IDEAL TALENT

2. Univ. of Illinois

5. Columbia University

1800

Total USA

158 000 57 000 77 000

1600 1900

4. Purdue Univ.

1600

Page 16: Asiathechallenges

16

77 000 Chinese study in US

on Graduate level 10% plan to go back to

China after graduation

50% consider to go

back to China after graduation

20% study computer science

19% study engineering

Total potential sourcing base:

28% study business

62 370 46 970 21 560 2 156 12 936

THE ACTUAL SOURCING BASE IS MUCH SMALLER THAN MOST COMPANIES THINK AND

THE COMPETITION FOR OVERSEAS TALENT IS FIERCE

Page 17: Asiathechallenges

17

2. USA

104 000 14 000 63 000

Total Indian Students Undergraduate Level Graduate Level

1. UK

41 000 - -

5. SWEDEN

1900

3. FRANCE

1700

4. GERMANY

4000

- -

- -

- -

WHERE AND WHAT DO INDIAN STUDENTS STUDY?

Page 18: Asiathechallenges

18

63 000 Indians study in US

on Graduate level 10% plan to go back to

India after graduation

50% consider to go

back to India after graduation

20% study computer science

37% study engineering

HOW BIG IS YOUR TARGET GROUP?

Total potential sourcing base:

39 690

15% study business

27090 9 450 945 5670