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The Geographical Mobility of International Chinese HR Talent

The Chinese economy is booming, its influence is spreading, and the country’s growth is expected to outpace that of any other country in the 21st century. While in the previous quarter, we sensed a slight pause in hiring in China possibly due to the instability in world financial markets, we are now seeing a resurgence of Human Resources (HR) openings, particularly from US and European companies who are recognising the need for strong HR Leaders on the ground in China.

Coupled with this job growth in China however, we are also observing a trend of Chinese HR Leaders seeking positions abroad. This is particularly evident among very senior level HR Chinese professionals currently working in multinational companies in China. The United States, Singapore, Canada and Australia seem to be the most popular destinations for these Chinese nationals. According to the “2011 China Private Wealth Study” released in April by China Merchants Bank and consulting firm Bain & Company, 60% of Chinese with more than $15 million to their name have now left or are planning to leave the country.

With the demand for Chinese HR Leaders and the growth potential in China so robust, why are these Chinese nationals wishing to emigrate? When questioned about their motives for moving abroad, our contacts point to their desire of protecting their assets or having larger families. While the Chinese government has succeeded in lifting millions of Chinese out of poverty and creating a new middle class, affluence alone doesn’t seem to be enough for this group who also desires freedom to own assets, invest freely and have more than one child.

One China HR Director working at a multinational company mentioned that “in China, you can’t really own property. If you buy a house, you own it for 70 years, but then you have to return it to the government. But abroad, if you buy a house, you own it forever,” she said. A Regional HR Vice President spoke about the restrictions placed on taking Renminbi out of the country, making it difficult to purchase assets abroad.

While our senior level HR contacts who possess extensive experience in multinational companies are seeking positions abroad, demand for jobs within multinational companies in China still remains strong among HR professionals who are working in Chinese state owned companies and would like to gain global exposure. These positions are also attractive to Chinese nationals who are living abroad and Singaporeans who would like to gain China experience to add to their marketability but would prefer to do so in a culturally diverse environment.

Chinese state owned companies, particularly those in high growth industries that are willing to promote Singaporeans and Chinese nationals living abroad into more senior level HR positions, also remain of interest to this group of HR professionals. In addition, regional positions that cover more countries within Asia remain attractive to those who are already working in state owned companies but seek exposure outside of China. The challenge lies in filling HR leadership positions within multinationals in China with Chinese HR Leaders that already have multinational experience in China, which is the preference among the multinational companies with whom we work.

Monica Levine, a consultant at Chapman Consulting Group who focuses on placements in China, speaks regularly to multinational companies about the emigration situation. “I often explain to these multinational companies that selecting Singaporeans, Chinese professionals from state owned companies, or Chinese nationals living abroad may be more realistic. Opening their requirements to include HR Leaders from these backgrounds typically results in the most fruitful outcome as these HR Leaders are excited about the opportunity to work for multinational companies in China and thus, may prove to be more dedicated. Because the Chapman Consulting Group focuses purely on senior level HR positions and has extensive HR networks throughout Asia as well as in the United States and Europe, we are able to coordinate with our counterparts in other countries to select the best Mandarin speaking talent for China.”

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