Five things emerging economies can do to attract the best talent

By: Mauro F. Guillén December  08, 2017

Source: https://www.weforum.org/agenda/2017/12/emerging-market-companies-multinational-talent-china-india-attract

Emerging market companies need talent to be competitive in the global marketplace. They have made much progress in attracting it. Barely a decade ago, most young, bright graduates in China and India preferred to work for Western companies. These companies paid better and offered more opportunities for professional growth and advancement.

That was then. Now emerging market companies can attract some of the best talent, locally and globally. In 2016, Alibaba launched a Global Leadership Academy to offer young, aspiring managers from the US and Europe a 16-month stint at its corporate headquarters. It has already poached executives from well-established technology and financial services companies. Dr. Reddy, an Indian pharmaceutical multinational, consistently wins awards in the US for being a great employer.

Fortune magazine’s latest list of the 25 Best Companies to Work For includes Natura of Brazil, Belcorp of Peru, and Falabella of Chile. These companies have dedicated themselves to attracting and nurturing talent for years. However, challenges remain. The allure of working for a Western company is still deeply ingrained in the hearts and minds of university graduates and mid-career managers in emerging markets. Many still believe that compensation levels, bonuses and promotions are more attractive than at local firms. For aspiring managers with an essentially technical skillset, this assumption is correct.

But circumstances are different for those with so-called softer managerial skills. These include the ability to negotiate or work effectively in multicultural teams, complementing a core financial or marketing knowledge. As the service sector grows throughout Asia, the Middle East and Latin America, demand for talent in healthcare, the creative industries, and professional services will soar.

Consider South Korea, which has already made the transition from being predominantly a manufacturing hub to a more diversified service-driven economy. It has created more than four million highly-qualified service jobs in the past decade. As China undergoes a similar transition, it will require at least 40 million educated professionals in the 25 largest cities alone. In the Indian economy, which is far less dependent on manufacturing for growth, demand for this type of talent is even greater.

China has the advantage of a vibrant university system that churns out the largest number of graduates of any country in the world. But it lacks the dynamism of India’s younger population, which seems to have an almost unlimited supply of technical graduates across a number of critical fields. Brazil and Mexico are also starting to reel from smaller young age cohorts.

Competition for talent in China will be acute. This is likely to lead the country’s emerging, rapidly-growing firms to redouble their efforts at attracting talent, including from abroad. Emerging Chinese multinationals report having less trouble attracting talent for their international operations than for positions in China. To a large extent, this is due to the unpleasant living conditions in the country’s major cities. The air quality and traffic congestion deter many foreigners from considering a move. While Indian companies have more qualified locals available to them as potential hires, they will also face challenges in the future when attracting foreigners to work in India.

Future strategies for talent development in emerging markets must address at least five key areas:

– Allocating resources to education, not just in technical fields but also in soft skills

– Ensuring that employment conditions and career prospects at the largest emerging market multinationals continue to improve, so that working for them is at least as attractive as working for a Western firm

– Attracting talent from other countries to positions both in the home country and around the world

– Making life in the largest cities of the emerging world more pleasant, convenient and affordable

– Ensuring that local firms do not have to pay a premium for talent. In the long-term, this would undermine the competitiveness of both companies and the economy

Companies in emerging markets cannot win the competition for talent by themselves. A country’s physical infrastructure, education and quality of life are key factors. Only collaboration with governments, from the local to national level, will achieve the outcome these companies need.

China’s Official Think Tank Releases ‘383 Scheme’ for Future Reforms

Nov. 5 – The Development Research Center (DRC) of China’s State Council, which is known as the official think tank of China, recently released the “383 Scheme” for the Third Plenary Session of the …

GIBS Information Centre / GIBSIC‘s insight:

China – 383 scheme:

Innovation system

  • Creating a market environment with less government intervention and more market regulation and toleration in a new technology and business mode

Openness to outside world (especially in service sector)

  • Open energy, telecom, and financial industries to competitive foreign investors
  • Use “negative list” in industry access and unify laws that regulate domestic investments and foreign investments in China to build a fair and competitive market environment
  • Lessen upfront examination and approval procedures for foreign investment
  • Improve the export tax refund system, implement structural decreases in tariffs, and escalate the establishment of free trade zones (i.e. most recently, the China-Japan-Korea FTA)

– See more at: http://www.china-briefing.com/news/2013/11/05/chinas-official-think-tank-releases-383-scheme-for-future-reform.html#sthash.5uWE6nk4.dpuf

See on www.china-briefing.com

The geopolitics of African resources: China plotting to tap them in new, ‘de-Americanized world’ | World Tribune

GIBS Information Centre / GIBSIC‘s insight:

China, Africa – geopolitics : “On Oct. 13, 2013, the official Xinhua news agency published an official commentary stating that “it is perhaps a good time for the befuddled world to start considering building a de-Americanized world”. The commentary surveyed the “abuse” the entire world had suffered under U.S. hegemony since World War II. The situation had only aggravated since the end of the Cold War, Xinhua argued. “Instead of honoring its duties as a responsible leading power, a self-serving Washington has abused its superpower status and introduced even more chaos into the world by shifting financial risks overseas.” To further its own unbridled ambitions, the U.S. stoked “regional tensions amid territorial disputes, and fighting unwarranted wars under the cover of outright lies”, Xinhua explained.   –   The Xinhua commentary warned that with U.S. society and economy collapsing, Washington was now tempted to intensify the abuse of the rest of the world in order to save the U.S. “Such alarming days when the destinies of others are in the hands of a hypocritical nation have to be terminated. A new world order should be put in place, according to which all nations, big or small, poor or rich, can have their key interests respected and protected on an equal footing.” Xinhua concluded by suggesting that the PRC, being inherently a developing country, is the rising power best suited to lead this global transformation and de-Americanization.”

See on www.worldtribune.com

China’s Outbound Investment – It’s Going into Asian Infrastructure Development

Western MNCs need to be more savvy about Asia if they want to participate Op-Ed Commentary: Chris Devonshire-Ellis Oct. 8 – It’s been a busy week for Chinese politicking as the nation has enjoyed i…

GIBS Information Centre / GIBSIC‘s insight:

China, Asia – “But if Asia is the next big thing, how can Western companies participate? Clearly, that growth in middle class consumerism to 1.75 billion people across Asia by 2020 is going to be a huge draw for Western corporations that “make stuff.” However, if you’re not familiar with Asia, then you need a base to start. Singapore is probably the most logical – it’s the center of ASEAN, houses the APEC secretariat and is the de facto regional services, finance and intelligence hub for Asia. It also has a low tax rate – 17 percent profits tax on corporations. It also possesses, through its membership of ASEAN, free trade agreements with both China and India, a whole raft of bilateral double tax treaties with many countries around the world and a free trade agreement with the United States. “

See on www.china-briefing.com

China, Kenya sign deals worth $5bn | The BRICS Post

China says it will also increase imports from Kenya to balance the trade deficit.

GIBS Information Centre / GIBSIC‘s insight:

China – Kenya

“British officials had warned before the election that it would have only “essential contact” with Kenyatta if he was voted into power.   “Choices have consequences,” warned US Secretary for African Affairs Johnnie Carson in reference to Kenyatta before Kenyans went to vote in the crucial elections.   –   East-Africa’s biggest economy recently discovered large reserves of oil and gas, and according to the International Monetary Fund (IMF), the country’s GDP will grow at 5.6 per cent in this year.”


See on thebricspost.com

Innovation is now a strategic priority for China

See on Scoop.itBusiness education @GIBS

Innovation is now a strategic priority for China People’s Daily Online Leading multinational corporations like Siemens, General Electric, Proctor & Gamble, PepsiCo and Nokia have ramped up their China innovation centers, tasking them to create…

ChezINFO!‘s insight:

strategic priority – China

See on english.peopledaily.com.cn