Adapt talent retention and attraction strategies to win talent war

More than a year after the broad crackdowns on the Technology industry in China, many organisations have had to reassess their business models and strategies to adapt to the regulatory changes. More recently, major cities that house some of China’s homegrown Internet giants and well-known international technology firms like Shenzhen and Shanghai are on high alert as they deal with a resurgence of Covid-19 cases threatening the established status quo. 

Jessica Wang, Managing Director at Hays China observes, “Far from leaving the industry in limbo, these events have catalysed technology investments, especially in the ‘hard tech’ space such as semiconductors, robotics, and medical devices. International companies have progressively set up technology hubs in key cities in China that focus on software or research and development (R&D).”

“As a result, we’ve also seeing higher demand than ever for technology talent in major Chinese cities, stretching out an already skills short market.” 

Key skill sets that are becoming a priority for these companies are largely within the software engineering and R&D space. Most of the demand volume is concentrated within industries like new/renewable energy, semiconductors, automotive, and medical devices.
“Due to the extremely limited supply of candidates with the niche R&D skill sets at all levels of seniority, employers are more than willing to compensate top talent generously, up to 30% increase on average.” 

Yet, Jessica says, employers have become a little more exacting when it comes to assessing candidates. For instance, not only are candidates expected to have product design experience and a wealth of programming languages on their tool belt, they are also expected to bring commercial and business acumen to the table, regardless of seniority level. 

“Companies with aggressive growth plans are looking for employees who need minimal training and can hit the ground running from day one. Even though the market is rich with fresh technology graduates, very few of them have the requisite experience or skill sets employers need. Competition is fierce for qualified candidates, who are few and far between.”

Given this, Jessica advises employers to focus more on talent retention strategies. Aside from salary, benefits, and career development and pathing, working professionals in China are becoming more vocal about their preference and desire for greater flexibility and work-life balance, and are making decisions about their employment accordingly. This is especially apparent with the upheaval brought about by the resurgence of the pandemic. 

“Make sure to focus on employee engagement – this is critical to building a successful retention strategy, given that companies, especially those in the Technology sector, are increasingly shifting towards hybrid or remote working patterns. No matter where they work out of, ensuring employees have access to the same experience and benefits will go a long way in helping them feel a sense of belonging to the company,” says Jessica.  

“And when it comes to attracting fresh talent into the company, the most important thing is to be aware of market conditions and be realistic about the availability of talent. Focus on trainability rather than whether the candidate meets all the skills requirements at that point in time. As for candidates, continuous upskilling is critical to stand out and get that competitive edge.”

An overview of trends in China’s Technology sector:

•    Despite the resurgence of the pandemic, expected disruptions to business activities in the Technology sector is minimal and organisations are expected to press on with a razor-sharp focus on growth. 
•    The rising demand for technology talent is stretching the skills gap, given that the market is now seeing a bigger proportion of fresh Technology graduates than experienced professionals. 
•    High hiring volumes are seeing larger organisations turn to recruitment process outsourcing, intensifying the battle for candidates in a talent short market. 
•    Companies are focusing on hiring software engineering and R&D talent and are willing to compensate top candidates generously. 
•    Aside from technical skills in languages like Golang, Python, cloud ecosystems like AWS, and SAP ERP, candidates are also expected to demonstrate business acumen, bilingual ability, communication, and stakeholder management skills. 

 

 

 

 

 

Hays plc (the "Group") is a leading global professional recruiting group. The Group is the expert at recruiting qualified, professional and skilled people worldwide, being the market leader in the UK and Australia and one of the market leaders in Continental Europe, Latin America and Asia. The Group operates across the private and public sectors, dealing in permanent positions, contract roles and temporary assignments. As at 31 December 2021 the Group employed c.12,100 staff operating from 254 offices across 20 specialisms. For the year ended 30 June 2021:

 

– the Group reported net fees of £918.1 million and operating profit of £95.1 million;
– the Group placed around 60,000 candidates into permanent jobs and around 220,000 people into temporary roles;
– 17% of Group net fees were generated in Australia & New Zealand, 27% in Germany, 22% in United Kingdom & Ireland and 34% in Rest of World (RoW);
– the temporary placement business represented 61% of net fees and the permanent placement business represented 39% of net fees;
– Technology is the Group’s largest specialism, with 26% of net fees, while Accountancy & Finance (14%) and Construction & Property (12%), are the next largest