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Help Wanted: China and India’s Search for Experienced Managers

With populations topping one billion and economies growing at a rapid pace, China and India are finding themselves in need of qualified managers. Draeger explores the tactics employers in these emerging markets are taking to locate and hire critical talent—even if it means going overseas to find it.

As businesses continue to invest in the rapidly developing markets of China and India, they are becoming increasingly aware of the challenges involved in finding the right talent to manage their investments. Their investment must be managed by a high-caliber team with expertise far beyond traditional business skills. As human resource professionals must recruit local managers to fill these positions, they must know how to approach their recruitment search and where to find suitable candidates.

China
The demand for qualified managers in China is staggering. According to the McKinsey Global Institute, it is estimated that China will need 75,000 globally effective leaders over the next 10 to 15 years, and that there are only 3,000 to 5,000 individuals in China who meet the criteria.
Local hires understand the Chinese business environment, the language, and the culture, but many lack international business experience, regional management expertise and, in many cases, fluent English skills. Nurturing a local employee and developing these skills is a slow process. It also is risky. The investments in China are creating so many opportunities that there is high demand for local staff and, therefore, high staff turnover.

As the political and economic environment evolves in China, more Chinese students will be educated in Western markets and will begin to acquire the global experience needed to manage a multinational business in China. Over time, the number of returning Chinese nationals will increase and the labor pool of qualified managers will expand. In the meantime, many employers are choosing to hire Western employees to fill the gap. The most desirable candidates will be well-versed in international business and be culturally savvy. The majority of them, however, will need intercultural training.

India
An advantage of hiring local managers in India, as opposed to China, is that the majority of them will speak English. Furthermore, Indian students have been attending university and working in Western markets for decades. Having lived and worked around the world, they not only have gained a worldly perspective, but these professionals also have become familiar with other key areas of business, including global business operations and cultural diversity—which makes them very attractive candidates.

As in China, human resource professionals are realizing that they need employees who not only understand the Indian culture and local business practices, but also have global experience and have worked in a variety of international cultures.

Subsequently, these employers are focusing on hiring “returning” Indians who have acquired the necessary skills. This creates a unique talent pool of available candidates for companies investing in India. These professionals often are recruited by multinational companies and return to India to begin new careers in their homeland. Or, they are returning home on their own and finding new jobs locally. Both of these factors are creating opportunities for employers to find suitable talent to manage their businesses in India.

Finding the Right Talent
Despite the existing talent pool of Indian nationals, many human resource professionals still are finding it necessary to hire Western employees to manage their overseas investments. If they do, in fact, recruit a Westerner, the employee must be relocated and provided with ongoing support during their assignment. Providing them with intercultural training, finding them a place to live, and navigating tax and immigration laws are just a few of the challenges.

For employees with families, assisting them with finding the best school for their children and providing spousal support services also can help increase the likelihood of a successful assignment. If the employee is a returning Indian national, there are other issues to consider. Some Indians have been living overseas for 10 or 15 years since leaving university. The India they return to will be very different from the one they left. They have been used to living life in the West and likely will face the same adaptability issues as a Western employee will when they arrive in India. In fact, returning Indians sometimes have even more difficulty adjusting as they have higher expectations of a smoother settling-in process than expatriates do, and may become frustrated when they face challenges.

Still, whether companies choose to recruit from abroad or find talent in the domestic market, finding the right talent is just the beginning. As China and India continue to grow, skilled managers will be needed not only to lead companies forward, but to train the nations’ next generation of business leaders.

Source: MOBILITY Magazine
Publication date: 25th March 2009
 

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