Multinational companies in China are bracing for a renewed talent war, with job-hopping and poaching expected to increase along with economic recovery.
During the global downturn, foreign companies in China had little difficulty retaining staff, but conditions are changing as the country helps lead the world out of recession.
Carl Redondo, general manager for Asia-Pacific at Hewitt Associates, a human resource consultancy, said: “The war for talent is back on and bigger.”
Hewitt estimates that the average voluntary employee turnover rate for foreign companies in China will this year return to pre-crisis levels of more than 15 per cent. Last year, the rate fell to 14.2 per cent from 17.4 per cent in 2008.
While the talent shortage is expected to be most acute for highly skilled professionals in sectors such as chemicals, pharmaceuticals and financial services, Chinese export-related companies face a severe shortage of factory workers.