DANBURY, Conn. Dec. 15, 2005 - China´s continuing economic expansion is significantly impacting executive assignments into, out of and within China, according to a benchmark survey released today by Cendant Mobility, the premier provider of global mobility management and workforce development solutions. Senior human resources professionals from 109 global corporations and headquarters in 15 different countries participated in the survey that is highlighted in Cendant Mobility´s report, "2005 Worldwide Benchmark Study: Emerging Trends in Global Mobility: China."
"Companies doing business in China are working hard to ensure their strategies keep pace with the country´s explosive economic growth," said John Arcario, executive vice president of Cendant Mobility. "Whether it´s looking to new cities to locate their businesses, aggressively recruiting or developing existing talent with overseas assignments, or simply increasing their focus on the services they provide their relocating employees, businesses in China are working through a period of significant change."
The study indicated that the rate of growth in executive assignment volume into and out of China is showing no signs of slowing down. Respondents reported an increase in all types of assignments in the past three years and that 90 percent expect the volume for most assignment types to increase or stay the same over the next three years. During the same period, Intra-China and China outbound assignments are predicted to grow at the fastest rates of any assignment type. More than four out of five participating companies - 83 percent - said business strategy, rather than cost focus, is the key consideration driving their overall approach to assignments in China.
Among the most telling findings is the trend of companies looking beyond the traditional Chinese business centers to locate their employees. Respondents indicated they expect to see a sharp increase in executive assignment volume to cities such as Chengdu, Dalian, Tianjin, Qingdao, Shangyang and Chongqing. While only a small minority of multinational companies are currently active in these cities, the number of companies looking to them as assignment destinations within the next three years has grown by more than 50 percent on average. Shanghai and Beijing, the leading business centers, will continue to experience increases in executive assignment volume as well, along with Guangzhou and Shenzhen. China´s booming economic prowess has also brought with it significant challenges related to companies´ needs to find and develop enough senior executives and skilled management professionals to keep up with the pace of growth.
"Companies are responding to these growing demands by aggressively recruiting and developing talent within China itself," said Dan Shao, Cendant Mobility chief representative in China. "Tellingly, 53 percent of companies reported a heightened outbound transfer of Chinese citizens, suggesting interest in sending executives abroad to gain global exposure and bring back advanced management skills." Outbound activity is fairly evenly divided, with 72 percent going to the Americas, 69 percent to Asia Pacific (APAC) locations outside of China, and 65 percent to regions within Europe, the Middle East, and Africa (EMEA).
Cendant Mobility´s survey results indicated further evidence of this increased demand for talent with between 29 and 49 percent of respondents reporting a shortage in skills in job categories such as management and administration, IT and technical, finance and accounting, and sales and marketing. Seventy-four percent of respondents indicated trouble recruiting and retaining executive leadership.
In addition, the survey revealed a diverse group of inbound workers to China. Assignees´ points of origination were well distributed - 32 percent from APAC, 28 percent from the Americas, 24 percent from EMEA and another 16 percent from Hong Kong. Interestingly, only 15 percent of inbound workers were female compared to the outbound worker population of which women constitute
28 percent. The average age of the China-bound assignee is 41, with 81 percent between the ages of 30 and 50; 80 percent are married, with 57 percent accompanied by their families.
The survey indicates that, despite businesses´ awareness of the cultural and family issues executives experience during these international assignments, support for these issues remains mixed. When asked about the "most common reasons for assignment failure in China," Personal Style (55 percent) and Poor Family Adjustment (54 percent) were most frequently cited. Family or Personal Circumstances (83 percent) and Spouse Career Concerns (38 percent) topped the list of common reasons for assignment refusal. Yet surprisingly, only 22 percent of responding companies considered "family suitability" in the selection of assignees to China.
"Companies have been acknowledging the challenges posed by cultural issues, yet the data and anecdotal evidence suggests many companies remain reluctant to adequately support services addressing these needs," said Bill Maxwell, executive vice president and managing director of intercultural services, Cendant Mobility.
Survey Methodology
The "2005 Worldwide Benchmark Study: Emerging Trends in Global Mobility: China" was conducted during the months of June through August 2005. It was sponsored by ChinaSTAFF Magazine. Respondents, who were in most cases senior human resource professionals and/or managers of global assignment programs, completed the survey online. Charts and graphs illustrating the data are available by contacting samantha.rider[at]cendantmobility.com.
Cendant Mobility is the premier provider of global mobility management and workforce development solutions serving the corporate, military, government, and affinity markets. Through its industry-leading outsourcing, consulting, language and intercultural training, logistical support, and supplier management, Cendant Mobility helps the mobile workforces of organizations of all sizes achieve success worldwide. With 50 years of experience, Cendant Mobility helps clients achieve cost reductions and enhances service performance to accomplish its organizational objectives. Cendant Mobility is a subsidiary of Cendant Corporation (NYSE: CD). Visit www.cendantmobility.com for more information.