Recruiting in China

By Michael Connolly

Want to work in Shanghai? Many people from all over the world do. There are more people from other countries who want to come live and work in Shanghai than there are jobs with expat salaries. In the last few years, the job market has been flooded with educated and experienced overseas Chinese or overseas educated mainland Chinese being attracted to the same thing other expats are attracted to -- the lure of riding the booming economy. With issues of culture, language, disparity in pay scales, and suitable job availability, there is not always an easy solution to finding a comfortable niche. Many seek to move to here without the benefit of company support and an expat package. One recruitment industry manager indicates an educated guess of less than 20% of the expats in China is here on an expat package. Given the range of talents and available positions, a job seeker might break down potential opportunities:

Get hired by a company for a position in China with relocation.

(the expat relocation option). Most of the people who are getting expat salaries now are in senior management. Directors, project managers, and technical specialties are also being hired. Many, if not most, if the managers hired into these positions get hired in their home country and relocated here. At this point, this is reserved only for senior managers and technical experts. Jobs in this category also tend to have the best salaries and the best perks. Even so, the benefits offered these days are not what they used to be. Shanghai is not a hardship post, so even though salaries maybe similar to what they make at home, the perks are not what they used to be.

Relocate to China Independently.

The job seeker can pick up a position as a local expat hire. According to a 2003 Amcham survey, there is a trend to hire locally even for expat positions because hiring a person in this situation often brings added benefits to the company. Hiring a local expat is less expensive. Expats already living here are already culturally acclimated, and they tend to already have a solid set of contacts in China, which potentially makes them more valuable.

Get a job on the local economy at local or semi-local wages.

This is not a desirable option for income, but in many cases, is an option for living here to learn the language and begin making contacts. Many come to fill English teaching positions and develop their network to work themselves into a niche. However, even these positions usually require education and credentials unless it is a short term internship.

Start a new business.

This is an option if the job seeker has some experience and some capital and requires that they have some contacts, partners, and advisers that can help navigate the maze of pitfalls. The most difficult option to execute but potentially the biggest reward if done well.

Even with education, credentials, language, and experience it is still a highly competitive market. According to Wang and Li in their article "Who has the edge?", just being educated overseas is not enough. Local mainland hires with experience and ability are more common place than even 5 years ago. The cost of the new hire is more significant factor for many companies and expat packages are being offered much less often. Being bilingual is a given requirement for just about every significant job. Soft skills and the demonstrated ability to manage Chinese staff is a huge necessity. Hiring managers are looking deeper into what is written on resumes and expecting more from those who are offered.

The process of finding a position in China that pays an expat salary is increasingly difficult. It is combination of skill, experience, contacts, and luck. This situation leaves few options to the job seeker who wants to work in China. Each option has its own set of requirements and its own set of pitfalls. However, the lure of boom here in China is too much to be ignored and many are arriving here to carve out their niche.