Recruiting in China

Our judiciary remains fiercely independent," Secretary for Security Lai Tung-kwok said at a luncheon address in London last week. "We uphold the rule of law and Hong Kong people enjoy a wide range of rights and freedoms."

An independent judiciary is one of Hong Kong's most positive attributes, especially now that the civil service's image is somewhat tarnished. However, while the quality of judges remains high, there is a troubling shortage of suitable candidates who can move up to the bench.

One reason is that Hong Kong did not develop legal education until very late. The Hong Kong College of Medicine for Chinese produced its first medical graduates in 1892 but the first law graduates from the University of Hong Kong did not appear until 80 years later, in 1972. Because of that, Hong Kong's first local judges were all British-trained. Even then, there were disincentives to serve as judges under the colonial system.

Simon Li Fook-sean, who died recently, was the first Chinese person to serve as a high court judge in 1971 and retired in 1987 when he was vice-president of the Court of Appeal. Throughout this period, he complained bitterly about the discriminatory treatment accorded local judges.

In those days, however, Hong Kong could draw on other sources for legal and administrative talent - not just from Britain but from its colonies around the world. Those expatriate judges served Hong Kong well but many are now retired or close to retirement.

None of the original judges on the Court of Final Appeal in 1997 was locally trained. Currently, only one - Patrick Chan Siu-oi - graduated from the University of Hong Kong, but he is retiring in October and will be replaced by another British-trained jurist, Joseph Fok.

Fortunately, China was pragmatic when it enacted the Basic Law. That document stipulates that only the chief justice of the Court of Final Appeal and the chief judge of the High Court must be Chinese nationals. Other judges - and other legal personnel - can be recruited overseas.

Since 1997, there has been a perhaps understandable reluctance to recruit overseas judges. But Hong Kong has no choice if it is to maintain its high standards. The city itself simply does not have the depth and breadth of legal talent.

Chief Justice Geoffrey Ma Tao-li has acknowledged the problem and said: "So far as I'm concerned, it is better to leave a position vacant than to get people who are not qualified or are not the right people." Of course, positions cannot be left open indefinitely. Already, the waiting time for both civil and criminal cases has lengthened beyond prescribed targets.

Overseas judges are at a disadvantage in not knowing the Chinese language and the local culture. But until Hong Kong can fill the void - by training top legal minds and perhaps also by widening the pool to include more solicitors and academics - there may well be a need to recruit judges from overseas.

Exits of top foreign managers amid health fears predicted to rise in future

Whitney Foard Small loved China and her job as a regional director of communications for a top automaker. But after air pollution led to several stays in hospital and finally a written warning from her doctor telling her she needed to leave the country, she packed up and moved to Thailand.

In doing so, the Ford Motor Co. executive became another expatriate to leave China because of its notoriously bad air. Other top executives whose careers would be boosted by a stint in the world’s second-largest economy and most populous consumer market are put off when considering the move.

Executive recruitment firms say it is becoming harder to attract top talent to China — both expats and Chinese nationals educated abroad. The European Chamber of Commerce in China says foreign managers leave for many different reasons, but that pollution is almost always cited as one of the factors — and is becoming a larger concern.

If the polluted skies continue, firms may have to fork out more for salaries or settle for less qualified candidates. Failure to attract the best talent to crucial roles could result in lost commercial opportunities and other missteps.

Poor air quality has also added to the existing complaints foreign companies have about operating in China. Even though the country’s commercial potential remains vast, groups representing foreign firms say doing business is getting tougher due to slowing though still robust economic growth, limits on market access and intellectual property theft.

China’s rapid economic development over the last three decades has lifted hundreds of millions out of poverty but also ravaged the environment as heavy industry burgeoned and car ownership became a badge of status for the newly affluent. Health risks from pollution of air, water and soil have become a source of discontent with Communist Party rule.

Foreigners regularly check the air quality readings put out by the U.S. Embassy and consulates on their Twitter feeds when deciding whether to go out for a run or let their children play outside.

The pollution has become even more of a hot topic since January, when the readings in Beijing went off the scale and beyond what is considered hazardous by the U.S. Environmental Protection Agency.

At the same time, China’s state media gave unprecedented coverage to the pollution following months of growing pressure from a Chinese middle class that has become more vocal about the quality of its air.

“January was probably the worst,” said Australian Andrew Moffatt, who worked in Beijing before the pollution pushed him to return to Brisbane in March with his wife and 5-year-old son. “Back in November I had been sick and then we went on holiday to the beach in Hainan, and it just reminded me of Australia and I just thought we could be breathing this quality air every single day rather than polluted air in Beijing.”

And it’s not only in the capital where the air pollution is driving expats away.

Ford transferred its regional headquarters from Bangkok to Shanghai in 2009. Four months after the move, Small had her first major asthma attack. “I had never had asthma in my life, never ever had asthma before China,” said Small, who quit the country in May last year.

Her asthma was exacerbated by an allergy to coal, which is the source of about 70 percent of China’s energy. In Shanghai, the problem resurfaced. “Three hospitalizations later, my doctor said it was time to call it quits,” she said.

Her frequent treatments — involving inhalers, steroids and a nebulizer in the mornings and evenings to get medication deep into her lungs — meant the medication became less effective. “I actually got a written warning from my pulmonary doctor and it said you need to reconsider for your life’s sake what you’re doing and so that was it. I didn’t really have a choice, my doctor made it for me,” she said.

Ivo Hahn, the CEO of the China office of executive search consultants Stanton Chase, said that in the last six months, air pollution has become an issue for candidates they approach. “It pops up increasingly that people say, ‘Well, we don’t want to move to Beijing’ or ‘I can’t convince my family to move to Beijing,’ ” he said.

Hahn thinks this trend will only strengthen over the next one or two years because the highest-level executives generally “are not working primarily for their survival.” Such employees, he said, “normally get a decent pay, they are generally reasonably well taken care of, so the quality of life actually does matter, particularly when they have children.”

Some, however, say that China has become too important economically for up-and-coming corporate executives to ignore. It generates a large and growing share of profits for global companies while still offering a vast untapped potential.

“It’s increasingly important for people who want to have careers as managers in multinational companies to have international experience, and as part of their career path and in terms of international experience, China is one of the most desirable places because of the size of the market and growth and dynamism of the market,” said Christian Murck, president of the American Chamber of Commerce in China.

Hahn said the effects of expats refusing to relocate to China aren’t going to be felt overnight, but eventually “either companies will have to pay a higher price overall because maybe candidates may have to commute, as an example, or they may lower their standards or they may offer the position to somebody who may actually not be quite as qualified.”

If the trend worsens, it would have some economic impact, said Alistair Thornton, senior China economist at IHS in Beijing.

“Expats contribute almost nothing to China’s growth because the numbers are just tiny, but intangibly they contribute quite a significant amount” by introducing foreign technology, best practices and Western management techniques “that Chinese companies are harnessing and using to drive growth,” said Thornton.

He is leaving Beijing in June, citing air pollution as one of the factors.

It's good to bring in staff from overseas, but that is only half the job

Since China joined the World Trade Organization in 2001, a great number of its state-owned enterprises have developed businesses overseas. An increasing number of SOEs are also conducting international commerce with other countries. Both trends show us that the need for excellent international talent has become inevitable for SOEs. But the fierce competition among all kinds of companies in the knowledge-based economy has led to an urgent lack of foreign talent in SOEs over the years.

There is no doubt that it is critical for companies to take care of their foreign talent, especially high-end management talent and multitalented expats. From human resource management to human resource development, to retain foreign talent can be presented in every detail. But it is difficult to say whether SOEs have done a good job in retaining foreign talent.

To begin with, I would like to talk about the process of adaptation by foreign talent to the Chinese working environment. SOEs should always bear in mind that foreign employees may not stay at the company till the end of their contract.

If an SOE really wants a foreign talent to stay in the company for a long time, it really needs to take action. For instance, in order to help skilled foreigners get used to the environment quickly, a mentor from the company can be arranged to help the foreign employee with life and work issues. SOEs can also plan team-building activities to encourage them to communicate with local employees. Moreover, SOEs can organize training sessions for new employees so that they can get familiar with the company within a short time.

Another important issue is that fairness, transparency and efficiency in performance appraisals should be improved so skilled foreigners can receive objective feedback about their work. A fair performance appraisal plays an important role in the development of one's career. Foreign employees enjoy positive recognition from their company, while negative feedback may stimulate them to work harder.

It is also very important for a foreign talent to see an SOE's real action. To be specific, if a foreign talent performs very well, he or she expects to see a salary increase that matches what is noted in the performance appraisal.

Developing a better incentive system is also a positive action to take for SOEs.

What needs to be addressed is that both psychological and material incentives should be considered. The psychological incentive refers to an encouraging environment for foreign talent. Positive comment and feedback from management can infuse foreign talent with confidence, which can also develop into work motivation.

As for material incentives, I think SOEs should come up with some smart ones. By saying smart, I mean incentives that are tailored to foreign talent. Take housing subsidies. For foreign employees, a housing subsidy is not really practical. The majority of foreign employees in China rent houses rather than buy them. Instead of paying for the housing subsidy, SOEs could choose to pay for Chinese language courses if they are going to stay in China for a long time.

Another issue is with Chinese medical insurance. The Chinese medical insurance only covers expenditure in Chinese hospitals, but it is difficult for most foreign employees to talk with doctors or nurses in the local language. SOEs should consider foreign hospitals or clinics as options.

Lastly, taking care of the family of a foreign employee is also a good way keeping them. Foreign employees, being in another country, are unable to spend time with their families. Arranging a trip for the family of the foreign employee may be a great idea.

There are still a lot of challenges for SOEs. Attracting and retaining international talent is certainly not an easy task, but it would be helpful for SOEs to solve the issue of retaining talent by considering the suggestions set out here.

The author is CEO & founder of RMG Selection, an Asia-focused human resources and recruitment consultancy.

The living environment has become a growing concern for expatriates working in Shanghai and Beijing, although the two cities topped a list of the most attractive Chinese cities for expats, a new study found.

The survey — 2012 Amazing China, conducted between September and December by International Talent, a magazine under the State Administration of Foreign Experts Affairs — gauged views of 175,400 expats working in China about their favorite Chinese cities.

Among those expats, 1,050 were surveyed about their opinions on the policy, administration, and working and living environments of their cities.

Shanghai and Beijing were topped the list, followed by Shenzhen, Suzhou, Kunming, Hangzhou, Nanjing, Tianjin, Xiamen and Qingdao.

In Shanghai and Beijing, their living-environment scores were lower than those of other cities, said Zhang Xiao, who was in charge of the survey.

Cities such as Suzhou, Kunming and Hangzhou received comparatively high scores in living environment, and that helped boost their rankings, she said.

Despite topping the chart for three years, Beijing and Shanghai underperformed this time in living environment as foreigners living in these two cities have complained about the worsening air pollution, according to the survey.

The smog-shrouded sky over Beijing is discouraging expats from staying longer and scaring away others who would otherwise love to visit, work, and live in the city, the study showed.

"Recruitment has become difficult as the number of foreigners who are applying for teaching positions in Beijing has decreased by at least half compared with the same time last year," said Yang Sha, general manager with Angelina International Placement Service in Beijing, which specializes in hiring foreigners to teach languages in schools in China.

"Air quality is absolutely the main reason," he said.

All four foreign staff members in Yang's company left Beijing this year because of the smog.

One left for the southern city of Xiamen, Fujian province, and the others went back to their home countries, Yang said.

The Makeevs are leaving Beijing this summer. It was a tough decision for the family to make. They've lived here for a decade and have grown attached to the capital's ways, its oddities and its quirks.

But the air pollution, amid a number of concerns, finally became too much for the Russian couple after giving birth to a baby girl last September.

In their home near the East Fourth Ring Road across from Chaoyang Park, the couple stays at home as much as possible on heavily polluted days. Their air purifier runs around the clock, windows stay closed and masks are a must when they do go out.

"Beijing's air got worse in the last year, and this winter was especially bad," said Makeev, who runs an export business in Beijing.

The heavy smog that blanketed eastern parts of China for much of the winter triggered international attention to China's air pollution issue, especially in the capital where some 200,000 expatriates reside.

The US embassy's air quality index classified pollution levels as "beyond the index" several times in January. However, the official index put out by environmental authorities, which usually stands in contrast to the US embassy data, also showed in parts of Beijing that the pollution levels were too high to be read at monitoring stations.

Staying away

"We feel drowsy, we get headaches, we cough. We even noticed differences in the baby's behavior, as she gets cranky and doesn't sleep well," Makeev said. He explained that in Russia, it's common to spend at least two to three hours daily outside to let babies get fresh air.

Besides air pollution, Makeev also worries about food and water quality. The comfortable and cheap cocoon that lured many expats to Beijing is cracking. Rents are up, high prices are being charged for low-quality products and traffic is an ever-worsening chore, he said. The increasingly evident wealth gap is also making him uncomfortable.

In pursuit of better climate and business opportunities, the couple has decided to leave for Malaysia soon.

Makeev's worries are shared among many in the expat community in Beijing, and the couple are not the only ones planning on leaving.

There were at least two high-profile cases of foreigners asking to be repatriated in January, when PM2.5 readings in Beijing climbed to over 800, said Max Price, a partner at Antal International China office, a global executive recruitment corporation. A PM2.5 reading over 500 is already considered serious pollution.

Price told the Global Times that a high-ranking lawyer and a senior technical professional working for two German automobile companies respectively insisted on being repatriated to their original countries and left.

"When I speak to my international colleagues, their first questions are never about how business is going or how I am doing personally. They always ask about the pollution," he said. "It's really something I never experienced before."

When speaking to people as a recruiter, quality of life used to be the third question following the actual duties of the job and the salary, but now it has jumped to second on the list, Price said, adding that this mainly happens with people with families.

A lot of foreigners who are keen on staying in China are turning their attention toward second-tier or third-tier cities, as these have increased employment options and better air quality, said Price.

The recent H7N9 bird flu outbreak has also come to complicate matters.

"A lack of communication and a limited number of reports have made people fear the worse and compare it with the SARS outbreak 10 years ago," he said, noting that these aspects are making Beijing and Shanghai less attractive than other Chinese cities to expats.

Although there is no official data on how many foreigners are leaving Beijing or tourists staying away for fear of the pollution, the Beijing municipal tourism data showed a slump of foreign visitors in February and March this year compared to 2012.

According to the statistics, Beijing saw 165,000 foreign visitors in February, 37 percent less than last year.

Protect yourselves

January's heavy smog has led to anxious discussions among Beijing residents who have been scrambling for protection such as air purifiers and air pollution masks. All the major brands sold out quickly, and many are still out of stock due to soaring demand.

At the meantime, the non-medical term "Beijing cough" went viral on social media in January, referring to the dry cough and scratchy throat suffered by foreigners upon arrival in Beijing.

Richard Saint Cyr, a family medicine physician at Beijing United Family Hospital, told the Global Times that most doctors at the hospital, especially in the emergency room, had not noticed an extraordinary increase in respiratory problems.

"But I certainly saw many people coming in with asthma exacerbations or serious coughing. I've had discussions with a few patients, both foreign and local, who are thinking of leaving Beijing due to the pollution," he said.

Sean Dugdale, an American exchange student with Peking University, said he was hoping to work in Beijing after college but had given up that idea because of the pollution.

When the smog hit the city, Dugdale's family grew worried and sent him an e-mail with pictures showing the smog-covered Tiananmen Square. He has now decided to return to the US after his one-year exchange program ends.

Over the past four or five months, Price noticed cases where some foreigners, mostly at American companies, are asking for "danger money" when negotiating a contract with employers if they are to continue working in Beijing.

Danger money, he explained, is an extra bonus one asks for when confronted with safety risks in the country of employment. Traditionally, this is associated with nations like Angola and Nigeria, where security risks are high, and roughly amounts to 10 percent of one's annual salary package.

"I think many young people are more willing to trade the pollution off against the opportunities that are available in Beijing, particularly given the economy in many western countries right now," said Ashley Howlett, a partner at global law firm Jones Day's Beijing office.

He said there are still a lot of foreigners seeking job opportunities in Beijing, although it is becoming more difficult for multinational companies to sell Beijing as a perfect location when hiring. Howlett's wife and children moved back to New Zealand, their home country, four years ago as the air quality in Beijing was having a bad effect on his 11-year-old asthmatic son.

Matt Hope, a British artist had sought solution to air pollution with his "Breathing Bike," a pedal-powered air filtration system that provides clean air to the rider as it moves.

"Most of my friends came to stay for a while then leave, and some do leave China considering their families' health. For me, I still feel a lot of things are interesting in China for my art practicing," he told the Global Times.

"I think Beijing struggled to attract people before the pollution became a news item.

With its harsh climate and drab concrete skyline it doesn't make a good backdrop for postcards, however what's left of old Beijing still has a fan base," Hope said.

Positive steps

The Beijing government has vowed to make greater efforts to tackle air pollution, including a "clean air pact" that aims to reduce major pollutants concentration by an average of 2 percent by the end of this year.

Experts have also called for more international cooperation on pollution control, both at the official level and via communications among environmental organizations.

Jack Marzulli, a research fellow with New York City-based Natural Resources Defense Council (NRDC) China, told the Global Times that he'll be returning to the US at the end of his one-year post with the organization's Sustainable Cities Team.

"The pollution is definitely one of the reasons that I'm not seriously considering staying in Beijing longer term," said Marzulli. "Ironically, it's also one of the reasons I moved here in the first place."

Having visited Beijing in the past, Marzulli said he wanted to be part of the effort in fighting Beijing's pollution and specifically applied for a post at the NRDC's Beijing office.

"The air pollution constantly reminds me how important our work is," he said.

There is still a lot of work to be done to improve the air quality in Beijing and the rest of China, but environmental organizations are making a lot of progress, he said, while public awareness of air pollution and other environmental issues is increasing significantly.

China has been sparing no efforts in improving air quality and curbing pollution and Japan is glad to offer its assistance to the government, companies and NGOs, said Okazaki Yuta, First Secretary of the Economic Section (Environment) at the Embassy of Japan in China.

"I'd like to extend my heartfelt sympathy to residents who suffered from heavy smog earlier this year. As the father of two children, I'm heartbroken when seeing Chinese kids getting sick because of the air pollution," said Okazaki.

He lives in Beijing with his wife and two sons, and the family has come to depend on its air purifier.

"Japan also experienced serious air pollution before, and I don't want to see more harm caused by pollution anywhere in this world," he said.

"I'd like to continue working in Beijing, hoping that our experiences, lessons and technologies can help China find a solution."

Results of the 2012 Amazing China - The Most Attractive Chinese Cities for Foreigners survey were released. Expats chose Shanghai, Beijing, Shenzhen and others as China's 10 most attractive cities for foreigners.

The cities that made the top 10 list are: Shanghai, Beijing, Shenzhen, Suzhou, Kunming, Hangzhou, Nanjing, Tianjin, Xiamen and Qingdao.

Launched in September 2012, the voting invited 175,400 expats over the past year to appraise their favorite Chinese cities, and 1,050 have been polled for their opinions on four categories: policy, administration, working and living environments.

The expats polled in the survey conducted by International Talent Magazine include Chinese Friendship Award recipients, foreign scholars and scientists selected for the Recruitment Program of Global Experts, and other foreign professionals working in China. Those polled suggested many ways for Chinese cities to become more appealing destinations for global professionals.

*Shanghai*

“My impression is that essentially everywhere in China people are very friendly and helpful and medical care is perfect for foreigners, natural environment is great and its protection is well recognized as a major task today for the future. So, every one of those 49 cities should have been mentioned essentially for every category.

The main future task for China is probably coping with migration, and improving life andschooling in the countryside. But also this you know very well.” --- German mathematician Andreas Dress

*Beijing*

“It’s pretty easy for foreigners to live in a nice city, and the people in China are very friendly. I am enjoying my life in Beijing.” ---Former NBA player Stephon Marbury

*Shenzhen*

“Shenzhen government has been very productive about attracting, retaining and supporting foreign talent, more so than elsewhere I have seen in China.

The social and environmental infrastructure in Shenzhen is very attractive to foreigners. Transportation links and the proximity to Hong Kong are also most valuable.” ---British financial expert Richard David Jackson

*Suzhou*

“Since modernization started in China, Suzhou’s local government has been putting a great emphasis on investment, scientific research and other development projects.

Technology and Innovation park’s traffic is convenient, the park is close to Shang-hai. Its environment is good, clean, quiet, which is suitable for the development of the company.

Local residents are industrious and sincere, moreover, local government can timely care about our development, timely solve our difficulties in any side.” ---Russian physician Teplukhin Vladimir

*Kunming*

“The city is well managed by the local government, and they are concentrating on making it a better city for all its citizens, including foreigners.” ---New Zealand garden manager Lewis William Dagger

*Hangzhou*

“Hangzhou people are simple, friendly and kind. Hangzhou government at all levels is very practical and diligent. They respect knowledge, talent and creation.” ---German expert Bruno Klaus Filter

*Nanjing*

“Nanjing?from my first visit in 1987 , to now in 2012 has developed into a cosmopolitan city while maintaining Chinese culture and charm.” --- American expert Bikram S. Gill

*Tianjin*

“Tianjin, as a famous city, is historical, cultured, environmental, and most important city, which is very suitable to live in. I love Tianjin and regard Tianjin as my second hometown, and I will spread propaganda for Tianjin. I love Tianjin, wish a bright future for Tianjin, and wish happiness for the people of Tianjin.” --- Russian expert Eugeny Kaspersky

*Xiamen*

“I think Xiamen is one of the most attractive cities for foreigners who work in China. The city is very nice and wonderful, and this place is a very safe place for foreigners and their families.” ---South Korean engineer Won Ho Moon

*Qingdao*

“Qingdao City possesses a very good, quick-developing infrastructure, which combine with a beautiful architecture landscape ensemble and nature color.

I can see Qingdao City as a fine place for realization of creative projects, business, rest.” ---Russian expert Vladimir Kabanov