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China Briefings

Reports on China issued by Samsung Economic Research Institute

The War for Talents

The War for Talents

EOM Dong-Wook

June 23, 2011

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Both foreign and local companies in China are in intense competition to secure talents. The situation has turned more favorable to local companies, especially after the global financial crisis in 2008, which provided university students reasons to prefer local companies or organizations. This is largely due to higher status of local companies and better work environment in the nation. Also, talent at foreign companies feels less employment security and higher uncertainty in their growth and is increasingly moving to local companies.

For Korean companies doing business in China, they need new strategies to effectively respond to the changes. First, they should secure talent ahead of their rivals, forming partnerships with the Chinese government and universities. Second, they should nurture middle management, satisfying the need of talent. Third, they should adopt localized management to give the trust that they entrust business to local residents

In competition against global companies in the Chinese market, Korean companies need to establish a differentiated employment "brand" based on their strength in organization and friendliness. In addition, they need a shift in their attitude, nurturing Chinese talent into future management. Further, they should develop competitive edge that distinguishes themselves from local companies, establishing a systematic human resources system across the board.

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