Spring - Issue 31
Transcription
Spring - Issue 31
SPRING 2007 – ISSUE 31 - Office of deposal: Brussels X - P2A9744 SPRING 2007 – ISSUE 31 Newsletter Expat Coaching • Dual Career Solutions • Expat Assessment Offices throughout America, Europe and Asia-Pacific Asian Pacific Diana Farrell Director at McKinsey Global Institute, San Francisco, USA. China’s looming talent shortage ith its huge supply of low-cost workers, China has fast become the world's manufacturing workshop, supplying everything from textiles to toys and computer chips. Given the country's millions of university graduates, is it set to become a giant in offshore information technology and business-process services as well? foreign-language skills, cultural fit or practical education necessary to work in a multinational company. According to interviews with human resources professionals involved with hiring local graduates in low-wage countries, fewer than 10 per cent of mainland China job candidates are Our research suggests this is unlikely. The reason: relatively few of the mainland China's vast number of graduates are capable of working successfully in the services-export sector, and the fast growing domestic economy absorbs most of those who could. Indeed, far from presaging a thriving offshoreservices sector, our research points to a looming shortage of homegrown talent, with serious implications for the multinationals now in the mainland China and for the growing number of Chinese companies with global ambitions. …fewer than 10% of mainland China job candidates are suitable for work in a foreign company W The problem is that few of the mainland China's graduates have the suitable for work in a foreign company in occupations such as engineering, finance and accounting, quantitative analysis and support. The specific reasons vary by occupation. Consider the mainland China's 1.6 million young engineers. Their education is generally biased towards theory, and they get little practical experience in projects or teamwork. As a result, despite seeming so numerous, the mainland China's pool of young engineers considered suitable for work in multinationals is just 160,000 Contents p 1-2 - China’s looming talent shortage / Mrs. Diana Farrell, Director at McKinsey Global Institute, San Francisco, USA. p 1 - From global frame agreement to global implementation / Alain Verstandig, Managing Director, NET EXPAT p 2 - “De-learning” and “re-learning” / Shamus Mok, McKinsey & Company, China Knowledge Center, Shanghai, China p 3 - The place of the ‘international mobility’ function in an international group / Yves Girouard, Director of "Cercle MAGELLAN", Paris, France p 4 - Working as a spouse in China / Martina Schmoor, Expat Partner from UMICORE, transferred to Suzhou, China p 4 - Increase ROI on your Expat / Miranda Arya, NET EXPAT Development Manager UK, London, UK Editorial Alain Verstandig Managing Director, NET EXPAT Supported by es, we're definitely in a more integrated world. Distances are shrinking, and we're all thinking more and more globally. Y But, but, but… it’s still a big step from thinking globally to acting efficiently at a global level. Building global contracts is easier than ever: legal aspects and contract structures are no longer ‘showstoppers’ when implementing expat services globally. The real challenges are elsewhere, when structuring your RFP and, just after, signing your global framework agreement. From global frame agreement to global implementation One of the biggest dangers is expecting a "one-size-fits-all" solution: your 28-year old logistic specialist moving from Chicago to Mexico needs different expat coaching from your 51-year old financial VP moving from Helsinki to Singapore. It’s not easy to keep the right balance between the needs of your "internal customers" (line managers, expats), the quest for consistency across the company and the latest generation of services offered by your service providers. Benchmarking may help you, but don't get trapped: if your competitors are missing the point, you'll miss it too. And if they have developed a competitive advantage somewhere, which is more and more the case with expat coaching, you'll never spot it! The second critical moment is when everything is signed and needs to be implemented (how many of you enjoy this part?). The answer is selfexplanatory: putting things into music, and making sure your HR representative in Mumbai understands (and accepts?) the formula the way your HR representative in Dubai does, requires drive and patience and deserves a lot of recognition. N Coaching “De-learning” and “re-learning” Shamus Mok – no larger than Britain's. Hence the paradox of shortages amid plenty. For jobs in the eight other occupations we studied, poor English was the main reason our interviewees gave for rejecting applicants from mainlanders. Overall communication style and cultural fit are also difficult hurdles. Their education is generally biased towards theory, and they get little practical experience in projects or teamwork Compounding the problem is the fact that half of all university graduates are beyond the reach of multinational employers. Just one-quarter of all mainland China graduates live close to a major international airport – a requirement for most multinationals setting up offshore facilities – and only one-third would be willing to move to other provinces for work. As a result, multinational companies already in China could soon face a talent shortage in key service professions and managerial occupations. This represents a major problem for multinationals in mainland China, for mainland companies and, indeed, for the nation's economic future if it aims to move beyond labor-intensive manufacturing and into higher-value service industries. To curb the threatened talent shortage, policymakers should consider three sets of actions: First, Beijing must undertake a long-term effort to raise the quality of its graduates by changing the way it finances its universities. Second, it must revamp curriculums to meet the needs of industry and, at the same time, improve the quality of Englishlanguage instruction. Finally, policymakers should do more to woo home the many McKinsey & Company, China Knowledge Center, Shanghai, China reating an effective learning environment in which new hires can go through “de-learning” and “re-learning” processes is one of the key success factors in managing talent in China. One fundamental issue Chinese workers are facing is the difference between a modern formal management system and C - NET EXPAT in China In order to register a company in China, all non-Chinese companies need to translate their official company name into Chinese. This is not always an easy task! The NET EXPAT Team in China was happy, however, to take on the challenge. After a lot of discussion and a perfect example of cross-boundary team work, a new name was born, the ‘NET EXPAT’ students who study abroad. The looming squeeze on graduate talent could stall not only the mainland China's economic growth but also its evolution to a fully developed service economy. Educational reform, to stress practical and language skills, would help fill the professional talent gap. Diana Farrell is the director of the McKinsey Global Institute, McKinsey's economics thinktank. This article is based on an article that appeared in the McKinsey Quarterly. translation in Chinese: With our new Chinese name and a representative office as good as established, the NET EXPAT team is making its mark in China! Elise Beyst NET EXPAT Program Coordinator [email protected] the informal structure which affects the behavior of Chinese workers. Some codes of conduct and norms of behavior – such as not being proactive enough, rigidity, relying on personal relationships rather than abiding by rules – are stumbling blocks in the development of an efficient management system. The Chinese younger generation has a relatively good potential for improvement However, the Chinese younger generation is generally hardworking, eager to learn, and has a relatively good potential for improvement. They can achieve a higher learning curve if they work in a cohesive professional community, and they can be exposed to a positive influence in a dynamic group focused on excellence. An effective environment should include proper coaching… An effective environment should include proper coaching, mentorship for continuous socialization, rigorous training, an open and transparent performance evaluation process, as well as a reasonable timetable, say 18 to 24 months, for selfimprovement. Those who can meet the role expectations should be promoted; otherwise, they should be counseled out in a caring way. Constant recruitment of new hires to replace those who are leaving is a way to maintain a dynamic talent flow in the people system. It also allows companies to regain control over their HR strategy rather than simply reacting to an aggressive labor market. Shamus Mok McKinsey & Company, Inc. China Knowledge Center 17/F, Platinum 233, Tai Cang Road Shanghai 200020, China Some Clients Newsletter Strategy Yves Girouard Director of "Cercle MAGELLAN", Paris, France. nternational mobility (IM) is a clearly defined function within the Human Resources department. It is also a very demanding one for those involved. It calls for professionalism, technical skills, and an open and adaptable mind. In fact, mobility experts mature in a distinct environment characterized by international work contracts, immigration, and a slew of contrasting regulations. I For some years now, except in those countries where they already existed (the USA, for example), multinational corporations have been building up their ‘Compensation & Benefits’ (C&B) teams. This organizational trend reflects both strategic decisions and new constraints (Sarbanes-Oxley, IFRS standards, etc.). At the heart of the HR department, such teams take responsibility, among other things, for managing global compensation levels and defining corporate policies. In the cases where new teams have been established, they are often composed of insurance experts or IM Managers, the former for their ‘Corporate amnesia’ and skills wastage: how will you adapt your policies to the evolving needs? understanding of insurance and financial issues, the latter for their international knowhow. As this trend develops, it becomes apparent that the IM Manager is often expected to report to the C&B Manager. This could give the false impression that the IM function is a purely administrative one – even more so since, at the same time, some corporations show signs of outsourcing their IM operations or even the whole of the HR function. The place of the ‘international mobility’ function in an international group A review of recent experience, however, leads us to express some reservations… Even if outsourcing essentially administrative or peripheral tasks, such as payroll and relocation management, seems to work perfectly well, some companies are bringing their IM function or their whole HR operations back in-house. Why? For two main reasons: ‘corporate amnesia’ and skills wastage! How can you adapt your policies to the evolving needs of your company if nobody appreciates the technical constraints or knows the background to past decisions? One solution adopted by a lot of companies is to establish a corporate IM platform, a ‘resource center’ reporting to the corporate HR Director, with the task of defining and developing guidelines, providing support for transfers, and in some cases managing the careers of its international executives. Protecting the company’s ability to manage its HR should not be sacrificed on the altar of cost reduction! Such an approach favors economies of scale, the development of synergies, the quality of the services provided, and in the end, cost reduction… To conclude, in a world engaged in the war for talent, where skills development is the key to competitiveness, the HR Director has to be a strategic partner, integrated into the Management Committee. And how can you effectively manage your service providers, negotiate and dialogue with them, give clear instructions, and properly understand their recommendations and activities? It is important to strike the right balance. Protecting the company’s knowhow and its future ability to adapt and manage its human resources should not be sacrificed on the altar of cost reduction. Meanwhile the IM function is assuming an increasingly strategic role. It is often dealing with topresponsibility jobs. Moreover, with the increased contribution of 'Third Country Nationals', transfers have to be made between more and more countries. He or she has to be aware of the business realities and be able to reply practically to the company’s needs for skills development. The HR Director provides a support function and has to acquire an ‘internal client’ mentality. This means enhancing the function’s credibility, primarily by developing the skills of its team, in order to confirm its real addedvalue in strategic and political terms, in addition to its technical competences. In the absence of such an approach, management will continue to regard outsourcing as a legitimate alternative… CERCLE MAGELLAN 85 Bd St Michel 75005 PARIS www.magellan-network.com 3M ACNielsen Airbus Alstom AMIS Apple AUDI AVIVA AXA GMST BD Biosciences Europe Borealis BP Brady Bristol-Myers Squibb Bull Cadbury Schweppes Cargill Caterpillar Colgate Palmolive Cordis Corus Group plc Credit Suisse Danisco Delhaize Group Dexia Diageo DuPont de Nemours Electrabel Electrolux Euroclear Bank ExxonMobil Gemplus General Motors Belgium Givaudan GlaxoSmithKline Biologicals Goodyear Guidant Europe Honeywell ING Insead International Paper Itopf Janssen Pharmaceutica Jungheinrich Kraft Foods L’Oréal La Poste Leroy Merlin MasterCard MBDA France Merck Sharp & Dohme Methanex Nestlé Newell Rubbermaid Nissan Europe Nur PerkinElmer Pfizer Procter & Gamble PSA Peugeot Citroen Puratos Quest International Raychem Reckitt Benckiser Saint Gobain Glass France Schlumberger Sogem Solvay Sonaca Sony Standard Life SWIFT Tchibo Tele Atlas Tessenderlo Thermo King Total Tractebel Tyco-electronics UCB Umicore Unilever Unisys UPS Volkswagen Whirlpool... Newsletter Testimonial Martina Schmoor Expat Partner from UMICORE, transferred to Suzhou, China Mrs. Schmoor is interviewed by Mrs. Silke Thompson, NET EXPAT Development Manager Germany. Working as a spouse in China and a church community. The most important reason, however, for being happy here is that I found a job within three months. Silke Thompson: Mrs. Schmoor, what were your first thoughts after you heard of the expatriation plans of your husband’s employer, UMICORE, to send the two of you to Suzhou, China? Martina Schmoor: First of all I had never been to Asia before, so I was worried about what to expect there and about leaving our family and friends behind. I was also concerned about my professional situation, being an ophthalmologist and having just been offered a partnership in a practice. Was I going to have a chance to work in my profession in China? ST: You have only been in China since October 2006. How do you feel about it now? MS: Very positive, much better than expected! We are involved with a local expat association I was made aware that it is very difficult for a foreigner to find a professional job in China and that I might have a slightly better chance in Shanghai, which would have been a one-and-a-half hour commute just one way. Also you need to know some local physicians to get the chance of applying for a job. Unfortunately for a newcomer like me, this was not the case. I was lucky enough to be offered NET EXPAT support in China by UMICORE and was helped by a very committed NET EXPAT Chinese consultant. I arrived in Suzhou on October 19 2006, and she and I worked together on adapting my resume to Chinese standards and on the specifics of the local job search. I had my first interview on November 20, and was interviewed at three different hospitals, with positive reactions all round. On December 6, after my final job interview, I was offered a position as an ophthalmologist at the Suzhou Eye Hospital. The most important reason for being happy here in China is that I found a job within three months I now work here two days a week as their first foreign specialist. The remaining three days of the week I will be studying Chinese medicine, classes that the hospital is organizing for me and which featured in the terms my NET EXPAT Chinese coach helped me negotiate. ST: Do you know many other expat partners within the community that have been able to integrate professionally? MS: No, just one other woman I know of, but she has been here for eight years. Of the 40 to 50 other expat spouses I met, nobody works, but at least half of them might like to and would like to get professional assistance, as without this it is almost impossible for them to find a job in China. With the help of NET EXPAT I learned that a CV coming from a stranger is not even read. It's fantastic that I can continue to work in my profession and get a very close insight into the Chinese culture at the same time. I work in a truly Chinese environment and am really enjoying working together with my new Chinese colleagues. Best Practice NET EXPAT Development Manager UK, London, UK re-departure cross-cultural P training is supplied by most organizations. But is it enough? How can HR departments provide relocating expats with the most cost-effective and supportive intervention to help them through the turbulent relocation period? In the modern working world executives are busier than ever, working increasingly long hours. Before moving jobs and traveling abroad, this pressure is accentuated and as a result, the two-day classroom – based cross cultural training program is often the first thing to be pushed off the agenda. NET EXPAT believes the answer lies in a hybrid approach to cross cultural education. As I n c re a s e RO I o n yo u r E x p a t the world becomes a smaller place and people are more aware of the general cultural differences across the globe, pre-departure training can be condensed to a more flexible half day. This provides expats with country information and access to resources and would also stimulate some thoughts around the issues he or she may face (particularly if supported by the ExpAdviser test, NET EXPAT’s psychometric expatriation test). The greatest support, however, should be provided by a six to twenty four hour coaching program on arrival in the host country: a one to one coaching relationship working in “real time”, as the action happens, empowers the employee to cope with the cultural differences faced within a foreign business environment. Why did no-one reply to my email? Did I come across as aggressive in the meeting? Where were the action points? The two-day classroom based cross cultural training program is often the first thing to be pushed off the agenda offering a cost-effective and tailored way of ensuring expats are efficiently launched into their new working environment. Miranda Arya Development Manager UK NET EXPAT UK Berkeley House, Berkeley Sq., London W1J 6BD Tel.: +44 (0)20 7544 6827 [email protected] The employee works through different issues with the coach, gaining an understanding of the local working culture, as well as increased perception of his or her behavior within it. All this substantially helps the employee to clarify his/her leadership style within the new e nv i r o n m e n t and unleash their full potential, We help you expat your talents NET EXPAT NET EXPAT helps Corporations and Expat Families achieve successful expatriation through a series of Career & Life Transition programs in more than 41 countries. Two programs have been specially developed to facilitate international mobility of your Expats while four other programs help partners of your expats find work in their future host country • Web site: http://www.netexpat.com • e-mail: [email protected] Responsible editor: Alain Verstandig, Avenue Louise 287/11, B 1050 Brussels Miranda Arya