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
ebeyst@netexpat.com
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
marya@netexpat.com
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: info@netexpat.com
Responsible editor: Alain Verstandig, Avenue Louise 287/11, B 1050 Brussels
Miranda Arya