Local firms to surge ahead as employment landscape alters

A job hunter talks with a company representative at a job fair in Beijing. [Photo/Xinhua]

Multinationals losing ground to more agile rivals in battle for talent

Home grown Chinese companies are set to outperform their multinational rivals in winning over the next generation of Chinese executives in the coming decade, according to a report from top management consulting firm Bain.

Many Chinese executives are willing to forego a perhaps more predictable career path at a multinational company and choose the steeper learning curves and career trajectories associated with local companies, the report says.

James Root, a Bain partner and co-author of the report, said: "Locally owned companies have upped their game in terms of the experience, salary, and employee training and development they provide, in an effort to woo talent away from their multinational competitors."

"Their fast-growing operations present opportunities for China's homegrown talent to rapidly take on leadership roles."

Decades ago, it was not uncommon for many Chinese business leaders to build their careers at multinational companies in China. They were, in part, attracted by good opportunities for personal development, excellent salaries and benefits packages, and the chance to be involved in international assignments.

However, the talent landscape has changed.

In the past five years, only 10 percent of executives at multinational companies have come from local firms, while almost one-third of the leaders of Chinese firms used to be employed at multinational counterparts, the Bain analysis shows.

This is because local companies are expanding their operations and now offer career growth opportunities that fully compete with established multinational companies.

Feeling encouraged, Chinese nationals will continue to move to local employers as homegrown companies are learning from their competitors, business leaders predict.