Mind the tech talent gap: China

Despite China’s apparently vast labor supply, tech companies are finding few candidates have the necessary skills for service occupations.

Despite China’s enormous pool of university alumni, recent research suggests that fewer than 10 percent of Chinese job applicants, on average, would be suitable for work in a tech company, and the fast-growing domestic economy absorbs most of those who could.

To pass this talent crisis and to maintain the economic ascent of the past 20 years, China must produce not just more tech graduates but more suitable ones. Changes in the educational system — including greater emphasis on practical skills — will help the country fill its skilled-labor gap. For example, Chinese State media People’s Daily lately reported the country is facing a shortage of five million AI talents.

Meanwhile, high demand has sent tech stuff salaries skyrocketing in China. IDG Capital’s 2017 Internet Unicorn Salary Report shows compensation for top engineers is 55 % higher than average industry’s employee salaries, 90 percent higher at intermediate positions, and 110 percent higher at junior positions.

Recruitment Programs For International Talent In China

Only a handful of universities are able to train first-class engineers. China needs at least 400,000 engineers more to reach its goal of boosting the industry’s size fivefold before 2030, according to the Ministry of Industry and Information Technology. To reach its goal, China will need to invest gradually in research, craft more favorable policies for Chinese tech talents and attract more high-end foreign talents.

Among the organizations that are trying to address the expected shortfall is Huawei, which has hired at least 6,000 foreign engineers. Alibaba group has also started recruitment program for foreign talent. When Daniel Zhang took over as Alibaba Group CEO last year, he said globalization was the e-commerce giant’s top priority and that recruiting top-tier international talent would be critical to reaching that goal.

“We will have employees from all over the world that look different from each other,” Zhang said in his first public speech as CEO. “We have to take the time to understand them, to understand their habits, cultural differences and way of thinking. This is how we become truly an international company.”

“We’re offering promising young professionals a chance to live and immerse themselves in the environment within corporate headquarters in Hangzhou so they can truly understand the essence of our corporate culture and understand what makes it successful,” said Alibaba Group Vice President Brian Wong, who helped create the program. “We believe that these people will then carry that overseas to our worldwide offices, and finally become a critical part of our global leadership team.”

Alibaba is currently accepting applications to fill 30 AGLA positions, though the program will eventually grow to 102 a year. Participants will be considered full-time Alibaba employees and receive competitive compensations and benefits.

What Attracts Foreigners to Work in China

There are numerous reasons why foreigners are interested to work in China despite the challenges that face them. These include the following:

— The principal reason is the international experience and chance they will get by working outside their own countries, especially for those foreigners not living in China;

— More attractive expat packages. The salary packages offered to foreign employees in China are typically better than what they can get in their home country, thus making it a good motivational point in convincing foreign professionals to move to China;

— Better or newer job field than the foreign employee’s current position. Foreign tech candidates are usually attracted to jobs that provide them with new or better challenges, where they can develop new skills, meet new people, explore new market, obtain new opportunities for self-development, etc.;

— Interesting industry/market, especially with China’s “booming industry” that offers new technologies in IT sector;

— Eventful life the employee might have especially in tier 1 cities in China;

— Opportunity to develop professionally and personally, particularly in big “famous” companies in China that impact;

The company’s geographical position is also a very mattering consideration if the foreigner employee. On the other hand, it is easier to recruit foreigners living outside China as they are normally excited about gaining an international experience and acquiring an expat package. The location of the company in China will not be their main concern.

Challenges Facing Foreign Employees in China

Foreigners who will enter China for the first time to work full-time will face various challenges, including the following:

— Language Barrier
Depending on the location of work, the industry, and the department, the foreign employee will face issues relating to the language barrier;

—Culture Clash
Chinese culture is deeply imbedded in its customs, traditions and beliefs. It is accordingly necessary for foreign employees to be able to learn and adapt to them in a gentle manner to avoid conflicts and miscommunications;

— How the Chinese do Business
The Chinese differ from other nationalities in doing business and therefore does not follow worldwide rules and standards. It is important for foreign employees, therefore, to adjust to the Chinese style to be able to successfully immerse into local business culture. For instance, to many Chinese, a “yes” or “no” cannot be taken at face value. Instead, to them, it means “I want to negotiate.”

How to Hire Foreign Employees in China

An employee who intends to work in China shall meet the following requirements:

• Be over the age of 18 and be in a good health condition;
• Have the professional skills and corresponding work experience to fill the relevant vacancy;
• Have no criminal record;
• Have a certain employer;
• Hold a valid passport and/or any other required international travel certificate.

Employer shall collect the required documents and submit them to the issuing local authority to obtain the employment license for the foreigner within 15 days after the hired foreigner enters China. The employment license is valid only in the area prescribed by the issuing authority.

A foreigner who intends to work in China shall hold an employment visa before he/she enters the country. After entering in China, foreigners shall apply and obtain the work permit and after obtaining the work permit, they shall apply for the residence permit. Foreigners who; a) hold a work permit, but they do not hold a residence permit, or b) dependents of foreigners who hold a work permit, or c) foreigners who study or perform internships, cannot obtain employment permits.

To employ a foreigner in China, the employer shall present the application to the local bureau along with the next documents:

• Employee’s Resume;
• Letter of intent;
• A letter for reason for hiring a foreigner;
• Employment Certificate;
• Health status Certificate;

The foreign employee and the employer must sign a labor contract and the duration of the contract shall not exceed 5 years. The contract may be renewed in accordance with law of the People’s Republic of China.

If you are in China and lack the tech talent you need now, contact World Wide Spice IT Recruitment today. Go beyond your usual recruitment channels — tap into a WHOLE new source of overseas talent and reach the top candidates you couldn’t otherwise find. We’ll help you find, hire and relocate the best (and scarcest) tech talents from around the world — just as easily as if they were on your doorstep. With 10+ years of expertise to draw on, our recruiters can cut a month-long search down to just a few days. Let’s keep in touch!