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Mar 2009
The current global economic crisis is presenting companies around the world with unprecedented challenges, exasperated by the fact that the depth and duration of the current down cycle is impossible to predict. However, what can be predicted with some certainty is that those companies who act decisively and have the ability to adapt to the changes required in their markets will be in the best position to ride out the storm and will emerge strongest once the economy picks up again.
Human capital is an asset that continues to be an important pillar of continuity and long term success for companies. As highlighted in PwC's 12 Annual Global CEO Survey, finding and retaining top talent remains a major priority for CEOs. Nearly 70 percent of respondents noted that a shortage of candidates with essential skills is a key challenge for their businesses. The current economic situation presents a difficult challenge for management in how best to retain and deploy their talent pool whilst managing cost.
In today's global economy, cross-border mobility of human capital is increasingly recognized as a means to address the issue of shortage of skills. PwC International Assignment Services has conducted a survey to capture the key trends of cross-border movements in Asia. The purpose of this survey is to provide a broader perspective and understanding on international mobility trends and challenges of both Hong Kong and China-based companies. Over 200 Hong Kong and China-based companies responded to our survey and the key findings are summarised in our survey reports.
Despite the current economic turmoil, it is interesting and encouraging to note from our survey results that the majority of companies expect continuous growth in the Asia markets in the long term. China undoubtedly remains a key focus for that growth in Asia for most survey respondents. Because of its unique position as the gateway to China and its well-established legal and financial systems, Hong Kong remains a popular location in Asia for companies to have their Asia and/or Greater China regional headquarters.
Highlights from the Hong Kong and China surveys have been summarized below:
Hong Kong Survey
- Companies have been more conservative in terms of their cross border movements of assignees in Asia and predict a minimal increase in traditional international assignments. However, 47% of companies in our survey anticipate an increasing trend of short term assignments within Asia. It is also expected that the mobile workforce between Hong Kong and China will continue to grow;
- Companies find rewarding Hong Kong outbound employees to China challenging as it gives rise to potential pay equity issues;
- 55% of our respondents indicate localisation is becoming a viable alternative although striking a balance between recruiting / retaining key international talent and containing human capital costs remains a challenge for many;
- Lack of defined processes and policies have resulted in HR professionals finding it very difficult to manage the movements of short-term business travellers. In particular, 60% are not aware of employees moving in to and out of locations on business trips, leaving companies at risk of immigration and tax non-compliance;
- Management of the increasingly sophisticated long-term incentive plans has become more challenging with a rapidly growing mobile workforce and ever-changing legislations; and
- 77% of our respondents indicate that they increasingly adopt a worldwide policy framework with regional variations to meet the diverse mobility needs of this region.
China Survey
- 72% of the respondents indicate that China is one of their top 3 assignment locations in Asia, ahead of Hong Kong;
- A great demand for talent with essential skills is a key challenge in China and many companies have looked to foreign talent to meet their needs for skilled resources;
- 38% of the respondents consider China as one of the most difficult locations in Asia to implement localisation and more companies are offering hybrid packages as an interim solution;
- Companies place great importance on training and development of local talent. 47% of companies anticipate an increasing trend of China outbound employees as overseas assignments are increasingly viewed as a talent management and retention tool;
- Increasing number of returning Chinese employees hold middle management and senior management positions (39% according to our survey) in China-based companies; and
- The implementation of regional or regional variations of international assignment policies are increasingly common as they better reflect the deployment needs of a diverse mobile workforce.
The key trends identified in our surveys will be invaluable to all senior executives and international HR professionals tasked with managing cross-border mobility of human capital in Asia.
Read more by downloading the below for your reference:
Enquiries
If you have any questions regarding the "International Mobility Trends in Asia - Hong Kong perspective", please contact Berin Chan at +[852] 2289 5504.
If you have any questions regarding the "International Mobility Trends in Asia - China perspective", please contact Rebecca Lai at +[86] (10) 6533 3065.
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