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Foreign Firms Attract More Chinese with Senior Positions
The localization strategy adopted by an increasing number of foreign companies in China has given many Chinese the opportunity to take senior positions, a chance previously given only to foreigners.
According to a recent survey conducted by a domestic organization specialized in providing services to foreign companies in China, more than 100,000 Chinese were employed by 18, 000 foreign firms or representative offices Chinawide in 2000, an increase of 210 percent from a year ago.
The majority of the Chinese employees took senior positions, such as chief representatives, executive officers, and so on.
The localization move adopted by foreign firms stems partially from their wish to cut costs, said an expert with the organization.
Based on similar performance, the salary gap between a foreign employee and a local employee at similar level can be as large as ten times, he said.
Moreover, foreign firms' unsuccessful experience of employing foreigners with no background knowledge of China's situation has pushed them to do so, he added.
Lu Yan, a senior manager supervising the southeastern business of a foreign company, said that as her company's products are company- or enterprise-oriented, her ability to speak both Mandarin and Cantonese gave her an edge in communicating with clients.
Nevertheless, the survey shows that 90 percent of the Chinese people employed in higher positions by foreign companies have
Despite all the positive changes, only a meager proportion of Chinese get quick promotion, compared with their foreign counterparts, the survey shows.
"It depends on to what degree the foreign company implements the localization strategy," an expert with the foreign service company said.
Generally speaking, U.S. companies are less conservative than European and Asian companies in granting promotion to Chinese employees, based on their different operation notions, he said.
Liu Ting, a senior executive with Price Waterhouse, a U.S.- based accounting firm, said that in her company there are around 1, 500 Chinese employees, but only a few are working in senior positions.
The promotion ladder usually goes like this: five-year manager level, two-year senior manager position, and three-year partner experience, she said.
Experts note that there are three major progressive changes in the human resource structure in China following the entry of foreign companies.
First, foreign firms establish offices in China, bringing with them advanced management mechanism and culture. At this stage, the majority of their employees are foreigners.
Second, foreign firms start to adopt a localization strategy by developing their business in China for some time and training local employees.
Third, after China's entry into the World Trade Organization, foreign firms will employ a huge number of Chinese. At this stage, the human resource structure in China will undergo fundamental changes.
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