Talent in China: exploring the issues faced by Australian multinational enterprises

Abstract

Past research and anecdotal evidence suggests that talent management issues faced by Multinational Enterprises (MNEs) are quite severe. This paper explores the issues Australian MNEs face in attracting, developing and retaining key human talent in their Chinese operations. Utilising an exploratory, qualitative approach involving 20 semi-structured interviews with senior level managers in Australian MNEs, we find that coercive isomorphism in the Chinese regulatory context is a major influence on talent issues. More particularly, the study shows that Australian MNEs experience significant talent shortages, as a result of contextual conditions in the Chinese market. In addition, MNEs experience problems with retention of talent because other organisations, usually Western MNEs, are offering, amongst other things, more competitive salaries.

Chinese international business graduates: A career dilemma: Repatriate or stay?

“…Whether they repatriate or stay abroad, Chinese foreign graduates acquire competencies while studying abroad (Figure 1). For Chinese and foreign employers, the possession of particular competencies influences their recruitment of Chinese foreign business graduates in China (Henderson, 2011; Cai, 2012; Hao, 2012; Hao & Welch, 2012; Menzies & McDonnell, 2012; Li & Yang, 2013; AEI, 2013d) and for Australian employers their recruitment in Australia (Jackling, 2007; Birrell & Healy, 2008a; Cen & Cai, 2012). Positive competencies or strengths resulted in hire and negative competencies or weaknesses deterred hire.…”

“…China is Australia’s most important trading partner, and Australian firms are increasingly doing business with China (Korporaal, 2012). Yet, they face a shortage of employees with suitable competencies for the work (Curtis & Lu, 2004; Tremblay, 2005; Henderson, 2011; Hao, 2012; Menzies & McDonnell, 2012; Pyke, 2013), as do firms in the United Kingdom (Archer & Cheng, 2012). Scholars argue that Chinese Oz graduates can help fill that gap and provide a pool of talent to support Australian firms wanting to conduct business in China, and Chinese firms wanting to do business in Australia (Tremblay, 2005; Henderson, 2011; Hao, 2012; Korporaal, 2012; Menzies & McDonnell, 2012; Pyke, 2013); similar roles are available in firms in other foreign countries (IBM Business Consulting Services, 2006; Dietz, Orr, & Xing, 2008; Archer & Cheng, 2012; Cremer & Ramasamy, 2005).…”