Finding people with right talent(2)

Preferred choice

On further reflection, Garcia concedes more competition from both Chinese locals and an influx of qualified foreigners have shifted the goalposts. He needs to adjust his expectations in terms of position and pay.

Ambre Mundula, a senior consultant with JAC Recruitment, which sources talent for multinational firms operating in China, says Chinese returnees are now the preferred hires.

This year, she says JAC only needed to advertise outside this demographic once.

"It's much harder for foreigners now," she says. "There's much more competition from Chinese returnees who have been abroad. They speak English and they are cheaper than foreigners."

Mundula says typically, the entry-level, monthly salary for a foreigner in a wide range of industries starts between 15,000 and 20,000 yuan ($3,290). JAC can source a Chinese returnee with professional experience who is fluent in English and Mandarin for about 10,000 yuan.

At management level, a Chinese returnee generally costs about 30,000 less yuan per month than hiring a foreigner.

Simon Lance, regional director in China for Hays Recruitment says he agrees the job market is becoming much more competitive for foreigners. The rise of local talent in certain sectors is one of the reasons why.

According to the Ministry of Education, this year alone a record-breaking 6.99 million students graduated from colleges across China, a 2.8 percent increase since 2012. An influx of foreigners fleeing poor job markets in their home countries is another factor that can't be discounted. The most recent figures from the State Administration of Foreign Experts Affairs puts the number of foreigners currently working in China at about 550,000.

What it all boils down to, Lance says, is that Chinese employers can now afford to be more discerning.

"The days of being an expatriate and being guaranteed a job in China are well and truly over," Lance says. "I think employers are raising the level of expectation they have if they are going to hire an international candidate."

Lance is adamant that one of the big changes in the Chinese job market compared with five years ago is that it is increasingly difficult to get a foot in the door without some Mandarin. He says the better your language skills, the better your chances. He also warns that companies in China now want to know why you are leaving home and how long you're prepared to stay.

"A lot of Chinese employers now are looking for specialized skill sets and they are not interested in hiring someone just because they are an expatriate or a foreigner," Lance says.

"We do get a lot of inquiries from people who don't have a strong reason to come to China, other than facing tougher economic conditions in the UK or Europe. They are assuming they will be attractive to Chinese employers, whereas the reality now is you really need to be able to show that strong connection to China or Asia, that you are committed for a reasonable amount of time. Employers are interested in why you are coming to China. If it's just because things are tough at home, that's not really enough anymore to get Chinese companies interested."

Lance says two years is about the minimum commitment employers are now looking for. Senior hires are generally expected to stay longer.

In particular, graduate jobs for foreigners are becoming increasingly difficult to get. Lance says many young people now come to China on internships hoping it will lead to employment. For Garcia, who did an internship with Lenovo, the gamble did not pay off.

Vacancies exist

But despite this tighter, tougher jobs market, Hays and other recruitment agencies have standing vacancies for a range of jobs.

So, what sorts of skills and professions are actually in demand?

"I think if you went back five years, the traditional manufacturing and engineering disciplines were the biggest areas of demand for foreign talent in China," he says. "I think that's shifting more to the service industries, such as banking or finance. The demand will definitely grow in the next five years. The pharmaceutical industry is booming at the moment. I think that will continue. Some of the really technical disciplines, such as IT, I see a lot of growth in.

"There are lots of vacancies and not enough candidates to fill them."

He urges job seekers to do their research before coming to China and find out whether their skills and experience are actually in demand.

Russian-born Alex Farfurnik, chief technical officer for Xiabo Network Technology, says his company has plenty of jobs going.

Down at the Beijing jobs fair, he speaks with plenty of job seekers. It's not finding people that presents a challenge, he says, it's finding the right people.

"It's hard to get good technology people anywhere in the world," he says. "I want as many as I can get."

In Shanghai, Yang Xiong, director of the Youth Research Center at the Shanghai Academy of Social Sciences, says there is currently a massive skills shortage in the finance sector.

"We have done a survey on the current number of qualified people in finance. We found the reserve (surplus to requirements) in this field is less than 1 percent, which is really a problem for us," Yang says.

Lance at Hays puts the talent shortage down to China facing stiff competition with other Asian financial and innovation hubs such as Singapore.

That current talent tussle has perks for the job seeker.

"If you find a senior biologist with pharmaceutical experience, there are probably five or six companies that would immediately be interested in interviewing or hiring that person," Lance says. "If you were looking at an industry that is growing or expanding and the competition at the top is really tough, then you do have the flexibility to sort of name your price.

"If you're looking at general manager or vice-president or even up to CEO, packages of 3 million, 4 million, 5 million yuan and above (per annum) are possible. If you're looking at the middle ranks where you maybe have a technical background and management function, anywhere from 1 million yuan to 2.5 million yuan a year is pretty achievable."

Former California-based professor Jeff Jolly, 42, says it is possible for foreigners to arrive in China and gradually work their way into lucrative positions.

In 2010, his first year as a professor at Fudan University in Shanghai, Jolly says he was paid about 72,000 yuan a year.

He now has a second job as a consultant for a company that helps Chinese students prepare applications for American universities. He now earns up to 1 million yuan a year.

"If someone comes here and they can bear with the first year of having a small salary, I think it pays off," he says. "I make somewhere between 600,000 and 1 million yuan a year. That's not uncommon. Some of the younger teachers at the other universities have snagged similar (consultancy) gigs as well. They are on about 400,000 to 800,000 yuan per year. It really takes staying here for a year, getting to know people, making connections. The Chinese call it guanxi. It's not who you are, it's who you know."