Multinationals seek top talent despite weaker sales outlook: Study

More top talent was sought in China this year by multinationals with a noted shift to high-caliber local prospects, though a slightly weaker sales outlook weighed.

Seth Peterson, a partner in the Hong Kong office of Heidrick & Struggles and a member of the Industrial Practice. [Photo provided to China Daily]

Global executive search and consulting firm Chicago-based Heidrick & Struggles International Inc, said that half of the 119 multinational executives with responsibility over China operations said headcount would likely show an increase by the end of 2015 over the previous year.

The survey of managers released in October, however, noted that the overall level of hiring expectations dropped to 50 percent from 58 percent in 2014, and the difference was accounted for by sales growth prospects.

"For those companies that are growing, they may be adding headcount," said Seth Peterson, a partner in the Hong Kong office of Heidrick & Struggles and a member of the Industrial Practice. "Certain sectors have more favorable conditions and outlook than others."

Sixty percent of the respondents worked at companies with more than 1,000 employees, the firm said, while Peterson noted they faced rising labor costs as domestic firms sought the same talent pools, particularly in manufacturing.

But the number of companies that said sales would increase in 2015 dropped to 75 percent from 80 percent in 2014, with just over half saying profits would likely rise this year, the survey said.

The search for local talent was a major focus for all firms, Peterson said, with a variety of programs in place such as sending Chinese staff overseas to groom them for eventual assignment back in China.

"It has been the intention of most multinationals to develop their local talent pipelines and fill openings wherever possible with local leaders," said Peterson. Still, the survey saw 15 percent of respondents say a skills gap would lead them to hire more foreign employees.