Hiring Challenges in China

Forbes recently ran a good piece on the challenges of hiring the right set of talent in China (hat-tip: Brian Sommer). For organizations that are in the process of creating IPOs (international procurement offices) and moving away from expatriate staffing models, the article is a must-read. What you learn might scare you. According to the article, when hiring in China, "there are no good national databases for checking employment histories, education credentials and criminal records." And in a country where an English speaking receptionist costs between $2,000-$2,500 a year in Beijing, the "cost to check out a potential or past hire can range from $100 to $5,000, more than in the U.S., where criminal, legal and credit databases are more easily checked. The expense and hassle deters some businesses from even bothering . . . Resume fraud is rampant, and applicants frequently forge names on recommendation letters." Before you get rid of those six figure LCCS expats in favor of local Spend Management talent, perhaps you should reconsider the total costs involved in finding the right individuals. Like global sourcing, it's the total cost factors that can come back to bite!

Jason Busch

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