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China's fast-growing economy has led multinational companies to assign more senior executives to China, according to a new study.

 

Chinese executives have also been sent by the firms to take up positions in other countries.

 

The 2005 Worldwide Benchmark Study: Emerging Trends in Global Mobility: China suggests this trend will continue over the next three years.

 

The survey was conducted by Cendant Mobility, a US-based human resources consulting company. Professionals from 109 global corporations in 15 countries participated in the survey.

 

Respondents reported an increase in all types of assignments; nine out of 10 expected their companies would increase or keep the same amount of assignments in the next three years.

 

"Those assigned to China are usually senior managers, such as chief executive officers, chief finance officers and key research and development employees," said Shao Dan, the company's chief representative in China.

 

She said staff sent from China to other countries were often middle managers who would be expected to take up higher positions in China after learning more about Western culture, management and communications.

 

Some global companies sometimes use China as a "talent pool," sending staff from the country to develop businesses in neighboring states.

 

The survey also revealed that besides the continued expansion of traditional business centers, such as Shanghai and Beijing, respondents expected to see a sharp increase in executive assignments to second tier cities in China, such as Dalian and Shenyang in Liaoning Province; Chengdu in Sichuan Province; and Tianjin and Chongqing municipalities.

 

"Businesses in China are striving to ensure their strategies keep pace with the country's explosive economic growth," Shao said.

 

"Whether it's looking for new cities to locate their businesses, sending executives to learn in the United States or Europe, or increasing their focus on the services they provide to their employees, businesses in China are working through a period of significant change."

 

The report showed that China still faces a shortage of skilled senior executives, which has resulted in increasing external recruitment and assignment from outside China.

 

The survey found that more than 30 percent of respondents reported a shortage of skilled employees in jobs such as management and administration, information technology, finance and accounting, and sales and marketing.

 

"There are significant challenges when it comes to talent," said Shao. "Companies are responding by aggressively recruiting and grooming their own talent within China to meet their growing demands and long-term needs."

 

(China Daily January 17, 2006)