Talent pools in China are shrinking and the need for executive search partners is growing
As an executive search firm specialized in the Chinese market, we understand that, for foreign companies, hiring in the Chinese market represents a challenge mostly due to cultural differences. And this process will get harder in the next decades due to the shrinking of China’s talent pool.
According to the Chinese Academy of Social Sciences, China’s population is shrinking faster than expected. Moreover, by 2027 an estimated 324 million people (22% of the population) in China will be over the age of 60, according to the World Economic Forum's report 'Future of Consumption in Fast-Growth Consumer Markets: China'.
How the shrinking of the Chinese population affects the talent pool in China.
Chinese companies are betting on the automation as a solution to the aging of the Chinese population and the lack of a generational replacement; this measure will reduce middle and lower-income employees but according to the “Labor 2030 The Collision of Demographics, Automation and Inequality” it will also cause the migration of workers towards higher-skills jobs.
Because of this phenomenon, the challenge for companies will be to attract, grow, and retain talent.
In a highly competitive and rapidly changing environment like the one in China, there will be high competition for talent. It will be even higher in specialized roles and management positions. The need for executive search partners will probably increase as it is likely that companies use every available resource to be ahead of the competition for the best talent.
An investigation by Bain/ EIU found that companies that underinvest in human capital see their productivity affected. For this reason, an Executive Search partner will help companies, not only to find the best candidate for a specific role in a changing environment that will demand new and evolving talent needs, but an executive search partner will also help companies to reduce their turnover rate. They will do this by understanding the need for their human resources and how to train them and develop them up to their highest potential.
We are Zavala Civitas, we have walked alongside our clients supporting them in matters ranging from Executive Search to broader Organizational Consulting. We are ready to be your talent and Organizational partner in China & East Asia and to tackle new challenges and risks with your firm.