A survey of senior executives highlights what works—and what doesn’t—when it comes to attracting and retaining talent in China.
Getting employer branding right in China
ASIA PACIFIC AND MIDDLE EAST REGION
In China, as in any market, a company’s reputation for how it manages, rewards, and empowers its employees can have a significant impact on its ability to hire the best people. For multinational companies (MNCs) in China, the importance of their “employer brand” is growing as the evolution of domestic industry titans such as Alibaba, Haier, and Huawei into successful global companies has heightened the competition for top performers.
Conventional wisdom says that employees in China
care most about financial rewards. Prestige attached
to working for a big brand is also thought to play a
major role in their decision making.1 But are these
really the most important factors when experienced
hires in China are deciding where to move?
Our survey of senior executives in China (see sidebar,
“About the research”) finds that while financial
incentives do matter, a much broader set of factors
influences employee decisions about whether to
join or stay with a particular company. The quality
of the company’s leadership is a top consideration.
Corporate culture is also highly important, as
are opportunities for individual learning and
advancement. And the rise of disruptive e-commerce
and Internet firms is shaking up employees’
perceptions of what makes a company
an attractive prospect.
Taking it from the topHaving the right leadership team in place is a
clear priority for talented people in China making
decisions about a potential employer. When
asked to pick the three most important factors
that make an organization a good place to work,
respondents name “high quality of senior leadership”
first, followed by “attractive culture” (that is, one
characterized by openness and diversity), and only
then a competitive employment offer in terms of
salary and benefits (Figure 1).
Charisma and diversity are needed to attract the best . . .What specific qualities do businesspeople in China
value in senior leaders? An overwhelming majority—
some 91% of the executives in our survey—say that
1 For instance, a 2013 study by Ernst & Young found that working for an “elite industry leader” was more desirable to professionals in China than a company’s rapid growth or financial strength. See Ernst & Young, “How to secure top talent in the BRICs,” January 23, 2014, ey.com.
Figure 1: What makes an organization a great place to work?
What are the most important factors that make an organization a good place to work? (Respondents selected their top three, thus totals do not sum to 100%)
n=151
High quality of senior leadership
Attractive culture (e.g., openness, diversity)
Competitive employment o�er (salary and bene�ts)
Good brand and reputation
Clear personal development/training opportunities
Good business performance
High quality of sta�/colleagues
Dynamic industry sector
Clear promotion/advancement path
Clear corporate structure
Robust corporate social responsibility program and commitments (including charitable work)
360-degree feedback
57%
52%
49%
32%
25%
22%
20%
18%
15%
7%
3%
0%
2 Getting employer branding right in China
having senior leaders who are charismatic, inspiring,
credible spokespeople is important to their decision
to join a company (Figure 2). This aligns with the trend
of “CEOs as celebrities” that has been pervasive in
recent years, with high-profile, charismatic executives
such as Alibaba’s Jack Ma and Baidu’s Robin Li
becoming synonymous with their company’s image and
brand and inspiring employees and customers alike.
Intriguingly, separate research by Heidrick & Struggles
into the leadership styles of more than 1,400 senior
executives based in the Asia Pacific region finds that
leaders demonstrating such characteristics—namely,
“Energizers” who have the ability to inspire and connect
emotionally with employees around a common purpose—
appear to be more common in the region than elsewhere.2
What qualities did respondents value less? Factors
such as senior executives’ tenure with the company
and whether they are of local or expatriate origin
are considered less important than having a diverse
leadership team in terms of nationality, race, gender,
tenure, and background. The era of primarily importing
international leaders to run operations in China
may be gone, but the best leadership teams are not
exclusively local either: employees want to see an
effective executive team in place with a mix of skills
and experience. This echoes findings elsewhere that
having diverse leadership leads to better outcomes.3
2 See Heidrick & Struggles, “Senior executives in Asia more likely to favor a team-focused leadership style than are executives in other regions,” press release, June 27, 2016, en.prnasia.com/story/152732-0.shtml.
3 For example, see Francesca Lagerberg, “Asian leaders value creativity and intuition more than Europeans do,” Harvard Business Review, June 5, 2014, hbr.org.
Heidrick & Struggles surveyed 151 senior executives
working at multinational companies in China in a
wide range of industries: 42% from industrial sectors
such as automotive, chemicals, energy, and
construction; 19% from consumer products, retail,
and hospitality; and 16% from healthcare. All
respondents came from companies with more than
5,000 employees globally, and 79% have more
than 1,000 employees in China. For a majority
(59%), China accounts for more than 10% of their
company’s global revenues.
About the research
Industrial 42%
Conglomerate2%
Professional services
3%
Financial services
5%
Education/not-for-pro�t
1%
Technology10%
Consumer19%
Marketing services
2%
Healthcare/ life sciences
16%
Figure 2: Leadership qualities that candidates look for in a company
Considering a company's leadership, how important are the following in your decision on whether to join?
Very important
Somewhatimportant
The senior leaders are charismatic, inspiring, credible spokespeople.
The senior leaders represent a diverse group in terms of nationality, race, gender, tenure, and background.
The senior leaders have worked and lived on di�erent continents.
The senior leaders are of local (Chinese) origin and are very familiar with the geographies/cultures in which they operate.
The senior leaders have been with the company for a long time.
The senior leaders are expatriates or not of local origin.
50%
17%
13%
12%
11%
3%
41%
47%
39%
26%
34%
13%
Heidrick & Struggles 3
. . . while trust and transparency will make them stayInspiring leaders might make a company an attractive
prospect from the outside, but what makes senior
executives in China stick around? Retention is important,
since rapid churn is a constant worry for many MNCs
in China. Research by Mercer showed voluntary
workforce turnover at Chinese companies in 2013 was
13%—higher than a churn rate of 11% in India, 9% in
the United Kingdom, 8% in the United States, and less
than 4% in Germany.4
Leadership, again, appears to be the key to retaining
executives. Our survey respondents are most likely
to cite trust and transparency as “very important”
considerations in their decision to stay with a company
(Figure 3). This preference reflects the growing
expectation of information sharing within and
between departments in an era of rapid information
flow and open-access platforms, as well as an ethos
of collaboration and teamwork rather than top-down
micromanagement. Similarly, the ability of senior
leaders to communicate clearly and embrace change,
innovation, and technology are also significant
retention factors—much more so than having a flat
management structure.
The importance of cultureThe tone set by senior leadership helps to shape
corporate culture throughout the organization,
another factor that ranks highly in our survey as
an important consideration in employee decision
making about job moves. Prospective hires and
employees alike in China want to see that the
company has a clear vision and mission and strong
organizational strategies, as well as that employees’
contributions to company success are valued (Figure
4). Fully 99% of respondents say that recognition
of high achievers is important to them, in addition
to characteristics such as having a friendly and
collaborative workplace (93%) and respect and
encouragement for diverse thinking and new ideas
(91%). These results are similar to our previous survey
of senior executives across the Asia Pacific region,
which found diversity of thinking in the workplace
is the most important characteristic, with 98% of
respondents saying it was important to them, while
recognition of high achievers was in second place,
at 97%. (For the full survey, see “What are your
employees really saying about you?” on heidrick.com.)
At a glance
What do senior executives in China’s fast-evolving
business environment look for in their employers? Our
research shows that corporate leaders want to work
for employers with the following three characteristics:
Charismatic and driven leaders. In an era defined by
corporate leaders as high-profile and successful as Jack
Ma, Lei Jun, and Ren Zhengfei, employees in China
value charismatic and inspiring leaders—even more
so than an attractive work culture and a competitive
employment offer.
A disruptive and innovative business model. With
China’s economy being disrupted by e-commerce and
the mobile Internet, senior executives want to work at
nimble and innovative firms. They favor companies in
high-growth industries and those that have a new or
original business model with the potential to disrupt or
challenge established businesses.
Challenge and opportunity, not just money. While
money is still important, financial considerations are not
the only element that executives in China weigh when
considering a company. They want a challenging role,
the opportunity to develop expertise in new areas, and
a company with the right culture. 4 David Elkjaer and Sue Filmer, Trends and Drivers of Workforce Turnover: The Results from Mercer’s 2014 Turnover Survey, and Dealing with Unwanted Attrition, Mercer, July 16, 2015, mercer.com.
4 Getting employer branding right in China
Daring to be disruptiveWith the rapidly changing nature of China’s
economy—particularly the disruptive potential of
e-commerce and technology—old assumptions
about the appeal of state-owned enterprises (SOEs)
and long-established brands are no longer accurate.
Indeed, the most talented Chinese employees have
not only the Internet giants such as Alibaba, Baidu,
and Tencent to choose from but, increasingly, an array
of smaller, privately owned domestic firms as well.
Our survey shows that the vast majority of
respondents (90%) value an office with a good level
of autonomy and the ability to implement decisions
quickly; meanwhile, 82% of respondents say that
being in a high-growth industry makes a company
more attractive to join, and fully 70% note that having
a new or original business model with the potential
to disrupt or challenge established businesses is an
important factor (Figure 5). Taken together, these
responses (along with our findings on the high
importance that executives place on diverse thinking
and new ideas) underscore China’s shift to become a
more entrepreneurial economy5 and the government’s
corresponding push to promote business innovation.
Significantly, the appeal of working at an SOE is at
rock bottom: just 4% of executives surveyed consider
this an important factor in their decision making.
Moreover, just 24% of executives say that having
a favorable and famous corporate brand is “very
important” to a career decision to join or stay
with a company (Figure 6). Even fewer place great
importance on a company having a long history,
with more than half of respondents ranking this as
a neutral or unimportant factor. Much more valued
is a company with services or products that are
considered superior (92% consider this important)
and a reputation as an innovator in its field (87%).
Brand is still among the top three, but it is not as
dominant a consideration.
Figure 3: Leadership qualities that encourage employees to stay at a company
Considering a company's leadership, how important are the following in your decision on whether to stay?
Very important
Somewhatimportant
The senior leaders trust their sta�.
The senior leaders have a high level of transparency.
The senior leaders foster two-way communication between management and employees.
The senior leaders embrace change, innovation, and technology.
The senior leaders are inspiring.
The senior leaders clearly understand the competitive advantage of the business and the organization.
The senior leaders maintain a nonhierarchical management structure.
62%
53%
51%
47%
43%
37%
25%
34%
42%
42%
47%
46%
48%
44%
Figure 4: Company culture
Considering a company's culture, how important are the following in your decision on whether to join or stay?
Very important
Somewhatimportant
The company recognizes high achievers.
The company has a clear vision and mission and strong organizational strategies.
The company respects and encourages diverse thinking and new ideas.
The company o�ers a friendly and collaborative workplace.
The company is results-driven.
The company gives global recognition to successful teams in China.
The company ensures its leaders are visible and accessible.
54%
50%
45%
41%
38%
37%
32%
45%
44%
46%
52%
51%
50%
51%
5 See Edward Tse, China’s Disruptors: How Alibaba, Xiaomi, Tencent, and Other Companies Are Changing the Rules of Business, New York: Portfolio/Penguin, 2015.
Heidrick & Struggles 5
Opportunity beats moneyAs the competition for talent heats up, companies are
finding that they must offer more than just attractive
compensation. Simply put: growth potential and
the opportunity to develop new expertise are more
important than remuneration.
Our survey results support the view that companies
need a stronger employee value proposition (EVP)6
to attract and retain the best recruits in China. Senior
executives appear to place much less importance
on some of the other perks that are typically
included in a company’s EVP in China, such as
overseas assignments and educational sponsorship.
This suggests that these attempts by prospective
employers to sweeten the deal won’t be as effective
as strengthening the core attributes of the job such
as the level of challenge, the corporate culture, and
career prospects (Figure 7). (For more about creating
talent strategies in China, see “Winning the war for
talent in China’s ‘new normal’” on heidrick.com.)
This openness to risk and challenge and preference
for disruptive, innovative companies may also be linked
to the disinclination of executives in China to prioritize
job stability as a deciding factor. While job stability
was considered significant to 74% of respondents, just
16% said this would be a “very important” element of
the EVP. In a fast-changing business environment where
frequent career moves and high annual turnover are
considered normal, other priorities hold more sway.
Fighting employee churnThe relevance of understanding what current
and future employees value in an employer is
underscored by the continued high rates of turnover.
Roughly 31% of executives in our survey say they are
currently looking for new opportunities and hope
Figure 5: Company business model
Considering a company’s structure/business model, how important are the following in making a company an attractive place in which to work?
Very important
Somewhatimportant
The regional and local o�ces have a good level of autonomy and are able to implement their own actions quickly.
It is in a high-growth industry.
It has a structure with clear reporting lines.
It has a new/original business model (e.g., the potential to disrupt or challenge established businesses).
It has a diversi�ed business portfolio.
It has a matrix structure where employees work across teams.
It has branches in numerous countries and regions.
The global headquarters is in Asia.
It is publicly listed.
It is privately owned.
It is a start-up.
It is owned by the state (an SOE).
45%
33%
28%
23%
13%
10%
9%
6%
4%
2%
1%
1%
45%
49%
50%
47%
46%
42%
52%
16%
21%
7%
15%
3%
Figure 6: Company reputation and brand
Considering a company's reputation and branding, how important are the following in your decision on whether to join or stay?
Very important
Somewhatimportant
It has services/products that are considered superior.
It is recognized as an innovative leader in the �eld.
It has a favorable and famous corporate brand.
It has extensive success with its digital/innovation strategy.
It promotes social responsibility.
It is regarded as a disruptor in its industry.
It is spoken about positively by my peers.
It has a long history.
It is spoken about positively by my family.
It wins industry or organization awards.
36%
26%
24%
17%
14%
13%
9%
7%
5%
3%
56%
61%
56%
46%
53%
50%
67%
39%
32%
32%
6 EVP refers to the rewards and benefits that an organization offers in exchange for the performance, skills, and experience an employee brings to the company. It is also called the employment deal.
6 Getting employer branding right in China
to leave within 12 to 18 months; an additional 29% say
they may leave within the next two years if better
opportunities are available (Figure 8). This finding
suggests that employees in China are liable to have
less patience with a suboptimal status quo at work than
are employees elsewhere in Asia. In our previous Asia
Pacific survey, just 30% said they were considering
leaving their employers, and only just over half of this
group hoped to leave within the next 18 months.
The indication that many executives in China are
in constant pursuit of a better job is also consistent
with what they say that they seek from an employer:
challenge, new learning, and career opportunities,
over stability and financial security.
ConclusionWith a heightened understanding of what current
and future employees want, companies can look
for ways to identify which elements are already in
place and seek to embed others that may be lacking.
Building an employer brand is then just a matter
of communicating effectively to prospective hires
7 Universum, 2020 Outlook: The Future of Employer Branding, 2015, universumglobal.com/insights/future-of-employer-branding.
Figure 7: The employee value proposition (EVP)
Considering the employee value proposition (EVP), for you to stay at a company, how important is it that it o�ers the following?
Very important
Somewhatimportant
Challenging roles and the opportunity to develop my expertise in new areasA culture that suits meGreat career prospects, with promising promotion opportunities
A high basic salary and attractive bene�ts (compared with equal positions at other companies)Potential stock/equity options Promotion opportunities for a future global roleA solid training and development programJob stability
Flexible work hours, the option to work from home, and other means to maintain a good work/life balance One- to two-year overseas assignments Educational sponsorship
45%
40%
38%
36%
26%23%19%16%
13%
11%4%
47%
49%
56%
59%
56%51%58%58%
39%
40%42%
about company values and practices, whether through
the company website, social networking sites, or other
channels. In many cases, employer branding can also be
aligned with consumer branding efforts, with a recent
survey finding that around one-third of companies have a
strategy that strongly connects the two.7
Many of the ideals highlighted by executives in China
in this survey resonate globally, including a culture of
trust, transparency, and collaboration among colleagues;
senior leadership that inspires and embraces innovation;
a challenging yet rewarding role; and the autonomy
to take quick action. Building these values into the
workplace and employer brand should yield significant
returns in recruitment and retention in China.
No; I expect to stay here at least another one to two years.13%
n = 151Yes; but I am not actively looking.6%
Maybe; I may leave within the next two years if better opportunities become available.29%
Yes; I am currently looking around and hope to leave the �rm within the next 12 to 18 months.31%
No; I want to stay here at least another two to �ve years.21%
Figure 8: Are you considering a new opportunity?
About the authorsKaren Fifer ([email protected]) is the regional managing partner of Heidrick & Struggles’ Consumer Markets Practice for Asia Pacific and the Middle East; she is based in the Hong Kong office.
George Huang ([email protected]) is partner-in-charge of Heidrick & Struggles in China; he leads the CEO & Board and Global Technology & Services practices in China and is based in the Beijing office.
Linda Zhang ([email protected]) is partner-in-charge of the Shanghai office and leads the Human Resources Officers Practice in China.
Heidrick & Struggles 7
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