Tuesday, April 03, 2007
HSBC HIGHLIGHTS CHINA STAFFING WOES
By Geoff Dyer in Shanghai
Tuesday, April 03, 2007, FT
HSBC has added to concern about the hiring crunch facing multinationals in China, saying there are not enough suitable candidates on the ground to back expansion drives.
Richard Yorke, chief executive of HSBC China, said finding enough experienced staff and training them adequately was the toughest issue he faced.
“This [recruitment] is the largest blockage that we face,” Mr Yorke said yesterday as HSBC and other foreign banks opened locally incorporated subsidiaries to operate in the Chinese retail market. “It is a question of managing high rates of growth in the business in an environment of low general levels of experience.”
His comments highlight the battle for talent in the financial services industry in China, a result of rapid expansion of domestic and international companies in a sector that has been gradually opened up to competition under Beijing's accession to the World Trade Organisation.
Investment by multinationals in China in recent years has squeezed the pool of available staff, making it harder for companies to hire and retain good workers in industries including engineering, cars and finance.
In surveys of foreign executives in China staffing has often been listed as a bigger problem than copyright violations or government relations.
HSBC expects to hire 1,000 people this year. Its present headcount is 3,000.
Citigroup plans to hire a similar number. Standard Chartered said it did not have a specific target for this year. It grew its headcount from 1,200 to 2,200 last year.
With Hong Kong's Bank of East Asia, the banks yesterday unveiled their locally incorporated businesses, which will be able to take local currency deposits from retail customers in China. Before the operations can formally begin business, they must pass an inspection by the Chinese banking regulator. ¶ 11:18 AM
Tuesday, April 03, 2007, FT
HSBC has added to concern about the hiring crunch facing multinationals in China, saying there are not enough suitable candidates on the ground to back expansion drives.
Richard Yorke, chief executive of HSBC China, said finding enough experienced staff and training them adequately was the toughest issue he faced.
“This [recruitment] is the largest blockage that we face,” Mr Yorke said yesterday as HSBC and other foreign banks opened locally incorporated subsidiaries to operate in the Chinese retail market. “It is a question of managing high rates of growth in the business in an environment of low general levels of experience.”
His comments highlight the battle for talent in the financial services industry in China, a result of rapid expansion of domestic and international companies in a sector that has been gradually opened up to competition under Beijing's accession to the World Trade Organisation.
Investment by multinationals in China in recent years has squeezed the pool of available staff, making it harder for companies to hire and retain good workers in industries including engineering, cars and finance.
In surveys of foreign executives in China staffing has often been listed as a bigger problem than copyright violations or government relations.
HSBC expects to hire 1,000 people this year. Its present headcount is 3,000.
Citigroup plans to hire a similar number. Standard Chartered said it did not have a specific target for this year. It grew its headcount from 1,200 to 2,200 last year.
With Hong Kong's Bank of East Asia, the banks yesterday unveiled their locally incorporated businesses, which will be able to take local currency deposits from retail customers in China. Before the operations can formally begin business, they must pass an inspection by the Chinese banking regulator. ¶ 11:18 AM
