Scots face Far East 'recruitment war'

Published on Saturday 23 February 2008 16:38

SCOTTISH companies expanding into Asia are likely to face a "recruitment war" with other western firms over skilled workers, experts are warning.

With the number of western companies moving into China and other emerging Asian economies expected to rocket over the next three years, experts are predicting the demand for local skilled workers will far outstrip supply.

According to a report to be published this week from global recruitment firm StepStone and the Economist Intelligence Unit, Asia will become a fierce battleground between western companies as they struggle to find enough local employees to fulfil their expansion plans.

Colin Tenwick, chief executive at StepStone, told Scotland on Sunday: "Many companies will have to prepare themselves for a huge battle for talent, one that is even tougher than in Europe and North America. Asia is seen as the engine for growth, but without the right people businesses will see their engine splutter and may not get out of first gear."

The report shows almost half of chief executives from American, European and Asian multinationals expect the Asia-Pacific region to offer their businesses the best opportunities to boost revenue over the next three years – particularly in light of the ongoing credit crunch.

Tenwick warned that western companies which were traditionally able to attract the best local employees with promises of higher wages and global job prospects will also face tough competition from the growing number of Asian multinationals, which are becoming increasingly prominent in the world economy.

He said: "It is increasingly likely that Asian multinationals will be training the cream of the crop (of Asian graduates] and then exporting them abroad (to execute their own expansion plans]."

He warned that western companies could no longer arrogantly look upon countries such as China as a source of cheap skilled labour. "The idea of Asia as a low-cost utopia with an abundance of labour is long gone."

Wendy Liu, Scotland manager for the China Britain Business Council, said the shortage of senior managers capable of working in foreign financial services, legal and other firms in Asia is particularly acute.

She said: "I think the real shortage lies in the supply of senior management level people.

"For a foreign-invested company in China, the senior management not only needs to have a good understanding of the business and the market in China, but they also need to know how to manage the company in a way that is both acceptable for the local staff and the overseas headquarters.

"The salary for skilled workers will become higher as the economy grows and the living standard increases in China."

Niall Stuart, government affairs manager at the Scottish Council for Development and Industry, advised Scottish companies expanding into the Far East to work with local firms that will be better positioned to find the staff they need. He said: "You really need to partner with someone on the ground."