Sveta Karnyenka
Multinational companies (MNCs), in China, are concerned about retaining and attracting highly-skilled young professionals. In 2001, 41% high-skilled Chinese professional chose foreign MNCs for their first employment choice, while only 9% preferred domestic firms. There has been a marked shift in the preferences of high-skilled Chinese professionals. Recent data from Liepin – a leading platform for high-end career advancement in China – and the China World Youth Summit show that young Chinese talent now prefers state-owned companies, with 32.39 % choosing them as their first choice, compared to 7.8 % who choose foreign companies (Baidu 2022). In such a climate, MNCs face a major challenge in attracting the best young talent.
The current research aims to determine what is most attractive to young talent from China. The MNCs will be able to better communicate their employer branding strategy, and thus regain their competitive edge in the labor market. Our goal is to provide companies with valuable insights on how to attract and retain young talent in China.
Methodology
Our analysis is based upon the Employee Brand Index (EBI), developed by Link Humans. The EBI model is a 16-dimensional employer brand evaluation that includes factors such as Company Culture, Balance and Wellbeing and Benefits. The EBI uses a scale of 0-10, with 10 being highest. Share of Voice (SOV) is used to measure the level of data. It refers to how many times each attribute has been mentioned.
We collect publicly available data on employer branding, with a focus on employee, alumni and candidate input. We categorize data using AI and human annotation. The score is calculated for each attribute based on a ratio of positive to negative sentiment. The EBI score for the overall EBI is calculated by adding up all 16 EBI scores, weighted according to their respective SOV. Word clouds are created to highlight the key keywords for each attribute. We then conduct a thematic evaluation, which includes coding the keywords and identifying patterns and themes.
We collected 19,337 data-points from Chinese talent in 2023. This research focused on the entry-level talent and accounted for 5,060 points. Data is collected from 25 multinational companies with offices in China. These include FMCG, pharmaceuticals, automotive, technology and other industries.
The data collected from this research is based on the data of entry-level employees, who best represent young talent. Our methodology defines entry-level talent as people with titles like intern, trainee or assistant. This analysis is focused on the attributes that have the highest SOV in order to identify which aspects attract the most young talent.
The Benefits of this Approach
In previous research conducted by Wenjuan.com and Liepin, questionnaires were given to recent graduates in order to identify the factors that attracted young talent before they began employment in China (China Youth Online 2022, Chinese Internet Data Information Network 2023). However, our research is based on empirical information from newly hired entry-level employees. Our method collects large amounts of data, from a variety of platforms and users. This provides a large dataset for reliable analyses. This approach uses real-time data in order to capture reactions to topics or events. Data is more real-time and extensive. It represents a natural discourse. The data allows us to accurately measure the employer brand and without bias. This gives us a better understanding of what truly attracts young talent.
Findings
We identified four key attributes (or the ones with the highest SOV) that are most discussed by young talent. The key factors that attract young talent are Learning and Development (or Career Progression), Management and Organization (or Benefits and Perks), and Benefits and Perks.
We will now focus on the keywords that are most important to each of these attributes.
Learning and Development
Learning and Development, which account for more than 10% of the discussions, are the attributes most discussed by young talent in China. The word cloud shows that ‘internships’ and ‘interns’ appear in 72%. We conducted a qualitative data analysis to understand the themes that underlie keywords.
In China, entry-level talent places a high value on global experience and the opportunity to work for Fortune Global 500 companies. They place a high value on self-growth and the opportunity to learn new skills and explore different roles. Also, they highly value comprehensive training and robust learning platforms.
Mentorship programs are also highly praised by young professionals. They value having a mentor from a company who is truly invested in their growth. Weekly or daily one-on-ones to discuss questions and tasks are particularly valuable. A mentor who is ideal will share insights, be patient, and teach the finer details. They may also involve interns in complicated projects or let them lead one. Mentors who encourage interns’ own ideas are particularly appreciated by young talent.
Despite the positive sentiment, there were some negative aspects. Some of these include menial tasks such as buying food or coffee, which don’t contribute to professional development or learning.
Summary: Young talent in China is attracted by employers who offer continuous learning, comprehensive training and effective mentoring programs. These elements are deemed crucial to their professional development.
Career Progression
In China, the second most discussed attribute is career progression. The keywords “opportunities for career development”, “career growth”, and “advancement” are often used. Companies that offer the chance to develop new skills and explore different roles are highly valued. The ability to move around within an organization and gain different experiences is highly valued by young professionals. They believe that this is essential for long-term success.
In China, promotion opportunities are especially important for new employees. The possibility of climbing the corporate ladder, whether it is gradual or rapid, is crucial. Young talent is looking for clear career paths. They are searching for companies who have a set of steps that they can follow to progress in the company.
One of the main attractions for interns is the chance to become a permanent employee. Interns want to know how companies handle transitions, since internships are often seen as a stepping stone for long-term employment. Talent is attracted to companies with high rates of transition.
Entry-level talent in China is attracted to employers that offer diverse roles and clear career paths, as well as opportunities to move from internships into permanent positions.
Management and Organization
According to research, , the leadership style of China, has traditionally been very directive and delegation-oriented. However, young employees prefer a participatory and coaching leadership style, and have a high need for involvement. Our data also shows similar findings.
The word cloud shows that “support” was one of the most commonly used keywords to describe this attribute. The young talent in China wants a manager who is kind, supportive and helpful, listens to subordinates’ ideas, and cares for them. Leaders who offer step-by-step feedback and provide frequent guidance are valued by young professionals. They want managers who will listen to their ideas and are supportive. These management practices will help companies retain and engage young talent that values a respectful, healthy workplace.
In China, the process of interviewing is also very important to entry-level talent. Interviewer’s attitude and style can have a significant impact on the perception that the candidate has of the company. It is important to have a positive and respectful interview experience in order to attract and retain young talent. This reflects your company’s culture and management style.
Entry-level talent did not only note positive experiences, but also some negative ones. In Chinese, “PUA” is a term for psychological manipulation and emotional abuse. PUA is when managers exploit employees and undermine their self-esteem. Young professionals want a respectful, healthy relationship with their manager and they are not happy with the menial tasks assigned by managers.
Conclusion: Young professionals in China look for flexible and supportive management. Managers who are open to their ideas and provide clear guidance as well as foster a respectful working environment are valued by young professionals in China. Companies that want to attract and retain top entry-level talent must address these needs, and ensure a positive interview.
Benefits and Perks
Benefits and Perks is a key attribute of the EBI that focuses primarily on extrinsic incentives. We identified from our analysis of the key keywords several benefits and perks for entry-level workers in China.
The provision of food and drinks is one of the most discussed perks. Employers who provide unlimited fruit, chocolates and ice cream as well as coffee and tea are praised by young talent.
Young talent in China is also attracted by flexible working hours, health and wellness programs and other benefits. Flexible working hours and the ability to work at home for a few days a week gives greater freedom, and improves work-life balance. This is a significant departure from traditional clocking in and checking out. Also, benefits for health and wellbeing such as massage and gym services, fitness cards and yoga classes at the office, are highly praised.
They also enjoy participating in corporate events, such as escape rooms, parties, and clubs. Also, they value corporate volunteer days, family days, and health days. Gift packages and recognition also matter to young professionals. Gift cards, anniversary joining gifts and gift packages for Chinese New Year or other holidays are popular with young professionals.
Young professionals also need comprehensive insurance. Young professionals often mention the importance robust insurance coverage including five social security funds, one housing fund, commercial medical insurance, etc.
Entry-level talent at FMCG firms often highlights the appeal of discounts and freebies. It is very attractive to be able to purchase internal products at discounted rates or receive them free. Employees are attracted to programs that let them redeem products using points or try new products before their launch. Some companies extend these benefits to their family members. This is highly valued.
To attract young talent to China, employers must offer a comprehensive set of benefits and perks. Entry-level employees highly praised the benefits they received, including flexible hours, wellness programs, comprehensive insurance, and food.
Additional findings
Social media accounts for 76% of the data collected in China in 2023 on entry-level talent. This shows that Chinese young talent prefers to initiate topics on social media about employers rather than post reviews on employer-review sites. Social media data is only 4.81 % of our global averages. This shows that MNCs need to use Chinese social media platforms to reach young Chinese audiences.
The conclusion of the article is:
Our research, using the EBI, identified four attributes about which young talent in China most often speaks: Learning and Development; Career Progression; Management and Organization; Benefits and Perks. We identified themes and patterns by analyzing the keywords that were associated with each attribute. These results suggest that MNCs could enhance their employer brand by focusing more on these dimensions, and addressing specific themes identified.
- In Learning and Development young talent frequently spoke about opportunities for continuous learning, comprehensive training and effective mentoring programs.
- In Career Progression they often mentioned the opportunity to explore diverse roles, have clear promotion paths, and to transition from internships into permanent positions.
- In Management and Organization a supportive management that is open to employee ideas is important.
- In Perks and Benefits young talent spoke highly of diverse benefits, from flexible working to company-organized events and food.
These themes can be used as recommendations to help companies improve their employer brand in the region.
This research also showed that social media is a great way to promote and showcase a company’s employer brand among young Chinese people, since 76% of the data is sourced from social media. That is a much higher percentage than the global average, which is less than 5%.
References
- Harvard Business Review link, accessed on June 12, 2024: Link.
- Baidu link accessed 12 June 2024: Link.
- China Youth Online link accessed 13 June 2024: Link.
- Chinese Internet Data Information Network link, accessed on June 13, 2024: Link.
- Shuang Ren, Yuhua Xie, Ying Zhu, Malcolm Warner (2018). The preferences of the new generation of employees in China towards leadership styles. Asia Pacific Business Review 24, 437-458.
