Talent Mobility Trends In China: Short-term Assignments on the Rise

Our latest Talent Mobility in China survey of talent mobility practices in almost 120 companies operating across the country indicates that inbound mobility remains relatively stable. This is despite China’s current shift to single-digit economic growth and uncertainties in key home destinations, such as US and Europe, and reflects China’s ongoing importance.

Looking ahead, respondents predict movement of foreign national employees into the country will follow similar patterns to previous years and anticipate net increases in moves of all types.

However, there is a significant increase in the number of respondents looking to deploy employees on short-term assignments.

Key Shifts in Inbound Assignment types to China

Short-term assignments have been growing in popularity over the past two years. More than a third of responding companies predict an increase in short-term moves during 2017. 

In a finding echoed in conversations with mobility managers, our survey shows short-term assignments support both proactive and reactive business needs. Respondents gave the following as the top three reasons for short-term assignments:

1. Project/task completion (68%)
2. Employee development (56%)
3. Business needs (53%)

For the second year in a row, respondents graded the link between talent mobility and talent management strategies at 2.9 on a five-point scale. As such, short-term moves offer an opportunity for mobility to be more aligned with talent management strategies.

For around three-quarters of respondents, cost is also a factor in the shift from long-term assignments to short-term assignments. 

What are the biggest challenges of short-term assignments in China?

The top five challenges for short-term assignments are:

1. Environmental issues in host location (35%)
2. Taxation issues (33%)
3. Language issues (31%)
4. High housing costs (30%)
5. Medical care and immigration issues (both 28%)

The findings suggest there are opportunities for companies to enhance policy approaches to well-being, cultural issues and compliance in short-term moves to China, with benefits for the organization and employees on assignment. 

There is an opportunity for longer term thinking to optimize talent mobility programs and respond to the challenges. Short-term assignments that are integrated with talent management, wider organizational strategy and address the wellbeing, financial and cultural challenges employees face in China can deliver greater value to organizations and relocating employees, strengthening engagement and performance.