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Talent Retention Problems Rise in the East

Posted on Wednesday, April 4 by Registered CommenterRichard Edwards in | CommentsPost a Comment

If a shortage of supply chain talent is an ongoing concern for businesses across Europe, it seems the problem is nowhere near as accute as in far-east, and in particular, China.

A recent HR summit of China’s Supply Chain Council, claimed the growth of their booming supply chain sector was in danger of stalling due to increasing talent shortages. This follows a study published by McKinsey that showed the demand for professionals in this area is far outstripping supply – at present McKinsey claim the logistics industry is facing a demand for 75,000 new employees a year in an industry that annually graduates just 5,000.

According to the Supply Chain Council companies are currently experiencing a shortage of, amongst others, logistics engineers, quality process engineers and commodity managers, all of which makes the ongoing management of ever-increasing global supply chains problematical in the extreme.

A lack of leadership, a skill which is still not readily encouraged or taught in the country, is also causing executives a headache – a point graphically illustrated by another recent survey involving nearly 60,000 business leaders in the country which claimed initiative and communication were the two most sought after, yet most hard to come by, elements of leadership.

So what can China do to address the current crisis? Well, in many ways the country has become a victim of its own success. The country’s economy has grown at such a rate it’s little surprise talent demand is outstripping talent supply. With growth set to continue there appears to be a limit to what companies can do to overcome the problem.

Bringing in foreign talent may bring expertise in certain areas, but the Chinese market is complex and takes time (something companies can ill-afford) to understand - recruit more local personnel and it will take further investment to train them up to the required standard.

All-in-all it’s a difficult situation, and how long it takes to find a solution is likely to dictate whether the future growth of the supply chain sector will rise or fall.

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