Headhunting firms encounter setbacks
(Xinhua)
Updated: 2004-04-11 09:14

The headhunting industry in China has encountered setbacks, as quite a few domestic firms have either dropped out or shifted to pure intermediary business agencies owing to their incompetency and unprofessional services.

By November 2003, China had 28 state-level talent markets, more than 3,550 government-backed intermediary agencies, but only 730 private headhunters.

"We have lagged far behind the developed nations concerning intermediary services for professionals," said Chen Jun, secretary-general of the China Human Resources Association, comparing some 4,000 domestic agencies in China to approximately 20,000 professional headhunting firms in the United States at the beginning of last year.

Most of the official agencies in China are engaged only in seeking staff capable of simple public services, while private headhunters searching high-level senior managers and executives, still lack professional scouts, Chen acknowledged.

Many of the employees at domestic headhunting firms have not undergone any special training, which make them ineffective in contacting and communicating with their clients and target candidates.

Pan Junchen, deputy manager of the Nanjing Municipal Human Resources Development Co Ltd, said it was imperative to further improve the standards of domestic headhunting firms.

"Usually with only two or three employees, plus a telephone anda fax machine, home headhunting firms vie with each other fiercelyby lowering commissions, Pan said. "Some demand only 25 percent, or even 20 percent, of the targets' annual salaries as payment, far lower than the one third proportion adopted in usual international practices."

Mature foreign headhunters have never been casual or careless in offering each client a comprehensive program report, which includes their understanding on the program, seeking plans, proposals on target candidates and charges. But this service, a vital and essential step Pan deemed to tempt the clients, is oftenneglected and even omitted by domestic companies.

"They give promises with no specific planning or without signing contracts with their clients," he added.

He also considered domestic headhunters incompetent in talent training and follow-up services.

Meanwhile, Chen Jun reminded domestic headhunters to treasure honesty, integrity and credit.

"They must obey career ethics and should not help clients snatch staff from leading positions in their original companies and closely related to former employers' commercial interests or secrets," Chen said.

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