Western companies doing business in Asia are increasingly hiring local residents for executive positions (instead of expats as so far). According to the website of The Wall Street Journal, the reason for this change is the current situation when Western companies have to access Asian businesses and consumers as equals and clients, not only as a manufacturing partners. That is why they hire executives who are able to negotiate with local businesses and governments without interpreters. The knowledge of local culture and customs that foreigners learn very long, is also important.
Two leading executive search providers for multinational companies in Asia - Spencer Stuart and Korn/Ferry International - confirmed that they divide candidates for these positions into four groups: 1) native-born Asians who know the local culture but have studied in the U.S. or Europe, 2) foreigners living or working in Asia for a long time, 3) descendants of Asians brought up in a Western country and 4) local Asian managers with no experience from the West. Both companies confirmed the greatest demand for the category number 1executives.
Spencer Stuart statistics show that three out of four executives hired by multinational companies in Asia between 2005 and 2010, were native Asians living directly in the region. Only 6% of the total 1,500 executive posts were not filled by Asians. Spencer Stuart's CEO Phil Johnston added that it is very difficult to find and retain these managers. As for salaries, they may require 750,000 to 1 million U.S. dollars annually, which is sometimes even more than in the case of expats.
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