Recruiting local talent overseas: unlocking the core password for globalization

When a Chinese technology company entered the German market, it initially relied on a technical team stationed in its headquarters to develop products, however, because they are not familiar with the strict requirements of local users for "data privacy protection" (for example, Germany's Federal Data Protection Law stipulates that enterprises need to clearly inform users of the use of data), the product is warned by the regulatory authorities after it goes online, and the trust of users drops sharply. When a Japanese retail brand is distributed in Southeast Asia, because the local operators recruited did not master the core logic of "social media marketing" (for example, Thai users are more inclined to obtain shopping information through Facebook and Instagram), online channel sales accounted for only 15% of the total, far lower than the industry average of 35%; When an American manufacturing company opened up the Middle East market, the sales team did not understand the local "relational business culture" (for example, trust needs to be established before negotiation, the first meeting usually does not talk about the details of cooperation), missed a number of large-scale project orders-these cases reveal a key problem: in overseas markets, only relying on the operation strategy of "copying the domestic model" or "relying on the headquarters team" has been difficult to adapt to the localization needs, recruitment and training of local talents who are familiar with the local market, culture and rules, it is the core path to promote business landing and enhance competitiveness . They are not only the "bridge" connecting enterprises and the local market, but also the "key engine" to optimize products, adjust strategies and avoid risks ".

Why must we focus on recruiting local talent overseas? Three core values drive business growth

1. Accurately match local demand and improve product-market adaptation

The user needs, consumption habits and usage scenarios in overseas markets are significantly different from those in China, so that locals can quickly locate user pain points and promote product optimization by virtue of their "localized experience. For example, Latin American users are much more dependent on "mobile payment" than domestic users (for example, 70% of online transactions in Brazil are completed through Boleto or local e-wallets). If the product development team does not consider this payment habit (for example, only credit card payment is supported), it may lead to loss of users. Southeast Asian users are highly sensitive to "social attributes" (for example, Indonesian users are more likely to share shopping links through WhatsApp groups), if the operations team does not design "social fission" features (such as inviting friends to get coupons), growth opportunities may be missed. When a Chinese cross-border e-commerce enterprise entered the Brazilian market, it found that local users had low demand for "long video content" (due to network speed limitation) by recruiting local product managers. It adjusted the recommendation logic of APP home page (increased the proportion of short videos) and increased the average daily usage time of users by 40%.

2. efficiently integrate local resources and reduce operating costs

the distribution of resources, channel rules and supply chain systems in overseas markets are complex and diverse, local people can quickly get through key links and improve operational efficiency by virtue of their contacts and experience. For example, the Japanese market relies on the mode of "offline channel + brand authorization" (for example, household appliances are sold through chain stores such as "Yamada Electric" and "Bic Camera"). If enterprises do not recruit operators who understand the local channel rules, they may not be able to enter mainstream stores, resulting in insufficient exposure. The German market attaches importance to "industry certification and standards" (for example, industrial equipment can only be sold through TÜV certification), if the product team does not work with the local certification body, it may be delayed due to compliance issues. When a Chinese new energy enterprise entered the German market, it signed long-term cooperation agreements with 10 head parts suppliers by recruiting local supply chain directors, reducing procurement costs by 25% and delivery cycle by 30%.

3. Avoid cultural and compliance risks and ensure stable business development

Cultural taboos, business etiquette and legal compliance requirements vary greatly from country to country, local people can help companies avoid risks with their expertise. For example, commercial negotiations in the Middle East attach importance to "relationship building" (for example, it takes 1-2 hours to exchange pleasantries for the first meeting). If the sales team is eager to promote cooperation (for example, direct price negotiation), it may be rejected because it "does not respect culture". Brazil's Consumer Protection Law stipulates that "return goods within 7 days without reason". If the operation team fails to specify the terms in the contract, it, it may cause, profit loss may be lost due to return goods; the EU's General Data Protection Regulation (GDPR) requires companies to clarify the scope of user data use, and if the product team does not design a "data consent pop-up window", it may face huge fines. When an American software company entered the Brazilian market, it recruited a local compliance officer to adjust the user agreement in advance (adding a "return policy" clause) to avoid being punished for compliance issues.

Three core challenges in recruiting local talent overseas

1. Low talent match: there is "dislocation" between demand and supply

Enterprises often face the dilemma of "ideal talents are hard to find":

skill dislocation : companies need a mix of skills (e. g., product development, data analytics) and local languages (e. g., Spanish, Arabic), but most candidates in the market specialize in a single field;
experience dislocation : enterprises hope to recruit talents with "from 0 to 1" market development experience (such as leading a brand to build local channels), but most candidates only have "maintaining existing customers" experience;
cultural dislocation : enterprises need candidates who adapt to the "fast-paced, high-goal" culture, however, local talents may be more accustomed to a "stable and relaxed" work rhythm (for example, employees in some European countries value "work-life balance"). When a Chinese new energy enterprise entered the Mexican market, it failed to find a product manager who knew both "photovoltaic product technology" and "Mexican energy policy", resulting in a 3-month delay in product localization.

2. Cross-cultural management is difficult: team collaboration and goal achievement are affected

Management conflicts often arise between overseas local talents and corporate headquarters due to cultural differences:

communication style difference : European and American employees tend to "directly express their needs" (such as "I need more market support"), while Asian employees tend to "euphemistic communication" (such as "if some resources can be added, the effect may be better"). if managers do not adjust the communication mode, it may lead to distortion of information transmission;
decision logic difference : the headquarters team may rely more on "data-driven decision-making" (such as adjusting product functions according to user behavior data), while the local team may rely more on "experience-driven decision-making" (such as optimizing services according to past customer feedback). if the two sides do not establish consensus, the business may be affected by decision-making differences;
incentive mechanism difference : the headquarters team may pay more attention to "long-term career development" (such as promotion opportunities and skills training), while the local team may pay more attention to "short-term material returns" (such as bonus and commission). if the incentive scheme is not localized, the team may lack motivation. When a European automobile enterprise set up a branch in China, the turnover rate of employees increased by 15% due to the use of Germany's "strict KPI assessment" (e.g. 100 per month target must be completed) and the style conflict of "flexible adjustment target" with the local team.

3. scattered recruitment channels: low information access efficiency

the job search channels for overseas local talents are significantly different from those in China. if enterprises only rely on a single channel, missing candidates:

emerging markets (e. g. Southeast Asia, Latin America): talents are more likely to seek opportunities through local social media (such as "Vietnam Technical Talent Group" in Facebook and "Brazil Product Manager Circle" in LinkedIn), industry forums (such as "Indonesia E-commerce Operation Exchange Group") or local recruitment platforms (such as "JobsDB Vietnam" and "Indeed Mexico");
mature markets (such as Europe, America and Japan): talents are active in professional associations (such as "American product management association" and "Japan marketing association"), industry exhibitions (such as "Hannover industry exhibition in Germany" and "CES consumer electronics exhibition in the United States") or high-end recruitment websites (such as "Hired" and "Glassdoor");
special fields (e. g. medical, industrial): talents may obtain information through industry conferences (e. g. "global medical products summit"), professional communities (e. g. "European industrial equipment products alliance") or internal recommendations (e. g. former colleagues, customer recommendations), and recruitment needs to be more accurate.

Cracking the challenge: four strategies for recruiting local talent overseas

1. Precise positioning requirements: from "universal" to "scenario" recruitment

According to the characteristics of the target market, define the core competence model of local talents:

emerging markets (such as Southeast Asia and Africa): priority is given to recruiting talents with "fast learning ability" (able to quickly master enterprise products and business logic), "local resource integration ability" (e. g. familiar with local suppliers and distributors) and "adapt to high-intensity work".
Mature markets (such as Europe, America and Japan): it is necessary to recruit middle and high-end talents with "deep industry experience" (if they have worked in leading enterprises in the field), "cross-cultural communication ability" (able to cooperate efficiently with headquarters team) and "innovative product thinking" (able to explore new functions and models).
special rules market (such as middle east, India): focus on the sensitivity of religious culture (e. g. Middle East employees need to respect Islamic customs) and business etiquette (e. g. "avoid direct rejection" in Indian negotiations) to avoid cultural conflicts affecting cooperation.

2. Expand localized recruitment channels: combine online and offline, reach accurately

online channels : use mainstream social platforms in target markets (such as Facebook in Southeast Asia and LinkedIn in Europe and America) to release recruitment information, join local industry groups (such as "Brazil Product Manager Exchange Group" and "German Technology Developers Alliance") to actively reach candidates; Set up corporate homepages on local recruitment platforms (such as "JobsDB Southeast Asia" and "Indeed USA") to show team style (such as product development cases, photos of employee activities) and benefits (such as "high commission" and "local medical insurance");
offline channels : participate in target market industry exhibitions (such as "Vietnam science and technology exhibition" and "Hannover industry exhibition in Germany") to directly contact candidates; Establish school-enterprise cooperation with local universities (such as Hanoi university of science and technology in Vietnam and Munich university of technology in Germany) to target outstanding graduates in advance through campus lectures and product development competitions; work with local headhunters (e. g. "Michael Page" in Southeast Asia, "Heidrick & Struggles" in Europe and the United States) to quickly match demand with their local talent pool. For example, a Chinese electronics company set up a "Product Innovation Scholarship" in cooperation with IIT (Indian Institute of Technology) in India to attract computer students to join. After graduation, they directly joined the company, with a retention rate of 80%.

3. Design integration scheme: from "cultural adaptation" to "value co-creation"

induction training : through "culture introduction courses" (such as introducing enterprise values and global product strategy) and "localization case sharing" (such as showing the successful experience of local teams in other markets), help new employees to integrate quickly;
cross-cultural communication mechanism : establish regular team meetings (such as weekly video meetings and monthly offline communication), encourage headquarters to share progress and problems with local teams; Set up the role of "cultural ambassador" (held by employees who are familiar with both cultures) to help resolve communication conflicts;
common goal setting : bind local team goals with the enterprise's global strategy (such as "help Brazilian team achieve 30% annual product user growth, at the same time for the global product iteration to provide user feedback"), so that local employees feel "needed" and "value". For example, when an international fast-moving company launched a new product in the Thai market, it invited the local product team to participate in positioning (e. g., adjusting the formula according to Thai consumers' preference for "natural ingredients"), and the sales volume exceeded expectations by 25% after the launch, and the local team's sense of achievement was significantly improved.

4. establish a retention mechanism: from "short-term incentive" to "long-term development support"

differentiated salary structure : in addition to the basic salary, provide high commission (e. g. 3%-8% of product sales), long-term service award (e. g. additional equity for 3 years) and localized benefits (e. g. "annual physical examination", "children's education subsidy" that Southeast Asian employees value, "401(k) retirement plan" and "stock option" that European and American employees pay attention to);
career development support : design promotion channels for local talents (such as promotion from regional product manager to global product leader), and provide cross-border exchange opportunities (such as learning advanced product development experience or management experience in China headquarters). For example, after a Chinese household electrical appliance enterprise set up a branch in Poland, it selected 2 excellent local product managers to train in China for 3 months every year. After returning home, they were all promoted to management, and the employee satisfaction increased by 45%.
cultural identity plan : enhance the sense of belonging through team activities. For example, regularly hold "local cultural experience days" (such as Southeast Asian teams learning Chinese tea art and European and American teams experiencing Indian yoga), or organize "Chinese and foreign product management case sharing sessions" (such as Chinese employees sharing "experience in product function optimization before Spring Festival" and local employees sharing "product adjustment strategies during Ramadan").

Case revelation: overseas local talent recruitment practice of a Chinese manufacturing enterprise

A Chinese construction machinery enterprise plans to build a new product development branch in Brazil, at the beginning, it relied on a team of Chinese engineers dispatched by the headquarters to design the product. However, due to the unfamiliarity with Brazilian users' demand for "ease of operation" (for example, local workers prefer the "one-click start" function), the user feedback "complicated operation" after the product went on the market, and the re-purchase rate was less than 40%. Post-adjustment strategy:

recruit local product development team : recruit product managers and engineers in Sao Paulo who are familiar with the local construction machinery market (once worked in Brazilian head enterprises), proficient in Portuguese and understand user operating habits;
adjust product strategy : according to the characteristics of Brazilian users (such as attaching importance to "simple operation"), the local team changed the product control panel from "multi-button design" to "single button + voice prompt" and added the function of "operation teaching video", thus increasing the user satisfaction to 85%.
optimize team management : the local product director introduced the "agile development model" (Scrum) commonly used by Brazilian companies, shortened the product development cycle from 6 months to 3 months, and tracked the progress through the "weekly meeting + monthly review", increasing team execution by 60%.

after adjustment, the branch's product sales increased by 150 in the following year, and the user re-purchase rate increased to 75%, becoming one of the fastest growing overseas product teams of the enterprise.

Recruiting locals overseas is a "key step" for multinationals to break through the bottleneck of globalization, but "recruitment for recruitment" needs to be avoided ". Enterprises need to combine business objectives, market characteristics and cultural differences to formulate systematic recruitment, integration and retention strategies in order to truly transform local talents into "market competitiveness". In the future, with the further segmentation of the global market, those enterprises that can deeply empower local talents and realize "global standards + localized implementation" will surely take the lead in the global competition.

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