Companies in South China are struggling to attract qualified candidates, according to a recent survey.

US human resources (HR) consulting firm Hewitt surveyed 80 members of the American Chamber of Commerce in South China, which commissioned the research, last month.

The respondents vary in size and are mostly based in Guangdong Province with half of them being foreign-invested.

Insufficient leadership skills among managers, lack of respect and communication between first-line managers and employees, high or increasing employee turnover, and low motivation among current staff are the other key internal HR issues identified.

Externally, major issues include lack of professional, managerial and senior executive talent, competitors approaching experienced managers, increasing compensation costs in the market, and lack of qualified executive leadership development providers and training vendors.

An HR executive for a foreign bank in Guangzhou, capital of Guangdong, who asked not to be identified, said it is increasingly difficult to attract and retain qualified employees.

With the Chinese banking sector set to fully open to foreign investors this year as part of the nation's commitment to the World Trade Organization, more and more foreign banks are starting or expanding their operations in Guangzhou, heightening competition, she said.

Chinese banks have joined the race, attracting some employees from foreign banks with handsome wages and higher positions, she said.

(China Daily October 17, 2006)