HR Corner Overseas experience part of long-term plan by Chris Johnson Action taken now to develop and retain high-calibre employees anticipates staffing needs in the years ahead If you are a qualified accountant with a few years' practical work experience, things must be looking good. Potential employers are desperate for your skills, recruitment agencies are falling over themselves to make you offers, and your salary is probably shooting up at a rate unseen in Hong Kong since the mid-1990s. "Like everyone else, we have been looking for the last few months for accountants with four to six years' experience, but you can't find them for love or money," admits Jonathan Leong, a partner with responsibility for staff matters at certified public accountants Grant Thornton. "In general terms, the demand has been caused by strong economic growth and many state-owned enterprises in China turning to Hong Kong for assistance with planned public listings. In our own audit practice, we have seen growth of around 50 per cent in 2004 and need extra people to support that expansion." Accepting that these factors will influence the market for the foreseeable future, the firm has taken a strategic long-term view over staff retention and development. A major initiative has been put in place to second staff to Grant Thornton's US member firm, even though this move will actually cause short-term problems locally. "Our US firm estimates that 75 per cent of the new work they undertake has an international component and over half of that relates to the greater China region," says Mr Leong. "Our rationale is to build a closer relationship by giving the next generation of staff an opportunity to work in the US and develop personal relationships with the people there." Making contacts Starting in September 2005, six secondees will be sent to various US offices on two-year postings. Personal preferences will be taken into account, but the intention is to assign them to different locations so they integrate more completely and make new friends and contacts. Those selected are likely to be in their late 20s and, since Grant Thornton uses the same audit methodology and software around the world, will be expected to start work from the moment they arrive. It may, though, be necessary for them to study local tax laws and regulations to be fully effective. "To a certain extent, the first people we send will be our guinea pigs," smiles Mr Leong, "but we are taking care to make sure the objectives are clear and an attractive remuneration package is put together." Salaries will be based on the scales of the receiving office, but may be topped up if necessary. In addition, a housing allowance, air fares and medical insurance will be provided. While overseas, individuals will be expected to learn about US practices as well as to explain what is done differently in Hong Kong and why. "We want both sides to get the maximum from the programme," says Mr Leong. "The real benefits, though, may only be seen in five or six years when the staff involved have moved on to more senior positions and can act as an excellent link between the US, Hong Kong and China." Two-way trade To develop this particular theme, two further initiatives are being taken. US offices are actively seeking to recruit mainland-born graduates who, after studying in the US and qualifying as CPAs, may be interested in returning to China. Also, Mr Leong has arranged for a "local" secondment programme to send some staff from Hong Kong to the firm's Beijing and Shanghai offices. "There are now 12 Hong Kong employees among our total China headcount of around 200 and we view those positions a bit differently," says Mr Leong. "If individuals are settled, they are encouraged to stay on and are given every chance for promotion within those offices." Terms and conditions are still based on their original contracts of employment in Hong Kong, but with certain key amendments covered in an addendum. For example, allowances are given for housing and tax equalisation and a premium is paid for being based away from home. "We looked at various options for housing," says Mr Leong, "but staff expressed a preference for getting an allowance and making their own decisions rather than have the firm determine where they stay." Another area that required discussion and clarification was MPF contributions. Essentially, if salary payments continue in Hong Kong, then the standard MPF deduction procedures remain in place. So far, there has been no shortage of eligible candidates volunteering either for secondment to the US or for transfers to offices in China. The advantages in terms of broader experience and future career prospects are easy to see. While acknowledging these long-term benefits, Mr Leong is still left with one major headache. "We need as many as 30 additional qualified accountants in Hong Kong for next year's busy season," he says. "I have already initiated discussions with our offices in Australia and the Philippines to see if they can second some experienced staff to us!" Salient points Strong demand for trained accountants with solid work experience Programme of secondments to US offices to start from 2005 Multiple advantages seen in building cooperation and sharing experience Transfers to work in China offices regarded as a positive career move Firm is taking long-term view on staff development needs Taken from Career Times 7 January 2005, p. 32 Your comments are welcome at [email protected]