Recruitment and retention of ICT skills among MNCs in Taiwan

Purpose –The existing research on multinational companies (MNCs) tends to emphasise the diffusion of knowledge and skills in information, communication and technology (ICT) from the more advanced industrialised nations to less-developed or latecomer countries. Few studies have examined the ICT work force supply and development of local ICT skills among MNCs’ overseas subsidiaries. This paper aims to fill the gap by evaluating the issues relating to the host country’s ICT work force planning and supply and the recruitment and retention of ICT skills among MNCs at their local subsidiary. Design/methodology/approach –A survey of 100 MNCs in Taiwan, Republic of China was used for analysis. The self-administered questionnaire was designed to examine the extent of difficulty experienced by multinational companies in recruiting high, medium and low levels of ICT skills in the manufacturing and service sector. Attrition rate of the ICT skilled workers in Taiwan was also examined. Findings –The results suggest some degree of ICT skill deficiency at the firm level, despite many efforts attempted by the Taiwanese government to develop and supply ICT skills at the national level. A gap between national advancement in technology and firm level of skills deficiency exists. These findings lead to consideration of a better alignment in providing local government support programs to meet MNCs specific skill requirements. Practical implications – The results provide some insights especially for the emerging economy such as China, which also tends to heavily impose government intervention in developing strategic industries. By strong intervention, the host country government must work closely with firms to identify skills needs. For those MNCs who are allured by attractive, incentive and supportive governmental programs in the emerging economies must be aware, when making investment decision, that some of these support programs may not necessarily address firms’ specific skill needs.