Tieni Masueger, president of China-based CHEERS Stores, and Claudia Masueger, founder & CEO of CHEERS, celebrate their achievement in wine sales in China after opening the business in April 2011. ZHAO ZHENGFA /FOR CHINA DAILY

In terms of attracting the right talent, multinational companies no longer enjoy the advantage of being corporate giants while smaller domestic companies, especially the privately-owned ones, have shown more competitiveness, according to Wang Zhe, head of China recruitment business at the world's largest human resources company Adecco.

For multinational companies, which have developed a complete management system and, in many cases, have more than a century of operational experience in their home countries, it was easy to attract local Chinese talent.

But when the managers in these multinational companies see their personal value enhanced within the organization, they are no longer satisfied with the traditional ways adopted by their employers and may look for alternative employment.

Wang Zhe said: "Since the China branch has to report to the global headquarters, local managers cannot easily make innovations which may well overturn current business models. Under the direct leadership of global headquarters, the managers cannot realize many new ideas. So, a large number of them may feel that their talents are not being recognized or nurtured and they may leave the company."

On the other hand, China is the headquarters for many domestic companies. Therefore, the core talents of domestic companies, especially privately-owned companies, will help their employers to map out the company's business model and development path, according to Wang.

"Many managers at multinational companies have been attracted to jobs at privately-owned ones," he said.

New technology has given birth to a large number of high-tech privately-owned companies in China, with business ranging from artificial intelligence and driverless cars to virtual reality and mobile internet. Candidates with knowledge in these fields are highly sought after by the private sector.

But it does not mean that multinational companies have no merits at all, stressed Wang. The brand image of these companies, together with a clear company culture, company value and reputation, are still attractive to candidates.

"Domestic companies can learn from multinational companies and their competitiveness will be enhanced accordingly," he said.