45% China Sourcing Corruption. Hmm, About That Much

45% China Sourcing Corruption. Hmm, About That Much

Dan Harris of China Law Blog has a blog on China sourcing corruption that I cannot pass up posting on. Note this quote:

About 45 percent of all sourcing agents are corrupt. About 45 percent of all sourcing agents are incompetent/worthless. About 10 percent of all sourcing agents are invaluable.

That sounds about right. We know by our data that 72% of them are lying to get the job. Can you imagine that a purchasing agent who lies to get the job will be an easy mark for corruption? Others were good talkers but incompetent.  Of the 28% who are honest, we think you would be pretty happy with the hire of about  7-14%. See this Recruitment Agency China info graphic on corruption plus. 

So he says that 10% are great, and we say that 7-14% you would be quite happy with.  7% would be rock stars and 7% would be above average work horses. We specialize in filtering to know which is which. Dan Harris sees how these hires go very wrong for incompetence or corruption, so his estimate gets a nod from our data.china sourcing corruption 2

Root Out China Sourcing Corruption

Furthermore, I think you can imagine how both could wind you up in court I think.  Those 10% are so worth digging up, and our record of digging them up and knowing them is why companies write us.  Many purchasing managers pocket money every month, and the Westerners never figure it out.  I know of one case where a company figured out they had China sourcing corruption when they their market deteriorated, and they started to look more closely at expenses.  That showed that they had had sub standard suppliers overcharging them for 10 years and giving kickbacks to the purchasing manager. See 11 Things You Need for Excellent Executive Search China

In the meantime, there were talented honest purchasing managers at home because their true stories were not as good as the lies the dishonest candidates could tell.

Therefore, something needs to change. The right guy should get and keep the job while the corrupt manager should be out of a job.  See 6 Ways of Doing Business in China.

 

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Posted in: China Recruitment - Getting Good People

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