Temuulen Lkhagvasuren, CEO, MONGOLIA TALENT NETWORK (MTN)
Could you introduce Mongolia Talent Network to our audience?
Mongolia Talent Network was founded in 2011 with the goal of finding the best talent for foreign companies entering Mongolia. As the company grew, it added PEO (professional employer organization) and orientation services on top of its traditional recruitment services, and recently we launched our HR tech platform. Our customer base is dominated by mining companies and mining suppliers, followed by banking, tech, as well as renewables. Could you elaborate on the HR tech platform?
Mongolia Talent Network provides executive search, but we wanted to expand this service to a wider talent pool in the most efficient manner. While the upper-level and C-level executive search goes through our recruitment service, mid-level and entry-level roles are now systematized through the AI-enabled platform, allowing companies to find and reach the candidates faster. With the help of AI, our new HR platform Worki, we were able to match employers with the employees at based on qualifications and requirements. Could you comment on the main dynamics in the labor market? How attractive is mining as a career?
There are two markets in Mongolia: mining and the rest. The mining sector pays an average of 20% higher salaries compared to any other industry, which makes it highly sought-after. Meanwhile, the rest of the marketplace is facing a scarcity of available talent. Although the pay in mining is much higher compared to the average in other sectors within Mongolia, it is still about five times below that of Australia. The skill level, however, is competitive with that of Australia and other leading mining jurisdictions. The arrival of mining houses like Rio Tinto or Centerra Gold helped create a highly well-trained workforce. In the longer run, finding blue-collar workers or C-level executives will not be an issue, but the real gap is in the mid-tier management. This is where the brain drain has manifested the most, as many experienced professionals choose to go to higher-paid countries.
Turbadrakh Batmunkh, CEO, PRISTINE BRIDGE RECRUITMENT CONSULTANCY (PBRC)
Given Mongolia’s young and small population, what are the main dynamics in the labor market?
Many people speak about the brain drain in Mongolia, but I see that talented, young people desire to stay in the country. More and more businesses are changing their culture to attract and retain talent; they realize that too many young people are leav- ing and they cannot afford, nor wish, to bring in more expats to run their operations. All around the world, a subtle but potent revolution has been happening at the employer-employee relationship level, whereby employees realize their value, acknowledge they have options and need not stay at their job if it no longer suits them. What was your experience of getting a start-up company up and running in Mongolia?
Mongolian SMEs have a lot of on their plate with navigating regulations. Our economy is mostly dominated by mining (28% of GDP) and infrastructure (58%), leaving very little room (and market share) for emerging SMEs. The other main obstacle is the scarcity of talent available; in an economy where innovative ideas abound, translating those ideas into reality requires the right expertise, and this was difficult even for us, as a recruiter, as we got started. Financing is also a major hurdle. With foreign investors hesitant in the country, the available capital is re- stricted to national investors. Finally, could you comment on the current labor law?
The main issue lies not in the legal background, but political changes. Every four years, Mongolia experiences destabilizing changes. The upcoming elections again surface a wave of fresh ideas; for example, we heard about proposals that companies reaching 50 million MNT will be liable to increased taxation. I can only hope that new changes are indeed feasible and aligned with the 2050 Vision, working to make improvements in the country and attract more FDI. Sometimes, these changes are too abrupt; other times, much-needed change never seems to happen.