No Short-Term Solution to China’s Talent Gap – Global Staffing Strategy
Substantial challenges exist identifying and recruiting the right high-tech telecommunications staffing talent in the Chinese market. In fact the need for high tech telecommunication leadership talent, for example, has produced a staffing gap in China that no longer remains balanced. Many view China’s immense market as the long-unchanging high tech industry’s biggest promise for growth. “Therefore it is critical that companies have a full understanding of their particular stage of globalization and seek to recruit the right leadership talent for that stage” (Luo, 2007, p. 1). Different needs develop at different stages of globalization. A comprehensive strategy for the acquisition of a company in China will prepare the expected audit of HR systems. “I define ‘strategic staffing’ as the process of identifying and addressing the staffing implications of business plans and strategies, or better still, as the process of identifying and addressing the staffing implications of change, ” (Bechet, 2000, p. 1). Challenges to the strategy might arise because of this acquisition–that include unequaled cultural and regulatory factors. This prepared staffing strategy should help make the Chinese acquisition a flourishing investment undertaking for each entity.
It is imperative to associate the company objectives with the globalization concept when considering a staffing strategy. Objectives will prove easier since China has entered the World Trade Organization in 2002. Plus, its continued liberalization of rules governing foreign investment can ease the transition. A difficult challenge remains comprehending exactly where Chinese operation stands according to corporate evolution; then, staff must be recruited to match. Awareness of this fact will prevent detrimental stumbles. A lot of companies in China’s market today find themselves at this beginning development stage. “Indeed, with surprising frequency, foreign companies operating in China have tended to make identical hiring mistakes at each stage of evolution of their operations there” (Luo, 2007, p.1). The company must deliberate if a candidate succeeded at a company at a like developmental stage. The company realizes a general manager candidate must do what it takes to close a deal. Human Resources must also realize that present relationships a general manager candidate might bring to the job might not be of much value. Much of this results from important clients altering their inner decision-making dynamics. At a testament to this realization, three major Chinese telecommunications companies replaced CEO’s in 2004 (Luo, 2007). This fact, alone, could cause middle management modifications. Another consideration includes, “general manager candidates who are accustomed to working in a multinational environment with far more advanced supporting infrastructure and whose core competency is to mange resources may find it a stretch to produce results-oriented, hands-on salesmanship” (Luo, 2007, p. 1).
While recruiting and staff of employees proves challenging in any market, it proves especially so in China since there is a deficit of management and executive talent (much of the labor shortage due to the lack of pragmatic training). “Under the pressure to move quickly in China, companies must resist the temptation to hire leaders who appear to be candidates generally but who lack the specific skills required for success at the company’s particular stage of globalization” (Luo, 2007, p.1). The management of human resources and incorporating the present talent from the two companies in the acquisition might prove challenging. Without a doubt, ineffectual management consolidation may significantly influence the company’s vision. Human Resources must reduce the distance between gaps in the two companies, both culturally and geographically. The merger will realize the challenge of differences in business cultures and practices. Realizing all these factors, HR strategy employs a sponsored-mobility approach. When considering staffing, career, and succession systems in respect to “sponsored versus contest mobility norms” Rosenbaum found a “sponsored-mobility approach stresses the early identification of talent. Firms following this norm attempt to benefit from the efficiencies of specialized training and socialization by providing high-potential candidates with challenging assignments and other opportunities believed to be conducive to employee development” (Dreher & Dougherty, 2001, p. 25). China creates a great challenge since the cultural differences (language, particularly) obviously remain immense. Additionally, interaction with leaders in China proves limited.
Not uncommon in other countries (like Czechoslovakia; for example), the Chinese people see those they work with as part of the family—extended. The “personal” element comes much more into play: the manager finds himself (or herself) looked up to like one would an older brother or sister; sometimes giving guidance on personal matters (even performing personal “undertakings.” In contrast, this type of behavior in America may be construed as “playing favorites” or unjust exaction. The complexity of this personal employee relationship in conjunction with the context of the workplace must remain at the forefront of Human Resources staffing considerations. In reality, this sort of workplace extended-family culture often precipitates business agreements. Additionally, though, this type of employee/employer relationship construction may produce organizational structure changes.
In the vein contrasting cultures, regulatory factor differences must be regarded. As mentioned previously, China’s World Trade Organization status has allowed ameliorated foreign approach—particularly to the service sector (most regulated) in China. This fact, in itself, has granted additional participation in financial, telecommunications, professional services, insurance, etc. A lot of mix-up abounds concerning China’s obscure 2001 Labor Law; which creates many ways of reading it from each side. A challenge lies in establishing clear guidelines for each side (since labor regulations appear lacking). Complications arise in staffing a multinational enterprise due to political, economical, legal, business, as well as cultural implications. The effectiveness and acceptability of Human Resources management rides on these factors. The company attests exhaustive cognition of Equal Employment Opportunity policies and their application in the acquired workplace. In this time of war, HR remains cognizant of final regulations clarifying the responsibilities of employers of military veterans according to the Uniform Services Employment and Re-Employment Rights Act of 1994. The law requires employers to reinstate returning service members within two weeks after they apply for reemployment. Returning veterans must be afforded the status, seniority, and pay they would have attained had they remained continuously employed.
Additionally, usually, staffing policies for the host country won’t come written with the vantage point of the parent’s. Arun Kottolli in “International Staffing Strategy” makes a fine point when he realizes, “Often this tends to be parochial and ethnocentric resulting in tensions between parent and subsidiary management. Often the subsidiary management will not directly point at the problem in the company’s HR policies, especially if the policy was written by the ‘headquarters.’ As a result real reasons are not noticed until it is very late” (p. 1). Ohme in his book, “Borderless world,” argues that companies should do away with the “headquarters” mindset and appropriate subsidiaries more freedom. “This freedom is more important in framing HR policies. The main point companies must learn that the HR policies followed at home may not be applicable in the host country” (Kottolli, 2007, p. 1). Human Resources will need to study the regional market circumstance and ply to it. It would behoove the company to take in major executives of the acquisitioned business to join the parent’s top management. Current Human Resources polices must change since their policies don’t apply to the company acquired.
Establishing loyalty and bonding between both companies starts with an internal recruiting procedure. Even entry level jobs will have a title, as Chinese culture ascertains the prestige of such. This will aid in appealing to potential recruits. However, the title significance could bring about organizational structural changes. The facilitation of early staffing will prove easier with the availability of an intranet Web site. Potential job candidates may view job postings on the Internet, various international newspapers, university/college newspapers and collegiate bulletin boards. An appraisal questionnaire assesses fundamental skills, while the application provides needed information for Human Resources (enabling a selection process). Then, HR can select candidates after an interview. They will not allow the candidate’s nationality to blind their decision concerning the best candidate for the position. Selectivity in recruiting remains paramount. “Hiring the right people means more than just securing employees who possess the knowledge, skills, and abilities required to perform a particular job; these people must also be able to acquire new knowledge and skills as jobs and environments change. In addition, employees must find that the work is satisfying and that the overall organizational climate and reward structure meets their needs” (Dreher & Dougherty, 2001, pp. 10-11).
From past foreign acquisitions, history shows a large degree of expatriate applications—producing a good mix with internationals. The lack of skilled management in China assures many expatriate applications. The labor shortage in China should produce a great number of young applicants (especially at the collegiate level). To direct the foreign subsidiary, Human Resources will appoint a home country national to build the parent company’s corporate culture in the adjunct. “While this reduces the communication between headquarters and the subsidiary and increased control by the headquarters, this policy has serious disadvantages. The cultural differences and environmental differences will be huge and expatriates may not be able to cope with. Thus resulting in costly management mistakes” (Kottolli, 2007, p. 1).
Human Resources considers the staffing strategy in as a longer-term context. And within this context, increased effectual shorter-term staffing determinations prove ascertained. This near-term aim might gain the attention of managers finding themselves assessed by and rewarded for attaining shorter-term targets. “Because it helps define appropriate short-term actions, it is more likely that the same line manager making the
staffing decision will still be in place to rap the benefits of that decision later on” (Bechet, 2000, p.1). The staffing focus will not remain on implementation concerns. Human Resources will deal with staffing from a planning perspective that’s proactive. Those staffing realize, “staffing constraints (e.g., an inability to recruit a sufficient number of individuals with critical skills) may impact the company’s ability to implement its plans. These constraints should be identified and addressed as part of the planning process, not left as surprises to be uncovered when implementation begins” (Bechet, 2000, p.1). No long-term staffing strategy proves necessary Human Resources may fill a job position internally (comparatively quick). This, too, saves time and resources. Top managers the company acquires from the acquisition could prove the most valuable asset: they know the market.
Human Resources often spends too much time on data and tables—devising reports and other staffing-related information (often the volume of planning data). For the merger of the acquisition staffing, the focus remains on acting and planning—not just reports. For example, if “you reallocate staff because of something you discern from a data table, then that data has become information. When it comes to staffing, make sure you provide managers with information, not data. If your reports provide managers with data that is simply ‘nice to know’ or ‘interesting’ but doesn’t directly influence decision making, don’t provide them” (Bechet, 2000, p.1). As result, organizational effectiveness increases remarkably. However, Human Resources realizes the extreme importance of auditing HRM practices and departments. “Finally, we bring to your attention a concept refined in the writing of Devanna, Fombrun, and Tichy: the evaluation of the HR function by way of the human resources management audit (HRMA).22 Any audit is typically considered to be a first step in an improvement or change effort” (Dreher & Dougherty, 2001, pp. 30-31).
Additionally, effective training and development proves paramount to increasing organizational effectiveness. English remains at the top of the list of those training and developmental programs. Writing for business, job-specific training, and skills in presentation top the list. Available training exists for retained management in both companies—classes ranging from managing resources, leadership, coaching, and stress and time management. A focus lies in cross-utilization and cross-training. Another perspective of training and development demonstrates orientation “driven by the need to be flexible and able to utilize employees even during times of production slowdowns. When people are able to perform multiple jobs, or are multiskilled, they represent a reserve of talent and are more likely to appreciate how their work and output levels affect the work of other employees in jobs related to their own…times when multiskilling is important and times when it is not” (Dreher & Dougherty, 2001, pp. 14-15). Human Resources will offer an overall understanding of Chinese business patterns and culture to all employees at both companies facilitated through simulations, as well as face-to-face. Human Resources realizes they, “must temporarily forget the old colonial model that often underpinned the multinational stage in which the parent company simply tries to reproduce itself on foreign soil, often transplanting managers from the home country in order to ensure that copy is accurate” (Luo, 2007, p.1). Human Resources will recognize its own strengths and weaknesses. And it will look for candidates for training and on-the-job experience to satisfy its own skill gaps. Despite cultural difference, HR has a working comprehension of the significance of gender in the work environment and overall development. They ensure the consideration of cultural averages in delineating actions and outcomes developed by the team.
First, HR defines the staffing levels and sum of employees needed (and their capacities) for strategy implementation. Staffing resources presently available require assessment. The strategy (through plans and action) will close talent gaps. “Successful implementation of a strategic staffing process lies no in how these basic steps are defined. The ‘devil is in the details’—or perhaps more appropriately in this case—the devil is in the implementation. It is not the steps themselves that are important, it is how they are developed and implemented that counts” (Bechet, 2000, p. 14). Part of the equation does not include predicting future staffing. Simply, a context for decision making proves paramount. Again (as previously mentioned) emphasis lies in proactiveness—a planning perspective. HR wants the implementation of its strategy to result in the new Chinese acquisition taking on the status of a prospector firm. “Prospectors attempt to be the first to market with new products and services. These firms rely on innovation, flexibility, and speed. They exploit new market and product opportunities” (Dreher & Dougherty, 2001, pp. 9-10). HR also realizes the paramount nature of strategic perspective: that staffing needs prove optimally met in manners that call for some beforehand preparation. An approach under consideration includes contacting graduate students to develop a relationship with them before their job market availability. These contacts might include internships, as well as a series of presentments. The development of these contacts should increase the likelihood of the graduate student working for the company at school’s completion. Staffing strategy will remain constant—an ongoing process (not just a yearly thing: implemented and updated regularly). Additionally, it may prove wise to integrate scenario planning into strategic planning. Each scenario could have dissimilar staffing entailments. HR will ascertain which scenario might occur and determine staffing plans accordingly. To cover this approach best HR assesses staffing requirements for every likely scenario. Then, look for things the scenarios have in common.
In summary, “China’s talent gap will not be solved in the short term. In fact, it is likely to get worse before it gets better. Therefore it is critical that companies have a full understanding of their particular stage of globalization and seek to recruit the right leadership talent for that stage” (Luo, 2007, p. l). Human Resources realizes the different needs of a company at different stages of globalization. In order for an effective implementation strategy the newly expanded company (whose revised strategy has resulted in an acquisition in China’s market) masters the significance of the connection between business objectives and the concept of going global. Tremendous stakes remain possible. The liberalization of rules governing foreign investment has enabled better business transactions with the country. A comprehensive strategy for the acquisition of a company in China will prepare the expected audit of HR systems. Challenges to staffing strategy may transpire because of this acquisition. These include unequaled cultural and regulatory factors. This prepared staffing strategy should help make the Chinese acquisition a thriving investment project for each company. Though staffing and recruiting of employees proves challenging in any market, it proves especially so in China since there is a deficit of management and executive talent—a lot of the labor shortage because of the deficiency of practical training. Human Resources must lessen the distance between gaps in the two companies on both the cultural and geographic levels. The merger will actualize the challenge of conflicts in business cultures and practices. Knowing all these factors, HR strategy uses a sponsored-mobility approach. The complexness of the Chinese personal employee relationship in conjunction with the context of the workplace must remain at the forefront of Human Resources staffing considerations. A lot of confusion exists about China’s vague 2001 Labor Law. Many interpretations abound from each side. Another challenge lies in laying down clear guidelines for each side as result of lax labor regulations. Human Resources looks at the staffing strategy in as a longer-term context. So, within this context increased sound shorter-term staffing decisions prove ascertained. Difficulties develop in staffing a multinational enterprise as consequence of political, economical, legal, business, and cultural entailments. The effectiveness and acceptability of Human Resources management depends upon on these factors.
Written by DG Farnsworth