Duty of Care: Identifying and Managing HR Risks in China
Despite the size of China’s workforce, and the growing ranks of educated, young graduates available for hire, one of the main challenges for human resources managers continues to be identifying and recruiting talented employees. Because of the difficulty in identifying and hiring talent in China, it becomes that much more important not to lose these valuable employees once they are onboard. Human resources managers are increasingly looking beyond the traditional benefits and salary packages as a means of retaining staff.
While “Duty of Care” is often viewed as simply the responsibility an employer has to its employees, this concept is increasingly being seen as an important component in retaining employees. Duty of care has evolved from its traditional form, largely involving guarding against conventional workplace safety hazards and the provision of standard medical benefits to ensuring employees have access to care in the event of illness and providing proactive support to employee’s families in the form of wellness information and training. In the global workplace, however, the types of hazards and risks HR directors face when it comes to protecting their human assets have evolved to include a myriad of new areas.
Global Risks and Responsibility
The definition of the workplace has expanded. Employees are becoming increasingly mobile as business operations become more global, making direct physical oversight of all employees at all times less feasible. Some companies respond by helping employees in the event of a problem, which offers no ongoing support to employees over the course of their travels. However, travel into areas known for threats ranging from terrorism to natural disasters and pandemics warrants more active support and monitoring of employees. As employees are asked to travel to increasingly distant and foreign locations for business, human resources managers are first responsible for being aware of the potential risks of travel to various locations throughout the world. While business must continue even in areas known for higher travel and security risks, companies must be able to contact or account for employees as quickly as possible in the event of an incident in an area in which employees are traveling. The use of services to provide 24-hour travel support may help employees feel more secure and confident, with direct access to emergency assistance anytime, anywhere. This equally applies to Chinese employees traveling outside of Beijing and Shanghai – they may not be familiar with their surroundings and their presence as a “non-local” could make them a target for petty criminals or worse.
For companies with global operations, employees are often required to conduct business in countries with unfamiliar cultures or dangerous environments, with both often going together. While proper systems and monitoring are one part of strong travel support for employees, training is also an important component in preparation for travel or postings in foreign environments. For some locations, training may simply involve putting employees in a better position to fit in and succeed in a foreign business culture. In other environments, training is crucial in protecting and preparing employees to be able to handle dangerous situations. For example, with the increasing amount of Chinese investment in Africa and the Middle East, it is quite feasible that a senior project manager based in Beijing may be asked to travel to high risk areas such as Afghanistan or Nigeria for an extended period to oversee a crucial project. Providing that manager with pre-travel High Threat Environment training and emergency support while they are on the ground will enable them to better focus on the job at hand and also be prepared to handle incidents that may occur. They will be better aware of the threat environment and less likely to put themselves in danger. This kind of support from the company will also provide some peace of mind to the employee’s family back home in China. Training is also important in raising awareness and helping traveling employees to become familiar with the services and support the company offers. Having a top of the line foreign medical/security assistance program or emergency evacuation service is of no use if traveling employees are not familiar with the services or how to access them if necessary.
Duty to Identify Internal Risks
Duty of care also begins to enter the area of legal requirements employers must fulfill when it comes to protecting their employees. On a very basic level, employers have a responsibility to protect their staff from foreseeable risks. A major component in prevention is thorough due diligence of new employees, vendors, suppliers or any internal entity engaging the company’s people, assets or information. Background checks have generally been seen as an exercise to ensure the capabilities and qualifications of a potential employee or vendor. However, in addition to being a means of measuring capabilities, background checks may also surface historical risks that could threaten the company in the form of fraud, loss of assets or even violence. Having in place an effective due diligence program can also have a deterrent effect upon potential offenders from even approaching the company.
Even if there are no legal requirements, companies may consider voluntarily adopting a higher standard of duty of care as a part of good corporate social responsibility on behalf of all stakeholders involved, also making the company a more attractive employer.
Duty of Care and Retention
Extending beyond a form of infrastructure to protect employees from various risks, duty of care has evolved into a more organic concept as companies strive to show employees that they are valued on a very personal level through active engagement. A company that shows it values its employees as people, making employees feel as though they matter to the company on an individual level, is a company that will be seen as a good employer. A competitor can always offer to pay marginally higher salaries in an attempt to attract away employees. However, employees will not be ready to leave a good company, where they know they are well cared for, merely for a few dollars.
Neal Beatty is General Manager of Control Risks in Beijing. Control Risks is an independent risk consultancy with 18 offices on five continents. It provides advice and services that enable companies, governments and international organisations to accelerate opportunities and manage strategic and operational risks.