Human Resources: How to lead a talent team in China

How to develop, manage, and lead a talent team in China

By David Dan, D Square Transformation Consulting Inc. -- Electronic Business, 4/19/2007

For more information on this topic, see our Guide on "Doing business in China."
What do the following companies—Alibaba, Baidu, Canon, Ericsson, Haier, Lenovo, Li-Ning Sport, Oracle, and Starbucks—have in common?

Human resources professionals and consulting firms in China selected them as the 2005 "Best Employers in China." They were selected based on three criteria: an employee's growth opportunity, an employee's sense of self- achievement, and an employee's sense as a team member of the organization.

Second question: What do these companies—Lenovo, P&G, Huawei, IBM, Haier, China Mobile, Microsoft, Siemens, GE, and Nokia—have in common in China?

Answer: They are the ideal companies, in the order in which they are listed, to which Chinese university graduates can apply for their first job.

The new graduates measured a "good or great company" according to several factors, including company culture, a company's marquee value, brand awareness, and compensation packages.

The compensation package used to be the top reason employees left companies in China. This is true in labor-intensive industries, but it is not the case for talent-oriented operations. I have interviewed many senior multinational companies'managers in China about what their employees are most concerned about in their jobs. Some of the common concerns include what the company's commitment is to grow in China and whether or not the company's leader has a background in Chinese culture.

I disagree about so-called guanxi in most cases in the professional world, but I do emphasize that "personal touch from your heart" by appreciating an employee's work. Showing an interest in people's career path as well as in family members is the most critical factor for building up a talent team in China. This is a global standard of leadership that works well in China too. I have seen many expatriate executives only work in the office, waiting for reports and asking a lot of questions without going out to connect with customers. Playing golf or having dinner at a VIP membership-only club with your closest friends doesn't help your business. Instead, drive yourself to visit customers and network with local people. Go to local events, and visit an employee's family on the weekend —these are powerful tools for fostering leadership and retaining talent.

"Care with your heart" instead of guanxi: This is a universal rule. I used to run a "family day" program twice a year to express appreciation for my employees' family support in our tough 24 x 7 business environment.

Author information David Dan is president and founder of Dsquare in San Diego. A computing industry veteran, he started up the Taiwan office for Intel and led Intel China in its startup stage in 1994.

Six ways to develop a talent team in China 1. Your company and expatriates' commitment in China do matter. This is the basic foundation for a startup organization. 2. Understand and manage the culture conflict: among Chinese, Communist, and Western cultures. 3. You need to have a talent development program and commit to make it work. 4. Choose the right leader for your Chinese operations—someone who has a strong passion for China and the Chinese, not only for the business objectives, and appreciates or enjoys the people, culture, and environment. 5. Not all Chinese are the same. The Chinese from Taiwan, Hong Kong, Singapore, and mainland China are different; they have different cultures and experiences. A good manager recognizes this and makes the necessary adjustments in managing the employees. 6. Last but not least: Be patient. It takes time to build your credibility in the HR community and on the campus. Once you do, you have a better chance to recruit the best talent.

What Chinese university graduates look for in a company 1. Company culture: The factors in this category include a stable and challenge working environment, an opportunity to move up in the company, some level of globalization, and a top-rate recruitment policy. 2. Company marquee value: The perceived strength of the company's management and leadership abilities is important to recruits. They also mentioned the company's growth rate and the impact or value of the company on the economy—both nationally and locally. 3. Brand awareness: In the market as well as on the campus. 4. Compensation: The package must be competitive with those of other companies in the market. Training and development programs are also important.