Opening Shop in China- Considerations for Securing and Retaining Talent

June 2, 2009 in Uncategorized

U.S. companies who consider launching operations in China often view their entry from several perspectives, including the legal hurdles, market landscape, and financial obligations required to stabilize a new venture. For many of these executives, considerations of talent and staffing come secondary. It is important for planners to realize that securing skilled talent and retaining talented employees remain on-going, critical activities that significantly affect the ability to reach optimal performance. Training strategies, foreign assignments, and retention plans represent a make-or-break element of staying on-schedule towards full-capacity. As a result, U.S. executives would be well-advised to develop their retention and talent-management strategies much earlier in the entry discussion.

Last year, I attended Alice Law’s presentation to AmCham Shanghai on Developing High-Flying Potential. Alice Law. Apr 2007. Alice did an excellent job of relating employees’ needs and expectations related to professional development. For small/medium-sized American companies who are new to China, I believe there are several key points:

1. Select and retain employees according to job-fit. You are likely to have to train your employees anyway, so choose to develop employees who fit with the culture and have the personal characteristics to excel after they have received proper training. Alternatively, you could target experienced professionals who can jump into a role during company start-up, and then plan for them to leave after 1-2 years. You are then able to hire a potentially less-talented employee (at a lower wage) who can grow into the position with less business risk to the stability of the company. The latter strategy will still necessitate development opportunities and allowance for a learner’s curve.
2. Use evaluations and development plans to clarify the kinds of experience employees want, and the obstacles they are facing. In these conversations, distinguish between depth of experience and breadth of experience available. Young employees are likely to have an “I want it all” attitude toward experience, instead of distinguishing the difference between a business generalist moving toward a GM-type position, or a specialist known for depth of expertise. Once these differences are clarified, determine the obstacles that the organization can remove while still achieving improved business targets.
3. Foster a shared learning mentality. Talented employees commit longer and have stronger relationships when managers commit personal time to their reports. This time could be as little as 1 hour of one-to-one time with subordinates, but can also include introductions that strengthen the subordinate’s professional network, or pearls of wisdom from personal experience.
4. Promote a culture of excellence. Employees will expect promotions, and often connect those promotions to length of service rather than evidence of increased professional skill. Encourage managers and subordinates to record subordinates’ skill development, and use promotions as a time to praise skill. Chinese employees are known to leave companies because the new job comes with a status-enhancing new title. Retaining employees will mean explaining your organization’s use of promotions to recognize excellence, and that excellence can be independent of authority over others (i.e. management positions). At the same time, excellence is directly related to reward and other forms of prestige.

Advertisement