{"id":3618,"date":"2019-08-20T10:19:07","date_gmt":"2019-08-20T10:19:07","guid":{"rendered":"http:\/\/cbbcfocus.com\/?p=3618"},"modified":"2025-04-23T10:14:49","modified_gmt":"2025-04-23T10:14:49","slug":"human-resources-in-china-2-0","status":"publish","type":"post","link":"https:\/\/focus.cbbc.org\/human-resources-in-china-2-0\/","title":{"rendered":"Human Resources and organisational Change in \u201cChina 2.0\u201d"},"content":{"rendered":"

As China\u2019s economic status and strategy continues to shift, companies are adopting a variety of different strategies to reflect these changes in their approaches to HR, writes Stephan Kracht of Fiducia China<\/a>\u00a0<\/strong><\/h2>\n

China is more affluent and innovative than ever, but also more complex and competitive. In this new reality of \u201cChina 2.0\u201d, foreign businesses are under intense pressure to do things differently \u2013 starting with the way they structure and run their organisations.<\/p>\n

Companies are reshaping their organisational setup and HR strategies to match \u201cChina 2.0\u201d and cope with broader shifts happening in the country\u2019s employment landscape, including generational change and a severe skills shortage in high-tech industries.<\/p>\n

Agility is key if businesses wish to stay ahead in a market where trends and regulations can change unexpectedly. Other approaches include growing headcount and realising that tough competition calls for an \u201call in\u201d approach. And many are strengthening their company culture through corporate social responsibility (CSR) and other engagement programmes.<\/p>\n

Agility is key if businesses wish to stay ahead in a market where trends and regulations can change unexpectedly<\/p><\/blockquote>\n

Companies should be embracing change rather than shying away from it, and the potential gains for foreign companies in China have never been higher. But seizing them starts with building the right team.<\/p>\n

China 2.0 Through the HR lense<\/strong><\/h2>\n

Each organisation is a world of its own. But certain HR challenges and priorities are shared by many companies. These are some of the ways in which \u201cChina 2.0\u201d is influencing HR agendas:<\/p>\n

\"\"<\/p>\n

 <\/p>\n

China\u2019s Shifting Employment Landscape<\/strong><\/h2>\n

 <\/p>\n

Headwinds…
\n\"\"<\/h2>\n

… & Tailwinds<\/h2>\n

\"\"<\/p>\n

 <\/p>\n

 <\/p>\n

5 HR Trends in China 2.0<\/strong><\/h1>\n

There are no \u201cone size fits all\u201d solutions to the problems of finding, retaining, and developing talent, but businesses facing similar setbacks tend to come up with similar strategies. These are 5 common ways in which international companies are solving HR challenges in China:<\/p>\n

1. Re-think your candidate profile <\/strong><\/h2>\n

Multinationals have traditionally had a clear idea of which positions they want to fill with expats and which ones they need local talent for. Increasingly, however, the nationality of candidates is not specified by employers and recruiters from the outset, largely because the pool of Chinese professionals with international experience has expanded. Identifying cases where traditional assumptions no longer apply is an easy way of broadening your pool of potential candidates.<\/p>\n

2. Build a talent pipeline <\/strong><\/h2>\n

Searching for talent is becoming an ongoing and proactive effort rather than a reactive action when there\u2019s a vacancy to be filled. Measures such as maintaining a strong industry network and investing in employer branding can help you build a pipeline of potential candidates. In industries where scarce or highly specialised skills are needed, our clients engage Fiducia\u2019s Talent Mapping service to identify and start building relationships with candidates they might one day need.<\/p>\n

3. De-centralise decision-making<\/strong><\/h2>\n

Foreign companies are increasingly losing top talent to Chinese businesses: 30 percent of leaders crossed over from a multinational corporation to a local company in the last five years, whereas only 10 percent of leader went from a local company to a multinational. One disadvantage leaders face at foreign enterprises is that strategic decisions are made at headquarters, so their authority and ownership is limited. Shifting decision-making power to your China subsidiary is an effective way of increasing motivation and retention among senior executives.<\/p>\n

4. Get creative with compensation <\/strong><\/h2>\n

China\u2019s economy is cooling, yet living costs keep soaring – especially in big cities. In this context, it\u2019s difficult for companies to give their employees the salary increases they expect. Domestic top employers are implementing ingenious and more cost-effective ways of showing their employees that they understand their concerns. Alibaba, Tencent, and Xiaomi, for instance, are helping employees purchase apartments by offering subsidies or interest-free loans.<\/p>\n

5. Invest in upskilling<\/strong><\/h2>\n

Developing employees has always been a priority for HR departments, but the resources and effort directed towards it often take second place to hiring new talent. China\u2019s fierce and costly talent wars are driving foreign companies to shift gears and realize that investing in retention and upskilling pays off. We\u2019re witnessing this change first-hand, through the growing demand for Assessment Centres that help clients identify and then develop potential talents.<\/p>\n","protected":false},"excerpt":{"rendered":"

As China\u2019s economic status and strategy continues to shift, companies are adopting a variety of different strategies to reflect these changes in their approaches to HR, writes Stephan Kracht of Fiducia China\u00a0 China is more affluent and innovative than ever, but also more complex and competitive. In this new reality of \u201cChina 2.0\u201d, foreign businesses are under intense pressure to do things differently \u2013 starting with the way they structure…<\/p>\n","protected":false},"author":4,"featured_media":3619,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[365,128],"tags":[179,2427,561],"class_list":["post-3618","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-human-resources","category-services","tag-hr","tag-paywall","tag-recruiting"],"yoast_head":"\nHuman Resources and organisational Change in \u201cChina 2.0\u201d - Focus - China Britain Business Council<\/title>\n<meta name=\"description\" content=\"The latest trends and things to be aware of when hiring staff in China from creative compensation to investing in upskilling\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/focus.cbbc.org\/human-resources-in-china-2-0\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Human Resources and organisational Change in \u201cChina 2.0\u201d - Focus - China Britain Business Council\" \/>\n<meta property=\"og:description\" content=\"The latest trends and things to be aware of when hiring staff in China from creative compensation to investing in upskilling\" \/>\n<meta property=\"og:url\" content=\"https:\/\/focus.cbbc.org\/human-resources-in-china-2-0\/\" \/>\n<meta property=\"og:site_name\" content=\"Focus - China Britain Business Council\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/chinabritainbusinesscouncil\" \/>\n<meta property=\"article:published_time\" content=\"2019-08-20T10:19:07+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-04-23T10:14:49+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/focus.cbbc.org\/wp-content\/uploads\/2020\/05\/shutterstock_584118919-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2457\" \/>\n\t<meta property=\"og:image:height\" content=\"1024\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Tom Pattinson\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@ChinaBritain\" \/>\n<meta name=\"twitter:site\" content=\"@ChinaBritain\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Tom Pattinson\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/focus.cbbc.org\/human-resources-in-china-2-0\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/focus.cbbc.org\/human-resources-in-china-2-0\/\"},\"author\":{\"name\":\"Tom Pattinson\",\"@id\":\"https:\/\/focus.cbbc.org\/#\/schema\/person\/e018861c7d394ff225f743cefe304279\"},\"headline\":\"Human Resources and organisational Change in \u201cChina 2.0\u201d\",\"datePublished\":\"2019-08-20T10:19:07+00:00\",\"dateModified\":\"2025-04-23T10:14:49+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/focus.cbbc.org\/human-resources-in-china-2-0\/\"},\"wordCount\":700,\"publisher\":{\"@id\":\"https:\/\/focus.cbbc.org\/#organization\"},\"image\":{\"@id\":\"https:\/\/focus.cbbc.org\/human-resources-in-china-2-0\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/focus.cbbc.org\/wp-content\/uploads\/2020\/05\/shutterstock_584118919-scaled.jpg\",\"keywords\":[\"hr\",\"Paywall\",\"recruiting\"],\"articleSection\":[\"Human Resources\",\"Services\"],\"inLanguage\":\"en-GB\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/focus.cbbc.org\/human-resources-in-china-2-0\/\",\"url\":\"https:\/\/focus.cbbc.org\/human-resources-in-china-2-0\/\",\"name\":\"Human Resources and organisational Change in \u201cChina 2.0\u201d - 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