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Definitive China Hiring - Cheezhead WikiThe starting point for this was a post on ERE where I suggested we could come up with a definitive hiring document for China, one that would get people up to speed very fast, and fill out details for people who already know China.

This is a real Wiki so those who added to it can now change/modify/improve their posts.


China Hiring Context (FAQs)

  1. Q: Why do HR departments in China have difficulty getting a retained headhunter’s attention?.
    A: He has too much on his plate and wants clients who can definitely close candidates. Everything else he leaves on the table for contingency recruiters.
  2. Q: What happens when you work with a lot of contingency recruiters instead?
    A: You get what you deserve ie. candidates thrown at you without any assessment of their fit, and a ton of interviewing that generates few successful hires. Meanwhile, your competitor works with a retained company that works with them in a partnership. Hiring is hard in China and success requires a partnership.
  3. Q: Why do headhunters have difficulty getting strong candidates’ attention?.
    A: Strong candidates get 6 calls a month and always have a firm offer in hand. If the company calling them is not a recognizable ‘name’ they will think twice about continuing the conversation.
  4. Q: Why do headhunters have difficulty getting any candidate’s attention in China.
    A: All candidates in China get ‘only’ 4 calls a month and often have 1 firm offer already in hand, or are close to getting one. Staff in China actually compete with each other to see who has the most calls from headhunters. The winner pays for dinner.
  5. Q: Why do HR staff and in-house Recruiters have difficulty getting their General Manager’s attention?.
    A: HR is still seen as ‘just support’ in China. GMs want Recruiters to give them ‘more candidates’.
  6. Q: Why can’t line managers get HR’s attention with regard to their need for new staff?.
    A: HR has too many requisitions. Hiring is the HR department’s No. 1 job and it gets more difficult by the day.
  7. Q: Why does HR have difficulty getting the IT department’s attention?.
    A: There is always a budget for an ERP because the value has been proven by finance people who speak the language of the board ie. numbers and cash. But there is never a budget for an ATS or a Succession Planning System because HR tends to speak in vague generalities.
  8. Q: Why has online hiring technology, like Applicant Tracking Systems (ATS), been slow to develop in China?
    A: ATSs are excellent in markets where there are thousands of candidates. In China there are few candidates for any given job and the need to automate the internal hiring process is less. The good news is that for the larger companies in China deployment of ATSs has started. Cost is no longer a barrier because there are new online ATSs that can be paid for on a monthly basis.
  9. Q: Why don’t we see more adoption of software systems for succession planning and performance management?
    A: Everyone is too busy replacing the last person who resigned, and hiring for the next round of resignations. In addition, the HR teams keep collapsing, thereby making the hiring process even more difficult.
  10. Q: When will this cycle end?
    A: Hope that it never does because it will only end when there is a dip in the economy, and we are not ready for a dip in the Chinese economy. No one in China has actually had experience of falling stock markets, declining exports, collapsing real estate prices and so on. The consquences for employment will be very significant, to say the least.

<Submitted by Frank Mulligan>

Hiring Process

Unfortunately, if you are an internal Recruiter or Line Manager, it all comes back to jobs and hiring in China. There are certain things you can do to make the process run more smoothly but hiring will continue to be a challenge no matter what you do. Business success in China is less contingent on successful sales and more closely related to hiring the right people to implement. The sales are there, the people are not.

As a Recruiter, you can improve your own work, but It is more important to make sure that your line managers follow a process. I would suggest you do the following:

  1. Line managers should not wait more than a few hours before they begin to review applicant emails or online application links sent by you. Insist that they commit to this.
  2. Line managers also should not wait more than one day to respond with a decision about which candidates they want to actually meet.
  3. Phone screen all applicants and take the time to cull unsuitable candidates. Aim to bring in only two to three people and hire one.
  4. Don’t assume anything. Line managers should tell their Recruiter in detail why they thought his/her presented candidates were unsuitable, or suitable.
  5. Line managers should never tell their Recruiter that they will only interview when they have enough candidates ie. more than 4. Line managers must interview the candidates that have been presented, NOW. If you wait more than a week you are likely to lose the current slate
  6. Never miss interviews unless it absolutely critical. When you have to reorganize timing, be flexible and show the candidate that this is not how you normally work. Above all pay them the respect they deserve.
  7. Once you have decided that someone is suitable, get an offer to them within a day or two. If you cannot do this, ask why, and take steps to ensure you are ready the next time. HR can support you with standard contracts etc.
  8. Do not allow yourself to be unduly influenced about not hiring someone. On the other hand if everyone agrees act fast, the time for thinking is over.
  9. Communicate with the successful candidate at least 5 times before he comes on board and meet him at least once. This is not HR’s job but everyone's job.
  10. And finally, be there when the candidate arrives for his first day and make sure you have thought through what you will do with him for that first day.

<Submitted by Frank Mulligan>


Behavioral Interviewing

The basis of Behavioural Interviews, or Competency Interviews, is that past behavior is the best way to determine future performance. This is ok in so far as it goes but the culture of the person on the other side of the desk is a big factor.

The weakness of this kind of interview is that, like all interviews, it can be practiced. In China few people have had a chance to practice and care must be taken to ensure that they get a good shot at doing well.

Additionally, people from individualist cultures do well in behavioral interviews while people from more communitarian cultures simply don't because their sense of self is wrapped up in other people.

So if you ask someone from the US to describe a situation where he had difficulty communicating with someone he is likely to be able to give you half a dozen solid examples.

The reaction in China is often, 'Difficulties communicating, no, no, I don't have difficulties communicating. I'm in sales and we are good at communicating .....' As you can see the issue of 'face' comes in here as well.

Recommendations

What all this means is that the pre-interview 'Spiel' that is normally given to introduce Behavioral Interviewing must be longer than usual in China.

To take it further, it has to be explained that not only should the candidate give real examples of real situations but also that he will not be penalized for describing situations that did not work out as planned.

Lastly, candidates should be given the chance to have a practice question and that question should be structured to show the candidate that in fact we all have 'problems with communicating' or 'difficulties in planning'. It has to be made clear that this is perfectly normal and nothing to be ashamed of.

If the interviewer gives a specific, personal example this should have the highest impact.

<Submitted by Frank Mulligan>



Hiring Direct Labor in China

For workforce on production floor, the turn over is extremely high. Different from companies in the west, the average age of is very young (average 20 years). For manufacturing companies here in China, there is usually fully-occupied staffs deal with the hiring of DL. The hiring cost and training cost are pretty high because of the high turn over rate. Especially in first-frontier cities in China.

Reasons:

1. For DL, the no.1 factor to make the decision of changing a job or not is money, even RMB50 can make a big difference;
2. In China, usually factories are built in a certain area like industrial area/park. It’s easy for them to “shop” jobs;
3. Usually the main labor force of DL are from country-side/poor areas. They never think they will be part of the cities (fast-pace, high cost of living, the way they are treated…) So basically they do not even think in terms of “long-term development”;
4. Their age if one reason as well. For many companies, they prefer to hire young workers. The fact is, for a young guy it is easier to change a job than a mature person who has family to support;

Solutions:

To try to work with vocational school and build long-tern relationship with them; To widen the labor source to middle aged, responsible persons; To keep the working environment harmonious;

<Submitted by Cheryl Deng>



Hiring Good Chinese Salesmen

Salesmen generally fall into two broad categories: customer service oriented “order takers” and value adding “problem solvers”. Most multinationals seeking outside sales professionals are looking for value-adders – who are under-represented in typical China-based companies.

Traditional Chinese salesmen tend to spend all their energy building connections, with only the vaguest notion of how these relationships will ultimately result in a transaction. The problem facing Chinese salesmen (and their international managers) is that traditional Chinese buyers don’t look at salesmen as a business resource, or recognize their expertise. Chinese salesmen tend to wait for their prospects to initiate the transaction – and merely negotiate discount levels. While this approach may work just fine in a retail environment or when selling to bureaucratic government agencies, it is wholly inappropriate for an international B2B operation.

Attempts to transform a Chinese order-taker into a proactive, independent value-adder are generally unsuccessful. I’ve seen western sales managers and MDs try training, coaching, bribing and threatening – all to no avail. The problem can usually be traced to the hiring methodology. Chinese managers hire team-oriented, relationship building sales people because that’s the kind of person they are most comfortable working with. It’s ironic that aggressive, money-oriented types are just as plentiful in China as in western countries – but the established HR decision-making hierarchy tends to avoid them because they disrupt the harmony of the workplace.

Solution:

1) Build a profile of your target salesmen based on the kinds of behaviors you want to hire. You don’t want someone who will work hard and fit in with a group – you want someone who can be persuasive and is motivated by selling. The best salesmen are independent and goal-oriented. They like being right and getting their own way. These are the behaviors you should be seeking out.

2) Compensate these individuals as individuals – not as anonymous cogs in a larger machine. Good salesmen are motivated by individual achievement and monetary gain. They react to commission and individual incentives. Make that part of the interview conversation. Sales is one area where a little selfishness and greed are healthy. The best salesmen are in it for the money – and they want people to know it.

3) Look beyond the respectable, top-school, corporate mold. In China, your best salesmen are probably coming from the less developed provinces, and may not have graduated from famous schools. That’s ok. These are the people who are really driving China’s economic growth. Don’t worry if they are a little rough around the edges. An aggressive salesman can be trained to present well and wear a nice suit. A meek bureaucrat can never be taught to fight for an order or close a tough sale.


<Submitted by Andrew Hupert>

Demographics in China

The first generation of “single-kid policy” right now is one of the main workforces in China (around 27 years).

This generation is very demanding population, because of the environment they grew up (spoiled). The motivation of them is very different than other populations. Very minor factors can make them opt out the interview process (convenience, working hours, OT…)
They are not even patient enough to finish the routine interview processes. Because of the non-advanced social insurance system in China, they need to support their families in case they are getting old (2 pairs of parents and grand-parents).

Solution:
1. Make the job attractive and flexible; instead of a boring JD;
2. Change the mindset of “routine/perfect interview processes”; redesign the process based on different targets;
3. Reconsider the offer (the C&B package)
4. Many times as a recruiter, you need to be a sincere career consultant to them


(submitted by Cheryl Deng)
Mobility /Relocation

In China mobility / Relocation is more difficult than in the West. The policies and social system are still big barriers, which is a big concern for candidates while considering an offer in another city, especially with those who have families. First of all, there is a barrier of “Hukou”, similar to the permanent residence card. It is not a easy process to transfer among different cities; then comes the insurance system. It is difficult to move your insurance in one city to another (right now the Chinese government is improving this). And different cities have different levels; Then comes with the education for their kids. In most cities in China, you pay different rates for the education of your kids regarding to the location of your “Hukou”. Unfortunately for experienced candidates, they have been working for a certain years and most likely they have families.

And usually the top talents are not evenly distributed among different cities in China. So mobility/relocation sometimes is a must for companies who want to hire “the right one” instead of “a just ok one”.

Solutions:
1. Think in the candidate’s shoes while talking to them;
2. Let the candidate’s family get involved if necessary;
3. Make proper allocation package plus the basic C&B offer (to offset inconvenience);
4. Provide long-term development picture to the candidate (to offset the risk of leaving a comfort zone)


(submitted by Cheryl Deng)