HR on the Hot Seat in China
Not only do HR departments at multinationals face intense challenges when it comes to leadership talent matters, but HR executives themselves are among the most sought-after professionals.
By Ed Frauenheim
China these days, human
resource leaders are on the hot seat—in more ways than one.
Not only do HR departments
at multinationals face intense challenges when it comes to leadership talent matters,
but HR executives themselves are among the most sought-after professionals.
Helen Tantau, senior partner with executive search firm Korn/Ferry International
in Shanghai, says HR leaders and procurement officers are at the top of the list
of the managers that companies in China need most.
She says that overall, local
Chinese leaders with good track records can expect salary increases in the 10 percent
to 20 percent range. But talented HR managers are seeing raises of 20 percent to
30 percent.
Part of the reason is a dearth of good business-focused HR professionals in China, Tantau says. Another factor is that companies are locating their Asian headquarters in China, and need regional HR executives. "Even for just the China roles, there are not enough good people to go around," Tantau says.
Trouble finding and keeping capable HR execs exacerbates tricky leadership-related tasks at China operations—jobs that typically fall to human resource departments. Last year, the American Chamber of Commerce in Shanghai surveyed 274 U.S.-based companies with operations in China and found that the No. 1 business challenge in China was "human resource constraints, including attracting and retaining managers and workers." In the survey, 43 percent of respondents said the issue of recruiting capable Chinese managers had a strong negative impact on their business operations in China.
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