“People who say it cannot be done should not interrupt those who are doing it”
– Old Chinese proverb
– This is the third post from the China series –
People drive your strategy to success. They make the PowerPoint come alive; transform paper into practice. But that does not happen by itelf. You will encounter quite a few people challenges when you move your business into China. Here’s a list of 5 people challenges you will most probably come across and tips to overcome them.
1. Headquarters asks too much
For many executives, China is the promised land; the goose with the golden eggs that has to secure their next bonus. In order to reach the double digit figures they promised to the board, they push local operations to the limit, or over the limit.
Make sure the team in China is more than an unknown group of individuals who have to deliver aggressive growth figures presented in a budget report.
2. Language and cultural barriers not taken into account
I don’t have to tell you China is a different world. However, many people seem to forget this. In fact, one of the most common mistakes when negotiating in China is to rely on the clients’ negotiator. And that’s strange, because we all know on which side (s)he will be. And even if (s)he would be neutral, (s)he does not know your product, your strategy differentiators nor is (s)he aware of your negotiation ambition.
So spend the extra money — and time — to find yourself a top level translator who knows your product, your needs and, most importantly, your negotiation strategy.
3. Recruitment issues
There are not enough managers in China — demand is higher than supply. And managers know and exploit this simple fact.
Here’s an interesting real-life story I heard during my last visit to Shanghai. It illustrates the way Chinese managers look at job hopping. A candidate for a manager position arrives at the recruiters office and starts apologizing. It takes a moment for the Western recruiter to get the point, as the message is so different from the Western way of thinking. The Chinese candidate was looking for all kinds of excuses for the fact that he has been employed by his current employer for 8 years– 4 times longer than the current norm in China.
People will come and go — that’s the market trend. However, you have to see how you can move beyond the salary to attrack (and if possible retain a bid longer) people. If not, it will only become a bidding war.
Think how you can make your organisation more attractive to Chinese candidates. A solid brand name and international exposure will help. These two elements are valued highly by Chinese managers, as they look great on their CV and improve their current (prestige towards friend and family) and future value.
4. Teamwork is not a state of mind
For the average Chinese worker, teamwork is not a priority. From childhood on, Chinese have been competing for everything they do. There were always others to claim the same spot, so they had to fight to secure their space. And so it became a habit, deeply engraved in their personal DNA. So when you tell Chinese to work as team, they will probably say ‘ye’s but think ‘no’ as teamwork is not part of their DNA.
As a leader, you have to be aware and understand the ‘why’ behind the fact that Chinese don’t favor teamwork. In order to create change, you will have to promote and push teamwork relentlessly. But it will be quite a challenge to change a habit engraved in the DNA since kindergarden.
5. Human Resources (HR) not yet mature
The HR concept as we know it in the West is rather new in China. Few choose Human Resources as their career goal. The traditional HR-view — ‘keep the personnel files together for external reporting’ — is still predominant. Furthermore, due to the limited employer loyalty, most Chinese executives see investing in people as a waste of money.
I believe Western companies have an opportunity here to stand out and be different. In the short run, especially a solid, hip professional employer branding approach can help attract local top talent.
