Making the Most of Your Human Resources

Source: EuroBiz - Journal of the European Union Chamber of Commerce in China
Date: January 2003

by Vanessa Moriel

There are several Challenges of Headhunting in China - Strong cooperation with the right headhunting firm and the right consultant can help you overcome these.
Since China's accession to the World Trade Organization in December 2001, HR professionals have written volumes about the likely impact of accession on Human Resources in China. But in tough economic times such as these, when you are under pressure to save on costs, I would prefer to talk about ways to optimize use of your current resources. With this in mind, I would like to address one important HR issue facing foreign companies in China right now: How to maximize results and save on cost when seeking to fill positions in your company.

When your organization is seeking just the right person to fill crucial executive, managerial or other positions, the process of finding the right professional headhunter is absolutely critical. But in a market as tough and confusing as China's, this process can itself be a challenging and frustrating one.

So here's how it works . . .

What should you consider when selecting a professional headhunter?
The first thing to keep in mind as you begin your search for the right headhunter is that each headhunting firm in the China market, as in other markets, specializes in its own area or niche ¨C these may break down according to industry, company, level of seniority or nationality. So the first step for any organization should be to look closely at its own needs. It is often advisable to use the services of more than one firm in order to meet the specific needs of your company.

Once you have made an assessment of your own requirements, you can begin to look for those firms whose experience is the closest match. Again, they should have experience in your area of business and understand the requirements of the position you are trying to fill. It is always a good idea to look for a firm with as much experience as possible in China. The Chinese market operates in its own peculiar way, and to get results you must make sure that your headhunting firm knows the right tricks, the pitfalls, the right people and how to approach them. Also, ask yourself whether the firm is diversified enough to meet your needs. How many offices does it have in China? And where are they located? Look carefully at a firm's experience with other German clients, and how familiar they are with German management culture. Do they understand the needs and expectations of corporate management back home?

Things to look out for

There are a number of ways you can ensure the professionalism of a headhunting firm. You can ask the company to provide reference letters from previous clients. You can ask other business people about the company's record in the headhunting field in China.
Most importantly, you should take stock of the company's performance and professionalism at every stage of the search process. How does the company present itself in promotional materials, such as brochures and newsletters? Ask for specific information about how the company operates ¨C for example, what interview techniques it employs to assess job candidates. Try to find out if these techniques are understood and applied with consistency throughout the operation.

Of course, you should carefully study all aspects of your contract with the headhunting firm. Some firms have been known to recycle their stars, or top job candidates, after the probationary period. This suggests a lack of commitment to providing you with top service ¨C they are more interested in your finder's fee than they are in forming a long-term relationship with you. A reliable firm should provide you with a guarantee that they will not offer other positions to candidates you have selected for a period of two years or more.
The point is to avoid surprises after you have signed a contract. Ask the headhunting firm for a clear explanation of what they will consider out-of-pocket expenses ¨C there are firms that charge as much as 20 percent of the total fee ¨C and how they will justify travel expenses. Finally, ensure that your contract has a replacement clause of at least three to six months, no matter what the circumstances.

As important as it is to ensure that you are working with a reliable partner that has adequate China experience, a headhunting firm's experience as an organization is not a guarantee that they can provide you with exactly the services you need. This is where the consultant comes in.
The consultant is the most important factor in ensuring the success of your personnel search. This being the case, you must make sure that the consultant understands your industry, has experience with the organizational position you are seeking, and knows how the headhunting process works in China. Make sure you are dealing with a headhunting professional, not merely an expatriate that has dropped into the job.

Finding a consultant with experience working in a German organization or with German clients is an immense advantage. The management style of German companies differs markedly from that of other companies, and this is something the consultant must bear in mind throughout the search process. If unfamiliar with German corporate culture, a consultant is less likely to locate candidates suitable for your organization. Placement of candidates with previous experience in another culture ¨C American, for example ¨C generally carries a higher risk of lack of fit and failure.

In addition to the above, here are some basic qualities you should look for in a consultant:

• Service-oriented ¨C they are interested in building their reputations in the field by providing clients with excellent service. For example, some companies required their consultants to make at least 30 phone calls per day to acquire new business, which you can imagine leaves very little time to take care of your assignment.
  

• Receptive ¨C they understand personalities and behavior and are able to match candidates with individuals in your organization. Recent surveys show that nearly 70 percent of placements fail as a result of personality mismatches.
  

• Persistent ¨C they ask lots of questions of their clients and help the client to understand and express his or her needs and requirements.
  

• Clear about assessment methods ¨C they can express the qualities they are looking for in a candidate and are clear about the assessment methods most effective in finding the right candidate, and why.
  

• HR Knowledge ¨C they understand HR issues that can benefit you, such as employment laws, obligatory benefits, staff retention strategies and motivation schemes.
  

• Strong commitment to China ¨C they have a strong knowledge of China through practice, and re-adapt Western headhunting practices to fit the China market, especially when recruiting PRC nationals.
  

• Does the necessary detective work ¨C they check up on the veracity of referrals, certificates and degrees to ensure the qualifications of a job candidate before introducing them to the client. In one case, an HR manager from a top multinational shared the story of a candidate who lied about his certification to get a job. When the company discovered this some time later, they fired him. In response, the employee sued the company, arguing that his job performance was more important than his qualifications. A good consultant can help you avoid problems like this one.
  

Before deciding to work with a particular firm, you should make certain they can provide you with the right consultant. Take the time to sit down with a potential consultant and find out how they work, and even how they spend time outside of work ¨C if they are active in the German community and participate in business-related activities, they will have a greater stake in their relationship with you.

Facing the challenges of recruitment

If you develop a productive working relationship with your consultant and your headhunting firm, you will be better prepared to meet the challenges of the recruitment process, such as HR scandals, attracting candidates for positions away from large cities or in locations with unfavorable reputations. In some cases, these challenges can present a consultant and the client with considerable difficulties.
If a company has done inadequate public relations work following restructuring and reorganization, or if it is losing money, candidates may have misgivings. In some cases, entire regions may give rise to perceptions that work against recruiters. Candidates from the mainland, for example, often view Taiwanese corporate cultures as insensitive, and this can make it difficult for these organizations to find the right candidates to fill positions. A history of violance against expatriates in a certain community can leave candidates with the impression that there is danger in accepting the job. Even the size of a company in China can be an important factor in a candidate's decision ¨C he may ask himself whether a small company offers stable long-term opportunities or whether it will close its doors tomorrow.
Ultimately, strong cooperation and communication with the right headhunting firm and the right consultant can help you overcome these challenges and make the most of the resources you have.

For further information, contact Fiducia at info@fiducia-china.com