HR Managers

I regularly hear HR managers complain, “Why did I lose that manager over a mere 25 RMB a month?” Over the years, as a human capital strategy consultant advising MNCs in China, I have often heard questions like this from many baffled executives. My answer is always the same. I tell them that actually they didn’t lose her over 25 RMB a month. That just wouldn’t make sense. A safer bet is that she left because she was not happy working at that organisation.

Many of these managers will often retort, “But what does happiness have to do with her growth and success?” That is a pretty good question, which may seem a little tricky at first. The answer, though, is simple, “everything!” Success is a very personal thing, particularly in China today. When your employees are not happy at your organisation, the sad fact is that they will leave you. They will give up all the exciting opportunities you created for them. You may find this baffling, particularly if you had mapped out clear succession and development plans for them, and had them earmarked for greatness. However - right or wrong - that is the reality.

Tip of the Iceberg

Talent shortages top the agenda of MNC executives and business planners in boardrooms all over China. For many of these organisations, the initial marvelling at China’s speed and growth potential has quickly given way to frustrations born from a shortage of talent, disappointing performances and crippling turnover amongst key employees. “We have tried everything,” lamented one frustrated veteran HRD. “Nothing seems to be working – training, counselling, raises, promotion, trips, family leave. Some people still leave one month after they sign-on. Where do they go? It seems, employers offering more opportunities for growth, or an MBA program lure them away. To me, this whole process seems irrational and is getting out of control!”

The problem our HRD describes is a costly one. And, unfortunately for many organisations, the solution is still proving to be illusive. They cannot escape the fact that there is a mere trickle of top quality talent flowing into the Chinese market, which is overwhelmed by the torrential demands within many industries.