Coping with China's Worker Shortage

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When interviewing local candidates, an overseas employer needs to understand cultural differences and how they influence the ways candidates may present themselves or express their interest.

It is good to get the candidates talking and really assess their experience. As in all interview situations, a good interviewer needs to remember to ask open-ended questions, using situational and behavioral probing, rather than questions that can be answered with a yes or no. It is also important to understand to whom the employee will be reporting. If an employee needs to speak regularly to overseas headquarters, then test their telephone English on the phone.

Mentor, nurture, and support new hires and key employees from the moment the offer letter is signed. Call a new hire, welcome her, take her out to lunch before she starts the job. In this tight market, signing an offer letter is no guarantee. Bonding and building rapport need to start immediately. Consider investing in an employee welcome package. Offer young employees a mentor within the company. In one recent incident, an HR manager complained her company has terrible problems with retention. She then described how she had seen a new employee sit down at her desk across from a senior member of another team. The senior person never once said hello, made any introductions, or welcomed the new staff member. Not a great strategy. Obviously company-wide there was no policy for bringing in and settling new employees.

Rethinking the Perks

Understand and communicate your corporate culture. Ask yourself whether that culture needs to be adjusted for the region. Our candidates often tell us they are looking for an open, supportive environment. They appreciate training and development. There are ways to show an interest in employees at a low cost that can still benefit the company. Consider bringing in an English or Mandarin teacher to work during the lunch hour with employees who want to improve their language skills. Develop certification programs for employees to learn job-relevant skills.

Some regional offices in Greater China have begun to move in this direction. One international banking firm here offers English training with certificates for progressive English levels. The regional office of another multinational in Hong Kong offers management and communication skills workshops with certification for completion.

Think creatively and flexibly about how to find workers who may be not currently in the workforce. Right now, growth is attracting overseas Chinese candidates who currently work in Canada, Australia, or the U.S. These people are motivated to get into the region and often have the combination of language, cultural understanding, and worldview needed for the challenges of a developing Greater China market.

Offer Flexibility

The idea of flexible work hours, part-time work, job sharing, or "mother's hours" should be considered as a way of attracting another underutilized portion of the workforce. If you can meet someone's needs in terms of work/life balance, you can often find a dedicated, motivated, and loyal employee. In a market where a five-day workweek is not necessarily considered the norm, flexible or reduced work hours are not easily accepted, but are definitely something to consider.

Your employees are your greatest asset and sometimes your greatest challenge. Finding them, hiring them, and keeping them will remain a challenge in this market for the foreseeable future. Whether or not there is a correction, companies must strive to do more than just hire to fill a slot. They need to look at their employees as talent and to work toward talent management, career development, and work/life balance if they want to hire and retain today's employees.

Deborah Matson is managing director of Links Recruitment, headquartered in Hong Kong, with offices across Greater China.