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Purpose

The EU SME Centre in Beijing is a project funded by the European

Union

To assist European SMEs to export to China and establish,

develop and maintain commercial activities in the Chinese market

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IN COOPERATION WITH

How to Manage Chinas Most Important Resource

Tapping into the Full Potential of Chinas Generation.
April 16, 2013
A project funded by the European Union

Our Speaker
Elisa Mallis
Head of Executive Coaching, Management Development Services Chair of European Chamber of Commerce in China HR Forum, Beijing

Experienced Human Capital Consultant and Executive Coach ICF (ACC). Coming from Management Consulting Background 10 years with Accenture. Last role Human Capital Strategy Lead, Asia Pacific Consulted to numerous multi-national companies over the last 14 years across US, Europe and Asia MA in Organizational Psychology, MEd in Counseling Psychology Columbia University in New York Lived and worked in 16 countries last 6 years in China

Agenda

The biggest HR Challenges in China The latest attrition and wage data and the impacts What Chinese Generation Y and Z professionals are really looking for Latest Talent Sourcing Strategies for SMEs to consider

Overview
The China Talent Challenge is becoming even more Challenging!
Globalization
Global Management Skills Gap New competencies needed Virtual teams

New Growth, New Jobs

High attrition Increasing wages Softening economy Pace of change

Workforce Demographics
Aging workforce Generation Y and Z Skills shortages Engagement issues

So what do SMEs need to do to attract and retain Generation Y workers in China?

Recruitment and Wages

Wages grew by 10.2% in the previous year, and expected to increase 8.1% in 2013. (Annual Salary Survey Report 2012, German Chamber of Commerce in China) 30% of companies expect to be giving more than 10% increases in 2013, which is significantly higher than the rest of the region. (2013 Hays Salary Guide) Hardest to recruit for areas: Sales, Technical, Accountancy and Finance and HR (2013 Hays Salary Guide) Attrition figures in China continue to be over 2 x higher than Global averages

Generation Y Globally
Members of Generation Y entering the workforce associate their relationship with the organization based on the relationship with their direct supervisor and they have different expectations . . .
Current Workforce Needs Multi-tasking is commonplace Culture that embraces entrepreneurial and innovative thinkers Culture that is adept at diversity and global issues Projects that thrive on achievement oriented and independent learners Independent and responsibility driven careers Future Workforce Needs Provide sincere and frequent guidance, direction and feedback Create real and clear goals and expectations Cultivate a culture of patience and flexibility Cultivate a work ethic that promotes live to work vs work to live Do not want to be told what to do !

Generation Y in China

Source: Succeeding with Generation Y in China, Nandanie Lynton and Kristen Hogh Thogersen

Make up over 50% of the working age population Hold many traditional values, beginning to challenge the pre-eminence of hierarchy Most highly educated generation in China First generation of only children in the world Very high IQ, many are gifted, can be perfectionists More assertive and creative, dont want to be told what to do

Engagement Levels in China

A recent study highlights that only 6% of employees in China are highly engaged, and an Enterprising Culture is most effective in raising engagement
6% 17%
13% 52% 12%

11% 66%
23%

Under-Engaged Disengaged Moderately Engaged Highly Engaged

Enterprising Culture Social Culture Dependable Culture Hierarchical Culture

Source: Source IQ Study in 2011, Directions Consulting. 972 participating companies from China 12

Increasing Importance of Global Skills

Understanding International Markets and Ability Manage Diverse Employees are two of the three most important future skills for Chinese Managers

Gen Y and Z Expectations

Most important motivators to stay in job
(2012 Greater China Region and Singapore, Talent Environment Report):

1.

2. 3.

Opportunity to increase responsibility / challenges Better company culture / people Better work / life balance

Generation Z Needs

Excitement and variety Flexibility dynamic work environment Mobile devices social media and workplace mobility more important than salary Detest authority and strict working environment Need constant encouragement and feedback Predicted to be the most environmentally and socially aware generation yet
Understanding Generation Z: German Chamber Ticker Michael Mader and William Wu

New Leadership Style Required

Source: Korn Ferry Institute, Asia 2.0 Leading the Next Wave of Growth in Asia

New Leadership Style Required

Source: Korn Ferry Institute, Asia 2.0 Leading the Next Wave of Growth in Asia

Potential to Innovate

1. The SHL Talent Report 2012 2. MRG Group Leadership Effectiveness Analysis (2009) Report Across Cultures

Talent Sourcing Strategies

Create an enterprising culture, a coaching culture, a flexible culture, a family like culture and spread the word Utilize Search Engine Optimization and Social Media LinkedIn, Weibo, Tianji Excellent pool of newly graduated foreigners who speak perfect Chinese untapped talent pool Approach Passive Talent Pools, rather than relying on ads to attract talent Use Temporary workers

Talent Retention Strategies

Move from an attitude of why dont they do it like I did it to an attitude of how can I bring out their full potential Provide an inspiring vision, values and roles models Provide ongoing guidance by being in the background, rather than by giving orders Use a coach like approach listen and talk less Provide opportunities for Gen Y and Z to develop a Global Mindset early on Allow more flexibility in processes and working practices Embrace social media and find ways to utilize it to increase innovation and engagement

China Labour Contract Law

Issued for public comment in July 2012 Amendments:

Regulation of labour dispatch activities Limit the scope of labour dispatch functions to temporary, auxiliary or substitute jobs Limit the length of labour dispatch to 6 months Provide equal pay for equal work to dispatched workers

China Labour Law

Immigration: Law on Exit and Entry Administration Draft interpretations on Labour Disputes Regulations enhancing benefits for female employees Draft overtime regulations

Conclusion
Traditional (Regional)

Progressive (Global)

Command and Control Management Rigid and conservative

Empowerment and Trust Based Management Open, agile and Innovative Collective interest

Self interest

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IN COOPERATION WITH

Elisa Mallis, MA, MEd Head of Executive Coaching elisa@mdsbeijing.com

www.eusmecentre.org.cn enquiries@eusmecentre.org.cn