Heidrick & Struggles on Prioritizing HR To Succeed In China

While the human-resources (HR) function is almost universally acknowledged as a critical source of business value, the situation on the ground in many privately owned enterprises (POEs) in China suggests that many companies haven’t gotten the message.

Even at companies where the leader is aware of the importance of attracting, developing, and retaining talent, disconnects can occur with HR. At most POEs, the HR department has often been short of resources and not given enough authority. For example, at one POE an HR leader who had been hired away from an MNC competitor was astonished to find how little in the way of HR infrastructure and resources the company was willing to allocate to the function—contrary to what he had been promised during the interview process. Not surprisingly, many top HR leaders (and other executives) who come from MNCs struggle when they are confronted with a POE’s organization. The kind of infrastructure they are accustomed to is absent, and though the owner expects them to build it, they must constantly justify every expenditure. In such situations an HR leader’s past credentials and achievements are often discounted. There is significantly more pressure for these leaders to prove themselves than there would be in a comparable MNC role.

To read the full thought leadership piece, please visit http://www.heidrick.com/Knowledge-Center/Publication/Prioritizing_HR_to_Succeed_in_China