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Strategic HR re-model needed for future success within China


Talent is hard to find and keep in China. HR practices need to be upgraded. It's time to reorient HR as a strategic function.

In the coming years, analysts will be looking particularly at China's labor market to assess the country's ability to sustain its growth and achieve the objectives set out in its 12th five-year plan. A highly-skilled labor force is crucial for this transformation, but on this front China faces an acute shortage. Talent is hard to come by, and companies struggle to attract and retain those who are qualified and available. Wage wars run rampant, and wage increases often outplace labor productivity – a frustrating oxymoron for Chinese companies, and an obstacle in the economy's transition to value-added production.

These trends underscore the importance of intelligent and proactive human resource (HR) management, expanding the function beyond the administrative task that is most common in China today. Modern HR management practice, with its tools to tackle today's particular challenges, needs to be further implemented and developed in China if the country is to make the transition.


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