ISSUES FACED BY MINYING COMPANIES FOR A HR DEVELOPMENT STRATEGY

 

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By Ms. Jane Yu, Senior Consultant, Shanghai Onpress

Ms. Yu graduated from finance in Beijing; she then joined PricewaterhouseCoopers and worked there for over 3 years. She joined Onpress as a recruiter and consultant 3 years ago.


In China's fast growing economy, private or the so-called Minying companies are playing a more and more important role. They are occupying a bigger part within the whole economy, and some of them have entered or are going to the international markets with their products and services.

As long as these companies develop, their needs in relation to human resources is increasing, especially when they intend to be internationalized. They therefore begin to look for outside help, i.e., recruitment firms, to assist them to recruit talents and to achieve the companies' development needs.

Through our experience of working with Minying companies, we find that some traits of Minying companies have become the obstacles to their future development in the HR field.

Generally, there are 3 relevant points:

The first issue is that Minying companies tend to ignore the importance of professional recruiters, which can lead to the result that these companies usually cannot find effective ways to recruit talents into their ranks. For instance, a boss of a Minying company would like to pay a candidate an annual package of Rmb500K, but less than Rmb5K for the recruitment of this person. Due to such concepts, their tools for the recruitment of talents are limited to newspaper/internet advertisements, or using non-professional but low-cost companies. One can imagine the possibility of a candidate valued at Rmb500K per annum looking for a job through a newspaper advertisement?

The second issue is that most Minying companies do not have any long-term talent development plans. We have assisted some Minying companies recruit senior positions. We notice that they usually provide a very high job title, i.e., VP, GM, Director, but don't have any long-term strategies towards the positions they are recruiting. This lacking in a training and development strategy usually causes the appointed candidate to leave only after a short period of time.

The last issue is that many Minying companies do not have an established HR system. There are no effective staff recruitment, training and evaluation policies to follow. This can result in a completely waste of resources.