Considerations When Hiring Your Next Regional HR Leader in China

China is becoming an increasing popular place to base regional headquarters. In the last ten years we’ve seen prominent multinationals like IBM, Honeywell, General Electric and many others shift their key regional decision makers into China. However, Singapore and Hong Kong continue to possess the lion’s share of regional decision makers in the Asia Pacific Japan region, and Tokyo, Sydney, Melbourne, Mumbai and Bangalore also have a, albeit smaller, collection of regional headquarters. But it is China who has seen the biggest year on year increase in senior regional functions of any market.

In this article, Garrett Weiner, Associate Director of The Chapman Consulting Group for Hong Kong and China, looks at practical considerations multinational companies should take into account when hiring a Regional HR Leader in China.

Everyone Wants to Localise

Most Global HR Leaders, when wanting to appoint a Regional HR Leader in China, aspire to attract a Chinese national who can take up the role. This minimises both the expense of having to relocate an HR practitioner within the company from another location and also the danger that an expatriate may not assimilate into a China-based role.

Indeed there is a growing pool of regionally experienced Chinese HR Leaders, some of whom have already completed HR assignments elsewhere in China or outside of Asia. These individuals are highly sought after and the demand outstrips their supply, especially for exceptional individuals. To increase your chances at attracting and retaining such talent, requires that you are able to fully and effectively articulate your company’s value proposition in the competitive talent market, and be realistic on the type of person you can attract.

Salaries are Rising

Some multinational companies look to base their Regional HR Leader in China because they see this as being a cheaper location than, say, Hong Kong or Singapore. However, salaries are rising and often the position will be remunerated even higher in China than these other locations. This is especially the case if housing or expatriate benefits need to be paid to attract the right candidate.

Cross-check your hiring budget for the position with your search consultant, market surveys and also with the salaries of the higher calibre candidates you are interviewing.

Expatriate Packages are Still Very Common

Chinese HR talent coming from within China, but outside of Shanghai or Beijing, who need to be based in either of these two cities, will generally expect housing assistance and sometimes other benefits, especially if they are of Regional HR Leader calibre. Internationally experienced Chinese talent, sitting outside of China, and who are being tempted to return, will also often request expatriate packages.

Foreign talent in China, either from other parts of Asia or from outside of Asia, will generally expect expatriate packages. Such individuals who are willing to take local packages or local-plus packages obviously make themselves extremely marketable.

Expatriates are in China for a Reason

Companies wanting an international standard Regional HR Leader often find that if they cannot attract an exceptional local Chinese HR Leader, rather than compromise on quality it is more appropriate to bring in an expatriate from within the company from global headquarters or elsewhere in the world. Such an individual will be brought in for a fixed term assignment, usually with the key goal of identifying and training up their successor as soon as possible.

Mandarin speaking HR talent, especially from Singapore and Hong Kong but also Malaysia and Taiwan, are popular in China on the strength of their regional experience and language skills. However such individuals can be expensive, especially from Singapore and Hong Kong, due to the tax differential of these countries in comparison to China.

Smart Companies Hire Early

Forward thinking multinational companies are identifying their future Regional HR Leaders in China when the individuals are still at a mid-level, sending them abroad into the US, Europe or even other parts of Asia to develop their regional or international experience. Such individuals can become highly sought after by other companies, so it is important to have a robust talent management strategy to ensure the retention these high performers until they are ready for the Regional HR Leader position.

Conclusion

The development of the HR profession in China, especially Regional HR Leaders, is exciting to watch and we are seeing the calibre of regionally minded Chinese HR increasing rapidly. However, international corporations hiring Regional HR Leaders in China need to recognise that finding and attracting the best calibre HR talent is markedly more complex than established regional locations like Singapore and Hong Kong. Smart hiring decision makers must therefore be realistic with their expectations when hiring a Regional HR Leader in China and ultimately weigh up the merits of a local versus an expatriate, giving considerable attention to both ability and cost. ​