Canadian HR delegation takes peek at China’s evolving HR practices
In October and November last year, a team of Canadian HR professionals visited China through the People to People Ambassadors program — a program established in 1956 under the leadership of former United States president Dwight Eisenhower.
It marked the first time Canadian HR professionals had participated in the program and the delegation included senior HR practitioners from across the country. The group travelled to Hong Kong, Beijing, Guilin and Shanghai where we had the opportunity to examine population demographics, organizational development, recruitment and retention, the impact of supply and demand demographics on business, total compensation structures, cost of living and standard of living, learning and development infrastructures, the impact of geographic location and the supply of a skilled workforce in China — and the overall relevance to Canada.
North America — advanced people management
In North America, the business of people management has existed for many decades. It has evolved from an industrial relations model to an administrative management model to a strategic model leveraging organizational effectiveness.
We have many practices that work very well and, by the same token, many practices that have evolved into a complex web of taxing bureaucracies rooted in serious inefficiencies. We sport layers upon layers of complex legislation, regulations and rules that often have competing objectives. As a result, it is becoming increasingly difficult for businesses to operate efficiently under this system.
China — emerging market in people management
In what was described by our team as the “land of opposites,” we had a rare opportunity to get a glimpse into the vast land, immense diversity, ancient traditions and ultra-modern society that is China.
It’s common to see high-end cars zip along crowded streets, passing old rusted bicycles carrying various wares to market. The contrast between the two is striking, an interesting mix of commerce under communism.
Companies in China are now beginning to instil a corporate spirit and sense of community among workers. This clearly demonstrates the universal appreciation that a happy workforce is a productive workforce and, in turn, is good for the bottom line.
Our delegation visited seven different organizations and educational institutions that offered a unique view into the complex business world of China. Make no mistake about it — China is a force to be reckoned with. The people of China embody a strong sense of community, have strong family values, take great pride in their country and have a daring, entrepreneurial spirit. HR practices in many Chinese organizations are highly sophisticated and are evolving at such a rapid pace China may certainly achieve strategic HR across its companies and organizations before its Canadian counterparts.
The following is a brief overview of some of the organizations and educational institutions we visited:
Professional HR associations: The HR Association for Chinese and Foreign Enterprises has many Fortune 500 companies as members and is strategic in its ability to leverage communication between business and government, even providing input on new labour laws. It has developed a certification model for HR professionals and is facing many of the same opportunities and challenges Canadian HR associations are experiencing — growing memberships and difficulty engaging senior practitioners, to name a few.
Consulting firms: The Value Added Consulting Firm as well as the China International Intellectech (Shanghai) are examples of consulting firms that are evolving and prospering. They offer a wide range of sophisticated, innovative, progressive and forward-thinking methodologies that provide clients with highly developed professional services and technical savvy to maintain a competitive advantage in China, and beyond.
Private companies: Firms such as Taikang Life Insurance and Yanjing Li Spring Beer know retaining a talented workforce is the key to success. They use sophisticated compensation and bonus programs, as well as pension, benefit and leave programs, in rewarding top talent. Both companies have an impressive track record under rapid expansion and development and have experienced mergers, acquisitions and cultural transformation.
Academic Institutions: Schools such as the Guangxi Normal University and the Shanghai Normal University struggle to keep up with the demand for HR development, experienced instructors and curriculum development to meet rapidly changing business needs and requirements. Remarkably, many programs have only been in existence for less than five years, which again is a testament to the Chinese capacity for vigorous development and implementation.
The impact of China’s ‘one-child policy’
China’s “one-child policy” has had a dramatic effect, resulting in a serious imbalance in demographics. This issue will have a long-lasting ripple effect on the population that will be felt around the world, affecting family units, organizations, educational institutions, companies and countries.
Traditionally, the male child cares for the aging family, so male children have been preferred by many Chinese families. Vast numbers of female children have been adopted by families outside of China. This lopsided demographic will present significant challenges to China in the years to come.
The one-child policy has also resulted in the development of Western-style expectations among the younger generation. As parents devote all their love, attention and financial resources to their one offspring, this has led to a generation of “little emperors.” So companies in China, the U.S. and Canada will have the same challenges in motivating and retaining young talent who have high expectations and demands.
The role of China’s government
Much has been said, speculated and written about China’s communist regime. While undoubtedly no government is perfect, we experienced a genuine desire by the government to improve the quality of life for its people.
Enhancements such as national wellness strategies, improved labour laws and increased education will enable China to maintain its increased presence as a dominate world leader. By the same token, the government also has the capacity to enact large-scale change, such as cleaning up the highly polluted Li River by closing all the factories along the river.
All of these factors — supply and demand, demographics, government regulations and organizational development — are entwined in economic development, company profitability and HR management practices. They form a web of complex factors that have remarkably similar features clear across the globe.
Diane Wiesenthal is vice-president of people and organizational services at the Canadian Wheat Board in Winnipeg. She is a past president of the North American Human Resource Management Association, the Canadian Council of Human Resources Associations and the Human Resource Management Association of Manitoba.
An international development opportunity for HR professionals
In October of 2009, I will be leading another Canadian HR delegation — this time to Vietnam and Cambodia. For this program, we are expanding the team and offering this as a professional development opportunity for HR practitioners. (The costs will be incurred by the participants and more information will be available through HR associations.)
The intent is to use the same mission program established for the 2008 mission to China, comparing data and information on HR practices from leading nations’ perspective (the United States and Canada) to an emerging region (China) to a developing region (Vietnam and Cambodia).
This is a unique opportunity to see the global evolution of the HR profession through various economic regions influenced by different political, social and cultural environments. These factors influence how families operate, how communities operate, how countries operate — and how organizations operate within this larger societal environment.
At the root of all human existence lie our basic fundamental human needs. That is the key to organizational success — and our challenge is to put the “human” back in human resources while at the same time ensuring HR adds value to the business.
The 2009 mission will examine HR activities in a developing region. When we weave all three components together (leading, emerging and developing) we will be able to share some important information with the business and HR communities in Canada and the U.S.
Provincial HR associations will communicate more information to members. For additional details, visit www.citizenambassadors.org.
