Recruiting in China

Substantial challenges exist identifying and recruiting the right high-tech telecommunications staffing talent in the Chinese market. In fact the need for high tech telecommunication leadership talent, for example, has produced a staffing gap in China that no longer remains balanced. Many view China's immense market as the long-unchanging high tech industry's biggest promise for growth. "Therefore it is critical that companies have a full understanding of their particular stage of globalization and seek to recruit the right leadership talent for that stage" (Luo, 2007, p. 1). Different needs develop at different stages of globalization. A comprehensive strategy for the acquisition of a company in China will prepare the expected audit of HR systems. "I define 'strategic staffing' as the process of identifying and addressing the staffing implications of business plans and strategies, or better still, as the process of identifying and addressing the staffing implications of change, " (Bechet, 2000, p. 1). Challenges to the strategy might arise because of this acquisition--that include unequaled cultural and regulatory factors. This prepared staffing strategy should help make the Chinese acquisition a flourishing investment undertaking for each entity.

It is imperative to associate the company objectives with the globalization concept when considering a staffing strategy. Objectives will prove easier since China has entered the World Trade Organization in 2002. Plus, its continued liberalization of rules governing foreign investment can ease the transition. A difficult challenge remains comprehending exactly where Chinese operation stands according to corporate evolution; then, staff must be recruited to match. Awareness of this fact will prevent detrimental stumbles. A lot of companies in China's market today find themselves at this beginning development stage. "Indeed, with surprising frequency, foreign companies operating in China have tended to make identical hiring mistakes at each stage of evolution of their operations there" (Luo, 2007, p.1). The company must deliberate if a candidate succeeded at a company at a like developmental stage. The company realizes a general manager candidate must do what it takes to close a deal. Human Resources must also realize that present relationships a general manager candidate might bring to the job might not be of much value. Much of this results from important clients altering their inner decision-making dynamics. At a testament to this realization, three major Chinese telecommunications companies replaced CEO's in 2004 (Luo, 2007). This fact, alone, could cause middle management modifications. Another consideration includes, "general manager candidates who are accustomed to working in a multinational environment with far more advanced supporting infrastructure and whose core competency is to mange resources may find it a stretch to produce results-oriented, hands-on salesmanship" (Luo, 2007, p. 1).

While recruiting and staff of employees proves challenging in any market, it proves especially so in China since there is a deficit of management and executive talent (much of the labor shortage due to the lack of pragmatic training). "Under the pressure to move quickly in China, companies must resist the temptation to hire leaders who appear to be candidates generally but who lack the specific skills required for success at the company's particular stage of globalization" (Luo, 2007, p.1). The management of human resources and incorporating the present talent from the two companies in the acquisition might prove challenging. Without a doubt, ineffectual management consolidation may significantly influence the company's vision. Human Resources must reduce the distance between gaps in the two companies, both culturally and geographically. The merger will realize the challenge of differences in business cultures and practices. Realizing all these factors, HR strategy employs a sponsored-mobility approach. When considering staffing, career, and succession systems in respect to "sponsored versus contest mobility norms" Rosenbaum found a "sponsored-mobility approach stresses the early identification of talent. Firms following this norm attempt to benefit from the efficiencies of specialized training and socialization by providing high-potential candidates with challenging assignments and other opportunities believed to be conducive to employee development" (Dreher & Dougherty, 2001, p. 25). China creates a great challenge since the cultural differences (language, particularly) obviously remain immense. Additionally, interaction with leaders in China proves limited.

Not uncommon in other countries (like Czechoslovakia; for example), the Chinese people see those they work with as part of the family—extended. The "personal" element comes much more into play: the manager finds himself (or herself) looked up to like one would an older brother or sister; sometimes giving guidance on personal matters (even performing personal "undertakings." In contrast, this type of behavior in America may be construed as "playing favorites" or unjust exaction. The complexity of this personal employee relationship in conjunction with the context of the workplace must remain at the forefront of Human Resources staffing considerations. In reality, this sort of workplace extended-family culture often precipitates business agreements. Additionally, though, this type of employee/employer relationship construction may produce organizational structure changes.

In the vein contrasting cultures, regulatory factor differences must be regarded. As mentioned previously, China's World Trade Organization status has allowed ameliorated foreign approach—particularly to the service sector (most regulated) in China. This fact, in itself, has granted additional participation in financial, telecommunications, professional services, insurance, etc. A lot of mix-up abounds concerning China's obscure 2001 Labor Law; which creates many ways of reading it from each side. A challenge lies in establishing clear guidelines for each side (since labor regulations appear lacking). Complications arise in staffing a multinational enterprise due to political, economical, legal, business, as well as cultural implications. The effectiveness and acceptability of Human Resources management rides on these factors. The company attests exhaustive cognition of Equal Employment Opportunity policies and their application in the acquired workplace. In this time of war, HR remains cognizant of final regulations clarifying the responsibilities of employers of military veterans according to the Uniform Services Employment and Re-Employment Rights Act of 1994. The law requires employers to reinstate returning service members within two weeks after they apply for reemployment. Returning veterans must be afforded the status, seniority, and pay they would have attained had they remained continuously employed.

Additionally, usually, staffing policies for the host country won't come written with the vantage point of the parent's. Arun Kottolli in "International Staffing Strategy" makes a fine point when he realizes, "Often this tends to be parochial and ethnocentric resulting in tensions between parent and subsidiary management. Often the subsidiary management will not directly point at the problem in the company's HR policies, especially if the policy was written by the 'headquarters.' As a result real reasons are not noticed until it is very late" (p. 1). Ohme in his book, "Borderless world," argues that companies should do away with the "headquarters" mindset and appropriate subsidiaries more freedom. "This freedom is more important in framing HR policies. The main point companies must learn that the HR policies followed at home may not be applicable in the host country" (Kottolli, 2007, p. 1). Human Resources will need to study the regional market circumstance and ply to it. It would behoove the company to take in major executives of the acquisitioned business to join the parent's top management. Current Human Resources polices must change since their policies don't apply to the company acquired.

Establishing loyalty and bonding between both companies starts with an internal recruiting procedure. Even entry level jobs will have a title, as Chinese culture ascertains the prestige of such. This will aid in appealing to potential recruits. However, the title significance could bring about organizational structural changes. The facilitation of early staffing will prove easier with the availability of an intranet Web site. Potential job candidates may view job postings on the Internet, various international newspapers, university/college newspapers and collegiate bulletin boards. An appraisal questionnaire assesses fundamental skills, while the application provides needed information for Human Resources (enabling a selection process). Then, HR can select candidates after an interview. They will not allow the candidate's nationality to blind their decision concerning the best candidate for the position. Selectivity in recruiting remains paramount. "Hiring the right people means more than just securing employees who possess the knowledge, skills, and abilities required to perform a particular job; these people must also be able to acquire new knowledge and skills as jobs and environments change. In addition, employees must find that the work is satisfying and that the overall organizational climate and reward structure meets their needs" (Dreher & Dougherty, 2001, pp. 10-11).

From past foreign acquisitions, history shows a large degree of expatriate applications—producing a good mix with internationals. The lack of skilled management in China assures many expatriate applications. The labor shortage in China should produce a great number of young applicants (especially at the collegiate level). To direct the foreign subsidiary, Human Resources will appoint a home country national to build the parent company's corporate culture in the adjunct. "While this reduces the communication between headquarters and the subsidiary and increased control by the headquarters, this policy has serious disadvantages. The cultural differences and environmental differences will be huge and expatriates may not be able to cope with. Thus resulting in costly management mistakes" (Kottolli, 2007, p. 1).

Human Resources considers the staffing strategy in as a longer-term context. And within this context, increased effectual shorter-term staffing determinations prove ascertained. This near-term aim might gain the attention of managers finding themselves assessed by and rewarded for attaining shorter-term targets. "Because it helps define appropriate short-term actions, it is more likely that the same line manager making the
staffing decision will still be in place to rap the benefits of that decision later on" (Bechet, 2000, p.1). The staffing focus will not remain on implementation concerns. Human Resources will deal with staffing from a planning perspective that's proactive. Those staffing realize, "staffing constraints (e.g., an inability to recruit a sufficient number of individuals with critical skills) may impact the company's ability to implement its plans. These constraints should be identified and addressed as part of the planning process, not left as surprises to be uncovered when implementation begins" (Bechet, 2000, p.1). No long-term staffing strategy proves necessary Human Resources may fill a job position internally (comparatively quick). This, too, saves time and resources. Top managers the company acquires from the acquisition could prove the most valuable asset: they know the market.

Human Resources often spends too much time on data and tables—devising reports and other staffing-related information (often the volume of planning data). For the merger of the acquisition staffing, the focus remains on acting and planning—not just reports. For example, if "you reallocate staff because of something you discern from a data table, then that data has become information. When it comes to staffing, make sure you provide managers with information, not data. If your reports provide managers with data that is simply 'nice to know' or 'interesting' but doesn't directly influence decision making, don't provide them" (Bechet, 2000, p.1). As result, organizational effectiveness increases remarkably. However, Human Resources realizes the extreme importance of auditing HRM practices and departments. "Finally, we bring to your attention a concept refined in the writing of Devanna, Fombrun, and Tichy: the evaluation of the HR function by way of the human resources management audit (HRMA).22 Any audit is typically considered to be a first step in an improvement or change effort" (Dreher & Dougherty, 2001, pp. 30-31).

Additionally, effective training and development proves paramount to increasing organizational effectiveness. English remains at the top of the list of those training and developmental programs. Writing for business, job-specific training, and skills in presentation top the list. Available training exists for retained management in both companies—classes ranging from managing resources, leadership, coaching, and stress and time management. A focus lies in cross-utilization and cross-training. Another perspective of training and development demonstrates orientation "driven by the need to be flexible and able to utilize employees even during times of production slowdowns. When people are able to perform multiple jobs, or are multiskilled, they represent a reserve of talent and are more likely to appreciate how their work and output levels affect the work of other employees in jobs related to their own...times when multiskilling is important and times when it is not" (Dreher & Dougherty, 2001, pp. 14-15). Human Resources will offer an overall understanding of Chinese business patterns and culture to all employees at both companies facilitated through simulations, as well as face-to-face. Human Resources realizes they, "must temporarily forget the old colonial model that often underpinned the multinational stage in which the parent company simply tries to reproduce itself on foreign soil, often transplanting managers from the home country in order to ensure that copy is accurate" (Luo, 2007, p.1). Human Resources will recognize its own strengths and weaknesses. And it will look for candidates for training and on-the-job experience to satisfy its own skill gaps. Despite cultural difference, HR has a working comprehension of the significance of gender in the work environment and overall development. They ensure the consideration of cultural averages in delineating actions and outcomes developed by the team.

First, HR defines the staffing levels and sum of employees needed (and their capacities) for strategy implementation. Staffing resources presently available require assessment. The strategy (through plans and action) will close talent gaps. "Successful implementation of a strategic staffing process lies no in how these basic steps are defined. The 'devil is in the details'—or perhaps more appropriately in this case—the devil is in the implementation. It is not the steps themselves that are important, it is how they are developed and implemented that counts" (Bechet, 2000, p. 14). Part of the equation does not include predicting future staffing. Simply, a context for decision making proves paramount. Again (as previously mentioned) emphasis lies in proactiveness—a planning perspective. HR wants the implementation of its strategy to result in the new Chinese acquisition taking on the status of a prospector firm. "Prospectors attempt to be the first to market with new products and services. These firms rely on innovation, flexibility, and speed. They exploit new market and product opportunities" (Dreher & Dougherty, 2001, pp. 9-10). HR also realizes the paramount nature of strategic perspective: that staffing needs prove optimally met in manners that call for some beforehand preparation. An approach under consideration includes contacting graduate students to develop a relationship with them before their job market availability. These contacts might include internships, as well as a series of presentments. The development of these contacts should increase the likelihood of the graduate student working for the company at school's completion. Staffing strategy will remain constant—an ongoing process (not just a yearly thing: implemented and updated regularly). Additionally, it may prove wise to integrate scenario planning into strategic planning. Each scenario could have dissimilar staffing entailments. HR will ascertain which scenario might occur and determine staffing plans accordingly. To cover this approach best HR assesses staffing requirements for every likely scenario. Then, look for things the scenarios have in common.

In summary, "China's talent gap will not be solved in the short term. In fact, it is likely to get worse before it gets better. Therefore it is critical that companies have a full understanding of their particular stage of globalization and seek to recruit the right leadership talent for that stage" (Luo, 2007, p. l). Human Resources realizes the different needs of a company at different stages of globalization. In order for an effective implementation strategy the newly expanded company (whose revised strategy has resulted in an acquisition in China's market) masters the significance of the connection between business objectives and the concept of going global. Tremendous stakes remain possible. The liberalization of rules governing foreign investment has enabled better business transactions with the country. A comprehensive strategy for the acquisition of a company in China will prepare the expected audit of HR systems. Challenges to staffing strategy may transpire because of this acquisition. These include unequaled cultural and regulatory factors. This prepared staffing strategy should help make the Chinese acquisition a thriving investment project for each company. Though staffing and recruiting of employees proves challenging in any market, it proves especially so in China since there is a deficit of management and executive talent—a lot of the labor shortage because of the deficiency of practical training. Human Resources must lessen the distance between gaps in the two companies on both the cultural and geographic levels. The merger will actualize the challenge of conflicts in business cultures and practices. Knowing all these factors, HR strategy uses a sponsored-mobility approach. The complexness of the Chinese personal employee relationship in conjunction with the context of the workplace must remain at the forefront of Human Resources staffing considerations. A lot of confusion exists about China's vague 2001 Labor Law. Many interpretations abound from each side. Another challenge lies in laying down clear guidelines for each side as result of lax labor regulations. Human Resources looks at the staffing strategy in as a longer-term context. So, within this context increased sound shorter-term staffing decisions prove ascertained. Difficulties develop in staffing a multinational enterprise as consequence of political, economical, legal, business, and cultural entailments. The effectiveness and acceptability of Human Resources management depends upon on these factors.

Written by DG Farnsworth

THE “global war for talent”, which became the byword of human resource (HR) management in the 2000s, appears less urgent as unemployment surges in the wake of the world recession.

Jobless rates in the Euro zone and the United States surpassed 7% at end-2008, and will approach double digits in 2009 as companies slash their payrolls.

Unemployment rates in the BRIC (Brazil, Russia, India and China) countries and other emerging markets are also rising, creating worker surpluses in what were recently tight labour markets.

The weakening of the global labour market affects a broad spectrum of industries and occupations.

Attention divertion

Under these circumstances, corporate managers have a strong temptation to divert attention from the global war for talent (driven by competition for skilled employees amid labour scarcity) to downsizing of the workforce (impelled by falling output and declining revenues).

HR management becomes a target of discretionary spending cuts as companies struggle to boost flagging earnings.

HR managers face a weaker imperative to retain talented employees, whose bargaining power and job mobility have diminished in the slack labour market.

Companies that yield to short-term disturbances in the global labour market risk losing their long-term competitiveness.

The structural factors underpinning the war for talent remain intact despite the economic downturn:

Globalisation heightens the importance of human capital as a competitive asset, particularly for companies based in high-income economies that rely on productivity gains to neutralise the labour cost advantages of emerging market competitors.

Demographic patterns clearly point to future labour shortages in North America, Europe and developed Asia, where fertility rates are low and aging workers are approaching retirement.

The increasing technological content of global services and manufacturing raises the premium on highly-talented employees, who enjoy high international mobility and multiple professional options.

Deficiencies in production of university-trained scientists and engineers in Western countries widen gaps between workforce capabilities and enterprise requirements, compelling many American and European companies to tap the labour-rich emerging markets for skilled workers.

The entry of growing numbers of Generation Y members into the global labour market in coming years raises new challenges for corporate managers, who must compete globally for talented young professionals bringing different values and expectations into the workforce.

Nothing in the current economic downturn indicates a diminution of these long-term drivers of the global labour market.

Accordingly, companies that sustain investments in human capital during the recession will enjoy a strong competitive advantage over companies that neglect HR management.

The traditional model of HR management focuses on administrative functions – application processing, benefits, compensation benchmarking, dispute resolution, employee grievances, performance review and rules compliance.

HR professionals typically spend the bulk of their time absorbed in these day-to-day tasks, disengaged from the organisation’s broader objectives.

The HR curricula of business schools reinforce this tendency, producing HR professionals well trained in administrative processes but lacking a firm grasp of the links between human capital and corporate strategy.

The HR profession is undergoing a migration from this tactical model to one that treats HR management as a core strategic activity.

Graduates of elite MBA programmes, who previously shunned unglamorous HR jobs to take positions in corporate finance or management consulting, are now pursuing HR careers.

Factors driving new HR

Several factors are driving the rise of the new HR:

Growing recognition by senior executives of the centrality of human capital in corporate strategy, especially managers of companies situated in global industries where strong HR management is a competitive differentiator.

Increasing complexity of global HR management, which demands HR professionals able to recruit employees with varied backgrounds and to navigate diverse geographies and cultures.

Exhaustion of productivity gains from investments in new plant and equipment, which heighten the importance of high-quality workers as drivers of productivity growth.

Expanding opportunities for outsourcing of HR functions (e.g. benefits administration) that free up corporate resources to engage the strategic dimensions of human resource management.

Changing attitudes toward work by Gen Y individuals, whose recruitment and retention require an integrated approach to professional development and careful attention to the entire employee “life cycle”.

These factors heighten demand for HR professionals possessing a strong strategic acumen, a global perspective, an embrace of workforce diversity as a competitive asset, and a capacity to identify and develop rising stars in the organisation.

They highlight the need to align HR practices with labour force dynamics: e.g. forecasting future workforce requirements; assessing leadership pipeline trends; and devising performance metrics that address both the “hard” and “soft” skills of employees.

And they underscore the imperative of continuous and visible engagement in HR management by senior organisational leaders – articulating the links between human capital development and corporate strategy; mentoring and coaching young employees with leadership potential; surmounting organisational silos to expand lateral opportunities and optimise deployment of the company’s human assets.

HR management in a global recession

Investments in human capital are not likely to be a high priority for companies whose very survival is threatened by the global downturn. But for companies with strong balance sheets and compelling business models, the economic downturn presents important opportunities to strengthen their HR management capabilities and position them for the inevitable rebound:

Utilising slack time to engage employees in professional development and technical training programmes, which serve both to sharpen skills and to preserve morale during tough times.

Opportunistic hiring of talented individuals caught in downsizing at weaker enterprises, which augments the company’s human capital base for long-term growth.

Promoting cross-divisional and cross-functional collaboration, which improves utilisation of HR and encourages teamwork between employees who previously had little or no contact.

Redefining and expanding spheres of authority and responsibility of star employees, which permits assessment of the leadership potential of individuals who may eventually occupy executive positions in the organisation.

Few companies are escaping the fallout of what now rates as the worst global economic crisis since the Great Depression. As a result, even robust enterprises are downsizing.

How companies manage downsizing is an important component of HR management.

Generous treatment of departing workers – including high-quality placement services and severance packages – not only creates goodwill among former employees who will speak favourably about the company and who may indeed return as “boomerangs”, it also burnishes the company’s image as an attractive workplace and thereby strengthens its capacity to recruit and retain talented persons when the economy recovers.

The recession we’re in will have long-run consequences for employment and consequently recruiting. The world is about to see the biggest increase in unemployment in decades. The World Bank and the IMF predict that global trade will contract at the fastest rate since 1930 and global economic output will drop for the first time since the Second World War. Employment is a lagging indicator of problems in the wider economy, so unemployment will continue to rise even if economies start to recover today. The consensus estimate among economists is that in the developed world average unemployment will exceed 10% before the end of 2010.

There are glimmers of hope. Inventories have fallen to such low levels that production will have to be increased just to meet the current level of demand. The fall in consumption is beginning to level out. In the U.S., auto dealer and homebuilder surveys are heading up. Japanese automakers have announced production increases. A broader indicator of an upturn — JPMorgan’s global manufacturing index — posted a second consecutive gain in February, and its new-orders index is rising. A realtor friend just wrote that she has five closings this month. 5. F-i-v-e. 5. Way to go.

What Will Emerge?
Regardless of when we emerge from this situation, there are some major changes in the employment landscape that will change recruiting in terms of where it occurs and how it is done. Where recruiting occurs will depend on where there is growth — somewhat debatable but getting clearer. Where it will not occur is in finance and housing construction; they will not return to past levels for a very long time. Also, if you work in an industry that’s heavily dependent on exports, then don’t expect an upturn either. Domestic demand is also falling overseas, and countries will increasingly strive to protect their domestic industries, further reducing the need for imports.

Where?
A recovery will be weak: losses in asset values and the need to reduce debt will all but guarantee that. But there will still be pockets of growth. These will be largely in infrastructure, IT, education, healthcare, government, and energy.

Infrastructure will be an early winner because so much stimulus and other funds are being directed at it — not just in the U.S. but also overseas. In particular, India and China are channeling billions of dollars at infrastructure projects to both boost employment and enhance economic activity. That means industries that support infrastructure — heavy equipment, architecture, cement, safety equipment, etc. will see near-immediate upturn in demand.

IT and engineering are perennial job creators, and will remain a source of employment for recruiters. For the simple reason that supply cannot match demand, a problem that will be exacerbated by restrictions on companies receiving stimulus funds from hiring foreign workers. This gap is even wider overseas. In India and China, compensation in IT is estimated to increase this year by 11% and 8% respectively because of the extreme shortage of qualified professionals.

Education will see jobs growth because of three factors: 1) large cohorts of teachers reaching retirement age; 2) a massive expansion in funding for education and student aid in the current federal budget; and 3) large increases in enrollment in higher education by people unable to find work.

Healthcare is another engine of job growth. Enough has been written elsewhere on the shortage of nurses, doctors, etc. that it doesn’t need to be repeated here. The U.S. Bureau of Labor Statistics also predicts an increase in social services jobs as a swelling number of retirees check-in for medical care.

Government payrolls at the federal level will swell to accommodate the administrative needs created by the vast expansions of regulatory authority being proposed — over banking, transportation, education, labor, and healthcare. The situation is likely to be the opposite at the state level where most states find themselves facing huge budget shortfalls.

Energy in general and green energy in particular will see significant growth. Biofuels, wind energy, and solar all will benefit from new investments and tax incentives. Consequently jobs that are related — research, infrastructure, maintenance, and sales can expect to benefit. However, the number of jobs in these industries is small to begin with, so the overall impact may not be much.

Interestingly, much of the increase in employment is expected to occur in small businesses and startups. One impact of a recession is that more people start businesses because they can’t find work. With expansions in federal grants for some of the above industries, expect to see a lot of new companies emerge. Also expect to see geographical shifts in areas of employment growth. California and New York continue to shed jobs as employers move away because of high taxes and burdensome state mandates. The beneficiaries are many Midwestern and southern states that have low taxes and fewer restrictions.

Recruiting will become more difficult in this new landscape that emerges. Unemployment is not evenly distributed, and for many of the industries mentioned above there is not an abundance of unemployed talent. The employed are also less interested in changing jobs in an uncertain economic climate and will likely remain so for years. Finally, mobility for many is restricted by their inability to sell their houses. Many people will be forced to delay retirement, but that will not solve the supply problem. Many of the new jobs that will be created cannot be easily filled with skills available in the current labor pool.

How?
Changes in how recruiting is done are harder to predict, but some trends can be discerned. Given that a recovery will be weak, employers are more likely to turn to part-time and contract recruiters than have full-time staffs. This will be reinforced because much of the growth in jobs is expected to occur in small and medium-size businesses that have no need or cannot support full-time recruiters. An increase in needs for sourcing, as opposed to full-service recruiting, will occur as employers seek to minimize costs.

Technology will need to adapt. The major boards are not designed for use by the occasional recruiter. It’s likely that products and services targeting small-businesses will be where we see most changes in recruiting technology.

The Legend of the Phoenix
What we’re experiencing is known in economic theory as creative destruction. Jobs are destroyed and new ones emerge. In the past it has been a somewhat gradual transition, but not this time. In past downturns the mood has never been so sour. In 1990 and 2001 most saw the recession as a slow-down, a readjustment, perhaps even a necessary realignment of the business cycle — something to be concerned about not a lot. The future was bright. After all, this is America. But this time is different. It shows up in many little ways. Several people I know have asked that we use Skype to talk to lower their phone bills; that they’ve cancelled their magazine subscriptions and only read online; that they’ve changed their home page from CNN to the BBC because there’s less negative news. Larger numbers of friends than I’ve ever seen are online late at night and available to chat. Someone I know to be an eternal optimist wrote to me that the American dream was an illusion and they don’t believe it in any more. Much has gone wrong if it has come to this.

This time it’s like the legend of the Phoenix. It lives for a thousand years and once that time is over, it builds its own funeral pyre, and throws itself into the flames. As it dies, it is reborn and rises from the ashes to live another thousand years. We’re at the end of the thousand years.

Times are tough. Even those companies that are doing reasonably well are cutting their recruiting teams by a minimum of 30% to a maximum of 90%, and tightening up expenses to the absolute barest minimum.

Half of these cuts are probably necessary anyway, the balance most likely an overreaction to the dismal economic conditions most companies are now facing.

There is an expectation that along with the cuts these recruiting departments need to drastically improve their productivity by 30%-50%, almost overnight.

The good news is that while most corporate recruiters are working hard, the majority are not working smart.

As a result, getting 50% or 100% productivity gains isn’t that hard to do. With this in mind, here are some things recruiting leaders can do to increase overall productivity by at least 100%.

An Almost Endless Stream of Ideas on How to Increase Corporate Recruiting Department Productivity by Over 100%
Only hire recruiters who are, or can become, partners with their hiring managers. Recruiters who are partners with their clients get more time to discuss real job needs, they send out fewer candidates, make more hires, and overcome natural hiring manager resistance to see top candidates who don’t fit the bill on paper. Partners make twice as many placements per month than recruiters who are perceived as vendors to their clients, so this is a huge productivity opportunity.
Make sure your recruiters are competent to do the work assigned. One way to increase productivity is to ensure all of your recruiters are as good as those in the top 10% on your team. (Contact me if you’d like to check out our new online recruiter assessment tool we’ve created with Profiles International.)
Make sure every recruiter understands the jobs they’re filling. Sadly, most recruiters don’t know much about the jobs they’re representing. Whether it’s a call center in Chicago, a sales rep in San Jose, or a J2EE architect in Ashtabula, recruiters need to know what drives on-the-job success, why the job is critical to the company, and why a top person should consider it.
Make sure your recruiters totally understand their target market. Recruiters need to be subject-matter experts regarding the job, the industry, and especially the needs of their ideal “target” candidates. Creating candidate personas is the first step, including demographics, associations, first- and second-degree networks, conferences, recognition awards, academic connections, and motivating needs. This allows them to write compelling ads, post them in the best places, know exactly who to call, what to say, how to get great referrals, and how to convince the best people your job is the best of the bunch.
Make sure your recruiters know how to recruit. Recruiting means getting more candidates interested at the beginning, ensuring that few drop out in the middle, and 95% of all offers are accepted on fair terms. Effective applicant control is at the core of this and most recruiters don’t even know what this even means. Do you know how many candidates you’ve lost because your recruiters dropped the ball somewhere in the process?
Make sure your recruiters are respected by the candidates they represent. If recruiters aren’t seen as subject-matter experts and career advisors by their candidates, you’re losing some great people before the process even begins. You’ll get a good sense of this by calculating how many “A” level candidates your recruiters uncover and place on a typical search. If it’s not 70% or more, you’ve found a huge productivity improvement opportunity.
Make sure your recruiters can accurately assess candidate competency. Recruiters should be able to get this right 80% of the time with a 30-minute performance-based phone screen, at least to the point of not embarrassing themselves by recommending a totally unqualified person. Think of the time wasted sending out a candidate who shouldn’t be seen in the first place.
Make sure your recruiters are tough-minded, confident, and persistent. The best recruiters don’t take no for an answer, they defend their candidates from superficial assessments, and they close on career opportunities more than money. These recruiters are 2-3 times more productive than those who cave at every negative. Double your team’s productivity by making sure your recruiters are those who don’t give up without a fight.
Manage time. Cold-calling people you don’t know is a big time-waster. Calling people who are good who will call you back is an ok thing to do if a great ad didn’t work. A sequenced sourcing strategy based on the “low-hanging fruit principle” of selling should be established for every search assignment. Then, measure your recruiters on qualified sendouts/hour to start finding out where your team is wasting its time.
Don’t let your recruiters call people who won’t call them back. Start tracking voice-mail return rates. Those with the highest percentages (target a minimum of 75% to start) usually spend more time calling referrals, are seen as subject-matter experts or come across as extremely professional. To improve productivity 300%, either train your recruiters to increase their callback rate from 25% to 75%, or hire those who already do it without complaining how hard it is.
Make sure your recruiters get 2-3 high-quality referrals on every call. The ability to get high-quality referrals is the secret behind passive candidate recruiting. A great referral will call you back if you mention the name of the great person who provided the referral. Recruiters then need to prequalify every referral and only call those who are worthy. If you track great referrals per call, you’ll quickly know which recruiters are able to play in the passive candidate recruiting talent game.
Prepare a process-flow diagram of every step in your hiring process and calculate the yield at each of these steps. Look at each step in your hiring processes and see where you lose the most candidates. First, track ad response and apply rates. At the back end of the process, figure out how many good candidates were poorly assessed or excluded for dumb reasons. Then start working on those process steps that can double or triple your team productivity.
Make sure you’re attracting early-birds, not leftovers. When you examine the problems associated with most active candidate sourcing programs, you quickly discover that they’re attracting leftovers, or candidates who have been in the market a few weeks or more. If you’re not attracting the best of the bunch as soon as they start looking, you’re wasting time and resources going through electronic stacks of resumes of unqualified people. Implementing an early-bird sourcing strategy can increase your active candidate sourcing productivity by 100-200%!
Eliminate all barriers-to-entry. The best people, whether they’re active or passive, are more discriminating and don’t want to be pushed into filling in an application before they’re ready. To address this critical need, establish an open-door policy where you allow candidates to “just look around” before getting serious. This is what Web 2.0 is really about — establishing two-way relationships using a variety of entry points to attract someone’s attention.
Manage your 500-pound gorillas. A huge productivity loss is managers who can’t recruit, don’t know real job needs, or can’t accurately interview. If you’ve ever lost a good candidate for one of these reasons, or if managers refuse to see a top-notch person with a slightly different skill set, you know how much time is wasted here. Getting hiring managers inducted into the real world of hiring top performers will double your productivity almost overnight. Not doing it will diminish the impact of everything else mentioned here. (Contact me if you’d like to find out about our new gorilla taming programs.)
Doing everything described will absolutely result in a 100%-200% productivity gain. If not, you didn’t do them right, so start over and try again. Even if you did achieve the productivity improvements, start over again anyway to get another 100%-200% productivity improvement.

Things are changing so fast you need to keep at it by establishing a continuous improvement program. Bottom line, this is what this article is really about.

I wanted to take a few minutes to lift our thinking out of the chaos and calamitous scenarios bombarding us in the news today to revisit and expand on one of our earlier podcasts by my cohort Kent Kedl on the topic “Why China Matters.”

In that podcast, Kent encouraged us to keep our eye on the ball with respect to China — in terms of what it can contribute to both our top and bottom lines. He also warned us to keep our attention on China’s ability and increasing interest to invest in the West.

As many of you no doubt have heard, there are a range of scenarios being bantered around about a Chinese auto company buying GM. While I think there are many hurdles to this scenario, even its possibility should grab our attention. China will continue to increase its standing in the world economy and thus affect our business, negatively or positively, whether we like it or not. Therefore, it has to remain on our strategic radar.

In this podcast I wanted to give you some perspective on the “talk on the streets” from companies and observers actively playing in China’s market in order to get a read on their views of the opportunities and challenges facing western firms doing business there. I’ll also touch on the tactics and initiatives being considered as a response. These insights are assimilated from a range of sources, including our own Technomic team, our many clients (who comprise both large and small/medium sized firms both sourcing and selling in China), from local Chinese businessmen, as well as from our friends at AmCham-Shanghai.

First let me acknowledge that all is not rosy in China either. Most firms are planning for lower growth (though you will note they do use the term “growth”) and, as you would expect, they see recession in Europe and the U.S. Credit is tight and the market for public offering of equity is very difficult. China’s stock market has also tumbled. Competition is becoming even fiercer with resultant price/margin pressure.

This margin pressure extends throughout the whole supply chain. So local management see as the keys to success a major focus on cash and cutting costs while trying to maintain and even develop their human capital, attempting to keep morale up. They are looking to be more innovative and to excel in their supply chains. We continually hear the buzz words, “get lean,” “best practice” and “China is the best place to be.”

Digging deeper

Let’s probe a couple of these areas a little more deeply and identify some specific measures and initiatives being implemented by those companies taking a more proactive position in these tough times.

Supply chain excellence remains a central theme with a focus on inventory reduction, scrap/waste elimination, capacity rationalization and better/smarter purchasing. As mentioned, credit risk management is a high priority as is the preservation of cash. One thing the Chinese businessman has taught me over the years is that “cash is king,” or emperor as the case may be.

Importantly, and a central point I want to get across, is the continued emphasis on growth. China, despite some slowdown, still offers attractive possibilities to expand the top line, even in this world recession. To achieve this, companies are trying to get smarter in their commercial strategies, selecting high value/high margin projects, targeting higher growth industries and especially import substitution (perhaps a warning here for those of you feeling comfortable with your export channels into China’s marketplace). Additionally, they are maximizing access to global and regional accounts, trying to exert as much account leverage and influence as they can.

The central theme here is proactivity. In these turbulent market conditions, disruptive strategies can be very effective, especially if your competition is distracted by such mundane things as survival.

Let me also address a question that I hear constantly these days: Is manufacturing leaving China? I know how to say the word “no” in about 10 languages, so consider it said. Now, is China’s manufacturing profile changing? Absolutely! We see some attrition where manufacturing is very people intensive, has low margin and is highly polluting. The government seems content to let this type of manufacturing either survive on its own, or migrate to other Asian countries like Vietnam. We are seeing little abatement in manufacturing FDI coming into China.

Look what at China offers manufacturers:

A strong and deepening supply chain and infrastructure
A major and continually growing domestic market in addition to export potential
Large volume scale and its benefits to cost competitiveness
An ample workforce that can be trained and empowered
Significant latent productivity to be gained by further process improvements
A very supportive pro-business government
Talk to Westerners who have dealt with government, employees and unions in Vietnam, India or other developing southeast Asian nations. This may open your eyes to the positive things China offers.

As we have repeated over the past year, China remains a strategic market for a dual-strategy approach: tapping the local market while developing secure and competitive sourcing for both domestic and international markets. And to quell the rumors of China’s impending demise that I see reported in the U.S. media, note the following:

According to the “2009 Economic Blue Paper” released Dec. 2 by the Chinese Academy of Social Science, a central government think tank, China’s GDP is expected to grow 9.8 percent or so this year and should be able to be maintained at a growth rate of some 9.3 percent in 2009. The minimum GDP growth rate for 2009 as set by the government is 8 percent. Anything lower than this is not acceptable to the government, whose top priority is to maintain social stability. So I can imagine that the Chinese government will do whatever is possible to accomplish this “break-even” growth rate for 2009. The government has both the will and the means to make this happen, and we have seen no hesitation in the past for them to take action.
If you like mind boggling numbers, note this one: Pledged investment by the central government for 2009/2010 is RMB 4 trillion! My calculator doesn’t have so many decimal places, but I reckon that’s almost $580 billion. Local governments are committing substantial funds, as well, which could significantly increase or even exceed this already massive figure. The central government even earmarked almost $15 billion for investment projects for the 4th quarter of 2008 to pad GDP a bit. As the Summer Olympics this year showed us, China can do things on a mind-boggling scale.
The EIU forecasts that by 2030 China will have over one billion middle- or upper-class consumers and be second only to the U.S. in economic output.
So, yes, China will have its struggles, but it ain’t going anywhere.

Finally, let me leave you with a few take-aways in terms of actions you might consider with respect to China as you review your 2009 strategy:

A clear theme among our client base is “smart growth.” This means being aggressive but more pointed in your projects and target markets/customers. To be effective, you must have current and accurate intelligence on your marketplace.
Manufacturing efficiencies are there to be had. Explore lean strategies and bring your best practices to China. Even if you are working with third-party vendors, in the right buyer-supplier relationship, you can effectively transfer process knowledge to key partners to help them improve their competitiveness.
Re-think your supply chain from start to finish. The recent dynamics in global markets have changed the landscape of sourcing costs and moving product around. Look at ways to optimize your supply chain and use it as an offensive weapon. You can exploit the strain your supply chain partners are feeling to develop a more efficient process and a more competitive supply structure. You may find, like the Detroit Three, as our auto companies are now called, that they are open to about any conditions in order to get “bailed out” of their present circumstances.
Lastly, chaos is the breeding ground for disruptive strategies. Look at going forward or backward in your supply chain in order to add value and enhance control. Consider an aggressive acquisition. There are many cost-effective assets to be had in China if you know how to find and cultivate them. A strategic move here could alter the playing field in your market, both in China and internationally. With the lull in market demand and the difficulties in going IPO, you may find that there are more friendly targets out there among Chinese manufacturers than there have been in the last couple of years when many of these same companies were demanding 20-30 times earnings for a piece of the action.
I hope these insights from the front lines have been helpful and that you will consider some of the actions I suggested. It is interesting to note that when the Chinese use the word for crisis (wei ji), it is a joining together of two words: “danger” and “opportunity.” Let’s not forget the second part of this meaning for crisis as we battle this economic environment.

http://www.technomicasia.com/blog/2008/12/15/why-china-matters-part-2/

During tough economic times there is intense pressure on all functions within the business to re-think their current approach in an effort to become more competitive and aggressive all while containing cost.

Unfortunately, many recruiters and recruiting leaders choose an opposite path, becoming more conservative in their approach. When markets head south and fear about economic issues grip the populace, consider a counter-cyclical recruiting strategy that sends a clear message to everyone inside and outside your organization that talent truly means something to your organization.

One controversial yet extremely public, effective outside-the-box recruiting approach you might consider is “proximity recruiting.”

You Must Do Internet and Physical Recruiting
Even with the tremendous growth of Internet recruiting, not everyone is actively surfing the Internet looking for a job or combing through their email in anticipation of your generic form letter introduction.

Reaching a greater percentage of the population relevant to your job searches often requires using at least three channels to reach them, one of which should be physical. The underlying concept of physical recruiting is a simple one, just as robbers target banks because that’s where the money is! Recruiters need to target physical locations where a large number of potential hires can be found.

While nearly everyone in recruiting is familiar with the dreaded job fair, there are numerous other approaches to physical recruiting that are far more effective and fun. One such approach is “proximity” or event recruiting. Proximity recruiting at professional events (tradeshows and seminars) is clearly becoming more mainstream, but one location in particular really elevates the visibility of your efforts and qualifies as “outrageous.” The location? Across the street or in the parking lot of talent-competing firms in trouble.

Proximity Recruiting with a Taco Truck
If you have been paying attention to the business press lately, you are probably aware that Internet giant Yahoo! was planning to lay off approximately 1,000 employees worldwide, the greatest percentage of which would come from its Silicon Valley headquarters in Sunnyvale, California.

What you may not know is that despite a multi-year trend of notable voluntary exits by key employees, Yahoo! is still considered by many to employ some of the greatest engineering talent in the industry. This talent is extremely valuable to hundreds of upstarts working on next-generation technologies.

Yahoo!, like many organizations planning a reduction in force, kept its plans secret until the day when the axe actually swung. Because employees knew pink slips were coming, but no real guidance was offered as to who would be impacted, more people were concerned than would actually be cut.

Seizing on that fear and the actual swinging of the axe, Tokbox, an upstart enabling free voice and video calling over the Internet without any software download, engaged a proximity recruiting strategy that some may consider outrageous.

While pink slips were being handed out, Tokbox executives were setting up a taco truck across the street from Yahoo’s corporate campus, offering employees affected (and anyone else that wanted to chat) a hot lunch and information about employment opportunities.

Their approach was a simple one. They leased a taco truck and driver for the day, set up across the street in plain view, and offered a hot lunch to any Yahoo! employee who wanted to talk. Company executives were on hand and the atmosphere was light.

In order not to make anyone overly nervous, the conversations were kept short. While proximity recruiting has become more common in the Silicon Valley, Tokbox’s efforts still garnered a great deal of press both on the Internet and via the mainstream news media, earning them hundreds of thousands of dollars worth of free PR and employment advertising.

Other Proximity or Event Recruiting Opportunities
If you are not ready to offer free food or display a banner, consider additional proximity recruiting approaches:

A van with a recruiting banner. If there was a most commonly used form of outrageous proximity recruiting, it would have to be the use of the recruiting van (usually with a large banner) that is parked within easy view of a large corporate site or a commuter site frequented by target talent. The “banner van” parked across the street approach has been used both in high-tech and healthcare to target firms that are currently going through acquisitions, union problems, and workforce reductions.
The “across the street” bar, restaurant, or gym. Almost any firm with a large number of employees has a bar or restaurant close by where a significant number of the site’s employees go for a drink or meal with a colleague. These locations are packed with employees wearing IDs, who incidentally, often have their guard down. Health clubs and gyms are also great spots to target.
Award events. You’re almost guaranteed to meet the best and brightest at events that offer awards or prizes for excellence and innovation. Not only should the recipients be targets but you should also look at award presenters as both potential targets and as referral sources.
College recruiting approaches. Because college students love to attend events, proximity recruiting should be a major part of your university recruiting effort. Place a “banner van” key across the street from college campuses. Consider recruiting at campus club meetings, at college sports events, at music concerts, on the beach during spring break, and even at both on- and off-campus college poker events.
Conventions. If you’re trying to hire a nurse, it only makes sense to recruit at a bar inside or outside a nursing-related convention, or where nursing continuing education is being offered. Here again you have the advantage of almost everyone having a name tag with their own and their company name on it.
Clubs and groups. If you are seeking individuals with certain skills or attributes, consider recruiting at clubs, societies, or organizations where individuals with these attributes are common. For example, if you’re looking for risk-takers, target rock-climbing clubs. If your search includes disciplined individuals, consider military groups, math societies, and music groups.
Hotels where company events are held. When you think about it, companies do send their very best people to meetings, seminars, and events. Occasionally, corporate events are announced on the hotels marquis for everyone to see, making it easy to schedule your next pub crawl. This time of year, immediately before a firm’s holiday party gets underway, is another time to begin building relationships with potential targets.
Corporate training centers. Many firms send their best employees to corporate training. Because a good deal of corporate training can be long and dull, there is a high likelihood that a large group will go out for cocktails in the host hotel or at a nearby bar. So, if you have large corporate training centers near you, consider them prime targets.
Shareholder meetings. The bar across the street from the location of the annual shareholders meeting will almost always include a number of company employees and leaders. Go before or after the event to make contacts and build relationships.
Miscellaneous. Firms have practiced “proximity recruiting” at other events and sites including wine festivals, home shows, in shopping malls, and at charity events.
Final Thoughts
If you are put off by the concept of boldly “raiding” other firms, you should realize that “stealing” another firm’s customers is already an accepted and common practice. Both sales and recruiting are competitive functions where the most desirable targets have already been captured by your competitors. As a recruiter, your job is to provide your coworkers with the best teammates that can be found anywhere, period.

No matter what you do, you can never successfully recruit a firm’s employees unless the firm that the employee currently works at has already failed to offer them opportunities that are superior to yours. If you are even slightly hesitant about raiding firms like GM, Ford, Chrysler, Citigroup etc. that have clearly failed their current employees, don’t be surprised when you are replaced by a recruiter who is more aggressive, bolder, and more willing to try something new.