charting your course in a changing china · pay a premium to secure the best talent out there.”...
TRANSCRIPT
Charting Your Course in a Changing ChinaBusiness and HR Implications
Jim Steele, EdD, GPHR, SPHRProfessor of Management
WhichChina?
Economic Indicators
GDP Growth – in US$
Source: World Bank,2000-2017
GDP Growth – Purchasing Parity
Source: World Bank,2000-2017
Middle-Class Consumption
Global Trends 2030:Alternative Worlds, National Intelligence Council
US
China
Important Trends
Office of the Director of National Intelligence, Global Trends
0
100
200
300
400
Chinese students in US universities US students in Chinese universities
Tho
usa
nd
s
University Students Studying Abroad
• 32.5% of Chinese studying abroad are in the US
• 3.6% of Americans studying abroad are in ChinaInstitute of International Education
Institute of International Education
Students studying a foreign language:
• Chinese studying English:
300-400 Million
• Americans studying Chinese:
200,000
Key takeawayThe average Chinese citizen knows a whole lot more about the US than the average American citizen knows about China.
or
Where do you fit in?
Organically Connected
Strategic Partnership
Import/Export
Domestic
Selling goods& services
Buying goods& services
SubcontractingOutsourcing
Disti ChannelsLicensing
Joint VentureSubsidiary
Global ExpansionMerger/Acquisition
“Born Global”
Four important trends for HR professionals to understand
•An increasingly connected workforce
•US and multinational employers losing ground
•Money is not enough to attract and hold talent
•Everything happens faster
The WeChat Generation
Most attractive employers, ranked by Chinese university students
Rank 2016 2017 2018
1 Huawei Huawei Huawei
2 Alibaba Tencent Alibaba
3 Tencent Alibaba Tencent
4 Google Baidu Xiaomi
5 Apple Microsoft Apple
6 Baidu Google Microsoft
7 Microsoft Apple Baidu
8 State Grid Corp of China Air China Google
9 Siemens Siemens State Grid Corp of China
10 BMW State Grid Corp of China JD.com
Universum
The War for Talent
“Top talent is in hot demand and plenty of employers, especially local Chinese organisations, are preparing to pay a premium to secure the best talent out there.”
“Flexible working practices, upgraded non-financial benefits, performances bonuses, share options and (perhaps most importantly) being a true ‘employer of choice’ will all be on the priority list for HRDs and CEOs alike.”
HR in Asia: “Top 10 Talent Trends in China 2017”
Benefits, Chinese Style
Most desirable employee benefits:
1. Health benefits/insurance
2. Flexible working arrangements
3. Training
4. Enhanced annual leave
5. Travel allowance
6. Child care
7. Car allowance
8. Gym membership
ZW HR Consulting
The Pace of Change
Technological change
Societal change
Political change
TechCrunch.com
Science & Engineering Degrees
US (Green)
China (Red)
World Economic Forum
Venture Capital Investment
China (Lt. Green)
US (Green)
World Economic Forum
Changing Society: Generation Gap
“People who grew up during the Cultural Revolution of the 1960s and strict communism have a difficult time relating to a younger generation that is much more concerned about materialism and individuality.”
Haining Liu, BBC
• One child policy (1980-2015)
• Individualism
• Self-determination
• Materialism
Political Change
• China has a “plan B” in a trade war- Decreased dependence on
US trade
• Xi Jingping “3 tough battles”- Financial risk
- Poverty
- Pollution
• Preference for local control
of companies
Jim Steele, EdD, GPHR, SPHR
Office: 503 554-6177; Mobile 503 [email protected]
MBA.georgefox.edu
(Thank you!)
References• The Conference Board, Global Business Cycle Indicators, June 2018
• https://tradingeconomics.com/china/gdp-growth-annual
• https://data.worldbank.org/indicator/NY.GDP.MKTP.PP.CD?end=2017&locations=CN-US&start=2000&view=chart
• https://www.dni.gov/index.php/global-trends-home
• https://www.iie.org/Research-and-Insights/Open-Doors/Data/International-Students/Places-of-Origin
• https://www.iie.org/Research-and-Insights/Open-Doors/Data/US-Study-Abroad/Destinations
• http://fortune.com/2018/08/15/china-us-learn-mandarin-language/?utm_source=fortune.com&utm_medium=email&utm_campaign=social-button-sharing
• http://www.atanet.org/chronicle-online/extra/the-state-of-languages-in-the-u-s/#sthash.goRogsjW.PAkaFDJL.dpbs
• http://www.hrinasia.com/recruitment/top-10-talent-trends-in-china-for-2017/
• https://universumglobal.com/rankings/china/2018/
• https://www.smartrecruitmentnews.com/desirable-employee-benefits-china-2017/
• https://techcrunch.com/2017/01/23/china-internet-half-population-mobile/
• https://www.weforum.org/agenda/2018/02/these-charts-show-how-china-is-becoming-an-innovation-superpower/
• https://www.mprnews.org/story/2018/02/21/cultural-changes-in-china-have-created-a-generational-gap
• https://www.theguardian.com/cities/ng-interactive/2018/jul/30/what-china-belt-road-initiative-silk-road-explainer
• http://www.xinhuanet.com/english/2018-04/02/c_137083296.htm