International Law

SME Success In China. It's All About The People.

By Dan

By Simon Malinowski, a Harris & Moure 1L summer associate.

Technomic Asia has done yet another excellent podcast on what it takes for Small and Medium-sized Enterprises (SMEs) to succeed in China This one is entitled, "Challenges for SMEs in China: an interview with Steve Crandall," and it focuses on the hiring of personnel in China.  

Crandall starts out by talking about how the key to succeeding in China is having people who can take an idea and make it work as a viable business. Finding these people is a constant challenge for SMEs in China.

SMEs lack the prestige of the larger multi-national corporations that can hire based on name recognition and perceived room for opportunity. On the other hand, due in large part to their smaller size, SMEs frequently find themselves growing at exponential rates and need personnel to sustain the growth. This rapid expansion places a particular burden on human resources, making effective hiring critical to the SME's continued growth. Many SMEs are finding themselves unable to satisfy their hiring needs and are finding this lack of the right people to be a serious constraint to their growth.

Steve also talks about the importance of foreign companies in China understanding and separating out their core values from their culture. The core values of a business, and by implication, the manner in which a business is run, can be taught to new employees. Teaching culture is a very different thing.

To make themselves more appealing to job applicants, foreign SMEs in China must present themselves in an appealing way. They should be prepared to show the benefits of working for a smaller business. Though money is important in all aspects of the hiring process, the potential for the prospective hire to succeed in and grow with the company is of paramount importance as well. 

Steve also notes that no matter how badly the foreign SME needs additional China employees, it should not rush into hiring. Interviews should be thorough and conducted by more than one trusted existing employee. And background checks are an essential step in finding the right people. The prevalence of phony CVs in China means that calling an alma mater to confirm a prospective hire's authenticity is a good way to 'quality control' your hiring process.

For more of Steve Crandall's take on SME hiring in China, click here and give the whole thing a listen.   

Full post as published by China Law Blog on August 15, 2010 (boomark / email).