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Business Stage in China How do we get the right people ? Compensation Expatriates vs. Locals Build Organization Capability How do we grow our people ? How do we keep the best people ? Start Up Grow Restructure Bigger Grow HR Challenges GA Cutting Localization Capability Assessment Diversity Retention People Planning Process Repatriation Laid off HR Challenges Rapid Increase of Foreign Investment Limited talent pool High turnover No long term commitment Staffing HR Challenges Expatriate Foreigner Region Nations Overseas Returnees Local Organization Efficiency Expected Actual Time Reentry Familiarity Culture Change Learning Curve Patience Repatriation Year Compensation (,000$) Overseas Returnee Cost considerations Increasing unemployment rate abroad Cultural difference …… Market maturity e.g. Higher educational level, skill level, etc. Bigger demand to local labor market from multinational company Lower people cost China Vs Asia: (US$) China HK TW SP Head HR 92,900 206,000 123,000 128,900 Head FA 73,800 166,700 143,000 151,300 Head SM 127,500 206,000 175,200 152,100 GM 151,600 361,800 294,100 285,800 source: MERC Executive CB Survey, April 2000 The challenges facing almost all HR professionals in the future will be how to build their organization capability So that actually drives business momentum Building a Strong Team to Drive China Business Forms Important People Strategy Establish talent pool for future business growth - Fill critical vacancies by hiring experienced talent. - Campus recruitment - Overseas returnee - Regional PFI China Employee Development vs. Market indicates we are very successful at developing local managers PG Unilever S.Johnson Coca-Cola PFI Years in China Staff Supervisor Manager Function Head/Director 12 L
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