We spoke to Mikel Yaw, Group MD, Elabram, to get his take on establishing and managing borderless teams, particularly across the GBA and into Mainland China.
1. What key HR challenges do Mainland Chinese companies face when setting up offices and HR teams in other economies?
In terms of process and the systems of the relevant countries, HR will need to venture into numerous aspects, including cultural sentiment, communication and language, as well as labour laws and regulations— especially concerning hiring new talents. These issues are the most frequent barriers to entry when establishing new teams in go-to countries.
In terms of cultural sentiments, HR needs to be very sensitive in giving team members feedback and instructions. People, especially those in frontline and non-executive roles, may be a little shy and not used to direct instructions or constructive feedback. There may be a tendency to accept what is said and say "yes" all the time to avoid any confrontation with those in more senior roles. However, after the "yes", whether they execute it is another matter entirely.
A company must understand the relevant labour rules and regulations on the hiring and firing side, especially concerning terminations and the resignation and exit process. Organisations who act in haste, especially with terminations with no notice, often incur significant backlash, which can be costly in terms of reputational loss. So, companies need to build their reputation and trust among the local community in a new market and get to grips with the ins and outs of the local labour rules and regulations. This will help them better manage new local teams well, right from the start.
2. How can employers best show presence in a new location?
Having a physical presence in the new country is very important, particularly if you are an SME that is not privy to the global brand exposure that MNCs and Fortune 500s enjoy. Organisations need to make the right impression and show their presence to attract the right talent and give them the confidence to join the organisation. Suppose a physical office is not viable at this stage. In that case, companies can make use of outsourcing partners to help them with initial workforce provisions. HR should check such outsourcing companies and ensure they have a regional presence in the target country, have worked with overseas companies before, experience working in mainland China, and share a few of their key clients as references.
DOs
- Be transparent
- Ask questions to help clear any doubts you might have
- Be prepared for change along the way—as many companies in Mainland China are in the growth phase and still in the learning curve in terms of venturing abroad and conducting business with western organisations. As they learn, they may later change their mind about how to manage a particular project. Companies must be prepared for such changes as they happen and be flexible in finding work-around solutions.
- Understand guanxi and the importance of building up long-term relationships based on trust and working together through both ups and downs to ensure the working bond strengthens over time.
- Do some research first and check with your networks who have working experience in that country to get some tips on how best to do business there and what challenges are likely to arise.
DON'Ts
- Give up on business relationships due to small errors or challenges—instead, find ways to work on it and patch it up. It's essential to continue to work through things together, to develop the relationship and continue to build up long-term trust.
- Reject offers of help, rather than being blunt and directly rejecting ideas; it is important to show gratitude and thanks for the offer of help. You can actually reject ideas, but do so only for good reasons, and clearly explain these reasons to help the other party better understand why. Also, give them a Plan B or alternative options that they can explore.
3. What are key considerations when hiring new talent in a new overseas location?
When recruiting new teams my advice is to clarify what type of talents you want to recruit to help solve your main challenges and achieve your goals. HR should also first recruit a more senior-level talent, such as an HR Manager, who understands the local labour law. With these key talents in place to help with hiring, they can then provide sound advice about relevant rules and regulations that the company needs to follow to ensure proper workforce planning and smoother hiring processes.
CEOs and HR teams need to understand that there are some differences when they go abroad due to cultural differences. HR from both sides of the fence: from Mainland China and the new target country also must understand each other and have frank discussions about these differences to help reach an agreement on how best to fill gaps that may exist.
There may also be hierarchical differences in how organisations are structured, and any such barrier will take some time to overcome. The speed of transition also depends on whether the talent concerned have had previous working experience with different corporate and international cultures. First, all stakeholders need to understand the existing hierarchy and levels and types of respect that need to be communicated, then relevant communication channels can be opened up, and the entire organisations can adapt to this over time.
Companies may consider hiring somebody with an Asian background and experience from the country where the parent company is headquartered. They will be well placed to advise about potential differences to bridge any gaps between local talent and the top management. I see this happening a lot in MNC companies, particularly in the insurance sector, where they hire great leaders like this, who help bridge these gaps, due to what are sometimes considerable differences, and help drive the company forward well with full support from the local teams. These local leaders can demonstrate actual case studies to senior leaders to help them better understand some of the potential risks and consequences that occur when setting up offices in new economies. They can also help propose alternative solutions to these challenges so the senior leaders can decide which is the best way forward. Frequent communication with the local teams is essential to help break down barriers and ensure a good understanding of critical issues. With proactive HR campaigns, events, activities, and open dialogue to ensure local teams are planning well and have trust in and believe in the parent company, even very small companies who are not famous can do exceptionally well.
4. How can companies enhance employer branding in new markets?
This really depends on the company's marketing and employer branding strategies. Good employer branding starts with the corporate website, which should have English and local language versions to broaden its accessibility to a broad audience of potential talents. HR needs to be working hand-in-hand with their marketing team to ensure consistent employer brand messages are sent out across multiple platforms. To ensure the best talent is brought into the organisation, HR also has to be specific with job descriptions and use the most appropriate channels to get that message in front of the right potential talent pools. HR also needs to ensure that they have robust talent acquisition and recruitment teams to aid in this respect.
5. How can HR better embrace borderless teams working in disparate locations?
Many companies are working with borderless teams right now, and COVID has led to a rise in this number. Talent is no longer limited to local teams, and HR is looking to tap into and leverage the strengths of new hires from countries around the world. To hire borderless teams that will be successful in working together remotely, HR must build trust with the individuals concerned and established clearly defined job descriptions to detail exactly what each team is responsible for.
HR also needs to target talent in economies where talent in that particular field would be more cost-effective and still provide the performance and productivity levels required to meet the company goals. Sometimes, hiring also depends on the company culture and whether the company prefers teams to be physically present in an office and has methods and processes to effectively track project progress and monitor work status in remote teams. This is often another steep learning curve for HR managers and requires adapting existing HR practices to tap into borderless teams and explore new talent pools.
6. How should companies prepare for new joint-venture relationships with Mainland Chinese organisations?
Western and Chinese cultures can be quite different, so it's important to study Chinese culture first before venturing into the Mainland China market. There are several Dos and DON'Ts that companies should follow.
Paul Arkwright
Publisher
