China's HR talent market has faced unprecedented challenges in the last two years, and the demand for top HR talents could be more active. These challenges include extended decision-making processes, sifting hiring focus towards deliverables rather than strategic roles, and downgrading some positions. Despite these hurdles, some notable opportunities and trends provide a positive outlook.
Characteristics of Recent Market Trends
Extended Decision-Making Processes
The uncertainty in the global and local economic environment has caused organisations to adopt more cautious and thorough hiring procedures. Decisions that once took weeks now extend into months, reflecting a heightened need for due diligence and risk aversion.
Focus on Deliverables
Companies increasingly prioritise HR candidates who can deliver immediate results over those suited for long-term strategic roles. This shift is driven by the necessity to navigate current economic challenges effectively and efficiently, ensuring short-term stability and performance.
Re-Shaping the Workforce
Many organisations are strategically reshaping their workforce in response to budget constraints and a focus on cost efficiency. This shift involves hiring highly motivated and talented individuals who, despite their relative inexperience, bring fresh perspectives and innovative ideas to the table. By focusing on potential rather than just experience, companies are unlocking new avenues for growth and creativity. This approach allows businesses to foster innovation, cultivate future leaders, and optimise resources.
Opportunities in the Current Market
Despite the challenges, several areas within the HR talent market continue to show robust demand:
Compensation and Benefits (C&B) Positions: Key Word: Design & Cost
Over the past 24 months, there has been a sustained demand for C&B roles. Previously, many of these positions were centred on localising global projects. Today, the market favours C&B leaders with solid design capabilities who can enhance organisational cost-effectiveness. These leaders are valued for their ability to create and implement innovative compensation structures tailored to the unique needs of the Chinese market.
Talent Management Roles: Key Words: Tailor-Made Initiatives
Talent management positions are also in demand, with a notable shift from localising global talent programs to creating tailor-made initiatives for the Chinese market. This includes developing new competency models, leadership programs, and employee upskilling and reskilling efforts. These localised programs are essential for companies looking to build a workforce that can navigate and thrive in the unique Chinese business environment.
HR Business Partner (HRBP) Positions
After a period of stagnation, there has been a renewed demand for HRBP roles in 2024. This resurgence indicates a revitalisation of organisational dynamics. In the past, companies hired HRBPs primarily for market-focused priorities, specifically expansion. Today, organisations are reassessing their China operations, increasingly focusing on building matrix organisations to enable better support from global headquarters. As a result, HRBPs skilled in organisational change management are highly sought after.
Additionally, many companies have initiated succession planning for the Head of HR position due to the approaching retirement of current HR leaders. This trend underscores the need for experienced HRBP professionals who can ensure a smooth transition and maintain organisational continuity. Therefore, companies are increasingly seeking HRBPs who are more flexible about their roles and management scope during the transition period.
Emerging Potential in Chinese Multinational Companies
Policies such as anti-corruption measures in the pharmaceutical sector or geopolitical tensions have occasionally caused setbacks in local companies. However, Chinese multinational companies continue to exhibit significant potential. The trend towards professional HR management and the international expansion of Chinese enterprises is expected to generate numerous high-level HR talent needs. These companies require HR leaders who are business-savvy and culturally adaptable, capable of navigating complex regulatory environments, fostering innovation, and supporting global growth strategies.
Where Next?
The HR talent market in China is undergoing significant changes, marked by extended hiring processes and a focus on immediate deliverables. However, the demand for specialised roles such as C&B leaders, talent management professionals, and HRBPs indicates a resilient market with substantial opportunities. Additionally, the ongoing evolution of Chinese multinational companies presents a promising avenue for HR talent. By understanding and adapting to these trends, HR professionals can navigate the current landscape effectively and capitalise on emerging opportunities.
