Publications – China

Doing Business in China: A Practical and Cultural Guide for HR Managers Webcast CD

By Ames Gross
Price: $350 June 2009
Broadcast by Pacific Bridge, Inc.

Lee Kuan Yew, former Prime Minster of Singapore, once said “to be part of the Asian dynamism, Westerners do not need to become Asians in culture, in values, or in habits...but it is necessary for Westerners to understand Asians, to feel at ease with Asians and to make Asians feel at ease with them.”

This statement is particularly applicable today for Western companies doing business in China. There is no doubt that China is and will continue to be a global hotspot for business. Yet many Western companies that rush haphazardly into China without fully understanding its business culture and mentality ultimately meet with failure. This webcast presentation first provides crucial information on investing in China and dealing with the recent unionization push and changes to labor laws. It then goes one step further to give insight into communication and management techniques that have proven effective in the Chinese business context. This 90 minute recorded session includes the 60 minute presentation, followed by 30 minutes of Q&A from the live event.

China Labor Union Update

By Ames Gross
February 2009
Published on VentureOutsource.com

Worker unionization has dramatically increased in China since the beginning of 2007. Chinese domestic companies and foreign-invested companies operating in China are both feeling the effects, but in different ways.

Some Chinese firms turn to union mediators to help deal with a growing number of worker strikes, while many foreign-invested companies are being pressed by the Chinese government to open their doors to government unions.

Throughout 2008, as Chinese firms and union officials have begun to take innovative approaches to handle worker unrest, foreign companies now wonder if they will have to follow in lockstep.

Click here to read the full article

HR and Recruiting Issues in China Webcast CD

By Ames Gross
Price: $350 January 2009
Broadcast by Pacific Bridge, Inc.

The pace of change in China has continued to accelerate. Human resources and recruiting issues are changing rapidly. Whereas ten years ago the Chinese labor laws were outlined in a 20-page memorandum, today HR regulations have become significantly more detailed, and enforcement of such laws has increased. Benefit programs (including medical, pension, and housing) are also developing quickly and the country is trying to enact national policies. Today, there are more recruiting options available to locate Chinese executives, but retention issues have become just as important. How do you find the right Chinese executives for your company? This 90 minute session includes a 60-minute presentation, followed by 30 minutes of Q&A.

2008 China Labor Contract Law Update

By Ames Gross
Price: $350 October 2008
Broadcast by Pacific Bridge, Inc.

On January 1, 2008 a new labor contract law came into effect in China. It requires employers to provide written employment contracts to their workers. The law will also require employment contracts to stipulate minimum wage and safety regulations. Contracts must also be drawn up within one month of starting work. The new ruling will apply to both domestic and foreign firms operating in China. Since the labor contract law has only recently been released, many employers remain unclear on the changes and how they will affect their operations in China.

This 90 minute session recorded on CD includes a 60-minute presentation, followed by 30 minutes of Q&A.

Termination Issues in China

By Ames Gross
September 2008
Published in SHRM Global Forum

With a population of 1.3 billion, a labor force of over 800 million, and more than 5 million graduates from institutions of higher learning each year, China has the potential to dominate global business in the decades to come. The country currently has the world’s second largest GDP in terms of purchasing power and received more than $80 billion in foreign direct investment in 2007 – five times the level in India during the same year.

With its rapid economic growth, China has experienced increased sophistication of human resources practices. New laws are being passed which regulate everything from hiring practices to minimum wage. Enforcement of labor laws by government officials and courts has also increased.

Among the most important HR issues for foreign invested enterprises (FIEs) in China are the legal requirements surrounding the issue of termination. It is never an easy task for HR managers to let employees go, but companies wishing to avoid costly labor disputes and penalties in China must be particularly vigilant.

Recruiting and Retention Issues in China Webcast CD

By Ames Gross
Price: $350 September 2008
Broadcast by Pacific Bridge, Inc.

China is growing at an accelerated rate. Recruiting and retention issues are changing rapidly. Today, there are more recruiting options available to locate Chinese executives, but retention issues have become just as important. How do you find the right Chinese executives to run your business in China? Are locals, expatriates, or returnees best suited for positions in your company? This 90 minute session includes a 60 minute presentation, followed by 30 minutes of Q&A.

New 2008 China Labor Contract Law Update

By Ames Gross and Andrew Connor
April 2008
Published in SHRM Global Forum

On January 1, 2008, a new Labor Contract Law took effect in China. The law aims primarily to protect the interests of blue collar workers. According to Chinese government officials, the new regulations will curb the rising tide of labor disputes and should ultimately increase worker loyalty to employers. Many foreign firms, however, fear that resulting increases in labor costs will negatively impact their operations in China. Major changes to the new law include increased regulations on written labor contracts, use of temporary workers, and severance pay. This article provides an examination of the new regulations in the Labor Contract Law and how these regulations will effect Western businesses in China.

China Human Resources Update - 2008

By Ames Gross and John Minot
January 2008
To be published on HR.com

This article provides updated information on human resources and recruiting issues in China. It includes sections on new labor laws and regulations, government actions, union activity, compensation practices, and educational and training programs.

Managing Chinese Employees

By Ames Gross
October 2007
Published in Benefits & Compensation International

This article provides insight into the ways in which Western companies in China can more effectively manage their local Chinese employees. The article describes three real-life office scenarios at MNCs in China and suggests the steps that could have been taken to avoid them. The Chinese market is vital to international companies and an investment in cultural awareness will certainly pay off.

Managing Chinese Returnees

By Ames Gross and Andrew Connor
October 2007
Published in Mobility Magazine

Every year, over 100,000 Chinese students leave China to study overseas. But unlike their earlier counterparts, many recent overseas-educated Chinese graduates have returned. Indeed, the number of returnees has increased drastically over the past few years. From only around 6,000 per year in 1995, the number had soared to over 40,000 in 2006. These returnees have valuable contributions to make, but managing them often requires a different set of approaches and outlooks. This article examines the main issues affecting returnees, and what HR specialists in foreign companies can do to address them. It also discusses some of the difficulties returnees face when they return to China.

Labor Contracts in China

By Ames Gross
September 2007
Published on HR.com

In late June 2007, China’s parliament passed a new labor contract law requiring employers to, among other things, provide written employment contracts to their workers. To be implemented on January 1 2008, the law will require employment contracts to stipulate minimum wage and safety regulations. They must also be drawn up within a month of starting work. The new ruling will apply to both domestic and foreign firms, except for foreign representative offices in China. Since the labor contract law has only recently been released, some details remain unclear. The following information is what we have gathered after speaking with HR managers and other sources in China.

Increase of Unionization in China – What Foreign Managers in China Ought To Know

By Ames Gross
August 2007
Published in Global HR News

Over the past decade in China, complaints about unfair labor practices have become increasingly common and China's once practically non-existent unions have gained more power. Although China’s unions are nowhere as powerful as their counterparts elsewhere, it is essential for foreign managers and companies in China to monitor the nature, impact, and significance of unionization in the country. This article examines the rise of unions in China, the role of the ACFTU, and the landmark unionization of global retailer Wal-Mart. It then evaluates what these and other developments mean for foreign managers and companies operating in China.

Retention in the Chinese Context

By Ames Gross and Andrew Connor
June 15, 2007
Published in the Global Benefits Management edition of Employee Benefits News

An important challenge in China today for HR managers of foreign firms is to retain them qualified staff after recruiting them. While new graduates are abundant, skilled middle managers are much more difficult to find. Few of these can speak English or have an understanding of Western business practices. Those who do are aware of their own market value and can be difficult to retain. Successful HR strategies must go beyond benchmarking of compensation and benefits. They must also work towards the integration of international HR practice with the Chinese culture and mentality.

This article discusses compensation standards, housing benefits, career advancement, training programs, and cultural issues to take into consideration in the Chinese context.

China Recruiting and Retention Issues

By Ames Gross and Andrew Connor
April 2007
Published on the SHRM Global Forum

This article contains information on the differences between hiring expatriates, returnees, and locals, current recruiting trends in China, and retention strategies in the Chinese context. In today's fluid job market in China, keeping top talent is often as difficult as attracting it.

China HR and Recruiting Issues Update - 2006

By Ames Gross and Andrew Connor
December 2006
Published in SHRM International Focus, a publication of the Society for Human Resources Management

The Chinese economy continues to expand at a substantial rate. With a labor force close to 800 million, China’s gross domestic product (GDP) has been steadily rising since the mid-1990s at an average annual rate of close to 10 percent. The GDP for 2006 is predicted to be the highest in the past decade. Foreign direct investment in China reached $72 billion in 2005, more than 12 times the amount of investment in India. During this era of fierce competition, recruiting and retention of talent have become increasingly critical focal points. This report highlights the latest recruiting trends in China as well as changes in Chinese labor law, housing and tax issues and other related HR matters.

2005 Human Resources Trends in China

By Ames Gross and Loren Heinold
May 2005
Published in SHRM Global Forum

With a yearly average economic growth rate of over 8% and a recent accession into the World Trade Organization (WTO), China is faced with tremendous opportunities as well as overwhelming challenges. The employment sector will probably see the most shifts from China’s WTO entry, with labor forces shifting from agricultural and industrial sectors to the services sector. However, the economic growth and WTO accession has also attracted many more foreign companies to China, allowing more Chinese to work for foreign companies. Subsequently, more Chinese employees have received invaluable training and skills and have also enjoyed better compensation and benefits. This article examines the benefits and challenges that China’s current and future workforce faces and the additional effects of the WTO accession.

Recruiting & Human Resource Issues in China

By Ames Gross
September 2002
Published in SHRM International Focus, a publication of the Society for Human Resources Management

As China’s economy continues to be one of the fastest growing economies in the world, it is also beginning to develop a more efficient and productive labor market. Human resource and recruiting techniques are being modified to meet the new needs of employers, whether foreign or local. This article reviews the adjustments being made by the government and employers in China to accommodate the shifting labor market. For example, some of the recruiting issues include deciding between local employees, overseas Chinese, Chinese returnees (those born in China, looking to return from overseas), and expatriates. Additionally, the amount of compensation has changed as skills and education have improved among local Chinese. Moreover, taxes, housing benefits, healthcare and retirement plans have also been adjusted, reflecting the improvements in China’s labor market.

China and the WTO

By Ames Gross
Issue 6 – 2002
Published in SHRM Global Perspectives, a publication of the Society for Human Resources Management Global Forum

China Human Resources Update Newsletter 1995-2001

By Ames Gross
1995-2001

Every issue of our China HR Newsletter (published for 6 years between 1995 and 2001) available for free online

Recruiting Entry-Level Professional Staff in China

By Ames Gross
August 2001
Published in Corporate Relocation News

Opportunities for entry-level professional positions in China have soared over the past several years, prompting companies to re-evaluate their recruiting techniques. The advancement of higher education in China has produced a growing number of qualified individuals for hire. This article gives informative advice for companies looking to recruit Chinese university students. Key topics include giving campus presentations about your company, the interview process, competition from other companies, and the demand for higher compensation.

Relocating to China: A Teenage Perspective

By Ames Gross
May 2001
Published in Corporate Relocation News

This article gives a teenage perspective on relocating to China. When families are relocating to China for business purposes, there are several important issues to consider, including language barriers, housing and education for foreign children.

Employee Retention: Building an Effective Strategy to Retain Your Top Chinese Employees

By Ames Gross and Shawna Lepage
April 2001
Published in Corporate Relocation News

Foreign businesses in China are experiencing fierce competition in retaining their well-educated, well-trained local Chinese executives. Labor agreements and business contracts are slowly being introduced into the business environment, but until the legalities are more enforceable, companies will need to be able to fulfill the needs of their Chinese employees. This article discusses critical issues for foreign companies wishing to retain key employees, including compensation and benefits, criticism and emphasis of positive work performance, and boss and employee relationships.

Recruiting and Human Resources in China

By Ames Gross
Summer 1998
Published in SHRM’s International Focus

China ’s economy is growing at a phenomenal pace. In fact, by early next century, China will surpass the United States to become the largest economy in the world. As China has grown so quickly, the number of qualified managers in China has been unable to keep pace. This staffing shortage in China is so severe that one Motorola supervisor quoted by the Journal of Commerce remarked that, "We couldn’t bring over enough Taiwanese or Hong Kong managers…we’d just drain the rest of the world dry." This statement succinctly summarizes the human resources dilemma that China currently faces. In some industries, there are as many as ten available jobs for each qualified candidate. The shortage of skilled professionals has led to high job turnover rates and rapid wage inflation.

Meeting Diverse Staffing Needs in China

By Ames Gross and Timothy McDonald
Spring 1998
Published in GROing Connexions

Due to Asia’s rapid growth in recent years, the 21 st century has been referred to by many individuals as the Pacific Century. From 1985 to 1994, gross domestic product (GDP) growth rate in East Asia was 8.2 percent, compared with a 3 percent average GDP growth rate for industrialized countries. By the year 2020, it is expected that seven of the world’s 10 largest economies will be in Asia. Despite recent financial difficulties in Southeast Asia, there is no indication that overall growth in the region will end. The World Bank has estimated that during the next decade, Asian economies will grow twice as fast as economies in any other region.

CHINA: Managing the Culture Gap

By Ames Gross and Patricia Dyson
Winter 1997
Published in HR Focus

Lessons for American managers operating outside their home turf can often be expensive. Many of those lessons arise over cultural differences. China, in particular, poses some unique human resources challenges.

A successful HR program requires that managers be attentive to differing cultural expectations in all aspects of working relationships. HR must ensure that managers working in China are constantly attuned to the subtle attitudinal and motivational variations of the two business cultures.

The End of China’s Iron Rice Bowl

By Ames Gross and Patricia Dyson
February 1997
Published in HR Focus Magazine

Since China “opened up” to the outside world in the 1980s, companies operating there have had to adapt to swiftly changing economic and human resource environments. Language, local customs and cultural issues all impacted the manner in which human resource professionals worked in China. With the recent enactment of China’s labor law, human resource practitioners from abroad must now deal with the government’s attempt to fundamentally change the long-established system of employee-employer relations.

Localize Your Workforce in China

By Ames Gross
November 1996
Published in China Economic Review

Foreign enterprises in China face a host of problems that can be both frustrating and costly. Staffing a joint venture or wholly foreign-owned enterprise with local Chinese is a huge challenge and only a limited number of foreign companies have truly been successful in this endeavor. From the outset, a better understanding of the local workforce and the Chinese outlook towards work is essential to avoid pitfalls.

Strategies for Successfully Recruiting Staff for China

By Ames Gross and Laura Mancini
Fall 1996
Published in International HR Journal

International companies recruiting employees for their China operations face a unique challenge in locating qualified candidates. The skyrocketing growth of foreign investment in China since 1979 has created a drain on the supply of qualified management, finance, accounting, human resources, marketing, sales, and executive level personnel in the country. The total number of wholly foreign-owned enterprises in China has grown from a mere 48 in 1983 to 57,114 in 1995, while equity joint ventures have grown from a total of 190 in 1983 to 157,739 in 1995.1 This phenomenal growth has helped create a labor market in China that contrasts directly to labor markets in many Western countries. For example, there are, on average, ten qualified candidates for every one position in the U.S., while in China, ten job openings exist for every one qualified applicant. This situation makes for a highly fluid labor market in which persons having sought-after skills command higher and higher salaries.

Chinese Returnees: A Great Source of Management Talent

By Ames Gross
March 1996
Published in SHRM’s International HR Update

According to a Pacific Bridge survey of former junior and mid-level Chinese executives who have been studying or working in the United States, most of these individuals hope to work for U.S. companies or Sino-U.S. joint ventures after they return to China. With their western training, understanding of the local Chinese environment, and desire to work with U.S. firms, such future “returnees” form a useful pool of candidates for jobs with foreign-invested enterprises (FIEs) and joint ventures.

Mainland China Executives Studying in U.S. are Sources of FIE Management Employees

By Ames Gross
March 1996
Published in SHRM International HR Update

Judging by a recent survey of 50 junior or mid-level executives from mainland China who have been studying or working in the United States, most of these individuals plan to return to China to work for U.S. companies or Sino-U.S. joint ventures.
In fact, according to Pacific Bridge, a recruiting company that helps U.S. businesses with staffing operations in China and carried out this survey. “Upon returning to China, the majority of respondents will be seeking jobs on their own, so they form a useful pool of candidates for jobs with foreign-invested enterprises (FIEs) and joint ventures.”

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