Situation: A company started small with everyone wearing many hats including the person in charge of HR. They wish to create a more formal HR structure with professional advice, but don’t yet want to hire a full-time HR professional. How do you create HR using outside resources?
Advice from the CEOs:
One company outsources their full HR function. Services include:
Putting records in order and maintaining them.
Developing different hiring packages for different levels of employees.
Keeping the company and employees updated on compliance regulations.
Coordinating on-boarding and training.
There are several national HR and personnel outsourcing companies that can help. Examples include Paychex and ADT. There are also a large number of local providers. Network with your business peers or check out your local Chamber of Commerce to learn who these providers are.
What about training?
Outsourced HR professionals can organize training for formal certifications and some aspects of job skills training.
Training in company culture should be done by company leadership. Outsourced HR can organize schedules for this. The key point is that company leadership is the face of the company and the foundation of company culture. This can’t be effectively outsourced.
In some cases, training can be done via video. Outsourced HR can help to plan and coordinate creation of the videos, and can then schedule video training for new employees.
Have your in-house person join an HR roundtable to embellish their own training.
Situation: A company has an opportunity to build an office in China. Their principal objective is to reduce their cost of providing services. A partner company has offered them space in its existing office in China. What is your experience working with Chinese culture? How do you set up an office in China?
Advice from the CEOs:
Hire someone in your US office with an engineering background who is fluent both in Mandarin and in the subtleties of Chinese language and culture. Fluency in Chinese language and culture is particularly critical when you are dealing with difficult process issues.
Investigate local organizations such as the Silicon Valley Chinese Engineers Association. Through these organizations you may find candidates for this role who are also excellent engineers and additions to your team.
Employee loyalty issues in China will be more challenging than in the US. Chinese employees want to build their resumes as quickly as possible and perceive that job-hopping will facilitate this, just as was the case during the dot.com boom in Silicon Valley.
Offer a significant carrot to Chinese employees – after X years of work for us in China, you get Y months of work, at our expense, in our US office. This is a much sought-after experience for Chinese employees.
Be prepared to deal with departure soon after return to China, or employees declining to return to China at the end of their US stint.
Build a stronger process documentation system than you need in the US to assure both that work is done to your standards, and so that you can easily replace talent lost to turnover.
Have a recruiting program based in China to fill your personnel needs.
You will experience a culture clash when it comes to the value placed on equity and in understanding the meaning of a contract. For China in its current state of development, neither term is well-established by US standards.
Time tracking is not clean cut in China and vacation time needs differ. An example is the month of February for Chinese New Year.
Situation: An early stage company will staff-up over the next year. In the past the CEO has recruited individuals with big company experience and solid resumes, only to find that they had difficulty transitioning to the hands-on responsibility of a small company. How do you find candidates who are highly experienced but who can also excel in a small company environment?
Advice from the CEOs:
The best candidates are not in the job-search pool. They are currently working but open to a change. Some will wish to return to a more hands-on situation.
Let people know that you are looking for “the best” and have a great opportunity. Create some buzz.
Go to your network ask “who do you know?” Don’t be shy!
Look for achievers – with proven performance in companies of the size that you plan to be in 12-18 months. Check their references carefully.
What can we do now, while we seek the right people?
Use contractors and consultants. These people are more entrepreneurial, self-starting, and self-accountable. Monitor their work. If they are good, add them to your team as permanent employees.
Develop a milestone-based personnel plan as part of your business plan:
When we hit Milestone A, we will need an operations manager.
When we hit Milestone B, we will need channel or market development expertise.
Conduct case studies of how other companies in your or similar spaces have facilitated their scale-ups. What worked? What didn’t? Why?