Executive Corner This is a fortnightly column featuring leaders in the executive search industry On the hunt for HR specialists by Chris Johnson Employers are increasingly looking for professionals with China experience The ebb and flow of the economy has an obvious impact not just on the overall job market, but also on demand for professionals in the field of human resources. "Market forces have certainly been at play," says Richard Letcher, managing director of Profile Search and Selection, which has a specialist team recruiting HR executives for positions in Hong Kong and elsewhere in Asia. "When the economy picks up, companies are prepared to spend more on HR and, in particular, on areas like organisational development (OD) and diversity training, which you did not see a few years ago," he explains. In his view, demand has been strong since March 2004, and especially so in the last six months. The result is that experienced candidates are now in short supply and salaries are being pushed up. In many cases, employers are looking for professionals with China experience, good Mandarin skills, and the ability to build strong relationships internally and, if necessary, with officialdom. Increasingly, they also want HR executives who can add value by cooperating closely with line managers and contributing to overall business strategy. "Some people say Hong Kong is a little behind places like the UK and the US in terms of best HR practices, but that is changing," Mr Letcher notes. "If economic conditions remain firm, there will be greater investment in specific skills and the positions will continue to become more strategic." In the meantime, he estimates that between 60 and 70 per cent of local HR positions are still for generalists. Such people are expected to handle various aspects of recruitment, training and development, and compensation and benefits. However, banks and multinationals are now leading the way in hiring specialists for each of these disciplines. They are also creating new positions which focus on areas like expatriate management and succession planning. Mr Letcher points out that, during the recession, "some companies viewed such functions as a bit of a luxury." However, their worth to the business has been recognised in their absence, and they are quickly being reinstated as market conditions improve. Consequently, over the past 12 months, he has helped to fill a mixture of replacement, newly created and "reopened" positions at all levels and in all disciplines. If economic conditions remain firm, there will be greater investment in specific skills Banking demand When assessing the level of demand in different industry sectors, Mr Letcher notes that technology-related companies and investment banks have been particularly strong. Retail banks, consumer product companies and manufacturers with operations in China are not far behind. This has been reflected in improved remuneration packages. "An HR director in a leading industry could start at around HK$1 million and, at the moment, the median salary for such positions in Hong Kong is about HK$1.2 million," Mr Letcher says. At more junior levels, the prospects are also good. Some candidates are even receiving several job offers and find that, generally speaking, broad-based HR skills are transferable between major industries, at least up to middle management level. Beyond that, employers usually want recruits with product knowledge and experience in their sector. "At the more senior level, you really need to hit the ground running in these roles," he says. "For example, if you take on a top HR position in a bank, but don't know what happens in the research department or on the trading floor, you will be eaten alive!" In terms of current trends, he notes that PRC nationals who have spent time abroad are an important part of the candidate pool for mainland-based jobs. "They can bring best practices to the table and potentially act as a bridge between western management and the local team," he says. Search tactics When recruiting on behalf of clients, Profile uses three main methods: headhunting, advertising and database selection. "Headhunting essentially involves picking suitable people out of other companies," Mr Letcher explains. The process begins with an in-house researcher mapping the market for an industry. Discreet enquires then follow to sound out potential candidates on their level of interest in taking things further. If it turns out that no suitable candidate can be found locally in Hong Kong, the next step is often to look in Singapore. Clients initiate the majority of all searches, but the opportunity always exists for consultancy firms to find good matches. "If I met someone with, for example, compensation and benefits or training consultancy skills, I would approach a client to see if they wanted to create a specialist role," Mr Letcher says. His advice for those considering a long-term career in the HR profession is to join a company which takes training and development seriously and offers a mentorship programme. "That's where you will learn the best HR practices and have the chance to gain broader experience, " he says. Strategic thinking With the upturn in the economy, companies are prepared to invest more in HR positions, including specialist roles Employers favour HR executives with China experience and a more strategic outlook Banks and technology companies are leading the way in creating new HR positions Senior-level HR executives should have industry-specific knowledge Taken from Career Times 26 August 2005 Your comments are welcome at [email protected]