10 steps to starting a business in China
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E-mail Agencies, August 31, 2012
9. Hire a staff.
Hiring in China is a delicate process, especially when it comes to hiring managers. Don't assume that just because a person's English is impeccable they'll be able to run the business properly.
"If all things are equal," Frisbie says, "the language skills can be greatly beneficial, but it's far more important to have a smart business person in that role who's going to run the company the way you want it run."
In Hoffman's case, he tracked down a Chinese public relations professional and asked that she come out to the company's headquarters in Silicon Valley to learn the ropes for several months. She then returned to China with all the company's values and practices in mind and started the business.
"I think that really served us well," he remembers.
There are other options, of course. Try reaching out to human resources consultants and headhunting agencies in China, and don't disregard American-born Chinese or Chinese citizens who were schooled in America, either.
"Seriously consider using talent that's had some overseas experience that have been able to bridge the U.S. community and the Chinese business world," Collins recommends.
Good talent doesn't come cheap, according to the experts, so if you want the best, you have to be willing to pay them what they're worth.
"If you go to China expecting a deal, you'll be sorely disappointed," Hoffman says.
Once you have trusted managers in place, they should be able to assist you in hiring the rest of the staff. Remember, though, you need to have a contract for every employee you hire, as well as an employee manual. Without either, says Harris, "it may become nearly impossible for you to fire anyone."
"In China, you need a reason to fire someone," he explains. "That reason needs to be set down in your employee manual, otherwise your ex-employees can sue you for a lot of wages."
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