Problem one: Outdated concepts in enterprise talent governance. Problem two: The overall quality of the enterprise's top management affects the retention of talent within the company. Problem three: Weak systematicness in corporate training. Problem four: An imperfect employee promotion system within the enterprise. Problem five: Enterprises value high ability over high integrity in talents. Problem six: A widespread lack of career development planning within the company. Problem seven: Line managers (mainly referring to department heads) lack human capital management skills.
Problem one: Outdated concepts in enterprise talent governance. Currently, many Chinese enterprises have not truly established a talent strategy concept and often view human capital as merely a labor cost in terms of management thinking. Specifically, this is manifested as follows: when the enterprise is in rapid growth and business is expanding, at this time due to a strong reliance on talent, the company places more emphasis on talent; however, once the company's operations encounter difficulties or the business is contracting, then talent is seen as a burden for the enterprise, and there are even instances where talent is let go from the company. Many companies exhibit a tendency to emphasize use over cultivation during the process of utilizing talent. Specifically, this is reflected in: companies either underinvesting or not investing at all in training and learning, some companies even if they do conduct training but place little importance on tracking and feedback regarding the training results. There are also companies that regard training and talent development as solely the responsibility of the human resources department. Best practices indicate: in excellent companies, the top 100 employees are personally interviewed by the CEO, and the CEO of an excellent company is the first human resources director of the enterprise.
A strong nation must first strengthen its enterprises, and strengthening enterprises must first focus on human capital. For a country, international competition for talent is increasingly becoming a key factor in determining a nation’s standing in the world. In the past 30 years, the Chinese economy has achieved globally remarkable rapid growth. In the future, with the deepening of reform and opening up, as well as facing major actions such as the transformation and upgrading of the national economic industrial structure, China's demand for various high-level talents will reach an unprecedented urgency. For enterprises, creating shareholder value and ensuring sustainable operation are crucial tasks for the survival of the company, and talent is the decisive factor that enables the company to successfully achieve these important tasks. How to attract, retain, and motivate talents who can resonate with the company through effective talent governance mechanisms, and establish a corporate culture and work atmosphere that encourages employees to be willing to fight alongside the company, will test the abilities and determination of the top executives of the enterprise.
However, in my work in management consulting, I have come into contact with many Chinese enterprises. While interacting with these enterprises and providing them with management consulting services, I have found that many Chinese enterprises face numerous issues in talent governance. If these problems are not properly resolved, it will inevitably affect the journey of Chinese enterprises towards internationalization. Here is an analysis of these issues:
Problem two: The comprehensive quality of the enterprise's top management influences the retention of talent. The high turnover rate of talent in current Chinese enterprises means that the costs invested in talent have been "completely lost", exposing the dilemmas and shortcomings of talent governance in Chinese enterprises. The lack of visionary, passionate, and influential leaders is the most critical factor leading to the loss of talent in Chinese enterprises. For the top executives of Chinese enterprises: their character, integrity, ethics, and honesty will all affect the loyalty of talent towards the company. Top executives of excellent enterprises demonstrate superior comprehensive qualities in the following aspects: first, possessing honest and upright character; second, having excellent decision-making and judgment skills; third, leading by example and maintaining consistency inside and outside; lastly, promoting an open corporate culture, encouraging sharing and communication, and allowing failure. Only leaders with such traits...
Many Chinese enterprises face numerous issues in talent governance. If these problems are not properly resolved, it will inevitably impact the journey of Chinese enterprises towards internationalization.