HONG KONG, May 30, 2016 /PRNewswire/ -- Organizations in China should focus on creating fair and inclusive performance management practices to compete effectively for the talent they will need as they move from simple production to higher-end, value-added services, according to new research from Bersin by Deloitte, Deloitte Consulting LLP. The research also shows such organizations are more likely to realize business and talent outcomes such as meeting or exceeding financial targets, identifying and developing leaders, and higher levels of agility, innovation and efficiency. Summarized in a WhatWorks® Brief, the research findings appear in "High-Impact Talent Management: Talent Management Maturity in China." A separate report, "Talent Management in China: Focus on Fairness and Performance Management," provides a process on how organizations in China can strengthen their talent management strategy and practices.
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The findings identified the talent practices that are used most effectively by organizations with strong business and talent outcomes that are operating in China or are part of the Global 2000. Global 2000 organizations are defined as the 454 companies in the Bersin by Deloitte survey population with more than US$750 million in annual revenue. The research also included 235 Chinese organizations with more than 100 employees. The research found that 29 percent of all the organizations surveyed globally have mature talent strategies and processes in place versus just 8 percent of surveyed organizations in China. Bersin by Deloitte defines high-maturity organizations as those having clear talent strategies that align to the business strategy, and that have a visible culture of leadership and learning, a deep understanding of and dialogue with talent, and practices that embrace diversity and inclusion.
"Despite China's large population, there is a relatively small pool of talent that can meet Chinese companies' talent needs as these organizations move to a knowledge-based economy, especially at the mid-level and senior management levels," said Stacia Sherman Garr, vice president, talent and HR research, Bersin by Deloitte, Deloitte Consulting LLP. "Demand has spiked as multi-national companies, Chinese companies, and state-owned enterprises all compete for the same talent. To help meet demand, Chinese organizations should begin by strengthening their focus on fairness in all talent management policies and activities."
A starting point could be to increase the procedural fairness of the performance appraisal process by standardizing it and making it more transparent. "The lack of clarity can impact the retention of younger employees and especially women," Garr said.
The research also shows that just 1 percent of Chinese organizations are at the lowest level of maturity, while 91 percent of organizations fall within Level 2 of the Bersin by Deloitte Talent Management Maturity Model. This likely indicates talent management in China is both gaining momentum and focusing on critical talent growth initiatives.
Based on its research, Bersin by Deloitte found that organizations operating in China should:
Given these findings, Bersin by Deloitte's related report, "Talent Management in China: Focus on Fairness and Performance Management," identifies a three-step process leaders should consider for improving talent management maturity. This process calls for organizations at lower levels of maturity to:
Those interested in learning more about Bersin by Deloitte or its WhatWorks® membership may email info@bersin.com or call +1 510 251 4400.
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