In China the on-boarding process is a comparatively critical role in recruitment. It serves as an important means to reduce uncertainty for companies and candidates in the process of integrating a suitable professional into the organization. After a suitable candidate has been identified, the following steps should be taken into account:
Send candidates a letter of intent
The letter of intent or offer letter prior to signing the employment agreement is a good means to summarize the key employment conditions and to bridge the time period between identifying the right candidate and the eventual star ting date in the position. The letter of intent should be kept within one to two pages and contains the most critical terms of employment. Additionally a check-list should be drafted, which describes the next steps to be taken and materials to be provided by the candidate. This will provide assurance to the candidate and might trigger a buy-in effect, so that the candidate mentally already ‘joins’ the company before he signs the contract.
Consider candidates’ notice period
The common contractual notice period for candidates in China is one month. For more senior positions companies often customize employment contracts and add longer notice periods. In order to terminate an employment contract, candidates need to provide a formal letter of resignation to their super visor or the HR department. To reduce the risk and to remain in a comfortable negotiation position, a candidate typically expects a formal letter of intent from the new employer before he resigns from his existing position.
Manage time and feedback
As the competition for skilled professionals in China is fierce, the assumption can be made that a candidate commonly has several employment options at hand. Therefore a rapid and transparent follow-up with candidates is critical as it reduces the employment uncertainty for the candidate and leaves a professional impression. In contrast to more developed markets a structured on-boarding process is still not the rule in China.
Therefore, a professional handling can be an important differentiation factor and increase the chance of hiring talents.
Verbal and even written commitment is often provided by candidates without them actually being committed to a position. A candidate who has agreed during the onboarding inter vie w to star t in the position might back-off at the last minute to accept an offer from another company. Therefore, the hiring managers should take this point into account in China and counter it by keeping positive contact with other (less) suitable candidates as long as possible. Rejections should be communicated clearly, to avoid massive follow-up correspondence by rejected candidates, but in a positive manner, to maintain positive word-of-mouth.
Consider impact of hukou and location
A “hukou” refers to the system of residency permits which dates back to ancient China (see Chapter Two, Section Five for more information). This system is still enforced and requires citizens to register their households with the local city or district authorities. A household registration record officially identifies a person as a resident of an area and includes personal information such the name of the person, date of birth, the names of parents, and name of spouse, if married.
Traditionally the birth place is identified as an individual’s hukou. For university students, the hukou temporarily shifts to the study location. In order to permanently change a hukou, a Chinese citizen has to formally apply with the aspired hukou region’s authorities. Approval of such an application depends on the applicant’s educational background, occupation and employment history, and the process might take up to several years to be completed. An employer can facilitate such approval for its employees by formally endorsing the employee’s application. This can become a critical point of attraction for high potential candidates.
Unlike in earlier days of the People’s Republic the hukou no longer formally restricts Chinese citizens from seeking employment outside their hukou region. However, the hukou determines a citizen’s entitlement to social welfare and benefits, such as the housing fund and education. Therefore, somebody who works outside his huou region will generally not be able to participate in the social benefits of the employment region.
However, there are means to bridge this discrepancy by formally employing staff in their hukou area either through a branch office or through an employment agency but having them work in a another location. Furthermore, the employer can financially compensate for the financial disadvantage of not being able to optimally participate in the social benefits. This can further trigger the decision of candidates with hukous from other regions to join a company despite the given disadvantages.
