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Human Resources and Payroll in China 2016-2017 (5th Edition) -
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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 supervisor 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/her 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 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, professional handling can be an important
differentiation factor and increase the chance of hiring talent.
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 on-boarding interview to start in
the position might back-off at the last minute to accept an offer from another company. Therefore,
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 being inundated by follow-up correspondence from rejected candidates, but should
be done in a courteous manner, to maintain positive word-of-mouth.
Consider Impact of Hukou and Location
A hukou (pronounced hoo-kou) is a kind of domestic passport of all Chinese citizens. 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 his/her parents, and
spouse, if married.
Traditionally one’s birthplace is identified as the individual’s hukou. For university students, the hukou
temporarily shifts to their study location. In order to permanently change a hukou, a Chinese citizen
has to formally apply with the authorities in the target hukou region. 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.