According to the report “Risky Business – Focusing on Innovations and Talents in a Volatile World” (Research report TCB-R-1491-12-RR) the focus on Human Capital is even more important for Asian CEOs than for CEOs in Europe or North America.
Asian CEOs state that solving human capital issues such as attracting, engaging, and training highly skilled, innovative people and to develop effective leaders, who can drive the business, is THE key to success.
In China CEOs rank Human Capital as their very top challenge, which also is my impression after having met with a number of Chinese leaders.
With an aging population and low fertility rates the low population growth is beginning to show a decrease of availability of young working-age people. Even though the number of people earning university degrees in China has increased, young people coming into the work force often lack the practical experience and the social emotional skills that are required to be a leader in the business world. (McKinsey Global Inst. 2005) According to my discussions with CEOs, “the one-child policy” probably also plays a role here.
Young Chinese people need to be better equipped in people skills if they are going to develop into the world class leaders that China needs. Training of people skills, that is social-emotional skills, therefor becomes one the top priorities for organizations in China.