THERE IS AN acknowledged shortage of executive talent in China, so many firms face difficulties in the recruitment and retention of good staff. In these circumstances, it is easy to be fooled or cajoled into hiring someone who is unsuitable for the job.
If you have been struggling to find a high-calibre candidate and then meet an apparently intelligent and articulate individual on a train or even in a bar, it is tempting to believe that fate has lent a hand. You forget the basics and rush into discussions about responsibilities and contractual terms. A year or two later, the company may well be counting the cost of your rash decision to hire.
Just consider the case of Frankie, a capable young mainland businessman, well in tune with the get-rich-quick mentality of recent years.
He won a scholarship to study in the United States, earned a PhD, and started working for an international law firm, specialising in tax law and restructuring.
Subsequently, he returned to Shanghai and accepted a senior position with a European manufacturing company. He soon developed a group of loyal cronies who colluded to steal from the firm through a variety of scams which involved investments and expenditure on advertising.
However, suspicion grew about his integrity and eventually led to his own resignation and that of his main associates. Soon, though, they were all working for another multinational which made a well-known brand of consumer hardware.
Frankie was appointed country manager and, before long, was collaborating on illicit schemes with senior colleagues in marketing, sales, finance and human resources. His network even extended to contacts working in government, state-owned enterprises (SOEs), and overseas financial institutions.
