The struggle between Google and China Government is increasingly intense. On the current status quo, from market research and interviews with HR personnels within Google China, I would like to share some key findings for potential actions you could take.
Background News:
Ruters: Rejecting censorship, Google threatens to quit China
Yahoo: Wall Street frets over Google's future in China
Interviews with Google HR:
- The trend of Crisis: In the all employee meeting this week, Google's CEO held a very strong position, he won't succumb to pressure from the Chinese government and will adhere to the company's business principle. In addition, with the parties to join forces in the fight, this will no longer be simply a commercial case, but instead political compete. Meanwhile, as China's performance only accounts for 1.5% of Google's revenue globally, this allows a greater tendency to get rid of troubles in China and get out.
- Employee Side: Google China's employees are currently watching the crisis and they have been told they could take pay leave this week. Because of the uncertainty about the future, there are many employees who have begun to actively look for opportunities in the external market.Unemployment arguments diffuse throughout Google China. According to the views of their HR , if Google decides to close their China operation, it's most likely to retain the R&D department and brought to the US.
- Other IT companies: Several IT companies have approached Google China. If GOOGLE closes its China operation and then they are willing to completely take over the company's employees. Now, Google China has total around 700 employees,of which R&D staff accounts for half of total employees. Can be expected that the talent battle to win Google China's employees has been launched.
In short, the crisis has gone to a even worse trend, once Google really closes its China operation, it will dramactically impact the industry layout, GOOGLE's partner in China, the users, as well as competition for talent. From HR perspective, if Google China's employees are target talent group of yours, you should pay close attention to it and proactively approach their employees, especially for R&D part.
Google Competitive Summary
The dominant market leader in the search engine space in most global markets – highest threat overall to technical talent recruitment and retention. Strong financial position, large developer base, and fast growth with strategic frameworks focusing on financial-incentive-proof result search, most relevant advertising and information organization. It is introducing innovative offerings in key markets including China and is investing in a local presence both directly and through channels to leverage high internet penetration rates and technology adoption.
In China, Google mainly competes with other IT companies for top R&D talent, however recent web applications are starting to make gains in the SMB market and could threaten others' cloud computing and SMB/SME strategies. Over half of their employees are involved in engineering endeavors and focus mainly on localization of Google’s current product offerings. It is estimated that of the total about 700 are employed by their in mainland China organizations and half are within their R&D. Major offices are located in Beijing (Headquarters) and Shanghai. Some employees work remotely managing partners in Guangzhou. In China, Google's business is divided into two distinct business divisions: R&D (Research & Development), and Sales/Business Development/Public Relations. Although these groups are separate divisions they are all organized under a single company.
Google's History in China
For me, the emotion is very complicated when I watch it. As a user, I have to admit that google search is my favorite; As the HR from Google's competitor in terms of talent, I also have to admit Google China has achieved a great success in terms of employer branding as well as the appeal for IT professionals. Now, faced with the loss of such a company in China, I felt only loss.
