
- China | 23 August 2018

How has H&S established its presence in the China life sciences industry?
In the China life sciences industry, H&S has focused on two main segments: domestic Chinese Privately Owned Enterprises (POEs) and multinationals (MNCs). While both segments are important, our primary focus has been on multinationals for several reasons. Firstly, the MNC sector is highly competitive but relatively easier to execute compared to POEs, as professional services are still a new concept for the POE sector. Secondly, receivables from multinationals are generally more reliable. And thirdly, the talent pool for both sectors mainly comes from multinational companies, which allows us to offer specialized expertise that can serve all sectors in the market effectively.
H&S offers expertise not just in executive search but also in the leadership advisory space. Can you elaborate on how H&S has evolved its service?
H&S holds the distinction of being the first executive search firm established among the global top 5 firms. Over time, our revenue streams have shown that consulting and assessment services have gained an even greater share than the traditional search business within some firms. As a public company, our financial records provide easy access to understand our operating models and revenue streams. Under the leadership of our CEO, Krishnan Rajagopalan, we aim to strengthen our position in executive search while aggressively expanding into leadership consulting and assessment through Heidrick Consulting. We have made significant efforts to consolidate and expand our leadership consulting and assessment services, with the goal of increasing our impact in the market.
How would you describe the attitude towards services such as executive recruitment from domestic Chinese companies?
The attitude towards services like executive recruitment from domestic Chinese companies has evolved over the years. Thirty years ago, all companies in China’s market were public. However, with the emergence of the private sector, there has been a shift in the spending patterns of the “new” wealth in the market. The new wealth tends to have a more short-term mindset and prefers to invest in tangible assets. As a result, professional services like accounting, consulting, and executive search, which are intangible in nature, have traditionally been undervalued by the traditional mindset. However, there has been a positive sign of expenditure in areas such as auditing services or corporate advisory, indicating new market potential for executive recruitment. Leadership consulting and assessments are still relatively new concepts in the market and continue to be undervalued. Therefore, executive search will remain the core business for firms like ours in China while we anticipate the market maturity for other offered services.
How would you describe the current dynamic between supply and demand of talent in the China life sciences industry, and how do you expect this dynamic to evolve?
The current dynamic between supply and demand of talent in the China life sciences industry is imbalanced. China’s demand for talent far exceeds the available supply, which creates a significant demand for top-level management positions. As a result, the top layer of the industry enjoys high compensation, and there is a notable income gap between top-level positions and lower-level roles. The competition for the same pool of talented individuals drives this demand.
In terms of future evolution, the development of the management minus two layer will be crucial. Many young people in China now have the opportunity to study abroad, and it is advisable for them to stay in the overseas market as long as possible before returning. The belief is that solely receiving education abroad does not provide the comprehensive knowledge required to fit into the mainstream market. To gain perspective through exposure, it is important to read extensively, travel widely, and interact with diverse individuals.
How does H&S intend to support the China life sciences industry as it prepares to take the lead as the largest pharmaceutical market in the world?
H&S is uniquely positioned to support individuals, organizations, and the industry itself. When evaluating the quality of a leader, we consider three key attributes: decency, capabilities, and charisma. Decency, which encompasses integrity, compassion, and humility, is given the highest weight of 50%, followed by capabilities at 40% and charisma at 10%. Through our efforts, we aim to foster these qualities within the industry, which will contribute to building a solid foundation for a better world. By identifying and promoting leaders with these attributes, we believe we can make a positive impact on the China life sciences industry as it prepares to become the largest pharmaceutical market globally.