Aligning Cultural and Economic Differences
Convincing each of the 11 municipalities in the GBA to pursue regional business objectives while prioritizing the well-being of the collective group will require some savvy and diplomatic governance. There will be hurdles to aligning the legal, economic, technical, workforce, and geographic complexities of the initiative.2 Companies in the GBA region must be open to innovative thinking. Leaders and policymakers must explore a variety of strategies and business models, from joint ventures and strategic partnerships to mergers and acquisitions. Each region must embrace these issues with a focus on long-term success.
The scope of cooperation and transparency required by the GBA is enormous. The comprehensive framework ensures there will be agreeable mechanisms in place to solve disputes on everything from workforce immigration legalities and environmental policies to project development benchmarks and operational standards. However, today, this complex relationship is largely theoretical as many companies from all over the GBA region continue to navigate cultural, regulatory and operational differences. It will take time to integrate the key processes that directly impact cross-border talent. For example, sometimes Mainland staff who work in Hong Kong are stuck in Shenzhen or Guangzhou for days or even weeks as they await visa extensions. Examples like these demonstrate the role human capital plays in the success of the GBA Initiative. Ultimately, figuring out how to manage human capital across borders and cultures will be critical.
To address these realities, many multinational companies are increasingly hiring Mainland graduates who studied in Hong Kong Universities. These graduates are familiar with cultures in both markets, making them suitable to work on GBA-related assignments. Additionally, many companies are actively working to manage the disruption caused by entrenched but disparate policies: differences in salaries, tax regimes, medical benefits, and the quality of education available to employees and their families. A fair distribution of pay and opportunity is essential to ensuring the free movement of talent in the GBA region.