China Hiring Report

By Frank Mulligan - Recruit China

Every quarter Hudson come out with a hiring report for Asia. The most recent version seems to have spawned another report with a specific focus on China. Or maybe I just havenít seen it before; a more likely answer. Itís subtitled China - Employment and HR Trends.

The report is forward looking and based on primary research. It takes the information from direct interviews with thousands of line managers in the Asia Pacific region so the result is likely to be more statistically valid than the typical hiring research that you often see in the market.

If you have not gotten a copy or donít have time to read the report, here is a summary:

Employment expectations this quarter have risen, after falling for four consecutive quarters. If you thought it was bad before, just wait a little until this wave of hiring starts. Itís just after Chinese New Year in China now and the bonuses have been paid. Time for another big wave.

The banking sector, which was opened up significantly in November, is cited as the hottest hiring market, with 77% of respondents saying they will increase hiring.
New hire salaries are rising significantly and one quarter of managers plan to increase new hire salaries by more than 20%. With average new hire increases of between 25%-30% this indicates that only one quarter of managers plan to match the market. Not a good sign for long-term retention.

Bonuses are static. This is just a personal opinion but the sense I get is that companies are promoting too fast, and the turnover high, so it is hard to see how people can be performing to their highest level, and truly deservant of a big bonus. Performance appraisals might also be just average in the majority of the reporting companies but the report does not cover this issue. Just a suspicion on my part.

Turnover is still high and 33% of respondents say it exceeded 10% last year.

Perceptions of limited career progression and staff poaching are the main cause of staff turnover. It is worth noting that the perception of limited career progression is also be a function of the overly high expectations of staff in China. If you have had nothing but growing salaries, promotions and bonuses for many years it is hard to wean yourself off them.

Email frank.mulligan@recruit-china.com
Frank Mulliganís blog - english.talent-software.com