What’s Happening Now

What’s Happening Now
By Frank Mulligan, Talent Software

I often get asked what I am seeing in the hiring market in China.

We’re not headhunters but our online hiring systems, broad range of clients and hiring metrics give us two things.

First is a broad top-down view of what is happening in different industies. And the second is drilled-down details of elements of the hiring process in China.

So here goes.

Chinese New Year - It’s over and the number of people holding back from signing a Job Offer is reducing, especially in sales. The Job Offer to Refusal ratio is creeping back up slowly.

But watch out for the Early Exit ratio now that the holidays are over. This comes from professionals who get a better offer during the Chinese New Year holidays. Happens every year and it still amazes me that people would still be surprised by this.

New Players - Banking and insurance seems to be taking off in China now and those with skills in this area are in big demand. Watch out if you are in related financial services.

The early signs are that resignations will begin to increase. The Job Offer to Refusal will increase, as will No Shows and Quick Exits.

Retail, hospitality and travel are also experiencing severe difficulties in hiring but this has been true for about 2 years.

Salaries - Still rising of course and our statistics indicate that just to get someone to change jobs is going to cost you an increase of 25% over the candidates current salary.

Offer him less and the chances of closing him go down, exponentially. This creates negative equity with existing staff, who are getting increases nearer 9%, according to Hewitt.

Asia Pacific HQ - As companies move their Asia Pacific HQ to China positions are opening up for expatriates and senior local Chinese professionals. These positions are offering people a strong incentive to stay in China, or are offering career positions to those who have decided to live here.

Expansion - Most companies in China are expanding sales and production capacity.

Additionally, many are moving operations out of the main employment centres of Beijing, Shanghai and Shenzhen. The second tier cities that they are moving to lack skills and the people they have now do not want to move there. Production does eventually start but instead of it being contingent on the investment timing it is contingent on getting the right people.

Applications - Online and offline applications are definitely down. Candidates have many choices in China so no surprises here.

Comments to: frank.mulligan@recruit-china.com