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2012 Greater China Region and Singapore
Talent Environment Report
Produced by the MRI China Group
Survey respondents profiles




Respondents’ profiles from Mainland China, Hong Kong, Taiwan and Singapore

                                                                                                  t                                                            y
                                                                                    t          en                                                           og            il                      ce
                                                                                                                                                                                                    s
                                                                                                                                                                                                                                 ss
                                                                      t          en                                                        s              ol            ta                     vi                              le
                                                                   en          m           em           er
                                                                                                           s
                                                                                                                                        ce            hn             re                      er
                                                                             e          ag                                           vi             ec            nd          &            ls                               or
                                                               em          ag         an              ag                           er              t            a          es                                          ld       d
                                                             ag          an                        an                            ls              &           er         nc re            na                       so          ol
                                                           an           m           m            m                             ia              y                      ie ca           io                        ar          rs re
                                                                     or         dl
                                                                                  e
                                                                                                                             nc              tr             m      sc lth           ss        er                          ea mo
                                   l                      m                                   or         er                               us             su                       fe                          ye
                                 ta                     p         ni          id           ni         th                   na            d             n         fe a            o          th                           y
                               To                     To        Se          M           Ju          O                    Fi           In            Co        Li he            Pr          O             30            31 or

                                                                 Management levels                                                          Industry sectors                                                   Age


 Total                    4968                        3.8        33.6          41.7          16        4.8             10.8         54.8          16           7.2         9.6         1.7               10.3          89.7

 Mainland China           3811                        3.4        34.9          42.1          15        4.6             7.1          59.7          16.1         7.1         8.6         1.4               10.9          89.1

 Hong Kong                532                         7          31.2          38.9          18.2      4.7             31.6         26.3          20.3         3.7         14.6        3.6               8.1           91.9

 Taiwan                   294                         2.4        33            44.9          15        4.8             18.8         44.8          13.7         14.7        7.5         0.7               8.4           91.6

 Singapore                325                         3.7        23.4          38.5          26.2      8.3             13.5         51.7          8.8          8.1         15.4        2.5               9             91

                                                % in numerals




                                                                                             s                                                                     er
                                                                                          i e na              a                                                 gh        in
                                                                                                                                                                             a
                                                                                                                                                                                                                  ica
                                                                 a               a      an Chi             in                                          a      hi       Ch
                                                               in             in      p d            ny Ch                                           in or                      ng                             er                   d
                                                            Ch             C h
                                                                                    omlan
                                                                                                    a d
                                                                                                  p n                               u         in d C
                                                                                                                                                    h e              d
                                                                                                                                                                             Ko
                                                                                                                                                                                                   re
                                                                                                                                                                                                           Am
                                                                                                                                                                                                                                 /
                                                                                                                                                                                                                               ia n
                                                          d              d                                             i          o                     e        an                  n          po                  pe       al la
                                           e           an         e     n          c            om nla             gh
                                                                                                                      a         zh         er n       gr       nl         g         a          a        th       ro        tr ea
                                      al            nl          id inla
                                                                                  n n
                                                                               ig ai         l C ai ing                      ng          th nla de           ai        on         iw        ng        or                 us w Z
                        al
                           e         m           ai          ts a            re M         ca M ej               an          a         l o ai                M        H          Ta       Si         N         Eu        A
                       M           Fe           M          ou M           Fo in        Lo in       B        Sh           Gu        Al M         UG       in       in         in       in         in        in         in Ne

                        Gender                  Born in...            Company type                            Location                                    Undergraduate degree or higher*


  Total                72.1      27.9

  Mainland China       74.9      25.1          82.3       17.7        79.5       79.5%
                                                                                  20.5            20     45.9         4.6        29.4         89.8 73.2 4.0
                                                                                                                                                     89.8                  1.9        3.0      10.6          10.7           3.2

  Hong Kong            60.2      39.8                                                                                                         85.8 4.0
                                                                                                                                                     85.8 41.7 1.0                    2.1      25.8          21.4           10.1

  Taiwan               65.5      34.5                                                                                                         91.6 0.8
                                                                                                                                                     91.6 0.4              76.7       2.0      27.3          7.2            0.8

  Singapore            65.6      34.4                                                                                                         84.0 6.6
                                                                                                                                                     84.0 2.1              0.7        37.8 8.7               19.1           16.7

                     % in numerals                                                                                                          *some respondents attended universities in more than one location




Talent on the move
Are you seeking to make a job change in the next 12 months? By location

Mainland                                        Hong Kong                                                    Taiwan                                                          Singapore

                       33.2%                                                           27.8%                                                        38.1%                                                              39.5%
             15.5%     Yes                                             21.1%           Yes
                                                                                                                                   13.5%            Yes                                                                Yes
             No                                                        No
                                                                                                                                   No                                                               17.8%
                                                                                                                                                                                                    No

                     51.3%                                                        51.1%                                                          48.4%                                                              42.7%
                     Maybe                                                        Maybe                                                          Maybe                                                              Maybe
Introduction




                                                                              •	Work life-balance remains a key
In November 2011, MRIC / The MRI China
                                                                               motivator to move to a new role
Group conducted its second online survey                                       but unlike in 2010 – perhaps a
contacting over 120,000 professionals and                                      reflection of more uncertain times
managers in our database.                                                      - confidence in the leadership
                                                                               and strategic direction of the
                                                                               prospective employer becomes
                                                                               more important than work/life
Based on respondents’ feedback of      interesting to look into the drivers    balance.
almost 5,000 talent across Mainland    and motivations of a workforce
China, Hong Kong, Taiwan and           which is, nevertheless, structurally   •	A good company culture, across
Singapore, their desire to change      on the move for a better                markets and generations is
jobs in 2012 remains very strong.      “something.”                            defined primarily as a company
Talent retention in 2012 will remain                                           that has a clear vision for the
a core concern for employers.          The objective of this survey is to      business and that supports
Offers and compensation levels         help business and HR leaders to         promotion on merit.
received in 2011 explain such          understand what is on the mind
confidence as well as two market-      of professional people in this         •	Health and benefits are also key
driven reasons:                        region so that they approach their      components of work/life balance
                                       retention and attraction strategies     and of attraction, considered in
1. A natural knock-on effect from      in the most effective way.              Mainland China to be as critical as
talent movement during the                                                     compensation.
2008/2009 global economic crisis.      This research is in evolution.
Having been in the roles that they     We added two geographies,              •	About 40% of respondents are
landed in for a solid three years,     Taiwan and Singapore, and               willing to relocate overseas,
Asia talent is ready for a career      more respondents to our survey,         primarily to North America and
step and the Year of the Dragon        enabling us to go deeper in             Europe, with Shanghai being the
is a good time to consider career      various workforce segments. We          top destination in Asia.
moves; and                             also explored the dimension of
                                       work/life balance, a key finding of    We hope that you will find this
2. The strength with which most        increasing sensitivity in 2010, and    report of interest and that you
sectors in Asia are weathering the     also company culture which, in         will feel better informed to deal
more recent economic crisis and        our recruiters’ experience, is a key   with the talent challenges ahead.
China’s rise to the second largest     driver of success or failure beyond    I would like to thank our survey
economy in the world, has created      any technical expertise.               respondents, our clients who
confidence at a mid-management                                                kindly provided insights on our
level and below that China - and       Clear patterns emerged albeit          findings and Anthony Pettifer of
the countries that are major Asia      with nuances across markets,           Brandstorm Asia who supported us
business partners - are coming         generations or gender:                 on questionnaire design and data
of age, while North America and                                               analysis.
Europe flounder.                       •	Besides compensation, people
                                        stay in their company because
That said, the reality, and more        of the career development
specifically compensation levels,       opportunities, the company
may be tempered by the global           culture and a good work/life
economy and its impact on this          balance.
region; this makes it even more


                                                                                                                     1
2012 Talent Environment Report – Greater China Region and Singapore


Companies are still at war for talent




Job offers and acceptances in the last 18 month: by location

Mainland                                 Hong Kong                             Taiwan                                Singapore
          23.0%                                                                       22.2%                                  18.3%
          No offers                             31.2%                                 No offers
                                                                                                                             No offers
                                                No offers                                                 Accepted
                              Accepted
                                                                                                  17.1%   offer
                      20.9%   offer                                                                                                               Accepted
    45.1%                                                                                                              46%               28.4%
                                          40.1%             23.1%   Accepted    49.6%                                  Offer not
                                                                                                                                                  offer
    Offer not                             Offer not                 offer       Offer not
    accepted                              accepted                              accepted      11.1%                    accepted
                10.9%
                        Resigned but                    5.7%                                                                        7.3%
                        then accepted                                                               Resigned but
                                                             Resigned but                           then accepted                          Resigned but
                        counter offer                        then accepted                                                                 then accepted
                                                                                                    counter offer
                                                             counter offer                                                                 counter offer



Job markets were active until the
end of 2011 since 70 to 80% of
respondents had received at least a
job offer in the last 18 months and
only 40% to 50% of respondents had
declined a move. Behaviors on counter
offers are similar in Mainland China
and Taiwan where their success rate
is about one third. In Hong Kong
and Singapore, respondents are
significantly less responsive to
counter offers.



                                                               “The economy of China is still developing fast and
                                                               high caliber candidates are still very difficult to find
                                                               and attract; every one of our competitors is also
                                                               looking for good talent.”

                                                                                            Tools and automotive products company, China




2
Greater China Region and Singapore


Retention: career opportunity matters most in Mainland China,
work/life balance in Hong Kong



In Mainland China,                           Most important motivators to stay in current job:
                                             Mainland China and Hong Kong
work/life balance is
also key and in both                         “Staying in current job”
locations, company                           % of respondents citing motivator as one of their ‘top 2’
                                                                                                                                                                                                              Mainland China	

culture ranks highly.                                                                                                                                                                                         Hong Kong




Compensation is also a key retention
driver in Hong Kong, ahead of the
career opportunity. Conversely, in
Mainland China, the opportunity for
career development prevails over
compensation.


In both places, company leadership
                                             Individual                                                    Financial                  Company
and strategic direction are also
                                             Opportunity to
                                                   increase
                                              responsibility/
                                                 challenges

                                                                    Clearer
                                                                career path


                                                                              Location


                                                                                                  Better
                                                                                             immediate
                                                                                          reporting line

                                                                                                               Increased
                                                                                                           compensation/
                                                                                                             commission

                                                                                                                             Better
                                                                                                                           benefits
                                                                                                                           package

                                                                                                                                                Better
                                                                                                                                      company/culture/
                                                                                                                                               people

                                                                                                                                                           Better
                                                                                                                                                         work/life
                                                                                                                                                          balance

                                                                                                                                                                     Leadership/
                                                                                                                                                                        strategic
                                                                                                                                                                       direction

                                                                                                                                                                                          Better
                                                                                                                                                                                    brand image


                                                                                                                                                                                                   Job security


                                                                                                                                                                                                                  Training programs/
                                                                                                                                                                                                                  future educational
                                                                                                                                                                                                                      reimbursement

                                                                                                                                                                                                                                          Overseas
                                                                                                                                                                                                                                       assignment
                                                                                                                                                                                                                                         potential
important, well ahead of the
conventional belief that a company
brand image and the immediate
reporting line are motivators that
count most.                                  Low base of sample size in Singapore and Taiwan respondents ‘staying in current job’



Progress is a key measure of
satisfaction. Every high-potential,
highly-rated talent aspires to
progress in his career and accordingly
in income. These data show the
importance of holding career
conversations and managing
expectations with timelines and steps
toward career development. Not
surprisingly, people want to feel good
at work with like-minded colleagues;
for most, a good workplace is also
an environment that helps them
fulfill, or blends nicely with, their life
interests.
                                                                                         “In 2012, we will spend even more time
                                                                                         to understand staff needs and look
                                                                                         for possible restructuring to keep staff
                                                                                         happy and show them that they have a
                                                                                         prospect in the firm.”

                                                                                                                                                            Financial company, China




                                                                                                                                                                                                                                               3
2012 Talent Environment Report – Greater China Region and Singapore

  Clear strategies for corporate and personal success
  are as high on change agenda as compensation



Most important motivators to change jobs: by location
“definitely seeking”                                                                                                                                                                                                                “definitely & maybe seeking”
% of respondents citing motivator as one of their ‘top 2’
                                                                                                                                                                                                       Mainland China	
                                                                                                                                                                                                       Hong Kong
                                                                                                                                                                                                       Taiwan
                                                                                                                                                                                                       Singapore




 Individual                                                     Financial                            Company                                                                                                                                  Financial




                                                                                                                                                                                                                                                         Better
                                                                                                                                                                                                                                              benefits package

                                                                                                                                                                                                                                                                      Increased
                                                                                                                                                                                                                                                                  compensation/
                                                                                                                                                                                                                                                                    commission
Opportunity to
      increase
 responsibility/
    challenges

                       Clearer
                   career path


                                 Location


                                            Better immediate
                                               reporting line


                                                                            Better
                                                                 benefits package

                                                                                         Increased
                                                                                     compensation/
                                                                                       commission


                                                                                                     Increased job
                                                                                                           security

                                                                                                                       Better training
                                                                                                                      programs/future
                                                                                                                          educational
                                                                                                                      reimbursements

                                                                                                                                         Better company/
                                                                                                                                          culture/people


                                                                                                                                                                   Leadership/
                                                                                                                                                            strategic direction


                                                                                                                                                                                  Better work/life
                                                                                                                                                                                          balance


                                                                                                                                                                                                             Better
                                                                                                                                                                                                       brand image

                                                                                                                                                                                                                         Overseas
                                                                                                                                                                                                                      assignment
                                                                                                                                                                                                                        potential




                                                                 “I have consciously implemented a better
                                                                 benefits program (compared with rest of Asia)
                                                                 when we started in China. It results in more net
                                                                 take-home pay.”

                                                                                                                                                                                                     Chemicals company, China



                                                                 “The China market is hot and good candidates
                                                                 have a lot of opportunities and they are
                                                                 comparing not only the salary, but also benefits
                                                                 and working environment, like annual leave,
                                                                 housing and car allowance, trip allowance.”

                                                                                                                                                           Automotive products company, China




 4
Greater China Region and Singapore




Unsurprisingly in                            Finally, work/life balance, which is
                                             an important driver of retention in
Mainland China, people                       Mainland China and Hong Kong,
definitely seeking to                        is not as important a consideration
change jobs are primarily                    for people seeking a change. This
                                             could be explained by the fact that
attracted to a new job
                                             economic change is still moving at
for the same reason                          both a personal and corporate level in
that retains them:                           China at a fast pace. Talent perceive a
more responsibility and                      greater opportunity of increasing their
                                             overall quality of life over the longer
challenge, and promotion                     term by putting career development
opportunity.                                 ahead of work/life balance in the short
                                             term, to enhance overall life quality for
A good company culture is as important       themselves and their family.
as compensation in Mainland China. In
Taiwan, it is company leadership and         What does it mean for prospective
strategic direction that prevails over       employers?                                    “In 2012, we will
compensation.
                                                                                           implement a Talent
                                             • There seem to be differences in terms
                                                                                           Integration Strategy that
When we include respondents “maybe            of talent behaviors in Mainland China
seeking” to change jobs, financial drivers
                                                                                           entails understanding of
                                              and Taiwan, on one hand, and Hong
prevail across all locations.                 Kong and Singapore, on the other,
                                                                                           organizational capabilities,
                                              but the ability to articulate a good         workforce planning,
In Hong Kong and Singapore, clear             career plan is essential everywhere and      recruitment, onboarding
strategic direction and a clear career        could potentially mitigate demands for       and integration of
path for the prospective employee are         increased compensation.                      staff. Overall career
important ‘soft’ drivers over the promise
                                                                                           development will be
of a better company culture, but a bit       •	A good benefits package seems to be a
less prevalent than compensation.
                                                                                           closely tracked.”
                                              cost-effective attraction tool, especially
                                              in Mainland China.
                                                                                                Industrial company, Singapore
The attraction of a better benefits
package seems to be higher in Mainland       •	The ability to articulate the strategic
China than compensation. Taiwan also          direction of the business and what
reflects similar sentiment.                   makes the company culture, is a plus to
                                              attract prospective candidates. They are
                                              looking for a successful business where
                                              they can cultivate their career. At MRIC,
                                              we find that prospective employers,
                                              especially hiring managers, are not
                                              always aware of that and may not
                                              articulate their company “story” well
                                              enough.




                                                                                                                            5
2012 Talent Environment Report – Greater China Region and Singapore


Wanted: a clear vision and meritocracy




                                 Most important aspects of company culture:
                                 by location
                                 % of respondents citing aspects as one of their ‘top 2’




                                                                                                                                                         Mainland China	
                                                                                                                                                         Hong Kong
                                                                                                                                                         Taiwan
                                                                                                                                                         Singapore
                                   Clear vision
                                     of where
                                    it is going


                                                      Belief in
                                                  fairness and
                                                   promotion
                                                      on merit


                                                                     The people
                                                                  that make up
                                                                   the company



                                                                                  A set of values
                                                                                   that are lived
                                                                                     up to by all



                                                                                                      Admired
                                                                                                    leadership



                                                                                                                       Transparency
                                                                                                                      and corporate
                                                                                                                        governance




                                                                                                                                      Brand image




                                                                                                                                                     Corporate
                                                                                                                                                    citizenship




                                                                                                                                                                   Environmental
                                                                                                                                                                         concern
                                                                                                                 For all respondents in
                                                                                                                 the Greater China region
                                                                                                                 and Singapore, a clear
                                                                                                                 vision of where their
     “Leadership, culture, and values become                                                                     company is going is the
     equally important drivers for employees                                                                     most important aspect of
     to stay with the company.”                                                                                  company culture.
                        Global industrial company, Taiwan                                                        This is particularly strong in Taiwan
                                                                                                                 and consistent with the high rating
                                                                                                                 of Taiwanese respondents on
                                                                                                                 the leadership/strategic direction
                                                                                                                 dimension as a driver of job change;
     “For senior people, a culture of collaboration
                                                                                                                 there may be a proclivity in this
     is a big driver. The ability to get work done                                                               country towards strong leadership
     efficiently is very important..”                                                                            figureheads at the helm of businesses.

                                            Global bank, Hong Kong




6
Greater China Region and Singapore




Most important aspects of company culture:
Mainland China local-born and foreign-born
% of respondents citing aspects as one of their ‘top 2’




                                                                                                                      Mainland China local-born
                                                                                                                      Mainland China foreign-born
 Clear vision
   of where
  it is going


                    Belief in
                fairness and
                 promotion
                    on merit


                                   The people
                                that make up
                                 the company



                                                A set of values
                                                 that are lived
                                                   up to by all



                                                                    Admired
                                                                  leadership



                                                                                    Transparency
                                                                                   and corporate
                                                                                     governance




                                                                                                   Brand image




                                                                                                                  Corporate
                                                                                                                 citizenship




                                                                                                                                Environmental
                                                                                                                                      concern




In talent management terms, a clear                                            Another important finding is indeed
vision of where a company is going                                             the importance of fairness and
can be associated with the need                                                promotion based on merit as being
and the pride of understanding the                                             among the top aspects of company
common purpose of the group and                                                culture, alongside people and values.
of participating in the achievement                                            In Singapore and Hong Kong, the
of such a goal. More pragmatically,                                            people who make up the company are
our respondents may see a direct                                               a top aspect.                                                    “Culture fit is very
correlation to their ability to                                                                                                                 important for
control and manage their career                                                The comparison in Mainland China
                                                                                                                                                employees, and it
development within a company. If                                               between Mainland-born and Foreign
                                                                                                                                                is not affected by
there is a clear vision, transparency                                          respondents is astonishing with
and merit- based promotion, then                                               Mainland-born respondents showing
                                                                                                                                                gender or age.”
an employee can ascertain whether                                              more concern about meritocracy and
the company has strong potential to                                            foreign respondents showing more                                     Aerospace components
“hook their star upon” and whether,                                            concern about value-based behavior                                         company, China
if they work hard and add value,                                               in Mainland China, than they show in
they can advance and take additional                                           Hong Kong, Taiwan and Singapore.
responsibility.




                                                                                                                                                                           7
2012 Talent Environment Report – Greater China Region and Singapore




Most important aspects of company culture:
by age - Mainland China 30 years and below                                                                                                   The people who make up the
compared with all Mainland China                                                                                                             company and demonstrate the
                                                                                                                                             company values are also important
% of respondents citing aspects as one of their ‘top 2’
                                                                                                                                             dimensions of company culture. In
                                                                                                All Mainland China                           a way this is a logical finding which
                                                                                                Mainland China 30 years and below
                                                                                                                                             simply reinforces the need to recruit
                                                                                                                                             people that both demonstrate skills
                                                                                                                                             and capabilities, as well as being like-
                                                                                                                                             minded in sharing the same behaviors
                                                                                                                                             and live values.


                                                                                                                                             It is most unfortunate to note
                                                                                                                                             that corporate citizenship and
                                                                                                                                             environmental concern are the least
                                                                                                                                             important aspects of company culture,
                                                                                                                                             even among the young generations
  Clear vision
    of where
   it is going


                     Belief in
                 fairness and
                  promotion
                     on merit


                                    The people
                                 that make up
                                  the company



                                                 A set of values
                                                  that are lived
                                                    up to by all



                                                                     Admired
                                                                   leadership



                                                                                 Transparency
                                                                                and corporate
                                                                                  governance



                                                                                                 Brand image




                                                                                                                Corporate
                                                                                                               citizenship




                                                                                                                             Environmental
                                                                                                                                   concern




                                                                                                                                             in Mainland China (our sample size
                                                                                                                                             did not allow us to verify this point in
                                                                                                                                             other markets).


                                                                                                                                             The young generation focus, in
                                                                                                                                             Mainland China, is much higher
                                                                                                                                             on the fairness dimension of their
                                                                                                                                             promotion opportunities; it is
                                                                                                                                             otherwise interesting to note that
                                                                                                                                             for this young generation, while
                                                                                                                                             the brand image of their employer
                                                                                                                                             has a bearing, they share the same
                                                                                                                                             ideas about what makes a company
                                                                                                                                             culture, including a clear vision on the
                                                                                                                                             company’s direction.

                 “Cultural aspects are more important for
                 those in more senior positions compared
                 to the junior ones. The latter still consider
                 monetary benefit as most important.”

                                                               Global industrial company - Singapore




  8
Greater China Region and Singapore


For more mature markets, flexible working hours
are most important in work/life balance



Most important aspects of work/life balance:                                                                                                                                  In all markets, work/life
by location                                                                                                                                                                   balance is primarily about
% of respondents citing aspects as one of their ‘top 2’                                                                                                                       flexible working hours
                                                                                                                                               Mainland China
                                                                                                                                               Hong Kong
                                                                                                                                                                              and meeting family
                                                                                                                                               Taiwan
                                                                                                                                               Singapore                      obligations.

                                                                                                                                                                              Flexible working hours is relatively less
                                                                                                                                                                              important in Mainland China where
                                                                                                                                                                              health and benefits aspects are equally
                                                                                                                                                                              important.


                                                                                                                                                                              Flexible working is highest rated in
                                                                                                                                                                              Singapore and Hong Kong, well over
                                                                                                                                                                              personal development. This could be
                                                                                                                                                                              related to the fact that they are more
   Meeting the
 needs of family
    obligations



                                 Health
                           (e.g. fitness
                     facilities/medical
                               services)


                                                      Benefits
                                             (e.g. retirement
                                                     pension/
                                                 educational
                                                fund/holiday
                                                  apartment)

                                                                         Personal
                                                                   development
                                                                  (e.g. language
                                                                           classes/
                                                                     educational
                                                                          courses)

                                                                                            Meeting the
                                                                                       needs of flexible
                                                                                                working
                                                                                       (e.g. work hours/
                                                                                             sabbaticals)


                                                                                                                 Convenience
                                                                                                             of office location
                                                                                                                  (e.g. ease of
                                                                                                                     commute)


                                                                                                                                        Meeting the
                                                                                                                                    need to care for
                                                                                                                                        dependents
                                                                                                                                      (e.g. day care/
                                                                                                                                     parental leave)


                                                                                                                                                         Opportunity for
                                                                                                                                                          secondment to
                                                                                                                                                         charities or Gov.
                                                                                                                                                           Organizations
                                                                                                                                                                              mature markets where people are
                                                                                                                                                                              skill-appropriate for their roles, rather
                                                                                                                                                                              than having been promoted very fast.
                                                                                                                                                                              Singapore and Hong Kong also have
                                                                                                                                                                              experience with more mature work
                                                                                                                                                                              models and are more western work
Most important aspects of work/life balance:                                                                                                                                  trend-savvy, and thus probably follow
Mainland China local-born and foreign-born                                                                                                                                    the flexible workforce trend in the US

% of respondents citing aspects as one of their ‘top 2’
                                                                                                                                                                              and Europe more closely than workers
                                                                                                                                                                              in China.
                                                                                                                                                Local-born
                                                                                                                                                Foreign-born




                                                                                                                                                                              Our company offers more
                                                                                                                                                                              vacation days. Compared to
                                                                                                                                                                              the same position in other
                                                                                                                                                                              countries, employees in
                                                                                                                                                                              China face more pressure
                                                                                                                                                                              and enjoy fewer vacations.”
     Meeting the
   needs of family
      obligations



                                   Health
                             (e.g. fitness
                       facilities/medical
                                 services)


                                                       Benefits
                                              (e.g. retirement
                                                      pension/
                                                  educational
                                                 fund/holiday
                                                   apartment)

                                                                          Personal
                                                                    development
                                                                   (e.g. language
                                                                            classes/
                                                                      educational
                                                                           courses)

                                                                                             Meeting the
                                                                                        needs of flexible
                                                                                                 working
                                                                                        (e.g. work hours/
                                                                                              sabbaticals)


                                                                                                                   Convenience
                                                                                                               of office location
                                                                                                                    (e.g. ease of
                                                                                                                       commute)


                                                                                                                                         Meeting the
                                                                                                                                     need to care for
                                                                                                                                         dependents
                                                                                                                                       (e.g. day care/
                                                                                                                                      parental leave)


                                                                                                                                                          Opportunity for
                                                                                                                                                           secondment to
                                                                                                                                                          charities or Gov.
                                                                                                                                                            Organizations




                                                                                                                                                                                          Private equity company, China


                                                                                                                                                                              “Staff are free to organize
                                                                                                                                                                              their private life in a flexible
                                                                                                                                                                              manner without affecting
                        We’ve lost people because we haven’t                                                                                                                  their work.”
                        been able to give them the flexibility
                        they want.”                                                                                                                                                           Private bank, Hong Kong
                                                                                  Global law firm, Hong Kong


                                                                                                                                                                                                                      9
2012 Talent Environment Report – Greater China Region and Singapore


Apart from Hong Kong, extremely high appetite to move




Respondents’ top 15 destinations for a career move: by location
Actively looking to relocate from current location                  Actively looking to relocate from current location
Mainland China respondents – 44.9%                                  Hong Kong respondents – 29.4%
       Looking to relocate to* (can choose more than one)                 Looking to relocate to* (can choose more than one)
                    Shanghai                                                          Singapore
               North America                                                           Shanghai
                  Hong Kong                                                       North America
                       Europe                                                            Taiwan
                    Singapore                                              Australia/New Zealand
                       Beijing                                                            Beijing
        Australia/New Zealand                                                            Europe
                      Suzhou                                              Other ASEAN Countries
                    Shenzhen                                                               Japan
                   Hangzhou                                                          Guangzhou
                  Guangzhou                                                            Shenzhen
                     Qingdao                                                        South Korea
                       Taiwan                                                             Macau
                     Chengdu                                                            Qingdao
                      Nanjing                                                         South Asia




Actively looking to relocate from current location                  Actively looking to relocate from current location
Taiwan respondents – 50.8%                                          Singapore respondents – 44.2%
       Looking to relocate to* (can choose more than one)                 Looking to relocate to* (can choose more than one)
                    Shanghai                                               Australia/New Zealand
                    Singapore                                                            Europe
                  Hong Kong                                               Other ASEAN Countries
               North America                                                           Shanghai
                       Beijing                                                       Hong Kong
                       Europe                                                     North America
        Australia/New Zealand                                                            Taiwan
                        Japan                                                              Japan
       Other ASEAN Countries                                                              Beijing
                       Tianjin                                                      South Korea
                      Nanjing                                                        Guangzhou
                    Shenzhen                                                           Shenzhen
                      Suzhou                                                              Macau
                      Xiamen                                                   Middle East/Africa
                       Macau                                                             Suzhou

* % of those actively seeking to relocate




                                            “The high tax rate and many government
                                            restrictions in Mainland China account for the
                                            appetite to move.”
                                                                Private equity company, Hong Kong




10
Greater China Region and Singapore




The willingness to                                        Much has been said about the              Australia/New Zealand are top
                                                          appetite for relocation of the            destinations for Singaporean residents
relocate is extremely                                     Mainland Chinese who can afford to        but less so for Greater China region
high with the large                                       emigrate via investment for reasons       residents. For example, they rank
international centers of                                  such as their children’s education.       #7, well behind North America
                                                          This data confirms this trend from a      and Europe for Mainland China
Shanghai, Hong Kong
                                                          job market perspective. (To be noted      respondents.
and Singapore remaining                                   that the majority of respondents work
top destinations in this                                  in international firm) However, it is     Mainland China respondents are
region.                                                   noted that such appetite for overseas     showing a preference for North
                                                          relocation is just as strong in Taiwan    America as their top overseas
                                                          and Singapore as it is in Mainland        destination and Shanghai as their top
                                                          China. Shanghai remains a top             inland destination. It is interesting to
                                                          destination.                              note, however, that Europe is their
                                                                                                    fourth preferred destination unlike
                                                                                                    Taiwan respondents who rank Europe
Mainland China respondents’ top 15 foreign                                                          #6 only, below Beijing.
destinations for a career move:
                                                                                                    In our research, we noted a potential
Actively looking to relocate from current location                                                  correlation between preferred
Mainland China local-born respondents – 43.5%                                                       destinations and place of education;
      Looking to relocate to*    (can choose more than one)                                         for example, the ratio of Singapore
               North America                                                                        respondents educated in Australia
                      Europe
                                                                                                    is comparatively higher as well as
                  Hong Kong
                   Singapore                                                                        the ratio of Mainland respondents
       Australia/New Zealand                                                                        educated in Europe.
                      Taiwan
                        Japan
                       Macau                                                                        It is also interesting to note the
      Other ASEAN Countries
                                                                                                    relatively lower ranking overall of
       Central/South America
                 South Korea                                                                        Beijing among top destinations,
           Middle East/Africa                                                                       especially for Singapore residents
           Russia/Central Asia
                   South Asia
                                                                                                    and the low ranking of Guangzhou,
                                                                                                    at #10 on the list for Hong Kong

* % of those seeking to relocate
                                                                                                    respondents and #11 for Mainland
                                                                                                    China respondents, behind Suzhou,
                                                                                                    Hangzhou and Shenzhen. An
                                                                                                    attraction challenge which we also
                                                                                                    note in recruitment.


          “It’s difficult to move people to inland cities if
          they are not originally from there; we provide
          additional benefits to the employees if we
          need to relocate them and design a career
          development plan for them.”

                                              Automotive products company, China


                                                                                                                                           11
2012 Talent Environment Report – Mainland China


The determination to make a job change is higher in
local companies than in foreign-owned companies



Job offers and acceptances                                                                  Are you seeking to make a job change
in the last 18 month:                                                                       in the next 12 months?
Mainland China by company type                                                              Mainland China by company type

Local companies                              Foreign companies                              Local companies                 Foreign companies
        18.4%                                       23.9%
        No offers                                   No offers
                                                                                                          38.8%                       31.6%
                                                                          Accepted          15.8%         Yes                15.4%    Yes
                    25.7%        Accepted                         20%     Offer             No
                                                                                                                             No
  42.1%                          offer
  Offer not                                    45.8%
  accepted                                     Offer not
                                               accepted     10.3%                                    45.4%                           53%
                                                                                                     Maybe                           Maybe
              13.8%
                      Resigned but                                 Resigned but
                      then accepted                                then accepted
                      counter offer                                counter offer




What was your total compensation package increase in the
new offer you accepted? Mainland China by company type

Local company*                                             Foreign company*
no change                          15.9                    no change                 10.5
     1-10%            8.9                                       1-10%                10.9
   11-20%                   13.4                                11-20%                      14.5
   21-30%                             17.8                      21-30%                                          25.6
   31-40%                           16.6                        31-40%                             18.4
   41-50%                11.5                                   41-50%             9.4
     51 +%                         15.9                         51 +%                10.7


* % of those accepting new job




                                                                            “Most senior executives are being actively groomed
                                                                            and the company spends resources on helping them
                                                                            do their job better. Therefore, compensation becomes
                                                                            less of a concern as advancement/development
                                                                            activities are more prized.”

                                                                                                          Foreign-owned chemicals company, China




12
Mainland China


Talent churn: middle and senior management most at risk




Are you seeking to make a job change in the next 12 months?
Mainland China by management level

Top management                              Senior management                        Middle management                       Junior managers


              27.4%                                       32.1%                                   34.7%                                    34.2%
 26.5%        Yes                            17%          Yes                         13.8%       Yes
                                                                                                                              13.8%        Yes
                                             No                                       No                                      No
 No


          46.2%                                      50.9%                                    51.5%                                   52.1%
          Maybe                                      Maybe                                    Maybe                                   Maybe




Job offers and acceptances in the last 18 month:
Mainland China by management level

Top management                              Senior management                        Middle management                       Junior managers

         13.4%                                     19.2%
         No offers
                             Accepted
                                                   No offers
                                                                                            24.5%                                   28.8%
                             offer                                                          No offers
                     18.6%                                                Accepted
                                                                                                                  Accepted          No offers
                                                                                                                  Offer
                                                                  21.6%   Offer                         21.8%
                                                                                                                                                             Accepted
                                                                                                                                                   19.4%     Offer
  63.9%              4.1%                     49.1%                                   42.4%                                    39.7%
  Offer not                 Resigned but      Offer not                               Offer not
                                              accepted                                                                         Offer not
  accepted                                                                            accepted
                            then accepted                       10.1%                                                          accepted
                                                                                                                                                 12%
                            counter offer                                                           11.4%
                                                                    Resigned but                            Resigned but                               Resigned but
                                                                    then accepted                           then accepted                              then accepted
                                                                    counter offer                           counter offer                              counter offer




Top management respondents are still the most sought
after, with 51% of them receiving at least three offers.
They seldom accept counter offers.




                                                                                                                                                                   13
2012 Talent Environment Report – Mainland China

Great majority of middle to senior management who accepted
offers received over 20% increases



What was your total compensation package increase in the
new offer you accepted? Mainland China by management level

Top management* Caution: low base                          Senior management*
no change                    11.1                          no change                  14.2
     1-10%                                   22.2             1-10%            9.7
  11-20%         5.6                                         11-20%                           18.2
  21-30%                                     22.2            21-30%                                  21.5
  31-40%                     11.1                            31-40%                         16.6
  41-50%                     11.1                            41-50%      6.9
     51 +%                           16.7                     51 +%                  13.0




Middle management*                                         Junior managers*
no change                10.6                              no change                  14.6
     1-10%             8.2                                    1-10%            11.2
  11-20%                      12.0                           11-20%            11.2
  21-30%                                            26.4     21-30%                                20.2
  31-40%                                    20.9             31-40%                   14.6
  41-50%                     11.0                            41-50%                         16.9
     51 +%               11.0                                 51 +%            11.2


* % of those accepting new job




In terms of compensation, mid-
level managers received the highest
increases, generally between 20%
                                                                 “We will create a new retention system to encourage long
and 40% more. Going forward, top
                                                                 term commitment, an additional part of the monthly salary will
managers will be relatively more
stable but the appetite for change                               be put into a pool for retention purpose.”
remains high overall.
                                                                                                            Automotive products company, China




                                                                 “In 2012 we roll out our Talent Integration Strategy. Plan,
                                                                 source, hire, onboard, integrate - career development.”

                                                                                                             Engineering/energy company, China




14
Mainland China




What was your total compensation package increase in the new offer you accepted?
Mainland China by city

Beijing*                                    Guangzhou* Caution: low base             Shanghai*
no change                                  no change                                 no change
   1-10%                                         1-10%                                  1-10%
  11-20%                                         11-20%                                11-20%
  21-30%                                         21-30%                                21-30%
  31-40%                                         31-40%                                31-40%
  41-50%                                         41-50%                                41-50%
   51 +%                                         51 +%                                  51 +%


* % of those accepting new job




Are you seeking to make a job change in the next 12 months?
Mainland China by city

Beijing                          Guangzhou                        Shanghai


            33.3%                         38.2%                              32.2%
                                          Yes
 16.5%      Yes                                                    16.3%     Yes
 No                              10.9%                             No
                                 No


         50.2%                           50.9%                             51.5%
         Maybe                           Maybe                             Maybe




                                                                                                             15
THE MRIC ANNUAL TALENT ENVIRONMENT INDEX 2012
THE MRIC ANNUAL TALENT ENVIRONMENT INDEX 2012
THE MRIC ANNUAL TALENT ENVIRONMENT INDEX 2012
THE MRIC ANNUAL TALENT ENVIRONMENT INDEX 2012
THE MRIC ANNUAL TALENT ENVIRONMENT INDEX 2012
THE MRIC ANNUAL TALENT ENVIRONMENT INDEX 2012
THE MRIC ANNUAL TALENT ENVIRONMENT INDEX 2012

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THE MRIC ANNUAL TALENT ENVIRONMENT INDEX 2012

  • 1. 2012 Greater China Region and Singapore Talent Environment Report Produced by the MRI China Group
  • 2. Survey respondents profiles Respondents’ profiles from Mainland China, Hong Kong, Taiwan and Singapore t y t en og il ce s ss t en s ol ta vi le en m em er s ce hn re er e ag vi ec nd & ls or em ag an ag er t a es ld d ag an an ls & er nc re na so ol an m m m ia y ie ca io ar rs re or dl e nc tr m sc lth ss er ea mo l m or er us su fe ye ta p ni id ni th na d n fe a o th y To To Se M Ju O Fi In Co Li he Pr O 30 31 or Management levels Industry sectors Age Total 4968 3.8 33.6 41.7 16 4.8 10.8 54.8 16 7.2 9.6 1.7 10.3 89.7 Mainland China 3811 3.4 34.9 42.1 15 4.6 7.1 59.7 16.1 7.1 8.6 1.4 10.9 89.1 Hong Kong 532 7 31.2 38.9 18.2 4.7 31.6 26.3 20.3 3.7 14.6 3.6 8.1 91.9 Taiwan 294 2.4 33 44.9 15 4.8 18.8 44.8 13.7 14.7 7.5 0.7 8.4 91.6 Singapore 325 3.7 23.4 38.5 26.2 8.3 13.5 51.7 8.8 8.1 15.4 2.5 9 91 % in numerals s er i e na a gh in a ica a a an Chi in a hi Ch in in p d ny Ch in or ng er d Ch C h omlan a d p n u in d C h e d Ko re Am / ia n d d i o e an n po pe al la e an e n c om nla gh a zh er n gr nl g a a th ro tr ea al nl id inla n n ig ai l C ai ing ng th nla de ai on iw ng or us w Z al e m ai ts a re M ca M ej an a l o ai M H Ta Si N Eu A M Fe M ou M Fo in Lo in B Sh Gu Al M UG in in in in in in in Ne Gender Born in... Company type Location Undergraduate degree or higher* Total 72.1 27.9 Mainland China 74.9 25.1 82.3 17.7 79.5 79.5% 20.5 20 45.9 4.6 29.4 89.8 73.2 4.0 89.8 1.9 3.0 10.6 10.7 3.2 Hong Kong 60.2 39.8 85.8 4.0 85.8 41.7 1.0 2.1 25.8 21.4 10.1 Taiwan 65.5 34.5 91.6 0.8 91.6 0.4 76.7 2.0 27.3 7.2 0.8 Singapore 65.6 34.4 84.0 6.6 84.0 2.1 0.7 37.8 8.7 19.1 16.7 % in numerals *some respondents attended universities in more than one location Talent on the move Are you seeking to make a job change in the next 12 months? By location Mainland Hong Kong Taiwan Singapore 33.2% 27.8% 38.1% 39.5% 15.5% Yes 21.1% Yes 13.5% Yes Yes No No No 17.8% No 51.3% 51.1% 48.4% 42.7% Maybe Maybe Maybe Maybe
  • 3. Introduction • Work life-balance remains a key In November 2011, MRIC / The MRI China motivator to move to a new role Group conducted its second online survey but unlike in 2010 – perhaps a contacting over 120,000 professionals and reflection of more uncertain times managers in our database. - confidence in the leadership and strategic direction of the prospective employer becomes more important than work/life Based on respondents’ feedback of interesting to look into the drivers balance. almost 5,000 talent across Mainland and motivations of a workforce China, Hong Kong, Taiwan and which is, nevertheless, structurally • A good company culture, across Singapore, their desire to change on the move for a better markets and generations is jobs in 2012 remains very strong. “something.” defined primarily as a company Talent retention in 2012 will remain that has a clear vision for the a core concern for employers. The objective of this survey is to business and that supports Offers and compensation levels help business and HR leaders to promotion on merit. received in 2011 explain such understand what is on the mind confidence as well as two market- of professional people in this • Health and benefits are also key driven reasons: region so that they approach their components of work/life balance retention and attraction strategies and of attraction, considered in 1. A natural knock-on effect from in the most effective way. Mainland China to be as critical as talent movement during the compensation. 2008/2009 global economic crisis. This research is in evolution. Having been in the roles that they We added two geographies, • About 40% of respondents are landed in for a solid three years, Taiwan and Singapore, and willing to relocate overseas, Asia talent is ready for a career more respondents to our survey, primarily to North America and step and the Year of the Dragon enabling us to go deeper in Europe, with Shanghai being the is a good time to consider career various workforce segments. We top destination in Asia. moves; and also explored the dimension of work/life balance, a key finding of We hope that you will find this 2. The strength with which most increasing sensitivity in 2010, and report of interest and that you sectors in Asia are weathering the also company culture which, in will feel better informed to deal more recent economic crisis and our recruiters’ experience, is a key with the talent challenges ahead. China’s rise to the second largest driver of success or failure beyond I would like to thank our survey economy in the world, has created any technical expertise. respondents, our clients who confidence at a mid-management kindly provided insights on our level and below that China - and Clear patterns emerged albeit findings and Anthony Pettifer of the countries that are major Asia with nuances across markets, Brandstorm Asia who supported us business partners - are coming generations or gender: on questionnaire design and data of age, while North America and analysis. Europe flounder. • Besides compensation, people stay in their company because That said, the reality, and more of the career development specifically compensation levels, opportunities, the company may be tempered by the global culture and a good work/life economy and its impact on this balance. region; this makes it even more 1
  • 4. 2012 Talent Environment Report – Greater China Region and Singapore Companies are still at war for talent Job offers and acceptances in the last 18 month: by location Mainland Hong Kong Taiwan Singapore 23.0% 22.2% 18.3% No offers 31.2% No offers No offers No offers Accepted Accepted 17.1% offer 20.9% offer Accepted 45.1% 46% 28.4% 40.1% 23.1% Accepted 49.6% Offer not offer Offer not Offer not offer Offer not accepted accepted accepted 11.1% accepted 10.9% Resigned but 5.7% 7.3% then accepted Resigned but Resigned but then accepted Resigned but counter offer then accepted then accepted counter offer counter offer counter offer Job markets were active until the end of 2011 since 70 to 80% of respondents had received at least a job offer in the last 18 months and only 40% to 50% of respondents had declined a move. Behaviors on counter offers are similar in Mainland China and Taiwan where their success rate is about one third. In Hong Kong and Singapore, respondents are significantly less responsive to counter offers. “The economy of China is still developing fast and high caliber candidates are still very difficult to find and attract; every one of our competitors is also looking for good talent.” Tools and automotive products company, China 2
  • 5. Greater China Region and Singapore Retention: career opportunity matters most in Mainland China, work/life balance in Hong Kong In Mainland China, Most important motivators to stay in current job: Mainland China and Hong Kong work/life balance is also key and in both “Staying in current job” locations, company % of respondents citing motivator as one of their ‘top 2’ Mainland China culture ranks highly. Hong Kong Compensation is also a key retention driver in Hong Kong, ahead of the career opportunity. Conversely, in Mainland China, the opportunity for career development prevails over compensation. In both places, company leadership Individual Financial Company and strategic direction are also Opportunity to increase responsibility/ challenges Clearer career path Location Better immediate reporting line Increased compensation/ commission Better benefits package Better company/culture/ people Better work/life balance Leadership/ strategic direction Better brand image Job security Training programs/ future educational reimbursement Overseas assignment potential important, well ahead of the conventional belief that a company brand image and the immediate reporting line are motivators that count most. Low base of sample size in Singapore and Taiwan respondents ‘staying in current job’ Progress is a key measure of satisfaction. Every high-potential, highly-rated talent aspires to progress in his career and accordingly in income. These data show the importance of holding career conversations and managing expectations with timelines and steps toward career development. Not surprisingly, people want to feel good at work with like-minded colleagues; for most, a good workplace is also an environment that helps them fulfill, or blends nicely with, their life interests. “In 2012, we will spend even more time to understand staff needs and look for possible restructuring to keep staff happy and show them that they have a prospect in the firm.” Financial company, China 3
  • 6. 2012 Talent Environment Report – Greater China Region and Singapore Clear strategies for corporate and personal success are as high on change agenda as compensation Most important motivators to change jobs: by location “definitely seeking” “definitely & maybe seeking” % of respondents citing motivator as one of their ‘top 2’ Mainland China Hong Kong Taiwan Singapore Individual Financial Company Financial Better benefits package Increased compensation/ commission Opportunity to increase responsibility/ challenges Clearer career path Location Better immediate reporting line Better benefits package Increased compensation/ commission Increased job security Better training programs/future educational reimbursements Better company/ culture/people Leadership/ strategic direction Better work/life balance Better brand image Overseas assignment potential “I have consciously implemented a better benefits program (compared with rest of Asia) when we started in China. It results in more net take-home pay.” Chemicals company, China “The China market is hot and good candidates have a lot of opportunities and they are comparing not only the salary, but also benefits and working environment, like annual leave, housing and car allowance, trip allowance.” Automotive products company, China 4
  • 7. Greater China Region and Singapore Unsurprisingly in Finally, work/life balance, which is an important driver of retention in Mainland China, people Mainland China and Hong Kong, definitely seeking to is not as important a consideration change jobs are primarily for people seeking a change. This could be explained by the fact that attracted to a new job economic change is still moving at for the same reason both a personal and corporate level in that retains them: China at a fast pace. Talent perceive a more responsibility and greater opportunity of increasing their overall quality of life over the longer challenge, and promotion term by putting career development opportunity. ahead of work/life balance in the short term, to enhance overall life quality for A good company culture is as important themselves and their family. as compensation in Mainland China. In Taiwan, it is company leadership and What does it mean for prospective strategic direction that prevails over employers? “In 2012, we will compensation. implement a Talent • There seem to be differences in terms Integration Strategy that When we include respondents “maybe of talent behaviors in Mainland China seeking” to change jobs, financial drivers entails understanding of and Taiwan, on one hand, and Hong prevail across all locations. Kong and Singapore, on the other, organizational capabilities, but the ability to articulate a good workforce planning, In Hong Kong and Singapore, clear career plan is essential everywhere and recruitment, onboarding strategic direction and a clear career could potentially mitigate demands for and integration of path for the prospective employee are increased compensation. staff. Overall career important ‘soft’ drivers over the promise development will be of a better company culture, but a bit • A good benefits package seems to be a less prevalent than compensation. closely tracked.” cost-effective attraction tool, especially in Mainland China. Industrial company, Singapore The attraction of a better benefits package seems to be higher in Mainland • The ability to articulate the strategic China than compensation. Taiwan also direction of the business and what reflects similar sentiment. makes the company culture, is a plus to attract prospective candidates. They are looking for a successful business where they can cultivate their career. At MRIC, we find that prospective employers, especially hiring managers, are not always aware of that and may not articulate their company “story” well enough. 5
  • 8. 2012 Talent Environment Report – Greater China Region and Singapore Wanted: a clear vision and meritocracy Most important aspects of company culture: by location % of respondents citing aspects as one of their ‘top 2’ Mainland China Hong Kong Taiwan Singapore Clear vision of where it is going Belief in fairness and promotion on merit The people that make up the company A set of values that are lived up to by all Admired leadership Transparency and corporate governance Brand image Corporate citizenship Environmental concern For all respondents in the Greater China region and Singapore, a clear vision of where their “Leadership, culture, and values become company is going is the equally important drivers for employees most important aspect of to stay with the company.” company culture. Global industrial company, Taiwan This is particularly strong in Taiwan and consistent with the high rating of Taiwanese respondents on the leadership/strategic direction dimension as a driver of job change; “For senior people, a culture of collaboration there may be a proclivity in this is a big driver. The ability to get work done country towards strong leadership efficiently is very important..” figureheads at the helm of businesses. Global bank, Hong Kong 6
  • 9. Greater China Region and Singapore Most important aspects of company culture: Mainland China local-born and foreign-born % of respondents citing aspects as one of their ‘top 2’ Mainland China local-born Mainland China foreign-born Clear vision of where it is going Belief in fairness and promotion on merit The people that make up the company A set of values that are lived up to by all Admired leadership Transparency and corporate governance Brand image Corporate citizenship Environmental concern In talent management terms, a clear Another important finding is indeed vision of where a company is going the importance of fairness and can be associated with the need promotion based on merit as being and the pride of understanding the among the top aspects of company common purpose of the group and culture, alongside people and values. of participating in the achievement In Singapore and Hong Kong, the of such a goal. More pragmatically, people who make up the company are our respondents may see a direct a top aspect. “Culture fit is very correlation to their ability to important for control and manage their career The comparison in Mainland China employees, and it development within a company. If between Mainland-born and Foreign is not affected by there is a clear vision, transparency respondents is astonishing with and merit- based promotion, then Mainland-born respondents showing gender or age.” an employee can ascertain whether more concern about meritocracy and the company has strong potential to foreign respondents showing more Aerospace components “hook their star upon” and whether, concern about value-based behavior company, China if they work hard and add value, in Mainland China, than they show in they can advance and take additional Hong Kong, Taiwan and Singapore. responsibility. 7
  • 10. 2012 Talent Environment Report – Greater China Region and Singapore Most important aspects of company culture: by age - Mainland China 30 years and below The people who make up the compared with all Mainland China company and demonstrate the company values are also important % of respondents citing aspects as one of their ‘top 2’ dimensions of company culture. In All Mainland China a way this is a logical finding which Mainland China 30 years and below simply reinforces the need to recruit people that both demonstrate skills and capabilities, as well as being like- minded in sharing the same behaviors and live values. It is most unfortunate to note that corporate citizenship and environmental concern are the least important aspects of company culture, even among the young generations Clear vision of where it is going Belief in fairness and promotion on merit The people that make up the company A set of values that are lived up to by all Admired leadership Transparency and corporate governance Brand image Corporate citizenship Environmental concern in Mainland China (our sample size did not allow us to verify this point in other markets). The young generation focus, in Mainland China, is much higher on the fairness dimension of their promotion opportunities; it is otherwise interesting to note that for this young generation, while the brand image of their employer has a bearing, they share the same ideas about what makes a company culture, including a clear vision on the company’s direction. “Cultural aspects are more important for those in more senior positions compared to the junior ones. The latter still consider monetary benefit as most important.” Global industrial company - Singapore 8
  • 11. Greater China Region and Singapore For more mature markets, flexible working hours are most important in work/life balance Most important aspects of work/life balance: In all markets, work/life by location balance is primarily about % of respondents citing aspects as one of their ‘top 2’ flexible working hours Mainland China Hong Kong and meeting family Taiwan Singapore obligations. Flexible working hours is relatively less important in Mainland China where health and benefits aspects are equally important. Flexible working is highest rated in Singapore and Hong Kong, well over personal development. This could be related to the fact that they are more Meeting the needs of family obligations Health (e.g. fitness facilities/medical services) Benefits (e.g. retirement pension/ educational fund/holiday apartment) Personal development (e.g. language classes/ educational courses) Meeting the needs of flexible working (e.g. work hours/ sabbaticals) Convenience of office location (e.g. ease of commute) Meeting the need to care for dependents (e.g. day care/ parental leave) Opportunity for secondment to charities or Gov. Organizations mature markets where people are skill-appropriate for their roles, rather than having been promoted very fast. Singapore and Hong Kong also have experience with more mature work models and are more western work Most important aspects of work/life balance: trend-savvy, and thus probably follow Mainland China local-born and foreign-born the flexible workforce trend in the US % of respondents citing aspects as one of their ‘top 2’ and Europe more closely than workers in China. Local-born Foreign-born Our company offers more vacation days. Compared to the same position in other countries, employees in China face more pressure and enjoy fewer vacations.” Meeting the needs of family obligations Health (e.g. fitness facilities/medical services) Benefits (e.g. retirement pension/ educational fund/holiday apartment) Personal development (e.g. language classes/ educational courses) Meeting the needs of flexible working (e.g. work hours/ sabbaticals) Convenience of office location (e.g. ease of commute) Meeting the need to care for dependents (e.g. day care/ parental leave) Opportunity for secondment to charities or Gov. Organizations Private equity company, China “Staff are free to organize their private life in a flexible manner without affecting We’ve lost people because we haven’t their work.” been able to give them the flexibility they want.” Private bank, Hong Kong Global law firm, Hong Kong 9
  • 12. 2012 Talent Environment Report – Greater China Region and Singapore Apart from Hong Kong, extremely high appetite to move Respondents’ top 15 destinations for a career move: by location Actively looking to relocate from current location Actively looking to relocate from current location Mainland China respondents – 44.9% Hong Kong respondents – 29.4% Looking to relocate to* (can choose more than one) Looking to relocate to* (can choose more than one) Shanghai Singapore North America Shanghai Hong Kong North America Europe Taiwan Singapore Australia/New Zealand Beijing Beijing Australia/New Zealand Europe Suzhou Other ASEAN Countries Shenzhen Japan Hangzhou Guangzhou Guangzhou Shenzhen Qingdao South Korea Taiwan Macau Chengdu Qingdao Nanjing South Asia Actively looking to relocate from current location Actively looking to relocate from current location Taiwan respondents – 50.8% Singapore respondents – 44.2% Looking to relocate to* (can choose more than one) Looking to relocate to* (can choose more than one) Shanghai Australia/New Zealand Singapore Europe Hong Kong Other ASEAN Countries North America Shanghai Beijing Hong Kong Europe North America Australia/New Zealand Taiwan Japan Japan Other ASEAN Countries Beijing Tianjin South Korea Nanjing Guangzhou Shenzhen Shenzhen Suzhou Macau Xiamen Middle East/Africa Macau Suzhou * % of those actively seeking to relocate “The high tax rate and many government restrictions in Mainland China account for the appetite to move.” Private equity company, Hong Kong 10
  • 13. Greater China Region and Singapore The willingness to Much has been said about the Australia/New Zealand are top appetite for relocation of the destinations for Singaporean residents relocate is extremely Mainland Chinese who can afford to but less so for Greater China region high with the large emigrate via investment for reasons residents. For example, they rank international centers of such as their children’s education. #7, well behind North America This data confirms this trend from a and Europe for Mainland China Shanghai, Hong Kong job market perspective. (To be noted respondents. and Singapore remaining that the majority of respondents work top destinations in this in international firm) However, it is Mainland China respondents are region. noted that such appetite for overseas showing a preference for North relocation is just as strong in Taiwan America as their top overseas and Singapore as it is in Mainland destination and Shanghai as their top China. Shanghai remains a top inland destination. It is interesting to destination. note, however, that Europe is their fourth preferred destination unlike Taiwan respondents who rank Europe Mainland China respondents’ top 15 foreign #6 only, below Beijing. destinations for a career move: In our research, we noted a potential Actively looking to relocate from current location correlation between preferred Mainland China local-born respondents – 43.5% destinations and place of education; Looking to relocate to* (can choose more than one) for example, the ratio of Singapore North America respondents educated in Australia Europe is comparatively higher as well as Hong Kong Singapore the ratio of Mainland respondents Australia/New Zealand educated in Europe. Taiwan Japan Macau It is also interesting to note the Other ASEAN Countries relatively lower ranking overall of Central/South America South Korea Beijing among top destinations, Middle East/Africa especially for Singapore residents Russia/Central Asia South Asia and the low ranking of Guangzhou, at #10 on the list for Hong Kong * % of those seeking to relocate respondents and #11 for Mainland China respondents, behind Suzhou, Hangzhou and Shenzhen. An attraction challenge which we also note in recruitment. “It’s difficult to move people to inland cities if they are not originally from there; we provide additional benefits to the employees if we need to relocate them and design a career development plan for them.” Automotive products company, China 11
  • 14. 2012 Talent Environment Report – Mainland China The determination to make a job change is higher in local companies than in foreign-owned companies Job offers and acceptances Are you seeking to make a job change in the last 18 month: in the next 12 months? Mainland China by company type Mainland China by company type Local companies Foreign companies Local companies Foreign companies 18.4% 23.9% No offers No offers 38.8% 31.6% Accepted 15.8% Yes 15.4% Yes 25.7% Accepted 20% Offer No No 42.1% offer Offer not 45.8% accepted Offer not accepted 10.3% 45.4% 53% Maybe Maybe 13.8% Resigned but Resigned but then accepted then accepted counter offer counter offer What was your total compensation package increase in the new offer you accepted? Mainland China by company type Local company* Foreign company* no change 15.9 no change 10.5 1-10% 8.9 1-10% 10.9 11-20% 13.4 11-20% 14.5 21-30% 17.8 21-30% 25.6 31-40% 16.6 31-40% 18.4 41-50% 11.5 41-50% 9.4 51 +% 15.9 51 +% 10.7 * % of those accepting new job “Most senior executives are being actively groomed and the company spends resources on helping them do their job better. Therefore, compensation becomes less of a concern as advancement/development activities are more prized.” Foreign-owned chemicals company, China 12
  • 15. Mainland China Talent churn: middle and senior management most at risk Are you seeking to make a job change in the next 12 months? Mainland China by management level Top management Senior management Middle management Junior managers 27.4% 32.1% 34.7% 34.2% 26.5% Yes 17% Yes 13.8% Yes 13.8% Yes No No No No 46.2% 50.9% 51.5% 52.1% Maybe Maybe Maybe Maybe Job offers and acceptances in the last 18 month: Mainland China by management level Top management Senior management Middle management Junior managers 13.4% 19.2% No offers Accepted No offers 24.5% 28.8% offer No offers 18.6% Accepted Accepted No offers Offer 21.6% Offer 21.8% Accepted 19.4% Offer 63.9% 4.1% 49.1% 42.4% 39.7% Offer not Resigned but Offer not Offer not accepted Offer not accepted accepted then accepted 10.1% accepted 12% counter offer 11.4% Resigned but Resigned but Resigned but then accepted then accepted then accepted counter offer counter offer counter offer Top management respondents are still the most sought after, with 51% of them receiving at least three offers. They seldom accept counter offers. 13
  • 16. 2012 Talent Environment Report – Mainland China Great majority of middle to senior management who accepted offers received over 20% increases What was your total compensation package increase in the new offer you accepted? Mainland China by management level Top management* Caution: low base Senior management* no change 11.1 no change 14.2 1-10% 22.2 1-10% 9.7 11-20% 5.6 11-20% 18.2 21-30% 22.2 21-30% 21.5 31-40% 11.1 31-40% 16.6 41-50% 11.1 41-50% 6.9 51 +% 16.7 51 +% 13.0 Middle management* Junior managers* no change 10.6 no change 14.6 1-10% 8.2 1-10% 11.2 11-20% 12.0 11-20% 11.2 21-30% 26.4 21-30% 20.2 31-40% 20.9 31-40% 14.6 41-50% 11.0 41-50% 16.9 51 +% 11.0 51 +% 11.2 * % of those accepting new job In terms of compensation, mid- level managers received the highest increases, generally between 20% “We will create a new retention system to encourage long and 40% more. Going forward, top term commitment, an additional part of the monthly salary will managers will be relatively more stable but the appetite for change be put into a pool for retention purpose.” remains high overall. Automotive products company, China “In 2012 we roll out our Talent Integration Strategy. Plan, source, hire, onboard, integrate - career development.” Engineering/energy company, China 14
  • 17. Mainland China What was your total compensation package increase in the new offer you accepted? Mainland China by city Beijing* Guangzhou* Caution: low base Shanghai* no change no change no change 1-10% 1-10% 1-10% 11-20% 11-20% 11-20% 21-30% 21-30% 21-30% 31-40% 31-40% 31-40% 41-50% 41-50% 41-50% 51 +% 51 +% 51 +% * % of those accepting new job Are you seeking to make a job change in the next 12 months? Mainland China by city Beijing Guangzhou Shanghai 33.3% 38.2% 32.2% Yes 16.5% Yes 16.3% Yes No 10.9% No No 50.2% 50.9% 51.5% Maybe Maybe Maybe 15