Archives April 2006

China graduates lower their salary expectations

Apr. 12, 2006 (China Knowledge) – About 6,300 jobseekers competed for 2,920 vacancies at a job fair which was held on Apr. 11, at the Shenzhen Career Service Center, according to State-run Xinhua news agency.

A fresh graduate, Du Qingjie said that his salary expectation is about RMB 1500 (US$187) per month if the company does not provide accommodation. Du graduated from a university in the Shanxi province with a major in electronics. He regards Shenzhen as the first choice city for his career development as many IT companies are concentrated there. He has sent out more than 20 resumes in the last two weeks, without receiving any reply.

Despite the low salaries expected by fresh graduates, some companies are still unwilling to hire inexperienced workers. With about 4.13 million students graduating this year, 25% more than in 2005, and the number standing nearly four times as many as 2001, the competition among new graduates is becoming increasingly fierce.

China Staff hiring: Passion is key!

(China Daily)

While the international hotel giants battle to expand their empires in China and mull over branding and marketing strategies, there is something critical they can never ignore – staff.

“Talents are given priority in Marriott, their potential, loyalty, interest and team spirit matters,” says J. Willard Marriott, the founder of US-based Marriott International. “Take good care of your associates and they will take good care of customers, who will then return.”

As one of the leading international hotel groups, Marriott began operations in China in 1989. Now, its local presence is represented by 26 hotels, and by 2008, the portfolio will grow to 35.

Marriott is not alone in its rapid growth. By 2008, Shangri-La Hotels and Resorts, Asia-Pacific’s leading luxury hotel group, will add 17 more to its local list which already numbers 19; UK-based InterContinental Hotel Group (IHG), a worldwide hotel group, has a portfolio of 51 hotels, and plans to develop 74 more by 2008. Ritz-Carlton Hotel Company, the world’s leading high-end hotel brand, plans to have nine projects by 2009.

The aggressive expansion can be attributed to the upcoming 2008 Beijing Olympics and the development of China’s economy.

“But how to attract and retain staff remains a pressing task,” says Michael Malik, general manager with Beijing Marriott Hotel West, considered one of the best hotels in the Marriott chain.

Generally, academic credentials, work experience and English skills are the basic requirements on hotel recruitment lists. However, for most hotels, there are two things even more important personality and potential.

“We hire people for their attitudes,” Malik says. “Passion is the key.”

The recruitment policy of Portman Ritz-Carlton Shanghai (PRC), which has been ranked as the best employer in Asia and China for three consecutive years by Hewitt Associates, is simple. “We only get highly-talented people,” says Ralph Grippo, vice-president area general manager.

The group has developed a quality selection process known across the world when recruiting staff, to test whether candidates fit its culture. “It really works and helps us find suitable staff,” says Grippo.

Usually, high-level management aside, most hotel employees are local. The sources are various, including graduates from hotel-related training schools, talents from other industries or hotels, and internal recommendation.

At PRC, people through recommendation from its own staff compose the major source, accounting for 50 per cent of its total workforce.

“It is an efficient way, as our staff know who would be the most appropriate for PRC, and we reward those who succeed in any matchmaking with 500 yuan (US$62),” says Grippo.

Germany-based Kempinski looks for graduates majoring in hotel management abroad, such as France and the UK. “They have better English skills and more knowledge about Western nations,” says Li Bo, deputy managing director with Kempinski Hotel Beijing.

However, some people’s wariness of working in the hospitality industry remains a stumbling block to recruitment.

“Some people don’t think highly of hospitality they believe they need to work longer and harder in hotels than in other jobs,” says Winnie N.G, director of human resources at IHG China.

As more hotel groups expand into China’s secondary cities, recruiting suitable employees in the smaller cities is not as easy as it is in Beijing and Shanghai, she adds.

Getting the right person is the first step, but it all proves futile in the end if hotels fail to treat them properly.

Employment turnover is a reflection of whether hotels have done a good job in retaining staff. In Beijing and Shanghai’s four and five-star hotels, the average turnover is above 30 per cent.

“PRC enjoys the lowest turnover of 17 per cent annually,” says Grippo.

Hotels use a number of methods to achieve a lower turnover.

For Malik, the main one is to engage with workers and seek their opinions.

Staff, except for those at management level, annually receive a questionnaire on how they feel about their benefits, managers and salary. A third party from the US then conducts all-round analysis and eventually presents a final report, indicating how employees rate the general managers and whether they are doing a good job.

“This is successful, and shows Marriott shares everything with associates and is proud to gain satisfaction from them,” says Malik.

Cheong Waimeng, director of human resources with Grand Hyatt Beijing, says: “We listen to workers’ opinions, making them feel they are part of the Hyatt family, instead of just being labour.”

For international hotel group giants, being a powerful brand helps a lot. “A brand is in itself advertising, and can attract people automatically,” says Malik.

“A strong employer brand encourages people to stay with us,” agrees Winnie N.G. IHG often conducts brand promotions in China’s major universities, gaining more access to potential candidates.

Training and appropriate rewards are also important tools to help people stay.

But training is not only time-consuming but also expensive. Grand Hyatt Beijing under Hyatt International Corporation annually invests 800,000-1 million yuan (US$97,561-121,951) in training. At Kempinski Beijing, training costs account for 2.5 per cent of revenue. PRC Shanghai puts 1 million yuan (US$121,951) into training every year. Staff at all levels in Marriott can get 40 hours of training.

Cross-department training is an especially powerful method for the international hotel groups. Thanks to their huge networks, staff can be transferred to different departments or hotels within the chain, which can help them to realize their full potential and creates opportunities for promotion.

At IHG, the Assessment Centre Programme aims to provide a talent pool of potential candidates for promotion. “This is a good way to retain,” says Winnie N.G.

As for rewards, different hotels have different ideas.

Those who get annual best-performance certificates at PRC can bring their families to have a free dinner in the hotel. Every three months, the best five staff over the period are also given cash bonuses.

At Kempinski, monthly and annually-rated best staff get the chance to study or travel abroad for free.

“To become the best hotel, we will stick to the principle of taking care of our associates, handed down by Marriot’s founder,” says Malik. “We know the hotel would be in great trouble if our associates such as chefs and cleaners cannot come to work.”

Market Size of China Recruiting Market 2002-2006

According to iResearch’s China Online Recruiting Research Report 2004, China recruiting market rose to 4.16 billion RMB in 2004 and is expected to reach 5.12 billion RMB in 2006.

Deutsche Bank names head of trade finance for China

LONDON, April 7 (Reuters) – Deutsche Bank has appointed Wang Tao as head of trade finance for China within its global transaction banking division, the German bank said on Friday.
Tao, who will be based in Shanghai, will look after local trade sales and the expansion of the bank’s products on offer in China.

Tao was most recently head of forfaiting for HSBC in China, where he was responsible for delivering both structured financing and forfaiting solutions within the Chinese market.

Forfaiting is a form of trade finance that allows an exporter to grant attractive credit terms to foreign buyers.

http://asia.news.yahoo.com/060407/3/2ip78.html

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Technorati Profile

General Manager – Zhejiang

Company:
Joint Venture – US Manufacturing Company

Overview:
DaCare Executive Search is the leading recruitment firm specializing in Mainland China automotive job opportunities. www.dacare.com

The General Manager is responsible for establishing and leading the business JV in China, which has been created by the combined efforts of our client and the Chinese group. The General Manager (GM) will lead all business aspects of the JV, including strategy, sales and marketing, operations, finance and human resources. This includes developing and implementing high quality, “best cost” manufacturing, materials and logistics strategies, and building and leading the team to sustain world-class performance.

• Actively lead and manage the establishment of the JV operations to ensure successful performance Safety, Quality, Deliver and Cost (SQDC) and growth from Day 1
• Structure and manage the key executive positions (Finance, Human Resources, Operations, Quality) to ensure the business is staffed properly to meet all stakeholder requirements
• Customer Management—build and maintain close working relationships with the key commercial vehicle and engine manufacturers in China
• Ensure that proper reporting and communication processes are in place to keep the JV Board of Directors and company leadership informed about the performance and state of the business.

• Staff with the appropriate talent to create a strong business in terms of financial performance, SQDC and growth
• Provide leadership and on-site support to ensure China manufacturing facility is established on-time and on-budget to meet customer and business plan objectives
• Meet financial targets as designated in the White Paper and/or Budget
• Develop a sales and marketing plan to expand the market share and penetration of engine and driveline brakes in China in accordance with White Paper projections.

the person:

• Bachelor’s degree in Engineering, Operations or Business required.
• MBA or Masters desirable
• Requires a minimum of 7-10 years of progressive operations/engineering experience, with 2-3 years experience with a U.S. industrial company
• The incumbent should have a solid leadership track record along with a proven history of identifying and implementing process improvements.
• The incumbent must possess outstanding organizational skills, detail orientation, interpersonal, teamwork, project management and presentation skills.
• Travel – approximately 25%.
• Position based in Zhe Jiang Province China.

location: Zhejiang Province; China
start date: ASAP

please send your cover letter and resume to topjob_eos001@dacare.com

Consultant(China)

Company Intrducation:

A leading advisory, technology transfer and investment JV firm focused on commercializing cleaner and more efficient energy technologies in China.

Job responsibilities:

Key team member for technology and management consulting projects

Support development of sustainable energy projects in China

Perform detailed market and technology assessments

Analyze Chinese energy and investment policies, regulations and trends

Network with government officials and relevant foreign and domestic organizations

Write reports and presentations in English and Chinese

Communications in English and Chinese at a technical and business level

Some domestic and international travel may be required

Applicant requirements:

Mandarin is the first (native) language, and proficient in English is necessary

Strong technical and analytical skills,ability to quickly understand technical and financial concepts

Strong oral and written communication skills

Ability to work independently and as a proactive team member

Strong research skills with ability to contact organizations and individuals for interviews

Excellent computer skills at minimum, candidates must have excellent capability in Word, Excel and PowerPoint

University graduate with a technical degree£» relevant working experience is preferred

Personal interest and knowledge of sustainable energy issues in China

please send your resume to topjob_oth017bj@dacare.com

Sony China Chairman Retires

Sony China chairman Kei Kodera retired on March 31, reports Sina. Sony vice president Shizuo Takashino will replace Kei as Sony China’s new chairman. Shizuo Takashino has been Sony China’s general representative and Sony China design president since 2005. The report said that in 2006 Sony will increase its fixed-asset investment in China by about US$200 million.

http://www.pacificepoch.com/newsstories?id=58459_0_5_0_M

Red Hot China Venture Capital Forum Strikes Reform Gong

China’s venture capital’s emerging industry has struck the gong for much needed reforms for domestic venture firms at the sell out China Venture Capital Forum now being held in Shenzhen with over 1000 attendees. Sure, this discussion does reaffirm the purpose of this blog to educate and inform more global investors on these prescient trends: China’s policy drivers have full intentions to reform its nascent venture capital industry, liberalize the listing requirements for domestic startups and increase the available research and development funding for science parks.

According to an article in the Red Herring, “of the total of 183 Chinese venture-backed IPOs to date, 76 percent, or 143 were in foreign capital markets, and only 24 percent (4) were domestic claims the father of China’s venture industry, Cheng Siwei, Vice Chairman of National People’s Congress.

Siwei’s keynote address was bolstered by the voice of Xu Guanhua, the Minister of Science & Technology, who also sounded a clarion call to the Communist Party to dramatically relax listing requirements for Chinese companies so they no longer have to go offshore.

Of course, there are many reasons for the short march of Chinese venture capital liberalization. Professor Haiyang Li, Assistant Professor at the Jesse H. Jones Graduate School of Management at Rice University commented on this trend in a recent e-mail to CVN.

“I believe that the rush of venture capital funds into China’s technology industries is driven by two types of factors: domestic and international. From a domestic point of view, over the past 15 years, many Chinese technology firms have been growing very fast and they are facing “bottleneck” right now in terms of managerial capabilities, strategic market selection and financial support.”

Many western investors believe that the increased entry of China venture capital funds might solve some of these problems.

The key point sounded at the opening day forum is China’s ambitious goal to increase funding for research and development by 20010 to almost $112 billion. The view form both academics and industry watchers is that the Chinese government’s mandate on proprietary innovation over the next decade sends a clear signal to the capital markets that China Inc. expects to see more technology entrepreneurship.

Expect to read here about a flood of deals to be announced over the course of the next few months.

http://www.chinaventurenews.com/50226711/red_hot_china_venture_capital_forum_strikes_reform_gong.php

China Data: Human Resources

China Business Review recently published a HR data sheet, you can download from here. Inside, you will find:

Compensation and turnover statistics, as well as tips for attracting and retaining talent

China’s Tight Talent Market
China Market Movement, 1995-2005
Salary Increase Rate by Job Level in First Tier Cities, 2005
Average Salary Increase by City, 2005
Salary by Exptriate Type, 2005
Total Cash Composition by Expatriate Type, 2005
Supplementary Benefits Practices among Foreign-Invested Enterprises, 2005
Employee Turnover Rate, 2001-05
Turnover Rate by Staff Type April 2004-March 2005
Why Employees Leave, 2005
Why Employees Stay, 2005

Tips for Attracting and Retaining Talent
Pitfalls in Talent Acquisition in China

www.chinabusinessreview.com