Archives 2010

‘Monster’ job site heavyweight help to ChinaHR

Beijing: In 2008 the US-based online job company Monster Worldwide Inc made headline news when it acquired all of ChinaHR.com, paying $174 million for a remaining 55 percent stake in the Chinese recruitment site.

The acquisition enhanced the strength of the local website and cemented its hold on the No 2 position in China’s online recruitment market.

A ccording to leading domestic consultant company IResearch, ChinaHR.com’s online recruitment income accounted for 17.9 percent of the industry’s total last year. And it is expected to have stronger growth in the next few years, market observers say.

Further success and growth is expected in the years ahead because “Monster is committed to being at the pioneer in service technology and innovation in the sector”, said Sal Iannuzzi, company chairman and CEO.

As well, Monster’s global network gives ChinaHR.com a big boost because it is the only online recruitment company in the nation with a well-developed international talent database.

Cutting edge

Service, innovation-centered strategy and the global reach of Monster have all spurred ChinaHR’s development, Iannuzzi said, noting its patent semantic “6Sense TM” search technology delivers precise matches to both job seekers and employers.

Standard key word search technology might cause a company that needs a veteran accountant to wade through resumes from people who worked as an accountant decades ago – but are now singers, salespeople or teachers.

With technology powered by Monster’s 6Sense, recruiters can quickly and precisely find and target candidates who best meet their hiring needs, the CEO said.

The technology also enables job hunters to better fulfill their ambitions.
Iannuzzi said the technology can also significantly help people who have ambitions for a job transition between two disparate industries, a difficult search task for other online sites.

The combination of media, offline recruitment and campus recruitment all give ChinaHR an edge, he said.

Campus recruitment by ChinaHR.com, a key component of its business, has won applause from not only customers in China but also internationally.

Iannuzzi said Monster is promoting ChinaHR’s approaches of campus recruitment to its branches throughout the world.

“We are keen on listening to our customers and offering tailored services to fulfill their needs efficiently,” the CEO noted.

As well, resources from Monster in some 60 countries globally offer ChinaHR an advantage in aiding China’s State-owned enterprises (SOEs) scout talent overseas.

As China has begun to encourage more SOEs and banks to branch out overseas, they face a challenge finding senior professionals.

An example was a bank last year. It took only three weeks for ChinaHR to find 14 qualified overseas professionals it needed.

Before such a search may have cost the bank millions of yuan by hiring senior consultant companies to travel overseas for months at a time.

Internet Recruitment Slows In China, 51job.com Posts 5% Annual Revenue Decline

Showing that Chinese businesses were slow to hire new employees in 2009, Chinese online recruitment company 51job Inc. just revealed its unaudited financial results for the fourth quarter of 2009 and for the fiscal year ended December 31, 2009, and stated that revenues fell 5% from 2008.

While total revenues at 51job.com for the last quarter increased 15.2% over the fourth quarter of 2008 to CNY226.0 million, total revenues for the entire fiscal year 2009 decreased 5.0% from 2008 to CNY817.1 million.

Rick Yan, president and CEO of 51job Inc. stated: “In light of the challenges we faced and overcame in 2009, we were especially pleased to end the year on a high note by achieving record profit in the fourth quarter. We have observed a strengthening trend in market conditions and believe our online business in particular has carried solid momentum into 2010. In addition, with the opening of our new call center in Wuhan, this business is well positioned to not only extend our geographic reach and addressable employer base, but also streamline our service network for greater efficiency and margin expansion. We believe the year is off to a robust start for 51job.”

Net income for the fourth quarter of 2009 increased to CNY46.4 million from CNY6.8 million for the same quarter in 2008. Fully diluted earnings per common share for the fourth quarter of 2009 were CNY0.84 compared with CNY0.12 for the same quarter in 2008. Fully diluted earnings per ADS for the fourth quarter of 2009 were CNY1.67 compared with CNY0.24 in the fourth quarter of 2008. Net income for 2009 increased 46.9% to CNY112.5 million from CNY76.6 million in 2008. Fully diluted earnings per common share for 2009 increased to CNY2.02 from CNY1.35 in 2008. Fully diluted earnings per ADS for 2009 were CNY4.03 compared with CNY2.70 in 2008.

Print advertising revenues for the fourth quarter of 2009 increased 8.2% to CNY64.6 million compared with CNY59.7 million for the same quarter in 2008. The increase was primarily due to higher average revenue per page, which was partially offset by a lower volume of print advertising pages in 51job Weekly resulting from a decline in market demand. Although print advertising prices in each city remained relatively unchanged, overall average revenue per page increased 39.8% over the fourth quarter of 2008 due to an increase in page volume contribution from cities where print advertising prices are generally higher as compared to the same quarter of the prior year. The estimated number of print advertising pages generated in the fourth quarter of 2009 decreased 22.6% to 2,672 compared with 3,452 pages in the same quarter in 2008.

The estimated number of print advertising pages generated in fiscal year 2009 decreased 29.4% to 11,661 compared with 16,512 estimated pages in 2008. Unique employers using the company’s online recruitment services grew 39.9% to 143,451 in 2009 from 102,562 in 2008. Employers who purchase online services multiple times or in multiple quarters throughout the fiscal year are counted as one unique employer for the annual total.

Online recruitment services revenues for the fourth quarter of 2009 were CNY97.3 million, representing a 33.7% increase from CNY72.7 million for the same quarter of the prior year. Other human resource related revenues for the fourth quarter of 2009 increased 0.5% to CNY64.1 million from CNY63.8 million in the same quarter of 2008.

China 51job Q4 Profit Surges; Guides Q1 – Quick Facts

51job Inc. (JOBS: News ) reported net income of RMB46.4 million or RMB1.67 per ADS for the fourth quarter, compared to RMB6.8 million or RMB0.24 per ADS in the prior year quarter.

Excluding items, non-GAAP adjusted income was RMB52.6 million or RMB1.90 per ADS, compared to RMB13.6 million or RMB0.48 per ADS in the year-ago quarter.

Total revenues for the fourth quarter increased 15.2% to RMB226.0 million from RMB196.2 million in the same quarter in 2008.

For the first quarter of 2010, the company anticipates non-GAAP earnings of RMB0.68 per share to RMB0.78 per share, and revenue of RMB230 million to RMB240 million.

Google recruiting 40 staff in China despite withdrawal threat

US internet giant Google today posted ads for dozens of positions in its China business.

The move suggests it may be rethinking its threat to leave the country over cyber attacks and online censorship.

Google is seeking to hire 40 staff, including engineers, sales managers and research scientists in Beijing, Shanghai and the southern city of Guangzhou, according to advertisements seen on its website.

The job ads – the first since Google threatened to shut down its Chinese language search engine google.cn rather than bow to government censors – could mean the firm planned to stay in China, technology analyst Li Zhi said.

“They are in the process of resolving this issue (with the government),” said Li, a Beijing-based analyst at research firm Analysys International.

“Their business in China won’t change too much this year.”

Google threatened in January to leave China over what it said were cyber attacks aimed at its source code and at the Gmail accounts of Chinese human rights activists around the world.

Meanwhile, Google has continued to filter search engine results in China, which has the world’s largest number of online users at 384 million.

A spokeswoman for Google China did not respond to emails or phone calls from AFP seeking confirmation of the recruitment drive and the status of Google’s talks with Beijing.

Google representatives and Chinese officials were to resume talks in the coming days after a break for China’s Lunar New Year holiday, the Wall Street Journal reported Tuesday.

The talks will centre on whether the US firm can deliver unfiltered internet search results in China, the report said.

Google China spokeswoman Marsha Wang told AFP yesterday she had no updates on plans for talks when asked about the report.

Chinese male grads given edge in job recruitment

Male graduates get preferential treatment in their hunt for jobs, with a full nine percentage points more male university seniors having landed positions than their female counterparts as of the end of February.

A survey released by MyCOS HR Digital Information Co Ltd, a human resources consulting company in Beijing, shows that 30 percent of male university seniors set to graduate in July have found a job, while only 21 percent of female students have done so.

The survey also indicates that among the male students with offers of employment, 31 percent were hired by State-owned enterprises – traditionally the biggest employer of university graduates by far. Only 17 percent of the females were offered jobs at such companies.

In addition, female graduates in the sectors of transportation and logistics were offered 523 yuan less per month. Female majors in information technology and telecommunications were offered 420 yuan less than male students.

Li Xing, a former human resources employee in charge of recruitment at a State-owned real estate development company in Beijing told METRO that males are given hiring preference – 70 percent of the company’s staff is male.

“We only considered women for the positions such as secretaries,” Li said.

“Females are never considered for other positions, including construction supervisors, even though some of the female applicants were equally excellent as male counterparts.”

He also admitted there was a small income gap between male and female employees doing the same job, but said it wasn’t significant.

Wang Junjie, a consulting manager with the Beijing office of Towers Watson, a US-based human resources consultation, attributed the unpopularity of females in some workplaces to the nature of certain jobs.

Wang said male graduates are preferred in industries such as transportation and mining because overtime and frequent business trips are often required.

Male workers don’t take maternity leave, he noted.

Furthermore, some companies may bear extra expenses if they hire female employees, according to Wang.

For example, if a real estate company hires a female quality control supervisor and she goes on a business trip with a male colleague, the company must pay for two rooms instead of one for their accommodation.

Defying Global Slump, China Has Labor Shortage

By KEITH BRADSHER

GUANGZHOU, China — Just a year after laying off millions of factory workers, China is facing an increasingly acute labor shortage.

As American workers struggle with near double-digit unemployment, unskilled factory workers here in China’s industrial heartland are being offered signing bonuses.

Factory wages have risen as much as 20 percent in recent months.

Telemarketers are turning away potential customers because recruiters have fully booked them to cold-call people and offer them jobs.

Some manufacturers, already weeks behind schedule because they can’t find enough workers, are closing down production lines and considering raising prices. Such increases would most likely drive up the prices American consumers pay for all sorts of Chinese-made goods.

Rising wages could also lead to greater inflation in China. In the past, inflation has sown social unrest.

The immediate cause of the shortage is that millions of migrant workers who traveled home for the long lunar New Year earlier this month are not returning to the coast. Thanks to a half-trillion-dollar government stimulus program, jobs are being created in the interior.

But many economists say the recent global downturn also obscured a longer-term trend: China has drained its once vast reserves of unemployed workers in rural areas and is running out of fresh laborers for its factories.

Since China does not release reliable, timely statistics on employment, wages are considered the best barometer of labor shortages. And temp agencies here in Guangzhou raised their rate for factory workers this week to $1.17 an hour, from 95 cents an hour before the new year holiday.

The rate was 80 cents an hour two years ago, before the global financial crisis temporarily depressed wages and demand.

The dearth of returning migrants set off a desperate scramble this week to recruit the workers who did step off long-haul buses and trains returning from the interior.

At a government-run employment center in downtown Guangzhou, employers seeking workers outnumbered job-hunters Thursday afternoon.

Outside, Liang Huoqiao, a 22-year-old plastics worker, joined a small group of men and women studying a 40-foot-wide list of companies seeking workers.

“You can walk into any factory and get a job,” he said.

The official China Daily newspaper said on Thursday that surveys of employers showed that one in 12 migrant workers was not expected to return here to Guangdong Province. Cities farther north along China’s coast are also running low on labor; Wenzhou alone posted a shortage of up to one million workers.

Guangdong provincial officials announced on Wednesday that they were considering increasing the minimum wage, which varies by city and ranges from $113 to $146 a month.

Higher wages could ease labor shortages by prompting factories to reduce their work forces.

But many factories already pay well above the minimum wage. They are wary of further pay increases because it is not certain they can pass the increased costs on to their customers — in particular, strapped importers in the United States and the European Union.

Rising wages suggest the re-emergence of a worker shortage that was becoming evident before the financial crisis. A government survey three years ago of 2,749 villages in 17 provinces found that in 74 percent of them, there was no one left behind who was fit to go work in city factories — the labor pool was dry.

Mass layoffs in late 2008 and early 2009 because of the global financial crisis temporarily masked the developing shortage of industrial workers. But two powerful trends were still working to reduce the supply of young people headed for factories.

For one, the Chinese government has rapidly expanded postsecondary education. Universities and other institutions of higher learning enrolled 6.4 million new students last year, compared to 5.7 million in 2007 and just 2.2 million in 2000.

At the same time, China’s birth rate has been sliding steadily ever since the introduction of the “one child” policy in 1977.

Labor shortages have returned quickly in recent weeks as these long-term trends have collided with a recovery in overseas demand for Chinese goods.

Far more jobs are available these days in China’s interior. Government projects like rail and highway construction have absorbed millions of workers, particularly after Beijing allocated nearly $600 billion to economic stimulus spending in 2009 and 2010. Consumer spending is also rising briskly; auto sales more than doubled last month from a year before, and this has created many jobs in retailing, restaurants, hotels and other inland businesses.

Even before the holiday, companies were struggling to find the employees needed to keep assembly lines running.

At many factories, white-collar managers and engineers were forced to spend time on assembly lines to meet deadlines before the lunar New Year, because laborers were in such short supply. The managers often struggled with the tedious but intricate tasks required to make everything from toys to DVD players

“People working in the office, like me, have been asked to help on the factory floor,” said Sky Niu, the sales manager at the Hengjia Electronics Company in Dongguan. “Of course, we can only help on the simpler tasks, such as packing.”

The labor shortage is not benefiting workers just through higher wages. Personnel managers here say they are also abandoning the informal tradition of not hiring anyone over 35 — they say they are now hiring workers up to 40 years old, and sometimes older, despite concerns about whether they can keep up week after week with the rapid pace of Chinese assembly lines.

It remains to be seen if Chinese factories will learn from their hiring difficulties now and be less quick to lay off workers during the next global downturn.

The current system “is not stable, it’s not healthy,” said Han Dongfang, the director of the China Labor Bulletin, a Hong Kong-based group that advocates collective bargaining.

Though the wage boost increases the prospect of inflation, it may have another more salutary aspect. The Obama administration has been pushing China to let the renminbi rise against the dollar, which would erode some of China’s formidable advantage in export markets. Rising wages in China have the same effect — while also giving Chinese families more spending power.

Letting wages rise benefits workers, said Jing Ulrich, the chairwoman of China equities and commodities at J. P. Morgan. Letting the currency rise benefits currency speculators, she said.

Mr. Liang, the 22-year-old plastics worker, said that he expected his pay to double in the next five years and added that he already had set his priorities.

“For sure, I want to buy a car,” he said. “Car first, then maybe marriage later.”

Hilda Wang contributed reporting.

Amid threats to exit China, Google announces: we’re hiring

By Yin Hang

Weeks after Google threatened to leave China over hacking allegations, the search engine giant has posted 40 new openings for jobs at its Beijing, Shanghai and Guangzhou offices.

The company is accepting applications on its website.

Jobs are available in several departments including sales and marketing, human resource management as well as design and engineering.

By late Wednesday, Google China did not respond to email questions sent by the Global Times to confirm the recruitment.

The company recently threatened to exit China after they alleged that people based in the country hacked into its computers and clients’ email accounts. As a result, Google said it would no longer restrict content on its Chinese language site.

Google China remains an ideal company to work with for lots of Chinese engineers.

Zhang Mingyu, 28, an IT engineer from Guangzhou, told the Global Times he admires the company’s work environment and culture.

“You can realize your own dream there,” Zhang said. “So, even if Google China would withdraw from China soon after I work there, it still will be a splendid experience for me.”

Zhang Hao, an IT engineer who worked at Baidu, a competitor of Google, told the Global Times that if Google pays him more money, he would definitely go to Google.

Zhang said that he is not worried about Google leaving China because the Chinese market is valuable.

“Google is a big corporation, so naturally it is good at making news. But at the same time, it knows very well how important China is to its development,” Zhang said.

The Wall Street Journal reported Tuesday that Google representatives and Chinese officials will resume talks about the company’s future in the country.

ZenithOptimedia, one of Google China’s advertising partners, told the Global Times that Google’s clients are looking forward to seeing the company staying here.

“Higher audience rate brings in profits to the search engine. Google China is second to no one but Baidu, so naturally it could maintain a large number of its clients,” said Steven Chang, chief executive officer of ZenithOptimedia office in China.

Sanofi-aventis To Establish New Consumer Healthcare JV In China

Published: 29-Jan-2010

Sanofi-aventis has signed agreements with Minsheng Pharmaceutical to form a new consumer healthcare joint venture (JV). Sanofi-aventis will obtain a majority equity stake in the new entity. The agreements were signed in the presence of senior leaders of the Hangzhou municipal government.

The proposed Sanofi-aventis-Minsheng joint venture will primarily focus on vitamins and mineral supplements (VMS).

Recently, Sanofi-aventis had announced its planned acquisition of Chattem, a manufacturer and marketer of branded consumer healthcare products, toiletries and dietary supplements in the US.

Hanspeter Spek, president of global operations at Sanofi-aventis, said: “We are pleased to take a significant step toward establishing the new consumer healthcare joint venture with Minsheng, our long-standing partner. Combined with our leadership position in vaccines, we will continue to contribute to preventative healthcare in China. Entering the world’s second largest consumer healthcare market is also a strategic move for Sanofi-aventis to consolidate its position in consumer healthcare.”

Zhu Fujiang, chairman of Minsheng Pharmaceutical, said: “We are equally excited about the prospect of forming the new consumer healthcare joint venture with Sanofi-aventis, after more than ten years of successful partnership.Sanofi-aventis is an energetic and dynamic company. His success with pharmaceuticals and vaccines has demonstrated his strong marketing capability.

“We hope that once materialized, the new venture will revitalize our consumer healthcare business and expand the reach of our products to benefit more consumers. We also hope that the new venture will serve as a platform for us to develop more health products in order to contribute to the local economy and meet consumer needs.”

Glaxo to cut 3,000 jobs as focus shifts to emerging markets

GlaxoSmithKline is poised to announce cuts of more than 3,000 jobs this week at its European and US operations as the focus shifts from stagnant Western markets to China, emerging Asia, and Latin America.

By Ambrose Evans-Pritchard
Published: 6:51PM GMT 31 Jan 2010

The retrenchment follows last week’s move by AstraZeneca to slash 8,000 jobs in a five-year restructuring plan, on top of 12,600 cuts already made. The lay-offs at the UK’s two largest drugs groups are a blow to one of the last surviving fortresses of British industry, responsible for a quarter of the world’s top 100 medicines.

The cuts are a sign that the old strategy of relying on patents and selling “white pills to Western markets” has passed its time as generic drugs sweep global markets.

Glaxo aims to reduce £1.7bn in annual costs by the end of next year and re-focus efforts on research and development. The company has seen lower demand than expected for its Pandremix vaccine against H1N1 swine flu as the virus proved less deadly and contagious than feared at first, though it may yet come back to bite in a mutated form, as the similar Spanish flu virus did in 1919.
The vaccine has lifted sales by around £835m over the last three months but it has not proved a bonanza.

Sales of Glaxo’s H1N1 drug Relenza have also fallen short as swine flu fears subside. Germany alone cut its order of Relenza by 30pc earlier this month, costing the company almost £120m in lost sales. France plans to cancel half its expected orders. Britain, Holland, Spain, and Belgium have all been in talks over reductions. In the end, many patients who did come down with the disease needed just one pill instead of two.

Analysts say the group is likely to announce a return to profit growth of around 12pc to £8.69bn at its full-year results on Thursday after an 11pc slip the year before.

The company has been hit by generic versions of its herpes treatment Valtrext after the recent expiry of its US patent, although it has the lupus drug Benlysta wating in the wings. Valtrex sales are expected to drop by two thirds this year to $782m, raising concerns that the group is too reliant on aging patents.

Andrew Witty, the chief executive, is trying to diversify away from its core pharmaceutical business in the West to consumer health, especially in China.

Tougher rules have made it harder to make money in Europe and America. The EU has passed swingeing codes that have pushed key research activities abroad.

The share of the world’s clinical trials conducted in the UK fell from 6pc to 2pc between 2000 and 2006, largely due to intrusive regulations that have sharply raised costs.

Pfizer’s Looking for More Sales Reps. In China.

By Jacob Goldstein

Same song, different verse: A big drug maker is cutting jobs in the developed world and growing in China.

This time, it’s Pfizer, which said today that it’s looking to increase its sales force in China to 3,200 by the end of next year, up from about 2,300, Dow Jones Newswires reported today. The company has said it will cut nearly 20,000 jobs as part of the Wyeth merger.

Eli Lilly said last fall that it would continue to hire in China, even as it cuts jobs in the U.S. and other developed markets. Novartis is also making a big push into China, hiring hundreds of workers and spending $1 billion to expand a research center in Shanghai.

With business tough in developed markets, drug makers are counting on the developing world for growth. But that’s not always a sure thing, either; just today, the WSJ reported that the Philippine government is asking drug makers to submit a list of proposed price cuts on their “top-selling and most expensive drugs.”

Last summer, the government in Manila put price controls on several drugs, including Pfizer’s Norvasc and Lipitor. Pfizer had previously offered to cut the prices on some of its drugs there, and said last year it was “disappointed” that the government didn’t accept its offer.