Archives August 2013

Boost for private capital in banking industry

Rules remove capital adequacy ratio requirements, limits of equity investment for financial institutions
The Chinese government is loosening its reins on private capital’s entry into the banking industry to encourage more lending to small businesses, according to a draft of new rules released by the China Banking Regulatory Commission.
In a statement dated Aug 9, the commission said it has revised rules regarding administrative licenses for Chinese lenders and is seeking feedback from the public until Sept 9.

According to the rules, it has removed the capital adequacy ratio requirements and upper limits of equity investment for domestic financial institutions that will initiate the establishment of a commercial bank.

Instead, it added a requirement that the initiator must possess a good social reputation, have no record of illegal behavior and have no big issues regarding improper internal management.

Zhou Dewen, the chairman of the Wenzhou Small and Medium-sized Enterprises Development Association, said the new rules will further open the door for private capital to enter the financial field because it lowers the threshold for private companies.

He said a large proportion of private capital is in the hands of individuals instead of with an organization that has registered at an administration for industry and commerce, therefore the removal of the previous requirements would facilitate such capital to enter the banking business.

“We noticed the new rules have also added some restrictions, such as private players only using their own capital to hold banking shares, instead of purchasing shares on behalf of others. This is necessary for containing the risks of private banks,” Zhou said.

The new rules also loosened the requirements for banks wanting to set up branches in China and overseas by removing the standards for banks’ allocated capital for their branch operations during the application.

Lower thresholds to establish a bank in China would encourage some large financial institutions to extend their footprint in small, medium-sized and regional banking services and thus promote financial support for small businesses, said Guo Tianyong, director of the Research Center of the Chinese Banking Industry at the Central University of Finance and Economics.

He said the commission has also increased the capital adequacy requirements for banks’ overseas institutions, to prevent overseas risks from spreading to domestic sectors.

On Monday, the State Council, China’s cabinet, vowed to improve financial support to small businesses, in a statement released on its website, while the economy continues to falter and the government is curbing over-rapid credit expansion.
The development of small financial institutions will be further encouraged to improve financial services to small businesses – and the threshold at which small companies can raise funds directly on the capital markets will be lowered, it said.

“We would encourage large and medium-sized banks to develop special institutions and outlets for lending to small businesses at a faster pace and improve the scale and standardization of such lending,” said the State Council.

The commission figures show that only 45 percent of the total shares of joint-stock commercial banks were in private hands at the end of 2012.

China is stepping up its efforts to get private enterprises into more businesses, said Standard & Poor’s Ratings Services in a report published on Monday.

“For the third time since the Asian financial crisis, the country is in the midst of another major push to get private enterprises into more businesses,” said Standard & Poor’s credit analyst KimEng Tan. “If the reformers prove to be third-time lucky then strong economic growth could continue to be a key sovereign-rating support for the foreseeable future.”

CEO of Recruitment Firm Zhaopin Sees Strong Job Market in China

Worried about China’s slowing economy? Evan Guo, chief executive officer of Zhaopin Ltd., has more than 2.5 million reasons not to. That’s the number of job opportunities posted on Zhaopin.com, one of China’s largest recruitment websites.

Despite sharply slower growth, the world’s second-largest economy continues to create jobs, he says.

Zhaopin, which is majority-owned by Australian job site Seek Ltd., SEK.AU +2.16% chalked up revenue of $138 million in 2012 with a workforce of 3,200, benefiting from a growing economy and an increasingly Internet-savvy, job-hopping young workforce. But they also face challenges from rival Chinese job sites such as 51job Inc., JOBS -1.54% and from the rise of social networks. Mr. Guo, who previously worked at management consultancy McKinsey & Co. and helmed a state-owned enterprise in China’s logistics sector, sat down with The Wall Street Journal in his Beijing office to discuss the evolution of China’s Internet and why the models you learn at business school don’t work in China. Edited excerpts:

WSJ: What did you learn at McKinsey that has helped you in your current role?

Mr. Guo: At McKinsey you learn ways of thinking, analytic frameworks. But often they are not applicable to the entrepreneurial world in China. In the Western approach, you look at key performance indicators, you check the data. But in China you have to respond very quickly to changes in policy, what employees are thinking, often based on little data. You have to act based on gut feelings; if you act according to what the text books say, you will get it wrong.

WSJ: There is a lot of concern about the slowdown in China’s growth. How concerned are you?

Mr. Guo: We won’t see a return to 10% growth. Expectations now are for something around 7%. But that’s not a disaster. If I look at our own business, employment is still growing. High-tech, logistics, services, health care are all recruiting. We’re also seeing rapid growth in job opportunities in third- and fourth-tier cities. I’ve spoken to a lot of small firms and they are growing fast and adding workers.

WSJ: Do you see any sectors that are doing less well?

Mr. Guo: We see fewer job opportunities in manufacturing, and also in retail. Retail is worrying because the government wants to boost Chinese consumption. But when we look at how shopping malls are doing, they are not doing so well. E-commerce explains some of it, but not all of it.

WSJ: In the U.S., social networks like LinkedIn have been a major challenge to recruitment websites like Monster. How will that play out in China?

Mr. Guo: In the U.S., LinkedIn has overtaken Monster but so far it has not had much impact in China. Chinese are very practical when it comes to switching jobs. You can see that in how Chinese talk about salary. In the U.S. it’s considered rude to talk about how much you earn, but in China people are quite open about it.

Zhaopin tells Chinese job seekers what they want: “Can I get more money in this job?” LinkedIn is through social networks, so it’s very indirect.

We survey students about where they most want to work. A few years ago, they all wanted to work at multinational firms like Google and Microsoft. Now they see Chinese firms doing well and see them as more desirable, so I am not too worried about competition from overseas firms.

WSJ:Guanxi, or personal connections, is meant to be very important in China. But that’s not how Zhaopin works.

Mr. Guo: Job seekers always want the best opportunities. Guanxi can tell you about some of the opportunities, but recruitment websites can tell you about all the opportunities and give you salary comparisons. At the entry-level or the midlevel that’s important. For top executives, then it’s about personal connections again—they won’t be using the website.

WSJ: There is a wave of consolidation in China’s Internet. What does that mean for Zhaopin.com?

Mr. Guo: The Internet giants can drive big traffic, but traffic doesn’t resolve marketplace issues. In verticals like recruitment or real estate, you need deep knowledge of what customers are searching for to succeed, and that’s not easy to develop. I don’t worry too much about whether we have this business model or that business model—if I did that I would never sleep. It’s more important to think about what customers want and how to give it to them.

WSJ: How much space does Zhaopin.com still have to grow?

Mr. Guo: We are already covering 100 cities so that is already quite wide. But in terms of depth we are quite shallow, covering about 20% of the marketplace. The price employers pay to advertise with us is also quite low by international comparison, so in volume terms and in price terms we have room to grow.

WSJ: Is an initial public offering on the agenda?

Mr. Guo: We are considering an IPO in the future. That depends on capital-market conditions, our own strategy and execution, and what employees want—they see an IPO as a source of pride and a landmark for the firm.

WSJ: How receptive do you think foreign investors are to Chinese firms right now?

Mr. Guo: You have to distinguish between private and public markets. In the private markets, I see private equity and venture capital investors are hungry for deals. But there are less and less good deals and they become more and more expensive. On public markets, high-quality Chinese companies still get attention. Some big funds are interested in Zhaopin.com. But for individual investors, it’s more difficult to understand the opportunity when they can’t even pronounce the name of the firm.

Résumé
Education: Northwestern University Kellogg School of Management, 1999, with a master’s in business administration.

Career: In 1994, Mr. Guo was one of the first analysts in China employed directly by McKinsey, a firm he left as a global partner. He started a software outsourcing firm and headed state-owned logistics operation Sinotrans Air Transportation Development Co., before joining Zhaopin as chief executive in 2010.

Corrections & Amplifications
In an earlier version of this story, the credit accompanying the photo of Zhaopin Ltd. Chief Executive Evan Guo misstated the source of the image as Zhaopin Ltd. The photo was taken by Lilian Lin, a Wall Street Journal researcher.

Employment pressures affect young Chinese love lives

For 22-year-old college graduate Han Xiaolei, the upcoming Qixi Festival, also known as Chinese Valentine’s Day, is doomed to be a heartbreaking one.

The native of central China’s city of Wuhan just broke up with his girlfriend, who had to go back to her hometown in south China’s Guangxi Zhuang Autonomous Region after failing to find a job in Wuhan, as Han did.

“I cried a lot on the day we broke up and it still hurts. We were together for three years, but our love had to surrender to reality,” Han said.

Soaring living costs and the growing difficulty of finding a job have made it difficult for young Chinese to maintain healthy romantic relationships. Even those who are fortunate enough to find a job are often overworked and underpaid, leaving them with no time or money to sustain a relationship.

“The reality for graduates in China is that their relationships are directly affected by their employment status,” said Fan Xianzuo, a professor at Central China Normal University who has been studying the post-college lives of the school’s graduates.

According to a nationwide employment survey conducted by Wuhan University, about 43 percent of China’s graduates may be unemployed in 2013 as a result of the country’s weakening economy.

An employment report issued by the Beijing Youth Stress Management Service Center in May showed that the average monthly pay for this year’s new graduates is 2,000 to 2,500 yuan (327 to 408 U.S. dollars), accounting for 60 percent of the average monthly salary for new grads in 2012.

Although Beijing resident Yang Lijun managed to nail down a job in the same city as her boyfriend after graduating from Tsinghua University, she is still having difficulty in keeping their romance alive.

“We have no time to be as romantic as before, as my job’s night shifts basically deprive me of the opportunity to see him,” Yang said.

“We have no time or money for regular celebrations. Life has made us the most unromantic people in the world,” she said.
Yang now lives with three roommates in a 60-square-meter apartment and only sees boyfriend during weekends. Her monthly rent is 2,400 yuan, nearly two-thirds of her monthly pay.

It is customary for young Chinese couples to purchase a home before getting married. Many women even refuse to marry a man before he has obtained a home. However, growing housing prices have made it difficult for young men to do so.

The average transaction price for a single square meter of housing in Beijing in July was 25,292 yuan, as estimated by HomeLink, a property brokerage firm.

“When I think about the down payment on our future apartment, my mood for romance is immediately gone,” Yang said.

Fan said he believes new graduates like Han and Yang need the care and support of all of society, as young people will play a significant role in China’s future development.

“Unlike their parents, this generation was born and raised during an economic boom. Few of them have had difficult life experiences, so they need time and support to become strong and independent, both financially and mentally,”Fane said.

Li Tonggui, a social psychology professor at Peking University, said more social services should be offered in order to help graduates adapt to post-campus life.

Although things have been difficult so far, Yang said she is still confident in the future of her relationship.

“The days when we work hard together for our future can be a lifetime fortune for us. It doesn’t matter how we celebrate the Qixi Festival. A phone call or a text message could be the best gift, as long as we are together,” she said.

Beijing teams investigate Sanofi for alleged bribery

BEIJING city corruption and health officials have launched an investigation into allegations that staff at French pharmaceutical giant Sanofi paid bribes totaling some US$280,000 to 500 Chinese doctors.

The joint investigation will probe claims reported in China’s 21st Century Business Herald newspaper that company staff paid 503 doctors in 79 hospitals bribes totaling 1.69 million yuan in a bid to increase sales.

The paper, citing documents provided by an anonymous whistleblower, said Thursday that in 2007 Sanofi paid doctors 80 yuan every time a patient bought its products, with the largest payment being 11,200 yuan.

The products named in the report are two drugs for high blood pressure.

Most payments were made to medical staff in hospitals in Beijing, Shanghai, Guangzhou, capital of southern Guangdong Province, and Hangzhou, capital of eastern Zhejiang Province, said the newspaper

The report claimed these were listed as “research expenses.”

The Beijing municipal health bureau will coordinate with the disciplinary authorities to investigate, a spokesman told Xinhua News Agency yesterday.

Define the boundary

How to define the boundary between a “research expense” and bribery is key to the case, industry insiders said.

Investigators will seek to find out whether clinical research programs had lists of patient names and medical reports, said a Beijing health bureau official.

On Friday, Guangdong Province health bureau summoned the heads of 16 hospitals named in the report, vowing to carry out a thorough investigation.

Sanofi said that it took the allegations “very seriously” and has begun relevant procedures to investigate the allegations.

“We have zero tolerance to any unethical practice,” it said.

Sanofi added that it has “processes for reviewing and addressing such issues in a manner that is consistent with our legal and ethical obligations.”

The allegations come after four executives from British drug firm GlaxoSmithKline were arrested last month for alleged bribery and other offences.

China’s top economic planner is investigating 60 foreign and domestic pharmaceutical companies over their prices.

UN official sees Chinese economic growth ‘stable’

President of the United Nations General Assembly Vuk Jeremic said Friday that the Chinese economy is one of the strongest performers worldwide and offers optimism to the world economy.

Jeremic, president of the 67th session of the UN General Assembly, made the comments in a joint interview with Chinese media in Beijing.

He said one of the most significant reference points to the world economy is China’s economic situation. If China is going in the right direction, the rest of the world will be going in a good direction economically. If China is having difficulties, everybody is going to have difficulties.

In the first half of the year, China’s economic growth slowed to 7.6 percent.

“The growth, which some people question that whether this is good enough or strong enough… I don’t really think that there are too many countries in the world that can have 7.6-percent growth, a very stable one,” he said.

“I understand that of the 7.6-percent growth rate, 7.5 percent can be attributed to domestic demand, so we are talking about really ‘solid’ growth, perhaps not 10 percent like China used to have,” he added.

Jeremic praised China for showing the strength and resilience in the face of international challenges.

As to the global political and economic landscape, he believed the UN remained key to resolve the challenges in the 21st century by engaging everyone equally in the General Assembly. Although important organizations like the G20 are emerging, without the UN and UN General Assembly, there is no chance to resolve challenges in a satisfactory manner, he said.

The role of the emerging markets and developing countries will become stronger and the most significant element in this new geopolitical puzzle and the new landscape, as part of the wider global development, he noted.

The Millennium Development Goals will expire in 2015 and they need to be replaced by a new vision for world development for the next 20 to 30 years, he said.

World leaders at the Rio+20 conference in June 2012, agreed for the General Assembly to draft a development agenda for the 21st century. Over the next 24 months, the assembly will need to complete negotiations, achieve a consensus so the world will develop in a sustainable way, not exacerbate social differences and tensions in a country and between countries, and make the gap between the rich and poor smaller.

Jeremic said China plays a critical role in this process and looks forward to working with the country, hoping it will continue to play a constructive role in the UN.

Jeremic will be replaced by John William Ashe, ambassador to the UN for Antigua and Barbuda, for the 68th session in September.

Pharm giant says it takes bribery claims ‘seriously’

Allegations by a whistle-blower that French pharmaceutical giant Sanofi-Aventis bribed more than 500 doctors in China in late 2007 to boost its sales are being taken “very seriously” by the company.

An anonymous whistle-blower on Thursday told the 21st Century Business Herald newspaper that Sanofi staff paid about 1.69 million yuan ($276,000) in bribes to 503 doctors at 79 hospitals in Beijing, Shanghai, Hangzhou and Guangzhou in November 2007. The company also allegedly bribed 43 doctors at five hospitals in Beijing in the form of cash payments and gifts each month from May to October in 2007.

The allegations come after four Chinese executives from British drug firm GlaxoSmithKline were detained last month for suspected bribery and tax-related violations. China’s top economic planner is currently investigating 60 foreign and domestic pharmaceutical companies over their prices.

British drugmaker AstraZeneca and Belgian drugmaker UCB recently admitted they are being investigated by Chinese authorities.

The 21st Century Business Herald, based in Guangzhou, Guangdong province, surmised that the whistle-blower worked in Sanofi-Aventi’s upper management in China based on the nature of the content provided to the publication.

The whistle-blower said the bribes were given in the name of research spending and would only give the name “Pei Gen” to the newspaper.

“Sanofi is confident in our business operations in China and committed to conducting its business globally with integrity. We are determined to respect the ethical principles governing our activities and are committed to abiding by the laws and regulations that apply in each country where we operate. We have zero tolerance to any unethical practice,” the company said. “At this time, it would be premature to comment on events that may have occurred in 2007.”

The National Health and Family Planning Commission recently passed a plan to fight what it called inappropriate behavior in selling medicine. Li Bin, head of the commission, stressed in July that medical reform is needed to combat bribery in an industry where many Chinese hospitals rely on the sale of medicine.

Currently, the central government sets a pricing standard for medical services provided by public hospitals. Many experts believe the policy keeps the price of services at an artificially low level and puts pressure on hospitals and doctors to sell more medicine and possibly accept bribes.

In 2012, Beijing introduced new regulations on public hospitals to emphasize quality medical services and discourage hospitals and doctors from relying on the number of prescriptions they dole out.

As part of the reform, some hospitals are required to sell medicine at cost, but they are allowed to charge 42 yuan to 100 yuan in consultation fees (health insurance companies are required to reimburse the 40 yuan to the patient). Before the reforms, a consultation would cost between 5 yuan to 14 yuan.

But Niu Zhengqian, deputy director of the Chinese Pharmaceutical Enterprises Association, said the key to preventing doctors from excessively prescribing medicine lies in changing the way the healthcare insurance industry pays hospitals.
“Currently the public healthcare insurance sector pays hospitals based on each item of the service they provide, encouraging them to choose more expensive items, from which doctors can get more illegal kickbacks,” Niu said.

An advanced payment system is also effective, said Wang Hongzhi, a healthcare industry consultant. With this plan, a local government healthcare agency pays a hospital a specified amount of money to cover healthcare fees. If there is a surplus, the hospital pockets it; if there is a deficit, it must share the costs with the local agency.

“If the market is more competitive and there are more private healthcare providers, that will also help solve problems in the industry,” Niu said.

Tough job market for over three million college students: official

A dismal job prospect is expected to unfold itself for China’s numerous college graduates, as over three million college students could fail to land a job this year, some official estimated in a press conference yesterday.

The figure was revealed by Wang Yujun, a senior official of the Ministry of Human Resources and Social Security, in the media briefing for the annual report of the reform and development of China’s social security.

Against the backdrop of a record high number of graduates nearing seven million this year, more than three million college students could probably not find a job before graduation, said Wang.

She claimed that the estimation is made by taking into account of the initial employment rate which exceeds 70 percent in previous years.

The initial employment rate refers to the percentage of graduates who have secured a job before leaving the campus, which also encompasses those who have enrolled as post-graduates or by a foreign university.

The employment difficulty is caused not only by the nation’s education mode and students’ career vision, but also the quantity and quality of the job vacancies at present, Wang added. She predicted that the situation can hardly get better in a few years to come.

Sanofi cuts 2013 goal, authorities visit China office

* Sees FY earnings down 7-10 pct at constant currencies
* Says one office visited by authorities in China
* Says not aware of visit purpose
* Q2 business net income down 23.4 pct to 1.48 bln eur
* Shares down 6.2 percent (Adds details, CEO comments, background)

By Elena Berton

PARIS, Aug 1 (Reuters) – Sanofi SA cut its 2013 earnings forecast as it reported a steeper-than-expected drop in second-quarter profit, hit by the effect of patent losses, currency fluctuations and an inventory setback in Brazil.

The French company also said one of its 11 regional offices in China had been visited by the State Administration for Industry and Commerce (SAIC (NYSE: SAI – news) ) in Shenyang, but added it was not aware of the purpose of the visit from the agency.

A probe by Chinese authorities into the activities of GlaxoSmithKline (Other OTC: GLAXF – news) led to allegations of a wide-reaching bribery scandal last month and prompted speculation that other international companies could be drawn into the investigation.

“We are not really aware of the purpose of the visit, we are working with,” Chief Executive Chris Viehbacher told reporters on Thursday. SAIC is one of China’s anti-trust regulators in charge of market supervision, which also looks into low-level bribery cases.

Viehbacher added that the French group’s local head office in Shanghai had not been contacted by Chinese authorities.
China’s 21st Century Business Herald earlier reported Sanofi (NasdaqGM: GCVRZ – news) and U.S. drugmaker Eli Lilly & Co had confirmed visits to their offices by the Shenyang bureau of the SAIC.

Sanofi said in an emailed statement to Reuters that the agency visited its offices on July 29, but said the purpose of the visit was unclear.

Eli Lilly said in a statement to the newspaper that the visit was a routine inspection by the relevant government departments that occurred in early 2013, and was completely different to previous industry investigations led by the public security bureau.

“Regarding this inspection, we have fully cooperated,” the U.S. group told the paper. Lilly representatives in China did not respond immediately to a request for comment from Reuters.

China remains a priority market for Western drug makers, which can command hefty price premiums for their medicines even though they are no longer protected by patents.

TOO EARLY

A promise this week by GlaxoSmithKline to make its drugs more affordable in China in the wake of the bribery scandal could be a lever for Chinese authorities to start redressing the balance.

Viehbacher said it was premature to say what repercussions the scandal would have on Sanofi’s business in China.

“We are examining the issue closely and we are examining our business in China, but I think it’s too early to draw any conclusions,” he said.

Sanofi also predicted earnings this year would be between 7 and 10 percent lower than in 2012 at constant exchange rates, but said it continued to expect to return to growth in the second half of 2013.

Sanofi had previously forecast that annual profit would be flat to 5 percent lower at constant currencies.

Its shares were down 6.2 percent at 75.13 euros by 0758 GMT, the biggest losers in the CAC 40 (Paris: ^FCHI – news) index in Paris which was up 0.3 percent.

“Whilst this is disappointing, the one-time nature of most of the areas of weakness now creates even easier comparatives for the growth rebound expected in the second half of 2013 and beyond,” analysts at brokerage Jefferies said in a note to clients.

The group’s closely watched business net income, which excludes items such as amortisation and legal costs, declined 23.4 percent to 1.48 billion euros ($1.96 billion), below an average of 1.79 billion in a Thomson Reuters I/B/E/S poll of nine analysts.

Sales shrunk 9.8 percent to 8 billion as last year’s patent expiry on anti-clotting drug Plavix, once the world’s second-best selling prescription drug, sliced 481 million euros off revenue in the quarter.

The group’s generics business in Brazil was hit by much higher-than-planned inventory levels during the second quarter, Sanofi said.

As a result, Sanofi had to adjust sales by 122 million euros and book an additional provision of 79 million to write off the inventory and other related costs. ($1 = 0.7531 euros) ($1 = 6.1289 Chinese yuan) (Additional reporting by Michael Martina in Beijing; Editing by Christian Plumb and David Holmes)

Job opportunities in China at lowest level since 2010

Employers in China are decreasing their expected hiring, shows a recent report by the recruitment firm Hudson. They estimate an index, measured through interviews with employers, that tracks the expected hiring for the next quarter.

The figures for the third quarter of 2013 are reported as the lowest since the beginning of 2010.

Fewer jobs and more applicants

Bi Lin, joint general manager for Hudson in Shanghai explains the reasons he sees for such a reduction. In an interview with China Daily he says, “The government’s support of quality growth has resulted in a slower rate of growth, as many organizations are focusing on achieving internal efficiency and productivity gains in the first instance rather than adding headcount.” Of the 816 companies interviewed by Hudson, 13.2% said they would reduce their headcount in the next quarter. This is a 6.2% rise over the previous quarter.

The problem for job applicants is twofold. Along with the predictions from Hudson of declining recruitment, there are also a rising number of applicants for positions. This is blamed on several factors, including the closing of a number of export-focused companies amidst economic difficulties globally, and also an increase in the number of Chinese currently overseas returning to China due to the same economic difficulties.

Differences across the sectors

The hiring and job situation is quite mixed amongst the different sectors of the market. The Hudson report identifies stronger hiring intentions for highly qualified and specialized workers, in particular those in research and development, chemicals, healthcare, laboratory roles, and digital marketing.

The property and construction sector is seen as the industry with the most opportunity, with strong growth in hiring. This is due to the continued strength of commercial and retail property, with a strong domestic demand unaffected by overseas economic difficulties or tightening regulations for overseas capital in China.

Healthcare, too, has strong potential. 71.2% of respondents in this sector indicated increased hiring intentions for the next quarter. Bi explained that this is due to the upcoming plans of a number of global pharmaceutical companies currently establishing research and development centers in China increasing their demand for employees.

6 Job-Hunting Tips for the Employed

People aren’t waiting until they are unemployed to start looking for their next opportunities. New research has found that 73% of employees say they are comfortable searching for a job while they still have one.

However, those respondents are not only looking for a new job while employed: they’re searching while they’re working. Respondents say they would be comfortable looking for jobs online, exchanging emails, taking calls and submitting applications while they are at their current places of employment.

While the majority of respondents say they would job-hunt while at their place of work, 26% of respondents say they are uncomfortable looking for another job while they are still employed.

SEE ALSO: 50+ Job Skills You Should List on Your Resume

The researchers found a distinct breakdown by age when it comes to comfort in looking for a new job. Workers between the ages of 18 and 34 were most likely to conduct job search-related tasks at their current job. Overall, 48% of workers in that age range say they are comfortable looking for a job at work. Just more than one-quarter of workers between ages 35 and 44 say they are comfortable looking for a new job at their office. Of workers 55 and older, 21% say they would be comfortable looking for a new job while at the office. The research was based on the responses of 427 workers.

“The grass isn’t always greener on the other side, so professionals should first consider how they might improve their current situation before looking for a new job,” said Max Messmer, chairman of Accountemps and author of Human Resources Kit For Dummies (John Wiley & Sons Inc. 2012). “When it is time to move on, conducting the job hunt using company resources is not only unethical, it places the employee at a high risk of being caught in the act.”

SEE ALSO: 11 Resume Myths Busted: Realities Revealed

To help workers who may be looking for a new job while employed, Accountemps offers the following tips.

1. Look at internal openings first. If you’ve outgrown your current role but are happy with your work environment, see if there are relevant openings within your company before looking elsewhere. When it comes to filling vacancies, many employers prefer internal candidates.

2. Keep it to yourself. If you want to keep your job search a secret, don’t mention it to anyone at work. Even the most trustworthy co-worker could inadvertently spill the beans. It’s best to stay mum until you announce your resignation.

3. Play it safe online. Be careful when visiting job boards or using social media to conduct your search. A single status update could be enough to alert your employer. You can further minimize the risk of being caught by ensuring your privacy settings are tight and using services that mask your identity when posting your résumé online.

4. Be upfront with potential employers. Most hiring managers understand that you will need to make arrangements to communicate or meet outside of office hours. Schedule interviews before or after work or during your lunch break.

5. Focus on the details. If you work in a casual environment where jeans and sneakers are the norm, showing up in a suit following a job interview could reveal your intentions. Bring a change of clothes so nothing seems amiss.

6. Partner with a recruiter. A professional recruitment agency is often your best bet when it comes to conducting a discreet job search. A recruiter can confidentially distribute your résumé and identify relevant employment opportunities on your behalf.