Archives 2013

China pollution makes recruiter’s job more difficult

Air pollution in China is driving away foreign talent from some key cities, including the capital city of Beijing, and making it harder for multinational firms to persuade their employees to relocate there, hiring managers said.

“They are not familiar with the place and the country, so the heavy pollution is an important factor for them to consider,” said a senior executive at Antal International Germany in an e-mail interview. Antal International is a global recruitment firm working with multinational companies. The services offered by its German office includes recruiting foreign executives to work in China for large carmakers such as BMW, Audi and Volkswagen.

“Air pollution is becoming a real issue among expats working with Audi and BMW. A senior lawyer has asked to be transferred out of the area very recently,” said Richard Adam, a managing partner at Antal International Germany who regularly hires western talents to work in Asia.

The difficulty of finding people to fill in positions in Chinese cities, on a scale of 1 to 10, was rated as 6, by Adam.

And while there seems to be few concerns expressed when it come recruiting westerners to the Shanghai, China’s financial hub, 60 per cent of those negotiating the possibility of working in Beijing and other Chinese industrial cities mentioned air pollution or health issues as a one of their top concerns, according to Adam.

“Life balance and health is getting more important and people take environmental issues into consideration. Nobody is going to ruin his or her health when there are job alternatives under better conditions. When people can choose, they take what is good for them, and money cannot compensate for health,” he said.

Sending someone from a “better” place to a less attractive one with a lower quality of life does not necessarily mean the person will get monetary compensation as the cost of living might be cheaper, said Adam. Yet after what happened to Beijing recently, the situation “might change”, he added.

On Saturday, a Beijing air pollution index measuring particulate matter with a diameter of 2.5 micrometres (PM2.5) hit levels as high as 400 in some areas of the city. A level above 300 is considered hazardous, while the World Health Organisation recommends a daily level of no more than 25.

Foreigners who work in “obviously polluted areas” could expect to be paid 5 to 12 per cent more than those working in a comparable position in places with a better environment, Adam said.

While international firms may have to pay more to attract foreigners to locate in China, Chinese candidates, however, said pollution and environmental issues were not a key concern when relocating to Beijing from other inland cities.

The opportunities, salary level, and exciting working environment of a first-tier city usually outweigh the inconvenience of poor air quality for Chinese employees, according to Antal International China.

Seek increases share of Chinese job site Zhaopin

Job seeking website Seek has increased its share in Chinese employment site Zhaopin. The company’s equity interest will increase from 55.5% to between 72.3% and 79%.

The announcement:

SEEK Limited (“SEEK”) today announced it has entered into a share purchase agreement to increase its ownership stake in Zhaopin Limited (“Zhaopin”).

Zhaopin operates a leading online employment marketplace in China and this transaction is part of SEEK’s continued strategy to increase its exposure to leading international businesses. SEEK’s equity interest will increase from 55.5% to between 72.3% and c79% depending on the level of take up from certain shareholders.

Jason Lenga, Managing Director of SEEK International and Director of Zhaopin, said “Zhaopin is a leading player in many of China’s geographic regions and across several key online operating metrics. As China’s urbanisation and internet penetration increases, we expect it will be the world’s largest online employment marketplace.”

When comparing the 2012 financial year to 2011, Zhaopin’s financial performance has been strong, recording revenue growth of 28% and EBITDA growth of 70% (FY12 v FY11).

Zhaopin’s local management team has performed well in achieving these results and leading a highly successful business. SEEK fully support the local team’s ability to lead the way going forward.

Mr Lenga said, “Despite a recent slowdown in China’s economic conditions, Zhaopin’s team has demonstrated a deep understanding of local conditions and their needs. The business will continue to invest appropriately to drive Zhaopin’s growth and focus on leading the company to a potential IPO.”

“This transaction is an important step in expanding SEEK’s exposure in key international markets as well as a compelling growth opportunity for SEEK’s shareholders.”

SEEK’s equity interest in Zhaopin will depend on the take up levels from other shareholders based on SEEK’s offer to acquire additional shares. However, it is expected that SEEK will increase its current interests from 55.5% to 72.3% to c79%. There is a provision that SEEK may acquire further ownership interests in Zhaopin in FY14.

The acquisition will take place via a sell down of shares from Macquarie and other individual shareholders.

The Judge Group Partners With the Shanghai Government to Co-Launch IT Services Exchange Program

The Judge Group and the Shanghai Information Service Outsourcing Development Center, an affiliate branch of the Shanghai municipal government, have co-launched the U.S.-China IT Services Exchange Program 2013 to help U.S. and Chinese businesses exchange supply and demand information and promote partnership in both markets.

U.S. and Chinese companies seeking to conduct business in both countries and with demonstrated interest in overseas IT and Business Process Outsourcing will have the opportunity to build mutually beneficial relationships.

Judge and the iISO will host events for participating companies to explore potential partnerships. Events will be held in Shanghai in April, June and October and in select U.S. cities in November. Judge will select the participating U.S. companies and facilitate the U.S.-based events. The iISO will reimburse participating companies for their travel expenses and facilitate travel and accommodations in China.

“Judge has been conducting business in China since 2008, and we have been very successful in building a relationship with the Shanghai government,” said Martin E. Judge, Jr., CEO and founder of The Judge Group. “We are very proud to have been selected to be their exclusive partner for this program. It’s truly a privilege for us to have the opportunity to help other companies establish partnerships abroad.”

For more information about participating in the U.S.-China Services Exchange Program, contact Eric Qiu at (+1) 571-230-2911 (U.S.), (+86) 135-0178-2375 (China), or eqiu@judge.com.

About Shanghai and the Yangtze Delta Metropolitan Area:

Shanghai, a megacity of 20 million, is located at the tip of the Yangtze River Delta Metropolitan Area in eastern China. It is one of the most modern and business-friendly Chinese cities to U.S. investors and has been home to over 3,500 U.S.-invested businesses. Yangtze River Delta Metropolitan Area, with a total population of 150 million living in Shanghai and a cluster of tier-2 and tier-3 cities about an hour away, is one of the most prosperous regions in China.

About The Judge Group:

The Judge Group, established in 1970, is a global leader in professional services that provides technology consulting, staffing solutions, corporate training and human capital management. Our solutions are delivered through an annual workforce of 4,500 professionals and a network of locations across the United States, Canada and Asia. If you would like to learn more about The Judge Group, visit www.judge.com or call toll free (800) 650-0035.

The Judge Group was recently ranked the 17th Largest Information Technology Staffing Firm in the U.S. by Staffing Industry Analysts.

The Judge Group logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=14430

Man pays Chinese company one fifth of his salary to do his job for him

A US employee is said to have outsourced his job to China.

A security check on a company revealed that a member of staff had been paying a fifth of his six-figure salary to a firm in Shenyang to do his job for him, reports BBC News.

The software developer spent his work day surfing the web, YouTube and eBay.

Andrew Valentine of operator Verizon said that the scam came to light when the US company asked Verizon for an audit after a suspected security breach and asked the risk team to investigate some irregular activity on its VPN logs.

An active VPN connection was found from Shenyang to the employee’s computer and Verizon was called to look into what was thought to be malware used to share confidential information with China.

The employee’s computer contained hundreds of invoices from the Shenyang contractor, it has been reported.

Valentine said: “Authentication was no problem. He physically FedExed his RSA token to China so that the third-party contractor could log-in under his credentials during the workday.

“Evidence even suggested he had the same scam going across multiple companies in the area.

“It looked like he earned several hundred thousand dollars a year, and only had to pay the Chinese consulting firm about $50,000 annually.”

Chinese companies want more staff

China tops any other Asia-Pacific market in its number of companies that plan to hire more employees, a report says.

Nearly 56 percent of organizations interviewed for a report by the global human resources company Hudson, said they plan to increase the number of permanent staff in the first quarter of 2013.

The enthusiasm to hire comes amid the recovery in the growth of the Chinese economy and an increasing number of multinationals moving their regional headquarters to China, said Lily Bi, general manager of Hudson Shanghai.

The salaries offered to talented workers will also increase, Bi said.

“International giants and local companies are attaching more importance to research and development work. Therefore, talented professionals have plenty of opportunities, especially in the pharmaceutical and automotive industries,” said Bi, stressing that higher salaries offered to sought-after workers is another trend taking shape in the Chinese job market.

Multinational companies moving their headquarters to China, Shanghai especially, have also helped to create more jobs.

According to statistics provided by the Shanghai Municipal Commission of Commerce, as of September 2012, around 60 multinational companies had Asia-Pacific or Asian headquarters in Shanghai.

The pharmaceutical and biologics company AstraZeneca moved its Asia-Pacific headquarters from Singapore to Shanghai in June. McDonald’s and Ikea have also moved their Asia-Pacific headquarters to Shanghai.

Although its economic growth slowed in 2012, China is still the second-largest economy in the world. The central government forecast that the country’s GDP will grow by 7.5 percent in 2013 and its unemployment rate will remain stable at around 4 percent.

China is now the world’s fastest-growing automobile market and skilled professionals are needed to sustain expansion, particularly in smaller cities. Salary packages are becoming more streamlined and bonuses are down, but candidates are ambitious and looking for increments of up to 25 to 30 percent to switch roles, the report said.

Guo Yating, 32, with three years of experience as an automotive research and development engineer, moved to AVL, an Austrian-based automotive consulting firm, in December with a 50 percent salary increase and a 10-day extension of annual leave to 15 days.

“Frankly speaking, the chances were far scarcer in 2011 and 2012 when the economy, especially the manufacturing industry, was pretty lousy. It was quite difficult for fresh graduates to get a job. But on the contrary, R&D engineers with experience have been receiving more enquires from headhunters in the previous two years,” Guo said.

Bi from Hudson said salary increases will also be offered to people working in newly opened positions, even though they are in older sectors such as the advertising industry.

“Employees with expertise in digital and new media, e-commerce and social media may receive increments of up to 20 percent,” she said.

Li Daifei, 28, a project manager at a Shanghai-based advertisement agency, was offered her current job at the end of 2012, which saw her salary rise by 40 percent. Her experience with digital media helped her make the switch.

Labour dispatch services in China will provide less flexibility from 1 July 2013

From 1 July 2013, the use of labour dispatch services will likely be a less attractive means of maintaining a more flexible workforce. Companies taking dispatched employees will need to comply with an “equal pay for equal work” principle, and the range of positions for which they can engage dispatched workers will be limited. The registered capital requirement for labour dispatch service providers will also be increased four-fold. Forward planning for both labour dispatch services providers and companies that use dispatched employees is recommended.

Changes to China’s labour dispatch rules were enacted on 28 December 2012 by way of amendments to China’s Labour Contract Law. The amendments will be effective from 1 July 2013. For comment on the draft amendments that were circulated for public comment in mid-2012, please see our July 2012 e-bulletin.

Background

Labour dispatch practices involve a business choosing to outsource workers from third-party dispatch agencies rather than directly employing the workers. This can result in cost-savings and make it easier to terminate the relationship with the worker.

New provisions

The Labour Contract Law amendments introduce a number of changes, some of which are consistent with those in the draft amendment circulated in mid-2012. The first four changes listed below were not in the mid-2012 draft, while the remainder of the changes noted below are substantially the same as those in the mid-2012 draft:

• The registered capital of a labour dispatch company must be at least RMB2,000,000. This represents a four-fold increase from the current requirement of RMB500,000. Companies currently providing such services will need to increase their registered capital in order to provide further labour dispatch services.

• A labour dispatch company must have permanent business premises and facilities that are suitable for the conduct of their business. While it is unclear exactly what this will mean in practice, any existing dispatch service provider would be wise to carefully review the new requirements before renewing their leases.

• Employment by labour dispatch is only a supplemental form of employment for Chinese enterprises, with directemployment by labour contract being the basic form of employment. Identifying labour dispatch as supplementary is aimed at preventing the overuse of labour dispatch.

• The number of dispatched employees engaged by an employer may not exceed a certain percentage of its total number of employees. The exact percentage, however, is yet to be stipulated by the labour administrative authority under the State Council.

• To engage in labour dispatch, a labour dispatch company must obtain a permit from the relevant labour bureau. Labour dispatch permits had been explicitly required prior to 2008. However, when the PRC Labour Contract Law came into effect in 2008 it did not include a permit requirement. Under the new rules, a labour dispatch company established before 1 July 2013 will clearly be required to obtain a labour dispatch permit by 1 July 2014 in order to take up new labour dispatch business. Such labour dispatch companies will need to ensure that their registered capital and business premises comply with the new requirements.

• Workers can be dispatched only for “temporary, auxiliary or substitute positions”. Temporary positions cannot be for longer than six months; auxiliary positions are those that support the main business line; and substitute positions are for covering employees on vacations or study leave. The current rules, by contrast, are generally taken to permit long-term dispatch relationships in a wide variety of positions. This amendment emphasizes the supplemental nature of labour dispatch and is aimed at preventing labour dispatch from being a substitute for direct employment.

• The amendments require equal pay for equal work; that is, the same remuneration standard should apply to both dispatched employees and directly hired employees. Any existing labour contracts and labour dispatch agreements that are inconsistent with the “equal pay for equal work” requirement will need to be amended.

• Employers and dispatch agencies violating the law may be fined between RMB5,000 and RMB10,000 per dispatched worker if they fail to correct the violations within the time period specified by the relevant labour bureau.

Under the new rules, employers that have been relying on dispatched workers might be required to directly employ more workers. This would increase payrolls, and make future down-sizing more difficult and more expensive.

New Hyundai Chinese R&D center may be located in Yantai, Shandong

In order to keep up with its rivals in China, Hyundai also has plans to establish a new research and development center in the country. According to a report appearing in the International Finance News, the center may be located in the Economic and Technological Development Zone of Shandong’s eastern city of Yantai.

Earlier in May, Hyundai Motor Group Vice Chairman Xue Rongxing had announced that the manufacturer will construct a Chinese R&D center. Then, earlier this month, posts looking for talent to work at the ‘Hyundai Motor (China) R&D center’ begun appearing on several famous employment websites. According to the post, the center’s address is in Yantai, Shandong. When contacted by telephone, sources from the company confirmed that the posts were made on behalf by Hyundai.
Meanwhile, representatives from the Yantai Investment and Employment Agency announced that preliminary work on the Hyundai R&D center has begun in the city’s Economic and Technological Development Zone. The source added that Hyundai has yet to announce when the center will be officially established.

Hyundai’s Chinese offices have yet to comment on any of the above reports.

Hyundai currently possesses five global R&D centers, located in its native South Korea, Germany, the US, India and Japan, respectively. Due to the lack of such a center in China, the Beijing Hyundai joint venture has obtained new vehicles, such as the new ix35 and eight generation Sonata, from Europe and the US. Mr. Xue has stated his desire to see Beijing Hyundai begin exporting vehicles following establishment of the Chinese R&D center.

DFA warns of tougher China law on illegal workers

China’s new immigration law, which will take effect on July 1, 2013, will impose stiffer penalties on those found to have violated it, the Philippine Consulate General in Guangzhou warned on Thursday.

In a statement sent by the Department of Foreign Affairs, the Consulate said the new immigration law provides particular attention to the so-called “three illegals” – illegal entry, residence and employment. Each violation is penalized with different and more severe penalty.

“Foreigners found illegally working in China may be subjected to a fine raning from RMB (renmibi) 5,000 to RMB20,000. Possible detention of five to 15 days may also be imposed for serious violations. Income acquired from illegal employment will also be confiscated. Illegal residents will be fined from RMB500 per day up to a maximum amount of RMB10,000, or imprisonment of five to 15 days,” the statement said.

Under the new law, employers who hire foreigners without the proper permits and documentations will also be penalized.

The new law also provides fine and penalty of imprisonment to persons or organizations aiding foreigners in committing any activities defined under the so-called “three illegals.”

The Consulate urged Filipino nationals affected by the changes in the immigration law to contact the Consulate for advice. The public is also warned about agents misrepresenting themselves as processors of exit visas for overstaying foreigners.

Yingli bucks the trend by recruiting 2000 staff

Yingli Group in Baoding of Hebei Province announced in the end of November that it would recruit 2000 workshop operators. A photovoltaic enterprise with 26,000 staff recruits 2000, which is not a message worthy of reporting. However, on the background that there are a lot of negative messages in the whole photovoltaic industry like loss, shutdown and downsizing, recruitment at this moment indicates that the photovoltaic industry in the “severe winter” is changing positively.

After learning such a message, the reporter decides to go to Hebei. When entering the workshop of Yingli Group, the reporter felt it was in 2010 when the workshop was in full capacity. “2000 is only a conservative number and the number of recruits may increase as required.” Zhao Zhiheng, vice chairman of Yingli Group discloses that the photovoltaic market demand has begun to change from the fourth quarter and Yingli is making preparation for the “coming of spring”.

According to the financial statement for the third quarter, all photovoltaic enterprises still makes a poor achievement and the photovoltaic industry is still in a cold winter, so where does the spring come? Yingli views that the demand is changing.

Quick increase of trading volume in the rising markets represented by China is the brightest spot in the market in the second half of this year. It is estimated that the delivery volume of Yingli will reach 2.2 gigawatts this year, which will top other photovoltaic enterprises in the world this year. Among the sales volume, the Chinese market will account for 22.63 percent and other rising markets will also rise to 4.03 percent.

Wang Yiyu, chief strategy officer of Yingli predicts that China is expected to surpass Germany and become the largest photovoltaic market in the world next year, which is mainly due to the series of encouragement policies issued by the state in the second half of this year. 21- gigawatt installed capacity, roadmap of distributed power generation and quickly-issued measures for the implementation not only offer a clear development prospect for the domestic market, but also stimulate the enterprises?? passion for the market and strengthen their confidence in development.

There are also new opportunities in the traditional European and US market. With deep industrial adjustment, the photovoltaic power generation cost reduces quickly and the generation efficiency increases constantly. European Photovoltaic Industry Association made estimation in the end of 2011 that the total installation cost of photovoltaic system would be $2 per watt in 2015. However, to the end of November this year, the cost had been less than $2. Due to such a change, the cost of photovoltaic power paid by some users in the market such as Spain begins to be equivalent to the one of traditional power generation with no need for government subsidy, which is commonly called grid parity in the user end. Wang Yiyu reveals that presently some investors have begun to plan for the projects next year with the aim of selling electricity to users or electric power company through direct supply. It will be the coming of times with huge demand for the photovoltaic industry behind such kind of change.

Yingli predicts that the global market demand will be about 40 gigawatts next year. Among them, the European market will increase a little, which is mainly due to the rising markets in the Europe and those projects with no need for government subsidy; the total amount in the US will continue increasing; the Chinese market will be about 7 to 10 gigawatts.

“The spring is coming slowly but not all photovoltaic enterprises will enjoy it.” Zhang Tianze, general manager of Dalian Liancheng CNC Mechanic Co., Ltd., a photovoltaic equipment supplier, views that for enterprises in the whole industrial chain of photovoltaic production, only those enterprises whose brand, quality, technology, cost, etc. can satisfy the market requirement will not lag behind after such a round of adjustment and integration. The incoming spring for the photovoltaic industry is one with threshold.

Firm plugging into the Chinese market

A CONSTRUCTION ind- ustry project management specialist has got a firm foothold in the booming Chinese construction market.

Melton-based Sypro has secured a landmark contract to help build a network of substations in Hong Kong.

It has beaten international competition to supply its online project management system to China Light And Power, which is building seven electrical substations to power the massive data network needed by businesses in the region.

Now it has established an important foothold in the region, Sypro is hopeful of winning more orders from China Light And Power and the Chinese Government.

Managing director Simon Hunt said: “The deal with China Light And Power is very significant.

“We now have a foothold in the booming Chinese construction market, which bodes well for the future.

“Businesses in Hong Kong put a lot of trust in recommendation. If project A is using our software, project B is more likely to use it as are projects C, D, E and F.

“It could also help us win orders from other Government Departments.”

Sypro, which was established in 2007 and includes Balfour Beatty, Mansell and Sir Robert McAlpine among its clients, is a supplier of project management software for New Engineering Contracts (NEC) – a family of contracts used in the management of construction projects in the UK.

The Sypro system has been used to project manage the A164 upgrade and the new Beverley Community Hospital, both in East Yorkshire, and the £840m Southern General Hospital in Glasgow, which is the largest healthcare building in Europe.

Mr Hunt said the business is currently in the process of having its product evaluated on one of the largest Government projects in the region – an £80m flood prevention scheme that will build an enormous storage tank under Hong Kong’s Happy Valley Racecourse.

He said: “This was a competitive process where we have gone up against international businesses and won.

“The impact for the business is very positive. We are going to need to increase our headcount to make the most of this opportunity moving forward.”

Mr Hunt said the China Light And Power contract was a “landmark” deal because it is the first time an NEC contract management system has been used in Hong Kong.

China Light And Power is one of the largest power companies in the Asia-Pacific region. The initial contract covers the first substation, which is costing £13m to build.

Sypro’s board includes technical director and NEC consultant Dr Stuart Kings and director and investor Gerard Toplass.

The company, which is forecasting turnover of £500,000 for the year to December, is also currently working on a project to develop a generic form of Sypro which can be used on any type of project.

Mr Hunt said: “We are looking to recruit extra staff to help with administration and sales over the next few months.”