Chinese salaries set to increase in 2013
It appears that salaries in China will be getting a boost in 2013 due to a steady growth in gross domestic product, according to London-based recruitment consultancy Robert Walters Plc.
In general, workers who chose to switch jobs will see their salaries increase by 15 to 25%, according to a survey conducted by the company. Those who are riding it out in jobs they already have will only see salary increases of approximately 8%.
In a report published in January by Global Times, business owners expressed concern about raising salaries. According to Feng Lijuan, chief consultant at 51job.com, a NASDAQ-listed human resources service provider, “Business owners are more concerned about a salary hike in 2013, as most of them have seen a worsening business performance, and feel uncertainty about whether the Chinese economy will get better this year.” In the fourth quarter of 2012, approximately 65% of small to medium size businesses didn’t increase salaries of their employees. This was an attempt to survive slow economic times by limiting labor costs.
The banking and financial services industries have felt the greatest impact from the global economic recession. This sector faced the challenge of trying to increase profitability and hire sales professionals, while simultaneously minimizing expenditures.
However, as China’s economy stabilizes, multinational banks are becoming increasingly interested in exploring areas of China beyond the traditional financial centers of Shanghai and Beijing. Such corporations are looking for employees with knowledge of the broader Chinese market.
According to Arthur Wang, managing director of Robert Walters China, “Candidates who could develop strong relationships with local clientele and possessed both overseas and local experience were particularly sought after and generally received average salary increases of 10 to 20 percent when moving jobs. Meanwhile, as Chinese financial institutions continue to increase their presence within the local market, we expect to see continued demand for local candidates with Mandarin skills.”