China spending big for skilled labor, recruiters say
HONG KONG (MarketWatch) ? Headhunters recruiting in China say they?ve rarely seen busier times.
Domestic and multinational companies seeking to bolster staff as part of bold expansion plans in the Chinese market have sparked frenzied bidding to attract qualified personnel across a broad ranges of industries, recruitment experts say.
Candidates with the right level of education and skills are typically seeing inducement offers that include salary increases of 40% to 50%, in addition to enhanced responsibility.
?I think China is the hardest place right now to secure talent and to retain talent,? said Christine Greybe, president of recruitment firm DHR International in Hong Kong.
She estimates that about 30% of candidates who plan on leaving their companies receive counteroffers which match or even exceed the rival offer, as companies grow wary of the loss of personnel through poaching.
?A lot of attention is going towards finding ways to keep talent, which is very unusual to anything we saw before,? Greybe said.
The hiring drive reflects ambitious plans among multinationals to secure opportunities in China. In some cases, companies are seeking to double or even triple managerial staff within a few years, cramming growth that would normally happen in a 10-year window, experts say.
?There?s been a redoubling of growth imperative of by multinationals trying to head into Asia, because companies are finding it hard to grow in the U.S. and Europe,? said Mike Game, the Hong Kong-based Asia chief executive officer for multinational recruitment company Hudson.
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Mainland Chinese companies are also offering more competitive wages for their senior executives, shrinking what?s been traditionally a gap with compensation packages offered by multinationals.
In some cases, Chinese companies are now paying salaries and packages that meet or beat those offered by Western companies, says Greybe, adding executives in technology companies ? such as Chinese Internet giant Tencent Holdings Ltd. /quotes/comstock/22h!e:700 (HK:700 218.20, -6.00, -2.68%) /quotes/comstock/11i!tctzf (TCTZF 28.94, +0.09, +0.31%) ? look more to stock options and other forms of compensation outside of salaries.
The place to be
?China is the place people want to be. They are not interested in a job in the U.S. in the way they may have been two or three years ago,? Greybe said, referring to China-born professionals.
Chinese companies accounted for 54 of those in the Fortune 500 list in 2010, up from 35 in 2008.
Greybe said that some clients take the view that careers spent at home could pay bigger dividends, given China?s rising status in the global economy.
In fact, leading Chinese firms are now more sought after than multinationals among mainland engineering graduates born between 1980 and 1990, according data compiled by recruitment company AonHewitt.
The jobs squeeze is also spilling over to service-center hubs outside mainland China, including Hong Kong and Singapore.
Lawyers with the right educational profile and job experience can expect to receive a half dozen offers within a few weeks, said Denvy Lo, a senior consultant with legal recruitment specialists Laurence Simons.
It?s fairly standard to expect pay rises of 30% to 40% when jumping firms, she said, adding that the frenzied recruiting conditions are reminiscent of the boom times of 2007.
?They will look around to see who can offer them the most and the best package,? Lo said.
Among those most in demand are China-born candidates who completed law degrees in the U.S. and have a few years? experience with multinational companies in Asia, Lo said.