Multinationals in China face sharp rise in salary demands
SHANGHAI — Multinationals in China face more serious challenges than anywhere else in Asia, paying more to attract talent but facing the region’s worst turnover levels, a survey said Thursday.
Across all sectors of China’s roaring economy, 32 percent of employers said job seekers expect salary increases of at least 20 percent over their previous position, a report by human resources firm Hudson said.
Yet despite higher salaries, Chinese employers have a harder time than anyone else in Asia holding onto people, with 13 percent of firms reporting turnover rates of more than 20 percent of staffing levels.
“Employers are having to give both the highest salary increases and the largest bonuses in the markets surveyed in Asia,” said Angie Eagan, general manager for Hudson.
Hudson surveyed the expectations of 737 executives in China for the first quarter of the year.
In regards to higher pay it concluded: “This strategy does not seem to be working, as they are also facing the highest staff turnover rates.”
Media, public relations and advertising were especially vulnerable to losing employees, with 56 percent reporting a turnover rate of more than 10 percent, and 27 percent of companies averaging a turnover rate of more than 20 percent.
Limited career progression was also a major issue, mentioned by 22 percent of respondents, also more than any other market in Asia, Hudson said.
“With the current buoyant market, employees who feel that they are not progressing in their career fast enough know that they can obtain other job offers fairly easily,” the report said.
Employers also expect to pay much higher year-end bonuses this year. Across all industries 66 percent of respondents say they plan to pay bonuses of more than 10 percent, the highest figure for any market surveyed in Asia.
Moreover, nearly 24 percent propose paying bonuses of over 20 percent.
Adding to the bottom lines were strong expectations for expanded staff.