Saturday, January 7, 2012

China 2012 Hiring Trends

The internationalization of China’s economy means that both Chinese and foreign companies will be competing for top talent in 2012. The labor market is expected to be tighter than before the Global Financial Crisis.

The growing sophistication of the Chinese economy is reflected in its proactive export strategy, the easing of acquisition restrictions and increased Chinese overseas investment. For example, Chery, China’s leading private automaker, exported a record number of vehicles in 2011, while Nestlé’s recent acquisition of Hsu Fu Chi International Foods for USD $1.7 billion reflects a softening of government acquisition policy since Coca Cola failed to buy Huiyuan in 2009. Meanwhile China has received attention for recent foreign investments like U.S. oil shale projects.

As a result of the broadening of the economy, hiring managers will find that the stakes in the “War for Talent” rising this year.

Demand for Global-Minded Leadership: Managers with the demonstrated ability to lead and grow businesses in China and Asia are precious. Globally-minded General Managers, Human Resources, Finance and Sales and Marketing professionals at the Director level and above who understand how to develop and implement successful business strategies based on corporate objectives are in demand.

Increased competition from Chinese companies for talent – not necessarily at the executive level: Chinese companies are more aggressive about hiring graduating students and employers at entry and supervisor levels. These days, Chinese companies are offering packages and promotion opportunities to entry-level graduates that are as compelling as those offered by MNCs.

Sector Trends: The job markets in Healthcare, Life Sciences, Industrial, Automotive, FMCG and Entertainment continue to grow at a rapid pace. The Financial Services sector is not as robust and may undergo lay-offs. Some MNC insurance companies have withdrawn from China because of the onerous regulatory environment. Businesses dependent on China’s investment in construction and infrastructure may slow. The Chinese government instituted measures to lower housing prices and is expected to re-allocate spending from infrastructure to health and education this year.

Compensation Benchmarking: CFO Packages in Asia

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