China:Employment and

Relocation ChallengesIsrael Fruman, Sep 20148 Hamelacha St. Netanya 42505 Israel +972.9.865.8616 www.oriil.com

Relocation & Global HR Solutions

Hiring Challenges (what are job seekers look for)

Package: 10-20% increase to make a new move (average annual increase: 9%)

Employer Brand: work for a company with a quality brand

Challenge: more visibility among senior management as well as good autonomy

Growth Opportunity: “non Glass Ceiling” companies

Retention Challenges

Annual Undesired Turnover: 11%

High loyalty level to local manager  

Training/Development opportunities

Career/Growth opportunities

Labor LawsUnion right is statutory (not always imposed)

From 2008 Employment relationships are contractual

2012 Labor Contract Law limits contractors classification

Employees generally entitled to procedural safeguards, notice and severance pay

Collective dismissal require reporting to labor authorities and consultation with employees

Employment Cost Differential (Annual, K CNY)

Exe. Man. Prof. Para-P

Beijing 1,361 530 195 84Dalian -37% -35% -26% -26%Guangdong -15% -13% -11% -15%Nanjing -29% -27% -26% -24%Shanghai +5% +2% +1% -5%

First conclude:Overall assignment costWork permit eligibilityMedical InsuranceCompensation & Relocation packageExercised Relocation agreement

Than start the actual process

Relocation: Putting the Horse Behind the Wagon

First one / Last one / One too many“Why fight over a few couple K$”?First expatriate set the standard for

the next to comeYou know where it begins – never

where it is going to end

1st Expatriate ≠Last Expatriate

Annual Relocation Cost (Beijing & Shanghai)

M+3 M+1 SingleExecutives $651K $543K $391K

Managers $432K $345K $212K

Sales $346K $271K $201K

Engineers $251K $194K $127KProfessionals $234K $183K $118K