2016 Morgan Philips Talent Report

T h eD i g i t a l

H e a d h u n t i n gC o m p a n y

NEW NORMALHUMAN+

新常態新常态

人＋NEW NORMAL

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NEW NORMALHUMAN+HUMAN+

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HUMAN+HUMAN+

HUMAN+

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Human Plus Recruiting in Greater China

Morgan PhilipsTalent Report2016

Talent Report2016 1

EXECUTIVE SUMMARY

Part1 HIRING EXECUTIVE TALENT IN 2016

Part2 CHANGING JOB IN 2016: EMPLOYEES’ INTENTIONS

Part3 UNDERSTANDING EMPLOYEES’ MOTIVATIONS

METHODOLOGY

ABOUT MORGAN PHILIPS EXECUTIVE SEARCH

The New Normal: Hiring Challenges for Employers in 2016

Competitiveness and Productivity

Shortage of Skilled Talent

Selection rather than Sourcing

Company Attractiveness and Cultural Fit

Human Plus Recruiting: Digital Sourcing + Human

Job Changes and Salary Increases in 2015

Job Changes and Salary Expectations for 2016

Job Finding: Digital Sourcing + Human

Demographics of Survey Respondents

Change Drivers

Cultural Differences

Gender Differences

Generational Differences

Morgan PhilipsTalent Report2016

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EXECUTIVE SUMMARY

Introduction

Employers’ Challenges

Morgan Philips Executive Search (formerly MRIC) surveyed some 2,000 junior to senior Greater China executives at the end of December 2015 and early January 2016. The survey explored employers’ key hiring challenges in 2016 and employees’ intentions and motivations. This proprietary industry-leading barometer for the talent sector is now in its sixth year. This year included probing perceptions into how digital platforms are currently supporting the challenges of hiring or securing new positions.

After years of increasing headcount to match fast paced growth, employers’ primary focus in 2016 is to find a new breed of talent which is adaptable to change, competitive and productive – not necessarily through pay hikes alone. This "new normal", unsurprisingly, poses fresh challenges for employers and their businesses. It likely explains why, in 2015, an increasing percentage of survey respondents changed jobs without any salary increase (27% in Mainland China, 28% in Hong Kong and 24% in Taiwan).

However, competitive and productive does not always mean cheaper. It means being more creative and adaptable to new markets and business models. Thus business and HR leaders face the challenge of scarcity of skilled talent. As such, proven professionals will continue to attract meaningful salary increases.

It also means that employers need to remain focused on their company’s “attractiveness”- meaning the overall appeal of a company in the minds of potential or targeted talent. It places stronger emphasis on the selection and cultural fit of candidates.

These challenges are normal in mature economies with a talent market that has settled for limited salary increases, longer promotion lead time and fewer job opportunities. They are a ‘new normal’ for business leaders and HR practitioners in Greater China, where the pace of economic development has slowed, yet markets are not saturated and continue to present huge development potential.

Managing that transition is complex.

Talent Report2016 3

Employees’ Intentions and Motivations Human Plus Recruiting

In 2015, employees appeared more stable than in previous years and, even those who did change jobs, averaged lower salary increases. However, that does not seem to have caused any anxiety about a potential hard landing in 2016. Their intentions to change job are only slightly below the moves declared in 2015 and salary increase expectations remain higher.

Across the board, priorities have not changed much since 2011. For the majority, motivation to change job continues to be driven by money, especially in Taiwan and Hong Kong, as has always been the case.

In the absence of an improved economy, there will be some alignment between salary expectations and opportunities for actual salary increase. Also, more people will likely stay put at their company.

Besides maximising their f inancial interests, e m p l o y e e s g r a v i t a t e t o w a r d s t h o s e n o n -monetary advantages that matter to them - career progression, learning opportunities, work-life balance, company culture and so on.

Our research prov ides use fu l ins ights on employees’ motivations. There is no single solution for enhancing company attractiveness, since it primarily derives from its own DNA. Nevertheless it is interesting to see the nuances in what drives the different segments of the talent market.

Over 75% of survey respondents believe digital channels improve their ability to explore a new career opportunity.

Yet , in 2015, the overwhelming major ity of executives, who declared a job change, had secured their new position offline by direct approach from a recruitment firm or a talent acquisition professional at an employer organisation or through their personal networks.

Employers see digital as a gateway to a broad source of talent that allows cheaper and faster recruiting. They also think that digital is useful to help them build their company attractiveness, especially but not exclusively, with younger generations.

However, employers do not regard digital as an effective solution in selecting skilled talent or the right talent that fits their company culture.

Undoubtedly, in 2016, digital lowers the cost and increases the speed of finding talent. Yet, on its own, it does not disrupt the means by which employers and employees secure the right candidate or ideal position. As such, there needs to be a shift towards the careful selection and use of the now abundant sources created through digital channels.

The recruitment process may be initiated through digital platforms but it is brought to fruition through human interaction – something we are terming ‘Human Plus Recruiting’. Attracting and hiring talent will be a ‘Human Plus’ challenge in 2016 in Greater China. This combines hi-tech sourcing with ‘hi-touch’ human interaction from valued professionals and advisors.

The "new normal" for employers is acquiring talent that is competitive, productive and adaptable to business change and fits the company culture.

The "New Normal"

HIRING EXECUTIVE TALENT IN 2016

Part 1HIRING EXECUTIVE TALENT IN 2016

Top hiring challenges

*percentage of respondents describing themselves as employers/decision makers and who classified a challenge among their top 10

Mainland China Hong Kong Taiwan

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Finding competitive/productive talent Finding competitive/productive talentFinding competitive/productive talent

Finding talent with culture fit

Selecting the best candidates

Sourcing talent adapting to change

Shortage of skilled talent








Attracting younger generations

62.1 %

44.3 %

38.7 %

33.7 %

32.4 %

57.1 %

47.7 %

44.4 %

38.1 %

30.8 %

64.5 %

54.7 %

45.3 %

32.4 %

31.8 %

Good employer brand

Good employer brand Sourcing enough candidates Sourcing enough candidates


Sourcing enough candidates

Meeting hiring targets in budget


Improving hiring speed


Culturally diversified management team

Good employer brand

27.4 %

26.3 %

26.3 %

24.6 %

29.7 %

26.0 %

23.7 %

23.5 %

29.7 %

27.7 %

25.3 %

22.0 %

Improving hiring speed19.0 %

Meeting hiring targets in budget22.6 %

Culturally diversified management team

20.7 %

Talent Report2016 5

“This market requires smart people.”

“We look for candidates who are passionate and try to challenge the status quo.”

“Young people in Taiwan are not competitive.”

“As the overall market is impacted, we need to focus on building a good employee brand for the

long term.”

“There is a gap on talents ability with what we require – People have been changing jobs too fast and did not build proven track record.”

“The gap is too big between the resume and the salary expectation.”

Competitiveness and Productivity Shortage of Skilled Talent

Based on survey respondents, employers do not automatically associate competitiveness and productivity with paying lower salaries in absolute terms. However, as their own businesses tackle the challenge of stalled growth, they have become more selective and are only willing to pay more for specific talent with a proven track record.

Slower growth in absolute terms also means less middle management jobs due to less expansion. Regaining productivity in a slowdown also means addressing non-contributive management layers and the related compensation costs.

On the other hand, those companies, which had previously experienced huge growth - fueled by Greater China’s low cost export resources and rapid development - e.g. luxury companies in Hong Kong, electronics companies in Taiwan, international consumer companies in Mainland China, need to rethink and adapt their product and market strategies and so require talent that is adaptable and competitive in a new market environment.

The challenge is that many candidates do not stay long enough in their previous companies and so it is difficult to evaluate their track record and real potential.

The economic environment gives some relief to employers with ‘Meeting hiring targets to meet 2016 budget’ ranking 8 out of 19 in importance in Mainland China, 10 in Hong Kong and 13 in Taiwan respectively. But the shortage of skilled talent still ranks 4 or 5 on employers’ hiring challenge list in Hong Kong and in Mainland China.

In recent years, vocational skilled education could not cope with the volume demanded by many Greater China sectors. In addition, the transformation of Mainland China, Hong Kong and Taiwan economies towards the higher end of the global value chain - higher added value product content, automation in manufacturing, growing share of services industries, digitalisation and e-commerce - pose talent shortages as every employer struggles to find the required competencies.

Mainland China companies also emerge as credible competitors for top skilled talent in the region and globally. Together with Chinese government support, they even go out to attract foreign talent to meet their R&D and hi-tech needs.

Selection rather than Sourcing Company Attractiveness and Cultural Fit

It is interesting to note that sourcing enough candidates remains a relat ively important concern, but less so, than selecting the best and right ones. Historically, staff turnover has been extremely high in Greater China fueled by many job opportunities and a less disciplined approach to qualified recruitment; inexperienced candidates willing to try out on the job and hiring managers/HR departments willing to recruit them under pressure of meeting hiring numbers.

In 2015, among those who declared a job change, 16% of men and 22.5% of women changed jobs after less than one year. Reasons given were higher salary and clearer career path for both groups, as well as better work-life balance for women, and company direction for men. Taken together with complex labor laws and high severance costs in Mainland China, this represents significant wastage in human resource management.

As businesses now adapt to slower growth, employers are being forced to look for more sustainability in their talent pool.

Company attractiveness remains a top eight concern of employers, irrespective of generation in Mainland China and Hong Kong, more so for younger generations in Taiwan. This particular challenge was a hot issue during the boom years with its hyperactive job market when in reality recruitment was driven by speed of hiring and money.

In a more stable environment , increasing company attractiveness may represent a genuine opportunity for employers to meet their other top challenge of a better cultural fit. Hence, employers should pay increased attention to articulating their company’s culture and direction more clearly when seeking to attract good talent in 2016.

As highlighted in Part 3, changing job for a better company culture is equally an important motivator for potential candidates. However, younger professionals and women seem to be more driven by specific culture issues. That suggests an attractive company culture must be both holistic and open to consider the specific needs of each part of its workforce.


Talent Report2016 7

*percentage of respondents describing themselves as employers/decision makers who evaluated digital as very useful or somehow useful in resolving their hiring challenge

In all markets, respondents see sourcing as a top benefit of digital. Digital helps to increase the reach of candidates ("sourcing enough candidates"). It is, probably for that reason, also seen as providing a solution to one of the employers’ top challenges - to find competitive and productive talent.

Digital, and in particular social media, opens up a world of possible prospective candidates to employers and recruiters. An increased and broader reach gives alternatives to a limited network of local referrals and databases.

Digital and hiring challenges in 2016

Human Plus Recruiting: Digital Sourcing + Human


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Sourcing enough candidates



Finding competitive/productive talent

49.6%

44.4 %

44.2 %

41.5 %

41.5 %

48.6 %

44.4 %

44.1 %

42.1 %

41.3 %

54.9 %

53.5 %

49.2 %

46.5 %

46.1 %

39.8 %

39.8 %

37.8 %

36.4 %

38.5 %

38.5 %

36.8 %

34.3 %

43.4 %

43.1 %

40.7 %

40.4 %

39.7 %33.4 %34.0 %

Sourcing enough candidates Sourcing enough candidates






Finding competitive/productive talent

Finding competitive/productive talentRecruiting cost

Recruiting cost

Better third-party recruitment service

Good employer brand

Lacking time to recruit


Meeting hiring targets in budget

Good employer brand


Lacking time to recruit

Finding talent fit company culture

Selecting best candidates

Recruiting cost

Better third-party recruitment service

Good employer brand

Strengthen talent acquisition team


Sourcing is the top benefit of digital in recruiting

Applying jobs via Mobile App

below 3536-4545+

64.3%

48.9%

33.9%

Already doneConsider

48.9%

36.7%

18.8%

13.0%

21.8%

below 3536-4545+

56.0%56.1%

32.0%34.7%33.8%

21.4%

29.2%

below 3536-4545+

49.4%

44.0%47.1%

33.8%

43.1%

25.9%

11.2%13.5%

16.2%

Mainland China Hong Kong

All All All

Taiwan

Sourcing Skilled Talent

Company Attractiveness

Although digital helps with cheaper and faster sourcing, in Greater China, employers view digital as not particularly useful in solving the challenge of a shortage of skilled talent. The main reason is due to the ‘passive’ nature of skilled talent (as defined by the HR profession). Therefore, while it is relatively easy to identify those suitably qualified via social media networks, it does not necessarily help to attract that desired talent pool to another employer.

Employers see their company attractiveness as one of their top challenges. In Mainland China and Hong Kong this relates to all employees, while in Taiwan it is mainly a challenge for the younger generation probably due to the unique overseas

relocation appetite of young Taiwanese that has created supply issues at home. Employers believe that digital can help solve this challenge, especially with young generations. Our results show the following: 68% of survey respondents aged below 35 years see digital as generally improving their ability to secure a new role, with 63% aged 36-45 years and 57% aged above 45 years.

So, whi le the younger generat ion is more accustomed to digital also as evidenced, for example, by the much larger number of those aged below 35 years who applied for a job through a mobile device (34% versus 18%/16% for the older groups), digital now permeates the entire society. Employers should, therefore, consider it as an employer brand-building tool for all generations.


*percentage of respondents who would consider applying jobs via mobile App and who have already done it.

Talent Report2016 9

Selection and Cultural Fit

Employers are not confident that digital alone can help them select the right people. Qualifying technical skills is the simpler part in recruiting for expert recruiters. Successful hiring depends on another key factor called ‘chemistry’ i.e. will we approach situations and problems, when they arise, with a similar point of view driven not only by knowledge and experience, but also by behavioural principles and values (such as inclination for risk, result orientation, compliance mindset and so on).

Although the future may bring technological advancements in data analytics and artificial

intelligence, offline and online assessment tools, have only been partially predictive of fit with a role and a company, and, as such, they remain a helpful tool in decision-making rather than an independent decision-making tool.

As such, in addition to being low cost, it is likely why recruiters continue to prefer networks and referrals, as the trusted source of finding talent. Those who refer usually know more intimately who is hiring and who could fit. Ultimately, it is the art of identifying motivational and cultural fit that is the best way to select and retain long-term talent.

In 2015, among those who changed job, 5% (Hong Kong) to 6.45% (Taiwan) declared relocating to a different country. In Mainland China (19%) and in Taiwan (5%) declared a move to a different part of the country. This is a meaningful number, especially in Mainland China. Without having any data prior to the digital age, we can assume that digital sourcing facilitated such national and international moves. There is still a lot of untapped potential in international and national talent mobility that digital could help facilitate since the vast majority of respondents would consider relocating for the right opportunity.

The untapped benefit of digital in international and national relocation?

Declared relocation in 2015 Consider to relocate in 2016

71.2%25.1%

Mainland China

57.0%4.9%

Hong Kong

82.5%11.8%

Taiwan

relocation to another province or market

relocation to another market relocation to another region or market

11-20%

21-30%

2013 2014 2015 2013 2014 2015 2013 2014 2015

No change

1-10%

31%+

20.7 20.08.5

15.0 24.3

27.7

13.3 14.9

12.8

31.7 20.3

18.327.9

15.126.9

10.711.0

11.9

23.4

20.6

23.229.0

15.110.814.6

21.3

13.3 20.3 19.5

22.9

16.318.518.3

29.8

26.7 20.3

25.5

22.3

18.630.822.0

22.1

20.026.8

17.5


Salary increases declared on changing job

Job changes against intentions in 2015

Changed Intentions

21.0%17.0% 26.0%21.0% 20.0%19.0%


The 2015 job changes declared were slightly below the intentions stated in our previous year’s survey. Yet, in Hong Kong, 21% of the respondents still changed jobs. In Mainland China, 17% of the

S igni f icant ly , there were increases in the proportion of those changing jobs without any pay rise – 6 percentage points increase in Mainland China, 8 percentage points more in Hong Kong

respondents actually moved, a decrease from the intended 21% in 2014. Taiwan actually closely matched actual moves (19%) compared to their stated intentions (20%).

and 9 percentage points higher in Taiwan. Notably in Mainland China, there was also a significant decrease in the higher salary brackets of hikes of 31% or more.

CHANGING JOB IN 2016: EMPLOYEES’ INTENTIONS

Mild deceleration in job changes and salary increases in 2015

Part 2CHANGING JOB IN 2016: EMPLOYEES’ INTENTIONS

Talent Report2016 11


MaybeNoYes

58.8%

20.5%

20.7%

60.6%

21.1%

18.3%

67.0%

17.1%

15.9%


11-20%21-30% No change1-10%31%+

6.8%9.0%

19.5%

30.2%34.5%

11-20%21-30% No change1-10%31%+

3.1%

17.7%

34.9%30.9%

13.4%

11-20%21-30% No change1-10%31%+

4.2%

10.0%

33.1%30.7%

21.9%

0

5

10

15

20

25

30

35

Job change intentions in 2016

Salary increase expectations when changing job in 2016

Salary Expectations remain high for 2016

Move intentions continue to decelerate in 2016. Unsurprising, only a small minority would change jobs voluntarily for no salary increase. Economic realities will determine lay-offs and restructuring and the ability of such employees to bounce back at a higher level.

On voluntary moves, while new employers will be selective and cautious, it is to be expected ‘small salary increases’ may not be enough to lure top talent out of their current employer and therefore

more talent may stay put. Even so, it would still be advisable for employers to identify and invest in their proven top performers.

“Economic slowdown will facilitate retention but will make talent attraction more difficult.”


59.4%

69.0%

70.9%

45.0%

50.7%

69.3%

73.0%

78.4%

58.8%

52.5%Yes

70.7%Yes

66.5%Yes


73.4%

79.6%

79.6%

68.7%

77.0%

86.7%

83.8%

84.3%

80.0%

Usefulto

Explore

Usefulto

Secure

75.8%Yes

82.5%Yes

77.7%Yes

45+36-45below 35

Professional talent view of digital to improve job exploration and securing

Job Finding: Digital + HumanDigital is widely perceived by over 75% of respondents as a very useful tool to explore a career change.

The opinion is slightly more balanced on the ability of digital to help secure a role with just over 50% of respondents in Hong Kong replying positively.

I t i s i n t e r e s t i n g t h a t a l l a g e g r o u p s a r e

overwhelmingly positive on better exploring a career change through digital. The lowest percentage being 68% for those aged above 45 years in Hong Kong.

On securing a role with the help of digital, Mainland China and Taiwan respondents are the most confident overall with, in Mainland China, 71% for


those aged below 35 years, 69% for those aged 36-45 years and still 59% for those aged above 45 giving positive responses. In Hong Kong, there is a big difference between those aged below 35 years (69%) and those aged 36-45 years (51%) and those aged above 45 years (45%). In Taiwan, there is a lower confidence rate among the younger professionals (58%) versus over 72% for the other groups that we cannot explain well.

Overall, employers’ views that digital can help

increase their attractiveness is validated by candidates who see this tool as a way to explore career opportunities.

This means not only are candidates using digital to find out about general corporate information on a company and its openings, but also on its plans, culture, and style as well as checking leadership and employees backgrounds, and potentially connecting for referrals or information.

Job finding channels in 2015

Digital can help prospective candidates to explore career opportunities, but human intervention is required to find the right job.

A key f inding among our respondents who changed jobs in 2015, (235 respondents to this question), the top channels to land that job relied on ‘human intervention’, from a recruitment company, or a talent acquisition specialist of an employer company, or from a personal network of friends. These three channels represent over 80% of job sources for employees.

Job boards helped 12% of employees to change

jobs in Mainland China and Hong Kong but they seem less effective in Taiwan (5% only). Social media, as direct application engine, seem ineffective helping less than 2%.

Social media per se is not the ‘new competitor’ of recruitment firms but another sourcing tool similar to job boards. However, it is the evolution of easy internet/digital tools that has meant in-house HR professionals (mentioned by 18% to 24% of respondents) can now directly source talent on social platforms.

Job boards

12.7 %

Recruitment firm38.0 %

Introduced by a friend27.8 %

Recruitment firm41.1 %

Job boards12.2 %

Introduced by a friend24.4 % Recruitment firm

32.0 %

Job boards5.3 %

Introduced by a friend33.3 %


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Other1.9 %

Other2.2 %

Other2.7 %

Corporate website

1.1 %

Newspaper/print

1.1 %Newspaper/print

1.3 %

Social network/ Social media job

0.6 % 1.3 %Social network/ Social media job

Talent acquisition/HR19.0 %




Job boards10.2 %

Recruitment companies56.1 %

Social networks / Social media4.4 %

Company career sites4.3 %

Friends, word of mouth25.0 %

Job boards13.4 %





Job boards9.7 %






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Perception of most effective channels to secure a job in 2016

Direct referrals and introductions by friends represent a major source of opportunity in people’s perceptions. Hong Kong respondents rely the most on their network although this method has the lowest success rate of the markets in

2015. Direct approach by recruitment specialists (which could, in this question, also include talent acquisition specialists and RPOs) is seen as the most effective channel to secure a job in Mainland China and in Taiwan.


Young and senior professionals alike rely more on networks whereas the middle age group seems to rely more on recruitment firms.

Young professionals rate job boards and corporate career sites higher than their seniors; all age groups rate social media similarly.

Age differences


Demographics of Survey Respondents Suggest Growing Female Representation

Our database of talent from which we drew the survey respondents is a good reflection of the executive workforce due to the consistent types of role hiring we have performed over the past 18 years. Our demographic analysis of respondents showed the following.

The younger professional workforce has a higher female proportion but still in the minority.

Male respondents are 79% (Mainland China), 72% (Taiwan) and 62% (Hong Kong).

In Mainland China, women represent 39% of below 35-year old respondents and represent only 10% of above 45-year olds.

In Hong Kong, women represent 45% of below 35’s survey respondents and in Taiwan 35%.

These percentages are higher, especially in Mainland China, than the overall gender mix of survey respondents in total.

In this section, an employer will find valuable information on the similarities and nuances in motivations of the different talent groups in Greater China when changing jobs. It also shows how they define a good employer. These findings may prove useful when working on company attractiveness - not only for

Under representation of women in senior management but over representation in middle management.

22% of female Greater China respondents versus 41.5% all respondents declare being in a senior management role.

39% of women who completed the survey declare being in a middle management role versus the average of 35% from all respondents.

The under representation of women in the professional and management workforce overall and senior management in particular, is not new. Their active presence in middle management ranks is interesting. Taken together with other findings in this survey on motivations, our findings contend that women’s needs and management style will grow in influence within the corporate sphere in the future - provided that women also take on senior roles.

recruitment but also for retention as there are many similarities. Furthermore, important differences in priorities between men and women, the generations, markets and culture demonstrate the complexity of building a company culture and employer brand promise that will satisfy each and every one.

Part 3UNDERSTANDING EMPLOYEES’ MOTIVATIONS

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Responsibility/challenge Clear career path

Job security

Basic salary Benefits

Work life balance Company brand image Company culture Leadership

Convenient location

Direct manager

Relocation

Training/learning opportunity

Company direction

Variable compensation

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Mainland China

2015 2011 2015 2011 2015 2011

Hong Kong Taiwan

Top reasons to change job*ranking of first two motivators combined

The comparison of talent motivations changing job late 2011 and 2015 is not like for like since two criteria have been added in this survey: compensation was split into two clearer elements of base salary and variable compensation. Also, leadership/strategic direction was divided into leadership and company’s direction. Taking this change into account, the top, mid and low reasons to change job in late 2015 remain broadly the same as in late 2011 with the following worth noting.

Base salary, is at the forefront of employees’ preoccupations with relatively less appetite for variable compensation. This is probably a

Immed ia te career advancement ( "b igger responsibility") was the number one change driver in 2011 in all markets. That now gives way to a longer-term view of a career path with employees

result of shrinking bonuses due to lower profit performances while employees are trying to plug the gap with higher base income to cover their cost of living and, in particular, mortgages and children’s education costs.

Benefits seem to drop in importance, especially in Mainland China. This could be due to an aging respondents demographic and their access to more benefits in recent years with senior roles and also employers' more generous policies in the war for talent.

Compensation - base salary first and foremost

Career progression

UNDERSTANDING EMPLOYEES’ MOTIVATIONS

Change drivers : money, advancement but also career path, culture and more security


recognising that many organisations no longer offer inflated titles as a talent attraction tool if the job specification or experience does not justify it.

Notwithstanding the fact that the division of this category may have led to result dilution, we note lower rankings overall for such motivators. Leadership/strategic direction scored higher in all survey rankings since 2012. In 2011, it was

Over the years, company culture remains an important motivation for employees seeking a change. Employers highlight cultural fit as one of their key hiring (and probably retention) challenges.

Looking at the nuances by age and gender, however, those who ranked this criteria pretty high (Top 5 or 6) are, especially in Mainland China and Hong Kong, the professionals above 35 and more so above 45.

This could point to disconnect between what older professionals, the majority of which are male, interpret as ‘company culture’ (hard work versus work life balance; business direction) and what younger professionals, with more female representation, expect to see in a company culture.Generational and gender motivational differences below are quite telling in this respect.

suggested that the importance placed on better leadership and direction in changing job could be linked to the personal appetite for career advancement.

Given this year’s results in the new economic context, that assumption seems to have been va l idated. A key chal lenge for employers , therefore, will be to stimulate long-term employee engagement around a vision and direction that does not necessarily mean fast promotion with more focus on company culture.

Leadership and company direction

Company culture

Work-life balance

Back in 2010, work-life balance was identified as a key retention driver. In subsequent years, it also grew as an attraction driver. Two key elements of better work-life balance were identified in former surveys - the flexibility of working hours (especially among women), and the need to address high stress among all levels (especially senior/middle management and equally between men and women).

Hong Kong has always ranked work-life balance the highest in the region which can be associated to having a higher mix of women respondents, the highest stress levels (MRIC Talent Reports 2013 and 2014) as well as a more Westernised mix of respondents.

Taiwan has always been most polarised on this dimension. It may be attributed to the existence of two groups of people; those who seek to go overseas to work for more money and those who make the choice of a more balanced life in Taiwan.

Mainland China professionals discovered in recent years the pressures of long commuting due to traffic jams, of travel due to broader responsibility, and of long hours due to conference calls at night with US headquarters. This triggered new choices for some, especially women reaching young mother stage, a critical care period in Mainland China due to the former one child policy. However, overall, Mainland China respondents seem to place work-life balance a bit lower on their priority scale. But as we will see later, not in all age groups.

We note that job security increases in importance when compared with 2011, a peak economic year and this is the probable reflection of the slowing economy. We note that men, more than women, are sensitive to job security. This could be influenced by the relatively higher mix of men in senior management roles and, of course, the social notion they continue to be the key ‘bread winner’ in the family.

Job security

Cultural Differences

PRC Born Asia Born Western Born

1

6

5

9

4

2

7

8

14

15

11

3

10

13

16

12

1

4

5

13

6

3

7

8

14

15

9

2

9

12

16

11

2

3

5

10

8

1

6

13

15

14

7

4

11

9

15

12

Integrity leadership

Capable leadership

Ethics, corporate governance

Company image/reputation

Company values

Company vision & direction

Clearer organization structure

Fair promotion process

Community commitment

Environment commitment

Culture of innovation Trust/respect for employees Good benefits

Good work environment Great social activities

Transparent communication

What defines a good employer

The key observation is that all respondents, regardless of origin, rate similarly what makes a good employer: good leadership, primarily with high integrity, clear vision and business direction and a culture of trust and respect for employees; a lso good company va lues and corporate governance.

Westerners tend to be slightly less humanistic and more systematic. Clear business direction is more important for them as well as a capable leadership and a clearer organisation and management structure.

Interest ingly Westerners also tend to rate innovation and recognition for new ideas higher.

Is this a reflection of a less hierarchical way of working and exchanging in Western companies?

Mainland China and Asia respondents seem to place, comparatively, greater importance on human dimensions of company values and care for employees.

In terms of leadership, capability is less important than integrity and a paternalistic view of leading for Mainland China respondents. Please refer to MRIC Talent Report 2014 for more research on this matter. This may prove a talent management challenge for Chinese companies when seeking to internationalize.


*ranking of first two factors combined


Top priorities for men and women are the same: base salary and career advancement.

But, Mainland China women tend to be more pragmatic on "what else": they rate benefits, location, training and a good relationship with their manager more than the corporate dimensions of company culture, leadership and company direction. Some of these traits, such as training or more interest in their direct manager, could be a younger generation trait, though, more than a

female one given the larger proportion of female in the below 35 group.

In Hong Kong and Taiwan too, women put a very high priority on work life balance and lesser priority on variable compensation. Some trade off seems to be taking place.

In Mainland China, they rank these criteria similarly to men, mid-range for work life balance and top 5 for variable compensation.

Gender Differences


Job security



Convenient location

Direct manager

Relocation


Company direction



1

2

9

3

10

7

13

5

8

14

12

15

11

6

4

3

1

13

2

5

7

14

10

11

5

7

15

7

12

4

2

3

5

1

10

8

13

6

8

15

7

13

12

11

4

4

5

11

1

9

2

12

5

7

15

3

13

13

8

10

2

3

9

1

7

6

14

5

13

15

10

12

11

8

3

2

3

12

1

6

3

15

6

10

14

5

9

12

10

6

Top reasons to change job*ranking of first two motivators combined

In 2015, among those who declared a job change in the past 12 months, 16% of men had been in their job for less than a year and 22.5% of women; 39% of men had been in their former job for 1 to 3 years and 41% of women; and 26% of men declared being in their former job for 3 to 5 years and 22.5% of women.

One important reason but not the only one (higher salary and career advancement were also mentioned) given by women who had left their job last year was work-life balance.

Men are more stable than women in Greater China

Generational Differences


Job security



Convenient location

Direct manager

Relocation


Company direction



45+ 36-45 below 35

1

8

6

5

10

4

12

3

7

12

11

14

15

2

9

1

2

10

3

8

7

14

5

8

12

11

15

13

5

4

4

1

14

2

6

11

13

11

8

9

9

15

4

6

3

2

3

8

1

9

5

12

3

5

14

9

13

14

7

11

3

2

8

1

10

5

14

6

7

14

4

13

12

8

10

5

2

9

1

9

4

12

9

12

14

7

6

7

14

3

1

8

5

4

8

8

12

2

12

15

11

7

12

3

5

2

4

10

1

6

4

13

6

12

14

8

15

10

9

3

3

2

13

1

7

4

15

5

12

14

9

8

9

9

5

7.1%

12.8%9.3% 9.8%

39.4%41.2%

26.1%22.6%

18.1%13.7%

Less than 6 month 5 years+3-5 years1-3 years6-12 months

Top reasons to change job


*ranking of first two motivators combined



45+ 36-45 below 35

Integrity leadership

Capable leadership

Ethics, corporate governance

Company image/reputation

Company values

Company vision & direction

Clearer organization structure

Fair promotion process

Community commitment

Environment commitment

Culture of innovation Trust/respect for employees Good benefits

Good work environment Great social activities

Transparent communication

1

6

4

8

3

2

6

11

14

14

9

5

11

11

16

10

1

6

4

10

4

2

8

7

15

14

12

3

9

11

16

13

1

5

8

8

4

3

6

7

16

15

11

2

10

12

14

12

1

3

4

10

6

4

7

10

15

14

9

2

8

13

15

10

2

3

7

10

5

4

9

8

14

15

10

1

6

10

16

13

3

1

5

8

7

6

12

2

14

15

8

4

11

10

15

12

1

6

3

5

7

2

10

11

15

15

9

3

12

12

12

7

1

5

4

10

6

3

12

7

15

14

10

2

9

13

15

7

2

5

13

11

8

4

5

11

15

14

5

1

8

10

15

3

What defines a good employer

A leadership that displays high integrity, a culture of trust and respect for employees, and a clear vision for the business are the common denominators that define a good employer across Greater China. These transcend both geography and generations.

When asked about their motivations for changing jobs, young professionals display relatively low interest for concepts such as company culture, leadership and company’s direction. However, in their assessment of what is a good employer, they rank highly leadership and clear vision of business direction almost similarly to their seniors.

They also show us some elements that matters more in their definition of a good employer namely a fair promotion process and comparatively a culture of trust and respect for all employees. In Mainland China they also voice their appreciation of better benefits as an important main reason to

change job.

In Taiwan, young professionals seem to voice more strongly their need to be more recognized for their ideas, a more transparent communication and a clearer organisation structure.

It is worth noting that, in all markets, similarly to their seniors, young professionals are not that sensitive to work environment, social activities and company’s brand image. Meaning they also know to make the difference between the fundamentals and good to have in an employer.

Unfortunately all age groups continue to show lack of priority, relatively speaking to other factors, in a company’s commitment to community, environment or social responsibilities. These barely make it into the category ‘good to have’ and rank among the lowest of the low at any age.

*ranking of first two factors combined

Young Hong Kong professionals are notably higher on relocation than their seniors. While Mainland China professionals of all ages are notably low, a surprising finding after much coverage in the media these past years on the appetite for emigration of people from Mainland China.

Relocation in Taiwan is weighted relatively high in the younger and older age group. Salary levels in Taiwan are still comparatively lower as is cost of living. Many young professionals try to find a job overseas, also for international or regional exposure. Older Taiwanese professionals, with grown up children, continue to be available for senior full time or project assignments in Mainland China.

One intriguing finding in these comparative rankings is about work-life balance in Mainland China. We saw that women and men tend to rate work life balance similarly, at mid-range of their preoccupations. Looking at age differences, we note that the importance of work life balance seems to grow higher in China together with age to reach a similar higher ranking to Hong Kong and Taiwan. We may conclude that work life balance is a demand that grows with wealth overall and does not represent - as assumed by many - a younger generation appetite for less work.

Instead, young professionals’ focus is more on training and learning opportunities as well as a good relation with their direct manager that we may qualify of good work life blend rather than work life balance.

Work-life balance versus work-life blend Relocation

For those below 35 years 19% had been in their job for one year before changing job versus 17% for 36-45 year old and 20% for 45+ year olds.

T h e c r i t i c a l r e t e n t i o n p e r i o d f o r y o u n g professionals is 1 to 3 years: 47.5% who changed

job last year had been in their former job for 1 to 3 years, versus 33% for 36-45 year olds and 28% for 45+ year olds.

Overall, the turnover rate in the first year, across all ages is high at 17% to 20%.

In year one, Greater China young professionals are no more un-stable than their seniors


1.2% 1.8% 0.8%

6.0%3.6%

11.5% 11.6%

6.6%

28.6%33.0%

47.5%

26.2%25.0% 25.4% 25.0% 25.0%

8.2%

Less than 1 month 1-6 months 5 years+3-5 years1-3 years6-12 months

13.0%

45+ 36-45 below 35

Tenure in previous job for respondents declaring job change in 2015


rounded to one decimal point. The aggregate percentage may not always add up to 100%. Some respondents’ sub-groups have a lower base sample (below 80 but no less than 50) so it should be noted that figures and rankings may be only indicative of market trends. In certain instances, respondents did not complete all questions this is why the sum of sub-segments may not reach 100% of total respondents.

Morgan Philips Executive Search (formerly MRIC) surveyed 2,935 professionals at the end of December 2015 and early January 2016, among which 1860 respondents were from Greater China, who comprise the primary focus of this report. Participants were junior to senior executives and managers across a wide range of industry groups and functions.

The percentages in the report have been

Gender Sector

Fem

ale

Mal

e

Indu

stria

l/Man

ufac

turin

gC

hem

ical

s &

Mat

eria

lsIC

T &

Ele

ctro

nics

Life

Sci

ence

s

Con

sum

er &

Ret

ail

Bank

ing

& F

inan

cial

Ser

vice

s

Prof

essio

nal C

onsu

ltanc

y Se

rvic

es

Oth

er

45+

Tota

lTo

tal

Tota

l

36-4

5

Belo

w 3

5

Top

& S

enio

r

Mid

dle

Juni

or

Dec

ision

Mak

erD

epar

tmen

t Hiri

ng M

anag

er

HR

Prof

essio

nal

25.9

26.9

20.9

38.2

27.7

74.1

73.1

79.1

61.8

72.3

23.8

24.1

34.0

10.0

15.5

10.2

11.0

15.9

1.5

9.0

12.8

13.3

12.2

12.2

17.5

8.5

8.2

6.4

5.5

15.8

12.8

14.2

9.2

15.3

25.8

9.6

9.6

4.4

26.8

3.3

9.3

9.6

9.0

13.1

7.5

13.0

10.0

9.1

15.7

5.5

2,935

1,860

983

452

399

Total

Greater China

Mainland

Hong Kong

Taiwan

34.4

31.8

30.2

38.3

27.9

43.0

40.6

41.2

39.8

40.0

22.5

27.6

28.6

21.9

32.1

41.5

41.5

44.2

45.2

30.3

36.8

35.4

36.5

36.1

32.2

21.7

23.1

19.2

18.6

37.5

47.0

46.7

48.5

42.0

51.0

36.7

35.3

34.1

38.5

31.5

16.3

18.0

17.5

19.5

17.4

2,935

1,860

983

452

399

1,521

1,040

613

215

200

Total

Greater China

Mainland

Hong Kong

Taiwan

Age Level Hiring Authority(Prespective Employer)

% in numerals

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