2011: muddle through the heightened financial uncertainty

• Global economic growth

pace slowed down in

2011.

• The risk of renewed

recession remains

uncomfortably high, with

European debt contagion

carries the threat.

• It would be hard to avoid

big knock-on effects in

most of the EM universe if

the US and Europe both

sink into recession

Real GDP growth rate

2011: muddle through the heightened financial uncertainty

• Global economic growth

pace slowed down in

2011.

• The risk of renewed

recession remains

uncomfortably high, with

European debt contagion

carries the threat.

• It would be hard to avoid

big knock-on effects in

most of the EM universe if

the US and Europe both

sink into recession

Real GDP growth rate

Source: Credit Suisse 2011

China economy: unlikely to get into a hard land scenario

• The instability of external and domestic

economic environment is increasing and export

growth may soften towards the mid-single digits

in the coming months.

• The domestic economy has been dragged by

two major factors—slowing infrastructure

investment and financial distress among the

SMEs.

• Continue to cope with the pressure brought by

inflation

• The economy pressed for the acceleration in

economic restructuring

• The structure of consumption is changing.

• Housing consumption

• Automobile consumption

Source˖ Hay Group 2011 Total Remuneration Survey

Voluntary turnover rates in recent years

Chinese companies increased Head-Counts by 10% this year

• The average of new employees portion (including replacement) across all

industry in China is 29.8% this year, with pharmaceutical, high-tech and energy

as the top 3.

• Energy and real estate industry have lower rate of YTD recruitment completion.

New Employee Rate (Planned)Completion of Recruitment Plan YTD

Source: HayGroup China 2011 Industry Study

Increased job opportunities are largely contributed by POEs

• Companies in Middle and South China

have the biggest pressure to recruit talents

compared with other regions.

New Employee Rate (Planned)Completion of Recruitment YTD

Source: HayGroup China 2011 Industry Study

The talent war of the ‘three kingdoms’

Defend Attack New Hire Existing

SOE•Top talents•Top fresh graduates

•Top team building•Successor planning

•Multi-career path

POE

•Stars in the market•High-end technicians

•Talents from benchmark co.

•Promote young talents

•More job responsibility

•Company college

MNC

•Scarce talents•Replacement hire•Top fresh graduates

•Career development program

•Promote from within

•Employer branding

Now

Future

Most difficult to locate R&D talents in the market

• Sales-related positions outnumber others across industries, with R&D

followed closely.

• Chinese companies find it most difficult to fill in their R&D positions, due to

fast growth and increasing voluntary turnover rate.

Source: HayGroup China 2011 Industry Study

Finance and Real Estate have higher salary median number

The salary distribution

among industries is listed

on the right. The top 3

industries were Finance

(71,012), Real Estate

(69,407), and

Telecommunications

(61,940).

Industries Median annual salary (CNY)

High Technology 51,000~62,000

Manufacturing 50,000

Automotive 56,000

Consumer Products 54,000~57,000

Real Estate 53,000~69,000

Traditional Service 38,000~45,000

Morden Service 47,000~54,000

Finance 71,000

Pharmaceutical 58,000

Energy 59,000

Source: HayGroup China 2011 Industry Study

Entry level pay 2011: Management Trainees

Entry Level Salary (CNY)

Degree Bachelor Master PhD

P90 84,640 104,520 137,800

Q3 63,050 85,000 129,650

Median 43,225 62,400 117,000

Q1 30,900 48,000 104,000

P10 27,984 36,000 88,240

Average 50,070 69,305 115,519

Source: HayGroup China 2011 Industry Study

Focus on Hai-Gui (returned students): a spot survey result

• Spot Survey conducted by

HayGroup China and partner in

early 2011. Total 792 samples,

• 59% without work exp.

• 18.2% from UK, 31.3% US.

• Master degree 53%.

• Major in Biz or Eco. 48%

• Overall, Hai-Gui’s enjoy 27%

premium in starting salary

compared with their domestic

peers.

• 71% of respondents reported to

have got one or more offers within

3 months in China

• 24% of them are now working for

financial sectors

27%PREMIUM

71%IN 3MONTHS

792SAMPLES

23%IN FINANCE

Source: HayGroup China Spot Survey

SWOT of UK Hai-Gui from Chinese recruiter’s perspective

•Language

skills

•Know-how

•Cross-cultural

understanding

•Out-of-box

thinking

S W

O T

•Expectation

•Local

understanding

•Adaptability to

tough working

environment

•Fast diploma

•Increasing

demand of

international

perspectives

•Local education

quality catching

up

•Diploma

scandals

Piece of advice for students

• Think through and identify your own focus

(industries, functions and etc)

• Lower your expectations, as well as your parents’

• Don’t expect for a quick ROI, what you

experienced is invaluable for life

• Career is a marathon: don’t worry too much

about the starting level and salary

• Listen to the CALLING inside

Leverage

the

Resources

Thank you!

China economy: unlikely to get into a hard land scenario

• The instability of external and domestic

economic environment is increasing and export

growth may soften towards the mid-single digits

in the coming months.

• The domestic economy has been dragged by

two major factors—slowing infrastructure

investment and financial distress among the

SMEs.

• Continue to cope with the pressure brought by

inflation

• The economy pressed for the acceleration in

economic restructuring

• The structure of consumption is changing.

• Housing consumption

• Automobile consumption

Chinese companies increased Head-Counts by 30% this year

• The average of new employees portion (excluding replacement) across all

industry in China is 29.8% this year, with pharmaceutical, high-tech and energy

• Energy and real estate industry have lower rate of YTD recruitment completion.

Increased job opportunities are largely contributed by POEs

• Companies in Middle and South China

have the biggest pressure to recruit talents

compared with other regions.

Most difficult to locate R&D talents in the market

• Sales-related positions outnumber others across industries, with R&D

followed closely.

• Chinese companies find it most difficult to fill in their R&D positions, due to

fast growth and increasing voluntary turnover rate.

Finance and Real Estate have higher salary median number

The salary distribution

among industries is listed

on the right. The top 3

industries were Finance

(71,012), Real Estate

(69,407), and

Telecommunications

(61,940).

IndustryThe median annual salary in the market

(RMB)

High Technology 51,000~62,000

Manufacturing 50,000

Automotive 56,000

Consumer Products 54,000~57,000

Real Estate 53,000~69,000

Traditional Service 38,000~45,000

Morden Service 47,000~54,000

Finance 71,000

Pharmaceutical 58,000

Energy 59,000

Focus on Hai-Gui (returned students): a spot survey result

• Spot Survey conducted by

HayGroup China and partner in

early 2011. Total 792 samples,

• 59% without work exp.

• 18.2% from UK, 27.3% US.

• Master degree 53%.

• Major in Biz or Eco. 48%

• Overall, Hai-Gui’s enjoy 27%

premium in starting salary

compared with their domestic

peers.

• 71% of respondents reported to

have got one or more offers within

3 month.

• 24% of them are now working for

financial sectors

27%PREMIUM

71%IN 3MONTHS

792SAMPLES

23%IN FINANCE

SWOT of UK Hai-Gui from Chinese recruiter’s perspective

•Language

skills

•Know-how

•Cross-cultural

understanding

•Out-of-box

thinking

S W

O T

•Expectation

•Local

understanding

•Adaptability to

tough working

environment

•Fast diploma

•Increasing

demand of

international

perspectives

•Local education

quality catching

up

•Diploma

scandals

Piece of advice for students

• Think through and identify your own focus

(industries, functions and etc)

• Lower your expectations, as well as your parents’

• Don’t expect for a quick ROI, what you

experienced is invaluable for life

• Career is a marathon: don’t worry too much

about the starting level and salary

• Listen to the CALLING inside

Leverage

the

Resources

Thank you!