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ABOUT HAYS

offices

worldwide

33 markets

worldwide

266

11,600+ staff

20areas

of specialism

ABOUT HAYS

3M+ LinkedIn

followers

Official Recruitment

Partner of Manchester

City FC

“Best Workplace™” &

“Best Workplace™ for

Women” in Greater

China 2019

ABOUT THIS PRESENTATION

SURVEY PERIOD

August – October, 2019

5,700+working professionals

CONTENT

STRUCTURE

Economic outlook

What impact is this

having on employers?

What impact is this

having on employees?

Industry trends

RESPONDENTS

THE ECONOMIC OUTLOOK

THE PAST 12 MONTHS HAVE BEEN DIFFICULT

25% Employers in Mainland China mentioned

business activities decreased in the past year

China HK SAR Singapore Japan Malaysia

Increased 48% 48% 52% 72% 54%

Decreased 25% 25% 27% 12% 28%

Remained

the same27% 27% 21% 15% 18%

Business Activities in 2019

BUSINESS ACTIVITYIN THE NEXT 12 MONTHS

Pre

Outbreak

Post

Outbreak

Increase 54% 26%

Decrease18% 54%

Remains

the same 28% 20%

Forecast an increase in business activity

Asia

69% in 2019

59% in 2020

62% in 2019

54% in 2020

Mainland China

The COVID-19 outbreak severely impacted business activities.

Forecast of business activities

in Mainland China

42% employers in Asia expect

outlook weakening

41% employers in Mainland

China expect outlook weakening

11% higher than last year

ECONOMIC OUTLOOK IN 2020SOFTENING

Forecast weakening in Mainland China

30% in 2019

41% in 2020

30% Chinese employers

are optimistic

10% lower than last year

Strengthen 22%

Weakening59%

Remains the same19%

Forecast this Feb. post virus outbreak

ECONOMIC GROWTH OUTLOOKSCENARIOS IN 2020 BY ECN

*Source: The Economist Intelligence Unit (EIU)

ScenarioDate by which the coronavirus outbreak comes

under control within China

China’s revised real GDP growth,

2020 (%)

Baseline End-March 4.5

Pessimistic End-June 2.5

Nightmare The outbreak is not contained in 2020 <1.7

Projected economic impact of coronavirus (COVID-19)

WHAT IMPACT IS THIS HAVING ON EMPLOYERS?

STAFF LEVELS

NEW STAFF ARE EXPECTED BUT NOT AS MANY AS LAST YEAR

Expectations of diminished

staff numbers down

Expect to increase

staff numbers

PERM STAFF Pre

Outbreak

Post

Outbreak

Increase43% 28%

Decrease16% 34%

Remain the

same 41% 38%

Change of permanent staff levels:

Lesser employers expect to increase permanent

staff after the COVID-19 outbreak

THE IMPACT ON SALARIES & SALARY STRUCTURES

THE CHINESE WILL GET BETTER PAY INCREASES

￥

Chinese employers planning to

give pay rises of 3-10%

67%

94% Chinese employers

reward bonus

2020 CNHK

SARJP MY SG

Nil 12% 16% 16% 20% 20%

<3% 15% 38% 54% 24% 42%

3-6% 44% 35% 25% 39% 29%

6-10% 23% 7% 3% 13% 8%

>10% 6% 4% 2% 4% 1%

WITH FOCUS ON CASH IN CHINA

￥

Health & medical and

housing strongest in china

China mainly cash in hand

Slightly less offering benefits other than bonuses

2019 2020

68% 66%

Top 3 benefits provided:

Health/medical

benefits74%

Housing

allowance31%

Pension 28%

SKILL LEVELS ARE SEEN AS A SERIOUS CONCERN

SKILLED STAFF IS A MAJOR CONCERN

of Chinese employers

don’t think / not sure they

have the talent needed51%

believe talent shortages

will hamper the effective

operation of business92%

BECAUSE TRAINING IS NOT HAPPENING AS IT SHOULD

acknowledge the lack of

training and professional

development in China 56%

of organisations invested

in upskilling workforce66%

65% Believes they will find

people with right skill set

from the market

THE FOCUS IS ON SOFT SKILLS

Mainland China is looking for soft skills more than hard skills

2019 2020

Problem solving 78% 87%

Team Working 61% 71%

Verbal communication 39% 65%

Soft Skills 53% Hard Skills 47%

THE NEED FOR ORGANISATIONAL CHANGE

THE NEED TO ADAPT TO A CHANGING WORLD IS STILL STRONG, THROUGHOUT ASIA & MAINLAND CHINA

Fewer seeing the need to restructure

65% in 2019

55% in 2020

WHAT IMPACT IS THIS HAVING ON EMPLOYEES

JOB SECURITY

JOB SECURITY IS SEEN AS A BIG DRIVER IN EMPLOYMENT DECISIONS

Career progression as driver for

job change

59% Mainland

China

45% Asia

Chinese are more settled

Looking for a new job

26% Mainland

China

36% Asia

…AS MORE ARE CONCERNED ABOUT IT THAN PREVIOUSLY

More concerned about job security

21% respondents (post outbreak)

would temporarily give up looking

for a new job

37% respondents (post outbreak)

considering to stay at current

company

37% in 2019

41% in 2020

PROFESSIONAL DEVELOPMENT

THE CHINESE CONTINUE TO LEAD ASIA IN THE AREA OF SELF-DEVELOPMENT

64% Mainland

China

45% Asia

3+ hours/week of professional

development

51% Chinese employees are

not confident on their

skills

Least confident

amongst employees

in Asia

ARE THEY BEING PAID ENOUGH?

CHINESES SALARIES ARE GROWING FASTER THAN THE REST OF ASIA

69% receiving pay rises

between 3-10%

VS. most in Asia only get 0-6%

Pay rise in 2019 Mainland China Asia

Nil 12% 18%

Up to 3% 12% 29%

3-6% 42% 35%

6-10% 27% 13%

Greater than 10% 7% 6%

MOST ARE SATISFIED WITH THEIR PAY

￥

satisfied with

salary package

55% in Mainland China expect pay rise of >10%

Employees

Employers

40%

7% in Mainland China expect to give a pay rise >10%

INDUSTRY TRENDS• Accountancy & Finance

• Banking & Financial Services

• Digital Technology

• Human Resources

• Information Technology

• Legal

• Life Sciences

• Manufacturing & Operations

• Marketing & Digital

• Procurement & Supply Chain

ACCOUNTANCY & FINANCE

Candidates with IPO, M&A

experience in focus; Outsourcing

& Automation may replace

transactional roles

The demand for finance

candidates with experience in

IPOs will rise significantly in 2020

Business finance, international

tax & compliance experts in

demand

Domestic expansion may result

in fierce hiring competition

BANKING & FINANCIAL SERVICES

Stimulus policy for

WFOE investors brings

in new hiring needs

Foreign banks ramp up

hiring for compliance

and risk

Belt and road initiative will

continue expanding

investment roles

Trade war pushes banks to

focus on cash management

& MNC clients

DIGITAL TECHNOLOGY

Market growth slow but steady

Digital transformation

Omni-channel retail

Digital technology is

transforming the retail industry

As data analytics drives

growth for companies and

consumers become more

tech-savvy, expectations for

faster and better ways of

doing business are rising

HUMAN RESOURCES

HR market bolstered by

local companies as

Mainland China focuses on

domestic growth

TMT, Insurance and

Education sectors hiring

professionals experienced

in OD

Local competition fuels

attractive salary package

INFORMATION TECHNOLOGY

Skill shortage in IT

security to raise pay

Salaries in emerging

tech highest

5G

Digital transformation

is top priority

These projects have

created more IT jobs to

build & support the on-

going technical

platform.

LEGAL

Remuneration remains

competitive especially

in local firms

Local corporations and law

firms to continue hiring

Hiring activity in M&A and

Specialist practice continue

into 2020

LIFE SCIENCES

The Life Sciences

Industry will continue to

benefit from investments

China was the second-largest

pharma market globally behind

the U.S.

Source: Financial Times

Rapid drive in the development of

online medical and pharmaceutical

platforms after epidemic

Novel Corona Virus outbreak has

help speed up and boosted the

online medicine industry in

Mainland China

MANUFACTURING & OPERATIONS

Impact of geopolitics in

2019 will continue into

2020

China transit to a

consumption economy

Move out of tier one cities

Local companies and

candidates take centre stage

MARKETING & DIGITAL

Expansion of local

companies result in

headcount creation

Hiring trends from last

two years to continue

Data management

experience sought after

PROCUREMENT & SUPPLY CHAIN

US-China trade war

accelerates decline

in supply chain roles

Candidates value

stability over pay

SUGGESTIONS TO EMPLOYERS & EMPLOYEES

RECOMMENDATIONS FOR EMPLOYERS

Opportunity to re-strategize corporate culture and

employees’ learning & development

Flexible working solutions to tackle current labor

challenges

Take action on the skills gap now

Move quickly on suitable high potential candidates

Engage candidate and offer the best

Partner with a strong Recruitment Firm

RECOMMENDATIONS FOR EMPLOYEES

Find ways to enhance and develop your soft

skills

Continue self development on technical and

professional skills

Always plan for a long term career

Job security and Career Progression to

remain key reasons

Choose suitable vendor to maximize

opportunity

DOWNLOAD THE REPORT

https://www.hays.cn/en/salary-guide

Q&A

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