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2016 Morgan Philips Talent Report

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2016 Morgan Philips Talent Report

  1. 1. NEW NORMALHUMAN+ 新常態 新常态 人+ NEW NORMAL NEW NORMAL NEW NORMAL NEW NORMAL NEW NORMAL NEW NORMAL NEW NORMAL NEW NORMAL NEW NORMAL NEW NORMAL NEW NORMAL NEW NORMAL NEW NORMAL NEW NORMAL NEW NORMALHUMAN+ HUMAN+ HUMAN+ HUMAN+ HUMAN+HUMAN+ HUMAN+ HUMAN+ HUMAN+ HUMAN+ HUMAN+ HUMAN+ HUMAN+ HUMAN+ HUMAN+ HUMAN+ Human Plus Recruiting in Greater China Morgan Philips Talent Report2016
  2. 2. 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 Philips Talent Report2016 2 4 10 15 23 24
  3. 3. 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.
  4. 4. 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 financial interests, employees gravitate towards those non- monetary advantages that matter to them - career progression, learning opportunities, work-life balance, company culture and so on. Our research provides useful insights 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 majority 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.
  5. 5. 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 #1 #2 #3 #4 #5 #6 #7 #8 #9 #10 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 Finding talent with culture fit Selecting the best candidates Sourcing talent adapting to change Shortage of skilled talent Finding talent with culture fit Selecting the best candidates Sourcing talent adapting to change 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 Attracting younger generations Sourcing enough candidates Meeting hiring targets in budget Attracting younger generations Improving hiring speed Shortage of skilled talent 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 speed 19.0 % Meeting hiring targets in budget 22.6 % Culturally diversified management team 20.7 %
  6. 6. 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.
  7. 7. Selection rather than Sourcing Company Attractiveness and Cultural Fit It is interesting to note that sourcing enough candidates remains a relatively 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. HIRING EXECUTIVE TALENT IN 2016
  8. 8. 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 Mainland China Hong Kong Taiwan #1 #2 #3 #4 #5 #6 #7 #8 #9 #10 Sourcing enough candidates Improving hiring speed Attracting younger generations 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 Improving hiring speed Improving hiring speed Attracting younger generations Attracting younger generations Selecting the best candidates Finding competitive/productive talent Finding competitive/productive talentRecruiting cost Recruiting cost Better third-party recruitment service Good employer brand Lacking time to recruit Sourcing talent adapting to change Meeting hiring targets in budget Good employer brand Sourcing talent adapting to change 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 Shortage of skilled talent Sourcing is the top benefit of digital in recruiting
  9. 9. 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, while the younger generation 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. HIRING EXECUTIVE TALENT IN 2016 *percentage of respondents who would consider applying jobs via mobile App and who have already done it.
  10. 10. 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. 11. 11-20% 21-30% 2013 2014 2015 2013 2014 2015 2013 2014 2015 No change 1-10% 31%+ 20.7 20.0 8.5 15.0 24.3 27.7 13.3 14.9 12.8 31.7 20.3 18.3 27.9 15.1 26.9 10.7 11.0 11.9 23.4 20.6 23.2 29.0 15.1 10.8 14.6 21.3 13.3 20.319.5 22.9 16.3 18.5 18.3 29.8 26.7 20.3 25.5 22.3 18.630.822.0 22.1 20.026.8 17.5 Mainland China Hong Kong Taiwan 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% Mainland China Hong Kong Taiwan 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 Significantly, 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
  12. 12. Talent Report2016 11 Mainland China Hong Kong Taiwan MaybeNoYes 58.8% 20.5% 20.7% 60.6% 21.1% 18.3% 67.0% 17.1% 15.9% Mainland China Hong Kong Taiwan 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.”
  13. 13. CHANGING JOB IN 2016: EMPLOYEES’ INTENTIONS 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 Mainland China Hong Kong Taiwan 73.4% 79.6% 79.6% 68.7% 77.0% 86.7% 83.8% 84.3% 80.0% Useful to Explore Useful to 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 + Human Digital 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. It is interesting that all age groups are 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
  14. 14. Talent Report2016 13 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 finding 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 firm 38.0 % Introduced by a friend 27.8 % Recruitment firm 41.1 % Job boards 12.2 % Introduced by a friend 24.4 % Recruitment firm 32.0 % Job boards 5.3 % Introduced by a friend 33.3 % Mainland China Hong Kong Taiwan #1 #2 #3 #4 #5 #6 #7 Other 1.9 % Other 2.2 % Other 2.7 % 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/HR 19.0 % Talent acquisition/HR 17.8 % Talent acquisition/HR 24.0 %
  15. 15. CHANGING JOB IN 2016: EMPLOYEES’ INTENTIONS Job boards 10.2 % Recruitment companies 56.1 % Social networks / Social media 4.4 % Company career sites 4.3 % Friends, word of mouth 25.0 % Job boards 13.4 % Recruitment companies 37.0 % Social networks / Social media 4.7 % Company career sites 6.1 % Friends, word of mouth 38.2 % Job boards 9.7 % Recruitment companies 35.6 % Social networks / Social media 9.0 % Company career sites 6.4 % Friends, word of mouth 30.6 % Mainland China Hong Kong Taiwan #1 #2 #3 #4 #5 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. CHANGING JOB IN 2016: EMPLOYEES’ INTENTIONS 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
  16. 16. Talent Report2016 15 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
  17. 17. 14 14 14 10 11 13 15 151512 12 12 4 6 6 11 1110 10 13 13 8 84 4 7 4 4 2 9 9 9 1 1 1 62 2 2 2 8 5 5 3 6 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 3 1 9 2 10 7 14 5 8 13 12 15 11 6 4 2 3 7 1 10 4 12 6 7 15 5 14 13 10 7 2 3 9 1 7 5 14 6 13 15 9 12 11 8 3 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 Immediate career advancement ("bigger 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
  18. 18. Talent Report2016 17 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 validated. A key challenge 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
  19. 19. 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; also good company values 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. Interestingly 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. UNDERSTANDING EMPLOYEES’ MOTIVATIONS *ranking of first two factors combined
  20. 20. Talent Report2016 19 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 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 Mainland China Hong Kong Taiwan 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
  21. 21. 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 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 Mainland China Hong Kong Taiwan 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 UNDERSTANDING EMPLOYEES’ MOTIVATIONS *ranking of first two motivators combined
  22. 22. Talent Report2016 21 Mainland China Hong Kong Taiwan 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
  23. 23. 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. The critical retention period for young 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 UNDERSTANDING EMPLOYEES’ MOTIVATIONS 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
  24. 24. Talent Report2016 23 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 Female Male Industrial/Manufacturing Chemicals&MaterialsICT&Electronics LifeSciences Consumer&RetailBanking&FinancialServices ProfessionalConsultancyServices Other 45+ Total Total Total 36-45 Below35 Top&Senior Middle Junior DecisionMakerDepartmentHiringManager HRProfessional 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
  25. 25. talent to succeed with their company plans and market strategies. Combining the innovative digital techniques put in place by Morgan Philips Group with our proudly maintained high quality local consultancy, we offer BETTER, FASTER, and CHEAPER services to our clients. Morgan Philips Executive Search is a direct approach search firm specializing in the recruitment of executives and experts. With a strong presence in the region since 1998, our consultants understand well the unique business challenges faced by our international and local clients who trust us to find the best ABOUT MORGAN PHILIPS EXECUTIVE SEARCH Room 2102, SK Tower No. A6, Jianguomenwai Avenue Chaoyang District Beijing 100022 Tel: (86 10) 6563 0015 Fax: (86 10) 6505 9176 info.beijing@morganphilipscn.com Unit B, C & D, 19/F, On Hing Building No.1 On Hing Terrace Central, Hong Kong Tel: (852) 3656 5888 Fax: (852) 2530 9905 Email: info.hongkong@morganphilipshk.com Beijing 1101 Shui On Plaza 333 Huai Hai Zhong Road Shanghai 200021 Tel: (86 21) 6390 6007 Fax: (86 21) 6386 7472 info.shanghai@morganphilipscn.com Shanghai Suite 2101, South Tower World Trade Centre Complex 371-375 Huan Shi Dong Road Guangzhou 510095 Tel: (86 20) 8769 6161 Fax: (86 20) 8769 6260 info.guangzhou@morganphilipscn.com Guangzhou Rm. 1209, 12F., No.333, Sec. 1, Keelung Rd., Xinyi Dist., Taipei City 110, Taiwan, R. O. C. Tel: (886 2) 2757 7268 Fax: (886 2) 2757 7267 info.taiwan@morganphilipstw.com TaipeiHong Kong
  26. 26. T h e D i g i t a l H e a d h u n t i n g C o m p a n y

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