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THE MRIC ANNUAL TALENT ENVIRONMENT INDEX 2012

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THE MRIC ANNUAL TALENT ENVIRONMENT INDEX 2012

  1. 1. 2012 Greater China Region and SingaporeTalent Environment ReportProduced by the MRI China Group
  2. 2. Survey respondents profilesRespondents’ profiles from Mainland China, Hong Kong, Taiwan and Singapore t y t en og il ce s ss t en s ol ta vi le en m em er s ce hn re er e ag vi ec nd & ls or em ag an ag er t a es ld d ag an an ls & er nc re na so ol an m m m ia y ie ca io ar rs re or dl e nc tr m sc lth ss er ea mo l m or er us su fe ye ta p ni id ni th na d n fe a o th y To To Se M Ju O Fi In Co Li he Pr O 30 31 or Management levels Industry sectors Age Total 4968 3.8 33.6 41.7 16 4.8 10.8 54.8 16 7.2 9.6 1.7 10.3 89.7 Mainland China 3811 3.4 34.9 42.1 15 4.6 7.1 59.7 16.1 7.1 8.6 1.4 10.9 89.1 Hong Kong 532 7 31.2 38.9 18.2 4.7 31.6 26.3 20.3 3.7 14.6 3.6 8.1 91.9 Taiwan 294 2.4 33 44.9 15 4.8 18.8 44.8 13.7 14.7 7.5 0.7 8.4 91.6 Singapore 325 3.7 23.4 38.5 26.2 8.3 13.5 51.7 8.8 8.1 15.4 2.5 9 91 % in numerals s er i e na a gh in a ica a a an Chi in a hi Ch in in p d ny Ch in or ng er d Ch C h omlan a d p n u in d C h e d Ko re Am / ia n d d i o e an n po pe al la e an e n c om nla gh a zh er n gr nl g a a th ro tr ea al nl id inla n n ig ai l C ai ing ng th nla de ai on iw ng or us w Z al e m ai ts a re M ca M ej an a l o ai M H Ta Si N Eu A M Fe M ou M Fo in Lo in B Sh Gu Al M UG in in in in in in in Ne Gender Born in... Company type Location Undergraduate degree or higher* Total 72.1 27.9 Mainland China 74.9 25.1 82.3 17.7 79.5 79.5% 20.5 20 45.9 4.6 29.4 89.8 73.2 4.0 89.8 1.9 3.0 10.6 10.7 3.2 Hong Kong 60.2 39.8 85.8 4.0 85.8 41.7 1.0 2.1 25.8 21.4 10.1 Taiwan 65.5 34.5 91.6 0.8 91.6 0.4 76.7 2.0 27.3 7.2 0.8 Singapore 65.6 34.4 84.0 6.6 84.0 2.1 0.7 37.8 8.7 19.1 16.7 % in numerals *some respondents attended universities in more than one locationTalent on the moveAre you seeking to make a job change in the next 12 months? By locationMainland Hong Kong Taiwan Singapore 33.2% 27.8% 38.1% 39.5% 15.5% Yes 21.1% Yes 13.5% Yes Yes No No No 17.8% No 51.3% 51.1% 48.4% 42.7% Maybe Maybe Maybe Maybe
  3. 3. Introduction • Work life-balance remains a keyIn November 2011, MRIC / The MRI China motivator to move to a new roleGroup conducted its second online survey but unlike in 2010 – perhaps acontacting over 120,000 professionals and reflection of more uncertain timesmanagers in our database. - confidence in the leadership and strategic direction of the prospective employer becomes more important than work/lifeBased on respondents’ feedback of interesting to look into the drivers balance.almost 5,000 talent across Mainland and motivations of a workforceChina, Hong Kong, Taiwan and which is, nevertheless, structurally • A good company culture, acrossSingapore, their desire to change on the move for a better markets and generations isjobs in 2012 remains very strong. “something.” defined primarily as a companyTalent retention in 2012 will remain that has a clear vision for thea core concern for employers. The objective of this survey is to business and that supportsOffers and compensation levels help business and HR leaders to promotion on merit.received in 2011 explain such understand what is on the mindconfidence as well as two market- of professional people in this • Health and benefits are also keydriven reasons: region so that they approach their components of work/life balance retention and attraction strategies and of attraction, considered in1. A natural knock-on effect from in the most effective way. Mainland China to be as critical astalent movement during the compensation.2008/2009 global economic crisis. This research is in evolution.Having been in the roles that they We added two geographies, • About 40% of respondents arelanded in for a solid three years, Taiwan and Singapore, and willing to relocate overseas,Asia talent is ready for a career more respondents to our survey, primarily to North America andstep and the Year of the Dragon enabling us to go deeper in Europe, with Shanghai being theis a good time to consider career various workforce segments. We top destination in Asia.moves; and also explored the dimension of work/life balance, a key finding of We hope that you will find this2. The strength with which most increasing sensitivity in 2010, and report of interest and that yousectors in Asia are weathering the also company culture which, in will feel better informed to dealmore recent economic crisis and our recruiters’ experience, is a key with the talent challenges ahead.China’s rise to the second largest driver of success or failure beyond I would like to thank our surveyeconomy in the world, has created any technical expertise. respondents, our clients whoconfidence at a mid-management kindly provided insights on ourlevel and below that China - and Clear patterns emerged albeit findings and Anthony Pettifer ofthe countries that are major Asia with nuances across markets, Brandstorm Asia who supported usbusiness partners - are coming generations or gender: on questionnaire design and dataof age, while North America and analysis.Europe flounder. • Besides compensation, people stay in their company becauseThat said, the reality, and more of the career developmentspecifically compensation levels, opportunities, the companymay be tempered by the global culture and a good work/lifeeconomy and its impact on this balance.region; this makes it even more 1
  4. 4. 2012 Talent Environment Report – Greater China Region and SingaporeCompanies are still at war for talentJob offers and acceptances in the last 18 month: by locationMainland Hong Kong Taiwan Singapore 23.0% 22.2% 18.3% No offers 31.2% No offers No offers No offers Accepted Accepted 17.1% offer 20.9% offer Accepted 45.1% 46% 28.4% 40.1% 23.1% Accepted 49.6% Offer not offer Offer not Offer not offer Offer not accepted accepted accepted 11.1% accepted 10.9% Resigned but 5.7% 7.3% then accepted Resigned but Resigned but then accepted Resigned but counter offer then accepted then accepted counter offer counter offer counter offerJob markets were active until theend of 2011 since 70 to 80% ofrespondents had received at least ajob offer in the last 18 months andonly 40% to 50% of respondents haddeclined a move. Behaviors on counteroffers are similar in Mainland Chinaand Taiwan where their success rateis about one third. In Hong Kongand Singapore, respondents aresignificantly less responsive tocounter offers. “The economy of China is still developing fast and high caliber candidates are still very difficult to find and attract; every one of our competitors is also looking for good talent.” Tools and automotive products company, China2
  5. 5. Greater China Region and SingaporeRetention: career opportunity matters most in Mainland China,work/life balance in Hong KongIn Mainland China, Most important motivators to stay in current job: Mainland China and Hong Kongwork/life balance isalso key and in both “Staying in current job”locations, company % of respondents citing motivator as one of their ‘top 2’ Mainland China culture ranks highly. Hong KongCompensation is also a key retentiondriver in Hong Kong, ahead of thecareer opportunity. Conversely, inMainland China, the opportunity forcareer development prevails overcompensation.In both places, company leadership Individual Financial Companyand strategic direction are also Opportunity to increase responsibility/ challenges Clearer career path Location Better immediate reporting line Increased compensation/ commission Better benefits package Better company/culture/ people Better work/life balance Leadership/ strategic direction Better brand image Job security Training programs/ future educational reimbursement Overseas assignment potentialimportant, well ahead of theconventional belief that a companybrand image and the immediatereporting line are motivators thatcount most. Low base of sample size in Singapore and Taiwan respondents ‘staying in current job’Progress is a key measure ofsatisfaction. Every high-potential,highly-rated talent aspires toprogress in his career and accordinglyin income. These data show theimportance of holding careerconversations and managingexpectations with timelines and stepstoward career development. Notsurprisingly, people want to feel goodat work with like-minded colleagues;for most, a good workplace is alsoan environment that helps themfulfill, or blends nicely with, their lifeinterests. “In 2012, we will spend even more time to understand staff needs and look for possible restructuring to keep staff happy and show them that they have a prospect in the firm.” Financial company, China 3
  6. 6. 2012 Talent Environment Report – Greater China Region and Singapore Clear strategies for corporate and personal success are as high on change agenda as compensationMost important motivators to change jobs: by location“definitely seeking” “definitely & maybe seeking”% of respondents citing motivator as one of their ‘top 2’ Mainland China Hong Kong Taiwan Singapore Individual Financial Company Financial Better benefits package Increased compensation/ commissionOpportunity to increase responsibility/ challenges Clearer career path Location Better immediate reporting line Better benefits package Increased compensation/ commission Increased job security Better training programs/future educational reimbursements Better company/ culture/people Leadership/ strategic direction Better work/life balance Better brand image Overseas assignment potential “I have consciously implemented a better benefits program (compared with rest of Asia) when we started in China. It results in more net take-home pay.” Chemicals company, China “The China market is hot and good candidates have a lot of opportunities and they are comparing not only the salary, but also benefits and working environment, like annual leave, housing and car allowance, trip allowance.” Automotive products company, China 4
  7. 7. Greater China Region and SingaporeUnsurprisingly in Finally, work/life balance, which is an important driver of retention inMainland China, people Mainland China and Hong Kong,definitely seeking to is not as important a considerationchange jobs are primarily for people seeking a change. This could be explained by the fact thatattracted to a new job economic change is still moving atfor the same reason both a personal and corporate level inthat retains them: China at a fast pace. Talent perceive amore responsibility and greater opportunity of increasing their overall quality of life over the longerchallenge, and promotion term by putting career developmentopportunity. ahead of work/life balance in the short term, to enhance overall life quality forA good company culture is as important themselves and their family.as compensation in Mainland China. InTaiwan, it is company leadership and What does it mean for prospectivestrategic direction that prevails over employers? “In 2012, we willcompensation. implement a Talent • There seem to be differences in terms Integration Strategy thatWhen we include respondents “maybe of talent behaviors in Mainland Chinaseeking” to change jobs, financial drivers entails understanding of and Taiwan, on one hand, and Hongprevail across all locations. Kong and Singapore, on the other, organizational capabilities, but the ability to articulate a good workforce planning,In Hong Kong and Singapore, clear career plan is essential everywhere and recruitment, onboardingstrategic direction and a clear career could potentially mitigate demands for and integration ofpath for the prospective employee are increased compensation. staff. Overall careerimportant ‘soft’ drivers over the promise development will beof a better company culture, but a bit • A good benefits package seems to be aless prevalent than compensation. closely tracked.” cost-effective attraction tool, especially in Mainland China. Industrial company, SingaporeThe attraction of a better benefitspackage seems to be higher in Mainland • The ability to articulate the strategicChina than compensation. Taiwan also direction of the business and whatreflects similar sentiment. makes the company culture, is a plus to attract prospective candidates. They are looking for a successful business where they can cultivate their career. At MRIC, we find that prospective employers, especially hiring managers, are not always aware of that and may not articulate their company “story” well enough. 5
  8. 8. 2012 Talent Environment Report – Greater China Region and SingaporeWanted: a clear vision and meritocracy Most important aspects of company culture: by location % of respondents citing aspects as one of their ‘top 2’ Mainland China Hong Kong Taiwan Singapore Clear vision of where it is going Belief in fairness and promotion on merit The people that make up the company A set of values that are lived up to by all Admired leadership Transparency and corporate governance Brand image Corporate citizenship Environmental concern For all respondents in the Greater China region and Singapore, a clear vision of where their “Leadership, culture, and values become company is going is the equally important drivers for employees most important aspect of to stay with the company.” company culture. Global industrial company, Taiwan This is particularly strong in Taiwan and consistent with the high rating of Taiwanese respondents on the leadership/strategic direction dimension as a driver of job change; “For senior people, a culture of collaboration there may be a proclivity in this is a big driver. The ability to get work done country towards strong leadership efficiently is very important..” figureheads at the helm of businesses. Global bank, Hong Kong6
  9. 9. Greater China Region and SingaporeMost important aspects of company culture:Mainland China local-born and foreign-born% of respondents citing aspects as one of their ‘top 2’ Mainland China local-born Mainland China foreign-born Clear vision of where it is going Belief in fairness and promotion on merit The people that make up the company A set of values that are lived up to by all Admired leadership Transparency and corporate governance Brand image Corporate citizenship Environmental concernIn talent management terms, a clear Another important finding is indeedvision of where a company is going the importance of fairness andcan be associated with the need promotion based on merit as beingand the pride of understanding the among the top aspects of companycommon purpose of the group and culture, alongside people and values.of participating in the achievement In Singapore and Hong Kong, theof such a goal. More pragmatically, people who make up the company areour respondents may see a direct a top aspect. “Culture fit is verycorrelation to their ability to important forcontrol and manage their career The comparison in Mainland China employees, and itdevelopment within a company. If between Mainland-born and Foreign is not affected bythere is a clear vision, transparency respondents is astonishing withand merit- based promotion, then Mainland-born respondents showing gender or age.”an employee can ascertain whether more concern about meritocracy andthe company has strong potential to foreign respondents showing more Aerospace components“hook their star upon” and whether, concern about value-based behavior company, Chinaif they work hard and add value, in Mainland China, than they show inthey can advance and take additional Hong Kong, Taiwan and Singapore.responsibility. 7
  10. 10. 2012 Talent Environment Report – Greater China Region and SingaporeMost important aspects of company culture:by age - Mainland China 30 years and below The people who make up thecompared with all Mainland China company and demonstrate the company values are also important% of respondents citing aspects as one of their ‘top 2’ dimensions of company culture. In All Mainland China a way this is a logical finding which Mainland China 30 years and below simply reinforces the need to recruit people that both demonstrate skills and capabilities, as well as being like- minded in sharing the same behaviors and live values. It is most unfortunate to note that corporate citizenship and environmental concern are the least important aspects of company culture, even among the young generations Clear vision of where it is going Belief in fairness and promotion on merit The people that make up the company A set of values that are lived up to by all Admired leadership Transparency and corporate governance Brand image Corporate citizenship Environmental concern in Mainland China (our sample size did not allow us to verify this point in other markets). The young generation focus, in Mainland China, is much higher on the fairness dimension of their promotion opportunities; it is otherwise interesting to note that for this young generation, while the brand image of their employer has a bearing, they share the same ideas about what makes a company culture, including a clear vision on the company’s direction. “Cultural aspects are more important for those in more senior positions compared to the junior ones. The latter still consider monetary benefit as most important.” Global industrial company - Singapore 8
  11. 11. Greater China Region and SingaporeFor more mature markets, flexible working hoursare most important in work/life balanceMost important aspects of work/life balance: In all markets, work/lifeby location balance is primarily about% of respondents citing aspects as one of their ‘top 2’ flexible working hours Mainland China Hong Kong and meeting family Taiwan Singapore obligations. Flexible working hours is relatively less important in Mainland China where health and benefits aspects are equally important. Flexible working is highest rated in Singapore and Hong Kong, well over personal development. This could be related to the fact that they are more Meeting the needs of family obligations Health (e.g. fitness facilities/medical services) Benefits (e.g. retirement pension/ educational fund/holiday apartment) Personal development (e.g. language classes/ educational courses) Meeting the needs of flexible working (e.g. work hours/ sabbaticals) Convenience of office location (e.g. ease of commute) Meeting the need to care for dependents (e.g. day care/ parental leave) Opportunity for secondment to charities or Gov. Organizations mature markets where people are skill-appropriate for their roles, rather than having been promoted very fast. Singapore and Hong Kong also have experience with more mature work models and are more western workMost important aspects of work/life balance: trend-savvy, and thus probably followMainland China local-born and foreign-born the flexible workforce trend in the US% of respondents citing aspects as one of their ‘top 2’ and Europe more closely than workers in China. Local-born Foreign-born Our company offers more vacation days. Compared to the same position in other countries, employees in China face more pressure and enjoy fewer vacations.” Meeting the needs of family obligations Health (e.g. fitness facilities/medical services) Benefits (e.g. retirement pension/ educational fund/holiday apartment) Personal development (e.g. language classes/ educational courses) Meeting the needs of flexible working (e.g. work hours/ sabbaticals) Convenience of office location (e.g. ease of commute) Meeting the need to care for dependents (e.g. day care/ parental leave) Opportunity for secondment to charities or Gov. Organizations Private equity company, China “Staff are free to organize their private life in a flexible manner without affecting We’ve lost people because we haven’t their work.” been able to give them the flexibility they want.” Private bank, Hong Kong Global law firm, Hong Kong 9
  12. 12. 2012 Talent Environment Report – Greater China Region and SingaporeApart from Hong Kong, extremely high appetite to moveRespondents’ top 15 destinations for a career move: by locationActively looking to relocate from current location Actively looking to relocate from current locationMainland China respondents – 44.9% Hong Kong respondents – 29.4% Looking to relocate to* (can choose more than one) Looking to relocate to* (can choose more than one) Shanghai Singapore North America Shanghai Hong Kong North America Europe Taiwan Singapore Australia/New Zealand Beijing Beijing Australia/New Zealand Europe Suzhou Other ASEAN Countries Shenzhen Japan Hangzhou Guangzhou Guangzhou Shenzhen Qingdao South Korea Taiwan Macau Chengdu Qingdao Nanjing South AsiaActively looking to relocate from current location Actively looking to relocate from current locationTaiwan respondents – 50.8% Singapore respondents – 44.2% Looking to relocate to* (can choose more than one) Looking to relocate to* (can choose more than one) Shanghai Australia/New Zealand Singapore Europe Hong Kong Other ASEAN Countries North America Shanghai Beijing Hong Kong Europe North America Australia/New Zealand Taiwan Japan Japan Other ASEAN Countries Beijing Tianjin South Korea Nanjing Guangzhou Shenzhen Shenzhen Suzhou Macau Xiamen Middle East/Africa Macau Suzhou* % of those actively seeking to relocate “The high tax rate and many government restrictions in Mainland China account for the appetite to move.” Private equity company, Hong Kong10
  13. 13. Greater China Region and SingaporeThe willingness to Much has been said about the Australia/New Zealand are top appetite for relocation of the destinations for Singaporean residentsrelocate is extremely Mainland Chinese who can afford to but less so for Greater China regionhigh with the large emigrate via investment for reasons residents. For example, they rankinternational centers of such as their children’s education. #7, well behind North America This data confirms this trend from a and Europe for Mainland ChinaShanghai, Hong Kong job market perspective. (To be noted respondents.and Singapore remaining that the majority of respondents worktop destinations in this in international firm) However, it is Mainland China respondents areregion. noted that such appetite for overseas showing a preference for North relocation is just as strong in Taiwan America as their top overseas and Singapore as it is in Mainland destination and Shanghai as their top China. Shanghai remains a top inland destination. It is interesting to destination. note, however, that Europe is their fourth preferred destination unlike Taiwan respondents who rank EuropeMainland China respondents’ top 15 foreign #6 only, below Beijing.destinations for a career move: In our research, we noted a potentialActively looking to relocate from current location correlation between preferredMainland China local-born respondents – 43.5% destinations and place of education; Looking to relocate to* (can choose more than one) for example, the ratio of Singapore North America respondents educated in Australia Europe is comparatively higher as well as Hong Kong Singapore the ratio of Mainland respondents Australia/New Zealand educated in Europe. Taiwan Japan Macau It is also interesting to note the Other ASEAN Countries relatively lower ranking overall of Central/South America South Korea Beijing among top destinations, Middle East/Africa especially for Singapore residents Russia/Central Asia South Asia and the low ranking of Guangzhou, at #10 on the list for Hong Kong* % of those seeking to relocate respondents and #11 for Mainland China respondents, behind Suzhou, Hangzhou and Shenzhen. An attraction challenge which we also note in recruitment. “It’s difficult to move people to inland cities if they are not originally from there; we provide additional benefits to the employees if we need to relocate them and design a career development plan for them.” Automotive products company, China 11
  14. 14. 2012 Talent Environment Report – Mainland ChinaThe determination to make a job change is higher inlocal companies than in foreign-owned companiesJob offers and acceptances Are you seeking to make a job changein the last 18 month: in the next 12 months?Mainland China by company type Mainland China by company typeLocal companies Foreign companies Local companies Foreign companies 18.4% 23.9% No offers No offers 38.8% 31.6% Accepted 15.8% Yes 15.4% Yes 25.7% Accepted 20% Offer No No 42.1% offer Offer not 45.8% accepted Offer not accepted 10.3% 45.4% 53% Maybe Maybe 13.8% Resigned but Resigned but then accepted then accepted counter offer counter offerWhat was your total compensation package increase in thenew offer you accepted? Mainland China by company typeLocal company* Foreign company*no change 15.9 no change 10.5 1-10% 8.9 1-10% 10.9 11-20% 13.4 11-20% 14.5 21-30% 17.8 21-30% 25.6 31-40% 16.6 31-40% 18.4 41-50% 11.5 41-50% 9.4 51 +% 15.9 51 +% 10.7* % of those accepting new job “Most senior executives are being actively groomed and the company spends resources on helping them do their job better. Therefore, compensation becomes less of a concern as advancement/development activities are more prized.” Foreign-owned chemicals company, China12
  15. 15. Mainland ChinaTalent churn: middle and senior management most at riskAre you seeking to make a job change in the next 12 months?Mainland China by management levelTop management Senior management Middle management Junior managers 27.4% 32.1% 34.7% 34.2% 26.5% Yes 17% Yes 13.8% Yes 13.8% Yes No No No No 46.2% 50.9% 51.5% 52.1% Maybe Maybe Maybe MaybeJob offers and acceptances in the last 18 month:Mainland China by management levelTop management Senior management Middle management Junior managers 13.4% 19.2% No offers Accepted No offers 24.5% 28.8% offer No offers 18.6% Accepted Accepted No offers Offer 21.6% Offer 21.8% Accepted 19.4% Offer 63.9% 4.1% 49.1% 42.4% 39.7% Offer not Resigned but Offer not Offer not accepted Offer not accepted accepted then accepted 10.1% accepted 12% counter offer 11.4% Resigned but Resigned but Resigned but then accepted then accepted then accepted counter offer counter offer counter offerTop management respondents are still the most soughtafter, with 51% of them receiving at least three offers.They seldom accept counter offers. 13
  16. 16. 2012 Talent Environment Report – Mainland ChinaGreat majority of middle to senior management who acceptedoffers received over 20% increasesWhat was your total compensation package increase in thenew offer you accepted? Mainland China by management levelTop management* Caution: low base Senior management*no change 11.1 no change 14.2 1-10% 22.2 1-10% 9.7 11-20% 5.6 11-20% 18.2 21-30% 22.2 21-30% 21.5 31-40% 11.1 31-40% 16.6 41-50% 11.1 41-50% 6.9 51 +% 16.7 51 +% 13.0Middle management* Junior managers*no change 10.6 no change 14.6 1-10% 8.2 1-10% 11.2 11-20% 12.0 11-20% 11.2 21-30% 26.4 21-30% 20.2 31-40% 20.9 31-40% 14.6 41-50% 11.0 41-50% 16.9 51 +% 11.0 51 +% 11.2* % of those accepting new jobIn terms of compensation, mid-level managers received the highestincreases, generally between 20% “We will create a new retention system to encourage longand 40% more. Going forward, top term commitment, an additional part of the monthly salary willmanagers will be relatively morestable but the appetite for change be put into a pool for retention purpose.”remains high overall. Automotive products company, China “In 2012 we roll out our Talent Integration Strategy. Plan, source, hire, onboard, integrate - career development.” Engineering/energy company, China14
  17. 17. Mainland ChinaWhat was your total compensation package increase in the new offer you accepted?Mainland China by cityBeijing* Guangzhou* Caution: low base Shanghai*no change no change no change 1-10% 1-10% 1-10% 11-20% 11-20% 11-20% 21-30% 21-30% 21-30% 31-40% 31-40% 31-40% 41-50% 41-50% 41-50% 51 +% 51 +% 51 +%* % of those accepting new jobAre you seeking to make a job change in the next 12 months?Mainland China by cityBeijing Guangzhou Shanghai 33.3% 38.2% 32.2% Yes 16.5% Yes 16.3% Yes No 10.9% No No 50.2% 50.9% 51.5% Maybe Maybe Maybe 15

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