AN unprecedented slowdown in China’s economy and the rapid growth of technology are reshaping the jobs market for both employers and work applicants.

Shanghai Daily sat down with Simon Lance, China regional director of UK-based recruitment firm Hays, to talk about the latest trends in what is traditionally the “job-hopping” season and his thoughts on prospects for expatriates and Generation Y, or people born between 1983 and 1995.

Hays is focusing on recruitment of middle- and senior-level employees for companies, and has studied Generation Y to plot the future of the workplace.

What trends have you observed during the “job-hopping” season that traditionally follows the Chinese New Year?

A: Turnover has not been as high as we expected. Actually, only about a third of employers we survey said turnover was higher than in previous years. From talks with the business community, we are seeing that people attached greater value to job stability because the economy in 2013 was more volatile than in previous years.

The most interesting trend is the difference in salary expectations between employers and staff. In a survey we did at the end of last year, less than 10 percent employers said they would raise salaries by more than 10 percent in 2014. Yet, more than 50 percent of middle- and senior-level candidates we surveyed said they are expecting rises of more than 10 percent. The gap is wider than in previous years. Employers are under greater cost pressure as the market gets tougher, but I don’t think candidates feel the same.

What do employers value most in an employee?

A: That is changing. Employers now place more importance on loyalty and tenure. Likewise, candidates are starting to place more importance on long-term development prospects than on salary. But it’s still in a transitional phase.

In which industries have headcounts been increasing most?

A: IT, pharmaceuticals, manufacturing and finance are the four biggest industries. Within pharmaceuticals and manufacturing, research and development functions are probably in the highest demand. A lot of employers are locating their R&D functions in China, and because there is a fairly small local candidate pool available, you see higher demands and salaries in the middle or senior ranks there. Also, financial institutions are investing heavily in IT infrastructure.

Are job prospects shrinking for expatriates as companies localize their workforces?

A: Generally speaking, yes. There is still reliance on certain expatriate skills in rapidly emerging industries in China, such as oil and gas. In finance and banking, there is demand for candidates with international trading experience as many China-based institutions eye overseas expansion. Some R&D functions also favor expatriates when they look at new technologies.

Does this impact expatriate salaries as well?

A: Most people now talk about “local plus” packages rather than expatriate packages. Expatriates are employed on local employment contracts, paid in yuan, but they also have some additional benefits, such as health insurance, vehicle allowances or drivers. The days of extremely high expatriate packages are probably over. Those packages exist now only in internal company transfers rather than in local hiring in China.

The role of the expatriate has been changing. Nowadays, it’s more about passing on knowledge or upscaling local Chinese employees to operate at a senior level. For expatriates who want to remain in China for a time, you need to have a strong connection. In one or two years commitments are not attractive to employers any more.

What are your impressions about Generation Y in China?

A: Generation Y in China has very different desires from their employers when it comes to things like life-work balance. Generally speaking, Gen Y in China is very tech-savvy, and they have a preference toward being judged on their results. They may not be willing to work long hours, but they are quite happy to work really hard for good results. The line between work and life is quite blurred for Gen Y. A boss is more a mentor, and that is quite different from previous generations when the relationship was more separate.

 Is there any difference between Generation Y in China and elsewhere?

A: In the UK, the Generation Y is more conservative about employment in their first few years, while in China they are more willing to take risks as entrepreneurs. The young generation needs to decide their career path for themselves. Entrepreneurship is fine, but in the early stages, spending a good amount of time with a company provides grounding to become an entrepreneur. Training development in the early career is a top priority.

 Social media is now a dominant part of the life of the young generation. What is its role in the workplace?

A: From a candidate’s point of view, it’s important to have a consistent profile across platforms, such as your CV and LinkedIn and Weibo accounts. If you plan on entering the job market, you need to build and manage your online profile by being smart and careful. Without a strong online presence, it’s much harder to promote yourself, connect with peers or be an active voice in your industry.

Also, many employers will check candidates’ blogs or comments made on social media. Some comments or complaints might better be kept private.

How can companies make the best use of social media?

A: Social media is not a strategy to replace the rest of recruitment, but it’s a powerful tool if used in the right way. Many employers now include social media as part of their recruitment strategy, but they won’t be reliant on it. They are used to advertising vacancies or building connections with candidate communities. It is a good tool for attracting rather than a replacement for the selecting and screening stage. Having a large database or large number of followers does not automatically lead to a large recruitment database. If people don’t understand how to use it, social media can be quite risky. For a company, having a page on WeChat or Weibo can open you up to criticism, and the way you manage feedback to complaints is very important.