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February 27, 2019

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Skilled staff in demand as firms recruit

MOST Chinese companies expect to increase their permanent headcount in 2019, global recruitment specialist Hays said yesterday.

More than half of those surveyed said they expected to increase their headcount, but Hays’ report did not say by how much.

Forty-four percent of Chinese organizations surveyed plan to raise salaries by 3-6 percent in 2019, and about a third said they would increase salaries by more than 6 percent, according to the 2019 Hays Asia Salary Guide.

The report said business activity in Asia was up year on year in 2018 and predicted that trend will continue in 2019.

This year “will be another active year for HR and recruitment professionals,” said Simon Lance, managing director of Hays’ China operations.

The survey also found a noticeable disconnect in the salary expectations between employees and employers in China.

As many as 44 percent of employees in China are expecting increases above 10 percent, but only 8 percent of employers plan to offer such a salary raise, Lance said.

Looking ahead at the skill demand trends in China, Hays said there will be large salary increments to attract top talent with skills in short supply, especially in sectors such as technology innovation, industry automation and digitalization.

Candidates with experience and skills in IT, digital technology, manufacturing, life sciences, financial technology and sales are in high demand and will have greater bargaining power.

Almost all (98 percent) Chinese firms surveyed believe skill shortages will harm the effective operations of their businesses or departments, and 68 percent said skill shortages will have a negative impact on productivity. Only 49 percent of businesses think they have the talent needed to achieve current business objectives.

In 2018, China’s labor market saw moderate annual salary growth moderate, with 40 percent of enterprises increasing salaries by more than 6 percent.


 

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