A sense of cautious optimism is returning to the employment market as a challenging 2009 draws to a close. Michael Page International's annual employment survey, which includes responses from 350 senior managers from leading organisations in China, reveals 49 percent of respondents believe their headcount will increase over the coming 12 months. A further 49 percent predict their staff numbers will remain stable, with only 10 percent saying more cuts are likely. This is a significant change from 12 months ago, and a clear indication that China remains a key market for many companies.
The impact of the downturn for the retail and sourcing sector in Hong Kong and China:
The retail sector has been one of the more resilient sectors in China over the last 12 months, with international companies still growing their brands across the region. Some growth plans have invariably been reduced in response to the global downturn, but compared to other regions in the world, China remains relatively healthy.
From a hiring perspective, the number of advertised positions in the market have reduce marginally compared to 12 months ago. On a positive note, roles that were put on hold at the beginning of 2009 have been approved in recent months. Some companies predict further increases in their hiring activity by early 2010, although the majority view is that any significant improvement will not occur until later next year.
Current retail sector conditions:
A good indicator of returning business confidence in the retail sector is the level of expansion currently being seen – a sign that retail companies are pushing forward with growth plans as they look for new store locations. There is also an increase in the number of executive roles for international companies setting up sourcing offices in Shanghai. Companies prefer to have local representation in China rather than trying to manage business operations remotely. Local candidates with a good understanding of the Chinese domestic consumer market remain highly sought after, especially for roles in the sourcing market.
There is an ongoing trend of management teams based in overseas headquarters getting directly involved in hiring decisions in China. This is happening at all levels, not just for senior management roles.
Some larger companies in the retail sector have only invested in limited growth this year. This has enabled SMEMEs entering China for the first time to attract talent from well established brands. This trend has been most noticeable in the food and beverages sector.
Salary and compensation trends for the retail sector:
During recent periods of economic growth it was not uncommon for top performing employees to receive significant pay increases when changing roles. This trend is no longer occurring as companies are now offering more consistent and modest localised salary packages.
Expansion managers and professionals with a proven track record in retail operations are in high demand and are commanding competitive salaries. Senior supply chain professionals with the required technical skills and a high level of spoken English are receiving the best offers from multinationals. English skills are crucial because global companies require their supply chain professionals to communicate with internationally based colleagues, customers and suppliers.
In general, Chinese job seekers are realistic about salaries on offer, compared to two years ago. Job seekers who are not currently employed tend to be more flexible with their remuneration in order to get back into the workforce. Those people working in a secure job and performing well are more likely to accept counter-offers to stay if approached about another role. Organisations in China need to be aware that genuine career opportunities are essential to attract high calibre candidates for new roles.
To read the full report and to view the salary tables for the retail sector visit: Michael Page International Retail & Sourcing Salary Forecast.
