Archives for: 2010

12/30/10

Permalink 09:10:04 pm, by dacare, 246 words, 655 views   English (US)
Categories: Candidates, Labor and Worker, HR News Express

57 Million Jobs Created in China since 2006: MHRSS

A total of 57 million jobs will have been created in China's urban areas over the 2006-2010 period, the Minister of Human Resources and Social Security (MHRSS) Yin Weimin said Thursday.

Annual employment for the period will be 11.4 million, or 2.1 million more than China's 10th Five-Year Program (2001-2005) period, said Yin while addressing a national human resources and social security work conference.

Yin said the unemployment rate had remained under 4.3 percent throughout the period, while nearly 45 million underemployed rural workers had taken up new jobs in the non-agricultural sectors, 5 million more than the 2001-2005 period.

The Employment Promotion Law of 2007 as well as measures introduced after several natural disasters and the global financial crisis had boosted employment, Yin said.

Also, a system providing vocational training and employment services was taking shape, he said.

About 86 million people received special vocational training and 330 million people used government employment services during the period, he added.

Chinese Vice Premier Zhang Dejiang said at the national conference on human resources and social security that China needed to resolutely stick to the task of creating jobs and keep improving the social security system during the coming 12th Five-Year-Plan period (2011-2015).

In the next five years, the government should implement more effective employment measures and create jobs through diversified channels, Zhang said .

Zhang also said the government should increase investment in the social security network and expand the network's coverage so to improve the country's social security system for both rural and urban residents.

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12/27/10

Permalink 03:13:39 am, by dacare, 361 words, 1671 views   English (US)
Categories: Investing in China, HR News Express

Seek takes JobsDB and increases its Asian/Chinese reach

INTERNET job hunting giant Seek has expanded further into southeast Asia, taking a $206 million stake in a Hong Kong-based online recruitment website.

Seek yesterday announced it had purchased the majority holding in employment website Jobs DB Inc, giving it a 60 per cent slice of the Chinese company through the creation of a new company, Seek Asia.

Seek Asia is a partnership between Seek, James Packer's Consolidated Media Holdings, Macquarie Capital and Tiger Global.

Seek's co-chief executive Andrew Bassat said the move into Asia "built upon the company's existing international footprint" and exposed the company to "attractive regions".

"We believe this transaction represents a compelling opportunity for Seek to play an increasingly meaningful role and to expand its exposure in the region."

Seek's latest acquisition adds to several other major international investments including Chinese online jobs board Zhaopin; Southeast Asian recruitment website JobStreet and employment sites in Brazil and Mexico.

Evans and Partners analyst Paul Ryan said the Jobs DB acquisition would be part of Seek's long term strategy to become a leader in the Pan-Asian online employment market.

"When you add Jobs DB in, the combined businesses have a larger, more diversified and better presence in southern China," Mr Ryan said. "It's a bigger, more diversified and more profitable business."

Mr Ryan said he expected Macquarie and Tiger Global to exit Seek Asia through an IPO at a later date.

However, another analyst said Seek may have been spreading itself too thin with its latest Asian investment following co-founder and chief executive Paul Bassat's plans to leave the company in mid-2011.

"This is another company that they have to integrate and manage and try to grow," said the analyst, who declined to be named.

Seek Australia has a 69 per cent holding in Seek Asia and the other 31 per cent, $64 million, will be divided between the three other co-investors.

Mr Packer's $25 million Seek Asia investment was his first since selling out of Seek Australia last year for $440 million.

The media and casino mogul has also invested in Seek's Brazilian acquisition, Brasil Online Holding, and made an unsuccessful attempt to get Paul Bassat on the Ten Network board.

Seek shares rose 1c to $6.57.

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12/21/10

Permalink 07:46:43 pm, by dacare, 494 words, 592 views   English (US)
Categories: Candidates, Labor and Worker, HR News Express

China, India lead list of best countries for new jobs

On CBS' 60 Minutes last Sunday, the Brazilian billionaire Eike Batista told correspondent Steve Kroft that he's hiring Americans to weld his oil platforms.

"To weld the platforms?" Kroft responded incredulously. "Yes," replied Batista, explaining that his country's booming economy is at almost full employment, and Brazil needs to import workers. "Already we have created this year 1.5 million jobs," continued the world's eighth richest man according to Forbes' most recent tally. "It's unbelievable."

That unbelievable job growth is reflected in the latest global employment outlook survey by the staffing firm Manpower. Brazil rates fourth on the tally of the nations with the greatest optimism about hiring in the first quarter of next year. Brazil's net hiring outlook--the number of employers surveyed who expect to increase their employment rolls minus the percentage who expect to decrease them--is 36%. That's driven by a 7% gross domestic product growth rate, three times higher than in the U.S.

Manpower surveyed 64,000 human resource directors and senior hiring managers from public and private concerns worldwide to come up with its list. It asked each of them about their expectations for hiring in the first quarter of 2011. Almost half, 47% of them, came from 10 countries in the Americas, 24% from eight countries in Asia and the Pacific, and 29% from Europe, the Middle East and Africa. "This is very much a macro-economic look at new job creation," says the staffing firm's chairman and chief executive, Jeffrey Joerres.

The results are striking, if not surprising. India has pulled ahead of China since last quarter to take first place, with a whopping 42% net hiring outlook for the first quarter of 2011. China follows close behind at 40%, a 2% decrease from last quarter. Taiwan comes in third, with a net employment outlook of 37%.

Next in line, after Brazil: Turkey, at 27%."There are 75 million people in Turkey," Joerres notes, "more than people realize." And so, despite a lingering debt overhang, there are plenty of consumers buying stuff and driving growth and hiring. Next up after Turkey: Singapore, with a net hiring outlook of 26% for the first quarter.

Are these new jobs ones that should prompt Americans to consider moving? Possibly, says Joerres, though much of the demand gets filled by people from neighboring countries. Outfits like Manpower, which has offices in 82 countries, and the plethora of online job listings make the international job market ever more transparent.

While many of the openings are for low-paying jobs, there are also plenty of opportunities for highly qualified professionals, especially in fields like geoengineering and information systems, Joerres says. Oil and gas engineers are in high demand, for instance. That's a minority of the workers who relocate internationally for jobs, he adds, but it's a minority that's growing: "It's still on the margin, but the margin has gotten bigger."

The countries rounding out the list include Peru, Costa Rica and Argentina as well as Australia and Hong Kong.

How does the U.S. rate? Better than you might expect. It has a 9% net hiring outlook.

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Permalink 07:43:34 pm, by dacare, 113 words, 543 views   English (US)
Categories: HR News Express

China to Revise Job Categories List

China will revise its list of 1,838 different kinds of job categories, which was made by the Ministry of Labor and Social Security, Quality and Technical Supervision Bureau and National Statistics Bureau in 1999.

The revision would reflect China's social structure better and help future workforce analysis and human resources development, said Yin Weimin, the Minister of Human Resources and Social Security and head of the revision committee, said at a ceremony held here Thursday.

As the country developed over the past decade, many occupations faded out while new ones appeared and thus the job list needed to be adjusted accordingly, Yin said.

The revision is expected to be finished in the first half of 2012.

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12/10/10

Permalink 11:42:30 pm, by dacare, 396 words, 732 views   English (US)
Categories: Candidates, Labor and Worker

Analysis of China's Job Market 2010

By Robert Parkinson

2010 has seen the rate of professional level hiring in China rapidly accelerate and those in the recruiting and HR community can now really feel the pressure to find the right candidates starting to mount: MNC/Fortune 500 and SME led expansion held back during the economic turbulence of 2009 has resumed and the number of companies hiring in substantial volumes (more than 100 heads) has dramatically increased as companies seek to make the most of the anticipated 5-7+ years of economic buoyancy in China.

So which industries are particularly active?

RMG Selection's clients in the luxury goods sector, for example, are hiring extremely aggressively: A well known French luxury brand has seen their factories in France stretched to capacity, largely to fulfill demand from Asia, and specifically, China. There are such high levels of disposable income, in Beijing for example (a city now with the highest number of billionaires in the world) that there is even list-price demand for display models of 'big ticket' items such as $500k+ cars. This spending has been fueled particularly after the recent changes in the regulations governing the sale and purchase of real-estate. RMG Selection has seen highly competitive hiring in the luxury goods sector both from overseas and with firms poaching talent from direct competitors and other businesses with suitably skilled talent in China. A luxury handbag maker recently hired a senior-commercial executive from a major hotel chain. This is an example of movements from one luxury segment to another because of the lack of available talent.

In the mid-market consumer goods segment, car makers can not keep pace with demand for new cars, with many of these firms investing heavily in further expansion. Key areas of HR growth include manufacturing-oriented hiring as well as support functions such as training and network development.

In the professional services sectors such as banking, finance, and the law many areas have seen very strong growth through 2010 too, particularly those supporting the large number of initial public offerings of Chinese companies in Hong Kong.

Sales & Marketing: as firms continue to boost investment in increased capacity and support, the pressure (particularly from the Global HQ) to see a rapid return on this investment is ever present. The competition for high quality Sales & Marketing professionals is therefore fierce in a market which is generally felt to lack sales & marketing talent and leadership.

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Permalink 11:38:12 pm, by dacare, 159 words, 618 views   English (US)
Categories: News of China, Comp, Salary & Benefit

China raises the compensation rate of work-related injury insurance

China has raised the compensation to be paid through work-related injury insurance during a regular meeting of the State Council chaired by Premier Wen Jiabao on Wednesday.

Regulation on Work-related Injury Insurance and the measures for the control of invoices were revised at the Wednesday meeting.

According to the revision, the compensation to families of those who die from work-related injuries has been raised to 20 times the per capita disposable annual income in urban areas. For work-related disability, the compensation rose by one to three months of salaries of the insured employee.

The revision has also widened applications of the regulation. Previously, only enterprises and small business employers were obliged to pay the premium, but now public institutions, social groups, non-profit grass-root organizations, foundations, law firms and accounting firms will also provide their employees with work-related injury insurance.

The revised measures on management of invoices calls for strict punishments to those engaged in producing, selling and using fake invoices.

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11/30/10

Permalink 02:39:05 am, by dacare, 1047 words, 1254 views   English (US)
Categories: Candidates, Labor and Worker, HR News Express

Japanese firms hire China's brightest

For Yukimasa Uchida, managing director of the Japanese arm of the Boston Consulting Group, a recent recruiting trip to sift the best and the brightest among China's top graduates was a revelation.

"It was like striking a gold mine," Uchida said of the job fair.

His company had attended the event expecting to make job offers to two or three students, but only if it could find people of the right quality.

"We have already made job offers to six students in Beijing and Shanghai together," he said. "We may hire some more."

He was not alone among Japanese recruiters in being impressed by the quality of applicants at the event, held in Beijing and Shanghai between Nov. 3-6.

The fair, organized by Recruit Co., a leading job placement agency in Japan, drew about 10,000 students from 39 universities, including the elite Peking and Tsinghua universities in the capital and Fudan University in Shanghai. Of these students, only about 1,000 college seniors were selected for interviews by the prospective Japanese employers, after a vocational aptitude test and preliminary interviews.

For successful applicants, the potential rewards on offer were mouthwatering. Although Japanese businesses have been hiring in China for years, the 22 companies at the fair were hiring people to career-track positions in their Japanese headquarters, rather than jobs at China-based affiliate companies.

That usually means much higher pay and chances for promotion. The companies included major names such as Sumitomo Mitsui Banking Corp., Mizuho Financial Group Inc., Kirin Brewery Co. and Konica Minolta Holdings Inc.

Like Uchida, Noriya Fukumoto, personnel manager of the toymaker Tomy Co., was bowled over by the caliber of the students he encountered.

"They are brilliant," Fukumoto said. "They have a clear vision of their career path and have a strong drive, compared with Japanese students."

Tomy offered jobs to three applicants, one more than it had anticipated. It plans to recruit foreigners to half of its new positions for college graduates in future.

Boston Consulting Group had been hiring between 10 and 20 graduates a year from Japanese colleges, including graduates of the University of Tokyo, Keio University and other big-name schools.

"Most job applicants were inclined to value stability," Uchida said. "There were fewer combative candidates, like soldiers of fortune."

In China, its recruiters were finding ambitious and go-getting personalities, he said, "the type we greatly favor."

The company did not make Japanese language skills a requirement for the recruits at the interview, taking the view that they can learn Japanese after getting a job offer. They all spoke English competently, although most of them had never been abroad.

Junichi Ito, the organizer of the fair at Recruit's Shanghai unit, said the large number of top-quality applicants had been attracted because Japanese businesses were offering positions on the payrolls of their Japan-based operations.

"Japanese affiliates in China have found it hard to secure top-class personnel because their pay is lower than that of U.S. and European counterparts," Ito said. Another obstacle has been a perception that local hires cannot reach the top echelons of corporate hierarchies.

The companies at the fair paid 1 million yen ($12,000) each to take part and were required to pay 1.1 million yen for each new recruit. In return, they got access to the cream of the more than 6 million people who graduate from Chinese colleges each year.

A 22-year-old senior who majors in Japanese at Fudan University said getting on the payroll of a Japanese company's head office was key.

"While a monthly salary at a Japanese affiliate in China is about 3,000 yuan (about 37,000 yen), the starting salary in Japan is about 200,000 yen. There is no comparison," she said.

The promise of working overseas and of greater responsibilities at head office made the positions on offer at the fair very attractive, she said. "Many of my classmates are going to work in the United States and Britain," she said. "I want to work abroad, too."

Xu Shuang, 21, a Japanese major at Tongji University in Shanghai who is studying international economy at Fudan University on weekends, said he had been interviewed by a Japanese bank. The enthusiasm of the Japanese for hiring foreigners was evident, he said. "Japan's corporate culture will be changing."

The targeting of Chinese talent by Japanese businesses is not limited to the graduate market. China's state-run Shanghai Foreign Service Co. and the Japan-based companies A-commerce Inc. and Global Power Co. formed a tie-up in October to target mid-career Chinese personnel.

They plan to hold a presentation for about 50 Japanese companies in Shanghai by the end of the year and have 500 Japanese organizations signed up within three years. Their service will include introducing Chinese personnel in white-collar jobs at foreign-affiliated companies in China to Japanese companies' main offices in Japan.

Yoshikazu Akiba of A-commerce said Chinese workers, who used to prefer working for U.S. and European companies, were showing more caution since the collapse of Lehman Brothers in autumn 2008.

"A Japanese company that emphasizes job security is greatly appreciated," Akiba said.

Meanwhile, Japanese companies wanting to expand their operations in China are viewing Chinese personnel as critical to the success of their marketing strategies.

"Sales pitches by Japanese staff in China have their limits," an official with a major food company said. "We would like talented Chinese personnel to acquire our corporate culture while working at our main office and then to take the charge of developing new markets in China."

One alleged drawback of hiring Chinese graduates is their penchant for switching jobs, but Uchida at Boston Consulting Group said this was not an issue.

"Many Japanese elite graduates who are not very ambitious types quit in two or three years," he said. "Whether or not Chinese staff stay on depends on their employer."

With the ratio of Japanese college seniors securing job offers hitting a record low 57.6 percent this year, the once remote prospect of competing with foreigners for prized positions at Japanese head offices is now a reality. Fukumoto at Tomy put it baldly: "If we employ more Chinese, that means we have fewer slots for Japanese."

For Uchida, that might not be a bad thing: 'If (recruitment of more foreign personnel) wakes Japanese students and employees to global competition, it would be a success," he said.

(This article was written by Atsushi Okudera and Tokuhiko Saito.)

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Permalink 02:35:27 am, by dacare, 711 words, 613 views   English (US)
Categories: Candidates, Labor and Worker

China's economic engine hit by rising labor shortage

The economy's twin engines, the Yangtze and Pearl river deltas, are spluttering due to a shortfall of migrant workers, especially in the service and manufacturing industries, amid soaring living costs and stagnant salaries.

"The labor shortage has hit customer services and the home service sectors since spring, and it is becoming more serious recently," said Chen Qian, the manager of a downtown employment agency in Shanghai.

"On average, up to 40 percent of job vacancies in these sectors have not been filled."

According to the latest statistics from the Shanghai Restaurants Association, the shortfall in waitresses currently stands at 20 percent and will double during the Spring Festival period, which falls in early February next year.

"Up to 80 percent of the 40,000 restaurants in the city have been regularly running recruitment notices this year as demand for labor has been much higher than supply," said a male staff member, surnamed Xia, from the association's marketing department.

In order to fill the huge shortage in the customer services sector, many restaurants have to employ part-time workers from universities or previously unpopular middle-aged workers from rural areas in other provinces.

"As more and more migrant workers were born in the 1990s, they are more picky on salaries and work conditions, and it is extremely difficult to find enough hands ahead of the Spring Festival," said Shen Xiaoyan, restaurant supervisor of South Beauty, on Ziyun Road in Shanghai.

Migrant workers make up 95 percent of the workforce of the company, which owns more than 10 restaurants in Shanghai. It has dozens of unfilled vacancies, she said.

Shen added that the restaurant had removed the age-limit requirement for job applicants so that it could employ middle-aged workers and college students.

The main reason for the severe labor shortage is the soaring cost of living coupled with stagnant income growth, experts said.

The average monthly salary for an employee in the service sector in Shanghai is about 1,300 yuan ($197), barely enough to cover food costs.

"That has prompted more migrant workers to choose to stay in their hometowns, where they earn a bit lower but also spend less on living costs," said Zhang Zhenning, a senior HR consultant based in Shanghai.

In South China's Pearl River Delta region, labor shortages have already affected companies' expansion plans.

"Some companies have to give up orders because of worker shortages," according to sources with the Guangdong provincial department of human resources.

The Christmas and New Year periods are usually the busiest for production in the Peal River Delta.

The worker shortfall has been estimated at more than 900,000, according to a recent survey by the province's human resources department.

The delta's major cities of Guangzhou, Shenzhen and Dongguan are experiencing a combined shortfall of about 550,000 workers, according to the survey.

Labor-intensive industries such as garments, shoes, toys, textiles, construction, sales and catering are facing an even worse situation in employing new staff, sources said.

Some factory owners in the Pearl River Delta have been forced to move their production centers to inland regions, where most migrant workers come from.

"I've already moved two main workshops from Dongguan to rural areas in Hunan and Guangdong provinces, as more migrant workers prefer staying in their hometowns to lower expenses," said Michele Wang, the owner of Dongguan Michele Lingerie Co Ltd.

To address the challenge, Guangdong provincial authorities have raised the minimum salary several times over the past months and lowered the threshold for migrant workers to get the local hukou, or household registration.

Chen Renjun, an official with the Haifu Job Center in Huizhou, a city in Guangdong, said the number of people seeking work at his center has dropped more than 20 percent in the past month from the same period last year.

The situation will be even worse for employers in the first quarter of 2011 as migrant workers leave the city for the lunar new year, he said.

Liu Kaiming, director of the Shenzhen-based Institute of Contemporary Observation, said the labor shortage will continue to exist in Guangdong for years.

"The labor shortage, however, will help coastal areas upgrade their industrial structure," Liu said.

Ni Jiasheng, 23, a migrant worker from Hunan province, said the labor shortage is actually good news for migrant workers.

"We can now have more choices (in seeking employers)," he said.

Source:China Daily

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11/22/10

Permalink 11:29:49 pm, by dacare, 338 words, 547 views   English (US)
Categories: Candidates, Labor and Worker

Hiring picture rosy in China

The hiring rate for professional or managerial level positions in China is second highest in the world behind Thailand, according to a report from a leading British staffing firm.

Of the 3,000 Chinese firms polled in October, 81 percent said they planned new hiring in the third quarter, up from 72 percent last quarter.

The November report, from London-based Antal International Ltd, revealed most new positions in China will be in banking, pharmaceutical, manufacturing and professional service sectors.

The company's October survey polled some 3,000 companies in China and over 9,000 worldwide, Li Zhe, a public relation's official with the company, said Tuesday.

China hiring is up on the nation's strong economic growth.

"The Chinese government has done a good job helping China rebound from the economic crisis, which has brought a real recovery for the Chinese economy," said James Darlington, the company's Asia chief.

China's huge domestic market is the driving force behind all the new hiring and also helps explain why many international companies, for example in the pharmaceutical sector, are now expanding their production bases and constructing research and development facilities in China, Antal's Darlington said.

The Asia-Pacific region, where 77 percent of organizations polled are hiring at the professional or managerial level, has been the most active hiring region in the world, according to the research.

Brazil has also reported hiring demand is up, with 70 percent of those polled planning to bring on new staff in the third quarter.

Globally, the sectors with the highest levels of recruitment are in healthcare, renewable energy, biotechnology, retail and professional services.

On a different note, the report also showed which industries are shedding employees, and in China the banking industry is axing the largest number of staff.

According to Antal International Ltd's Darlington, this is a positive sign for the industry as the upgrading of talent demonstrates the dynamics of the sector.

While the world financial crisis is still not over, Darlington concluded that a slow but steady recovery has been demonstrated in the professional and managerial jobs market since 2009 — especially in China.

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11/03/10

Permalink 06:14:06 am, by dacare, 1152 words, 676 views   English (US)
Categories: News of China, HR News Express

The Cost of Doing Business With China

By Carl Bialik

My print column this week examines the effect on U.S. jobs of the trade deficit with China. Does the massive imbalance between imports and exports cost the U.S. millions of jobs?

A frequently cited report says it has. Dozens of members of Congress signed a letter last month citing the report from the Economic Policy Institute, a Washington-based think tank, that found trade with China has cost the U.S. 2.4 million jobs.

However, some economists and China analysts point out several potential problems with the estimate, including that several countries have run up trade deficits during boom times as they invested in growth — including the U.S., where there has been essentially no correlation between unemployment and trade deficits, overall and with China. The numbers move seemingly in random ways compared to each other.

“By the logic of their argument, any country that runs a trade deficit should experience perpetual loss of jobs and wages, and any country that runs a surplus should experience perpetual gains in jobs and wages,” Arthur Kroeber, head of China research for the economic-research company GaveKal Dragonomics, wrote in an email. “Yet many developing countries run consistent current account deficits (for example South Korea during much of the 1970s and ’80s) and still experience high job and wage growth, while other countries run persistent surpluses yet have stagnant employment and wage growth (e.g. Germany and Japan).”

“Vigorous job creation and larger trade deficits are both hallmarks of strong economic growth,” said John Murphy, vice president of international affairs at the U.S. Chamber of Commerce, who has written critically about the EPI report. Scott Kennedy, a political scientist at Indiana University, said of the claims about China costing U.S. jobs, “China is just a scapegoat.”

Robert Scott, the senior international economist at EPI who produced the numbers, defends the study, pointing out that many factors contribute to economic growth rates, and it is possible for the same factor to drive down both the trade deficit and employment — such as the recession that ended last year in the U.S. That doesn’t mean that a trade deficit causes higher employment. Scott also notes that other studies, like his, have assumed that every dollar of a trade deficit displaces domestic production.

Scott Paul, executive director of the Alliance for American Manufacturing, which has posted Scott’s findings in an interactive map, said the assumption about displacement of domestic manufacturing is sensible. “There is an extraordinary amount of competition between U.S. production and Chinese production,” Paul said. “A lot of people like to assume that China is making things we don’t make here. That may be true in some areas, but it is not in others.”

Susan Houseman, a senior economist at the W.E. Upjohn Institute for Employment Research in Kalamazoo, Mich., said that Scott’s calculations make more sense than the claim occasionally made in U.S. economic circles — and, recently, by the White House — that increased productivity has backfired on U.S. manufacturing workers. Houseman has found that much of the supposed productivity gain can be chalked up to offshoring of some processes, meaning it was an artificial gain: If production is divided by U.S. workers, but others do some of the producing, U.S. workers would seem to be gaining productivity they really aren’t.

Houseman sees indirect signs that trade deficits may be driving down employment: “Job losses in manufacturing are almost perfectly correlated with growth in import penetration,” Houseman said. “It’s really very striking.”

Ray Fair, an economist at Yale University, prefers using his multicountry econometric model to estimate the potential effect of China’s allowing its currency to appreciate — which, he found earlier this year, would be negligible in terms of U.S. employment. “This is a complicated question, where one needs a complete multicountry model to analyze,” Fair said. He added, of his model, “It’s been extensively tested.” Of his finding, Fair added, “The trade deficit is ‘affected by many things, and it is not sensible to relate, say, the U.S. deficit with China to U.S. employment,’ Fair said.

Paul Krugman, an economist at Princeton University and columnist for the New York Times, wrote on his Times blog last year that his back-of-the-envelope calculation concludes China’s “artificial” trade surplus is costing 1.4 million jobs in the U.S. “If China were to end or reduce that artificial trade surplus, the extra demand would find its way to the advanced countries through a variety of channels, most of them not captured by the Fair model,” Krugman wrote in a statement provided by a New York Times spokeswoman.

Scott and Krugman criticize the assumptions Fair fed into his model. “In my view, there is no evidence that the effects of renminbi revaluation on prices, wealth, real wages or interest rates [in the U.S.] will be significant,” Scott said.

Krugman added, “When I looked at Ray Fair’s estimates, my conclusion was that he was running an exercise that didn’t at all correspond to the current situation.” For instance, Krugman points out that the Fed is running up against the so-called zero lower bound that may keep it from raising interest rates in response to a Chinese currency revaluation.

One thing all three of these methods have in common is that they all seek to describe the relationship between trade and jobs rigorously, with some kind of model or formula. This improves on other efforts that are based on extrapolating from individual cases of companies closing factories and moving their operations offshore, said Catherine L. Mann, an economist at Brandeis University’s business school. She credited the EPI estimate for its “transparent methodology,” but she said it is “one where the underpinning assumptions are not valid.”

EPI’s Scott “made a heroic effort given the enormous data holes” in U.S. statistics about trade, such as which industries imports are being used in, and the price of imports per unit, said Michael Mandel, a senior fellow at the Progressive Policy Institute, a moderate Democratic think tank. “I can’t criticize him for the effort he made. He’s answering questions people want to answer.”

Alan Tonelson, a research fellow at the U.S. Business and Industry Council, an advocacy group for small businesses, said more government-collected data would help shed light on trade’s impact on jobs. “I’d like every multinational company to report, what do they export, what do they import — and what do they source in the U.S., what do they source overseas,” said Tonelson, who wrote about the trade deficit in a New York Times op-ed last month.

Further reading: The conservative Cato Institute and American Enterprise Institute also have criticized the EPI report. The Congressional Research Service analyzed the economic impact of China’s currency intervention in a report earlier this month.

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Permalink 06:11:30 am, by dacare, 752 words, 583 views   English (US)
Categories: Technical, IT Recruiting

Big IT moves more work, jobs to China

BANGALORE: As the Chinese pitter-patter into IT services turns into a loud clatter, Indian majors are pushing hard to grab a bigger slice of that market. TCS, Infosys and Wipro plan to shift at least 10% of their new outsourcing projects to Chinese cities of Dalian and Chengdu, for the first time since India’s software exports industry took note of the Chinese threat a decade ago.

Top customers like GE and General Motors are demanding that Indian vendors deliver some services from locations outside India because of geo-political risks and location redundancy. India’s tech behemoths are also realising that by creating local jobs in China, they can gain a bigger share of the Dragonland’s $10-billion-plus outsourcing market.

While TCS plans to increase its existing 1,200-employee base by over five times in the next few years, Infosys will invest $100 million to build a 4,000-professional-strong team. Wipro, the third-biggest software exporter, will have around 1,000 professionals in a year’s time.

“A clear inflection point for China has been clients’ acceptance over the last few months. And despite some risk perceptions, we are selling Infosys China, and not just China, as a new location to customers,” says SD Shibulal, chief operating officer, Infosys. “Over 80% of the work we do in China is for our global customers,” he added. Testing of software applications, engineering design for automobile and consumer durable firms are among projects set to get increasingly shipped to China.

Clearly, China is no longer a pure rival for India Outsourcing Inc. Instead, it is increasingly helping Indian technology vendors position themselves better by offering a choice of delivery centres beyond India to customers. “It’s no more about being rivals,” says Girija Pande, chairman of TCS’ Asia Pacific operations. “We are now seeing more load that can be sent to China. In fact, we are already doing both IT and BPO projects,” added Pande.

Rising wages, attrition rates and increasing scarcity of employable labour are among the top reasons for this shift in the way Indian IT industry has been looking at China. A September report by Goldman Sachs says Infosys’ revenues from China could top $200 million in three years, from $100 million today. TCS’ China revenues are expected to reach $250 million from almost $100 million currently, the report added.

While bidding for global outsourcing contracts, Indian vendors are beginning to break up a project into pure application development and software testing components. Of these, “non customer-facing portions such as testing is increasingly going to China,” says Amneet Singh, vice-president, global sourcing at consultant Everest Group.

Some clients are also concerned about growing geo-political risks in India because of terrorist threats and delicate equations with neighbours such as Pakistan and China. “We received calls from several customers after the 26/11 Mumbai attacks. Since then, we have noticed China come up more frequently in our discussions," said a CEO at one of the top Indian tech firms that has a development centre in Mumbai.

Another inflection point for China’s growing outsourcing industry is the rise of local firms like HiSoft, NeuSoft and VanceInfo. Some like HiSoft are looking at success stories of Infosys and Cognizant and globalising their operations. HiSoft, for one, got listed on Nasdaq in June and has already started getting customers like GE, UBS and Citibank to offshore work to China.

“There’s a growing need from CIOs to diversify and China is positioned as an ideal complement to India,” says Ross Warner, a spokesman for HiSoft, based out of Beijing. The company started working with GE in Japan eight years ago. “It’s no secret that we look up to their (Infosys) journey and are now focussing to replicate some of that,” adds Warner.

“Moreover, MNCs that aspire to sell into China are often requested by the government to purchase from China. This is a factor motivating MNCs like GE, 3M and Nokia to procure to China,” says James Friedman, analyst at SIG.

However, even as China is set to become a $30-billion outsourcing powerhouse in five years, there are hurdles it needs to overcome. While the country produces more engineers than India, lack of experience in handling large, complex projects remains a worry. Plus, China’s wage rates are a higher than India’s because employers have to spend on social security.

“This is a common mistake which is made because in China, one would have to pay 50% tax to the government plus a premium of 10-15% if the person can speak English,” says Frances Karamouzis, research veep at Gartner.

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10/18/10

Permalink 05:04:34 pm, by dacare, 354 words, 663 views   English (US)
Categories: HR News Express

Foreign companies increasing jobs in U.S., Europe

Companies in growing markets like China and India are adding more jobs in North America and Europe, a shift from the usual hiring patterns, says a new study from IBM.

Out today, IBM's new "Working Beyond Borders" study found that growth in jobs is now moving two ways--from emerging economies tapping into more mature markets as well as the more traditional reverse pattern.

The reason for the trend? As more companies expand globally, they're hiring people with the creativity, flexibility, and speed needed to help their expansion, prompting them to increase their staffing in North America, Western Europe, and other mature markets.

Specifically, IBM found that 45 percent of companies in India plan to increase their headcount in North America, while 44 percent will expand in Western Europe. And 33 percent of businesses in China are looking to add staff in North America, while 14 percent will boost headcount in Western Europe.

"The silver lining of globalization is that the shift toward expansion will require companies to redirect their workforce to locations that provide the greatest opportunities, not just the lowest costs, and at the same time, re-imagine their management strategies to reflect an increasingly dynamic workforce," Denis Brousseau, vice president of organization and people for IBM Global Business Services, said in a statement.

Despite this recent trend, much of the increase in hiring over the next three years will still happen in emerging growth regions, such as China, India, Eastern Europe, and Latin America. Whichever direction it goes, this new global focus on job growth will force companies to rethink how they attract and manage workers from around the world, according to IBM.
(Credit: IBM)

Beyond the shift in hiring trends, companies are finding that employees with certain "soft" skills, such as social networking and collaboration, can benefit their bottom line. The study showed that companies that outperform financially are 57 percent more likely than underperformers to use social networking and collaboration tools to help their global staff work together more effectively.
To compile its results, IBM interviewed more than 700 chief human resource officers and other senior executives, almost all of them face-to-face, across 61 countries and 32 different industries.

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Permalink 05:02:23 pm, by dacare, 609 words, 563 views   English (US)
Categories: Candidates, Labor and Worker

Concern over China’s ‘job-hoppers’

Fund managers in China are switching jobs too frequently. That has led to concerns about the asset management companies’ ability to retain key portfolio personnel and ultimately deliver performance.

Around 148 fund managers have switched or quit their jobs so far this year compared with 85 people in the same period last year, according to Wind Info, a Shanghai-based financial data provider.

Wind Info says only three fund managers in China have more than 10 years of experience in the same company.

“In the US, the average working life for a fund manager is 4.8 to 4.9 years. In China, it is only 1.68 years,” says Vivian Lee, a fund researcher of Galaxy Securities in Beijing.

More and more fund managers are moving from public to private funds. One recent example is Mo Tai Shan. Last week, the ex-general manager of the Bank of Communications Schroder Fund Management moved to Chongyang Investment Management, the largest private hedge fund in China.

Public funds in China target retail investors in the same way that mutual funds do elsewhere. Private funds, meanwhile, target wealthy or institutional investors with a higher investment and risk threshold.

Fund managers are in short supply, so it is common for one manager to run more than one fund. For instance, Lu Zhigang, the former fund manager of Yin Hua Fund Management, controlled three fund products before he left the company this month.

“Here is the regular pattern: fund companies first post recruitment announcements, then the fund managers’ leaving announcements are likely to follow,” says a source from the marketing department of a fund house in Shanghai.

There are several reasons for the high turnover of fund managers in China.

First, the unsophisticated assessment system and poor incentive structure of public funds has made it challenging to retain managers. Many fund houses use the ranking of funds as a big indicator to judge a manager’s performance. However, this is not in line with the concept of “value investment” they put forward. Some fund companies even attempt to draw investors’ attention to new managers in the hope this will increase sales.

“Everything is based on the fund rankings here,” says a source from a fund house in Shanghai. “Investors select funds by their rankings and fund houses judge your [fund manager] performance also by the rankings. We do need a benchmark for comparing the performance of different funds, not just merely relying on the rate of return.”

Second, public fund managers have less investment flexibility, being subject to restrictions such as position limits and on asset allocation. “Fund managers want to be free from these restrictions,” says Jonathan Ha, director for advisory service at Shanghai-based consulting firm Z-Ben Advisors. He adds that good incentives and compensation from private fund houses are attractive to fund managers.

Third, poor portfolio performance forces fund managers to resign. According to Wind Info, by the end of May this year, the average growth rate of the 350 equities funds that it tracks in China was -12.72 per cent, with 54 funds down more than 20 per cent and only 12 funds turning in a profit.

To solve the problem of this high turnover, more and more fund companies tend to apply a “two fund manager” system, which means having one “old” or existing manager plus a new manager. This is also what The China Securities Regulatory Commission expects funds to do, according to analysts.

Wen Qun, an analyst at TX Investment Consulting in Beijing, says the problem will not be solved in the short term. “The fund industry in China has been developing quickly in recent years. It is inevitable the fund houses will face staff shortages,” says Mr Wen.

By Glori Ye

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09/24/10

Permalink 09:15:50 am, by dacare, 1161 words, 849 views   English (US)
Categories: Candidates, Labor and Worker

China Imports Pharmaceutical Professionals

By Connie Johnson Hambley

Bingbing Feng and Chip Carnathan have a lot in common. Both men are pharmaceutical professionals with doctorates from U.S. universities, multiple years of experience with American biotechnology and pharmaceutical companies, and families in the U.S. Each thinks his best career move would be to work in China next.

The pharmaceutical and drug-development business is changing globally, with unavoidable effects on the lives of professionals. The past three years have seen big pharmaceutical companies laying off tens of thousands of highly educated, trained scientists and the U.S. is not creating jobs fast enough to absorb the talent. In tandem with this decline has been an intense push by China to create companies and jobs in the life science sector. As more work is outsourced to China, less is performed in the U.S. Being jobless in the U.S. for a year or more is not uncommon, so China is poised to be the largest beneficiary of a global talent shift.

In 2007 the report "Globalization of Innovation: Pharmaceuticals," co-authored by Vivek Wadhwa, a senior research associate at Harvard Law School, noted that 5 of the world's top 10 pharmaceutical companies were based in the U.S., although the country's standing was threatened. "Cost pressures, the need to tap global talent, and growth opportunities in emerging markets have prompted Western pharmaceutical companies to shift substantial manufacturing and clinical-trial work to India and China," the report stated. "Increasingly these companies are turning to Asia to broaden the range of new drug candidates."

The intellectual processes of innovation and creativity, often called scientific rigor, hold the key to pharmaceutical success. After scientists present research to peers and superiors, a dynamic dialogue questions and critiques the work, requiring the scientists to push back with rebuttals. Such vigorous sessions are the hallmark of Western research and development culture. Scientists trained to "push back" are in demand -- just not so much in the U.S. According to the National Science Board's Science and Engineering Indicators, U.S. institutions granted 41,000 science and engineering PhDs in 2007, a third of them to foreign students. The SEI report notes that "recent growth in R&D expenditures has been most dramatic in China, averaging just above 19 percent annually in inflation-adjusted dollars over the past decade," compared with just a 3.3 percent increase in the U.S.

People who were born abroad, obtain educational and work experience in the U.S., and then go back to their homelands are referred to as "returnees." "Availability of talent and human capital continues to be a significant concern" to expanding companies, stated the globalization report. While Indian and Chinese returnees are "available today in greater numbers than in years past, many [local] pharmaceutical employees have limited experience with drug-discovery culture."

"In China it's harder for people to express themselves voluntarily. They are trained from elementary school to compete for No. 1 so that no one can beat you," says Mei-Shu Shih, a returnee who serves as chief scientific officer of PharmaLegacy Laboratories, a contract research organization based in Shanghai. "In the United States the mentality in the corporations is to push for scientists to be team players." Shih says that once team spirit is cultivated in a group of native Chinese scientists, they open up and become "quite brilliant." Still, he notes, a cultural reticence to speak up can be difficult to overcome.
The push for Western-trained scientists has begun. Cliff Hegan, managing director of Fitco-Consulting, an executive recruiting firm based in Shanghai and Singapore, says that "Western research-and-discovery technology is more scientifically advanced. Chinese-trained scientists are more application-centered and therefore less technically advanced and innovative in their thinking." Pharmaceutical companies want U.S. trained managers because of their entrepreneurial spirit and creative problem solving skills, in contrast to the more linear, pragmatic, approach of their Asian counterparts. The cultural divide is creating opportunities.

Language is typically not a barrier for a Western scientist seeking to enter the Chinese job market, especially at senior levels. Companies are often willing to provide Mandarin tutors to ease the transition. And because most senior and middle managers in China received essential scientific training in the U.S., they tend to speak English, with young PhDs surprisingly fluent. "Most scientists are surprised when they walk into a lab in Beijing and sit down and interact with a team. Often they see former colleagues and it feels quite like a biotech in Cambridge," where easily 25 percent of the scientists are Chinese, says John Oyler, a serial entrepreneur and graduate of MIT and Stanford who is starting a cancer research company in Beijing. "It is early here and there is still room for many more talented, Western-trained, research-and-discovery professionals in Beijing."

Oyler moved to Beijing in 2005 to start BioDuro, a contract research organization that was sold to Pharmaceutical Product Development, a leading global research contractor focused on drug discovery, development, and life-cycle-management services in 2009. "Most people thought I was crazy to move to China. But the move was obvious," he said. "There are top academic institutions here -- unequalled by any city other than Boston -- talented and hardworking professionals with great minds, and deep financial support from the Beijing government." Oyler says it was easy to create a vibrant life because of the energy and close-knit nature of the industry in China.

Some companies prefer candidates fluent in both languages and familiar with both cultures. Bingbing Feng exemplifies this point. "A returnee brings knowledge and experience that a local Chinese does not," he says. Born and raised in Beijing, Feng moved to the U.S. at 22 to continue his scientific education. He received his doctorate from Purdue in 1997 and then worked in Pennsylvania for GlaxoSmithKline (GSK). "The expectations are much higher for a returnee," he said. "We are expected to bring more to our job and deliver more than a local Chinese." Open to working in the U.S. or China, Feng says China offers "more opportunities as it's building up the industry."

Dr. Jisong Cui, director at Merck Research Laboratories and president of the Sino-American Pharmaceutical Professionals Assn., admits that heritage is coaxing some of her friends back to Asia. Most return, she says, because they consider the career options to be better in China. Since her organization was created in 1993, in part to promote scientific exchange between the U.S. and China, SAPA has grown to more than 4,000 members. Cui estimates that 1,000 U.S.-based members have already returned to China. Indeed, Merck is moving its external research and clinical services work to China to take advantage of current trends.

Carnathan, who has worked in drug development and global regulatory affairs, says he would tell his sons to "jump at the chance to work in China" and would himself follow that advice if he were to receive an offer there. "China is the next wave of business innovation and growth and to be there at the beginning of the upswing is even better," Carnathan says.

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09/17/10

Permalink 03:32:21 am, by dacare, 255 words, 864 views   English (US)
Categories: Technical, IT Recruiting, HR News Express

Innovation Shifted To China During The Downturn: U.N. Report

It's an unfortunate fact of a downturn: declining corporate cash flows and slumping confidence usually induce firms to file fewer patents and slash spending on research and development.

Apparently, China didn't get the memo.

As much of the world invested fewer resources in innovation during the global downturn, Chinese firms spent more on innovative efforts, such as R&D and patent and trademark applications, according to a report by a UN agency.

On Wednesday, the World Intellectual Property Organization (WIPO) said that patent applications in China jumped 18.2 percent in 2008 and another 8.5 percent in 2009. Over the same period, ZTE, China's second-largest telecom equipment maker, boosted R&D spending 44.8 percent.

In the U.S., patent filings fell 11.7 percent in 2008 and 2009, while companies like General Motors, Hewlett Packard and Microsoft slashed their R&D budget by more than 20 percent from 2008 to 2009. In Europe and Japan new patent filings dropped 7.9 and 10.8 percent, respectively, in 2009.

"China is moving up the value chain and rapidly increasing exports based on domestic innovation, so inevitably it is filing an ever-growing number of patent applications," WIPO's Chief told a news conference as the agency announced its latest findings.

China decided years back that it no longer wants to be the sweatshop of the world. The country's recent investments in innovation at a time when loans and venture capital were sparse reflect its ambitions to become an innovation-oriented nation by 2020.

China's penchant for patents may partly explain why it's shifting away from low-cost manufacturing, as the New York Times reports this morning.

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Permalink 03:30:07 am, by dacare, 197 words, 1078 views   English (US)
Categories: Investing in China

Dell May Spend More Than $100 Billion to Widen China Operations

Sept. 16 (Bloomberg) -- Dell Inc. plans to spend more than $100 billion over 10 years to broaden operations in China and capture more sales in the world’s second-largest economy.

The company will open a second China operations center next year in Chengdu, adding production, sales and support in the western part of the country. It will also add an office and as many as 500 workers at its existing Xiamen site, the Round Rock, Texas-based company said in a statement.

Last year’s sales increased in the Asia-Pacific region for Dell at a faster pace than other parts of the world. Still, the company got only 12 percent in its business revenue last year from Asia-Pacific, according to data compiled by Bloomberg.

The manufacturing and customer support center in Chengdu will begin operations in 2011 and may eventually employ 3,000 people, the company said. It didn’t elaborate on how it intends to spend the $100 billion.

Dell fell 3 cents to $12.27 at 12:08 p.m. in Nasdaq Stock Market trading. The shares had fallen 14 percent this year before today.

Dell said it’s the No. 2 supplier of PCs in China and that it posted a 52 percent revenue increase in its most recent fiscal quarter.

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09/08/10

Permalink 02:10:10 pm, by dacare, 196 words, 515 views   English (US)
Categories: Banking & Financial Services

Citigroup to Hire up to 7,500 in China: Report

NEW YORK (Reuters) - Citigroup Inc plans to almost triple its workforce in China by hiring up to 7,500 people in the next three years, an executive told Bloomberg in an interview published on Tuesday.

Citigroup, which has 4,500 employees in China, will hire more in that country that in any other Asia-Pacific market, according to Bloomberg's interview with Stephen Bird, Citigroup's co-chief executive officer for the region.

The hiring plans will support Citigroup's efforts to expand in the region and compete with HSBC Holdings PLC and Standard Chartered PLC .

Bird told Reuters last week that Citigroup planned to open two branches a month on average in China for the foreseeable future, the maximum allowed by regulators.

The company's strategy "is progressively more weighted to emerging markets," Bird told Reuters. "Greater China is the future."

Citigroup plans to double its number of branches in Hong Kong to 50 by the end of the year and increase the number of branches on the mainland to 38 by the end of the year, from 29 currently.

A Citigroup spokesman did not immediately respond to a request for comment on Tuesday. The company's shares were trading up less than one percent, at $3.70, by mid-afternoon.

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Permalink 02:09:11 pm, by dacare, 780 words, 839 views   English (US)
Categories: Candidates, Labor and Worker, HR News Express

Strongest hiring plans forecast by employers in China, Taiwan, India and Brazil; U.S. employers report cautiously optimistic job prospects

According to the Manpower Employment Outlook Survey results released today by Manpower Inc. (NYSE: MAN), hiring expectations in emerging markets -- China, Taiwan, India and Brazil -- continue to outpace the rest of the world. Meanwhile, employer hiring confidence in European countries is mixed with positive job prospects reported in Germany for the quarter ahead. And although hiring plans in the U.S. are stronger compared to one year ago, the cautiously optimistic hiring pace reported for the next three months indicates economic concerns continue to weigh on the minds of American employers.

"We're seeing a multi-speed recovery in the global labor market with talent demand in high gear in many of the emerging markets we survey. Other markets, such as the U.S. and Japan, are still moving forward but can't seem to get out of first gear," said Jeffrey A. Joerres, Chairman and CEO of Manpower Inc. "Employers in many markets continue to struggle with inconsistent demand for their products and services making it difficult to anticipate staff needs. As a result, a flexible workforce strategy will be critical during this point of the recovery cycle."

The Manpower data shows employers in 28 of 36 countries and territories expect positive hiring activity in the fourth quarter, with those in five reporting negative hiring expectations -- an improvement in comparison to the 12 countries reporting negative outlooks 12 months ago. Globally, employers in 32 countries and territories are reporting stronger year-over-year outlooks, with those in China, Taiwan, India and Brazil indicating the strongest fourth-quarter job prospects. Notably, forecasts from Chinese, Swiss and Taiwanese employers are the most optimistic since Manpower began polling there. The weakest hiring plans for the upcoming quarter are reported in Greece, Italy, the Czech Republic, Spain and Ireland.

Across the Asia Pacific region, year-over-year forecasts improve in each of the eight countries and territories surveyed, with forecasts improving from the third quarter in three. Hiring plans in the region are strongest in China, Taiwan and India. Meanwhile, employer hiring plans in Japan are the most conservative in the region, but they are considerably stronger compared to one year ago.

"Continued strong domestic growth is fueling stronger job prospects in all industry sectors in China and Taiwan from three months ago. As a result, the talent wars are waging again as companies struggle to retain the talent they need," said Joerres. "In contrast, Indian employers expect to ease the pace of hiring slightly. Interestingly, our data reveals a bright spot in the Japanese Manufacturing sector, where hiring expectations have improved for six consecutive quarters and are the strongest in two years."

Similar to the third quarter, fourth-quarter hiring expectations remain mixed in the 18 countries surveyed in the Europe, Middle East and Africa (EMEA) region. Employers are reporting positive Net Employment Outlooks in 10 countries, but those in 11 expect the pace of hiring to soften from three months ago. However, the year-over-year comparison is more positive with improved Outlooks reported in 15 of 18 countries. Hiring activity in the region is expected to be strongest in Switzerland, Norway and Poland and weakest in Greece and Italy.

"European labor markets have yet to gain real traction due in part to the uncertainty in Greece and Italy. But we are seeing notable improvements across the region in the Finance and Business Services sector, where year-over-year forecasts improve in 15 countries, most notably in Switzerland, Germany and Norway," said Joerres. "The German labor market continues to be resilient; however lack of talent, especially engineers, healthcare professionals and sales staff, is becoming a real issue for employers in many sectors."

Across the 10 countries surveyed in the Americas region, employers anticipate varying degrees of positive hiring activity. Outlooks improve in six countries from three months ago, but improve in all countries when year-over-year comparisons are made. Regional hiring plans are again strongest in Brazil, Peru and Costa Rica and weakest in the U.S., where hiring plans are relatively stable from three months ago but are notably stronger than those reported one year ago.

"Hiring confidence has returned to the majority of the region with employers in Brazil, Canada, Mexico, Panama and Colombia reporting their most optimistic plans of the year," said Joerres. "Brazilian employers in the Services sector continue to create jobs at a rapid pace and in many industry sectors wage arbitrage is becoming an issue for both professional and skilled trades roles. Meanwhile, in the U.S. most of the hiring that was done in the third quarter will be absorbed, yet negative outlooks are reported for just two sectors -- Construction and Government. U.S. job seekers can expect to find the most opportunities in the Wholesale & Retail Trade and Mining sectors in the quarter ahead."

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08/28/10

Permalink 05:10:44 am, by dacare, 657 words, 941 views   English (US)
Categories: Candidates, Labor and Worker

Expatriates Working in China with Criminal Records

By Chris Devonshire-Ellis and Richard Hoffmann

Aug. 27 – A recurring theme over the past two years for expatriates wanting to be based in China is the subject of possessing a criminal record. These may of course be for relatively minor offenses; however China’s policy in this regard can be strict.

A standard requirement (although it is not always requested) for expatriates looking to work in China is for a “Certificate of No Criminal Record” to be provided when applying for a work permit. This is a particularly strict requirement in Shenzhen and Guangzhou, though less so in Beijing and Tianjin. Providing this certificate means having to go to your local police station in your home country and obtaining one. Different countries have different systems for providing such a document, and some smaller countries can even issue this from their embassy in Beijing. For most expatriates seeking employment in China, however, this needs to be obtained from their local police authority in their home country.

The same also applies to having a criminal record in China. However, criminal records are not usually recorded in China on a national basis. Therefore, it may be possible if in possession of a criminal record in China – if the authorities have not already deported you – to apply successfully for such a work permit in a different region of China. The best advice is of course to not commit criminal acts in China. You risk your job, simple as that.

A little known aspect of China’s laws also criminalizes debts of over RMB10,000. That means that if a foreign invested company has become insolvent or bankrupt, unless the debts, including all staff obligations, taxes due and so on are met by the parent company, expatriates simply walking away from the situation risk being found guilty in absentia. This is of particular pertinence to the chief representative or legally responsible person. In these positions, the title means exactly what it says – responsible for the activities of the company, including its debts.

People can be incarcerated for long periods over debts incurred by their company in China. Returning to China knowing that you have such a background then is unwise. Expatriates’ personal data is now shared on a national basis, and even if one manages to apply for a work permit in a different city, a sharp-eyed clerk somewhere may mean a knock on the door sometime later.

The lesson for all expatriates in China is to pay your debts, and keep out of trouble. You may not get a second chance.

Foreign-invested companies in China facing significant problems in which closure becomes necessary must take the appropriate actions when doing so. Leaving China with unauthorized debt places you at significant future risk should you wish to later re-enter the China market. It is far better to negotiate with creditors than face prosecution. Most of the obligations under such circumstances can be dealt with through negotiation, and require the provision for creditors meetings. Although unpleasant, these do allow for the company to state its position firmly, abide by the rules, and decrease the amount of outstanding debt. While creditors can usually be dealt with, staff and any outstanding tax matters do need to be settled. The procedure for closure also requires an audit.

We have recently provided update advice and the procedural structure on this subject, please see the China Briefing issue “Closing Representative Offices and Liquidating Businesses in China” for more information.

Chris Devonshire-Ellis is the principal of Dezan Shira & Associates. Richard Hoffmann is a senior legal associate with the firm and is responsible for issues relating to expatriate employment and human resource legal and administrative matters in China. If you have queries about obtaining work permits in China, please contact Richard at legal@dezshira.com. Businesses requiring advice on liquidation procedures and related matters may contact Sabrina Zhang, national tax partner for the firm, in strict confidence at tax@dezshira.com.

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Permalink 05:07:27 am, by dacare, 102 words, 455 views   English (US)
Categories: Announcements, Candidates, Labor and Worker

China Bans Foreign Firms Hiring Labors in China to Work Abroad

By Bloomberg News

Aug. 23 (Bloomberg) -- China will crack down on foreign companies directly recruiting and hiring workers in China to do manual labor overseas, the Ministry of Commerce and the Ministry of Foreign Affairs said in a joint statement posted to the commerce ministry’s website today.

The government will also stop Chinese companies from sending labors from the nation to work overseas for foreign individuals, according to the statement. China will also strictly control the sending of Chinese labors to work in overseas nations where conditioners are worse than those domestically and where risks are high, according to the statement.

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07/30/10

Permalink 08:37:30 pm, by dacare, 152 words, 606 views   English (US)
Categories: Banking & Financial Services

China Sovereign Wealth Fund Starts New Round of Global Hiring With 64 Jobs

China Investment Corp., the nation’s sovereign wealth fund, is starting a new round of international hiring to meet its “business development needs,” according to a statement today on its website.

The company is offering 64 positions from asset allocation to private equity investment, with jobs posted on its website.

The $300 billion fund will seek a “more flexible” investment strategy this year as global markets didn’t show a clear trend, Executive Vice President Jesse Wang told reporters in Beijing in March. The company earlier this month sold 5.1 million shares in Morgan Stanley after the stock rallied.

CIC is likely to report a return on its global portfolio “well above 10 percent” for 2009, according to Rachel Ziemba, London-based senior analyst at Roubini Global Economics, after it accelerated investments in commodity-related companies.

CIC in June, 2009, provided vacancies for 33 categories in 13 departments. The company had about 200 employees, according to its 2008 annual report released Aug. 7 last year.

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Permalink 08:36:08 pm, by dacare, 206 words, 524 views   English (US)
Categories: Technical, IT Recruiting

Google starts large-scale recruitment in China

Google has started a large-scale recruitment campaign on the Chinese mainland. Google's recruitment ad showed that the firm is seeking employees covering 26 positions in research and development, products, sales, operation, IT, human resources and marketing.

According to the notice posted, most jobs would be in Shanghai and Beijing but it did not elaborate the quantity of employees the firm is to recruit.

Ever since Google announced its exit from the Chinese mainland this march, many employees of the company have been contacted by domestic internet firms on the purpose of being hired.

The company now sees itself without a few senior officials. Former vice director of Google China R&D Center, Wang Jin, Song Zhongjie, Google China's general manager for sales, and Liu Jun, assistant dean, who was in charge of web search development in Google China Project Research institute all have left their positions.

According to Iresearch, Google's market share in the second quarter declined to 27.3 percent, while its counterpart, Baidu, boasted 70.8 percent. Some of the company's agents like Tianya, also cut off relations with Google.

While industry analysts were worried about the company's development on the mainland, Yu said that its current situation is temporary, and its market grip will be gradually regained.

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Permalink 08:34:34 pm, by dacare, 181 words, 633 views   English (US)
Categories: Pharma, Biotech & Healthcare

Charles River Labs calls off China WuXi Pharmatech buy

BEIJING — Charles River Laboratories International Inc., a U.S. medical research equipment and services company, said Friday it is canceling a $1.6 billion acquisition of WuXi PharmaTech after shareholder objections.

Charles River's announcement of the planned purchase in April came amid a rush by foreign drug companies to expand research and development operations in China.

But Charles River shareholders objected to the deal's price and strategic value.

"Given their concerns about the proposed transaction, and our commitment not to proceed without their support, we have decided that terminating the transaction is the appropriate action to take," said Charles River's chairman, James C. Foster, in a statement.

The company, based in Wilmington, Massachusetts, said it would pay WuXi PharmaTech a $30 million break fee.

The deal would have given Charles River drug-testing facilities in the Chinese cities of Shanghai, Suzhou and Tianjin.

Investment firm Jana Partners LLC, which owns a little more than 7 percent of Charles River's stock, urged shareholders to reject the takeover.

Jana Partners objected to the price and pointed to what it called Charles River's "poor track record" of integrating acquisitions.

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07/28/10

Permalink 05:12:25 pm, by dacare, 443 words, 1040 views   English (US)
Categories: HR News Express

Zhaopin top dramatic adjustments removal of both forces with each other

Sina Technology News on July 26 morning news, human resources service providers Zhaopin (????) staged in one day twice removed. And after this dramatic is the removal of an internal message that CTO, executive vice president of duties, and hours later another e-mail letters from the Board of Directors announced the recall inspired CEO, COO and other executives.

Last Friday afternoon, a hair to Zhaopin name of a company's e-mail circulated to all staff, announced the lifting of remaining with the CTO with Tong Luo Yihua, vice president, technical director Zhang spring all the duties, be expelled from the company, but did not give specific reasons. In addition, CFO Guo Jianmin Zhaopin announced the company for personal reasons resigned from office.

Announced four executives left off the outside world caused great concern,but more dramatic is the e-mail sent just a few hours after Zhaopin staff has received a letter from the Board of Directors authorized release message, the content is said Zhao Peng CEO, COO Lei Weiming other four other executives leave.

When the first message sent overseas, the SAN has been linked Zhaopin PR, relevant personnel to confirm the authenticity of the message. Then the said company executives and board of directors has been in a meeting, and said second message does not make a comment. But the source said a decision once the company's internal discussions, the truth will be announced the first time.

Some analysts believe that the message reflects the two main factions to CEO Zhao Peng and Tong, as well as CTO mainly use the contradiction between the factions, which may be the board of directors and investors support. This contradiction caused by a large one of the reasons is the founder of Zhaopin team have long faded, but in the case of foreign-controlled management of easy confusion.

fact this is not the first major personnel changes. Last year in August before the announcement Zhaopin CEO Liu Hao resign from his post, former COO Zhao Peng took over as the new CEO. At that time the industry’s view is that consecutive losses to investors have lost confidence.

Investment in Zhaopin was from Australia and New Zealand’s largest recruitment site SEEK and Australian investment bank Macquarie 110 million U.S. dollars of investment, while the cost of the investment and further diluted share Zhaopin, After the completion of investment now, SEEK, Macquarie and Zhaopin other shareholders structure is 4:3:3.

public information, to December 31, 2008 SEEK shares in Zhaopin close to 56.2%, meaning that SEEK has Zhaopin own initiative. According to Zhao Peng said earlier this year interviewed by the media data, Zhaopin has been achieved in the fourth quarter of profitability. (Tracy)

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07/07/10

Permalink 02:04:06 am, by dacare, 267 words, 444 views   English (US)
Categories: Candidates, Labor and Worker

Majority of Taiwan's new graduates would like to work in China: poll

Nearly 73 percent of Taiwan's young men and women who graduated from universities or colleges this summer would not mind crossing the Taiwan Strait to work in China, the 1111 job bank quoted the results of a recent poll as indicating Tuesday.

Graduates who majored in business management, finance and economics topped the list of China-bound aspirants, the poll found.

Shanghai is the top choice in terms of location, with 73.08 percent of the new graduates who responded to the poll saying they would prefer to work there, followed by Hong Kong (46.15 percent) , Beijing (42.79 percent) , Guangzhou (21.15 percent) and Suzhou-Hangzhou (20.19 percent), according to the poll.

Work in the information technology sector is the most coveted job of the respondents, followed by trade and goods and services distribution (30.29 percent) , and industrial and business services (23.08 percent), the results show.

Some 63.46 percent of the respondents cited China "promising to become the world's leading market" as the major reason for their willingness to work there, while 62.5 percent said they want to work in China to expand their experience and 44.23 percent said working in China would help broaden their global perspective, according to the poll.

A total of 80.29 percent of the first-time job seekers who do not mind working in China said they expect a higher salary working in China than they could earn in Taiwan, at roughly NT$43,600 (US$1,364) per month, according to the poll.

The 1111 job bank conducted the survey between June 22 and July 5. It received 1,174 valid samples and had a confidence level of 95 percent and a margin of error of plus or minus 2.86 percentage points. (By Opal Cheng and Deborah Kuo) ENDITEM/J

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Permalink 02:02:56 am, by dacare, 1353 words, 554 views   English (US)
Categories: Investing in China

Why Germany and China are winning

The Great Recession rolls on, but it’s not too early to single out the major powers that have come through the wreckage in the best shape. They are the ones the other major nations implore for help — to bail out weaker economies, to diminish their dominance of the world’s production and start consuming more themselves. There are just two such nations: China and Germany.

Global unemployment might remain stratospheric, but in China, long-suppressed wages are finally increasing for millions of industrial workers. China’s stimulus — effectively the world’s largest — has funded bullet trains, airports and wind turbines. In Germany, unemployment has been running a point or two below ours, and exports remain high. Thanks to its favorable trade balance, Germany’s finances are the strongest in Europe, which is why German monetary guarantees have been key to the future of both Greece and the euro.

Germany and China don’t have a lot in common. Germany has a mature economy and is a stultifyingly stable democracy. China has a rising economy and remains disturbingly authoritarian. What sets them apart from the world’s other major powers, purely and simply, is manufacturing. Their predominantly industrial economies meet their own needs and those of other nations, and have made them flourish while others flounder.

This used to be true of United States, too. In 1960, manufacturing accounted for a quarter of our gross domestic product and employed 26 percent of the labor force. Today, manufacturing has shriveled to 11 percent of GDP and employs a kindred percentage of the workforce.

For the past three decades, with few exceptions, America’s CEOs, financiers, establishment economists and editorialists assured us that the transition from a manufacturing to a post-industrial economy was both inevitable and positive: American workers would move to more productive jobs, and the nation’s financial security would only grow.

But after rising steadily during the quarter-century following World War II, wages have stagnated since the manufacturing sector began to contract.

Increasingly, it’s our most productive jobs that are being offshored. Until 2001, the United States exported more advanced technology than it imported, but since then, as Clyde Prestowitz reports in “The Betrayal of American Prosperity,” his persuasive new book on the need for an American industrial policy, we’ve been running annual high-tech deficits that reached $61 billion in 2008. Worse yet, as we lose manufacturing, which employed 63 percent of our scientists and engineers in 2007, we lose many of our most valuable professionals. Last year, reported Business Week, the number of employed scientists and engineers fell 6.3 percent while overall employment fell 4.1 percent.

Most Americans, I suspect, believe we’re losing manufacturing because we can’t compete against cheap Chinese labor. But Germany has remained a manufacturing giant notwithstanding the rise of East Asia, making high-end products with a workforce that is more unionized and better paid than ours. German exports came to $1.1 trillion in 2009 — roughly $125 billion more than we exported, though there are just 82 million Germans to our 310 million Americans. Germany’s yearly trade balance went from a deficit of $6 billion in 1998 to a surplus of $267 billion in 2008 — the same year the United States ran a trade deficit of $569 billion. Over those same 10 years, Germany’s annual growth rate per capita exceeded ours.

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Why Germany and China are winning
MICHAEL OSBUN / Tribune Media Services

By HAROLD MEYERSON

Published: Monday, July 5, 2010 at 3:00 a.m.
Last Modified: Friday, July 2, 2010 at 6:05 p.m.

( page 3 of 3 )

The Great Recession rolls on, but it’s not too early to single out the major powers that have come through the wreckage in the best shape. They are the ones the other major nations implore for help — to bail out weaker economies, to diminish their dominance of the world’s production and start consuming more themselves. There are just two such nations: China and Germany.

Global unemployment might remain stratospheric, but in China, long-suppressed wages are finally increasing for millions of industrial workers. China’s stimulus — effectively the world’s largest — has funded bullet trains, airports and wind turbines. In Germany, unemployment has been running a point or two below ours, and exports remain high. Thanks to its favorable trade balance, Germany’s finances are the strongest in Europe, which is why German monetary guarantees have been key to the future of both Greece and the euro.

Germany and China don’t have a lot in common. Germany has a mature economy and is a stultifyingly stable democracy. China has a rising economy and remains disturbingly authoritarian. What sets them apart from the world’s other major powers, purely and simply, is manufacturing. Their predominantly industrial economies meet their own needs and those of other nations, and have made them flourish while others flounder.

This used to be true of United States, too. In 1960, manufacturing accounted for a quarter of our gross domestic product and employed 26 percent of the labor force. Today, manufacturing has shriveled to 11 percent of GDP and employs a kindred percentage of the workforce.

For the past three decades, with few exceptions, America’s CEOs, financiers, establishment economists and editorialists assured us that the transition from a manufacturing to a post-industrial economy was both inevitable and positive: American workers would move to more productive jobs, and the nation’s financial security would only grow.

But after rising steadily during the quarter-century following World War II, wages have stagnated since the manufacturing sector began to contract.

Increasingly, it’s our most productive jobs that are being offshored. Until 2001, the United States exported more advanced technology than it imported, but since then, as Clyde Prestowitz reports in “The Betrayal of American Prosperity,” his persuasive new book on the need for an American industrial policy, we’ve been running annual high-tech deficits that reached $61 billion in 2008. Worse yet, as we lose manufacturing, which employed 63 percent of our scientists and engineers in 2007, we lose many of our most valuable professionals. Last year, reported Business Week, the number of employed scientists and engineers fell 6.3 percent while overall employment fell 4.1 percent.

Most Americans, I suspect, believe we’re losing manufacturing because we can’t compete against cheap Chinese labor. But Germany has remained a manufacturing giant notwithstanding the rise of East Asia, making high-end products with a workforce that is more unionized and better paid than ours. German exports came to $1.1 trillion in 2009 — roughly $125 billion more than we exported, though there are just 82 million Germans to our 310 million Americans. Germany’s yearly trade balance went from a deficit of $6 billion in 1998 to a surplus of $267 billion in 2008 — the same year the United States ran a trade deficit of $569 billion. Over those same 10 years, Germany’s annual growth rate per capita exceeded ours.

Germany has increased its edge in world-class manufacturing even as we have squandered ours because its model of capitalism is superior to our own. For one thing, its financial sector serves the larger economy, not just itself. The typical German company has a long-term relationship with a single bank — and for the smaller manufacturers that are the backbone of the German economy, those relationships are likely with one of Germany’s 431 savings banks, each of them a local institution with a municipally appointed board, that shun capital markets and invest their depositors’ savings in upgrading local enterprises. By American banking standards, the savings banks are incredibly dull. But they didn’t lose money in the financial panic of 2008 and have financed an industrial sector that makes ours look anemic by comparison.

So even as Germany and China have been busily building, and selling us, high-speed trains, photovoltaic cells and lithium-ion batteries, we’ve spent the past decade, at the direction of our CEOs and bankers, shuttering 50,000 factories and springing credit-default swaps on an unsuspecting world. That’s not to say our CEOs and bankers are conscious agents of foreign powers. But given what they’ve done to America, they might as well have been.

By HAROLD MEYERSON

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07/02/10

Permalink 07:11:42 pm, by dacare, 298 words, 774 views   English (US)
Categories: News of China, Technical, IT Recruiting

Baidu Looks To Hire US Software Engineers In China

HONG KONG (Dow Jones)--Chinese search engine company Baidu Inc. (BIDU) said Wednesday it is looking to hire 30 software engineers from the U.S. next month to help make the company more innovative as it seeks to take advantage of rival Google Inc.'s (GOOG) shrinking participation in China.

Baidu is set to gain market share in China from Google as the Chinese government objects to Google's recent strategy of redirecting Chinese users to an uncensored site in Hong Kong and threatened the U.S. company with the loss of its license.

Kaiser Kuo, a company spokesman, said Baidu, China's biggest search engine, will hold a job fair in Milpitas, Calif., and is aiming to hire mid-level to senior engineers.

"Baidu believes that talent is the key to our success as a company, and we go wherever the best talent can be found, whether here in China or in Silicon Valley," said Zheng Bin, human resources director at Baidu, in a statement.

Baidu's hiring in the U.S. market underscores the need for more experienced engineers in China. Analysts say having insufficient number of engineers means companies will fall behind other rivals as competition intensifies in the Internet space.

"It's good to see Baidu taking initiatives to expand its talent pool and speed up the company's technology development. New technology is vital for its long-term growth," said Elinor Leung, an analyst at CLSA.

Baidu currently employs about 2,500 engineers. It has research and development centers in Beijing and Shanghai.

According to figures from Analysys International, Google's market share in China declined to 31% in the first quarter of this year from 35.6% in the previous quarter, with Baidu benefiting at Google's expense.

Baidu reported in February its fourth-quarter earnings rose 48% to CNY427.9 million on a 40% increase in revenue to CNY1.26 billion.

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Permalink 07:04:52 pm, by dacare, 308 words, 470 views   English (US)
Categories: Manufacturing & Industry

GM says China sales overtake US for first time

SHANGHAI — General Motors Co. says its first-half sales of vehicles in China overtook the U.S. for the first time amid a fitful recovery in American demand.

The 1.21 million GM-brand vehicles sold in China in January to June — a near 50 percent gain over a year earlier — compared with 1.07 million sold in the U.S. market, according to figures released separately by GM's U.S. and international headquarters.

The shift reflects GM's growing reliance on stronger growth in emerging markets, especially China, to offset sluggish sales back home.

The recovery in U.S. auto sales this year has been fitful, with month-to-month sales falling as many times as they rose. Sales of GM's four core brands rose 36 percent in the first half of the year over a year earlier in the U.S., but were down 12 percent in June from the month before, at 195,000, the company said.

In China, where first half auto sales figures for the entire industry are not due until next week, demand has begun to moderate but remains strong. Passenger car sales rose 55 percent in January-May to 5.7 million vehicles, while total vehicle sales rose 53 percent to 7.6 million.

Last year, China sped past the U.S. to become the world's largest auto market, with 13.6 million vehicles sold, as consumers with rising incomes responded to government tax cuts and subsidies aimed at encouraging purchases of small, energy efficient vehicles.

By contrast, U.S. sales of cars and light trucks plunged 21 percent in 2009 to 10.4 million as a shaky economy kept buyers away from showrooms.

Last year, GM's global sales overtook the home market as U.S. demand languished. Sales in China by GM and its partners surged 67 percent over a year earlier to a record 1.8 million vehicles. But while GM's U.S. sales fell 30 percent from a year earlier, they still exceeded its China sales at 2.08 million units.

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Permalink 07:01:51 pm, by dacare, 582 words, 480 views   English (US)
Categories: News of China

GE Chief's Remarks Show Growing Irritation With China

General Electric Co. Chief Executive Jeffrey Immelt said it is getting harder for foreign companies to do business in China, and that the Obama administration hasn't done as much as its predecessors to develop ties to the business community, people who heard his comments said Thursday.

His remarks, made Wednesday night at a private dinner in Rome for Italian business leaders, GE executives and others, echoed concerns Mr. Immelt has expressed before about barriers to U.S. exports and links between business and government.

But his words appeared to show a growing irritation with China, which Mr. Immelt said is increasingly developing its own technology that competes with U.S. exports, according to a person who heard him speak. "Immelt expressed anger at China, because it's trying to suck technology away," this person said.

GE said Mr. Immelt was in transit, and not available for comment.

The company, however, said its approach to China hasn't changed. "There is no change to our strategy for or in China, which as Jeff has said many times is an important and attractive market for GE," said Anne Eisele, a spokeswoman for the Fairfield, Conn.-based conglomerate.

GE, a sponsor of the 2008 Olympic Games in Beijing, has pinned much of its hopes for growth on Chinese markets. GE has 13,000 employees in China and has cut deals there to share technology in the areas of aviation, reducing pollution from coal, and rail locomotives.
China Real Time.

Around the time GE opened a new technology center in Shanghai in August of 2008, Mr. Immelt said GE expected to double its business in China to $10 billion by 2010. But the company appears behind schedule in reaching that target, with China revenue of about $5.3 billion in 2009, up from $4.7 billion in 2008.

Shifting to relations with governments, Mr. Immelt said Wednesday night that the Obama administration has been distracted by the economic crisis and its legislative priorities from developing the ties with business seen under the Bush and Clinton administrations.

The White House declined to comment.

Mr. Immelt enjoyed a warm relationship with President Barack Obama after the 2008 election, and was named to the President's Economic Recovery Advisory Board, a bipartisan panel of industrial, finance and union leaders. Mr. Immelt was a leading corporate supporter of the $787 billion federal stimulus bill, praising it in op-ed pieces and speeches.

In recent months, though, Mr. Immelt has said the administration needs to do more to help U.S. manufacturers sell their goods in foreign markets. Speaking in May at the 92nd Street Y in New York, he said he felt outgunned in terms of political support when bidding against French and South Korean companies for a nuclear-reactor contract in Dubai. That $20 billion contract was ultimately won by a Korean consortium

Mr. Immelt's remarks from the Rome gathering were reported earlier by the Financial Times.

One attendee said the chief executive "used the word 'concern' a lot," indicating challenges as companies try to put the recession behind them. "His speech was gloomy," this person said. "He seemed worried about business conditions across the board. And at the same time, he was using those observations to highlight that GE was doing well in spite of the difficulties."

Mr. Immelt said GE's second-quarter results won't be bad. The company reported in April that its first-quarter profit fell 31% from a year earlier to $1.95 billion on revenue of $36.6 billion. Analysts surveyed by Thomson Reuters expect GE to report $38.7 billion in revenue for the second quarter.

By JENNIFER CLARK And PAUL GLADER

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06/09/10

Permalink 12:38:43 am, by dacare, 456 words, 497 views   English (US)
Categories: Investing in China, Candidates, Labor and Worker, HR News Express

China adopts more open policy to attract foreign talents

China's central authorities have set down a more open policy to attract top-notch foreign talents to help promote the economic and social development and global competitiveness of the nation.

According to the newly unveiled National Medium and Long-term Talent Development Plan (2010-2020), the government will work out favorable policies in terms of taxation, insurance, housing, children and spouse settlement, career development, research projects, and government awards for high-calibre overseas talents who are willing to work in China.

Furthermore, the government will also improve the system for giving permanent residence rights to foreigners, explore the potential of a skilled migration program, and work out measures to ensure a talent supply, discovery and appraisal system.

The national plan, a blueprint for creating a highly skilled national work force over the next decade, aims to transform the country from being "labor-rich to talent-intensive."

Wang Huiyao, vice chairman of Beijing-based China Western Returned Scholars Association, said, "The measures outlined are very attractive. They've touched upon various concerns of talents from overseas including personal and career needs."

"The plan is practical and concrete compared with previous documents," said Wang, who help draft the plan.

A program to hire 1,000 overseas top-notch specialists initiated in late 2008 was also incorporated into the new plan as one of the 12 key projects to be completed over the next ten years.

By May this year, 662 people have been recruited under the program, which gives priority to leading scientists who are able to make breakthroughs in key technologies, develop high-tech industries and lead new research areas.

Xiao Mingzheng, director of the Human Resource Development and Management Research Center at Peking University said, "It's preferable to import talents rather than capital or technology."

"As China strives to adjust its economic growth pattern, it has become more important for it to tap others' 'brains'," he said.

"The new policies reflect China's open attitude to personnel recruitment - that is, the country not only exports talents to serve the world but also enables foreign talents to serve China's development," he said.

China's efforts to attract overseas talents have gone beyond the central government level.

The country recruited about 480,000 talents from foreign countries, Hong Kong, Macao and Taiwan last year, according to the State Administration of Foreign Experts Affairs.

And about 50,000 Chinese officials and professionals went overseas for various training programs last year.

Li Yuanchao, head of the Organization Department of the Central Committee of the Communist Party of China, said earlier this year, "Top-notch talents are crucial for improving the core competitiveness of a country, a region, and a company."

"Not only should the central government earnestly carry out its talent recruitment program. Local governments should also develop their own programs to create conditions to allow talents to achieve," he said.

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Permalink 12:38:02 am, by dacare, 198 words, 577 views   English (US)
Categories: HR News Express

China Hiring Plans Rise to Six-Year High, Survey Shows

Chinese employers’ hiring plans reached a six-year high as a recovery in the world’s third- largest economy and the Shanghai World Expo boosted demand, a private survey showed.

Manpower Inc., the world’s second-largest provider of temporary workers, said 31 percent of employers expect to expand their workforce in the third quarter, citing a survey of 3,607 companies. A measure of the employment outlook rose to the highest since the survey began in 2005, the company said on its website today.

After job losses in the economic slowdown, “the situation seems to be recovering quickly, and many companies are in urgent need of laborers to meet the increased demand,” said Danny Yuan, managing director for Manpower China. “In regions like the Yangtze River Delta and Pearl River Delta, employers’ demand for laborers has resulted in a blue-collar labor shortage.”

Higher demand for workers may fuel pay increases that HSBC Holdings Plc said yesterday are “good news” for the economy because they will boost private consumption, putting a floor under growth. Foxconn Technology Group and Honda Motor Co. have raised wages and local governments have announced increases to minimum pay levels.

The expo is boosting demand for services workers, Yuan said.

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06/06/10

Permalink 01:57:37 am, by dacare, 264 words, 406 views   English (US)
Categories: Candidates, Labor and Worker, HR News Express

Global Recruiters' Confidence On Hiring In 2nd Half Rises

Confidence among recruitment companies around the world about the prospects for hiring rose 11% in the five months to May so that 67% now expect revenue growth in the second half of the year, the Association of Executive Search Consultants said Tuesday.

As a result recruitment companies are expected to hire more staff to handle the increased business, with 48% of those people surveyed for the AESC's mid- year member outlook report saying they anticipate hiring more consultants in the second half of 2010.

The healthcare and life sciences sector and the energy and natural resources industries are currently the strongest two areas for hiring and are expected to be among those seeing the most growth in the second half of 2010, the AESC report said. The industrial and financial services sectors are also expected to see some of the biggest recoveries this year, it added.

"The latest results are indicative of an industry regaining strength following the downturn," said Peter Felix, AESC president. "Once again there is talk of a talent shortage in certain industries and functions, even though unemployment levels remain high."

China, India and Brazil are expected to see the greatest scarcity of talent in the second half of 2010 with 64.9% of those surveyed expecting China to experience a lack of personnel, while 37.8% and 37.2% said they thought India and Brazil, respectively, would experience problems, the report showed.

Those people in employment have become slightly more willing to consider making career moves as a result of the improving jobs market, with 45% of recruiters saying senior executives will consider moving jobs, up from 42% at the end of last year.

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Permalink 01:44:37 am, by dacare, 1620 words, 540 views   English (US)
Categories: Candidates, Labor and Worker

Cheap Labor Fighting Back in China

As the global race to the bottom for private industry labor continues, it seems the younger Chinese laborer - many of which are exposed to the rest of the world via the internets (sic) - is beginning to have enough. While not a new issue [Feb 28, 2008: China Raising Minimum Wage] the very high profile suicide cases at mega contract manufacturer Foxconn along with strikes at Honda plants in China are bringing this issue to the forefront of public conscience. Even Apple's Steve Jobs is concerned:

* Apple Inc Chief Executive Steve Jobs finds "troubling" a string of worker deaths at Foxconn, the contract manufacturer that assembles the company's iPhones and iPads, but said its factory in China "is not a sweatshop." "It's a difficult situation," Jobs, dressed in his customary black turtleneck and jeans, said on stage. "We're trying to understand right now, before we go in and say we know the solution."
* “The situation at Hon Hai is negative for Apple, so they need to work together to try to resolve this,” said Jenny Laia technology analyst at CLSA Ltd. in Taipei. About 70%of Apple’s products may be manufactured at Hon Hai’s facilities, she said.

Not everyone agrees with Mr. Jobs, who is obviously biased:

* Foxconn is a sweatshop that “tramples” the rights of workers partly because it pays about 900 yuan ($131) a month, forcing factory employees to do overtime to support themselves and their families, according to Li Qiang, founder and executive director of New York-based China China Labor Watch.

While this is a positive for "humanity" you can almost hear the siren call of other countries, such as Vietnam, [Apr 7, 2010: Vietnam Begins to Lure Business Away from China] beckoning for the world's corporations to exploit their workers if the Chinese won't have it.

* “We have been seeing wage inflation over the past several months,’’ said Chris Ruffle, who helps manage $19 billion as China co-chairman of Martin Currie Ltd. Rising salaries may prompt businesses that operate plants in China to move to lower-cost countries such as Vietnam and Cambodia, Ruffle said.

One can only wonder what nation's workers will be left to exploit circa 2025 when the Vietnamese and Cambodian worker inevitably rises up as the Chinese are doing. If only Africa had government stability! Perhaps North Korea will be willing to open its doors.

-----------------------------------

Via AP:

* Global manufacturers struggling with life-or-death pressures to control costs are finding that the legions of low-wage Chinese workers they rely on have limits. A strike at Honda Motor Co. and the official response to a spate of suicides at Foxconn Technology, a maker of electronics for industry giants such as Apple, Dell and Hewlett-Packard, suggests China's leaders are at least tacitly allowing workers to talk back.
* Over the weekend, the top communist party leader in Guangdong province visited Foxconn's sprawling factory where 10 workers have committed suicide and urged the company to adopt a "better, more humane working environment" for its mostly young workers, state media reported.
* "The 80s and 90s generation workers need more care and respect and need to be motivated to work with enthusiasm," said Guangdong party chief Wang Yang. (my assumption is he meant those workers born in the 80s and 90s)
* That transition is taking hold across China. Manufacturers, under pressure to deliver low prices in home markets, are struggling to attract and keep young workers who, brought up in an era of relative affluence, are proving less willing than earlier generations to "eat bitterness" by putting up with miserable working environments and poor wages.

* The strike at Honda also reflects broader trends of growing dissatisfaction among China's long-suffering workers with lagging wages and generally harsh working conditions. Employers in Shanghai complain of difficulties in finding and keeping young workers, both skilled and unskilled. Contractors were obliged to pay heavy bonuses to keep workers on the job during the lunar new year as they rushed to finish construction for the Shanghai World Expo, which runs for six months until Oct. 31.
* "Our economy can no longer rely on squeezing labor benefits, because workers are unwilling to accept it anymore. I have to say the squeeze is very cruel now," said Chang Kai, a labor expert at Beijing's Renmin University.
* Foxconn says it is installing safety nets on buildings and hiring more counselors at its 300,000-worker factory in Shenzhen, the boomtown bordering Hong Kong in Guangdong province that became the epicenter of China's first waves of cheap-labor export manufacturing in the 1980s-90s.
* The factory campus has air conditioned production lines, palm-tree lined streets, fast-food restaurants and recreation facilities. But labor activists accuse the company of demeaning and dehumanizing workers with a militaristic management style, excessively fast assembly lines and overwork that have overwhelmed some laborers in their late teens and early 20s and away from home perhaps for the first time.
* (in the Honda plant) "Most of the employees on strike at the plant have agreed to new wages, and some production started there from today," said Honda spokeswoman Yasuko Matsuura in Tokyo. She said "almost all" of the striking workers have agreed to increasing the total starting wage by about 24% to 1,910 yuan ($280) per month.
* China outlaws unauthorized labor organizing, limiting such activities to the government-affiliated All China Federation of Trade Unions and to company branches of the ruling Communist Party. But in recent years authorities increasingly appear to be tolerating sporadic, peaceful protests by aggrieved workers.
* "Wages have been rising in recent years, but compared with soaring prices they remain very low," said Li Qiang, founder of New York-based China Labor Watch. "The government recognizes that problem, so even if strikes are still illegal some are tacitly condoned, though the strikes and protests have to stay within certain limits," he said.
* Working conditions vary widely across China -- from modern factories in full compliance with Western standards to slave labor brick kilns. Yet another of those was reported after 34 migrant workers were freed by a police raid in northern Hebei province, the state-run newspaper China Daily said Monday.

and....

* "The Foxconn incident shows one big problem: people are not machines," Jin Bei, head of the industrial research institute of the Chinese Academy of Social Sciences, said in a commentary Monday in the China Business Journal.

Ah, if only they were! The need for sleep is such a human weakness - Sincerely, HAL9000.

--------------------------------

Another story via Bloomberg on this problem re: People are not robots.

* Ah Wei has an explanation for Foxconn Technology Group Chairman Terry Gou why some of his workers are committing suicide at the company’s factory near the southern Chinese city of Shenzhen. “Life is meaningless,” said Ah Wei, his fingernails stained black with the dust from the hundreds of mobile phones he has burnished over the course of a 12-hour overnight shift. “Everyday, I repeat the same thing I did yesterday. We get yelled at all the time. It’s very tough around here.”
* Conversation on the production line is forbidden, bathroom breaks are kept to 10 minutes every two hours and constant noise from the factory washes past his ear plugs, damaging his hearing, Ah Wei said. The company has rejected three requests for a transfer and his monthly salary of 900 yuan ($132) is too meager to send money home to his family.
* At least 10 employees at Taipei-based Foxconn have taken their lives this year, half of them in May, according to the company, also known as Hon Hai Group. The deaths have forced billionaire founder Gou to open his factories to outside scrutiny and apologize for not being able to stop the suicides.
* Foxconn’s Longhua complex outside Shenzhen spans three square kilometers (1.16 square miles) and is criss-crossed by tree-lined streets with a water fountain at the center of the facility. Workers wearing polo shirts emblazoned with ‘Foxconn’ in Chinese characters over their hearts walk along the streets. Men wear blue, women wear red. Security personnel wear white. The complex boasts its own hospital, a collection of restaurants and a swimming pool surrounded by palm trees.
* The workers, 86% of whom are under 25 years old, live in white dormitories with eight to ten people sleeping in a room. The living quarters have stairs running up the outside walls and the company has begun covering them with nets to prevent people from jumping.
* About 80% of the front-line production employees work standing up, some for 12 hours a day for six days a week, according to Liu Bin, a 24-year-old employee.
* “It’s hard to make friends because you aren’t allowed to chat with your colleagues during work,” Liu said at Shenzhen Kang Ning Hospital where he was seeking help for insomnia. “Most of us have little education and have no skills so we have no choice but to do this kind of jobs. I feel no sense of achievement and I’ve become a machine.” (somewhere HAL9000 is smiling)
* “The fundamental problem for Foxconn and other Chinese factories is that their business model relies on a low-cost workforce sourced from rural areas of China,” said Pun Ngai, a professor of applied social sciences at the Hong Kong Polytechnic University “Due to its size, Foxconn has to be that much tougher than other factories, and has to become more emotionally detached from its employees than others.”
* Foxconn raised pay for workers by 30 percent to 1,200 yuan from 900 yuan a month, spokesman Ding said today. The additional money may not be enough to stem the suicides, according to Xiao Qi, a college graduate who works at Foxconn in product development. He earns 2,000 yuan a month, yet gets no joy from his job, he said. “I do the same thing every day; I feel empty inside,” said Xiao, who said he has considered suicide. “I have no future.”

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06/03/10

Permalink 09:19:35 am, by dacare, 976 words, 715 views   English (US)
Categories: Candidates, Labor and Worker, Manufacturing & Industry

Chinese Honda Strike a Wake-Up Call for Japan

By HIROKO TABUCHI

TOKYO — The strike that has crippled production at Honda Motor’s factories in China has come as a wake-up call to Japan’s flagship exporters as they seek to remain competitive and push into China’s burgeoning market with the help of low-wage workers.
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The strike by Chinese workers to protest pay and working conditions has cost Honda, Japan’s second-largest carmaker after Toyota, thousands of units in lost production in the world’s biggest auto market. The walkout began on May 17 at a Honda transmission factory in Foshan, in the southeast, and has shut down all four of Honda’s factories on the mainland.

“Honda takes the situation very seriously,” said Yasuko Matsuura, a spokeswoman for Honda in Tokyo. The company “is working toward reaching a resolution as soon as possible.” On Tuesday, there were conflicting accounts by the company and Chinese employees about how soon workers might return to their jobs.

In Tokyo, the strike has driven home a salient point: as Chinese incomes and expectations rise in line with the country’s rapid growth, while Japan’s own economy falters, the two countries face a realignment that could permanently alter the way their economies interact.

To complicate the picture, Japanese companies see the Chinese as crucial consumers of their goods to make up for a shrinking and aging market at home. Some of the most profitable Japanese companies, like Fast Retailing, which runs the budget clothing line Uniqlo, have relied on production in China since the 1990s to keep prices low.

“Japan is starting to realize that the age of cheap wages in China is coming to an end, and companies that looked to China only for lower costs need to change course,” said Tomoo Marukawa, a specialist on the Chinese economy at Tokyo University.

Despite the consequences for production costs, a rise in wages and standards of living in China would be welcomed by many Japanese exporters. The same companies that produce in China have also moved to sell their wares there, moving factories to the mainland to reduce costs further and meet the needs of local customers.

In Uniqlo’s case, as incomes in China rose, it followed up with local stores in 2002; the company has opened 64 outlets in China and aims to open 1,000 stores there in the next decade.

And yet, for Honda, prices of its cars in China may have to drop considerably before the company can truly tap into the market.

The strike by 1,900 workers at Honda’s Foshan factory came as a particularly big shock to Honda, which had announced just days before that it would increase production in China to meet demand.

Honda’s chief executive, Takanobu Ito, had said the automaker would begin major expansions at two joint ventures in China, Guangqi Honda and Dongfeng Honda, increasing capacity by 30 percent to 830,000 cars and minivans by 2012.

In April alone, Honda made 58,814 cars in China, a 28.7 percent increase from the same month the previous year and a monthly record.

Five of six Japanese car manufacturers with factories in China broke production records in April.

“The wave of motorization in China will not abate for the foreseeable future,” Mr. Ito said last week. He said that Guangqi Honda would introduce a compact car intended especially for the Chinese market that would be produced there in 2011.

The rise in output in China has been driven by a strong economic recovery in that country, which is buoying auto sales more than in any other major market. The rebound has been good news for Japanese automakers, hard-pressed to cut costs as they seek to return to profit after a collapse in car sales because of the global economic crisis.

Auto sales in Japan have remained sluggish, and sales in the United States and Europe have not rebounded to precrisis levels.

In China, Japanese carmakers are also racing to catch up with rivals after arriving relatively late in the market. The first Honda rolled out of a plant in Guangzhou in 1999, while Toyota did not produce in China until 2002.

Though sales have grown rapidly since then, Japanese carmakers are still struggling against local rivals because of a dearth of small, low-cost models, which are driving market growth in China.

Honda’s least expensive model sold in China, the Fit compact car with a 1.3-liter engine, is priced at about 83,000 renminbi, or about $12,500. A Chery QQ 1.3-liter minicar from the Chinese carmaker Chery Auto sells for about half the price of the Fit.

Given that the average monthly income in China s is 2,050 renminbi, about $300, the price of a Chery QQ is around 19 months’ salary, while the Honda Fit requires more than 40 months. The Honda Accord 2.4-liter sedan, meanwhile, sells in China for about $35,000, far beyond the reach of most workers.

For Honda, the promise of access to a huge, growing market in China was as much a factor as cheaper labor in luring it to open factories there. A 25 percent import tariff on foreign cars is also a major incentive for foreign automakers to produce in China.

More quickly than any other major Japanese automaker, Honda has started exporting cars made in China to third countries. A small plant in Guangdong makes its Jazz model for export.

Besides complaining about their pay, Honda’s striking workers complain about a wage gap: the company’s Japanese employees in China are paid about 50 times what local Chinese workers receive.

Experts say that at the factory level, Japanese companies will need to start changing the way they work with employees — giving them fair pay, benefits and a chance for promotion in line with those accorded to employees from headquarters in Japan.

“Japanese manufacturers need to raise morale by making sure that local staff can also climb within the company,” said Tatsuo Matsumoto, Asia researcher at the Japan Center for International Finance.

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05/27/10

Permalink 03:32:02 pm, by dacare, 499 words, 1587 views   English (US)
Categories: News of China

Bay Area: China's gateway to U.S

With 30 years of sister city relations, a highly educated work force and international business facilities, San Francisco is an important gateway for Chinese companies expanding into North America.

The close economic and cultural ties between the cities provide a unique business platform, and many Chinese companies have chosen to set up operations in the Bay Area in the past few years.

Moreover, because more than 25 percent of the city's population is of Chinese ancestry, there is no other place in North America where Chinese businessmen and businesswomen will feel more comfortable and welcome, according to ChinaSF - a joint public and private initiative that helps companies set up or invest between China and San Francisco.

The area is an international hub for pioneering and forward-thinking industries such as life sciences and health care, information technology and digital media, clean technology, financial and professional services, iPDR (integrated production, distribution and repair), retail and hospitality, international commerce and film.

"Among these, solar-tech manufacturing and biotech are two sectors with substantial growth prospects in both the Chinese and American markets," says Ginny Fang, director of ChinaSF.

ChinaSF is under the San Francisco Center for Economic Development and operates in close partnership with the city of San Francisco. It is funded entirely by its private sector partners and has offices in San Francisco and Shanghai. Their Shanghai office helps San Francisco businesses navigate China's unique business culture and climate, including support for appropriate Chinese government relations and protocol.

Since its official opening in November 2008, ChinaSF has had the notable success of attracting five of China's top solar companies to San Francisco, making the city the North American capital for the Chinese solar industry. By the end of 2009 it had attracted 10 Chinese companies to San Francisco, including Shanghai life sciences consulting firm SPRIM, which has chosen to base its international headquarters in San Francisco.

SPRIM has offices in 15 cities worldwide and employs over 400 staff.

Other companies of note with a presence in San Francisco include Suntech America based in Wuxi in Jiangsu Province, the world's third-largest solar cell maker; and Yingli Green Energy headquartered in Baoding in Hebei Province, one of the world's leading photovoltaic product manufacturers.

Factors that attract Chinese companies to San Francisco include innovation, intellectual capital and "the world's best employees because of its unparalleled quality of life," says Fang.

The City of San Francisco acts through its Office of Economic and Workforce Development to support the ongoing economic vitality of San Francisco with incentives such as help navigating city government, access to tax credits and other funding, employee recruitment and training, and site location.

The Shanghai-San Francisco sister city relationship has benefited both cities economically because of the involvement of all three main sectors of society including government, business and citizens, says Fang. "Exchanges take place in virtually all areas of the community - sports, art, culture, education, government and business - all of which have contributed to increased foreign direct investment, business partnerships and cross-cultural dialogue."

(Source: Shanghai Daily)

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Permalink 03:30:52 pm, by dacare, 701 words, 624 views   English (US)
Categories: Candidates, Labor and Worker

The dilemma of female college graduates in China

Studying abroad, pursuing a Master’s Degree, entering the civil service sector and marriage are most common choices of female college graduates in China nowadays. Finding private sector employment is the choice of only a small proportion of female students. The National Women’s Association released the results of a survey which indicated that 90% of female college graduates had sensed gender inequality and discrimination when seeking job opportunities.

Recently, MyCOS, a third-party research agency completed a survey of female students. The survey showed that the employment rate for female college graduates is 21%, which is much lower when compared to the 29.5% for male students.

It is common knowledge that female students have unequal opportunity in the job application process. Because of the physical limitations of female applicators, some employers are more inclined to recruit men. A few employers even put up whiteboards indicating “Positions for men”, “Priority - Boys” or even “We don’t accept girl students”. There is also invisible discrimination against females in the selecting of resumes and even though employers may not have specified a gender requirement in their job descriptions, they do not consider the resumes of girl students after accepting their CVs.

Female students are often asked private gender-related questions such as the status of their relationship, intention to marry and have children. Some are even asked to not get married for five years on being offered the job. Because of the unique business culture in China, questions like “Can you drink?” or “Can you travel a lot for business?” are also not rare.

Apart from the recruitment process, discrimination is also present with regard to the occupations and positions offered to female students on their employment. Compared to men, women are usually employed in service and labor-intensive industries, including education and health care, diet, secretary and performing arts industries. On March 3rd this year, a job fair for female college graduates held by the Beijing Graduates Employment Service Centre attracted more than 3,000 women applicants. However, disappointingly, more than 600 of the job posts were secretarial, accounting and customer service positions. In terms of promotion, priority is also always given to men in some companies. Men do core operational work while women often do civilian work in a company. Besides this, there is also a difference in income between men and women in the same positions requiring similar capabilities.

The reasons for the dilemma of female college graduates are as follows:
The overall employment situation in China is not that satisfactory.
Sexual discrimination against women in the job market and incomplete social assurance for women’s childbirth security has not harnessed women’s employment and development.
There are limitations in the selection of professions among female students themselves. Many are inclined to work in hot sectors like financial and media, and prefer to work in major cities rather than 2nd and 3rd tier cities.
There is gap between the needs of the job market and the existing allocation of majors and research areas in college.
To alleviate some of these concerns for companies and women, the government is expected to pay for maternity leave.

Companies and civil organizations are expected to work with colleges to establish institutions for female undergraduates to offer vocational training and courses on practical business operation. Voluntary service is also a good approach to improve the capacity of female students. Some celebrities are calling for the release of a national regulation on voluntary services to guarantee the rights and interests of volunteers, making voluntary services more complete and using it as a building platform for social practice for female students before their employment.

Companies can consider working with influential and experienced partners on campus. Since 2009, the National Women’s Association has promoted entrepreneurship on campus. The organization organized lectures and tours of women entrepreneurs, conveying a new philosophy of employment and entrepreneurship, encouraging female students to set up their own business by applying for micro-finance loans. It has also promoted the construction of social practice base for female students. Based on a partnership with a number of reputational and responsible enterprises, they offer a great deal of internship opportunities that lasts for 3 months to half a year for female students annually.

by Elyse Chen

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Permalink 03:30:03 pm, by dacare, 378 words, 747 views   English (US)
Categories: Banking & Financial Services

Hong Kong banks hiring and will pay to keep staff

HONG KONG -- Hong Kong banks and financial-services companies are leading the way as the city's employers step up hiring and say they are willing to pay more money to retain staff, according to a report by a recruitment firm.

The survey of about 500 company executives found 59 percent plan to hire for new positions in the second quarter, compared with 14 percent a year earlier, Hudson Global Resources (Hong Kong) Ltd. said. Hudson said 73 percent of employers in banking and financial services expect to hire more workers.

Hong Kong's jobless rate fell to a 15-month low in the first quarter, supporting consumption and economic growth, as the “labor market remains robust,” Matthew Cheung, secretary for labor and welfare, said last month. HSBC Holdings Plc, China Construction Bank (Asia) Corp. and BOC Hong Kong (Holdings) Ltd. have recently said they are hiring.

“Along with a recovering economy, with improvements becoming more broad-based, we expect the jobless rate will drop further this year,” Kelvin Lau, Hong Kong-based economist at Standard Chartered Plc, said Thursday in a phone interview.

Two-thirds of respondents said they are willing to offer more money to employees trying to leave for another company, Hudson said. More companies raised salaries in the first quarter than a year earlier, the Hong Kong Institute of Human Resource Management said May 10, citing the results of another survey.

Hong Kong's economy grew for nine consecutive months through December after a year-long recession. It reports first- quarter economic data tomorrow.

HSBC is joining rivals including Standard Chartered in expanding businesses that target wealthy clients in the region. HSBC aims to recruit more than 300 relationship managers and sales staff in Hong Kong in “a fairly competitive market” for hiring as competitors are also looking for talent, Francesca McDonagh, head of personal financial services for Hong Kong at HSBC, said last month.

China Construction Bank (Asia) , a unit of the country's second-largest lender, plans to hire as many as 400 people in Hong Kong this year as the bank opens about seven more branches in the city. BOC Hong Kong and its units are seeking to employ 200 people, the company said in April.

“The job market recovery remains strong,” said James Carss, a Hong Kong-based general manager at Hudson, in the report released earlier this month.

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Permalink 03:28:36 pm, by dacare, 229 words, 365 views   English (US)
Categories: Candidates, Labor and Worker

Vocational school graduates popular in China's job market

BEIJING, May 26 (Xinhua) -- Almost 96 percent of China's secondary vocational school graduates found jobs on graduation last year, the Ministry of Education announced Wednesday.

It was the fifth straight year that the vocational graduate employment rate exceeded 95 percent.

The high employment rate reflected the huge market demand for medium-level technicians, said Wang Jiping, vice director of the ministry's Department of Vocational and Adult Education.

Last year, 6.08 million students graduated from secondary vocational schools, and 95.99 percent of them were employed on graduation.

Wang said the qualifications in highest demand were manufacturing, information technology, civil engineering, trade and tourism, and transportation.

However, the threshold pay for graduates was relatively low.

A sample survey earlier this year in secondary vocational schools across China showed that a quarter of threshold pay was lower than 1,000 yuan (146 U.S. dollars) a month.

Wang said vocational schools across China should tailor curriculums to the demands of specific industries.

At the same press conference, ministry official Song Yonggang said 66,000 teachers would be recruited this year to work at rural schools in central and western China where teachers are in short supply.

The recruitment, under a program initiated in 2006, would see the central government guarantee the teachers equal pay with urban counterparts in their first three years.

Previously, teachers were reluctant to work in rural areas because the pay, funded from local budgets, was lower than in cities.

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Permalink 03:27:52 pm, by dacare, 213 words, 397 views   English (US)
Categories: Candidates, Labor and Worker

CHINA Public Service recruitment strengthened

Moves to strengthen

China’s Public Service recruitment systems have commenced, with the Deputy Director of the State Administration of Civil Service calling for improvements.

The Deputy Director, Yang Shiqiu said the Public Service written exam and interviews needed to be strengthened to make the system more competitive. Mr Yang said assessments of candidates and open selection also needed to improve to ensure the most talented applicants were recruited into the ranks of the PS.

He said a constant effort should be made to improve the selection of staff and that Departments and Agencies should make plans well before carrying out competitive recruitment. Mr Yang said Agencies should make personnel allocation of mid-level cadres and below clear at the beginning of every year and make annual arrangements in line with directions from the Central Government.

He said any Agencies that had not carried out competitive employment processes needed to learn from those which had. Mr Yang urged all to adapt the competitive employment system and to implement it as soon as possible.

He said organisations that had already adopted the system should continue to improve it. He said Agencies should avoid carrying out competitive employment sporadically and should implement it at all times, not just when requested to do so by higher authorities.

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05/24/10

Permalink 02:17:43 pm, by dacare, 43 words, 1673 views   English (US)
Categories: Announcements, Candidates, Labor and Worker

Join "China Job Openings, Career and Opportunities" Linkedin Group!

Join China Job Openings, Career and Opportunities: (just click to join – no cost).

Joining a group like this gives you access to other recruiter's China recruitment demand and helps you expand your network. They are an amazing and well-networked group of people which.

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05/12/10

Permalink 05:44:25 am, by dacare, 1046 words, 1156 views   English (US)
Categories: Candidates, Labor and Worker, HR News Express

Top 10 College Dropouts in US

Graduation season is upon us, and everyone from President Obama to John Grisham is delivering commencement speeches across the country. TIME looks at some of the most successful people to never receive their sheepskins.

1. Bill Gates

The Harvard Crimson called him “Harvard’s most successful dropout” — the rest of the world just calls him ridiculously rich. For more than a decade, Bill Gates has been one of the wealthiest, if not the wealthiest, men in the world. The son of an attorney and a schoolteacher, Gates entered Harvard in the fall of 1973, only to drop out two years later to found Microsoft with childhood friend Paul Allen. In 2007, more than thirty years after he left Harvard, the co-founder of Microsoft would finally receive his degree (an honorary doctorate) from his alma mater. At the commencement, Gates said, “I’m a bad influence. That’s why I was invited to speak at your graduation. If I had spoken at your orientation, fewer of you might be here today.”

2. Steve Jobs

The Mac, the iPod, heck, even Buzz Lightyear probably wouldn’t have existed had Steve Jobs stayed in school. The future wizard of One Infinite Loop dropped out of Reed College after just six months because of the undue financial strain it placed on his working-class parents’ savings. He would go on to eventually found Apple, NeXT Computer and Pixar, becoming an instrumental force in shaping the landscape of modern culture. However, his brief tenure in academia was not for naught. In a 2005 commencement speech he gave at Stanford University, Jobs credited a calligraphy class he took at Reed College with forming the basis for the typography used in the first Macintosh computer.

3. Frank Lloyd Wright

America’s most celebrated architect spent more time designing colleges than attending them. Frank Lloyd Wright was admitted to the University of Wisconsin-Madison in 1886, but left after only one year. He would move to Chicago and eventually apprentice under Louis Sullivan, the “father of modernism.” By the time of his passing, Wright’s resume included more than 500 works, most famous of which are Fallingwater and New York City’s Solomon R. Guggenheim Museum.

4. Buckminster Fuller

Buckminster Fuller — architect, thinker, inventor, futurist, college dropout. Expelled from Harvard not once, but twice, Fuller’s post-dropout period was anything but successful. He suffered a string of bad business ventures and years of anguish following his daughter’s death. While Fuller could have settled for a less than extraordinary life — he even contemplated suicide — he refused to buck to the bevy of bad breaks. At the age of 32, Fuller set out on a one man quest to change the world for the better. His unorthodox ideas such as the dymaxion (a portmanteau of dynamic maximum tension) house and dymaxion car captivated the nation, while his iconic geodesic domes would bring him international fame and recognition.

5. James Cameron

The Academy Award-winning director followed a circuitous route to Hollywood. Born and raised in Canada, he and his family moved to Brea, California in 1971. It was there that the young Cameron enrolled in Fullerton College to study physics. His academic life did not last long. He would drop out, marry a waitress and eventually become a truck driver for the local school district. It was not until he saw Star Wars in 1977 that Cameron would trade his blue collar career for one creating some of the late 20th-century’s most stunning (and expensive) science-fiction movies.

6. Mark Zuckerberg

Most college students use their dorm rooms to sleep, study, or do things their parents probably don’t want to know about. Mark Zuckerberg founded Facebook in his. Originally meant only for Harvard students, the popular social networking site quickly spread to the rest of the Ivies and other colleges across the nation. As Facebook’s popularity exploded, Zuckerberg packed up his bags and relocated the fledgling company to Palo Alto, California, forever leaving behind Harvard’s hallowed halls. So far, the decision has worked out pretty well for the twenty-something. According to Forbes, Zuckerberg is the youngest billionaire in the world, with a 2010 net worth of $4 billion.

7. Tom Hanks

TIME has called Tom Hanks America’s chronicler in chief; Sacramento State can call him their most famous dropout. The storied actor left college to intern full time at the Great Lakes Theater Festival in Cleveland, Ohio. There, he learned various aspects of theater from lighting to set design, laying the foundation for his Hollywood career as movie star, producer, director and writer. Not one to forget his own past, in 2009 Hanks helped fund-raise money to help renovate the Cleveland theater where he got his start.

8. Harrison Ford

Apparently a college degree isn’t a prerequisite for flying the Millennium Falcon. Harrison Ford, of Star Wars and Indiana Jones fame, majored in philosophy at Ripon College, but dropped out shortly before graduation. He subsequently landed several small parts in Hollywood productions, but unhappy with such minor roles, turned to a career in professional carpentry instead. Almost ten years later, he would co-star in George Lucas’ 1973 graduation night comedy American Graffiti and subsequently joined Lucas in a galaxy far, far away in the 1977 blockbuster Star Wars.

9. Lady Gaga

Before she was a Gaga, she was a Germanotta. Born Stefani Joanne Angelina Germanotta, the artist better known as Lady Gaga attended New York University’s Tisch School of the Arts, but dropped out after just a year to pursue her music career full time. She broke onto the New York club scene with her burlesque performances and was signed to Interscope Records by the age of 20. Her 2008 debut album, The Fame, has had the world going gaga for Gaga ever since.

10.Tiger Woods

In a world where prodigious sports talents tend to forgo higher education altogether for the pros, Tiger Woods chose to continue playing amateur golf at Stanford University as an economics major. Perhaps it was in Econ 101 that he learned the term “opportunity cost,” because his time at Stanford was not long. After two years there, Woods turned pro with his “Hello world” announcement, officially ending his collegiate career. He would go on to become one of the highest paid athletes in the world, earning more than $100 million annually at the height of his career. How?s that for economics?

Time

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05/06/10

Permalink 04:42:57 pm, by dacare, 449 words, 553 views   English (US)
Categories: Candidates, Labor and Worker, Comp, Salary & Benefit

Executive hiring in Asia (China) improves sharply

Job prospects for executives at multinationals in Greater China and Singapore have improved sharply in the past three months amid growing optimism that Asia's recovery from the global recession will be sustainable, a quarterly survey showed on Thursday.

'Asia is the first region to emerge from the global recession, causing employers to revise their hiring expectations sharply upwards,' said Mike Game, chief executive of executive recruiters Hudson Asia.

In China, hiring prospects picked up for the first time in more than a year. The proportion of employers in China, Hong Kong and Singapore who plan to cut headcounts within three months is less than half that in a similar survey taken in May. The latest survey was taken in August.

Hiring expectations have increased most in Hong Kong, where 35 percent of companies say they expect to recruit staff within three months, up from 22 percent in May. In media, public relations and advertising, 69 percent of companies said they would be hiring, compared with 28 percent in the previous survey.

In China, 39 percent of employers said they planned to add staff, up from 27 percent in the May survey, with companies in banking and finance most bullish about hiring.

Hong Kong and Singapore pulled out of recession in the second quarter while China on Thursday announced an 8.9 percent surge in third-quarter GDP, putting it easily within reach of its 8 percent growth target for this year, economists say.

WAGE GROWTH

Salaries are set to accelerate across Asia next year as business conditions improve: a survey by U.S. HR consultants Hewitt Consultants forecasts salaries in China will jump 6.7 percent next year after rising only 4.5 percent this year. Pay rises in Hong Kong and Singapore will be more modest at just under 3 percent.

In Singapore, 34 percent of companies in the Hudson survey said they would be hiring soon, up from 26 percent in the May survey, and only 5 percent said they would cut staff, compared with 14 percent in May. The healthcare and life sciences sector continues to offer the best hiring opportunities in Singapore with 44 percent of companies preparing to add headcount, while the consumer sector has seen a slight fall in hiring expectations since May.

Singapore employers were most willing to hire candidates who had been unemployed for more than a year, or an extended period of time, while employers in China were least willing to do so, according to Hudson.

Previous experience and specialist skills were cited as the main reasons to hire the long-term unemployed across the region but, in China, stopping work to obtain a higher qualification was also seen as a valid reason.

The quarterly survey covered responses from nearly 2,000 managers at multinational companies across industries in the three markets.

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Permalink 04:41:08 pm, by dacare, 311 words, 465 views   English (US)
Categories: Banking & Financial Services

China Career Update: CICC seems to be hiring almost everywhere in China

China International Capital Corporation (CICC), the leading international investment bank in China, is hiring for its asset management department and retail group in second tier cities.

Recent recruitment activity indicates that the firm is trying to fill positions such as investment consultant, channel marketing and sales, and retail customer services in order to develop and maintain relationships with local distribution-channel customers, institutional clients and high-net-worth individuals.

Headquartered in Beijing, CICC also has offices in Shanghai, Hong Kong and Shenzhen. Much of its recently posted recruitment, however, is for its expanding business in cities such as Chengdu, Guangzhou, Qingdao, Xiamen, Hangzhou, Nanjing, Wuhan and Chongqing.

Considered an elite employer within the Chinese banking sector, on a par with major international banks, CICC sets a high threshold for applicants, even in these second-tier centres.

According to the firm’s website, for an entry level position of investment consultant at its retail group in Chengdu, candidates must have “solid sales-related experience in multinational companies, preferably having been involved in securities sales,” as well as a “master degree in relevant majors, preferably an MBA from renowned universities”.

And these aren’t just paper promises. A new recruit to CICC’s asset management department in Shanghai, who asked not to be named, says most of his colleagues are graduates from leading MBA schools, such as CEIBS, and top universities like Fudan and Jiaotong.

CICC defines itself as a "meritocracy”, which means that ability and talent are rewarded above all. Hiring falls into three main categories: lateral (experienced professionals), campus (fresh graduates) and summer internships.

“For senior level positions, CICC prefers hiring those who have work experience at well-known investment banks, such as Merrill Lynch and JP Morgan. CICC is also hiring overseas returnees for specific positions such as fixed income and structured products,” says Stephen He, a banking and finance division senior consultant at Randstad China.

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05/01/10

Permalink 12:14:56 pm, by dacare, 769 words, 616 views   English (US)
Categories: Pharma, Biotech & Healthcare

Pharmaceuticals: Drug development with Chinese characteristics

Around the world over the past couple of years, the pharmaceuticals industry has been slashing jobs at a rapid rate, beset by expiring patents on important drugs and slowing growth in rich country markets.

The lost jobs have included sales representatives and back office staff, but also the once ring-fenced jobs in drug development, the lifeblood of the industry.

Against this somewhat grim backdrop, however, Shanghai has managed to cement its position as one of the drugs industry’s most important hubs for research and development.

Many of the industry’s premier companies, including Novartis, GlaxoSmithKline, Pfizer and AstraZeneca have opened new research facilities in the city and some of them are already looking to expand them.

Novartis, the Swiss group, said in November it planned to invest $1bn in its Shanghai laboratories, which would employ 1,000 people in five years’ time. Shanghai would become the third pillar in the company’s global R&D, alongside Basel and Boston.

Amid hype about corporate research moving to China and overinflated figures about how much real innovation is taking place in the country, the rapid emergence of pharmaceuticals research in Shanghai is a strong demonstration that the city can actually build a genuine corporate research base.

How has it managed to flourish while the industry as a whole is struggling?

The principal draws are the market and the pool of talented scientists.

While OECD healthcare markets are languishing and the industry is trying to come to terms with the impact of US healthcare reform, emerging markets are flourishing, none more so than China.

IMS, the consultancy, believes the country will see sales increase by 17 per cent this year.

Most companies are working on the assumption that China will be one of the three biggest markets in the industry in five years, alongside the US and Japan.

Although industry executives say there is no direct link between where research is conducted and sales in that country, there are plenty of subtle advantages to having labs in important markets – from currying favour with regulators to establishing links with the doctors and scientists who are leaders in their area.

AstraZeneca says that its research arm in Shanghai is mostly focused on trying to learn more about patients in China and the country’s medical needs.

When the company launched its Iressa drug for lung cancer seven years ago, it quickly found that Asian women who were non-smokers responded much more strongly than western patients. One of the genes that the drug targets appears to mutate much more frequently among Asian women, making the treatment more effective.

The initial focus of the facility has been to try to understand more about these differences, first in cancer and now in respiratory diseases.

“The Iressa case will not be an exception. It will happen again and again, so we are here to study the differences between patients in this part of the world,” says Zhang Xiaolin, head of AstraZeneca’s Shanghai research facility.

“All of this will have a profound effect on drug development and on the prospects for personalised medicine.”

The other driving force for drugs companies is the relatively untapped ranks of smart young Chinese scientists.

Novartis says this was the main reason for its decision significantly to expand its research arm in Shanghai. Six years ago, it moved the headquarters of its research operations from Basel to Cambridge, Massachusetts.

Daniel Vasella, chairman, says the experience in the US “taught us that you have to go where the talent is rather than getting the talent to come to you”.

The gap in the local talent pool is that, while there are plenty of excellent scientists, there are few people with extensive experience in drug development – an area that is still in its infancy in China.

That means that multinationals have needed to recruit a significant number of overseas Chinese from labs in the US and Europe to take leadership positions – something that nullifies much of the cost advantage there might be to conducting research in China.

At a time when the industry struggling elsewhere, there is no shortage of overseas Chinese scientists wanting to come back.

At first, it was quite hard work to lure back talented researchers, says Mr Zhang at AstraZeneca, but now there are no problems.

Because of the large number of drug research facilities established in Shanghai, there is also now a critical mass of suppliers of the instruments and chemicals that are vital for research.

There are some obstacles, however. Drug companies experience considerable problems shipping biological samples while the regulatory environment for early-stage clinical trials is also extremely complicated.

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04/28/10

Permalink 08:34:44 am, by dacare, 780 words, 695 views   English (US)
Categories: Pharma, Biotech & Healthcare

Charles River to buy WuXi Pharma for $1.6b

The purchase of China’s WuXi PharmaTech Inc. will give Charles River Laboratories International Inc. the ability to offer drug makers one-stop shopping for preclinical drug development and testing, executives of both companies said yesterday.

Charles River Labs, a drug testing contractor based in Wilmington, agreed to acquire Shanghai’s WuXi (pronounced who-shee) in a cash and stock deal valued at about $1.6 billion.

The alliance is a good fit because the two companies serve a similar client base of leading pharmaceutical and biotechnology companies in the United States and Europe but provide different services, said James C. Foster, chief executive of Charles River, who will lead the combined company.

While the Massachusetts company conducts animal tests for drug developers before clinical trials, its new Chinese partner, among other things, manufactures the primary ingredient in drugs — known in the industry as the API, or active pharmaceutical ingredient, the substance in drugs that is biologically active.

“We’re doing this because our clients, particularly large pharmaceutical and biotechnology companies, want to buy an increasing number of services from a smaller number of providers,’’ Foster said in an interview. “We want to be one of those providers.’’

Edward Hu, the WuXi chief operating officer who oversees US operations, said the deal will allow his company to expand faster, and serve a broader customer base, than it could have on its own.

“It creates a formidable company in the early development space,’’ Hu said in an interview, citing the ability to handle a range of services for clients, from designing molecules to safety and animal testing. “No other service provider has this capability today. This is going to reshape the pharmaceutical and biotechnology industry.’’

But investors apparently thought WuXi stockowners got the better part of the deal, which the boards of both companies have approved. Shares of Charles River tumbled $6.22 (15.6 percent) to $33.55 on the New York Stock Exchange yesterday, while WuXi shares vaulted $2.84 to $19.41, a 17.1 percent gain.

Charles River agreed to pay $21.25 a share for the Chinese company. That includes $11.25 in cash and $10 in Charles River common stock. The deal represents a more than 25 percent premium over WuXi’s closing stock price Friday. It is expected to be completed some time before the fourth quarter.

The merger reflects a consolidation trend among both drug makers and the companies that provide services to them.

Increasingly, many drug makers have been outsourcing development and testing services to contract research organizations, such as Charles River and WuXi, and focusing their own efforts on clinical trials and marketing. The outsourcing business, which allows drug makers to cut costs and increase their speed to market, has been growing by an estimated 30 percent annually.

“This is another way of reducing risk,’’ said Harry Glorikian, managing partner at Scientia Advisors, a Cambridge consulting firm that focuses on life sciences. “It’s less risky for large pharmas to outsource their drug development functions and become marketing shops pushing these drugs onto consumers. When you think about it, this is similar to Procter & Gamble or Dell outsourcing component design.’’

Under their definitive agreement, the combined company will retain the name Charles River Labs and its global headquarters in Wilmington. The Chinese operation will continue to be called WuXi and be run by its existing management team of mostly Chinese-born, US-educated executives.

WuXi was one of the companies visited by Governor Deval Patrick on a trade mission he led to China in 2007. The company currently serves about 20 customers from Massachusetts, including Vertex Pharmaceuticals Inc. of Cambridge.

While the deal helps to cement the role of China as low-cost venue for drug development, Charles River’s Foster said he expects operations in Wilmington will expand as the company grows. Charles River also plans to reopen in 2012 an animal testing site in Shrewsbury where it suspended operations early this year because of a slowdown in business from its customers in the Boston area, Foster said.

“Our footprint will get larger in Massachusetts,’’ he said.

Charles River, which had $1.2 billion in sales last year, employs about 8,000 workers worldwide, including more than 800 in Massachusetts. The company was founded by Foster’s father, veterinarian Henry Foster, in 1947. It went public on the Nasdaq exchange in 1968, and was purchased by medical technology company Bausch & Lomb in 1984.

A management group, led by James Foster, repurchased the company in 1999 through a leveraged buyout and took it public again in 2000, this time on the New York Stock Exchange.

WuXi, a 10-year-old company that posted revenue of $270 million last year, is the largest Chinese maker of chemical compounds for the pharmaceutical industry. It acquired three US research sites in 2008 when it bought Minnesota-based AppTec Laboratory Services Inc. WuXi employs about 4,000 workers worldwide.

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04/20/10

Permalink 02:42:45 pm, by dacare, 2827 words, 2063 views   English (US)
Categories: Opinion and View

No Short-Term Solution to China's Talent Gap - Global Staffing Strategy

Substantial challenges exist identifying and recruiting the right high-tech telecommunications staffing talent in the Chinese market. In fact the need for high tech telecommunication leadership talent, for example, has produced a staffing gap in China that no longer remains balanced. Many view China's immense market as the long-unchanging high tech industry's biggest promise for growth. "Therefore it is critical that companies have a full understanding of their particular stage of globalization and seek to recruit the right leadership talent for that stage" (Luo, 2007, p. 1). Different needs develop at different stages of globalization. A comprehensive strategy for the acquisition of a company in China will prepare the expected audit of HR systems. "I define 'strategic staffing' as the process of identifying and addressing the staffing implications of business plans and strategies, or better still, as the process of identifying and addressing the staffing implications of change, " (Bechet, 2000, p. 1). Challenges to the strategy might arise because of this acquisition--that include unequaled cultural and regulatory factors. This prepared staffing strategy should help make the Chinese acquisition a flourishing investment undertaking for each entity.

It is imperative to associate the company objectives with the globalization concept when considering a staffing strategy. Objectives will prove easier since China has entered the World Trade Organization in 2002. Plus, its continued liberalization of rules governing foreign investment can ease the transition. A difficult challenge remains comprehending exactly where Chinese operation stands according to corporate evolution; then, staff must be recruited to match. Awareness of this fact will prevent detrimental stumbles. A lot of companies in China's market today find themselves at this beginning development stage. "Indeed, with surprising frequency, foreign companies operating in China have tended to make identical hiring mistakes at each stage of evolution of their operations there" (Luo, 2007, p.1). The company must deliberate if a candidate succeeded at a company at a like developmental stage. The company realizes a general manager candidate must do what it takes to close a deal. Human Resources must also realize that present relationships a general manager candidate might bring to the job might not be of much value. Much of this results from important clients altering their inner decision-making dynamics. At a testament to this realization, three major Chinese telecommunications companies replaced CEO's in 2004 (Luo, 2007). This fact, alone, could cause middle management modifications. Another consideration includes, "general manager candidates who are accustomed to working in a multinational environment with far more advanced supporting infrastructure and whose core competency is to mange resources may find it a stretch to produce results-oriented, hands-on salesmanship" (Luo, 2007, p. 1).

While recruiting and staff of employees proves challenging in any market, it proves especially so in China since there is a deficit of management and executive talent (much of the labor shortage due to the lack of pragmatic training). "Under the pressure to move quickly in China, companies must resist the temptation to hire leaders who appear to be candidates generally but who lack the specific skills required for success at the company's particular stage of globalization" (Luo, 2007, p.1). The management of human resources and incorporating the present talent from the two companies in the acquisition might prove challenging. Without a doubt, ineffectual management consolidation may significantly influence the company's vision. Human Resources must reduce the distance between gaps in the two companies, both culturally and geographically. The merger will realize the challenge of differences in business cultures and practices. Realizing all these factors, HR strategy employs a sponsored-mobility approach. When considering staffing, career, and succession systems in respect to "sponsored versus contest mobility norms" Rosenbaum found a "sponsored-mobility approach stresses the early identification of talent. Firms following this norm attempt to benefit from the efficiencies of specialized training and socialization by providing high-potential candidates with challenging assignments and other opportunities believed to be conducive to employee development" (Dreher & Dougherty, 2001, p. 25). China creates a great challenge since the cultural differences (language, particularly) obviously remain immense. Additionally, interaction with leaders in China proves limited.

Not uncommon in other countries (like Czechoslovakia; for example), the Chinese people see those they work with as part of the family—extended. The "personal" element comes much more into play: the manager finds himself (or herself) looked up to like one would an older brother or sister; sometimes giving guidance on personal matters (even performing personal "undertakings." In contrast, this type of behavior in America may be construed as "playing favorites" or unjust exaction. The complexity of this personal employee relationship in conjunction with the context of the workplace must remain at the forefront of Human Resources staffing considerations. In reality, this sort of workplace extended-family culture often precipitates business agreements. Additionally, though, this type of employee/employer relationship construction may produce organizational structure changes.

In the vein contrasting cultures, regulatory factor differences must be regarded. As mentioned previously, China's World Trade Organization status has allowed ameliorated foreign approach—particularly to the service sector (most regulated) in China. This fact, in itself, has granted additional participation in financial, telecommunications, professional services, insurance, etc. A lot of mix-up abounds concerning China's obscure 2001 Labor Law; which creates many ways of reading it from each side. A challenge lies in establishing clear guidelines for each side (since labor regulations appear lacking). Complications arise in staffing a multinational enterprise due to political, economical, legal, business, as well as cultural implications. The effectiveness and acceptability of Human Resources management rides on these factors. The company attests exhaustive cognition of Equal Employment Opportunity policies and their application in the acquired workplace. In this time of war, HR remains cognizant of final regulations clarifying the responsibilities of employers of military veterans according to the Uniform Services Employment and Re-Employment Rights Act of 1994. The law requires employers to reinstate returning service members within two weeks after they apply for reemployment. Returning veterans must be afforded the status, seniority, and pay they would have attained had they remained continuously employed.

Additionally, usually, staffing policies for the host country won't come written with the vantage point of the parent's. Arun Kottolli in "International Staffing Strategy" makes a fine point when he realizes, "Often this tends to be parochial and ethnocentric resulting in tensions between parent and subsidiary management. Often the subsidiary management will not directly point at the problem in the company's HR policies, especially if the policy was written by the 'headquarters.' As a result real reasons are not noticed until it is very late" (p. 1). Ohme in his book, "Borderless world," argues that companies should do away with the "headquarters" mindset and appropriate subsidiaries more freedom. "This freedom is more important in framing HR policies. The main point companies must learn that the HR policies followed at home may not be applicable in the host country" (Kottolli, 2007, p. 1). Human Resources will need to study the regional market circumstance and ply to it. It would behoove the company to take in major executives of the acquisitioned business to join the parent's top management. Current Human Resources polices must change since their policies don't apply to the company acquired.

Establishing loyalty and bonding between both companies starts with an internal recruiting procedure. Even entry level jobs will have a title, as Chinese culture ascertains the prestige of such. This will aid in appealing to potential recruits. However, the title significance could bring about organizational structural changes. The facilitation of early staffing will prove easier with the availability of an intranet Web site. Potential job candidates may view job postings on the Internet, various international newspapers, university/college newspapers and collegiate bulletin boards. An appraisal questionnaire assesses fundamental skills, while the application provides needed information for Human Resources (enabling a selection process). Then, HR can select candidates after an interview. They will not allow the candidate's nationality to blind their decision concerning the best candidate for the position. Selectivity in recruiting remains paramount. "Hiring the right people means more than just securing employees who possess the knowledge, skills, and abilities required to perform a particular job; these people must also be able to acquire new knowledge and skills as jobs and environments change. In addition, employees must find that the work is satisfying and that the overall organizational climate and reward structure meets their needs" (Dreher & Dougherty, 2001, pp. 10-11).

From past foreign acquisitions, history shows a large degree of expatriate applications—producing a good mix with internationals. The lack of skilled management in China assures many expatriate applications. The labor shortage in China should produce a great number of young applicants (especially at the collegiate level). To direct the foreign subsidiary, Human Resources will appoint a home country national to build the parent company's corporate culture in the adjunct. "While this reduces the communication between headquarters and the subsidiary and increased control by the headquarters, this policy has serious disadvantages. The cultural differences and environmental differences will be huge and expatriates may not be able to cope with. Thus resulting in costly management mistakes" (Kottolli, 2007, p. 1).

Human Resources considers the staffing strategy in as a longer-term context. And within this context, increased effectual shorter-term staffing determinations prove ascertained. This near-term aim might gain the attention of managers finding themselves assessed by and rewarded for attaining shorter-term targets. "Because it helps define appropriate short-term actions, it is more likely that the same line manager making the
staffing decision will still be in place to rap the benefits of that decision later on" (Bechet, 2000, p.1). The staffing focus will not remain on implementation concerns. Human Resources will deal with staffing from a planning perspective that's proactive. Those staffing realize, "staffing constraints (e.g., an inability to recruit a sufficient number of individuals with critical skills) may impact the company's ability to implement its plans. These constraints should be identified and addressed as part of the planning process, not left as surprises to be uncovered when implementation begins" (Bechet, 2000, p.1). No long-term staffing strategy proves necessary Human Resources may fill a job position internally (comparatively quick). This, too, saves time and resources. Top managers the company acquires from the acquisition could prove the most valuable asset: they know the market.

Human Resources often spends too much time on data and tables—devising reports and other staffing-related information (often the volume of planning data). For the merger of the acquisition staffing, the focus remains on acting and planning—not just reports. For example, if "you reallocate staff because of something you discern from a data table, then that data has become information. When it comes to staffing, make sure you provide managers with information, not data. If your reports provide managers with data that is simply 'nice to know' or 'interesting' but doesn't directly influence decision making, don't provide them" (Bechet, 2000, p.1). As result, organizational effectiveness increases remarkably. However, Human Resources realizes the extreme importance of auditing HRM practices and departments. "Finally, we bring to your attention a concept refined in the writing of Devanna, Fombrun, and Tichy: the evaluation of the HR function by way of the human resources management audit (HRMA).22 Any audit is typically considered to be a first step in an improvement or change effort" (Dreher & Dougherty, 2001, pp. 30-31).

Additionally, effective training and development proves paramount to increasing organizational effectiveness. English remains at the top of the list of those training and developmental programs. Writing for business, job-specific training, and skills in presentation top the list. Available training exists for retained management in both companies—classes ranging from managing resources, leadership, coaching, and stress and time management. A focus lies in cross-utilization and cross-training. Another perspective of training and development demonstrates orientation "driven by the need to be flexible and able to utilize employees even during times of production slowdowns. When people are able to perform multiple jobs, or are multiskilled, they represent a reserve of talent and are more likely to appreciate how their work and output levels affect the work of other employees in jobs related to their own...times when multiskilling is important and times when it is not" (Dreher & Dougherty, 2001, pp. 14-15). Human Resources will offer an overall understanding of Chinese business patterns and culture to all employees at both companies facilitated through simulations, as well as face-to-face. Human Resources realizes they, "must temporarily forget the old colonial model that often underpinned the multinational stage in which the parent company simply tries to reproduce itself on foreign soil, often transplanting managers from the home country in order to ensure that copy is accurate" (Luo, 2007, p.1). Human Resources will recognize its own strengths and weaknesses. And it will look for candidates for training and on-the-job experience to satisfy its own skill gaps. Despite cultural difference, HR has a working comprehension of the significance of gender in the work environment and overall development. They ensure the consideration of cultural averages in delineating actions and outcomes developed by the team.

First, HR defines the staffing levels and sum of employees needed (and their capacities) for strategy implementation. Staffing resources presently available require assessment. The strategy (through plans and action) will close talent gaps. "Successful implementation of a strategic staffing process lies no in how these basic steps are defined. The 'devil is in the details'—or perhaps more appropriately in this case—the devil is in the implementation. It is not the steps themselves that are important, it is how they are developed and implemented that counts" (Bechet, 2000, p. 14). Part of the equation does not include predicting future staffing. Simply, a context for decision making proves paramount. Again (as previously mentioned) emphasis lies in proactiveness—a planning perspective. HR wants the implementation of its strategy to result in the new Chinese acquisition taking on the status of a prospector firm. "Prospectors attempt to be the first to market with new products and services. These firms rely on innovation, flexibility, and speed. They exploit new market and product opportunities" (Dreher & Dougherty, 2001, pp. 9-10). HR also realizes the paramount nature of strategic perspective: that staffing needs prove optimally met in manners that call for some beforehand preparation. An approach under consideration includes contacting graduate students to develop a relationship with them before their job market availability. These contacts might include internships, as well as a series of presentments. The development of these contacts should increase the likelihood of the graduate student working for the company at school's completion. Staffing strategy will remain constant—an ongoing process (not just a yearly thing: implemented and updated regularly). Additionally, it may prove wise to integrate scenario planning into strategic planning. Each scenario could have dissimilar staffing entailments. HR will ascertain which scenario might occur and determine staffing plans accordingly. To cover this approach best HR assesses staffing requirements for every likely scenario. Then, look for things the scenarios have in common.

In summary, "China's talent gap will not be solved in the short term. In fact, it is likely to get worse before it gets better. Therefore it is critical that companies have a full understanding of their particular stage of globalization and seek to recruit the right leadership talent for that stage" (Luo, 2007, p. l). Human Resources realizes the different needs of a company at different stages of globalization. In order for an effective implementation strategy the newly expanded company (whose revised strategy has resulted in an acquisition in China's market) masters the significance of the connection between business objectives and the concept of going global. Tremendous stakes remain possible. The liberalization of rules governing foreign investment has enabled better business transactions with the country. A comprehensive strategy for the acquisition of a company in China will prepare the expected audit of HR systems. Challenges to staffing strategy may transpire because of this acquisition. These include unequaled cultural and regulatory factors. This prepared staffing strategy should help make the Chinese acquisition a thriving investment project for each company. Though staffing and recruiting of employees proves challenging in any market, it proves especially so in China since there is a deficit of management and executive talent—a lot of the labor shortage because of the deficiency of practical training. Human Resources must lessen the distance between gaps in the two companies on both the cultural and geographic levels. The merger will actualize the challenge of conflicts in business cultures and practices. Knowing all these factors, HR strategy uses a sponsored-mobility approach. The complexness of the Chinese personal employee relationship in conjunction with the context of the workplace must remain at the forefront of Human Resources staffing considerations. A lot of confusion exists about China's vague 2001 Labor Law. Many interpretations abound from each side. Another challenge lies in laying down clear guidelines for each side as result of lax labor regulations. Human Resources looks at the staffing strategy in as a longer-term context. So, within this context increased sound shorter-term staffing decisions prove ascertained. Difficulties develop in staffing a multinational enterprise as consequence of political, economical, legal, business, and cultural entailments. The effectiveness and acceptability of Human Resources management depends upon on these factors.

Written by DG Farnsworth

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04/19/10

Permalink 11:31:07 pm, by dacare, 364 words, 343 views   English (US)
Categories: Candidates, Labor and Worker

Microsoft's China factories break labor rules

GUANGZHOU, China — Two factories that make Microsoft Corp. products in southern China violated overtime regulations and failed to properly register the use of workers aged 16 to 18, officials said Monday.

The problems at the plants in the city of Dongguan were initially raised last week by the National Labor Committee, a New York-based nonprofit that monitors the treatment of foreign workers by U.S. companies. The group alleged that the teen laborers worked long shifts and were not allowed to use bathrooms during working hours at the plants, owned by Taiwan-based KYE Systems Corp.

The factories make Webcams, computer mice and Xbox controllers for Microsoft, the world's biggest software company.

Investigators with Dongguan's human resources bureau said in a report that factories are allowed to hire workers between the ages of 16 and 18 as long as the laborers are registered with the authorities. The KYE factories had 385 such workers — most supplied by vocational schools — and 326 weren't properly registered, the report said.

Employees were also forced to work an excessive amount of overtime in March, clocking about 280 hours, the report said. Copies of the labor contract also weren't given to employees, the document said.

But officials said that based on interviews with workers, there were no restrictions against using the restroom during shifts. The report said the company's policy was to give workers 10-minute breaks for every two hours worked.

KYE Systems Corp. spokesman Lai Jin-hui told The Associated Press, "Assembly line workers are allowed to go to bathroom only if they report the need."

Lai insisted that factories did nothing wrong regarding overtime and had followed regulations that limit the workweek to 60 hours. But Lai acknowledged that the factories failed to properly register workers and would now fix the problem.

The human resources bureau report said the factories have been ordered to comply with the law and would be monitored closely.

Last week, Microsoft said it does quarterly onsite assessments and gets weekly reports from KYE about certain labor and safety criteria. The software maker said a team of independent auditors would visit the factories and monitor the situation pending results of its inspection.

Associated Press writer Annie Huang in Taipei, Taiwan, contributed to this report.

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Permalink 11:27:17 pm, by dacare, 268 words, 590 views   English (US)
Categories: Banking & Financial Services

ICBC Hires Deutsche's China Head

SHANGHAI—Industrial & Commercial Bank of China Ltd. said Monday it appointed the chairman of Deutsche Bank AG's China operations as a vice president.

ICBC, China's largest commercial bank by assets, has been expanding its footprint outside its home market since it raised $22 billion in the world's largest initial public offering in 2006, such as through acquisitions and by opening outlets.

ICBC said the appointment of Zhang Hongli, who also served as head of the Asia-Pacific region for Deutsche Bank's Global Banking division, is still subject to the approval of China's banking regulator.

"The board of directors is of the view that Mr. Zhang Hongli is familiar with international financial markets and circumstances of the country and is experienced in the management of international banks," ICBC said in a statement on the Hong Kong Stock Exchange's Web site.

Mr. Zhang, 45 years old, joined Deutsche Bank in 2001. Prior to that, he worked for Goldman Sachs Group Inc., U.K. asset management firm Schroders PLC and computer maker Hewlett-Packard Co.

Officials at Deutsche Bank in China weren't immediately available for comment.

Deutsche Bank is the largest shareholder of medium-sized Hua Xia Bank Co., with a 17% stake. The German lender also owns one-third of Zhong De Securities Co. and 30% of Harvest Fund Management Co.

In September, ICBC agreed to buy part of ACL Bank PCL in Thailand. In 2007, it bought a 20% stake in Standard Bank Group Ltd., South Africa's largest banking company by assets, for $5.4 billion. That same year, it also bought a 79.93% stake in Seng Heng Bank Ltd., Macau's third-biggest bank, and a 90% stake in Indonesia's PT Bank Halim.
—Rose Yu

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Permalink 01:44:30 am, by dacare, 380 words, 421 views   English (US)
Categories: Candidates, Labor and Worker

Deloitte To Spend More Money In China For Business Expansion

BOAO, CHINA (Dow Jones)--Deloitte Touche Tohmatsu International, one of the world's big four accounting firms, will put an additional $100 million in China in the coming years to support its business and staff expansion in one of the world's fastest-growing markets, the company's chief executive said over the weekend.

China is Deloitte's fourth-largest market in terms of employees, with more than 8,000 people in 13 cities across mainland China, Hong Kong and Macau. Its business includes auditing financial results of companies, helping companies to prepare tax returns, and consulting.

"Deloitte is committed to China. An 8% growth rate and the prospect of sustaining superior growth going forward makes it an attractive place for a professional services firm to want to be," CEO James Quigley said on the sidelines of annual Boao Forum, a gathering of government and business leaders on the southern Chinese island of Hainan.

"When I have made my investment decisions as the CEO of Deloitte, the market where we are investing the most is in China," he added.

In 2004, Deloitte announced a $150 million investment for its China business over five years, with the lion's share of the money having gone toward recruiting and retaining staff.

"We've now expanded. So another $100 million is coming this direction as we continue to want to grow our business here, and take advantage of the opportunities available to serve China companies and to serve companies outside of China who want to invest here," said Quigley.

He added the $100 million would be invested over three to five years.

Christopher Lu, Deloitte chief executive officer for China, said the company will continue to hire between 1,000 and 2,000 workers in China annually as part of its expansion.

"If you look at complex transactions, for instance, derivatives and others, you need to have experts that truly understand these areas," he said. "We spend a tremendous amount of our annual operation funds in training and developing people."

In June, Deloitte will set up a team in Hong Kong of senior managers from 16 countries to help Chinese companies with tax services for international investments.

Deloitte's main target clients in China are large state-owned enterprises, private companies, multinational corporations and high-potential rapid growth enterprises, particularly in the technology sector.

-Rose Yu contributed to this article, Dow Jones Newswires; 8621 6120-1200; rose.yu@dowjones.com

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Permalink 01:41:58 am, by dacare, 248 words, 446 views   English (US)
Categories: Banking & Financial Services

DBS to hire 20% more people for China business

By SIOW LI SEN

DBS Group Holdings will be hiring 20 per cent more people for its business in China which currently employs 1,000 staff.

'Amid the significant wealth creation that rapid growth brings, this year, DBS China will ramp up its priority banking business, which caters to customers with at least RMB 400,000 in investible assets,' the bank said Tuesday.

DBS has been expanding rapidly in China - Asia's fastest growing economy for the last decade - and is competing fiercely with other foreign banks to increase its presence.

DBS forecasts that China's economy will expand 9.5 per cent this year.

HSBC China said this month the company expects to add 19 new branches this year to its existing 99 outlets, according to a Reuters report.

DBS China currently operates out of eight branches and seven sub-branches across China, has applied to regulators to open more branches, the bank said.

'DBS China also intends to add about 200 staff to its existing headcount of close to 1,000 employees this year,' it said.

More than half of the recruits will be for client-facing roles in priority banking, with the rest slated for positions in institutional banking, treasury and markets as well as support units to keep pace with rapid business expansion, it said.

DBS Bank, Southeast Asia's largest bank will commit over $1.5 million in the upcoming World Expo 2010 to raise its brand presence, it said.

Starting in June, the six-month World Expo which has drawn participation from 200 nations is expecting an estimated 70 million visitors.

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Permalink 01:41:26 am, by dacare, 180 words, 713 views   English (US)
Categories: Candidates, Labor and Worker, Technical, IT Recruiting

ZTE to Send Back Chinese Staff to Hire Indian Employees

Telecom equipment provider ZTE is likely to send 250 Chinese employees back as it is obliged to recruit Indian employees in all of its operations in India over the next 3 years.

The move has taken place in the wake of the release of the Government's directive, last month, which expects all the foreign telecom equipment companies in India to employ only Indian engineers.

At present, out of the total 2,300 staffers of ZTE in India, 15% are Chinese. The company has been planning to recruit another 1,000 engineers by March 2011.

The company's unit in India contributes to over 10% its global revenues, which was reported to be $8.8 billion in fiscal 2009-10.

DK Ghosh, Chairman, ZTE Telecom India, "It is part of our localization policy and has nothing to do with the department of telecom (DoT) directive".

Mr. Ghosh added that around 95% of ZTE's manforce in India constitutes engineers. The move, as directed by the Government, will reduce its Chinese staff strength to merely 3%.

The Government's directive, called DoT, was issued in March, asked for a strict adherence of the foreign operators to the new instructions.

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Permalink 01:40:59 am, by dacare, 474 words, 499 views   English (US)
Categories: Candidates, Labor and Worker, Technical, IT Recruiting

Microsoft to Probe Conditions in China

By NICK WINGFIELD

Microsoft Corp. said it is investigating allegations of worker abuse at a factory in China that makes computer mice, cameras and other devices for the technology giant.

The move was prompted by a report published this week by a Pittsburgh-based human rights advocacy group, the National Labor Committee, which alleges a factory in Dongguan, China, operated by KYE Systems Corp. overworks young employees and houses them in harsh conditions.

Microsoft devices represent a significant portion of the products made at the factory, though KYE makes products for other companies there as well, according to the report.

"The factory was really run like a minimum security prison," Charles Kernaghan, director of the National Labor Committee, said in an interview.

In a statement issued in Taiwan, where it has headquarters, KYE Systems said it has never hired workers under 16, and that its employees get one day off every seven, with extra hours in peak season but never more than 12 hours a day. It said that while its wages are low by U.S. standards, they are in accordance with Chinese regulations. "We regret that the NLC reported a one-sided story without offering us a chance to explain," the statement said. The company's Web site says it employs between 3,600 and 4,500 workers in China, depending on seasonal demand.

In a blog post on Thursday, Microsoft executive Brian Tobey said, as a result of the National Labor Committee's report, the company has "a team of independent auditors en route to the facility to conduct a complete and thorough investigation."

Mr. Tobey said Microsoft auditors inspect KYE facilities annually and haven't detected violation of child labor laws for the past two years. He said worker overtime "has been significantly reduced" at the factory and that compensation is in line with labor standards for the area where the factory is located.

Mr. Tobey is corporate vice president of manufacturing and operations for the Microsoft unit that makes the Xbox videogame console, the Zune music player and other hardware.

The National Labor Committee report alleges KYE recruits employees many of whom are 16 and 17 years old to work 15-hour shifts six to seven days a week, paying them 65 cents an hour—or 52 cents an hour after deductions for food.

Workers are housed in cramped quarters in factory dormitories and prohibited from talking, listening to music or using the bathroom during work hours, the report says.

The report is another sign of growing scrutiny of the companies the technology industry widely relies on to make electronics products.

In February, Apple Inc. said an internal audit of its suppliers last year uncovered more than a dozen violations of the company's labor policies, including several in which contractors hired underage workers. Apple began auditing worker conditions after reports of worker abuses at Chinese factories that made iPods.
—Ting-I Tsai contributed to this article.

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Permalink 01:38:20 am, by dacare, 280 words, 681 views   English (US)
Categories: Investing in China, Technical, IT Recruiting

Facebook steps up efforts to expand into China

After news last week that Facebook, the world's largest social networking service (SNS), aims to enter the Chinese market, a domestic head-hunting company disclosed that Facebook has hired it to recruit the person to manage its business in China. This signals Facebook's timetable to enter the Chinese market is drawing nearer.

According to the recruiter, Facebook wants to hire a general manager overseeing its Chinese operations and this person would be based in Beijing.

But according to the detailed description of the post, the company also wants this person to lead the SNS game lab team to make products for the western market, and the position may match the requirements for a person leading a research institute in the Chinese market.

Also, the head-hunting firm said that Facebook was hoping the person would be from its headquarters, but the firm does not want to exclude those who are interested in the post to apply.

According to last week's information, Facebook may enter Chinese market as soon as in three months, and this latest recruitment announcement adds fuel to the possibility.

But according to local media reports, in order to enter the Chinese market now, Facebook may only just establish the research institute first. According to the requirements of the position, the products designed by the lab are mainly aimed for the western market, which means that Facebook will not launch products for the Chinese market for a while.

Nevertheless, an insider from the recruiting company said that if Facebook wants to enter the China market, it first needs to set up a management team and begin its relations with the Chinese government, which is only still in its preliminary stages.

Sponsor Link: The leading executive search firm in China

04/11/10

Permalink 10:44:01 pm, by dacare, 763 words, 1017 views   English (US)
Categories: Candidates, Labor and Worker

How to Get a Raise - 6 personality traits that will impress your boss and increase your salary

6 personality traits that will impress your boss and increase your salary
by Sara Eckel, PayScale.com

You work hard--meeting deadlines, delivering results, and showing up on time. But each year you've been getting a raise in the measly 2 percent range (if that). Meanwhile, certain coworkers stroll out of their review meetings with big smiles on their faces.

Why do some people get a fat, juicy slab of the pie while others are offered crumbs? Experts say that, of course, diligence and talent play their part, but if you really want to increase your salary, you'll need these qualities:

1. An Owner's Mentality

Many people go into their annual review with a list of reasons that they need more money. But Joel Rudy, vice president of operations for Photographic Solutions, a supplier of digital-camera cleaning products, says that such pleas don't inspire employers to give raises. "I know that utilities have gone up," he says. He is more impressed with people who apply those inflationary concerns to the business--as if it were their own. For example, he was recently impressed with an employee who found a less expensive phone plan for the company. "Now, that's a raise-getter!" he says.

2. Forward-Thinking

While the people who get good raises definitely know how to highlight last year's achievements, Laura Browne, a corporate trainer and the author of "Raise Rules for Women: How to Make More Money at Work," says the highest earners don't dwell on the past. "Forget about last year. Find out the key initiatives that your company or your president wants to achieve this year," she says. For example, if the president said in the annual report that he wants to increase customer satisfaction by 15 percent, focus on that goal. "Your work needs to be connected with what the company cares about right now," says Browne.

3. Visibility

If you stay cloistered in your cubicle, you'll probably be disappointed when raises are announced--no matter how hard you work. "Quiet, shy, or otherwise invisible types are often left behind when it's pay-raise time," says Jane Goldner, PhD., president of The Goldner Group, an Atlanta-based consulting firm. To ensure that you and your hard work are seen, request projects that will get you in front of others--working with colleagues from other departments, giving presentations, or even contributing to the company newsletter. This will make it easier for your boss to plead your case to any necessary approvers. "If your boss is in the meeting and says, 'I want to give a raise to Sally,' it's going to be hard if no one knows who Sally is. On the other hand, if you have been visibly helpful, they'll say, 'Oh Sally, She's terrific!'" says Browne.

4. Charisma

Having great ideas and lofty goals is terrific. But if you want to see them executed, you also have to motivate others to rally around your initiatives. Executive coach Lisa Chenofsky Singer says these kind of interpersonal skills play a huge role when compensation is discussed. "Although someone may be competent from a technical-qualifications perspective, if their style doesn't flow well with others or they're not able to influence others, they tend to be the low-increased players," she says.

5. Tough Skin

No boss will ever say, "I love to give raises to self-promoters." So how do you draw attention to your achievements without looking like a braggart? Milan P. Yager, president and CEO of the National Association of Professional Employer Organizations, says that giving your boss a quarterly progress report and asking for feedback is a subtle way to get noticed. "It is a fine line, but if you can master the technique, it will pay rewards," he says. And letting your supervisors know that you want criticism will show them that you have the confidence to handle any negative comments, which makes the evaluation process a lot less stressful for them.

6. Empathy for the Boss

The highest-earning employees understand that their job is to make their boss's life easier. Think about the things that your boss doesn't like doing--running meetings, tracking numbers--and ask if you can help by taking over those tasks. It's also important to understand that your boss can't always give you what you want, no matter how great your work is. "Most people get keyed up to ask for a raise and when they hear 'no' they respond really negatively," says Browne. "If you instead say, 'I understand, but when raises are unfrozen I would like to be the first in line,' you'll have a much better chance of getting the raise when they can give it."

Sponsor Link: The leading executive search firm in China

04/02/10

Permalink 12:41:10 am, by dacare, 58 words, 544 views   English (US)
Categories: Banking & Financial Services

Bank of America Will Expand China Business, CEO Moynihan Says

Bank of America Corp. said it’ll expand its China business and hire more staff to tap growth in the world’s most populous nation, according to its chief executive officer Brian Moynihan.

“We are committed to our business here, not just the capital, more importantly the human capital,” Moynihan said during a press event today in Beijing.

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Permalink 12:40:23 am, by dacare, 209 words, 389 views   English (US)
Categories: Candidates, Labor and Worker, HR News Express

Genpact to hire 6,500 in China by 2015

Genpact, the back-office services provider, on Tuesday said it plans to scale up its operations in China and increase its headcount by 6,500 in that market in the next five years.

"China and Japan are an important market for us. It contributes about 10 per cent to Genpacts overall revenue. We plan to take our headcount in China to 10,000 in the next five years," Genpact CEO Pramod Bhasin told media.

Genpact, at present, has two centres in China which employs about 3,500 people.

The BPO firm today also inked a multi-year deal with Japan's Hikari Tsushin to provide services to Hikari's clients in Japan and China.

Genpact had signed the contract with Hello Communications, a 100 per cent subsidiary of Hikari Tsushin to provide customer service, finance and accounting, IT infrastructure support and back office processing to Hikari.

"The deal with Hikari will allow us to further expand our footprint in the Chinese and Japanese markets," Bhasin said.

He added that the tenure of the deal could be 3-5 years, however, he declined to share details about the size of the deal.

Shigetaro Toyoda, CEO of Hello Communications said, "The integration of the sales and marketing skills of Hikari Tsushin and Genpact's services will enable a faster time-to- market and lower operating costs."

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Permalink 12:38:16 am, by dacare, 82 words, 571 views   English (US)
Categories: Investing in China, Manufacturing & Industry

Foxconn to hire in China

EMS-giant Foxconn is said to hire for its PC manufacturing factory in the Chongqing Xiyong Microelectronic Industrial Park in China.

EMS Foxconn is reportedly set to hire a further 6'000 staff over the next half year for the facility, with plans to reach a total work force of about 10'000 next year, reports CENS.

The EMS-provider currently employs around 1'000 staff at the Chongqing facility, which manufactures PC for various customers. The company aims for an annual production output of 10 million notebook.

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Permalink 12:35:42 am, by dacare, 320 words, 540 views   English (US)
Categories: Banking & Financial Services

Chinese wealth management: a hiring boom waiting to happen?

Raymond Ma

It seems that every foreign bank wants to be top dog in China’s wealth management sector – and for good reason. When Forbes magazine published its list of the richest people in the world earlier this month, it singled out China for mention because it was the first year in which the country had the most number of billionaires outside the US.

“China is currently considered the most attractive wealth management market in Asia for international banks. The country has experienced very fast growth for an extended period, and this has helped to create a whole new generation of wealthy individuals,” says Harry Senlitonga, a senior analyst at research firm Datamonitor.

The most active foreign recruiters in China’s wealth management sector include UBS, Credit Suisse, Deutsche Bank, HSBC and Citi, according to a private banking headhunter who asked not to be named.

An increasing number of roles advising clients in China are expected to be based in Shanghai, rather than Hong Kong, which has traditionally been the hub for China-focussed relationship managers, adds the recruiter.

But while mainland vacancy volumes in wealth management are rising, the massive potential of this sector is yet to translate into a full scale talent war.

“I think recruitment for relationship manager roles has picked up slightly since the second half of 2009, but they are still nowhere near what I would call aggressive,” comments Cherol Cheuk, director of banking at recruitment firm Hudson.

Much of China’s wealth was created relatively recently, so the private banking industry is still undeveloped. Many rich individuals are unaware of wealth management models and/or unwilling to pay a professional advisor to help them invest their funds.

It is also difficult for banks to find the talent they need to expand their wealth management businesses on the mainland, adds Cheuk. Firms favour Chinese candidates who have strong relationships with small and medium business owners and entrepreneurs.

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Permalink 12:35:14 am, by dacare, 215 words, 334 views   English (US)
Categories: Candidates, Labor and Worker

More Western MBA Graduates Head For Hong Kong For Job Prospect

HONG KONG, April 1 (Bernama) -- More graduates of top business schools in Europe and the United States are turning to Hong Kong in search of work as Western countries struggle to emerge from the economic crisis, a school director said here Thursday.

In the past, New York and London were considered to be the cities of choice for top-notch MBA graduates.

But, since job markets in the West have slid downhill, the positive outlook for Asia -- with China as the region's economic growth engine -- has recently drawn more graduates to Hong Kong, an Associate Director at London Business School's career services recruitment team Richard Bland said.

He said dozens of graduates of London Business School, widely considered to be among the global top-five business schools, visited Hong Kong this week for unofficials meetings with figures at major financial institutions here, South Korea's Yonhap news agency reports.

Bland was in Hong Kong, arranging the meetings between the graduates and the eight financial institutions, which included Citigroup Inc.

Speaking to reporters, he said many students are starting to turn their attention to Asia, as it has rebounded rapidly from the financial crisis.

"Hong Kong has advantages over Shanghai or Beijing, as its sound financial system integrates China with the rest of the world," he added.

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Permalink 12:34:42 am, by dacare, 431 words, 589 views   English (US)
Categories: Banking & Financial Services

China Career Update: it's musical chairs time for mainland i-bankers

Raymond Ma

Welcome to the first of our weekly updates on the financial services job market in China.

It’s again that time of year when the most frantic job switching among front-office investment bankers takes place, and this is the case in China as much as anywhere else in the Asia.

Recent high-level mainland moves include HSBC’s appointment of Jane Wang – previously vice chairman for China investment banking at Nomura – as China chairman for corporate finance.

Meanwhile, Bank of America Merrill Lynch has reportedly hired former Goldman Sachs Beijing executive director Edmund Sim as its new director of China equity capital markets. Finally, Lee Zhang, China head at Deutsche Bank, has reportedly resigned from his current post to take up a senior role at the Industrial and Commercial Bank of China.

“This is the musical chairs season,” comments CK Wan, a senior client partner at search firm Korn/Ferry International. He says with most firms typically paying bonuses between January and March, bankers – who are unhappy with their jobs or are being lured away by competitors – are making a beeline for the door.

Poor capital markets have suppressed job-hoping activity in the last two years – in China as in most parts of the world – resulting in pent-up demand among bankers to move once there is an opportunity, says Richie Holliday, managing director for recruitment firm Morgan McKinley in Hong Kong.

“The volume of jobs we are aware of has increased hugely in the last 12 months, and most of that actually happened in the last quarter,” he adds.

Holliday expects investment banking vacancies to spike later this year, before settling back to more steady levels. All this bodes well for i-banking candidates – if they seize the moment.

“It means if you are an associate vice president somewhere, there is going to be an opportunity for you to make vice president quicker. It will mean a larger remit and broader responsibilities, which you would have had to work longer for a couple of years ago, or a couple of years hence,” says Holliday.

Compared with last year, when talent in China was snapped up by boutique and local investment banks, much of the hiring will be done by large multinational banks that are seeking to rebuild their revenue streams in Asia., he adds. Sales, trading and advisory roles will be most in demand this year.

Korn/Ferry’s Wan, who expects the current round of movement in investment banking to continue for another two months, adds that firms are on the lookout for bankers with deal origination and execution skill sets.

Sponsor Link: The leading executive search firm in China

03/24/10

Permalink 09:11:56 pm, by dacare, 1082 words, 907 views   English (US)
Categories: Candidates, Labor and Worker

Defying the global trend, China faces labour shortage

Keith Bradsher, The New York Times

Just a year after laying off millions of factory workers, China is facing an increasingly acute labour shortage...

Chinese workers enjoy their meal beside a billboard in Beijing . APAs American workers struggle with near double-digit unemployment, unskilled factory workers here in China’s industrial heartland are being offered signing bonuses. Factory wages have risen as much as 20 per cent in recent months.

Telemarketers are turning away potential customers because recruiters have fully booked them to cold-call people and offer them jobs. Some manufacturers, already weeks behind schedule because they can’t find enough workers, are closing down production lines and considering raising prices. Such increases would most likely drive up the prices American consumers pay for all sorts of Chinese-made goods.

Rising wages could also lead to greater inflation in China. In the past, inflation has sown social unrest. The immediate cause of the shortage is that millions of migrant workers who traveled home for the long lunar New Year earlier this month are not returning to the coast. Thanks to a half-trillion-dollar government stimulus programme, jobs are being created in the interior.

But many economists say the recent global downturn also obscured a longer-term trend: China has drained its once vast reserves of unemployed workers in rural areas and is running out of fresh labourers for its factories. Since China does not release reliable, timely statistics on employment, wages are considered the best barometer of labor shortages. And temp agencies here in Guangzhou raised their rate for factory workers this week to $1.17 an hour, from 95 cents an hour before the new year holiday. The rate was 80 cents an hour two years ago, before the global financial crisis temporarily depressed wages and demand. The dearth of returning migrants set off a desperate scramble this week to recruit the workers who did step off long-haul buses and trains returning from the interior.

At a government-run employment centre in downtown Guangzhou, employers seeking workers outnumbered job-hunters recently. Outside, Liang Huoqiao, a 22-year-old plastics worker, joined a small group of men and women studying a 40-foot-wide list of companies seeking workers. “You can walk into any factory and get a job,” he said.

The official China Daily newspaper said that surveys of employers showed that one in 12 migrant workers was not expected to return here to Guangdong Province. Cities farther north along China’s coast are also running low on labor; Wenzhou alone posted a shortage of up to one million workers. Guangdong provincial officials announced that they were considering increasing the minimum wage, which varies by city and ranges from $113 to $146 a month.

Higher wages could ease labour shortages by prompting factories to reduce their work forces. But many factories already pay well above the minimum wage. They are wary of further pay increases because it is not certain they can pass the increased costs on to their customers — in particular, strapped importers in the United States and the European Union.

Rising wages suggest the re-emergence of a worker shortage that was becoming evident before the financial crisis. A government survey three years ago of 2,749 villages in 17 provinces found that in 74 per cent of them, there was no one left behind who was fit to go work in city factories — the labour pool was dry.

Mass layoffs in late 2008 and early 2009 because of the global financial crisis temporarily masked the developing shortage of industrial workers. But two powerful trends were still working to reduce the supply of young people headed for factories.

For one, the Chinese government has rapidly expanded postsecondary education. Universities and other institutions of higher learning enrolled 6.4 million new students last year, compared to 5.7 million in 2007 and just 2.2 million in 2000.

At the same time, China’s birth rate has been sliding steadily ever since the introduction of the “one child” policy in 1977. Labour shortages have returned quickly in recent weeks as these long-term trends have collided with a recovery in overseas demand for Chinese goods.

Far more jobs are available these days in China’s interior. Government projects like rail and highway construction have absorbed millions of workers, particularly after Beijing allocated nearly $600 billion to economic stimulus spending in 2009 and 2010. Consumer spending is also rising briskly; auto sales more than doubled last month from a year before, and this has created many jobs in retailing, restaurants, hotels and other inland businesses.

Even before the holiday, companies were struggling to find the employees needed to keep assembly lines running. At many factories, white-collar managers and engineers were forced to spend time on assembly lines to meet deadlines before the lunar New Year, because laborers were in such short supply. The managers often struggled with the tedious but intricate tasks required to make everything from toys to DVD players. “People working in the office, like me, have been asked to help on the factory floor,” said Sky Niu, the Sales Manager at the Hengjia Electronics Company in Dongguan. “Of course, we can only help on the simpler tasks, such as packing.”

The labour shortage is not benefiting workers just through higher wages. Personnel managers here say they are also abandoning the informal tradition of not hiring anyone over 35 — they say they are now hiring workers up to 40 years old, and sometimes older, despite concerns about whether they can keep up week after week with the rapid pace of Chinese assembly lines.

It remains to be seen if Chinese factories will learn from their hiring difficulties now and be less quick to lay off workers during the next global downturn. The current system “is not stable, it’s not healthy,” said Han Dongfang, the Director of the China Labor Bulletin, a Hong Kong-based group that advocates collective bargaining.

Though the wage boost increases the prospect of inflation, it may have another more salutary aspect. The Obama administration has been pushing China to let the renminbi rise against the dollar, which would erode some of China’s formidable advantage in export markets. Rising wages in China have the same effect — while also giving Chinese families more spending power.

Letting wages rise benefits workers, said Jing Ulrich, the Chairwoman of China equities and commodities at J P Morgan. Letting the currency rise benefits currency speculators, she said. Liang, the 22-year-old plastics worker, said that he expected his pay to double in the next five years and added that he already had set his priorities.

“For sure, I want to buy a car,” he said. “Car first, then maybe marriage later.”

Sponsor Link: The leading executive search firm in China

Permalink 09:09:06 pm, by dacare, 1269 words, 1897 views   English (US)
Categories: News of China

Hotel Industry Staff Competition in China.

By René J.M. Schillings

This feature is not about the annual football match between the chef team and the engineers, nor which server sold the most Wine of the Month, this is about fierce competition among hotels to attract the best people.

In a market economy competition must exist. Walk the busy shopping streets of urban China and vendors will try to attract your attention. Hotels, Resorts, Serviced Residences, Restaurants & Bars will compete for business. It is about market share, sales & marketing strategies, and keeping happy customers coming back. In China the number of hotel beds is growing faster than anywhere in the world.

And in every random city new hotels open from a base of 2-5 international hotels up to 5 years ago to 10 hotels today and more to open in the next 5 years. Major cities like Shanghai and Beijing already feel the pinch of overcapacity in post-Olympic (and soon post-Expo) times.

Hotel owners, management companies and analysts crack their brains on how to achieve market share, and get the favor of the consumer who has more to chose from and can shop around. But this fast growth does not only put the Occupancy Rates and Average Rates under pressure. What few hotels realize yet is that they are also competing against each other for the best talents in a limited pool.

Whereas hotels are often built with a 20-30 year plan and expected growing market & needs it is doubtful if in the next 20 years the pool of available employees choosing hospitality will grow too, in China

The days that young hoteliers would join a certain hotel, or group and make their career all the way up with the same hotel, same group are long gone. Today a job with a hotel is good for the next 1-2 years and people see where the next opportunity lies (and in Beijing, Shanghai even faster).

Hoteliers are traditionally mobile, the world is their oyster, and the home is where good jobs are. This also applies to hotels in China anno 2010. Within China the term ‘local expatriates’ who work in any region of China other than their home town is commonly understood. Although hotel companies may promise future transfers to other locations, or gradual promotion it is not surprising that many hoteliers in China can not resist a good offer in another city, or a promotion when joining another brand.

The only way is up is the mood in China for the last 25 years, so why would hoteliers patiently wait for their promotion or do their hardship years in less favorable locations when hotels in more attractive locations are hungry to have them.

It was perhaps good practice for hotels when they open in a certain location to first look at the hotels present for potential recruits. Due to fast expansion of most hotel groups in China the transfer of staff from existing hotels to new openings is limited as existing hotels already struggle to find and keep their talents.

In addition, the expansion is often in the secondary cities where the primary cities do not necessarily want to go, or only for a short period of time. In mature markets, cities like Hong Kong where only 1 or 2 new major hotels open per year it’s quite normal for an F&B Director to slip his business card to a good waitress and ask her to give him a call. An Assistant HOD may be experienced enough to join another, smaller hotel as HOD. When there is a local HR Director who worked for an existing hotel for 10 years get’s pinched by a new hotel opening, the position maybe taken over by the # 2, Assistant HR, who was perhaps also 4-6 years there.

But where will the next opening hotel recruit from? In locations where 10 hotels opened in less than half a decade and still another 10 in the ground this is not only ‘not done’ it also leads to a guerilla warfare for staff. New opening hotels can only apply the trick of scouting the competitor’s staff a few times till they fall victim themselves to the very next new hotel. China has a history of hotel development of less than 30 years with the base of the earliest hotels, where future managers were groomed, only 10% of what is there today.

Up to 10 years ago there were practically no hotel & catering management schools in China as such. Chinese hoteliers started to go overseas to study hotel management about 15 years ago. However the drop out rate of these graduates who do not continue their career in hospitality after graduation is worrying. The graduates of today, who are the managers of the future may deliver only 5-10% of hospitality management graduates today, still working in the industry 20 years from now.

Offering more salary, and offering a higher position is also something that would work out fine in mature markets. In a competitive market pricing is key, a hotel has to offer a salary that is market conform and in China today the market rate for salaries are not determined by regional levels of income but what nationwide is paid for the best. Hotels on Hainan Island need to compete with salaries in Shanghai, Beijing. They may attract staff from less prosperous regions, but will loose them to the higher paying regions.

Secondary cities need not pay the salaries paid in Shanghai and Beijing, but whether you are Shenyang, Chongqing, Jinan or Tianjin, the past 5-10 years salaries locally are no longer competitive when you need to attract managers from all over the country. Title inflation became rampant in China, attracting management with higher titles they had to wait for a few more years in a normal situation. But higher title and higher salary can only keep those fresh recruits only as long as nobody outdoes you. It’s an outright war with ever new tactics.

The more visionary hotel companies have already understood that many other benefits like modern and good staff facilities such as dormitories, staff canteens, and secondary benefits are the new tactics in this war. But when one hotel sets a new trend, the copy-cats will follow soon. The simple promise of promotion or transfer is a carrot everybody is dangling.

Good and intelligent staff recruitment goes from top to bottom. When management is unstable, unqualified, or has high turnover, rank and file will walk too. When rank & file is just fresh out of school, untrained, and keen to leave when better opportunities arise, managers may soon walk too, feeling that they can not achieve the objectives set when they have no staff.

The urgency to fill crucial positions, especially at pre-opening projects may often lead to poor recruitment, which leads to high turnover, which leads to poor reputation as an employer. Sitting on prospective candidates for a position too long and not keeping them in loop of the process, delayed interviews etc. may make a hotel loose the best available talents to other hotels who were simply faster or a bit further in the recruitment process.

Recruiting management and rank & file for new hotel openings can sometimes be hit & miss. Joining an existing hotel with a track record of business volume and where managers moved on thereafter is much more attractive for hoteliers than joining a hotel that isn’t open yet.

A hotel’s reputation as a good employer or where people come and go is as crucial for attracting talents and keeping them as is your guest satisfaction index and Tripadvisor rating are for attracting guests and keeping them.

Sponsor Link: The leading executive search firm in China

03/20/10

Permalink 01:13:55 am, by dacare, 302 words, 398 views   English (US)
Categories: Candidates, Labor and Worker

Shanghai still faces skills shortage

China’s plan to turn Shanghai into a leading financial centre by 2020 could be undermined by its ability to attract the talent it needs, as suggested by respondents to our latest poll.

By FinanceAsia Editors

This time last year, China's leaders announced plans to develop Shanghai into an international financial centre by 2020, but, with just 10 years to complete the transition, the city faces a skills shortage. In our web poll last week, FinanceAsia readers said that it is still far harder to hire finance professionals in Shanghai than in either Hong Kong or Singapore.

And the skills shortage is but one of the obstacles Shanghai must overcome to transform into a globally competitive financial centre, argue market participants. China's currency is still not freely convertible and the rule of law is perceived to be far weaker than in Hong Kong, Singapore or even Mumbai. The government's "direct and discretionary control over the national economy" is also a worry for foreign investors, according to Winston & Strawn, a US law firm that published a report last year on Shanghai's progress towards becoming a financial centre.

Our readers certainly agree. When asked which city is the hardest place to hire finance professionals, 65% voted for Shanghai, compared to just 19% for Singapore and 16% for Hong Kong.

Shanghai's market capitalisation is bigger than both Hong Kong and Singapore, but it still lacks the financial infrastructure to compete with them as a regional centre. Also, few foreign financial professionals are keen to move from low-tax jurisdictions, such as Hong Kong and Singapore, to a city where income tax rates are close to 50%.

But it rarely pays to underestimate China. "Judging by the government's ability to turn China into one of the world's leading economies within less than 30 years, there is certainly hope for Shanghai," wrote Winston & Strawn.

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Permalink 01:12:32 am, by dacare, 588 words, 1299 views   English (US)
Categories: Leaders on the Move, Banking & Financial Services

HSBC Said to Hire Nomura’s Wang to Boost China Fees

By Cathy Chan

March 17 (Bloomberg) -- HSBC Holdings Plc, Europe’s biggest lender, hired former Nomura Holdings Inc. executive Jane Wang to bolster investment banking in the world’s fastest-growing major economy, two people with direct knowledge of her plans said.

Wang, 42, will become China chairman for corporate finance in a newly created position and start in early April, the people said, asking not to be identified before an announcement. She will report to Liu Che-Ning, 44, the head of global corporate and investment banking in Hong Kong and China, they said.

The executive is HSBC’s second senior hire in six months in China, the world’s biggest market for initial public offerings in 2009. Liu, a former managing director at Morgan Stanley, joined HSBC in October.

HSBC ranks fourth in arranging overseas stock sales by Chinese companies this year, up from 16th in 2009, according to data compiled by Bloomberg. Before this year, the bank’s highest ranking in the past decade was eighth.

The London-based bank doesn’t have a license to underwrite domestic share sales in the country, lagging behind rivals including Goldman Sachs Group Inc., UBS AG and Credit Suisse Group AG.

Annie Cheng, a spokeswoman at HSBC in Hong Kong, declined to comment. The company, set up in 1865 as the Hongkong and Shanghai Banking Corp., plans to trade its shares in Shanghai and moved Chief Executive Officer Michael Geoghegan to Hong Kong from London last month to sharpen its focus on Asia.

Lehman Takeover

Wang, who joined Nomura through the takeover of Lehman Brothers Holdings Inc.’s Asia operations in 2008, resigned last week from the Tokyo-based brokerage as vice chairman of China investment banking, people with knowledge of the matter have said. She will be based in Hong Kong with HSBC.

She joined Deutsche Bank AG in 2000 and was promoted to co- head of China investment banking in 2004. Lehman hired her the following year as head of China corporate finance. During her stints at Deutsche Bank and Lehman, she helped win work arranging share sales for Dongfeng Motor Group Co. and China Citic Bank Corp.

HSBC was hired to underwrite Bank of Communications Ltd.’s rights offer of as much as $6.15 billion, and won a role arranging the initial public offering of Swire Pacific Ltd.’s property unit this year, one of the people said.

Banker Departures

HSBC tried to expand its investment bank under co-heads Stuart Gulliver and John Studzinski as part of a five-year plan that started in 2003. Studzinski added about 1,400 people to the corporate and investment bank in 2005, increasing expenses and contributing to the unit’s decline in pretax earnings.

After Studzinski left in 2006, HSBC scaled back its ambitions to focus on a narrower range of securities services targeting emerging markets. Studzinski joined Blackstone Group LP and hired HSBC bankers including Zheng Jianping and Jing Xiaowen in 2008.

The U.K. bank lost senior bankers hired in Asia in 2007, including Asia CEO Michael Smith; Daniel Palmer, global head of capital markets; and Steven Wallace, Asia investment banking head. Smith became CEO of Australia & New Zealand Banking Group Ltd.

HSBC’s posted full-year net income of $5.83 billion, missing the $7.76 billion median estimate of analysts surveyed by Bloomberg. Pretax profit at the investment banking unit, led by Gulliver, more than tripled to $10.5 billion. It was the only among HSBC’s divisions to report a gain in profit.

The lender wants to raise more than $5 billion in Shanghai as China opens the exchange to foreign companies, people with knowledge of the matter said in August.

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Permalink 01:11:29 am, by dacare, 682 words, 1354 views   English (US)
Categories: Leaders on the Move, Banking & Financial Services

Deutsche Bank China head Zhang to join ICBC

Lee Zhang set to become ICBC's vice president

* Zhang's appointment subject to Beijing's approval

* China wants influential Chinese to return to help SOEs

* Deutsche Bank shares up 0.3 pct in line with peers

(Adds sources' quotes, more details, background)

By George Chen and Zhao Hongmei

SHANGHAI/BEIJING, March 19 (Reuters) - Lee Zhang, China head of Deutsche Bank AG (DBKGn.DE), Germany's top lender, is set to take a senior role at Industrial & Commercial Bank of China (1398.HK), according to people familiar with the matter.

The sources said the appointment is expected to receive final government approval in the next few weeks, part of Beijing's plan to attract influential Chinese away from leading Western firms to drive expansion inside major state-owned enterprises.

Zhang has been in talks for several months with senior Chinese government officials and the management of ICBC.

"There will be more to come back as Beijing is eager to push the trend," said one of the sources.

"It does make sense for big enterprises like ICBC. You are already the No. 1 in the world (by market value) and of course you also need No. 1 talent to work for you," he added.

The departure is a blow for the Frankfurt-based lender which in December unveiled ambitious profit targets to reach 10 billion euros in pretax profit by 2011, in part based on its ability to drive revenue growth in Asia.

Deutsche wants to raise revenues in Asia Pacific excluding Japan to around 4 billion euros by 2011 from around 2.1 billion euros in 2008, mainly by focusing on organic growth. [ID:nWEA5547] [ID:nWEA5552]

Deutsche already has a joint venture in China with Zhong De Securities, with plans to reach a market share of 5 to 8 percent within three to five years. It recently raised its stake in Hua Xia Bank (600015.SS). [ID:nSHA137769] [ID:nSHA199464]

The sources said Beijing-based ICBC (601398.SS) agreed to hire Zhang as its vice president, but the appointment must be approved by the Organization Department of the Communist Party of China (CPC) Central Committee, a process that could still take several weeks.

Sources at Deutsche Bank told Reuters that Zhang is still working in the bank this week. Spokesmen at ICBC and Deutsche Bank declined to comment on the matter. Zhang's mobile phone went unanswered.

The sources declined to be identified because the hiring process is private and confidential.

WELCOME TO BEIJING

Zhang, a long-time banker for Western financial institutions, helped Deutsche Bank launch its investment banking joint venture in China, allowing the European lender to help Chinese clients underwrite shares and debt in fast-growing domestic markets.

Zhang, Group Chairman of Deutsche Bank China and Head of Global Banking Asia-Pacific excluding Japan, also helped Guangdong Development Bank, a mid-sized Chinese lender once in deep financial trouble, to strike a $3.1 billion deal with a Citigroup-led (C.N) consortium in a landmark foreign banking investment in China in 2006.

In Beijing, Zhang is already well known among top Chinese leaders since he is a delegate to the Chinese People's Political Consultative Conference (CPPCC), China's top political advisory body.

As a CPPCC delegate, an honoured political status very rarely offered to Chinese people working for Western firms, Zhang has opportunities to meet top government leaders and regulators annually and submit proposals on a variety of issues. If his appointment is approved, Zhang would be the highest profile executive to be lured to a state-owned company under Beijing's plan to lure top talent from Western banks.

Many Western banks were badly hit during the global financial crisis, and even influential bankers whose compensation has come under public scrutiny may be more open than previously to outside offers.

Meanwhile, China's fast economic growth has helped big banks such as ICBC grow even more and they are now ambitious for global expansion, providing opportunities for veterans such as Zhang.

Last week, Fred Hu, a high-profile Chinese dealmaker, stepped down as a partner of Goldman Sachs (GS.N) after 13 years with the firm to launch a new private equity fund with help from China Construction Bank (0939.HK) (601939.SS), another of the Big Four state lenders, and other parties. [ID:nTOE6290BD]

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Permalink 01:08:39 am, by dacare, 550 words, 614 views   English (US)
Categories: Comp, Salary & Benefit

China wages to rise as labor shortages grow

(Reuters) - The frustrations of companies in coastal China trying to hire enough workers may become a permanent headache, foreshadowing higher wages, according to a top labor economist.

CHINA

Labor shortages, especially in export hubs in China's coastal provinces, have intensified since last month's Lunar New Year holiday, when tens of millions of migrant workers headed back from coastal factories to their home villages.

Beijing regards the bottlenecks as a temporary, regional phenomenon. But Cai Fang, head of the Institute of Population and Labour Economics with the Chinese Academy of Social Sciences, disagreed.

"It's certain that the migrant worker shortage is here to stay in China," Cai told Reuters.

Factories are finding it tough to recruit even though China's working-age population, in the 15-64 age bracket, will not peak until 2015.

Cai said wages for China's 150 million or so migrant workers increased 19 percent in 2008 and 16 percent in 2009, even though exporters were hit hard by the global financial crisis and more than 20 million migrants lost their jobs.

The manager of a shoe factory in the eastern city of Wenzhou said he had been unable to hire 300 workers despite adding 200-300 yuan per month to last year's average salary of 1,500 yuan ($220).

"This year we have a lot of orders, but the problem is we don't have enough workers," he said. Raising prices was not an option because of competition from newly opened factories, so profits were being squeezed, the businessman added.

SHIFT INLAND

"There is little doubt about the long-term trend of rising wages in China," said Cai, a standing member of the National People's Congress, China's largely ceremonial parliament.

Economists at China International Capital Corp agreed that the end of China's demographic dividend would help increase labor's share of national income, driving up consumption.

"Judging from the experiences of Japan and Korea, we are particularly positive about urban consumption of such goods as vehicles, travel services, healthcare, culture and entertainment, as well as the fast growth of rural appliance sales in China over the next few years," they said in a report.

Labor typically accounts for less than 10 percent of manufacturing costs in China, but businesses, many working on thin margins, also face the risk of a rise in the yuan.

Businesses have been able to absorb higher costs by increasing productivity. More and more companies have also been shifting production inland, where labor costs are lower -- a trend that Cai expects to gather momentum.

"A monthly salary of 1,500 yuan in Guangdong may be too low to attract workers; but if that pay is on offer in an inland city, people are willing to take the job," he said.

Cost pressures will also force companies to climb the value ladder -- a key objective of the government's economic policies.

"Sweatshops in coastal areas with low wages, poor working conditions and narrow profit margins are set to go bust," Cai said. "The process of industrial upgrading will speed up."

And as workers become harder to attract, local governments will have to shift from being "pro-capital" to "pro-labor," for instance by raising minimum wages and making it easier for migrants to settle in cities with their families, Cai said.

In Guangdong, which accounts for about 30 percent of the country's exports, the local government plans to raise its minimum wage by more than 20 percent.

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03/07/10

Permalink 09:25:52 pm, by dacare, 451 words, 748 views   English (US)
Categories: HR News Express

'Monster' job site heavyweight help to ChinaHR

Beijing: In 2008 the US-based online job company Monster Worldwide Inc made headline news when it acquired all of ChinaHR.com, paying $174 million for a remaining 55 percent stake in the Chinese recruitment site.

The acquisition enhanced the strength of the local website and cemented its hold on the No 2 position in China's online recruitment market.

A ccording to leading domestic consultant company IResearch, ChinaHR.com's online recruitment income accounted for 17.9 percent of the industry's total last year. And it is expected to have stronger growth in the next few years, market observers say.

Further success and growth is expected in the years ahead because "Monster is committed to being at the pioneer in service technology and innovation in the sector", said Sal Iannuzzi, company chairman and CEO.

As well, Monster's global network gives ChinaHR.com a big boost because it is the only online recruitment company in the nation with a well-developed international talent database.

Cutting edge

Service, innovation-centered strategy and the global reach of Monster have all spurred ChinaHR's development, Iannuzzi said, noting its patent semantic "6Sense TM" search technology delivers precise matches to both job seekers and employers.

Standard key word search technology might cause a company that needs a veteran accountant to wade through resumes from people who worked as an accountant decades ago - but are now singers, salespeople or teachers.

With technology powered by Monster's 6Sense, recruiters can quickly and precisely find and target candidates who best meet their hiring needs, the CEO said.

The technology also enables job hunters to better fulfill their ambitions.
Iannuzzi said the technology can also significantly help people who have ambitions for a job transition between two disparate industries, a difficult search task for other online sites.

The combination of media, offline recruitment and campus recruitment all give ChinaHR an edge, he said.

Campus recruitment by ChinaHR.com, a key component of its business, has won applause from not only customers in China but also internationally.

Iannuzzi said Monster is promoting ChinaHR's approaches of campus recruitment to its branches throughout the world.

"We are keen on listening to our customers and offering tailored services to fulfill their needs efficiently," the CEO noted.

As well, resources from Monster in some 60 countries globally offer ChinaHR an advantage in aiding China's State-owned enterprises (SOEs) scout talent overseas.

As China has begun to encourage more SOEs and banks to branch out overseas, they face a challenge finding senior professionals.

An example was a bank last year. It took only three weeks for ChinaHR to find 14 qualified overseas professionals it needed.

Before such a search may have cost the bank millions of yuan by hiring senior consultant companies to travel overseas for months at a time.

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Permalink 09:18:39 pm, by dacare, 509 words, 877 views   English (US)
Categories: Announcements

Internet Recruitment Slows In China, 51job.com Posts 5% Annual Revenue Decline

Showing that Chinese businesses were slow to hire new employees in 2009, Chinese online recruitment company 51job Inc. just revealed its unaudited financial results for the fourth quarter of 2009 and for the fiscal year ended December 31, 2009, and stated that revenues fell 5% from 2008.

While total revenues at 51job.com for the last quarter increased 15.2% over the fourth quarter of 2008 to CNY226.0 million, total revenues for the entire fiscal year 2009 decreased 5.0% from 2008 to CNY817.1 million.

Rick Yan, president and CEO of 51job Inc. stated: "In light of the challenges we faced and overcame in 2009, we were especially pleased to end the year on a high note by achieving record profit in the fourth quarter. We have observed a strengthening trend in market conditions and believe our online business in particular has carried solid momentum into 2010. In addition, with the opening of our new call center in Wuhan, this business is well positioned to not only extend our geographic reach and addressable employer base, but also streamline our service network for greater efficiency and margin expansion. We believe the year is off to a robust start for 51job."

Net income for the fourth quarter of 2009 increased to CNY46.4 million from CNY6.8 million for the same quarter in 2008. Fully diluted earnings per common share for the fourth quarter of 2009 were CNY0.84 compared with CNY0.12 for the same quarter in 2008. Fully diluted earnings per ADS for the fourth quarter of 2009 were CNY1.67 compared with CNY0.24 in the fourth quarter of 2008. Net income for 2009 increased 46.9% to CNY112.5 million from CNY76.6 million in 2008. Fully diluted earnings per common share for 2009 increased to CNY2.02 from CNY1.35 in 2008. Fully diluted earnings per ADS for 2009 were CNY4.03 compared with CNY2.70 in 2008.

Print advertising revenues for the fourth quarter of 2009 increased 8.2% to CNY64.6 million compared with CNY59.7 million for the same quarter in 2008. The increase was primarily due to higher average revenue per page, which was partially offset by a lower volume of print advertising pages in 51job Weekly resulting from a decline in market demand. Although print advertising prices in each city remained relatively unchanged, overall average revenue per page increased 39.8% over the fourth quarter of 2008 due to an increase in page volume contribution from cities where print advertising prices are generally higher as compared to the same quarter of the prior year. The estimated number of print advertising pages generated in the fourth quarter of 2009 decreased 22.6% to 2,672 compared with 3,452 pages in the same quarter in 2008.

The estimated number of print advertising pages generated in fiscal year 2009 decreased 29.4% to 11,661 compared with 16,512 estimated pages in 2008. Unique employers using the company's online recruitment services grew 39.9% to 143,451 in 2009 from 102,562 in 2008. Employers who purchase online services multiple times or in multiple quarters throughout the fiscal year are counted as one unique employer for the annual total.

Online recruitment services revenues for the fourth quarter of 2009 were CNY97.3 million, representing a 33.7% increase from CNY72.7 million for the same quarter of the prior year. Other human resource related revenues for the fourth quarter of 2009 increased 0.5% to CNY64.1 million from CNY63.8 million in the same quarter of 2008.

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Permalink 09:15:13 pm, by dacare, 99 words, 602 views   English (US)
Categories: Recruiting & HR Tips and Practices

China 51job Q4 Profit Surges; Guides Q1 - Quick Facts

51job Inc. (JOBS: News ) reported net income of RMB46.4 million or RMB1.67 per ADS for the fourth quarter, compared to RMB6.8 million or RMB0.24 per ADS in the prior year quarter.

Excluding items, non-GAAP adjusted income was RMB52.6 million or RMB1.90 per ADS, compared to RMB13.6 million or RMB0.48 per ADS in the year-ago quarter.

Total revenues for the fourth quarter increased 15.2% to RMB226.0 million from RMB196.2 million in the same quarter in 2008.

For the first quarter of 2010, the company anticipates non-GAAP earnings of RMB0.68 per share to RMB0.78 per share, and revenue of RMB230 million to RMB240 million.

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Permalink 09:11:31 pm, by dacare, 287 words, 682 views   English (US)
Categories: Technical, IT Recruiting

Google recruiting 40 staff in China despite withdrawal threat

US internet giant Google today posted ads for dozens of positions in its China business.

The move suggests it may be rethinking its threat to leave the country over cyber attacks and online censorship.

Google is seeking to hire 40 staff, including engineers, sales managers and research scientists in Beijing, Shanghai and the southern city of Guangzhou, according to advertisements seen on its website.

The job ads - the first since Google threatened to shut down its Chinese language search engine google.cn rather than bow to government censors - could mean the firm planned to stay in China, technology analyst Li Zhi said.

"They are in the process of resolving this issue (with the government)," said Li, a Beijing-based analyst at research firm Analysys International.

"Their business in China won't change too much this year."

Google threatened in January to leave China over what it said were cyber attacks aimed at its source code and at the Gmail accounts of Chinese human rights activists around the world.

Meanwhile, Google has continued to filter search engine results in China, which has the world's largest number of online users at 384 million.

A spokeswoman for Google China did not respond to emails or phone calls from AFP seeking confirmation of the recruitment drive and the status of Google's talks with Beijing.

Google representatives and Chinese officials were to resume talks in the coming days after a break for China's Lunar New Year holiday, the Wall Street Journal reported Tuesday.

The talks will centre on whether the US firm can deliver unfiltered internet search results in China, the report said.

Google China spokeswoman Marsha Wang told AFP yesterday she had no updates on plans for talks when asked about the report.

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03/03/10

Permalink 02:44:19 am, by dacare, 353 words, 415 views   English (US)
Categories: Candidates, Labor and Worker

Chinese male grads given edge in job recruitment

Male graduates get preferential treatment in their hunt for jobs, with a full nine percentage points more male university seniors having landed positions than their female counterparts as of the end of February.

A survey released by MyCOS HR Digital Information Co Ltd, a human resources consulting company in Beijing, shows that 30 percent of male university seniors set to graduate in July have found a job, while only 21 percent of female students have done so.

The survey also indicates that among the male students with offers of employment, 31 percent were hired by State-owned enterprises - traditionally the biggest employer of university graduates by far. Only 17 percent of the females were offered jobs at such companies.

In addition, female graduates in the sectors of transportation and logistics were offered 523 yuan less per month. Female majors in information technology and telecommunications were offered 420 yuan less than male students.

Li Xing, a former human resources employee in charge of recruitment at a State-owned real estate development company in Beijing told METRO that males are given hiring preference - 70 percent of the company's staff is male.

"We only considered women for the positions such as secretaries," Li said.

"Females are never considered for other positions, including construction supervisors, even though some of the female applicants were equally excellent as male counterparts."

He also admitted there was a small income gap between male and female employees doing the same job, but said it wasn't significant.

Wang Junjie, a consulting manager with the Beijing office of Towers Watson, a US-based human resources consultation, attributed the unpopularity of females in some workplaces to the nature of certain jobs.

Wang said male graduates are preferred in industries such as transportation and mining because overtime and frequent business trips are often required.

Male workers don't take maternity leave, he noted.

Furthermore, some companies may bear extra expenses if they hire female employees, according to Wang.

For example, if a real estate company hires a female quality control supervisor and she goes on a business trip with a male colleague, the company must pay for two rooms instead of one for their accommodation.

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Permalink 02:43:28 am, by dacare, 1079 words, 428 views   English (US)
Categories: Candidates, Labor and Worker

Defying Global Slump, China Has Labor Shortage

By KEITH BRADSHER

GUANGZHOU, China — Just a year after laying off millions of factory workers, China is facing an increasingly acute labor shortage.

As American workers struggle with near double-digit unemployment, unskilled factory workers here in China’s industrial heartland are being offered signing bonuses.

Factory wages have risen as much as 20 percent in recent months.

Telemarketers are turning away potential customers because recruiters have fully booked them to cold-call people and offer them jobs.

Some manufacturers, already weeks behind schedule because they can’t find enough workers, are closing down production lines and considering raising prices. Such increases would most likely drive up the prices American consumers pay for all sorts of Chinese-made goods.

Rising wages could also lead to greater inflation in China. In the past, inflation has sown social unrest.

The immediate cause of the shortage is that millions of migrant workers who traveled home for the long lunar New Year earlier this month are not returning to the coast. Thanks to a half-trillion-dollar government stimulus program, jobs are being created in the interior.

But many economists say the recent global downturn also obscured a longer-term trend: China has drained its once vast reserves of unemployed workers in rural areas and is running out of fresh laborers for its factories.

Since China does not release reliable, timely statistics on employment, wages are considered the best barometer of labor shortages. And temp agencies here in Guangzhou raised their rate for factory workers this week to $1.17 an hour, from 95 cents an hour before the new year holiday.

The rate was 80 cents an hour two years ago, before the global financial crisis temporarily depressed wages and demand.

The dearth of returning migrants set off a desperate scramble this week to recruit the workers who did step off long-haul buses and trains returning from the interior.

At a government-run employment center in downtown Guangzhou, employers seeking workers outnumbered job-hunters Thursday afternoon.

Outside, Liang Huoqiao, a 22-year-old plastics worker, joined a small group of men and women studying a 40-foot-wide list of companies seeking workers.

“You can walk into any factory and get a job,” he said.

The official China Daily newspaper said on Thursday that surveys of employers showed that one in 12 migrant workers was not expected to return here to Guangdong Province. Cities farther north along China’s coast are also running low on labor; Wenzhou alone posted a shortage of up to one million workers.

Guangdong provincial officials announced on Wednesday that they were considering increasing the minimum wage, which varies by city and ranges from $113 to $146 a month.

Higher wages could ease labor shortages by prompting factories to reduce their work forces.

But many factories already pay well above the minimum wage. They are wary of further pay increases because it is not certain they can pass the increased costs on to their customers — in particular, strapped importers in the United States and the European Union.

Rising wages suggest the re-emergence of a worker shortage that was becoming evident before the financial crisis. A government survey three years ago of 2,749 villages in 17 provinces found that in 74 percent of them, there was no one left behind who was fit to go work in city factories — the labor pool was dry.

Mass layoffs in late 2008 and early 2009 because of the global financial crisis temporarily masked the developing shortage of industrial workers. But two powerful trends were still working to reduce the supply of young people headed for factories.

For one, the Chinese government has rapidly expanded postsecondary education. Universities and other institutions of higher learning enrolled 6.4 million new students last year, compared to 5.7 million in 2007 and just 2.2 million in 2000.

At the same time, China’s birth rate has been sliding steadily ever since the introduction of the “one child” policy in 1977.

Labor shortages have returned quickly in recent weeks as these long-term trends have collided with a recovery in overseas demand for Chinese goods.

Far more jobs are available these days in China’s interior. Government projects like rail and highway construction have absorbed millions of workers, particularly after Beijing allocated nearly $600 billion to economic stimulus spending in 2009 and 2010. Consumer spending is also rising briskly; auto sales more than doubled last month from a year before, and this has created many jobs in retailing, restaurants, hotels and other inland businesses.

Even before the holiday, companies were struggling to find the employees needed to keep assembly lines running.

At many factories, white-collar managers and engineers were forced to spend time on assembly lines to meet deadlines before the lunar New Year, because laborers were in such short supply. The managers often struggled with the tedious but intricate tasks required to make everything from toys to DVD players

“People working in the office, like me, have been asked to help on the factory floor,” said Sky Niu, the sales manager at the Hengjia Electronics Company in Dongguan. “Of course, we can only help on the simpler tasks, such as packing.”

The labor shortage is not benefiting workers just through higher wages. Personnel managers here say they are also abandoning the informal tradition of not hiring anyone over 35 — they say they are now hiring workers up to 40 years old, and sometimes older, despite concerns about whether they can keep up week after week with the rapid pace of Chinese assembly lines.

It remains to be seen if Chinese factories will learn from their hiring difficulties now and be less quick to lay off workers during the next global downturn.

The current system “is not stable, it’s not healthy,” said Han Dongfang, the director of the China Labor Bulletin, a Hong Kong-based group that advocates collective bargaining.

Though the wage boost increases the prospect of inflation, it may have another more salutary aspect. The Obama administration has been pushing China to let the renminbi rise against the dollar, which would erode some of China’s formidable advantage in export markets. Rising wages in China have the same effect — while also giving Chinese families more spending power.

Letting wages rise benefits workers, said Jing Ulrich, the chairwoman of China equities and commodities at J. P. Morgan. Letting the currency rise benefits currency speculators, she said.

Mr. Liang, the 22-year-old plastics worker, said that he expected his pay to double in the next five years and added that he already had set his priorities.

“For sure, I want to buy a car,” he said. “Car first, then maybe marriage later.”

Hilda Wang contributed reporting.

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Permalink 02:42:35 am, by dacare, 346 words, 404 views   English (US)
Categories: Technical, IT Recruiting

Amid threats to exit China, Google announces: we're hiring

By Yin Hang

Weeks after Google threatened to leave China over hacking allegations, the search engine giant has posted 40 new openings for jobs at its Beijing, Shanghai and Guangzhou offices.

The company is accepting applications on its website.

Jobs are available in several departments including sales and marketing, human resource management as well as design and engineering.

By late Wednesday, Google China did not respond to email questions sent by the Global Times to confirm the recruitment.

The company recently threatened to exit China after they alleged that people based in the country hacked into its computers and clients' email accounts. As a result, Google said it would no longer restrict content on its Chinese language site.

Google China remains an ideal company to work with for lots of Chinese engineers.

Zhang Mingyu, 28, an IT engineer from Guangzhou, told the Global Times he admires the company's work environment and culture.

"You can realize your own dream there," Zhang said. "So, even if Google China would withdraw from China soon after I work there, it still will be a splendid experience for me."

Zhang Hao, an IT engineer who worked at Baidu, a competitor of Google, told the Global Times that if Google pays him more money, he would definitely go to Google.

Zhang said that he is not worried about Google leaving China because the Chinese market is valuable.

"Google is a big corporation, so naturally it is good at making news. But at the same time, it knows very well how important China is to its development," Zhang said.

The Wall Street Journal reported Tuesday that Google representatives and Chinese officials will resume talks about the company's future in the country.

ZenithOptimedia, one of Google China's advertising partners, told the Global Times that Google's clients are looking forward to seeing the company staying here.

"Higher audience rate brings in profits to the search engine. Google China is second to no one but Baidu, so naturally it could maintain a large number of its clients," said Steven Chang, chief executive officer of ZenithOptimedia office in China.

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02/01/10

Permalink 08:59:07 pm, by dacare, 260 words, 763 views   English (US)
Categories: Investing in China, Pharma, Biotech & Healthcare

Sanofi-aventis To Establish New Consumer Healthcare JV In China

Published: 29-Jan-2010

Sanofi-aventis has signed agreements with Minsheng Pharmaceutical to form a new consumer healthcare joint venture (JV). Sanofi-aventis will obtain a majority equity stake in the new entity. The agreements were signed in the presence of senior leaders of the Hangzhou municipal government.

The proposed Sanofi-aventis-Minsheng joint venture will primarily focus on vitamins and mineral supplements (VMS).

Recently, Sanofi-aventis had announced its planned acquisition of Chattem, a manufacturer and marketer of branded consumer healthcare products, toiletries and dietary supplements in the US.

Hanspeter Spek, president of global operations at Sanofi-aventis, said: “We are pleased to take a significant step toward establishing the new consumer healthcare joint venture with Minsheng, our long-standing partner. Combined with our leadership position in vaccines, we will continue to contribute to preventative healthcare in China. Entering the world’s second largest consumer healthcare market is also a strategic move for Sanofi-aventis to consolidate its position in consumer healthcare.”

Zhu Fujiang, chairman of Minsheng Pharmaceutical, said: “We are equally excited about the prospect of forming the new consumer healthcare joint venture with Sanofi-aventis, after more than ten years of successful partnership.Sanofi-aventis is an energetic and dynamic company. His success with pharmaceuticals and vaccines has demonstrated his strong marketing capability.

"We hope that once materialized, the new venture will revitalize our consumer healthcare business and expand the reach of our products to benefit more consumers. We also hope that the new venture will serve as a platform for us to develop more health products in order to contribute to the local economy and meet consumer needs.”

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Permalink 08:57:41 pm, by dacare, 453 words, 562 views   English (US)
Categories: Pharma, Biotech & Healthcare

Glaxo to cut 3,000 jobs as focus shifts to emerging markets

GlaxoSmithKline is poised to announce cuts of more than 3,000 jobs this week at its European and US operations as the focus shifts from stagnant Western markets to China, emerging Asia, and Latin America.

By Ambrose Evans-Pritchard
Published: 6:51PM GMT 31 Jan 2010

The retrenchment follows last week's move by AstraZeneca to slash 8,000 jobs in a five-year restructuring plan, on top of 12,600 cuts already made. The lay-offs at the UK's two largest drugs groups are a blow to one of the last surviving fortresses of British industry, responsible for a quarter of the world's top 100 medicines.

The cuts are a sign that the old strategy of relying on patents and selling "white pills to Western markets" has passed its time as generic drugs sweep global markets.

Glaxo aims to reduce £1.7bn in annual costs by the end of next year and re-focus efforts on research and development. The company has seen lower demand than expected for its Pandremix vaccine against H1N1 swine flu as the virus proved less deadly and contagious than feared at first, though it may yet come back to bite in a mutated form, as the similar Spanish flu virus did in 1919.
The vaccine has lifted sales by around £835m over the last three months but it has not proved a bonanza.

Sales of Glaxo's H1N1 drug Relenza have also fallen short as swine flu fears subside. Germany alone cut its order of Relenza by 30pc earlier this month, costing the company almost £120m in lost sales. France plans to cancel half its expected orders. Britain, Holland, Spain, and Belgium have all been in talks over reductions. In the end, many patients who did come down with the disease needed just one pill instead of two.

Analysts say the group is likely to announce a return to profit growth of around 12pc to £8.69bn at its full-year results on Thursday after an 11pc slip the year before.

The company has been hit by generic versions of its herpes treatment Valtrext after the recent expiry of its US patent, although it has the lupus drug Benlysta wating in the wings. Valtrex sales are expected to drop by two thirds this year to $782m, raising concerns that the group is too reliant on aging patents.

Andrew Witty, the chief executive, is trying to diversify away from its core pharmaceutical business in the West to consumer health, especially in China.

Tougher rules have made it harder to make money in Europe and America. The EU has passed swingeing codes that have pushed key research activities abroad.

The share of the world's clinical trials conducted in the UK fell from 6pc to 2pc between 2000 and 2006, largely due to intrusive regulations that have sharply raised costs.

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01/20/10

Permalink 09:38:36 am, by dacare, 220 words, 644 views   English (US)
Categories: Pharma, Biotech & Healthcare

Pfizer’s Looking for More Sales Reps. In China.

By Jacob Goldstein

Same song, different verse: A big drug maker is cutting jobs in the developed world and growing in China.

This time, it’s Pfizer, which said today that it’s looking to increase its sales force in China to 3,200 by the end of next year, up from about 2,300, Dow Jones Newswires reported today. The company has said it will cut nearly 20,000 jobs as part of the Wyeth merger.

Eli Lilly said last fall that it would continue to hire in China, even as it cuts jobs in the U.S. and other developed markets. Novartis is also making a big push into China, hiring hundreds of workers and spending $1 billion to expand a research center in Shanghai.

With business tough in developed markets, drug makers are counting on the developing world for growth. But that’s not always a sure thing, either; just today, the WSJ reported that the Philippine government is asking drug makers to submit a list of proposed price cuts on their “top-selling and most expensive drugs.”

Last summer, the government in Manila put price controls on several drugs, including Pfizer’s Norvasc and Lipitor. Pfizer had previously offered to cut the prices on some of its drugs there, and said last year it was “disappointed” that the government didn’t accept its offer.

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01/15/10

Permalink 07:13:21 am, by dacare, 402 words, 690 views   English (US)
Categories: Lawyer, Attorney & Law Firms

EMPLOYMENT LAW ALLIANCE EXPANDS PRESENCE IN CHINA

San Francisco -
Partners from the Beijing, Shanghai, Dalian, Shenzhen and Haikou offices of Jun Le Law Office Join ELA

SAN FRANCISCO – The Employment Law Alliance (ELA) has added five new member offices across China, giving the network an on-the-ground presence in 30 member offices in Asia. The ELA is the world's largest network of more than 3,000 specialized labor and employment lawyers dedicated to assisting employers with legal needs in the U.S. and internationally.

The recent additions are partners from the China-based Jun Le Law Office and include: Dongpeng Wang in the Beijing office, Jianjun Ma in the Shanghai office, Jie Li in the Dalian Office, Xueyong Jiang in the Shenzhen office, and Ruhai Xia in the Haikou office.

“International corporations have long been attracted to China’s extraordinary economic growth and are rapidly opening facilities throughout the country. Ensuring the companies’ policies are compliant with Chinese labor and employment laws is difficult as the laws often vary from city to city,” said Stephen J. Hirschfeld, Esq., CEO of the ELA. “The ELA gives multi-national companies comprehensive, efficient and cost-effective assistance on the ground in each city, region and jurisdiction via truly local experts. We are thrilled to be working with partners at Jun Le as these highly regarded attorneys have intimate knowledge of China’s business practices and employment regulations.”

The ELA offers in-house counsel and human resource executives comprehensive legal guidance in every U.S. state and internationally. Its Global Employer Handbook allows free, 24/7 access to updated legal reference materials and information. The ELA also serves as a resource for trends and issues in employment via its America At Work polls on matters impacting daily business operations around the globe.

“We are pleased to be working collaboratively with our fellow ELA members around the globe. Not only will we be offering our employment law expertise here in China, but our clients with international operations will benefit tremendously from our ability to tap a wealth of reputable legal resources in the vast majority of the world. Not even a global law firm is able to provide such comprehensive experience and coverage,” said Wang.

About The Employment Law Alliance:
The Employment Law Alliance is the world's largest network of labor and employment lawyers. With specialists in all 50 states and more than 100 countries, the ELA provides multi-state and multi-national companies with seamless and cost-effective services worldwide. On the net at: www.employmentlawalliance.com.

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Permalink 06:53:00 am, by dacare, 288 words, 488 views   English (US)
Categories: Banking & Financial Services

Shanghai Overtakes Tokyo as Busiest Asia Stock Market

Shares worth $5.01 trillion changed hands on the Shanghai Stock Exchange in 2009, compared with $4.07 trillion on the Tokyo Stock Exchange

By Zhang Shidong and Shiyin Chen

(Bloomberg) — Shanghai overtook Tokyo as Asia's biggest stock market by trading value last year, as an 80 percent jump in China's benchmark index boosted equities demand.

Shares worth $5.01 trillion changed hands on the Shanghai Stock Exchange in 2009, compared with $4.07 trillion on the Tokyo Stock Exchange, according to data compiled by Bloomberg. The Shanghai and Tokyo exchanges were ranked third and fourth globally, the Nikkei newspaper reported, citing the World Federation of Exchanges. Only the Nasdaq stock market and the New York Stock Exchange had higher trading volumes than Shanghai.

"As an emerging market, China has a very high ratio of stocks changing hands," said Li Jun, a strategist at Central China Securities Holdings Co. in Shanghai. "Increased new share sales are also one reason behind the high turnover. It'll probably take one year or two for China to catch up with the world's biggest."

The Securities Regulatory Commission on Jan. 8 approved short sales, stock index futures and margin trading. Morgan Stanley said the reforms may boost transaction volume by 50 percent, helping to usher China's market into a "new era."

The Shanghai Composite Index rebounded last year from a 65 percent loss in 2008 after the government introduced a 4 trillion-yuan ($585.9 billion) stimulus package, encouraged banks to advance record loans and subsidized individual purchases of cars and home appliances. Japan's Nikkei 225 Stock Average rose 19 percent.

Shanghai has the world's third largest stock market by market capitalization, briefly overtaking Tokyo in July 2009. New York is the biggest by market cap.

Mainland companies raised 207.6 billion yuan from initial public offerings in 2009, double from the previous year, according to Bloomberg data.

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01/11/10

Permalink 01:45:13 am, by dacare, 102 words, 508 views   English (US)
Categories: News of China, Manufacturing & Industry

China Overtakes Germany as World's Biggest Exporter

Chinese officials say the country's exports surged in December to edge out Germany as the world's biggest exporter.

The official Xinhua news agency reported Sunday that figures from the General Administration for Customs showed that exports jumped 17.7 percent in December from a year earlier.

Huang Guohua, a statistics official with the customs administration, said the December exports rebound was an important turning point for China's export sector.

Huang added that the jump was an indication that exporters have emerged from their downslide.

However, although China overtook Germany in exports, China's total foreign trade -- both exports and imports -- fell 13.9 percent in 2009.

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01/09/10

Permalink 11:44:20 am, by dacare, 541 words, 803 views   English (US)
Categories: Leaders on the Move

China Mobile Fires Vice Chairman for ‘Irregularities’

Jan. 8 (Bloomberg) -- China Mobile Ltd. fired Vice Chairman Zhang Chunjiang from the world’s largest phone carrier by market value citing “alleged serious financial irregularities.”

Zhang was voted off China Mobile’s board at a meeting of its members yesterday, according to a company statement that gave no details of allegations against him. The latest edition of Caijing Magazine reported the former executive was being investigated for falsifying earnings and hiding losses while he was an executive at another Chinese telecom company.

Zhang was ousted from parent China Mobile Communications Corp. after a Xinhua News Agency report Dec. 26 said the Central Commission for Discipline Inspection of the Communist Party of China, the nation’s main anti-corruption body, had made him the subject of an investigation over an unspecified “serious disciplinary breach.” His firing will not affect China Mobile’s operations, said Peter Ho, an analyst at Quam Ltd. in Hong Kong.

“I think Zhang’s going will have little impact on the company,” said Ho, an analyst at Quam Ltd. in Hong Kong. “The company has a good management team in place and he is not a key member.”

A China Mobile spokeswoman in Hong Kong, Rainie Lei, declined to discuss the nature of the “economic issues” faced by Zhang beyond saying they won’t affect the company.

Shares in China Mobile rose 1.6 percent to close at HK$74.45 in Hong Kong trading, extending gains made since the corruption investigation was announced to 6.7 percent. The benchmark Hang Seng index, which rose 0.1 percent today, has advanced 3.8 percent in the same period.

Under Scrutiny

Zhang was under scrutiny by the commission for possible misdealing at China Netcom Group Corp. before he joined China Mobile, Beijing-based Caijing said without saying where it got its information. Zhang could not be reached through the main line of the company’s Hong Kong office.

Netcom may have overstated its profit by 20 billion yuan ($2.9 billion) cumulatively before Zhang left the company in 2008, the Jan. 4 issue of the magazine said. The matter was uncovered by China Unicom (Hong Kong) Ltd. according to the report. Sophia Tso, a spokeswoman for China Unicom, which took over Netcom as part of a government revamp of the telecom sector in 2008, declined to comment on the report.

The former executive, aged 51 according to Caijing, was removed from his posts as Communist Party secretary and vice- president at China Mobile Communications, Hong Kong-listed China Mobile said in an e-mailed statement Dec. 31.

Zhang was named Communist Party secretary at China Mobile Communications in May 2008, when the government ordered the country’s six biggest phone carriers to merge in a reorganization aimed at boosting competition.

Senior Position

The post gave him a more senior position in the state-owned company’s hierarchy than chief executive Wang Jianzhou, industry consultant Duncan Clark said Dec. 30.

Before his tenure at Netcom, Zhang was director of telecommunications administration at the Ministry of Information Industry.

China Mobile Communications owns 74.3 percent of the Hong Kong-listed carrier, which named Zhang as its vice-chairman in June 2008 following his appointment at the parent company.

The probe won’t “materially impact” China Mobile’s business given Zhang’s short tenure at the company, Goldman Sachs Group Inc. analysts Helen Zhu and Lucy Liu wrote in a Dec. 27 report.

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Permalink 11:38:54 am, by dacare, 766 words, 446 views   English (US)
Categories: Banking & Financial Services

IBM Providing Credit and Financing to Businesses in China

AMD and distributors to pilot IBM's new financing capabilities in the region

TIANJIN, China, Jan. 8 /PRNewswire-FirstCall/ -- IBM ( IBM) today announced that its lending unit has signed a financing deal with Advanced Micro Devices, Inc. (NYSE: AMD) and its distributor network that will begin the flow of cash and credit in an important economic development zone in China.

Late last year, the Tianjin Government provided IBM Global Financing, the lending and leasing business segment of IBM an exclusive license to provide accounts-receivable lending (commonly referred to as 'factoring') in the Tianjin Binhai New Area, a key economic development zone, designed by the government to provide support for innovative business initiatives.

"One of the keys to economic recovery is the successful partnering of private and public sectors," said Mario Bernardis, general manager for worldwide commercial financing, IBM Global Financing. "This new partnership with IBM Global Financing and the Tianjin Government will bring great benefits to businesses looking to speed up the conversion of their invoices to cash. We are grateful to the Tianjin Administrative Bureau of Industry and Commerce for granting IBM this factoring license - a first of its kind in China."

Credit is a key concern for businesses all over the world trying to keep their balance sheets healthy. As goods and services pass through their vendor supply network, companies must sometimes wait from 90 to 120 days to get paid. With this new factoring license, IBM recently established a new operating entity called IBM Factoring (China) Company Limited. This new IBM entity will help businesses operating in the country smooth out the time lag between invoice and payment.

IBM Factoring (China) Company Limited has entered into an agreement with Advanced Micro Devices (NYSE: AMD) to factor AMD sales receivables in China. IBM Factoring (China) Company Limited will purchase receivables resulting from sales by AMD to its main technology distributors. IBM Factoring (China) Company Limited will pay AMD up front for inventory delivered to its distributor network and extend payment terms to these distributors on a flexible schedule.

"This customer-focused financing arrangement can facilitate the flow of AMD's market-leading solutions throughout the China marketplace," said Devinder Kumar, AMD senior vice president, corporate controller and treasurer. "Working with IBM Global Financing, our customers in the region can focus on leveraging our technology towards greater profitability and resilience, and let the payment cycle run smoothly in the background."

IBM Global Financing has been operating in China for more than 10 years. It provides IT leasing and financing to clients across many industries in China, helping them to acquire the IT solutions they need to be successful and competitive. IBM Global Financing also supports the sales and distribution of IBM hardware and software to IBM's Resellers. IBM's financing operations drive channel growth through innovative programs such as payment extension programs, and through solutions to reduce collection disputes. In addition, IBM China Leasing Co offers leasing for IBM products.

A 4-trillion-yuan (585.7 billion U.S. dollars) stimulus package, backed by proactive fiscal policy and moderately easy monetary policy, has encouraged consistent gross domestic product growth in China. Economic development zones, like the China's Tianjin Binhai New Area provide new opportunities for business -- foreign and domestic -- to help improve profitability and stimulate the economy.

About Tianjin Binhai New Area

Tianjin Binhai New Area (TBNA) is an economic development zone within the jurisdiction of Tianjin municipality in China. The TBNA is located at the intersection of the Beijing-Tianjin-Hebei economic zone and the Bohai Bay Rim Zone, which accounts for 17% of China's population and 21% of its GNP.
The region serves as a major hub linking both north and south China, and connects China with northeast Asia. The Area is also one of China's largest education and high-tech centers, with 25 universities and more than 140 research institutes.
The Tianjin Binhai New Area includes a comprehensive overland transportation network, along with highly-developed sea freight links to over 300 harbors in 170 countries and regions. Tianjin Binhai International Airport is considered one of northern China's most important aviation freight centers.

More than 70 of the world's leading 500 corporations, such as Motorola, Toyota and Samsung have opened offices in the Area.

For more information, please visit: http://english.enorth.com.cn.

About IBM Global Financing

IBM Global Financing (IGF), the financing business segment of IBM and the world's premier single-source provider for multi-vendor IT financing solutions, serves commercial clients ranging from small businesses to the majority of the Global Fortune 100. With assets of $34 billion worldwide, IGF provides project financing, commercial financing and asset-recovery services to 125,000 clients in more than 50 countries.

Additional information can be found at www.ibm.com/financing/cn/zh/.

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01/07/10

Permalink 04:01:50 am, by dacare, 367 words, 497 views   English (US)
Categories: Manufacturing & Industry

Toyota's China car sales up 21 pct in 2009

SHANGHAI, Jan 6 (Reuters) - Toyota Motor Corp (7203.T) said on Wednesday it sold 21 percent more cars in China in 2009 compared with a year earlier, lagging rival General Motors' [GM.UL] 67 percent gain.

Toyota, which competes with Honda Motor (7267.T) and others, sold 709,000 cars in China in 2009, up from 585,000 units a year earlier, it said in a statement.

That compared with 1.83 million vehicles GM sold in China last year, which also includes 1.06 million mostly mini vans, pick-up trucks made at SAIC-GM-Wuling, its three-way venture with SAIC Motor Corp (600104.SS) and Liuzhou Wuling Automobile.

Volkswagen AG (VOWG.DE) has yet to release its annual sales in China, but Winfried Vahland, president and CEO for its China operations said in November he expected the automaker to sell about 1.4 million vehicles in mainland China and Hong Kong last year, up more than 35 percent from 2008. [ID:nHKG261968]

Analysts attributed Toyota's slower growth to its lack of small cars whose sales have soared this year thanks to government tax incentives.

"GM and Volkswagen are a major beneficiary of the policy incentives favouring small cars, while Toyota's portfolio in China is not as broad," said Zhang Xin, an analyst with Guotai Junan Securities.

Still, Toyota's full-year sales marked an acceleration from 13 percent annual growth in the first nine months of 2009 and 17 percent growth in 2008.

The company originally said in a statement that sales were up 121 percent in 2009, but a company official later clarified that the rise was actually 21 percent.

Masahiro Kato, president of Toyota's China operations, said in November that the Japanese automaker was expected to sell about 800,000 cars in China next year. [ID:nHKG295551]

Earlier last year, Toyota rolled out revamped version of Vios and Yaris compact cars -- both eligible for Beijing's tax incentives.

It also launched RAV4, a sport utility vehicle produced by its venture with FAW Group in April 2009, followed by Highlander SUV, made at its tie-up with Guangzhou Automobile, the next month.

It did not say how many new models it will roll out in China this year.

Auto sales in China, the world's largest market, surged last year, boosted by government incentives aimed at bolstering domestic demand. (Reporting by Fang Yan and Jason Subler; Editing by Jacqueline Wong)

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Permalink 04:01:12 am, by dacare, 177 words, 436 views   English (US)
Categories: Manufacturing & Industry

China's SAIC Motor tips 900% jump in 2009 profit

HONG KONG (MarketWatch) -- China's largest automobile manufacturer by sales, SAIC Motor Corp., said Wednesday it expects to post 10 times as much net profit in 2009 as it did in the previous year on the back of a robust jump in sales.

The passenger car and commercial vehicle maker said it expected an increase of more than 900% in 2009 net profit after a 57% jump in vehicle sales to 2.72 million units during the year, according to a filing with the Shanghai Stock Exchange.

SAIC, which operates joint ventures with General Motors Co. and Volkswagen AG (VLKA.Y 21.70, +0.05, +0.23%) , said earnings per share was expected above 1 yuan in 2009, up from about 0.1 yuan in 2008. That compares with analysts' median estimate of 0.93 yuan a share, according to FactSet Research.

The company's strong sales growth in 2009 was aided by government incentives to new car buyers aimed at boosting domestic consumption in the face of the global economic downturn.

However, SAIC (CN:600104 25.24, -0.41, -1.60%) shares were down 2% by mid-morning in a choppy trading session in Shanghai Wednesday, giving up early gains in spite of the performance.

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01/05/10

Permalink 06:38:58 am, by dacare, 203 words, 340 views   English (US)
Categories: HR News Express

China says already reached 2009 new job target

BEIJING, Dec 12 (Reuters) - In the first 10 months of the year China already exceeded the number of new jobs it aimed to create in 2009, state media said on Saturday, in another sign the country is emerging from the global economic crisis.

China created 9.4 million jobs in urban areas in the first 10 months, exceeding the government's target of 9 million new jobs for the year, the official Xinhua news agency said, citing the Ministry of Human Resources and Social Security.

It added that about 4.4 million laid-off workers found new work in the January-October period, some 88 percent of the full-year goal of 5 million.

Officials had estimated that more than 20 million migrant workers lost jobs when the global financial crisis hit the Chinese economy, making job creation a priority for the government in its stimulus spending.

On Tuesday, the ministry estimated that China's stimulus spending was on track to create at least 24 million jobs, offering its rosiest employment outlook since the financial crisis struck last year.

A recovery in employment is an essential precondition for Beijing to wind down its ultra-loose pro-growth policies adopted when the global financial turmoil devastated Chinese exports, leading factories to cut millions of jobs. (Reporting by Ben Blanchard; Editing by Bill Tarrant)

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Permalink 06:35:15 am, by dacare, 626 words, 396 views   English (US)
Categories: Investing in China, HR News Express

Service outsourcing industry robust in China, boosts employment

CHANGCHUN, Jan 03, 2010 (Xinhua via COMTEX) -- The global economic meltdown impacted many of the clients of BT Frontline, which provides outsourcing services for the IT systems of docks and logistics companies. But its General Manager, Lawrence Low, is still satisfied with the company's performance amid the financial crisis and confident about its future.

China's service outsourcing industry, mostly about software outsourcing, bounced back in the second half of the year from a hard time of three months caused by shrinking demand from the global market, according to Yu Hengzhuang, vice president of Dalian Software Park.

"We have gained access to high-end market and recently entered the Middle East market, which more than offset the impact of the global downturn," Low said.

"Our business not only survived, it grew and thrived," Low said with a smile, keeping the exact figures as business secret.

RAPIDLY DEVELOPING INDUSTRY The software outsourcing park in Dalian, the industrial hub in China, attracted 63 new clients in 2009, bringing the overall number of businesses in the park to more than 400, and the park's total sales are expected to top 20 billion yuan, up 32.9 percent year on year.

The sales of Dalian's software outsourcing business grew from 200 million yuan (29.3 million U.S. dollars) to more than 30 billion yuan in the past 10 years. A total of 700 companies are in the industry, including 300 joint ventures and more than 40 Fortune 500 companies.

In the first ten months, the industry's sales in Dalian grew by 33 percent to 33.7 billion yuan and its export grew by 34 percent to 1.1 billion U.S. dollars.

While Dalian has become a world famous hub of software outsourcing after Thomas Fridman compared it with Bangalore in India, another less known industrial hub with equally fast pace in east China's Jiangsu Province, is taking shape.

The contract value of Jiangsu's software outsourcing industry reached 3.28 billion U.S. dollars in the first 10 months of the year, a growth of 174 percent. The province has 2,470 companies in the industry, with 290,000 employees, according to statistics from the provincial department of commerce.

The provincial capital Nanjing's software outsourcing industry had a contract value of 2.1 billion U.S. dollars in the first 11 months of the year, growing by 239 percent.

"The income of China's software industry, which software outsourcing takes a major part, has been growing by 38 percent annually and its revenue is expected to top 1 trillion yuan in 2010," said Hu Kunshan, vice chairman of China Software Industry Association.

China's software industry earned 757.3 billion yuan in 2008, and the figure is expected to reach 900 billion yuan in 2009.

BOOSTING EMPLOYMENT The rapid development of outsourcing industry bears great significance in sustaining economic growth, restructuring economy, stabilizing export and boosting employment, said Chinese Vice Premier Wang Qishan during a visit to Dalian in November.

More than 60,000 people are working in the software outsourcing industry in Dalian.

China's outsourcing industry recruited 690,000 new employees, 460,000 of whom were college graduates, in the first 11 months of 2009, according to statistics released on a national conference on commerce.

China's Ministry of Human Resources and Social Security expects the outsourcing industry to create 1.2 million new jobs in five years, including 1 million jobs for college graduates.

At the end of Sept. 2009, 1.42 million people were working in 8,060 outsourcing companies in China, said Qian Fangli, deputy head of the foreign investment department of the Ministry of Commerce.

The software outsourcing companies in China have enough programmers but lack mature project managers and decision makers, who are on the top of the talent pyramid, said Yu Hengzhuang, vice president of Dalian Software Park.

The gap in talent pool limited the size of such companies to less than 300 people, which is a human resource threshold to carry out core projects with high added value. "That's why Chinese companies are now the lowest ring of the world software outsourcing chain," Yu added.

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01/02/10

Permalink 06:16:04 pm, by dacare, 837 words, 465 views   English (US)
Categories: Candidates, Labor and Worker

China's scope for clever job creation

By DANIEL H. ROSEN

While everyone is glad to put 2009 behind them, 2010 could be an even tougher economic year for China. To climb out of the global contraction, Beijing has engineered a property bubble characterized by oversupply in commercial real estate and unsustainable price gains for residential property. The consequences of this will bite in the new year.

To soak up and justify this excess, China's leaders are trying to stoke demand by accelerating the already epic urbanization trend, reducing constraints on migration and urban registration. The leadership is betting on the connection between accelerated urbanization and consumption, too. In 2008, 43% of China's population was considered urban, versus an average of 79% for Latin America, 73% in the euro area and 82% in the U.S: China still has a long way to go.

By front-loading this urban growth, China will bolster prices for upstream raw materials like iron ore and aluminum in the near term and keep construction companies busy. But many people are concerned that China's urban factories already are overbrimming with overcapacity in almost all sectors, and boosting urban migration will just aggravate overproduction, which will spill into world markets.

If China is already suffering overcapacity in everything, then indeed swelling the urban population would just exacerbate problems. But it isn't. In fact, there are huge swaths of economic activity and employment simply missing from the Chinese marketplace. Policies that address the reasons for this can create tens of millions of new jobs in traditional and new sectors in the years ahead, adding to domestic consumption and diverting the country from a collision course with its trading partners.

Consider three sectors: healthcare, manufacturing white collar, and education.

Healthcare: China has 1.6 doctors per thousand people; the U.S. has more than 23. Not that China wants to replicate everything about U.S. healthcare, but given rising pathology and mortality due to aging baby boomers, changes in diet, lifestyle, longevity and environmental contamination, filling this shortfall is critical. Reaching the U.S. ratio would mean adding almost 30 million doctors, not to mention multiples of the current low numbers of supporting staff—nurses, palliative-care specialists, hospital administrators and hundreds of other subspecialties comprising the modern healthcare sector.

Manufacturing White Collar: For all its storied manufacturing-sector prowess, China's goods makers skimp on R&D, quality control, brand management, financial planning, environmental-health safety and almost every other white-collar position that turns a manufactured commodity into a branded product and generates intangible value for the firm: value that makes up a third or more of assets in most Organization for Economic Co-operation and Development firms.

While China Inc. may have overcapacity on the assembly line, it has extraordinary undercapacity in the business functions that turn a $10 generic toaster coming out of a Chinese factory into a $75 Braun-branded toaster sold at retail in the U.S. or Europe.

China would need at least 60 million more white-collar workers to be comparable with the U.S. on this score. Given the different development levels, we might cut that in half, but 30 million missing office-worker bees is a lot of jobs.

Education: The missing-jobs number is also huge in education. China has 10 teachers per thousand people, as opposed to 22 in the U.S. Basic education for urban migrant-workers' children is a critical task if accelerated urbanization is to generate more prosperity and not just worsening income inequality, social tension and developmental problems like crime and an underclass. China currently needs another 16 million teachers to reach the ratio in the U.S., as well as attendant teacher-trainers, guidance counselors, school administrators, and other related employees.

Of course there are reasons why these jobs don't already exist.

In the case of healthcare and education, Beijing has chosen to save resources or transfer them to state-owned enterprises rather than make sufficient public expenditures, while simultaneously preventing private enterprises from investing in these areas as businesses. There are some low-price private hospitals and clinics in China, but with limited resources and market shares. In manufacturing, the cost of capital to build up white collar employment for private and SME firms is typically two-to-five times that of the low nominal rates heavier state-owned enterprises enjoy. And when they are able to build a brand and their own intellectual property, poor enforcement of regulations and intellectual-property protection jeopardizes their ability to recover their investment.

These three sectors just scratch the surface of new job potential: China is far from suffering "overcapacity in everything." The problem is that what is overcapacity doesn't create many jobs.

Steel, aluminum, cement, plate glass and upstream petrochemicals together create just 14 million jobs in a labor pool of 780 million, which is fewer than the number of service-sector jobs in Guangdong Province alone.

China's consumption-urbanization policy thinking is the right way to go, but only if policy simultaneously addresses the biases in the financial sector that starve job-creating sectors while larding other industries with capital. What China needs to make its urbanization strategy the solution rather than an unsustainable bubble machine, to put it simply, is affirmative action for labor-intensive industries.

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Permalink 06:14:18 pm, by dacare, 198 words, 349 views   English (US)
Categories: Banking & Financial Services

Private equity helps boost China jobs, R&D-survey

Private equity investments in China lead to the creation of more jobs and spending on research and development than their publicly listed counterparts, a survey showed on Thursday.

Private equity has sometimes been viewed with apprehension in China, particularly when large state firms have been the targets of investments.

In a survey dating from 2002 to 2008, the European Union Chamber of Commerce in China said that the economic and social impact of private equity investments was quite positive.

Total employment at firms backed by private equity grew by 16 percent over that period, twice as much as at publicly listed companies, the EU Chamber said in a report. Salaries also grew more quickly, it said.

"Private equity's qualitative impact on hiring and compensation is helping to move China's economy toward greater domestic consumption and more secure social stability," it said in a report.

Research and development spending as a percentage of revenue in PE-financed firms was more than 2.5 times that of their publicly listed peers, it added.

PE-backed firms saw a 39 percent average increase in profits over that period when compounded annually, compared with 25 percent among publicly listed companies, the Chamber said. (Reporting by Jason Subler; editing by Simon Jessop)

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Permalink 06:12:43 pm, by dacare, 570 words, 587 views   English (US)
Categories: Manufacturing & Industry

China's manufacturing hits 20-month high

Simon Rabinovitch and Aileen Wang

China's manufacturing sector steamed ahead in December as strong rises in new orders and output drove a key economic survey to a 20-month high.

The official purchasing managers' index (PMI) jumped to 56.6 in December from 55.2 in the previous month, the China Federation of Logistics and Purchasing (CFLP) said on Friday.

It was the tenth straight month that the index has stood above the watershed mark of 50, indicating an expansion of activity.

As the biggest month-on-month rise since March, it also suggested that the Chinese manufacturing sector, far from plateauing after its recovery, has actually gathered momentum.

“December's PMI reading suggests sustained expansion in industrial activity,” Jing Ulrich, chairman of China equities at J.P. Morgan, said in a research note. “The forward-looking components of PMI indicate continued expansion in both domestic and external demand.”

But a slower expansion of new export orders for the second straight month may offer pause to officials who have been extremely cautious in winding down loose, pro-growth policies, believing that domestic stimulus is still needed to counteract sluggish external demand.

“The fall in the indicator for new export orders warrants attention, as it shows we must avoid undue optimism about the improvement in the international marketplace,” said Zhang Liqun, a researcher at the State Council's Development Research Centre who comments on the PMI for the logistics federation.

Another mildly discordant note among the otherwise rosy survey was the reading for input prices, which climbed to a 17-month high of 66.7 in December, up from 63.4 in November.

“The input price rise shows that the production cost of enterprises are climbing. Enterprises should work to increase their capability to withstand rising costs,” Zhang said.

Worries about price rises have emerged again in China after deflation for much of 2009, with top leaders saying that controlling inflationary expectations will be one of their priorities this year.

The dominant theme of the PMI, though, was the broadening strength of China's recovery. Seventeen of 20 industries surveyed reported an expansion in activity, with metal products the strongest and tobacco at the low end.

China's economy shot back to nearly double-digit growth in 2009 after nearly standing still at the end of 2008, giving a lift to Asia and countries that have been able to feed its voracious appetite for commodities.

An unexpected surge in South Korean exports in December was the latest evidence of how economies that are intertwined with China have benefited.

China's PMI also showed that the country's job market has continued to improve. The employment sub-index hit 52.2 in December, up from 51.1 in the previous month, as 12 of 20 industries reported increases in hiring.

Many analysts believe that two crucial preconditions for China to begin tightening policy more aggressively are a recovery in employment and a sustained increase in exports.

At the height of the global financial crisis, China's central planners worried the country would be unable to reach the 8 per cent growth deemed necessary to maintain employment and avert social instability.

The country's 4 trillion yuan stimulus package, complemented by a record surge in bank lending, propelled the economy to 8.9 per cent year-on-year growth in the third quarter of 2009 and put it on track for even faster expansion this year.

“We expect China's strong economic growth momentum to continue in 2010, with the major source of growth coming from a broad-based improvement in private consumption, and further strengthening in private housing investment, and a solid recovery in exports,” Ulrich said.

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