Recruiting in China

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.

China Career Builder Corp., ("The Company or CCB") (PINK SHEETS: CCBX) a Delaware Corporation, is focused on outsourcing human resource services and staffing services in Hong Kong, China. Today, the company is pleased to announce has signed a Letter of Intent to acquires 49 percents of Issac Search Ltd of Hong Kong. This acquisition is consistent with the company's Strategic Business Plan, designed to build enterprise value through organic growth and select acquisition opportunities. The company is expected to complete satisfactory due diligence in the next Three (3) weeks, and complete the acquisition by the end of Q4, 2009 or early Q1 2010.

"We have been selectively considering strategic alliance or acquisition candidates for some time to achieve CCB's strategic vision. We are confident this acquisition with Issac Search Ltd enhances that vision and provides the elements required to expedite our business model," added CCB's President, Mona Yim.

ABOUT THE COMPANY

China Career Builder Corp. (The Company) through its subsidiary Asian Career Company Ltd. provides outsourcing human resource services and staffing services in Hong Kong, China. The company provides recruitment services focusing on the professional, management, clerical, administrative, IT and industrial market. Its services include screening, recruiting, training, workforce deployment, loss prevention and safety training, pre-employment testing and assessment, background searches, compensation program design, customized personnel management reports, job profiling, description, application, turnover tracking and analysis, opinion surveys and follow-up analysis, exit interviews and follow-up analysis, and management development skills workshops. The company markets its recruitment services through a combination of direct sales, telemarketing, trade shows, and advertising. The company incorporated in Delaware, headquartered in Hong Kong, China.

For further information please refer to the Company's website at www.ChinaCareerBuilder.com

If you would like to receive regular updates on China Career Builder Corp. please send your email request to info@ChinaCareerBuilder.com or contact the company's Investor and Public relations at ir@ChinaCareerBuilder.com .

TAIPEI, Taiwan -- Proficiency in the English language helps create better job opportunities and brings comparatively higher pay for employees in Taiwan, according to the latest survey by an online employment agency. As high as 68 percent of enterprises or organizations in Taiwan include a good command of English among the major criteria when recruiting new employees. They are also willing to offer an average of NT$3,105 more in starting salaries to those with stronger competence in the international language.

The survey by online job agency www.1111.com.tw also shows that companies in the field of trading, product distribution, industrial and commercial services and education, as well as government agencies place the highest priority for English proficiency.

However, only 22 percent of salary earners presently possess credible English proficiency certificates.

A high percentage of job seekers — 67 percent — admit they lost interview opportunities when looking for new jobs because of inferior English capability.

The survey finds that 71.2 percent of employees believe that improved English ability will bring more employment opportunities and better positions with higher pay.

But among the 78.2 percent of employees who still have no English proficiency certificates, 64 percent acknowledged that their current level is still not up to the tests, while 36 percent said they even don't know how to prepare for such examinations.

A representative of the Educational Testing Service (ETS) of the U.S. stationed here said the average TOEIC (Test of English for International Communication) score in Taiwan ranks at eighth place in the Asian region, falling behind China and South Korea.

The general English level of professionals like certified public accountants and lawyers, as well as R&D staff at electronics and other high-tech companies in Taiwan, is below international standards, hampering the nation's overall competitiveness in the world market, he said.

But he also pointed out that the number of people taking the TOEIC certifying test here has continued to increase in recent years, rising to 180,000 in 2008 from about 40,000 in 2004.

This shows that more people in Taiwan have become aware of the important role of English language in their careers.

Another positive development is that the average TOEIC score of marketing staff here has risen above the level of people in similar positions around the world, he said.

The survey of English proficiency and job opportunities, covering 488 employees and 1,465 employees, was carried out islandwide Oct. 1-14 this year.

by Patrick O. Courtois, DaCare Consulting

I tend to receive a recurring misconception about the Chinese labor market from overseas-based clients. This misunderstanding primarily affects overseas-designed provisional staffing budgets as well as the perceived value of quality of China-based recruitment agencies. In short, agencies are perceived to attempt inflating candidate packages for higher fees. While some rogue agencies do, there is a distinctive trend that the cost of Chinese talent is catching up with international benchmarks.

China is an emerging Dragon, Shanghai, a crouching tiger… China is an emerging and developing economy. At least, it is its official status according to the International Monetary Fund's World Economic Outlook Report, dated April 2008 (1). Taking into consideration the measurement criteria, based on statistical indexes of element like income per capita, GDP, literacy rate and such, are calculated against the sheer size of its population, it can only make sense.
Shanghai is, along with Beijing, Guangzhou and Shenzhen the economy’s locomotive. Having the status of “wealthiest” city in China, with a GDP per capita, above US $7,000 for 2007, it is however still far behind any Major European capital (2). To give you a clearer idea, Shanghai’s GDP per capita is below a city like Istanbul, Turkey (3). Once again, keep in mind the size of Shanghai’s population (over 15 million souls) and you can understand that GDP per capita does not necessary reflect the reality of local white collars, which are far from being the majority.

Another interesting piece of information is the Mercer's 2008 Worldwide Cost of Living survey (4), which gives us an idea on the rising costs of living in Beijing and Shanghai, with both cities present in the Top 25. The results, however not entirely applicable to local nationals, as based on expatriate populations, still gives us an insight on a certain reality of the local economy. That is, the gap in cost of living observed between a modern city like Shanghai and other “emerging” one, in China.

Despite all these, Shanghai can still be considered as a “cheap” city, with low business operations related costs, minimal salaries requirements, and reasonable living costs below those of similar sized cities in US or Europe.

The “Made in China” picture of low wages is still relevant today. Compared to wages in the EU or US, employing local nationals is indeed an affordable option. Looking at the table 1 comparison of the median US, UK and Chinese total packages (salary + bonus and benefits) on some common positions, the point is made. At first glance, it quickly illustrates the cost-effectiveness of employing local nationals, considering we are talking about the “median” or average population, of course. It quickly demonstrates that employing the “average” local candidate can still be regarded as a cost-effective solution.

If you pay peanuts, you get monkeys… No offence to anyone in particular, as this applies to pretty much anywhere around the world… But, If you take a closer look at this “average” labor market, as it is the one providing input for most official statistics, surveys and other reports that one can easily find online and, incidentally, the segment on which a lot of people base a provisional recruitment budget upon, you get a rather interesting picture... Simply put, by a fellow recruitment specialist, “the average employee in China does not speak English, he does not work in a foreign firm, he does not think outside the box, understand western reporting structures, go to a top university, or have a chance of getting hired into your firm…”(5).

The average candidate has also the shortest retention potential, following a simple logic of job hopping for ever shinier titles and bigger financial packages, thus leaving a city like shanghai with a dramatic employee turnover at around 18 months and a managerial workforce with somewhat arguable overall managerial skills.

If you are the decision maker of one of these multinationals, which are slowly initiating a shift toward management localization by cutting off expatriates’ budget plans, would you really consider handing over the keys to your financial, commercial or product development operations to an average candidate whom, however nice of a person, would most likely fail to properly relate to, understand or even communicate on basic day to day issues?

No money, no honey… On the other hand, you have the candidates which are at the center of what is now known as the “Talent War” (6). These are candidates with bilingual English abilities, 5 to 10 years of solid people and projects management experience, strong overseas exposure, the ability to think in a systemic way, whom are fully acquainted with western reporting systems, can deal with foreign clients with the highest level of service quality, have graduated from top Western universities and can leverage on the added-value of their biculturalism. These are the candidates companies are fighting over for in Shanghai, Beijing or other tier 1 cities, with packages narrowing closer to those in the US or Europe, and sometimes going well beyond.

Figure 2 sheds some light on a more relevant picture of the Shanghai employment market (for top candidates), with key functions such as Finance, HR or Sales clearly aligning themselves on EU/US levels. This “headhunter’s” dream can quickly turn into an employer’s nightmare, if the latter does not properly understand the realities applying to the local market: An overall talented, self-motivated, creative, and experienced manager is a scarce resource in China, and a 28 years old sales manager making above RMB 1 million (EUR 100,000) is common.
Assignments, completed by Orion China, regularly cover positions for Financial Controllers around the RMB 500,000 (EUR 58,000) figure, HRDs in the vicinity of RMB 700,000 (EUR 80,000) and many others, with financial packages often giving a new meaning to the common image of China as the land of cheap labor. You need to face the facts, if you want to buy yourself the next superstar everyone else wants, you will most likely have to fork out a substantial amount for it, at least, more than your competitors.

Money can’t buy happiness…but you can definitely get yourself a top senior HR or Finance candidate, in China, for the right price… Sure, there are no comparisons possible between a Shanghai or Guangdong based factory worker and his counterpart in Europe, the US or Japan. China has and will continue to retain its image of “world’s factory” for years to come, with affordable labor costs and ever increasing quality standards. Nonetheless, good management, talented leaders and high potential profiles come with a high price tag, just like it would, in “Developed” economies.

Companies that will successfully implement localization strategies, in the upcoming years, and leverage on the amazing opportunities this rapidly growing market yields; are the ones currently understanding that quality, experience and skills come at a certain price, in particular in the Chinese economic capital Shanghai is. A solid and ethical executive search firm, with deep networks, up-to-date market knowledge, and experienced consultants, is therefore a partner of choice to prevent your next hiring from becoming a time bomb, in your company’s development plan, or a pricey mishap that may not look great during your next board meeting.

During tough economic times there is intense pressure on all functions within the business to re-think their current approach in an effort to become more competitive and aggressive all while containing cost.

Unfortunately, many recruiters and recruiting leaders choose an opposite path, becoming more conservative in their approach. When markets head south and fear about economic issues grip the populace, consider a counter-cyclical recruiting strategy that sends a clear message to everyone inside and outside your organization that talent truly means something to your organization.

One controversial yet extremely public, effective outside-the-box recruiting approach you might consider is “proximity recruiting.”

You Must Do Internet and Physical Recruiting
Even with the tremendous growth of Internet recruiting, not everyone is actively surfing the Internet looking for a job or combing through their email in anticipation of your generic form letter introduction.

Reaching a greater percentage of the population relevant to your job searches often requires using at least three channels to reach them, one of which should be physical. The underlying concept of physical recruiting is a simple one, just as robbers target banks because that’s where the money is! Recruiters need to target physical locations where a large number of potential hires can be found.

While nearly everyone in recruiting is familiar with the dreaded job fair, there are numerous other approaches to physical recruiting that are far more effective and fun. One such approach is “proximity” or event recruiting. Proximity recruiting at professional events (tradeshows and seminars) is clearly becoming more mainstream, but one location in particular really elevates the visibility of your efforts and qualifies as “outrageous.” The location? Across the street or in the parking lot of talent-competing firms in trouble.

Proximity Recruiting with a Taco Truck
If you have been paying attention to the business press lately, you are probably aware that Internet giant Yahoo! was planning to lay off approximately 1,000 employees worldwide, the greatest percentage of which would come from its Silicon Valley headquarters in Sunnyvale, California.

What you may not know is that despite a multi-year trend of notable voluntary exits by key employees, Yahoo! is still considered by many to employ some of the greatest engineering talent in the industry. This talent is extremely valuable to hundreds of upstarts working on next-generation technologies.

Yahoo!, like many organizations planning a reduction in force, kept its plans secret until the day when the axe actually swung. Because employees knew pink slips were coming, but no real guidance was offered as to who would be impacted, more people were concerned than would actually be cut.

Seizing on that fear and the actual swinging of the axe, Tokbox, an upstart enabling free voice and video calling over the Internet without any software download, engaged a proximity recruiting strategy that some may consider outrageous.

While pink slips were being handed out, Tokbox executives were setting up a taco truck across the street from Yahoo’s corporate campus, offering employees affected (and anyone else that wanted to chat) a hot lunch and information about employment opportunities.

Their approach was a simple one. They leased a taco truck and driver for the day, set up across the street in plain view, and offered a hot lunch to any Yahoo! employee who wanted to talk. Company executives were on hand and the atmosphere was light.

In order not to make anyone overly nervous, the conversations were kept short. While proximity recruiting has become more common in the Silicon Valley, Tokbox’s efforts still garnered a great deal of press both on the Internet and via the mainstream news media, earning them hundreds of thousands of dollars worth of free PR and employment advertising.

Other Proximity or Event Recruiting Opportunities
If you are not ready to offer free food or display a banner, consider additional proximity recruiting approaches:

A van with a recruiting banner. If there was a most commonly used form of outrageous proximity recruiting, it would have to be the use of the recruiting van (usually with a large banner) that is parked within easy view of a large corporate site or a commuter site frequented by target talent. The “banner van” parked across the street approach has been used both in high-tech and healthcare to target firms that are currently going through acquisitions, union problems, and workforce reductions.
The “across the street” bar, restaurant, or gym. Almost any firm with a large number of employees has a bar or restaurant close by where a significant number of the site’s employees go for a drink or meal with a colleague. These locations are packed with employees wearing IDs, who incidentally, often have their guard down. Health clubs and gyms are also great spots to target.
Award events. You’re almost guaranteed to meet the best and brightest at events that offer awards or prizes for excellence and innovation. Not only should the recipients be targets but you should also look at award presenters as both potential targets and as referral sources.
College recruiting approaches. Because college students love to attend events, proximity recruiting should be a major part of your university recruiting effort. Place a “banner van” key across the street from college campuses. Consider recruiting at campus club meetings, at college sports events, at music concerts, on the beach during spring break, and even at both on- and off-campus college poker events.
Conventions. If you’re trying to hire a nurse, it only makes sense to recruit at a bar inside or outside a nursing-related convention, or where nursing continuing education is being offered. Here again you have the advantage of almost everyone having a name tag with their own and their company name on it.
Clubs and groups. If you are seeking individuals with certain skills or attributes, consider recruiting at clubs, societies, or organizations where individuals with these attributes are common. For example, if you’re looking for risk-takers, target rock-climbing clubs. If your search includes disciplined individuals, consider military groups, math societies, and music groups.
Hotels where company events are held. When you think about it, companies do send their very best people to meetings, seminars, and events. Occasionally, corporate events are announced on the hotels marquis for everyone to see, making it easy to schedule your next pub crawl. This time of year, immediately before a firm’s holiday party gets underway, is another time to begin building relationships with potential targets.
Corporate training centers. Many firms send their best employees to corporate training. Because a good deal of corporate training can be long and dull, there is a high likelihood that a large group will go out for cocktails in the host hotel or at a nearby bar. So, if you have large corporate training centers near you, consider them prime targets.
Shareholder meetings. The bar across the street from the location of the annual shareholders meeting will almost always include a number of company employees and leaders. Go before or after the event to make contacts and build relationships.
Miscellaneous. Firms have practiced “proximity recruiting” at other events and sites including wine festivals, home shows, in shopping malls, and at charity events.
Final Thoughts
If you are put off by the concept of boldly “raiding” other firms, you should realize that “stealing” another firm’s customers is already an accepted and common practice. Both sales and recruiting are competitive functions where the most desirable targets have already been captured by your competitors. As a recruiter, your job is to provide your coworkers with the best teammates that can be found anywhere, period.

No matter what you do, you can never successfully recruit a firm’s employees unless the firm that the employee currently works at has already failed to offer them opportunities that are superior to yours. If you are even slightly hesitant about raiding firms like GM, Ford, Chrysler, Citigroup etc. that have clearly failed their current employees, don’t be surprised when you are replaced by a recruiter who is more aggressive, bolder, and more willing to try something new.

Multinational companies' (MNC)'s hiring expectations have largely declined in the second quarter, after sustaining a high level for a long period, but are rising in some sectors, a recently released human resources (HR) report said.

However, most respondents of globally leading recruitment and HR management firm Hudson's survey remained optimistic, saying they considered an imminent recession in China's employment market unlikely.

The global Hudson Hiring and HR Trends Quarterly Report surveyed 718 executives of MNCs in China from sectors including banking and financial, IT and technology (IT&T), manufacturing, consumer, and media, public relations and advertising.

It said overall hiring expectations in the emerging market are declining, with 52 percent of respondents expecting to increase headcount, compared with 61 percent in both the previous quarter and the corresponding period of 2007.

The report also found 14 percent of respondents in China expected the country would face a recession in the next six months - fewer than in any other Asia market surveyed. In Japan, for example, 41 percent of respondents believed a recession was imminent.

Of those anticipating a recession in China, 73 percent believed it would impact their industries.

At 57 percent, the banking and financial services sector reported the highest hiring expectations - although 12 percentage points fewer than in the first quarter.

Some banks are more cautious in their hiring projections, particularly in the consumer-banking sector, where they haven't yet obtained all required licenses, Hudson's Shanghai General Manager Angie Eagan said.

Employment expectations are rising in the media, public relations and advertising industries, where 55 percent of respondents forecasted headcount growth, compared with 47 percent in the first quarter. Many agencies started hiring after Chinese New Year, when clients had finalized their marketing budgets.

The IT&T segment also reported rising expectations, with 55 percent of respondents saying they will hire more staff - compared with 50 percent in the first three months of 2008. The sector remains buoyant as companies continue localizing IT operations.

Manufacturing companies' expectations increased slightly, with 53 percent planning to increase hiring, compared with 51 percent in the first quarter. Construction of MNCs' new manufacturing facilities in China is mostly driving demand for workers.

Expectations underwent the steepest fall in the consumer industry, plummeting to 45 percent from 72 percent in the first quarter.

Hudson said many companies in the sector have been expanding headcount for a long time and have by now filled most positions, ushering the industry into a consolidation phase.

Recession doubted

Only 14 percent of respondents in China forecasted a recession in the next six months, reflecting the country's economic buoyancy. Responses from China were fairly consistent across industries on the issue, although at 21 percent, those from the IT&T sector were most inclined to expect a recession.

"This may reflect a continuing caution in the wake of dotcom failures, as most companies in this sector are busy and are recruiting additional staff," Eagan said.

Most firms would adopt headcount freezes in a recession, with 84 percent of respondents saying they would use the policy to weather the tough times.

Use of salary freezes was the second most-frequently mentioned recession-survival method, with 35 percent of respondents in China saying they would use the policy - more than in any other surveyed Asia market. Firms in China were also the most likely among those surveyed on the continent to cut training in the event of a recession, a measure 18 percent of respondents mentioned.

Media, public relations and advertising firms were particularly reluctant to cut staff, with just 15 percent mentioning the option. However, they were most likely to freeze headcounts and salaries, at 94 and 48 percent, respectively.

At 33 percent, banks were the most likely to cut staff in a recession, as high salaries are typical in the industry.

Firms in the IT&T sector were most likely to cut training, with 44 percent of respondents mentioning the option. "Technical training can be very expensive in China," Eagan said.

HR challenges

As in the other surveyed Asia markets, "hiring the right staff" and "retaining talent" remained the most critical challenges.

Across all sectors, 48 percent of respondents said recruitment was the greatest challenge, while 27 percent said retention was.

Compared with other surveyed markets, respondents in China most emphasized recruitment over retention. The country also had the highest percentage of firms identifying recruitment as the greatest challenge and the lowest identifying retention.

At 65 percent, the media, public relations, and advertising sector had the most respondents identifying hiring the right staff as the greatest challenge. The market for talented professionals with relevant experience has remained tight, especially at senior levels.

Retaining talent is a major concern for the banking and financial services and the manufacturing sectors. In the banking and financial services sector, 30 percent of companies identified this as their most critical challenge, as did 28 percent in manufacturing. Currently, companies in both sectors are focusing on retaining high performers with specialized skills.