Beijing, China: 28th March 2008 -
MRI China Group, one of the leading and fastest growing recruitment consultancies in Asia today announced that findings of its Annual Compensation Package Report in China reveal that compensation packages for mid to senior level talent at Multinational Corporations (MNCs), who changed jobs during 2007/2008, are still growing at record levels amidst slower economic growth and appreciation in the value of the RMB.
The survey shows base compensation rates jumping by 38%; and 34% for total compensation within the top talent pool in 2007/2008. “Similar to last year’s trend, the study reveals that over 90% of sought after talent are Chinese nationals, highlighting the high degree of companies’ continued focus on localising their leadership teams in China,” comments Mr Tony Dickel, CEO,
MRI China Group.
The Banking sector reported the highest compensation increases of over 50% in 2007/2008, compared to other industry groups due to the rapid expansion and opening of the banking industry in China.
Average Total Package Increase (by percentage)in 2007/2008 by industry and function Average Total Package increase
By Industry 2007/Early 2008
Banking 53%
Industrial/Manufacturing 40%
Life Sciences 37%
Chemicals 35%
Retail 31%
Consumer Products 26%
IT/Technology 24%
Supply Chain/Logistics 16%
By FunctionHuman Resource Roles 35%
Finance Functional Roles 26%
“Enterprises may have reached a critical point in the compensation trends here in China as they struggle to cope with tight compensation policies and salary bands stemming from their US or Europe headquarters, who cannot comprehend the pace and speed of salary increases over here, “ remarks Mr Chris Watkins, China Country Manager,
MRI China Group “With new talent being offered up to 30% pay increases to join new companies, HR managers are striving to retain top talent in their companies.”
Summary of the 2007/2008 study:
• Over 95% of candidates accepted total compensation more than their current package.
• 49% of candidates received more than 30% increase over their previous total package.
• HR and Finance functional roles continue to be in high demand with 35% and 26% increases respectively.
• Most compensation packages increases are in the form of base salary with candidates becoming more focused on guaranteed income versus the total package.
Some Highlights of the study are as follows: 1) Large established firms have become a pipeline of talent to new and rapidly expanding MNCs that do not have strict banding structures in place.
2) Enterprises are continuing to hire high impact PRC nationals for VP, Director and Manager level roles in China.
3) Many companies attempting to replace expatriates with top local talent often result in local candidates receiving other offers during the recruitment cycle, enabling them to pick the most attractive offer.
4) Candidates are becoming more sophisticated in their approach to job changes as their personal and professional networks have expanded in the last 3-4 years.
5) Most candidates obtain at least 2 offers during the interview cycle as hiring cycles take 8-12 weeks to complete. Top talent often get interviews with multiple companies to obtain the most attractive compensation package.
6) In the last 18 months many MNCs were aggressively reviewing “top performers” and awarding them significant pay increases in a bid to retain them, especially when they had obtained an offer from another firm. However, this practice led to an overall cost increase to both the new and existing employer.
7) Many companies are unwilling to lower their expectations for candidates’ language skills, technical skills, managerial and leadership competencies, therefore end up paying at the higher end of compensation bands.
About the SurveyThe study represents data compiled from hundreds of individuals who changed jobs for mid to senior level positions in 2007 and early 2008, from one MNC to another. The data pool represents approximately 90% Chinese nationals and 10% foreign nationals with over 115 U.S. or European MNCs across industries in mainland China.
About MRI China GroupMRI China Group is a leading recruitment and human resource solutions company with regional headquarters in Hong Kong. It is served by offices covering Asia in Shanghai, Beijing, Guangzhou, Chengdu, Macau, Manila, Kuala Lumpur, Seoul, Singapore and Taipei with over 200 staff. It is part of
MRINetwork Worldwide, one of the world’s largest search companies, providing retained executive search and recruitment services, competitive market analysis, talent market research, recruitment consultancy and recruitment process outsourcing solutions to clients in every major industry, serving multi-national and local companies on a global basis.
MRI China Group has been awarded CCH/China Staff “Recruitment Firm of the Year, China” in 2003, 2005, 2006, 2007 and was runner up in 2004. For more information, please visit
www.mri-china.com