Employment levels predicted to remain robust in China for Q1 2012

Key Survey findings: (Source: Michael Page Employment Index report Q1)

• China leads the Asia region for companies intending to increase headcount
• 69% of companies will focus hiring activity on revenue-generating roles, a trend continuing from the previous quarter’s result.
• 40% of employers surveyed predict staff turnover levels will increase, with talent management increasingly becoming a key business concern

19 Dec 2011: Job opportunities in China will remain positive into the new year with 49% of employers planning to increase headcount during the first quarter, according to the latest Michael Page Employment Index.

“Despite economic issues elsewhere in the world, there is positive business sentiment among companies in China which is translating into solid recruiting intentions for the new year. China is leading the Asia region in terms of this optimistic outlook for job opportunities,” says Mr. Andy Bentote, Managing Director for Michael Page, Northern and Eastern China.

The majority of companies (69%) intending to increase staff numbers will focus their hiring activity on revenue-generating roles, indicating companies are looking to position themselves for business growth in China.

As the volume of job opportunities remains robust, job seekers are still confident about making their next career move. Some 40% of employers surveyed expect staff turnover levels will increase in the coming months; a factor based on the time of year with salary reviews and Chinese New Year bonuses. As a result of this and not surprisingly, the attraction and retention of top talent is considered by just over half the survey respondents (51%) as their primary business concern.

“The retention of top talent is important for employers in China particularly at this time of year with salary reviews and bonuses, and they will look to offer incentives to keep their best people. In addition to financial rewards, companies surveyed have indicated that they plan to also use training and development opportunities in an effort to entice their best performers to stay,” Mr. Bentote adds.

China continues to be seen as the ‘growth engine of Asia’ despite the potential impact from the downturn occurring in international markets. However, an interesting finding in the Q1, 2012 Employment Index is that 54% of companies will look to recruit an increased number of contract and temporary staff in the first quarter. This could indicate some change in the traditional employment focus in China on permanent roles.

“While the outlook for the employment market in China remains positive, particularly compared with other parts of the world, employers are indicating a level of flexibility is required within their workforce to adapt to changing market conditions,” says Mr. Bentote.

• To view the Chinese media release, click here

 

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