10 Misunderstandings About the Chinese Talent Market

Ed Barzilaij
Yvon Niu
World of contrasts
World of contrasts
World of contrasts
World of contrasts
World of contrasts
 World of contrasts

... as well in the labor market

 Print advertisement in newspaper
Junior post production in
television and film industry

Monthly salary
3,000 RMB

€ 300 per month =

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Online job posting

Managing director
Annual salary - 3 million RMB + Bonus
 CHINA US JAPAN NETHERLAND
S

Labor
38% force
62% Non
active
populatio
n
16%

14%

12%

10% 10% China

8%

6%

4%

2%

0%

-2%

-4%
98 1

98 1

98 1

98 1

99 1

99 1

99 1

00 2

00 2

00 2

01 2

01 2
0

5
3

3
9

0
 CHINA US JAPAN NETHERLAND
S

Labor Labor
38%
49%force 51% force
62% Non Non
active active
populatio populatio
n n
16%

14%

12%

10% 10% China

8%

6%

4%

2,3% US
2%

0%

-2%

-4%
98 1

98 1

98 1

98 1

99 1

99 1

99 1

00 2

00 2

00 2

01 2

01 2
2

5
0

3
9

0
 CHINA US JAPAN NETHERLAND
S

22%
Labor Labor Labor
38% 49%force 51% force force
62% Non Non
78% Non
active active active
populatio populatio populatio
n n n
16%

14%

12%

10% 10% China

8%

6%

4%

2,3% US
2% 1,7% Japan
0%

-2%

-4%
98 1

98 1

98 1

98 1

99 1

99 1

99 1

00 2

00 2

00 2

01 2

01 2
0

3
3

0
 CHINA US JAPAN NETHERLAND
S

22%
Labor Labor Labor Labor
38% force46%
49%force 51% force force
62% Non Non
78% 54%
Non Non
active active active active
populatio populatio populatio populatio
n n n n
16%

14%

12%

10% 10% China

8%

6%

4%

2,3% US
2% 1,7% Japan
2,2%
0%
Netherlands
-2%

-4%
98 1

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 2,300 interviews

in Beijing, Shanghai and Guangzhou

10 Misunderstandings About the Chinese Talent Market
 True
1
China’s labor force counts more than 800 million on a total population of
1.3 billion.

Misunderstanding:

There’s absolutely a surplus in the labor market.

False

xx% xx%
 Height requirement

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QuickTimeª en een
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zijn vereist om deze afbeelding weer te geven.

 QuickTimeª en een
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 2 Misunderstanding:

Salary is the most important reason to switch jobs in China.

True False

xx% xx%
 52%

Career 47%
opportunities
High Salary

28%

Working 22% 22%

environment
(culture) Size of company Working location
As a Pull factor
-Salary vs. Career opportunities
-Salary vs. Acceptable workload
-Salary vs. Company size
-Salary vs. Employer reputation
-Salary vs. Working environment
 Career opportunities | 42%

Acceptable workload | 33%

Size of the company | 32%

Reputation/good name of company |

31%

Working environment (culture) | 28%

 3 Misunderstanding:

In China, the turnover rate in popular industries is more than 20%.

True False

xx% xx%
 YES NO

6% 94% Medical

11% 89% Banking/insurance

17% 83% Accountancy

12% 88% FMCG

9% 91% Telecom

9% 91% Technical

18% 82% IT
 4 Misunderstanding:

More than 10% of the working population in China

is actively looking for another job.

True False

xx% xx%
 I AM ACTIVELY LOOKING
FOR ANOTHER JOB
7%

I AM NOT LOOKING FOR

A JOB, BUT I REGULARLY
MONITOR THE MARKET

44 I AM NOT LOOKING FOR

% A JOB AT ALL AND
WOULD LIKE TO STAY IN
CURRENT JOB

49
%
 5 Misunderstanding:

Chinese professionals prefer Western managers.

True False

xx% xx%
 38%

32%

23%
21%

12%

6%

CHINESE EUROPEAN AMERICAN NON PRC JAPANESE/ NO

(SG/HK/MY/TAIWAN) KOREAN PREFERENCE
 37 MEDICAL
%

42 BANKING/INSURANCE
%

46 ACCOUNTANCY
%

36 FMCG
%

32 TELECOM
%

29 TECHNICAL
%

35 IT
%
 56% 32% 12%

NOT
(VERY) CAPABLE
CAPABLE NEUTRAL (AT ALL)
 6 Question:

What is more important in China?

Is it the job or who you work for?

The Job Who you work for

xx% xx%
 Corporate and Recruitment Advertisement

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Master -
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the
employer

Online job board and newspaper

The apprentice - the employee

 7 Misunderstanding:

Accountancy is a male dominated industry in China.

True False

xx% xx%
m female
ale
 m female
ale

Medical 22% 78%

FMCG 33% 67%

Accountancy 43% 57%

 8 Misunderstanding:

FMCG is the most desirable industry among Chinese talent.

True False

xx% xx%
Medical 84
%

Banking/insurance 60%

Accountancy 73%

FMCG 54
%

Telecom 72%

Technical 59
%

IT 76
%
 Medical
4%

18 Banking/insuranc
% e

14% Accountanc
y

12 FMCG
%

19% Medical

18 Technical
%

31% IT
 9 Misunderstanding:

“Chinese people desire democracy”.

Therefore they prefer a democratic corporate culture.

True False

xx% xx%
PROFESSIONAL 79%

STABLE 70%

HARMONIOUS 64%

STRICT 64%

DEMOCRATIC 59%

INNOVATIVE 59%

BUREAUCRATIC 23%

AGGRESSIVE 18%

INFORMAL 17%
 10 Misunderstanding:

Working hard is like second nature for Chinese professionals.

True False

xx% xx%
 28%

21%

18%

16% 16%

13%
11%

IT Technical Telecom FMCG Accountanc Banking/ins Medical

y urance
 56%

(VERY)
CAPABLE
3% POSSIBILITY TO WORK PART-
TIME

56%

4% POSSIBILITY TO WORK AT
HOME
(VERY)
CAPABLE

6% CONTRIBUTION TO SOCIETY
The End