Companies in China are planning to hire more foreign employees
in the next year, but a greater percentage of them already will be
living in China, said a global human resources services company in
a report released yesterday.
In the report, China Expatriate Compensation and Benefits Study
2006, Hewitt Associates said 53 percent of surveyed organizations
plan to hire more foreigners within the next 12 months.
Foreigners that are recruited from outside Asia are no longer
the largest foreigners group in China. They represent only
one-fourth of all foreign employees this year, compared with 30.7
percent in 2005. Instead, companies are increasingly recruiting
foreigners who already live in China, who represent almost half of
all foreign employees today, compared with 26.4 percent in
2005.
However, the most senior hires, such as executive directors,
non-China-based foreigners still make up the largest portion, the
report says.
Michael Song, head of Hewitt's China Compensation and Benefits
Consulting Practice, said, "China has experienced unprecedented
growth in recent years. This has led to shortages within the talent
market, most notably when it comes to senior management and
technical staff. As a result, many organizations are turning to
foreign talent to fill the gap. Despite this, companies are
increasingly trying to minimize their costs by hiring foreigners
already in China.
Companies also reported a shift in compensation structure for
foreigners. Although the total compensation still remains steady,
the data by Hewitt shows that from 2001 to 2006, there was an
obvious decrease in foreign employees' premium and an increase in
variable pay.
Diana Yang, also head of Hewitt's China Compensation and
Benefits Consulting Practice, said, five years ago, premium pay was
given as a reward to lure employees to China, considered a more
remote place at that time. Now, though, "China is not that remote
or tough anymore."
(Shanghai Daily December 15, 2006)