Economic Overview Global, Asia Pacific and China
World GDP and Inflation GDP goes up and Inflation goes down from 2013 to 2015 10.0
8.0
6.0
4.0
2.0
0.0 2008
2009
2010
2011
2012
2013
2014
2015
Emerging market and developing economies Inflation
9.2
5.4
5.9
7.3
6.0
5.8
5.5
5.2
Emerging market and developing economies GDP
5.9
3.1
7.5
6.3
5.1
4.7
4.9
5.3
World Inflation
6.0
2.5
3.6
4.9
3.9
3.6
3.5
3.4
World GDP
2.7
-0.4
5.2
3.9
3.2
3.0
3.6
3.9
-2.0
MERCER
Source: IMF World Economic Outlook (April, 2014) 1
Shift in Global Business Landscape
Driving corporate growth in Asia Pacific Asia Pacific vs. Developed markets
Asia Pacific still leading the pack
2.0% GDP growth
1.1% GDP growth
4.3% GDP growth
To cash in where the growth is today, and for the foreseeable future, Increasing focus on Asia Pacific MERCER
Source: APAC Exec Brief, August, 2014, IMA Asia
2
Regional GDP, Inflation & Salary Increase 12%
10%
8%
6%
4%
2%
0% AU
CN
HK
ID
IN
JP
KR
MY
NZ
PH
SG
TH
TW
VN
GDP
3.0%
7.4%
2.5%
5.0%
4.9%
0.4%
3.6%
6.2%
3.3%
6.2%
3.2%
1.1%
3.8%
5.0%
Inflation
2.6%
2.5%
3.8%
5.7%
7.3%
2.7%
1.5%
3.5%
2.0%
4.6%
2.1%
2.3%
1.7%
4.9%
Salary Increase
3.5%
7.5%*
4.5%
10.0% 11.0%
2.1%
5.0%
5.6%
3.0%
7.0%
4.5%
5.9%
3.8% 10.7%
MERCER
Source: IMA Asia Brief Aug 2014 Mercer Global Compensation Planning Report 2014 July *Mercer TRS Surveys 2014 3
China on Track for Moderate Growth GDP per capita
7961 7333 6747 6078 5434
2011
2012
2013
2014(F)
China’s Ranking of GDP per capita Year
Ranking
2011
91
2012
88
2013
84
2014(F)
82
2015(F)
81
2015(F)
1. Source: IMF World Economic Outlook (April, 2014). 2. GDP is expressed in current U.S. dollars per person. Data are derived by first converting GDP in national currency to U.S. dollars and then dividing it by total population. 3. For the ranking, there are 186 countries and regions with the data of GDP per. capita MERCER
4
China’s Total Debt vs. GDP Raised rapidly since 2008 economic risk increased
Source: Financial Times reported on July 22, 2014, citing estimates from Standard Chartered. MERCER
5
China PMI : Manufacturing and Services
55
PMI Manufacturing PMI Service
54
54.1
Highest
53
since Mar 2013
52
Service
51 50
50.2 49
Down Again
48
after 3-month up
47
Manufacturing
46 45 Aug Sep
Oct
2013
Nov Dec Jan
Feb Mar
Apr May Jun
Jul
Aug
2014 Source: HSBC September, 2014
MERCER
6
China GDP Growth Rate Forecast
CHINA: GDP Growth by Component, %
15
Manufacturing
Construction
Services
GDP
12
9
6
3
0 2010
2011
2012
2013
2014
2015
2016
Source: China Forecast Book, IMA Asia, 2014 Q3 MERCER
7
China Foreign Direct Investment (FDI) China FDI Growth
2013 FDI Flow
Growth Percentage(Year-on-year)
40
30
20
100
124 10
USD, Billion
0 FDI Outflow
FDI Inflow
-10 2014 -20 Q1
Q2
Q3
2011
Q4
Q1
Q2
Q3
2012
Q4
Q1
Q2
Q3
2013
Q4
Q1
Q2
Outflow > Inflow
2014
Source : Ministry of Commerce of the People’s Republic of China Source: World Investment Report 2014 United Nations Conference on Trade and Development MERCER
8
Innovation – A Path to Transformation China has improved its innovation from 2013 to 2014 Global Innovation Index rankings Country/Economy
Score(0-100)
2014 Rank
2013 Rank
Switzerland
64.78
1
1
United Kingdom
62.37
2
3
Sweden
62.29
3
2
United States of America
60.09
6
5
Hong Kong (China)
56.82
10
7
Japan
52.41
21
22
China
46.57
29
35
Russian Federation
39.14
49
62
Brazil
36.29
61
64
India
33.70
76
66
Source: The Global Innovation Index 2014 Cornell University, INSEAD, and the World Intellectual Property Organization (WIPO) MERCER
9
Source: CBN Weekly 2014 MERCER
10
Population Demographics – Gender Asia 100+
2030
95-99 90-94
2010
85-89 80-84 75-79 70-74 65-69 60-64 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 10-14 5-9 0-4
6.0%
4.0%
2.0%
0.0%
Male
2.0%
4.0%
6.0%
Female Source: UN Population Statistics 2012
MERCER
11
Population Demographics – Median Age 55
Median Age of the Total Population (Years)
50
1990
2010
2030
45 40 35 30 25 20 15 10 5 0
India
ASEAN
USA
Australia
China
South Korea
Japan
Source: UN World Population Prospects 2012 MERCER
12
China’s Changing Demographics Age Group between 20 - 59 Unit: thousand
250,000
200,000
20-29 30-39
150,000
40-49 50-59 100,000
50,000 1990
1995
2000
2005
2010
2015
2020
2025
2030
The forecast of the future population adopts medium fertility rate assumption. Source: World Population Prospects: The 2012 Revision, United Nations MERCER
13
Human Capital Index – by Region
1 0.8
Human Capital Index
0.6
Health and Wellness
0.4 0.2 0
Education
-0.2 -0.4
Workforce and Employment
-0.6 -0.8 -1 North America
• •
Europe and Central Asia
Asia and Pacific Latin America Middle East and Sub-Saharan North Africa Africa and the Caribbean
Enabling Environment
Overall index is unweighted average of the four pillar scores Scores are weighted by population; population data from United Nations Department of Economic and Social Affairs, World Population Prospects, rev. 2012. Source: The Human Capital Report, World Economic Forum, 2013 The report is published in collaboration with Mercer MERCER
14
Human Capital Index - China Rank #43 Country
Rank
Score
Switzerland
1
1.455
Finland
2
1.406
Singapore
3
1.232
Netherlands
4
1.161
Sweden
5
1.111
Japan
15
0.948
United States
16
0.920
Malaysia
22
0.644
China
43
0.186
Thailand
44
0.158
Russian Federation
51
0.010
Indonesia
53
0.001
Brazil
57
-0.054
Mexico
58
-0.057
Vietnam
70
-0.202
India
78
-0.270 Source: The Human Capital Report, World Economic Forum, 2013
MERCER
15
Summary •
China still has strong-to-moderate GDP growth rate in next 3 years.
•
Economic risk is raising due to stimulation.
•
China may become a FDI net outflow country in 2014.
•
China is on the way improving its Human Capital Index and innovation ranking in the world, while the aging population will be a issue, China has to seek way to offset its negative impact.
MERCER
16
New Technology Brings New Practices of Talent Management
HR Revolution with business change
MERCER
Hiring
Communi cation
Learning & Developm ent
Saving
18
From Graduates’ points of view
• •
Strong financial power Competitive benefits
• •
Attractive company products/services Innovative culture
•
Fast promotion Job Security
• •
• •
Performance-based bonus Fast promotion Entrepreneurship environment
But lack of… • •
Innovative culture • Inspiring leadership •
Grey area Compensation for OT
Data source: Universum MERCER
19
Graduate Top 3 Preferences
MNC SOE POE
OWN-BIZ START-UP Data source: Universum
MERCER
20
MERCER 24 October 2014
21
FIFA World Cup and Social Network
350,000 tweets Per day
62% out of 500 million
1,000 + million discussion Data source: Peel, eMarketer MERCER
22
Revolution in Recruitment Channel
MERCER
23
Revolution in Recruitment Channel
MERCER
24
And Now…
MERCER
25
Once upon a time…
“……以最饱 满的诚意,招 聘最优秀的人 才加盟,共同 谱写辉煌的未 来!”
MERCER
我们将遵循公平、公正的 原则择优录用,同时提供 具有竞争力的薪酬待遇和 广阔的发展空间,欢迎优 秀人才积极报名应聘。 26
And Now…
“他就是传说中最理性的感性的管理者…
无论多少关键词 都无法代表他的全部 现在 快加入…吧 让我们一起创造属于我们的下一个神话!” “希望有美感,性格外向活泼敢想敢做,梦想无限 的亲们踊跃加入!” “领导炫酷:工作时带领你,指点江山帅你一脸, 不定期释放傲娇卖萌特技…只要你来,绝不辜负!”
MERCER
27
Communication CEO Corner
MERCER
28
Learning & Development
MERCER
29
MERCER 24 October 2014
30
MERCER 24 October 2014
31
Chinese 85% employees are not good at financial planning and investment MERCER
Smart Saving The new thoughts on Benefits
Financial Management Seminar Investment Platform Smart Saving Customized Financial Management Solution
Do not forget, you are an inflation-linked bond! MERCER
3333
Leadership and Retention - Key to Business
I have trust in Company Leadership, who has clear goals and is guiding the company in right direction 5
Company Culture
4
Convenient Location
3
Standardized Management
2
Open door policy for complaints and appeals
1 0
Colleagues Relationship
Team Building Activities
Democratic and innovative environment
Flexible Working Hours
Recognition for individual performance Health Issue
Data source: 2014 Mercer Retention Survey MERCER
34
MERCER
HRHiring Marketing
CommuniTranspacation rency
Learning & Developme Innovation nt
HR Saving Finance
35
Compensation and Benefit Trends
Increasing of Mercer survey database from 2010 to 2014 No. of Survey Participants
700 600 500
2010 2011 2012 2013 2014
400 300 200 100 0
MERCER
Auto
Chemical
Consumer
High Tech
Life Science
GD All Office
GD All Manu
Source: 2011-2014 Mercer China TRS
37
China on Track for Moderate Growth GDP, CPI, salary increase and turnover rate GDP
18
CPI(Inflation Rate)
Salary Increase 15.7
16
Staff Voluntary Turnover
16.3
14.6 12.2
13
12
13.6
13.4
13.5
14
13.6
11.3
7.2 2014 1st half year
11.6 10 8
10.4 8.2
8.2
8.6
9.6 8.7
10.4 9.1
8.5
9.6
7.8
5.9 3.3
2 1.8
1.5
2005
2006
7.7
7.5
7.7
7.4
6.7
2.5
2.8
5.4
4.8
4
7.9
9.3
6.9
6
9.4
2.6
2.6
2012
2013
0 -2
2007
2008
2009 -0.7
2010
2011
2014(E) 2015(F)
Source : National Bureau of Statistics of China IMA Asia (Aug 2014) 2004-2014 Mercer Total Remuneration Survey MERCER
38
Salary Increase Rate from 2009 to 2015 Comparison across industries 10.0% 9.5% 9.0% 8.5% 8.0% 7.5% 7.0% 6.5% 6.0% 5.5% 5.0% Auto (1st Tier) Chemical (1st Tier) Consumer (1st Tier) High-Tech (1st Tier) Life Science Guangdong All Industries Office Guangdong All Industries Manufacturing MERCER
2009 7.1% 6.0% 6.8% 5.7% 8.3% 6.8% 6.8%
2010 8.4% 8.2% 7.9% 8.2% 8.4% 8.1% 8.1%
2011 9.7% 9.1% 8.6% 8.9% 8.8% 9.0% 9.0%
2012 9.4% 9.0% 8.2% 8.1% 9.1% 8.7% 8.4%
2013 8.5% 8.2% 8.1% 8.3% 8.5% 7.9% 7.8%
2014 (E) 8.2% 7.5% 7.7% 7.5% 8.1% 7.4% 7.3%
2015 (F) 8.3% 7.8% 7.8% 8.2% 8.4% 7.7% 7.5%
Source: 2009-2014 Mercer China TRS
Turnover rises in 2014 first half Voluntary staff turnover rate across years 25.0%
22.5%
20.0%
17.5%
15.0%
12.5%
10.0%
7.5%
5.0% Auto(1st Tier) Chemical(1st Tier) Consumer(1st Tier) High-Tech(1st Tier) Life Science Guangdong All Industries Office Guangdong All Industries Manufacturing MERCER
2008 10.5% 8.7% 15.0% 14.6% 16.6% 13.7%
2009 11.7% 6.9% 13.8% 8.7% 15.2% 12.1%
2010 14.6% 9.5% 18.9% 14.6% 18.7% 13.5%
2011 15.1% 10.6% 17.3% 15.1% 16.9% 16.4%
2012 13.2% 9.6% 18.3% 11.1% 14.3% 15.2%
2013 12.1% 8.3% 17.8% 14.9% 15.2% 15.0%
22.0%
16.6%
20.5%
20.1%
19.2%
21.5%
2013 1st Half 7.6% 4.6% 8.7% 6.6% 6.4% 7.6% 10.0%
Source: 2009-2014 Mercer China TRS
2014 1st Half 8.1% 5.0% 8.6% 7.9% 8.4% 12.9%
Involuntary Turnover 2011-2013 %
7
6
5
4
3
2
1
0
2011 2012 2013
MERCER
Auto (1st Tier)
Chemical (1st Tier)
Consumer (1st Tier)
High-Tech (1st Tier)
Life Science
Guangdong All Industries Office
1.4 1.8 2.8
1.8 4 4.3
3.6 5.4 5.1
1.5 2.8 6.3
2.4 1.8 4.9
4.3 4.7 4.7
Guangdong All Industries Manufacturing 3.8 4.8 4.8
Source: Mercer 2014 China TRS report
Turnover Rate of Guangdong All Industries Office by Function (Recent 3 Years) 16.0%
14.0%
12.0%
10.0% 2011 8.0%
2012 2013
6.0%
4.0%
2.0%
0.0% Finance
MERCER
HR
Marketing
R&D
Sales
Supply&Logistics
Source: Mercer 2014 Guangzhou All industry Office TRS report
Turnover Rate of Guangdong All Industries Office by Function (Recent 3 Years) 18.00%
16.00%
14.00%
12.00%
10.00% 2011 2012 8.00%
2013
6.00%
4.00%
2.00%
0.00% Finance
MERCER
HR
Marketing
R&D
Sales
Supply&Logistic
Source: Mercer 2014 Guangzhou All industry Manufacturing TRS report
Talent market reflect economy: hiring intention shrinks in 2014 hiring intention also shrinks in 2013 2013-2014 hiring intention in next 12 months 69%
Auto
28%
73%
23%
52%
Chemical
7%
39%
58%
9% 39%
52% 59%
6% 37%
63%
Hiring intention in 2014 Hiring intention in 2013
4%
44%
52% 20%
6% 37%
47%
10%
6%
39%
59%
0%
6% 22%
54%
Guangdong All industry-Manu
4%
31% 72%
Guangdong All industry-Office
3%
42%
Life Science
MERCER
8%
41%
52%
Hi-Tech
4%
40%
52%
Consumer
3%
9% 43%
30%
40%
50%
60%
70%
5% 80%
90%
100%
Adding
No Change
Reducing
Adding
No Change
Reducing
Source: 2013-2014 Mercer China TRS
2014 Prize for Performance Target variable bonus as percentage of base salary 90% 80% 70% 60%
3 months payment
50% 40%
2 months payment
30% 20% 10% 0%
Auto(1st Tier) Chemical(1st Tier) Consumer(1st Tier) High-Tech(1st Tier) Life Science Guangdong All Industries Office Guangdong All Industries Manufacturing
MERCER
Executive
Mgmt - Sales
25% 23% 26% 26% 29% 26% 25%
22% 29% 41% 35% 57% 41%
Mgmt - Non Sales 20% 19% 18% 20% 22% 20% 19%
Prof - Sales 32% 33% 47% 46% 87% 49%
Prof - Non Sales 18% 17% 14% 18% 17% 16% 17%
Para-Prof White Collar 18% 16% 13% 17% 16% 15% 15%
Source: 2014 Mercer China TRS
Overall 21% 19% 19% 22% 23% 21% 20%
2014 Pay Mix Policy Guangdong All industries - Office Executive
Management -sales
Management -non sales
Professionalsales
Professionalnon sales
85%
84%
82%
ParaProfessionalWhite Collar
77% 72%
Guarantee Cash
70%
30%
28% 23% 18%
MERCER
16%
15%
Source: 2014 Mercer China TRS – Guangdong All Industries Office
Variable Cash
2014 Pay Mix Policy Guangdong All industries - Manufacturing Executive
76%
24%
Management Management Professional-non sales sales -sales
Professionalnon sales
82%
83%
73%
83%
Para Professional – Blue Collar
82% Guarantee Cash
71%
29%
27% 18%
MERCER
ParaProfessionalWhite Collar
17%
17%
18%
Source: 2014 Mercer China TRS – Guangdong All Industries - Manufacturing
Variable Cash
Year Over Year Comparison 2014 vs. 2013 Guangdong All Industries – Office (Annual Total Cash – Actual)
Staff
Prof
Mgmt
Executive
Position Class 60 59 58 57 56 55 54 53 52 51 50 49 48 47 46 45 44 43 42 41 40
P25
2014 2013
Year
Movement
2014 vs. 2013
+1.6%
2013 vs. 2012
+1.9%
2012 vs. 2011
+10.8% RMB
0
MERCER
Med P75
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
Source: 2013 & 2014 Mercer China TRS – Guangdong All Industries Office
Year Over Year Comparison 2014 vs. 2013 Guangdong All Industries – Manufacturing (Annual Total Cash – Actual)
Para-Prof
Prof
Mgmt
Executive
Position Class 60 59 58 57 56 55 54 53 52 51 50 49 48 47 46 45 44 43 42 41 40
P25
2014 2013
Year
Movement
2014 vs. 2013
+1.8%
2013 vs. 2012
+7.2%
2012 vs. 2011
+5.7% RMB
0 MERCER
Med P75
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
Source: 2013 & 2014 Mercer China TRS – Guangdong All Industries Manufacturing
Year Over Year Comparison 2014 vs. 2013 Guangdong All Industries – Manufacturing (Annual Base Salary) Overall RMB
2014
2014 vs. 2013 : 6.3%
2013
Annual Base Salary (Thousand RMB per annum)
2,400 2,200
Executive
2,000
2014 vs. 2013 : 5%
1,800 1,600 1,400
Management
1,200
2014 vs. 2013: 5%
Professional
1,000 800
2014 vs. 2013 : 7%
Para-Professional 2014 vs. 2013 : 8%
600 400 200 0 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 Position Class MERCER
Source: 2013 & 2014 Mercer China TRS – Guangdong All Industries Manufacturing
Year Over Year Comparison 2014 vs. 2013 Guangdong All Industries – Manufacturing (Annual Total Cash - Actual) Overall RMB
2014
2014 vs. 2013 : 6.8%
2013
Annual Total Cash - Actual (Thousand RMB per annum)
2,400 2,200
Executive
2,000
2014 vs. 2013 : 6%
1,800 1,600 1,400
Management
1,200
2014 vs. 2013: 5%
Professional
1,000 800
2014 vs. 2013 : 8%
Para-Professional 2014 vs. 2013 : 8%
600 400 200 0 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 Position Class MERCER
2013 & 2014 Mercer China TRS – Guangdong All Industries Manufacturing
Year Over Year Comparison 2014 vs. 2013 Guangdong All Industries – Office (Annual Base Salary) Overall RMB
2014
2014 vs. 2013 : 3.8%
2013
Annual Base Salary (Thousand RMB per annum)
2,400 2,200
Executive
2,000
2014 vs. 2013 : 4%
1,800 1,600 1,400
Management
1,200
2014 vs. 2013: 5%
Professional
1,000 800
2014 vs. 2013 : 3%
Para-Professional 2014 vs. 2013 : 3%
600 400 200 0 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 Position Class MERCER
2013 & 2014 Mercer China TRS – Guangdong All Industries Office
Year Over Year Comparison 2014 vs. 2013 Guangdong All Industries – Office (Annual Total Cash - Actual) Overall RMB
2014
2014 vs. 2013 : 3%
2013
Annual Total Cash - Actual (Thousand RMB per annum)
2,400 2,200
Executive
2,000
2014 vs. 2013 : 3%
1,800 1,600 1,400
Management
1,200
2014 vs. 2013: 4%
Professional
1,000 800
2014 vs. 2013 : 3%
Para-Professional 2014 vs. 2013 : 2%
600 400 200 0 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 Position Class MERCER
2013 & 2014 Mercer China TRS – Guangdong All Industries Office
Pay Progression to Higher Level SH All - Office vs. BJ All – Office vs. GZ&SZ All – Office (Annual Base Salary)
1,400,000
1,200,000
1,151,317
2.9
3.1
1,000,000
3.7
1,101,560 1,046,301
800,000
2.6
600,000
400,000
200,000
-
3.2
2.6
Shanghai
MERCER
3.3 394,270
4.1
369,060 152,514 140,373
47,921 41,977 37,594 Para-Professional
2.8
310,813
118,629 Professional Beijing
Management
Executive
Guangzhou&Shenzhen
Source: 2014 Mercer China TRS
Pay Progression to Higher Level SH All - Office vs. BJ All – Office vs. GZ&SZ All – Office(Annual Total Cash)
1,400,000
1,304,488
1,200,000
3.0
3.1
3.3
1,000,000
800,000
2.5
600,000
2.5
2.6 477,654
400,000
200,000
3.2
3.3
453,790
3.2
389,618
188,192 180,400
58,728 54,466 47,229
150,159
-
Para-Professional Shanghai
MERCER
Professional Beijing
Management
Executive
Guangzhou&Shenzhen
Source: 2014 Mercer China TRS
Pay Progression to Higher Level SH All - Manu vs. BJ All – Manu vs. GZ&SZ All – Manu(Annual Base Salary)
1,400,000
1,200,000
2.8
2.5
2.5
1,087,457
1,000,000
857,393
800,000
2.6
600,000
400,000
3.3
3.2
2.8
2.7
683,345
386,559
2.9
347,309 200,000
-
Para-Professional Shanghai
MERCER
150,633
45,441 38,738 34,641
271,003
125,028 100,840 Professional Beijing
Management
Executive
Guangzhou&Shenzhen
Source: 2014 Mercer China TRS
Pay Progression to Higher Level SH All - Manu vs. BJ All – Manu vs. GZ&SZ All – Manu(Annual Total Cash)
1,400,000
1,326,231
1,200,000
2.8
2.7
2.7
1,159,677
1,000,000
917,004
800,000
2.5
600,000
2.6
2.7 470,094
400,000
3.1
3.2
429,234
2.7 189,301
200,000
61,082 52,024 45,670
340,271
166,544 124,849
-
Para-Professional Shanghai
MERCER
Professional Beijing
Management
Executive
Guangzhou&Shenzhen
Source: 2014 Mercer China TRS
2014 Comparison By Locations Guangdong All Industries – Manufacturing (Annual Base Salary) RMB
Guangzhou
Shenzhen
Dongguan
450
Management GZ vs. SZ : 3%
Annual Base Salary (Thousand RMB per annum)
400
GZ vs. DG : 2%
Overall GZ vs. SZ : 3.3%
350
GZ vs. DG : 10%
Professional
300
GZ vs. SZ : 4% GZ vs. DG : 15%
250 200 Staff
150
GZ vs. SZ: 3% GZ vs. DG: 13%
100 50 40
MERCER
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
Source: Mercer 2014 China TRS – Guangdong All Industries Manufacturing
What’s in employee's mind?
MERCER
Hiring needs for fresh graduate? All industry- Guangzhou & Shenzhen 2.00%
Bachelor VS. Master
1.50%
1.00%
学士 Bachelor 硕士 Master
0.50%
0.00%
Fresh needs as percentage of total headcount. MERCER
Source: 2014 Fresh graduate survey
How do we pay our new generation? Starting salary trend –Base salary Bachelor
P75
Master
Average
Median
120000
P25 100000
80000
60000
40000
20000
0
MERCER
Source: 2014 Fresh graduate survey 2014 Guangdong All Industries Office
Career ladder Entry level to executive v13 years experience v15 times of salary
4 years 1 years 2 years
3 years 3 years
45Junior 46Prof.47 Number of incumbent
48 Prof.49& Sr.50Prof. 51
52 53 Supervisor
54
Mgr. 55
56
Mgr. 59 57 Sr. 58
60Executive 61 62
Career ladder
Less
MERCER More
Source: 2014 Mercer China TRS – Guangdong All Industries Office
Celebrate for 10 years graduation.
MERCER
ALL INDUSTRIES
MERCER
24 October 2014
2014 Benchmarking Company-China AstraZeneca Bayer Eli Lilly Pfizer Roche
BP Chevron ExxonMobil Schlumberger Shell
Life Science
Benz BMW General Motors Toyota Volkswagen
Petroleum
Chemical
Emerson GE Multi-industry Honeywell Philips Siemens
Consumer
Internet Alibaba Baidu Tencent MERCER
BASF Bayer Dow Chemical DuPont SABIC
Auto
High Tech Cisco HP IBM Intel Microsoft
Johnson & Johnson Mondelez Nestle P&G Unilever
2014 Comparison Benchmarking VS. 1st Tier Cities Annual Total Cash – Actual Overall RMB
BK vs. 1st Tier Cities : 13%
Benchmarking Companies (BK) 1st Tier Cities
Annual Total Cash (Thousand RMB per annum)
2,400 2,200
Executive
2,000
BK vs. 1st Tier : 7%
1,800 1,600 Management
1,400
BK vs. 1st Tier : 5%
1,200
Professional
1,000 800
BK vs. 1st Tier : 12%
Para-Professional BK vs. 1st Tier : 28%
600 400 200 0 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 Position Class MERCER
Source: Mercer 2014 China TRS report
2014 Comparison Benchmarking VS. Guangdong All Industries Office Annual Total Cash – Actual RMB Annual Total Cash (Thousand RMB per annum)
2,400
Overall BK vs. GD 29%
Benchmarking Companies (BK) Guangdong All Industries Office
2,200 Executive
2,000
BK vs. GD : 24%
1,800 1,600 Management
1,400
BK vs. GD: 21%
1,200
Professional
1,000 800
Para-Professional
BK vs. GD : 24%
BK vs. GD: 48%
600 400 200 0 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 Position Class MERCER
Source: Mercer 2014 China TRS report
Salary Increase Rate by Career Level Overall vs. Benchmarking All Industries – Guangdong Office vs. China Benchmarking 2013 2014 (Actual/ Estimate)
2012 2013 (Actual)
2014 2015 (Forecast)
Shanghai Guangdong All All
Benchmarking Benchmarking
Shanghai Guangdong All All
Benchmarking Benchmarking
Shanghai Guangdong All All
Benchmarking Benchmarking
Executive
8.7% 7.8%
8.3%
8.5% 7.3%
7.9%
8.3% 7.6%
8.0%
Management Sales
9.1% 8.3%
8.5%
9.0% 7.7%
8.1%
8.6% 7.8%
8.3%
Management Non Sales
9.0% 8.2%
8.6%
8.6% 7.9%
8.0%
8.6% 7.9%
8.4%
Professional Sales
8.9% 8.2%
8.6%
8.7% 7.8%
8.1%
8.6% 8.0%
8.3%
Professional Non Sales
9.1% 8.4%
8.8%
8.7% 8.0%
8.2%
8.7% 8.0%
8.6%
ParaProfessional White Collar
9.0% 8.1%
8.7%
9.0% 7.9%
8.0%
8.6% 7.9%
8.4%
Overall
8.8% 7.8%
8.3%
8.1% 7.4%
7.9%
8.3% 7.7%
8.0%
MERCER
Source: 2014 Mercer China TRS
Benchmarking companies turnover rate are lower than all industry Staff Turnover and Staff Retrenched 25.0%
5.0%
20.0%
4.0%
15.0%
10.0%
5.0%
1.0%
0.0%
0.0% Staff Turnover
MERCER
Guangdong Office Guangdong MFG BK
3.0% Beijing Office Beijing MFG BK 2.0%
Staff Retrenched
Source: 2014 Mercer China TRS
Market prevalence between benchmarking companies and all industries
79%
9%
High-end Medical
Flexible Benefits
24%
82%
80%
18%
Retirement
29%
100%
38%
Housing
42%
7%
Car 60%
40%
20%
0%
63%
0%
Benchmarking Companies MERCER
81%
Life Insurance
97%
20%
40%
60%
80%
All Industries 24 October 2014
Source: Mercer China Benefit Survey – 1st tier cities
100%
It is all about benchmarking
MERCER
What’s in HR’s mind?
Local Company VS MNCs China Executive VS Global Executive Local Employees VS Local Plus
MERCER
High tech company: Local companies vs MNC Annual Base Salary
Overall Local vs. MNC: -42%
RMB Annual Total Cash (Thousand RMB per annum)
1,200
Local
MNC Executive Local vs. MNC: -42%
1,000
800
Management Local vs. MNC: -36%
600
Professional Para-Professional
400
Local vs. MNC: -27%
Local vs. MNC: -15%
200
0 40
41 42 43
44 45 46
47 48 49
50 51 52 53
54 55 56
57 58 59
Position Class MERCER
Source: Mercer 2014 High tech report
60 61
High tech company: Local companies vs MNC Annual Total Cash
Overall Local vs. MNC: -34%
RMB Annual Total Cash (Thousand RMB per annum)
1,200
Local
Executive
MNC
Local vs. MNC: -37%
1,000
800
Management Local vs. MNC: -32%
600
Professional Local vs. MNC: -23%
Para-Professional
400
Local vs. MNC: -9%
200
0 40
41 42 43
44 45 46
47 48 49
50 51 52 53
54 55 56
57 58 59
Position Class MERCER
Source: Mercer 2014 High tech report
60 61
Top Executive Compensation Comparison Head of Human Resource- Annual Total Cash
P75 Average
2,500,000
Gross
Median
Net
P25
2,000,000
1,500,000
1,000,000
500,000
0
MERCER
CN
HK
JP
SG
US
Source:2013 Mercer Executive Rem survey
Top Executive Compensation Comparison Head of Sales - Annual Total Cash
P75 Average
Gross
2,500,000
Median
Net
P25
2,000,000
1,500,000
1,000,000
500,000
0
CN MERCER
HK
JP
SG
US
Source:2013 Mercer Executive Rem survey
How do we pay the local plus? - Office Local plus vs. local comparison—Annual Base Salary 64 63
Executive
62
P25
61
Med P75 Local Plus Local
60 59 58 57
Mgmt
56 55
Career Stream
Local Plus vs. Local
Executive
+30%
Management
+43%
Professional
+69%
54 53
Prof
52 51 50 49 0
MERCER
300,000
600,000
900,000
1,200,000
1,500,000
1,800,000
2,100,000
2,400,000
2,700,000
Source: 2014 Mercer China TRS – Guangdong All Industries Office
RMB 3,000,000
How do we pay the local plus? - Office Local plus vs. local comparison—Annual Total Cash - Actual 64
P25
63
Med P75 Local Plus Local
Executive
62 61 60 59 58 57
Mgmt
56 55
Career Stream
Local Plus vs. Local
Executive
+37%
Management
+42%
Professional
+56%
54 53
Prof
52 51 50 49 0
MERCER
300,000
600,000
900,000
1,200,000
1,500,000
1,800,000
2,100,000
2,400,000
2,700,000
Source: 2014 Mercer China TRS – Guangdong All Industries Office
RMB 3,000,000
Locally hired foreigner benefit 0%
MOST PREVELENCE BENEFIT : §
Insurance and medical are still most prevalence benefit for locally HOUSING
hired foreigners, followed by MEDICAL INSURANCE
housing and relocations.
TAX SUPPORT TRANSPORTATION
TOP ISSUE: §
Managing costs is always the
20%
RETIREMENT 80%
SPOUSE SUPPORT
headache. §
Localization issue has been recently raised by many companies. Most of them still doing localization case by case without formal policies.
60%
MERCER
40%
Main Challenges Company Faced With
Rising Total Rewards Cost
MERCER
Employee Attraction, Retention and Engagement
Benefit Award of Year 2014
Car (Top Mgt)
Healthcare
88%
100%
Life Science
Hi-Tech
Flex
Retirement
50%
MERCER
66%
Automobile
Housing
Chemical
LTI
19%
27%
Chemical
Life Science source: Mercer China Benefit Survey – 1st tier cities
Market Prevalence of Supplementary Benefit Items All Industries Annual leave Mobile subsidies Supplementary medical Personal accident insurance Life insurance Fully-paid sick leave OT transportation subsidy Long service award Overtime meal subsidy Education assistance Meal subsidies Company car Transportation subsidies Flexible working time Supplementary housing Car allowance Retention bonus Supplementary retirement Flexible benefits Loan
Must Have Benefits Common Benefits
81% 81% 77% 70% 68% 61% 56%
50% 47% 44% 38% 33% 30%
Differentiated Benefits
18% 7% 5% 0%
MERCER
96% 96% 94% 89%
20%
40%
60%
80%
100%
source: Mercer China Benefit Survey – All Industries (1st tier cities)
Innovative Benefits
Compensation
Benefits
Global Mobility Workforce
INNOVATIVE BENEFITS Lower cost Higher employee recognition Enhance employer brand Differentiate among competitors ……
MERCER
24 October 2014
Innovative Benefits in Internet Industry
MERCER
24 October 2014
Innovative Benefits in Internet Industry Extended to family members
Dependents
MERCER
Innovative Benefits in Other Industries • Latest New Car Test Drive • Premium Car for Marriage Use • Premium Car Monthly Rental • •
•
Friday Early Home Bring Your Own Devices
Working Time
MERCER
Holiday with Physical Check-up •
Auto
Relaxation
Premium Afternoon Tea
MERCER