negotiating employment contracts in the year of the dragon
Post on 13-Sep-2014
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SHOCK! An average worker in China costs more than the average worker in any other emerging Asian economy, excluding Malaysia and Thailand, when considering in terms of combined salary and welfare payments. What’s more, China leads the Asia region for companies intending to increase headcount. These two facts will make operating in China more expensive than ever before in 2012!TRANSCRIPT
NEGOTIATING EMPLOYMENT CONTRACTSMorry Morgan
CONTENTS
The Talent LandscapeThe Talent Acquisition Equation
The Candidates’ Needs
Your Company’s Leverage
LANDSCAPEThe Talent
“China costs more than the average worker in any other emerging Asian economy, excluding Malaysia and Thailand, when considering in terms of combined salary and welfare payment.” - Chris Devonshire-Ellis , China Briefing
China has the lowest engagement (17%) and highest disengagement (29%) of all regions surveyed globally.
- BlessingWhite 2010/2011 Global Employee Engagement Research
“
”
Mexico ranked highest (75.8%) and China ranked equal third last (63%) alongside the UK.
- Hay Group employee engagement index
“
”
Top 10 issues
1. Soaring commodity prices (59.5%)2. Health care availability and prices
(42.9%)3. Income and wealth gap (31.6%)4. Government corruption (29.3%)5. Unemployment (24.2%)6. House prices (24%)7. Retirement pension for the elderly
(16.6%)8. Food safety (15.9%)9. Education Costs (10.9%)10.Environmental Pollution (10.3%)
in China in 2011
Source: Chinese Academy of Social Sciences
EQUATIONThe Talent Acquisition
NEEDS
FEATURES
BENEFITS
+ =
GOODWILLREPUTATION
TRUST
+ =
BENEFIT
TRUSTAGREEMENT
+ =
Candidate
Your Company
You and your line manage
Employer Brand
NEEDSThe Candidates’
“80% of employers admitted they are worried about losing their top performers.”
- Hudson, Salary & Employment Insights 2012
MRINew Challenges
Team CamaraderieWork/Life Balance
Aon Hewitt
Learning & Development
Company ReputationCareer Opportunities
Source: Network HR
vs.
40% TaxIn China
8 – 15% Tax
In Hong Kong & Singapore
EMPLOYERBRAND
Building your
Amway (China) Co. LtdAstraZeneca (China)Autodesk (China)Bacardi Wines & Spirits Ltd.BASFBayer Group in Greater ChinaBekaert Management (Shanghai) Co. LtdChina Telecom ShanghaiDanisco (China) Co. LtdDeloitte Touche Tohmatsu CPA LtdDHL-Sinotrans International Air Courier LtdDow Chemical (China) Company LimitedDow Corning ChinaElement Fresh Food & Beverage Management Co. Ltd
Evonik Degussa (China) Co. LtdFAW-VolkswagenGoodyear Tire Management Company (Shanghai)HSBC Life Insurance Company LtdLANXESS Chemical (China) Company LtdManulife TEDA Fund Management Co. LtdRoche Diagnostics (Shanghai) LimitedSAS Institute China Co. LtdSaudi Basic Industries Corporation (SABIC)Shanghai General Motors (SGM)Shanghai Genius Advanced Material Group Co. LtdShanghai Highly Group Co. LtdShanghai Tospur Real Estate Consulting Co. LtdShanghai Volkswagen Automotive Co. LtdTenneco ChinaWalmart (China) Investment Co. Ltd
STRONG EMPLOYER BRANDSSource: CRF
China’s Most Desirable Employer
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LEVERAGEYour Company’s
LEVERAGE
NEEDINESS
BATNA
Emotion & Timing
Best Alternative to a Negotiated Agreement
NEEDINESS
“The employment market is broadly positive for employees, with salaries continuing to rise as organisations compete for the best performers.”
- Hudson, Salary & Employment Insights 2012
Industries under pressure
Ac-coun-tancy
Fashion FMCG Leisure Luxury Goods
Medical70
75
80
85
90
95
ChinaAP Average
% E
xpec
ted
man
agem
ent h
ires
Antal International Q1 2012 Salary Snapshot
Topics most commented on
“The Chinese robot market is currently growing at an annual rate of about 30%. China will take the lead among industrialized countries with projected sales of 30.000 units in 2014.”
- Wolfgang Heller, Infonaut AB