Tag Archives: Asia Employment

In recent years, China has been reshaping its industrial landscape and tier-two and tier-three cities are now considered as the new developing markets in China. Both State-owned enterprises and multinational companies are taking the opportunity to shift their businesses to these new markets that promise lower start-up and development costs (labor, capital, materials costs). Corporations can also take advantage of the working process of tier-two and three city officials that they seem to be easier and more supportive than tier-one cities in granting land approvals. However, tier-one cities remain the preference for many skilled workers and experts due to the better standard of living and working opportunities. Therefore, how to attract more talent from tier-one cities to work in Tier-two/three cities is a big challenge for most companies’ HR departments.

According to the China Talent-flow Survey Report published by RMG Selection, almost 70% of those surveyed have considered relocating to other cities if the job opportunity is good enough and 20% of them are willing to go to any cities including tier-two and three cities. This is obviously good news for companies in tier-two/three cities, but at the same time, it means that employers should look at employees’ concerns and expectations in relocating to different cities. Moving to a different city to work is never an easy process for anybody, especially for people from tier-one cities where the living standards are a lot higher. Considering the challenges from the perspective of employees (candidates) will help HR departments have a better understanding in order to solve problems and be able to attract talented candidates to the company. Below are some key issues and suggested solutions:

1. Future development: The very first concern that most candidates think about is future development in their career path. Most of them are working in their companies’ headquarters in Tier-one cities where they have already built up strong career networks which can be a great advantage for promotions or their future employment opportunities. While moving to a different city may mean they have to start everything over again, having a chance to foster a strong sense of the new community is not as easy.

Solution: HR departments should consider giving candidates a career plan that promises them potential opportunities to support their future development. The HR department should be able to provide candidates with an action plan with detailed steps to help employees acquire knowledge about their own ability, their career paths and opportunities. By giving them a broader view of their career goals, the company could possibly help candidates realise that relocating to a different city might be a boost for their career in the long-term. The company can also offer candidates the chance to join in social business events in their headquarter city, as well as the new city, so that employees can keep in touch with their current connections and also build up new networks in the new location. Another point that HR should mention to candidates in the first place is working in Tier-two and three cities could benefit employees in terms of career development, as an office in Dalian, Tianjin or Chengdu might be the heart of the corporation in the near future.

2. Family Concerns: This is one of the biggest issues for most employees when it comes to relocating. It is believed that the living standard and educational standards in Tier-one cities are better than those in Tier-two and three cities. The majority of employees want to let their children (family) remain in Tier-one cities in order to receive a better education. Moving to a different place to work also means being away from their wider family. It is especially hard for younger families when they already have kids (it might be easier for people who are still single). Moving away from home can be so tough for most people that they commonly feel lonely, isolated and overwhelmed. This would strongly influence their working spirit as well as their performance and productivity at work.

Solution: It is very important for HR departments to understand that employees in any organisation need motivation to keep them performing quality work. In this case, the company should not only consider general motivational strategies, but also the specific motivational appeals that focus on employees’ feelings toward the potential family concerns. It is recommended that HR department should offer employees a certain amount of transportation and cell phone allowance so that they can feel comfortable to visit and contact their family frequently. I would also recommend that the company gives employees who work in different cities an extra vacation or a trip for their family to visit them once a year. Family is a crucial factor as it is one of the basic desires that guides human behaviour and motivates our actions in general and the working efficiency in particular. Therefore, the only way to attract employees to a job that requires moving away is to facilitate and make it easier for them to communicate and feel closer to their family. This is also an easy way to be more competitive than other companies.

3. Salary: Working in tier-one cities often guarantees a higher salary than that in tier-two and three cities. Normally, for the same level in similar companies, the salary of employees in the tier-two cities takes up 70% of those who work in Tier one cites. However, that also means an employee from tier-one cities when relocate to tier-two, three cities might get a higher position. This is because different cities have different salary ranges, thus employees might hesitate in making the decision to relocate.

Solution: Most of the time, salary negotiation is a crucial process between HR department and candidates. Although it is lower in tier-two cities for the same level, HR could find excellent candidates and give them opportunities to be hired at higher levels. On one hand, the higher title is attractive; on the other, the salary budget is wider. The challenge for HR here is to find talented people with great potential. Secondly, everybody knows that the living costs in tier-two cities are lower than Beijing, Shanghai and Guangzhou. However, no one knows the exact details of how different. It will be very helpful if the HR department prepares a detailed description of how much money people can save from the lower cost of housing, telephone, traffic, meals and even commuting time. Sometimes, even if the salary is lower than before, the employee can still save more money in tier-two cities. Thirdly, it is more than just the salary it is the whole compensation package that a company can offer for employees moving from tier-one cities to work in tier-two and three cities. As mentioned above in the family concerns, other perks vary widely upon the significance of the position. The HR department can always prepare a comparison chart of pros and cons between the two regions in order to show employees how beneficial it is to work in tier-two and three cities.

The frenzy of news coverage over 6.99 million Chinese college graduates with merely 33.6% contract signing rate up to 1 May, has greatly shocked lots of people. Most blame the low figurefor the economic slowdown, as well as the increasing number of graduates. However, I think these are just superficial reasons under the general macroeconomic situation. What needs to be found out should originate from the root-cause of the dilemma, either from college graduates or recruiting companies.

Like a river fish imagining its fantastic life in the huge ocean, a fresh college graduate has so many expectations or even fantasies for his or her future career in society. When I read a piece of news about graduates looking for jobs in SOEs and public institutions, I was a bit confused. Lots of college graduates expect to, and actually only look for jobs in SOEs and government institutions for the benefits of the so called “iron rice bowl”. In this case, instead of focusing on improving one’s working ability, Chinese college students seem to find a stable job for a lifetime. Another interesting contradiction I noticed is about the salary expectation. According to an online research project, 33% of undergraduates’ salary expectation is between CNY 3,000 and CNY 3,999. Additionally, 20% of students expect CNY 4,000 to CNY 4,999. However, the average monthly salary foreign companies can afford this year is 3,412 Yuan for undergraduates, which is actually the highest compared with other types. As for public units, 2,858 Yuan is what they can pay for an undergraduate on average, which is the lowest among all types. When the dream that a college student dreams is disillusioned, what is left behind are the senses of loss and disappointment. Then why not try to lower one’s expectation in the beginning but end up with a surprise?

Remember that it always takes two to tango! College graduates bear their responsibility, while recruiting companies also have a part to play in this dilemma. I want to mention two points here: Firstly, does educational background matter? Elite universities or 211 and 985 project universities are specifically noted on the job description of quite a few companies. Though these are prestigious universities in China, they do not necessarily have all the elite and intelligent students. There are so many excellent and creative students out there. Therefore, it is time for recruiting units to re-think about the necessity of a ‘famous’ educational background. Secondly, should recruiting companies give opportunities to those who have small defects? I am sure that lots of recruiting companies have met students with hard working attitudes but with less overall intelligence. Whether or not to employ this kind of graduate becomes a real problem. To be honest, based on personal experiences, I prefer hard working ones, and I increasingly cringe when I’m told he or she is ‘very smart’. In the Chinese education system, there is indeed less emphasis on practice compared to the western education system. Therefore, recruiting companies should not expect too much from the fresh graduates in the beginning, but I know a gem with a flaw can be polished as a perfect one with enough time.

Before long, I had an interview with a fresh college graduate who wanted to get a full time offer from my company. I asked about his salary expectation. This boy came up with 5,000 Yuan. He tried to explain the reason with the cost of living in this city like housing and food. To some degree, I understand his argument. However, I barely agreed with it. When hiring a person, a recruitment company pays for what this person can do and bring for the company. I don’t really know companies that set salaries based on the costs of living in a city. When a college graduate looks for jobs, he or she needs to come with the right motivation and attitude, for that is the real value that recruiting companies are expecting.

Though people think 2013 is a tough year for college graduates, personally I think this is still a tough time for companies to recruit too. To get rid of the dilemma, reasonable assessment and a rethinking of the expectations of college students are of course necessary. But at the same time, recruiting companies also needs to make some adjustments. With my recruiting and consulting experience over the past years, I would like to give some tips about the hiring process for the recruiting companies:

Firstly, specific and clear job descriptions should be noted. The necessary requirements, such as CET level 6 and proficiency in Photoshop, should be clearly pointed out in the job description if needed.

Additionally, the job categories should be clearly defined as well. Most college undergraduates are not purely looking for internships. What they really expect is the full time offer after the internship. Therefore, the recruiting companies should tell students who are looking for full time job if they cannot offer the position. In addition, lots of recruiting companies will hold campus recruiting fairs and career talks. It is of great importance for the company to find the right recruiting staff in the jobs fair or career talk. A responsible human resource staff member should get to talk to students who are interested in the job instead of only collecting the resumes. As for the career talk, I would that recommend a working staff member of the company, especially one from that home university, should be invited together with the human resource manager. When students see someone from their university, they feel much freer to ask questions in the interaction session.  Recruitment companies have to pay attention to the online application process. Clear steps of the interviews should be informed to every applicant so that students can arrange for the interviews. Moreover, timely replies also play a vital role in this process. As the famous saying goes, ‘time kills all deals’. I think the more time a company takes, the less patience the applicant are left with. Replying to applicants on a regular basis, preferably less than a week later, should be helpful to save the right applicant from walking away. Last but not the least; I would suggest recruiting companies should arrange an on-job mentor for the fresh college graduates in the company. It is not easy for the company to find the right person. In this regard, taking care of the new comer plays an active role in making the students stable at work. New college graduates lack social experience. They really need colleagues who not only guide them at work but help them with socialising in the company as well. Adapting to the working environment quickly can effectively save college graduates from the loneliness.

As I also read news about six government policies for college graduates, I think breaking through the dilemma also requires effort from the government. If recruiting companies can pay more attention to the details in the recruiting process, they will probably get the right people they need. As for college students, expectation is in proportion to hard work. Getting down to earth is the best choice for now!