Hiring tipped to increase in 2019 despite lower economic confidence: report

Most Chinese companies expect to increase their permanent headcount in 2019 despite a lack of optimism about the country’s economic prospects, a report from global recruitment specialist Hays said on Tuesday.

More than half those surveyed said they expected to increase their headcount, but the report did not say by how much.

Around 44 percent of Chinese organizations surveyed plan to raise salaries between 3 and 6 percent in 2019 and about a third said they would increase salaries by more than 6 percent, according to the 2019 Hays Asia Salary Guide, which studied salary and recruitment trends across Asian markets, including China, Hong Kong, Singapore, Malaysia and Japan.

Although the percentage in China was down from previous years, it is still almost double the average in other Asian areas. A majority of companies in Japan (70 percent) and Singapore (59 percent) as well as a considerable proportion of businesses in Hong Kong (44 percent) and Malaysia (35 percent) indicated they would offer salary increases of less than 3 percent.

The guide said business activity in Asia was up year on year in 2018 and predicted that trend will continue in 2019.

“(This year) will be another active year for HR and recruitment professionals,” said Simon Lance, Managing Director of Hays’ China operations.

The survey also found a noticeable disconnect in the salary expectations between employees and employers in China as well as other Asian countries and regions.

In China, as many as 44 percent of employees are expecting increases above 10 percent, but only 8 percent of employers plan to offer such a salary raise, Lance said.

Looking ahead at the skills demand trends in China, Hays expected that there will be large salary increments to attract top talent with skills in short supply, especially in sectors like technology innovation, industry automation and digitalization.

Candidates with experience and skills in IT, digital technology, manufacturing, life sciences, financial technology and sales are in high demand and will have greater bargaining power.

Amid robust talent demand in various industries, Hays found that skills shortages remain a concern for companies in 2019.

Almost all (98 percent) Chinese firms surveyed believe skills shortages will harm the effective operations of their businesses or departments, and 68 percent said skills shortages will have a negative impact on productivity. Only 49 percent of businesses think they have the talent needed to achieve current business objectives.

In 2018, China’s labor market saw annual salary growth moderate, with 40 percent of enterprises increasing salary by over 6 percent and 36 percent offering salary rises between 3 to 6 percent.