Chinese mainland talent may see faster salary increase this year

Salaries for management talent on China’s mainland are expected to rise faster this year and continue to lead salary growth among major Asian economies driven by business expansion and talent shortage, recruitment agency Hays said today.

Average salaries will likely rise between 6 to 10 percent this year, as 51 percent Chinese mainland employers said they would offer more than 6 percent salary increase this year, higher than the 45 percent in 2016, according to the Hays survey covering more than 3,000 employers in the mainland, Hong Kong, Japan, Malaysia and Singapore.

The mainland result was 24 percentage points higher than the Asian level, leading salary growth for the fifth consecutive years, the report said.

The company targets talent mainly in middle, senior, and executive management levels.

The report found 63 percent Chinese mainland respondents said they would increase business activity this year, and 49 percent said they are optimistic about the economic growth.

“Our survey findings shows the vast majority of employers in China’s mainland are optimistic. We believe this positive sentiment will eventually lead to more business increasing their headcount to take advantage of promising economic and business landscape,” said Simon Lance, managing director for Hays China. “Employers recognize that salary increases are one way to keep their best people on board.”

Lance added that salary increases in Shanghai are likely to be faster than the national level as local talent demand tend to be of higher level, and local employees expect faster salary increases than the national level.

The most sought-after skills on the labor market have changed from general technical skills to soft skills including leadership, management, and language, according to Hays.