Professionals in China Can Expect Modest Salary Increase in 2017

June 6, 20177:57 am2085 views

Although China’s economic growth in 2017 is currently slowing down, high levels of hiring activity that transcend the current status quo of the country are indisputably going to continue throughout the year. Also, many companies remain optimistic when it comes to hiring activities but, the bitter truth remains that the top talents – professionals – are still in short supply.

This finding was revealed by ZW HR Consulting, on the launch of China Salary Guide for 2017. Being one of the most prestigious recruitment firms, it aims to provide employers and jobseekers alike with a comparative overview of salaries in Tier 1 and Tier 2 cities.

Average salary increase rate in China for 2017 is expected to be around 8 percent, excluding promotion. However, this varies from industry to industry and especially those with in-demand specific skill sets and experience will enjoy upto 25 percent increase in salary. Talent retention, employee engagement and training will be the key focus areas for 2017.

Candidates with regional language prowess or exposure to Chinese market with bilingual proficiencies both in English and Chinese (Mandarin) are in high demand. They can expect salary hike from 15 to 25 percent. With maturing job market, hiring graduates with key majors from top universities is on the rise. Employees are also looking at promotion and career development opportunities, instead of mere salary for higher job satisfaction.

Frank Yu, Chairman of ZW HR Consulting, states that, “There is a positive outlook on hiring by Chinese companies in 2017. We expect many companies will offer wage increases to retain and attract employees as the employee turnover rate remains high.”

Some of the key highlights from the findings are:

  • Candidates willing to switch positions will enjoy average salary increase of 8 percent to 15 percent.
  • Demand for accounting and finance recruitment professionals remains steadily high across all sectors thus, hiring for accounting, finance and banking professionals will remain comparatively stable.
  • IT, Sales and Marketing professionals can expect 10 to 12 percent increase in their salaries.
  • Those in the middle to senior level positions in the aviation sector won’t experience any major changes in their salary structure.

See: Slow Down in Salary Growth of White-Collar Workers in China in Q1 2017

  • The IT sector will continue to outperform as demand will be particularly high for specialists, mobile engineers and software developers.
  • Experienced engineers in R&D positions and bilinguals will experience much more advantages. Candidates proficient in English communications with business and project management skills, relevant work experience and education overseas can expect upto 20 to 30 percent increase in salary.

While at the same time, company development and the requirement for the quality candidates may vary from city to city.

In Tier-1 City: Employers emphasise on the stable development of the company and ongoing projects.

In Tier-2 and Tier-3 Cities: Employers will provide senior talent with promotion and career development opportunities.

Joyce Jing, General Manager for ZW HR Consulting said, “I often hear candidates saying that, salary is no longer the most important factor that would convince them to join any organisation. Employees in China are looking forward to new and innovative benefits, career development, training instead of merely salary hike. Candidates with international exposure, good language skills, market knowledge and who are well-disciplined will continue to receive multiple offers, as well as counter offers from their current employer.”

China will also focus on the improvement of economic benefits. On this basis, ZW HR anticipates that the employment market in 2017 will continue to maintain steady development.

Also read: Nearly 80% of China’s White-Collar Workers Receive No Promotion in 2016

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