Contact: April Li
Hudson
(8621) 6375 8922
april.li@hudson.com
For immediate release
Strong Hiring Trends Expected to Continue With The Highest Figure In Seven Years
Comprehensive Hudson Report Released for Quarter One 2006
SHANGHAI – 12 JANUARY 2006 – Continued hiring increases means good news for China's
workforce, while increased optimism continues to fuel increasing economic growth. Planned headcount
increases are at 67%, a slight decrease from 68% in the last quarter. This is the second highest figure
for employment expectations since Q4 1998 and is also the highest for all the Asian markets surveyed.
Hudson, one of the world’s leading professional staffing, outsourcing and human capital solution
providers and a division of Hudson Highland Group, Inc. (NASDAQ: HHGP), today released findings of
its comprehensive quarterly Hudson Report for Asia. With a reputation as a key socio-economic
indicator in the current marketplace since its Asia launch in December 1998, the survey has been built
on the premise that employers’ expectations of an increase or decrease in staffing levels represent a
significant indication of their optimism in the growth of their organisation and their industry as a whole.
The Hudson Report represents the expectations of over 2,400 key employment decision makers from
multinational organisations of all sizes in all major industry sectors, with 789 of these companies based
in China.
The latest employment trends
Permanent employment expectations continue a positive trend from the last quarter, with 67% of
companies planning to increase headcount, pointing to continued strong growth in the employment
market. A further 31% of professionals surveyed anticipate that employment will remain steady, while
only 2% forecast a decline in headcount.
Gary Lazzarotto, CEO, Hudson Asia, comments, “Companies in all sectors are very optimistic about the
future and employment expectations remain at a high level. In an increasingly candidate-short market
employers have to pay more to recruit the talent they need. Both salaries and bonuses are rising
sharply.”
Anticipated growth in hiring continues to be strong in the Construction/Property sector, which has the
highest increase in permanent employment expectations, with 79% planning to expand recruitment.
There has also been a substantial rise in expectations in the Healthcare and Logistics & Transportation
sector with 78% and 73% respectively forecasting increased headcount.
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In the Banking sector, 73% of respondents plan to hire more staff. There is still a need for specialists in
areas required by WTO rules.
Source: The Hudson Report – China, Q1 2006
Permanent employment expectations over time
The forecast for Q1 continues a positive upward trend over the longer term; expectations for permanent
employment are at their highest level since 1998, with the exception of Q4 2005 when 68% said they
would hire more staff.
The increased optimism about the job market has been particularly noticeable over the last four years.
Between Q4 2001 and Q4 this year, the number of employers forecasting a headcount increase has
almost tripled, from 22% to 67%.
Source: The Hudson Report – China, Q1 2006
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Shanghai, China, 200003
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Anticipated Company Performance
Companies across all sectors are very optimistic about the next six months, with 82% forecasting that
performance will be excellent or good. The Banking, Construction and Healthcare sectors express the
highest level of optimism about the next six months, with 88% of respondents in each sector forecasting
excellent or good performance.
Source: The Hudson Report – China, Q1 2006
The hottest jobs in China
The buoyant state of the employment market is shown by the fact that increased hiring is forecast for all
job categories surveyed. The area where demand is highest is Sales, which accounts for 28% of all
anticipated new jobs.
Pay increases to attract managerial staff
The majority of companies are having to pay substantial increases to attract the managerial staff they
need. Across all sectors 48% of respondents expect to have to increase salaries for new hires by more
than 10%, compared with 40% in Q1 2005. The majority of companies (28%) expect to pay 11-20% to
attract new hires. These higher salary levels reflect the candidate-short nature of the job market.
Source: The Hudson Report – China, Q1 2006
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www.hudson.com
Room 1602, Central Plaza
No. 227, Huangpi Bei Road
Shanghai, China, 200003
t 8621 6375 8922
f 8621 6375 8211
Year-end bonuses are up
In an increasingly tight employment market, companies are trying to retain staff by making significantly
higher bonus payments. Across all sectors 41% of respondents are planning to pay bonuses of more
than 10%, compared with 29% the previous year.
The industries that will receive the largest bonuses are Healthcare, Manufacturing and the Consumer
sectors.
More than half of companies without crisis effective management plans
Over one-third of companies – 35% – do not have such a plan in place while a further 21% of
respondents state that they are not aware of a plan. This is the highest proportion of companies that
are unprepared for a disaster out of the markets surveyed in Asia.
Banking and IT&T are the industries most likely to have crisis management plans in place and Logistics
& Transportation and Media/PR/Advertising are the least likely to have plans in place.
Source: The Hudson Report – China, Q1 2006
Internal Communications and IT are top priorities
Across all the sectors surveyed, internal communications are seen as the highest priority amongst the
specific crisis management plans in place. Sixty percent of companies say they have developed a plan.
IT systems back up is also seen as a high priority, with 50% of respondents saying their company has
this in place.
The Banking sector reports a consistently high level of preparation in all the areas covered. Banks are
particularly well prepared in terms of systems backup, with 79% reporting IT systems backup measures
and 73% saying that they have backed up HR records.
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www.hudson.com
Room 1602, Central Plaza
No. 227, Huangpi Bei Road
Shanghai, China, 200003
t 8621 6375 8922
f 8621 6375 8211
Source: The Hudson Report – China, Q1 2006
Hudson
Hudson delivers specialised professional staffing, outsourcing, and human capital solutions worldwide.
From single placements to total solutions, the firm helps clients achieve greater organisational
performance by attracting, selecting, developing and engaging the best and brightest people for their
businesses.
Hudson is a division of Hudson Highland Group, Inc. one of the world’s leading professional staffing,
retained executive search and human capital solution providers. The company employs more than
3,800 professionals serving clients and candidates in more than 20 countries through its Hudson and
Highland Partners businesses. More information is available at www.hudson.com.
Special Note: Safe Harbour Statement Under the Private Securities Litigation Reform Act of 1995: Except for
historical information contained herein, the statements made in this release constitute forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of
1934. Such forward-looking statements involve certain risks and uncertainties, including statements regarding each
company's strategic direction, prospects and future results. Certain factors, including factors outside either
company’s control, may cause actual results to differ materially from those contained in the forward- looking
statements, including economic and other conditions in the markets in which the companies operate, risks
associated with acquisitions, competition, seasonality and the other risks discussed in our filings made with the
Securities and Exchange Commission, which discussions are incorporated in this release by reference.
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www.hudson.com
Room 1602, Central Plaza
No. 227, Huangpi Bei Road
Shanghai, China, 200003
t 8621 6375 8922
f 8621 6375 8211