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 Four 2005
SHANGHAI – 13 OCTOBER 2005 – Continued hiring increases means good news for China's
workforce, while increased optimism continues to fuel increasing economic growth. Planned headcount
increases are at 68%, a marked increase from 63% in the last quarter. This is the highest figure for
employment expectations since Q4 1998 and is also the highest for all the Asian markets surveyed. As
a consequence, 88% of companies have experienced staff turnover in the last year and more than half
expect to have to increase salaries by 5% to 15%, the highest in all the markets surveyed. Companies
are finding that sourcing the right candidates is seen as their main HR challenge and career progression
and poaching of staff are cited as significant causes of turnover.
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 2,300 key employment decision makers from
multinational organisations of all sizes in all major industry sectors, with 724 of these companies based
in China.
The latest employment trends
Permanent employment expectations continue a positive trend from the last quarter, with 68% of
companies planning to increase headcount, from an already high figure of 63% in Q3, pointing to
continued strong growth in the employment market. A further 29% of professionals surveyed anticipate
that employment will remain steady, while only 3% forecast a decline in headcount.
Gary Lazzarotto, CEO, Asia, Hudson comments, “For job seekers this is the best time to do so since
1998. The number of companies planning to increase headcount is at an all time high with more and
more MNCs moving to China. Employers face challenging times, as they face tough competition to
recruit the best staff, they then need to pay more to attract these staff and at the same time they need to
prevent their existing staff from being poached.”
Anticipated growth in hiring is strong in the Construction/Property sector, which has the highest increase
in permanent employment expectations, with 85% planning to expand recruitment.
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There has also been a substantial rise in expectations in the Manufacturing and IT&T sector with 73%
and 70% respectively forecasting increased headcount.
In the Banking sector, 64% 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, Q4 2005
Permanent employment expectations over time
The forecast for Q4 continues a positive upward trend over the longer term, expectations for permanent
employment are at their highest level since 1998.
The increase 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 68%.
Source: The Hudson Report – China, Q4 2005
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Salaries are increasing
Companies anticipate that salaries will rise over the next twelve months. China has the highest
anticipated salary increases with 83% of executives surveyed anticipating an increase. Over half of the
companies (52%) expect that they will have to pay increases of between 5% and 15%.
Source: The Hudson Report – China, Q4 2005
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 27% of all
anticipated new jobs.
High staff turnover
Companies are experiencing high levels of staff turnover. Across all sectors, 88% of companies report
that they have experienced staff turnover in the past year.
The Manufacturing and Consumer sectors have the highest levels of turnover – 94% and 93%
respectively. The Media/PR/Advertising sector also reports higher than average turnover levels at 90%.
Staff turnover rates
Sixty-seven percent across all sectors lost more than 5% of their staff over the last year and 32% lost
more than 10%. The Healthcare sector and Media/PR/Advertising sectors have the high turnover rates.
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Room 1602, Central Plaza
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Source: The Hudson Report – China, Q4 2005
Concerns about career progression is the main reason behind staff turnover
Across all sectors, concerns about limited prospects for career progression are seen as the single most
important factor, accounting for 22% of the total. Poaching is also a key factor. Overall, 20% of
executives say it is the biggest cause of high turnover rates.
Source: The Hudson Report – China, Q4 2005
Staff turnover expected to fall
Companies expect that staff turnover is likely to fall in the next 12 months. Twenty-seven percent
forecast a reduction, while 22% think it will increase.
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Room 1602, Central Plaza
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Finding the right staff is the biggest HR challenge
Companies see staff recruitment and retention as the greatest HR challenge. Hiring staff is particularly
difficult: 37% of companies across all sectors say that it is the biggest issue whilst almost a third sees
retaining staff as their main concern.
Source: The Hudson Report – China, Q4 2005
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.
5
www.hudson.com
Room 1602, Central Plaza
No. 227, Huangpi Bei Road
Shanghai, China, 200003
t 8621 6375 8922
f 8621 6375 8211