2018 Morgan Philips Talent Report
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1 2018 Morgan Philips Talent Report The Executive Greater China Talent Market in 2018 We are thankful for the many responses over 5,000 - to the 8th edition of the Morgan Philips Greater China Survey conducted in December In this paper, readers will learn about the intentions and perspectives that Greater China executives have in relation to their jobs for 2018.
2 What happened in 2017 As forecasted in last year s report, the executive job market in 2017 was dynamic with, on average, 20% of Greater China respondents declaring a job change. Movements were highest in Taiwan (24%) as well as in Beijing and South China (23%). Technical/Engineering, R&D, Quality, and Plant Management executives were the most stable; E-commerce, Retail and Marketing talents the least stable. Movements were most pronounced among respondents below the age of 35, with 37% in Hong Kong, 31% in Taiwan and 28% in Mainland China declaring a company change in About half of movers obtained base salary increases higher than 10%, mostly between 11% and 20%, whereas 44% in Mainland China, 48% in Hong Kong and 55% in Taiwan moved for either less or the same salary, or a smaller increase up to 10%. We also noted that salary increases were far more moderate for the older age tranche (above 45). Job Change Declared in % Taiwan 21% Hong Kong 20% Mainland China As in previous years, mobility within Mainland China remained high with 20% declaring a cross-provincial move, while 3.60% (Mainland China), 6.42% (Hong Kong) and 8.45% (Taiwan) declared a cross-border move. Salary Increases Declared on Changing Jobs in 2017 Mainland China Hong Kong Taiwan 17.3% 16.1% 11.1% 16.6% 18.7% 20.2% 12.8% 13.8% 21.1% 12.8% 13.8% 25.7% 7.8% 21.8% 17.6% 16.9% 19.7% 16.2% Less than previous No change 1-10% 11-20% 21-30% 31%+ Top Three Gaps on Actual Role vs. Promise 45.3% Job content is different 36.9% Earning potential is less 31.8% Lack of autonomy Among those who declared a job change, 24% had been in their previous role for less than a year. Almost half explained their new move by disappointment over job content that was different from expected. Other issues related to disconnect on earning potential, autonomy in their roles and, for younger talent, a lack of learning or training. 1
3 What employers may experience in 2018 On average, 17.5% of Mainland China respondents intend to leave their company in Employees should be most stable in Whereas greater movements are expected in 10% Chemicals & Materials 28% Logistics/3PL 15% Industrial Services 28% Real Estate 15% Pharmaceuticals & Biotech 27% Marketing Media Services 15% Healthcare Services 25% Electronic Shopping & Ecommerce In Hong Kong, 23% expressed intentions to change jobs, with the least stability in Logistics/3PL as well as FMCG and Retail. In Taiwan, 18% declared intentions to leave their company. Also harder to retain in Mainland China will be employees of POEs (22% intend to move), while employees of US and European firms appear more stable (15%). 2
4 Stay or Leave As always, more than half of respondents are undecided and open for change. The decision to leave their employer will be a balancing act between motives of satisfaction in current roles and more appealing opportunities proactively coming their way via head-hunting firms or otherwise. Retaining Your Talent Motives of Satisfaction in Current Role and Company Mainland China Hong Kong Taiwan % 60.0% 55.2% Good compensation Good compensation Good compensation % 48.8% 55.2% Good career advancement opportunities Good work-life balance Good work-life balance % 42.8% 47.7% Good work-life balance Interesting job content Good career advancement opportunities % 38.5% 36.0% Company s growth prospects Good career advancement opportunities Company s growth prospects % 32.5% 35.6% Interesting job content Good relationship with my manager (s) Interesting job content % 29.5% 30.2% Feeling appreciated for my work Good relationship with my colleagues Feeling appreciated for my work % 25.7% 25.0% Feeling appreciated for my work Good benefits 8 Good relationship with my manager (s) 23.2% 25.7% 25.0% Company s growth prospects 3
5 Compensation on par with market, career advancement, work life balance, job content, company s growth prospects and being appreciated is what keeps most people happy in their current role and company. Key motives of change, besides compensation, are related to career advancement, work-life balance issues, as well as job content and company culture. In Mainland China and Taiwan, younger talent seek first and foremost career advancement (75% and 64% respectively) whereas Hong Kong young talent rate work life balance higher. Benefits matter too. This is particularly true for employees of Chinese (POEs and SOEs), Taiwanese and Hong Kong firms; and generally at smaller size firms. Also to be noted is that employees of POEs in Mainland China are more inclined to seek an entrepreneurial environment to make a difference whereas employees of EU and US firms tend to look for better work life balance and company culture. Attracting New Talent Motives for Seeking a Company Change Besides Compensation Mainland China Hong Kong Taiwan 1 A career promotion 66.2% 59.5% 54.8% A career promotion Good benefits 2 Good benefits 51.6% 55.7% 53.7% Work-life balance (location regular hours travel ) Work-life balance (location regular hours travel ) % 49.2% 48.0% More interesting job content 4 Work-life balance (location regular hours travel ) 46.5% 42.4% 45.5% Good benefits An international career 5 More interesting job content 37.8% 42.0% 43.1% More interesting job content 6 An entrepreneurial environment where I can make a difference 35.5% 35.0% 41.6% An entrepreneurial environment where I can make a difference A career promotion 7 An international career 32.5% 27.8% 40.6% An international career An entrepreneurial environment where I can make a difference 8 Company with no glass-ceiling for further promotion 22.7% 27.0% 21.3% Company s financial stability Company with no glass-ceiling for further promotion 4
6 Trade-offs Echoing motives for change, the vast majority of our respondents are open to trade off money for better benefits or work life balance. In addition, 70% declare readiness to invest in their future by learning digital skills. And half of Mainland China respondents will trade-off salary for working at a start-up. The proportion reaches 60% in Taiwan but only 42% in Hong Kong. Most interested in working at a start-up are E-commerce, Retail and Plant Operations professionals. Least interested are talents in corporate functions such as HR, Finance or Legal. Unsurprisingly, working at a start-up is comparatively more attractive for younger talent. However it also attracts executives aged 46+; the reason could be that they generally face less financial pressure, while job opportunities rarify due to age discrimination. Morgan Philips frequently meets senior executives open for an entrepreneurial venture. Motives for Trading off Salary Increase (Greater China) Better company benefits for yourself/family 17.8% 82.2% Better work life balance (closer location - remote work-fiexible hours...) 20.9% 79.1% Learning new skills for the digital age 27.4% 72.6% A company culture that suits me better (from the outset) 28.7% 71.3% A much higher variable incentive 33.3% 66.7% Working in a financially stronger and more stable business 37.7% 62.3% Working at a start-up 50.2% 49.8% A better title 47.3% 52.7% Yes No 5
7 More information? Coming Soon We trust that our readers will find these insights interesting to build / refine some of their talent acquisition and retention strategies. Charts refer to overall market trends. We hold at your disposal more granular data (age, gender and sector). Please write to us at cs@morganphilipshk.com with your request or question. The survey also collected executives views on digitalization and its impacts on their role, company culture and skills development needs. We will share findings soon via webinars and roundtables at our offices. Please register here so that we can invite you or write to us at cs@morganphilipshk.com. About Morgan Philips Group in Greater China Morgan Philips Group is an innovative recruitment firm with a footprint on 3 continents. In just 3 years, we have built a global platform that disrupts the conventional thinking in executive and professional recruiting. We combine high touch consultancy with worldwide search capability and digital sourcing technologies to offer Better, Faster and Cheaper services to our clients. In Greater China, where we are established since 1998 and a multiple award winner, we operate with two brands: Morgan Philips Executive Search and Fyte. Morgan Philips Executive Search recruits senior level executives. Fyte provides specialist recruitment for young to middle level professionals and managers.
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