LEGAL. Talent trends. Insights into hiring, roles, skills and salaries for your team. Mainland China H1 2018
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1 LEGAL Talent trends Insights into hiring, roles, skills and salaries for your team Mainland China H1 2018
2 Employment Market Insights 2
3 Hiring demand & supply: Multinational firms bring legal in-house Among Hudson s multinational clients, many have plans to reduce the cost of their external spending on law firms and bring this function in-house to create efficiencies. Many organizations are also expanding due to stronger than expected economic growth in China in 2017, which led the International Monetary Fund (IMF) to revise its forecasts for GDP growth in 2018 by 0.1 percentage point to 6.8%. 1 China - Employer hiring intentions CHINA - EMPLOYMENT MARKET INSIGHTS Maintain headcount 75 % Increase headcount 24 % H H H H H H1 Decrease headcount 2 % 2018 Oversupply of law graduates With a large increase in the number of universities offering law degrees, many graduates are in the market and job seekers are competing with one another for the best jobs. However, the challenge with so many job seekers available, is to find those who are a strong cultural fit. Additionally, in an environment of economic uncertainty, many are opting to stay in their current role. Hudson research Oct. 2017: Legal employers, China 1 World Economic Outlook, 3
4 CHINA - EMPLOYMENT MARKET INSIGHTS Hiring challenges: Cultural fit the number one challenge While 2017 saw an uptick in economic activity, in 2016 the economy experienced a drop-off in foreign investment and MNCs reducing their activities in China. 1 As a result, it s likely that economic uncertainty will continue to play a part in legal employees decisions to stay in their current roles. As organizations look to reduce their external expenditure, many are looking to bring legal teams in-house, hence the demand for legal job seekers who will fit with the organizational culture. Top 3 hiring challenges 1. Finding candidates with the right cultural fit for your team 2. Assessing candidates to determine the likelihood of success in a role 3. Finding candidates with the relevant soft skills What are the main reasons for the hiring challenges? 1. Economic uncertainty candidates preferring to stay with current employer 2. Candidate quality high expectations and not enough cultural fit 3. Employer brand - company culture and structure not attractive enough Do you expect to pay more to attract new hires? If so, how much more do you expect to pay for people (for the same profile) you re hiring today compared to a year ago? 49% 10% more 15% more 20% more 30% more More than 30% 12% 36% 36% 16% YES 4 Hudson research Oct. 2017: Legal employers, China 1 The Guardian,
5 Leadership challenges: Managers seeking to improve employee performance Organizations are increasing their focus on employee performance and retention. This is mainly driven by the bottom line, as employers recognize they can save costs by improving efficiency and reducing staff turnover. CHINA - EMPLOYMENT MARKET INSIGHTS Top 3 leadership challenges 1. Improving employee performance 2. Managing people across different cultures 3. Keeping employees engaged and motivated Do you expect you will need to give more in pay rises to retain staff? If so, how much more do you expect to pay in pay increases to retain people compared to a year ago? 57% 10% more 15% more 20% more 30% more More than 30% 10% 55% 25% 10% YES Hudson research Oct. 2017: Legal employers, China 5
6 CHINA - EMPLOYMENT MARKET INSIGHTS Technical skills for a growth market As a rapidly growing and constantly evolving market, Chinese employers require their legal teams to have the skill set to support expanding business ventures. Soft skills essential for lawyers The best legal talent needs skills such as learning agility in order to keep on top of the latest laws, regulations and trends, while negotiation is a foundational skill for lawyers. Deal lawyers in particular need a drive for results and the ability to prioritize tasks and manage deadlines. In-demand roles and skills: Business partnering a priority Most in-demand job functions/ roles: M&A, PE, VC Fund formation/investment Dispute resolution IP (including IP protection) Labor and employment FCPA compliance and investigation Capital markets Most in-demand technical skills: Compliance and investigation M&A, PE, VC Fund formation Commercial litigation and arbitration Intellectual property 6 Most in-demand soft skills: Learning agility Stakeholder engagement Negotiation and influencing skills Resilience Drive for results
7 Salary guide: Legal* SALARY GUIDE CHINA (RMB 000) Years of experience <3 years 4-6 years 7-9 years 10 years or above In-house Lawyer ,500 1,000-4,000 Paralegal N/A Company Secretary N/A 700-2, ,000 1,000-4,000 Legal Secretary International Law Firm Business Development ,000 Lawyer ,500 1,000-2,000 1,500-3,000 Paralegal N/A N/A Legal Secretary Office Manager N/A N/A Local Law Firm Lawyer , ,500 *This salary guide is a compilation of salary and market information provided by Hudson consultants, clients, candidates and other sources across Asia. Information was gathered by drawing on the extensive knowledge of our specialist recruitment consultants across Hudson s specialist practice groups. Salary ranges are approximate guides only. They relate to base salaries and exclude bonuses/incentive schemes/stock options etc. 7
8 Contact Emma Zhang Principal Consultant ZHANG LI Registration No. R Methodology Hudson undertook quantitative research with hiring managers and employees across Asia to analyze the talent landscape and provide insights on what employers might expect in 2018 and beyond. We canvassed the views of over 3,500 employers and employees in Asia in September and October 2017, across multiple job functions. From these findings we developed this report for the legal profession a combination of the survey findings and Hudson s specialist insights on the hiring landscape. Percentages don t always total 100% because respondents could select more than one option for certain questions. Hudson Legal Hudson s specialist recruitment consultants have the in-depth market knowledge of salaries, job titles and hiring trends to ensure you achieve the best outcome for your organization at the appropriate remuneration. We build highly nurtured and engaged pools of select talent so you can find the right person quickly. This means greater speed and precision in placements, and higher satisfaction for both clients and candidates. Our proprietary assessment tools and techniques will help you find candidates with the right technical skills and capabilities for the role and for your team, so you can achieve higher performance and superior business results. Hudson Global Resources (Singapore) Pte Ltd EA Licence Number: 03C4590 Hudson Recruitment (Shanghai) Ltd EA Licence Number: 沪人社 号
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