Chinese firms expect salary increases, high turnover in 2014

Source:Global Times Published: 2013-12-12 23:43:01

Double-digit salary rises and high employee turnover will be the two major challenges for companies in China in 2014, according to a report released by recruitment consultancy Michael Page Thursday in Shanghai.

The report was based on data and information collected from 700 clients.

In 2014, average salaries in China will increase 6 to 10 percent. Four professional industries - procurement and supply chain, property and construction, engineering and manufacturing and technology - are likely to experience a double-digit salary rise in 2014.

These industries will likely see high salary rises in 2014 due mainly to strong expectation of growth next year as well as more companies focusing on improving technology gradually, Richard King, managing director for Michael Page in northern and eastern China, said at the meeting on Thursday.

"The pace of salary growth in China is higher than other countries, and the trend will still keep for a while," King said.

Also, the report said among the 700 clients, expectation of staff turnover in 2014 reached 45 percent, especially for talent in the sales, technology and marketing sectors.

In addition, the steady economic growth in China will cause a severe skills shortage in some sectors, such as manufacturing, auto, chemistry, and retail industries, Xu Weiwei, a director of the eastern China region from the company, said at the meeting.

Furthermore, the pushing forward of urbanization will create a large demand for skilled employees in 2014, the report said.

"In the e-commerce industry, China lacks professionals who are experienced in e-commerce and have fluent English language ability as well," Xu said.



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