Q4 Industry Survey Analysis China / Shanghai 2015
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1 PSD Group Room 3705 Raffles City 268 Middle XiZang Road Shanghai China Telephone Q4 Industry Survey Analysis China / Shanghai 2015 PSD China Ltd Registered Office: Room 3705 Raffles City, 268 Middle XiZang Road, Shanghai , China Registered in England No Europe, Asia Pacific
2 Q4 Industry Survey Analysis 2015 has marked another successful year for PSD Shanghai. Numerous successful placements across a variety of businesses have led to an invigorated team looking forward to tackling the challenges that 2016 has in store. Recently, both candidates and clients from the Automation, Machinery and Control industries responded to a survey*, in order for PSD to better understand how to continue effectively placing candidates in high-level roles in which they can succeed. Our goal was to understand and identify the market forces which underpin industry growth and decline, as well as where talent within the industry felt they would see opportunities moving into PSD also sought to understand the key factors involved in motivating a candidate to change their job, thus deeper understand how best to identify the right-fit talent for our clients. *Over 500 surveys distributed to talent only within the Automation, Machine and Control industry within the Mainland. Market Outlook Unsurprisingly, the outlook for Q is not a positive one. Only 11% of clients and candidates anticipate growth for Q4, with an average expectation of a 5.98% decline. However, despite these expectations and the current economic situation both in Asia and abroad, we have been able to successfully adjust to the new norm in China. Candidates Outlook for Business Growth in Q % 23% 66% Growing Stable Negative Growth In order to gain a deeper understanding of current trends, we asked what areas were experiencing the most growth and what areas were experiencing the greatest decline. The responses we received were in line with what our market insights, via ongoing interviews and business discussion with our candidate/clients, have indicated. Over 55% of respondents were confident that industries related to Energy, IT & Data Centres, and Transport were growing. Respondents specifically emphasised the growth of Clean Energy as an industry driver and growth potential segment.
3 % Segments Candidates Perceive to be Growing 62% 56% 44% 38% 12% 9% 6% 6% 29% 68% Strategic Actions During these tough times, it is important to know what actions companies are taking to navigate the turbulent environment that lies ahead. What we discovered was an emphasis on three major strategic actions: Accelerating Product Localisation in China, an Increase in Direct Solution Sales, and a Focus on Deeper Distribution Strategy. Only 6% of clients indicated that they were Reducing Headcount to be successful in This shows us that as opposed to decreasing the payroll, companies are turning towards the domestic Chinese market in order to achieve success. This China for China approach explains why over of responses cited actions directly related to the utilization of the Chinese market as a strategy their company has taken. A deeper domestic focus into the local market can also be seen by almost a third (31%) of candidates discussing a new emphasis on Tier 2 Product Strategies. We feel this concentration on domestic development means opportunities will continue to present themselves in China for homegrown talent. Strategic Actions Taken by Candidates Businesses % 34% 54% 17% 57% 17% 17% 11% 31% 11% 6%
4 Important Job Change Factors With regards to relationship with the candidate, we have worked to understand what factors motivate a candidate when considering a new role. 69% of respondents said that the reputation and vision of the leader were important, 57% cited company culture, and 51% claimed challenge of role. A response rate of 14% for the previously top concern of employee brand demonstrates a shift in thinking. A company s brand is no longer the most important factor, but rather what a candidate can gain as an individual from working in a challenging role under an excellent leader. For 46% of respondents, salary and promotion was also a main factor when considering switching roles. Most candidates (47%) would expect a 21- increase in salary when considering a role switch. This continuation of a + salary increases again highlights the premium on job change that we see in the China market, and also demonstrates the sentiment of a bad economy where higher compensation is expected to counter against the new nature of job security. Percentage Salary Increase Candidates Would Expect in a New Role 12% 6% 15% 18% 29% < 10-15% % Challenge of Role Important Factors To Candidates When Considering a New Role 69% Reputation and Vision of Leader 14% Employee Brand 46% 46% Salary Increase 3% Promotion Additional Annual Leave 9% Additional Employee Benefits 26% Security in Industry Location of Job 57% Company Culture
5 Should you wish to learn more about PSD and/or speak to one of our Consultants, please do not hesitate to contact us at: PSD Group Global Network Shanghai/Hong Kong/London/ Manchester/Frankfurt/Munich/ Haywards Heath Norman Lau China Manager Room 3705, Raffles City 268 Middle Xizang Road Shanghai T: E: Room 3705 Raffles City 268 Middle XiZang Road Shanghai China
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