2013 UK Careers Adviser Mission to China

2013 UK Careers Adviser Mission to China • Have a clear, up-to-date and in-depth overview of the current employment situation in China. • Gain a deeper understanding of different approaches to recruitment among China based companies. • Learn of current opportunities available to and challenges faced by graduates from the UK in China’s job market.

British Council China initiative – Inaugural event

China’s Economic Situation • China’s growth has been slower from 10% in the last 30 • years to predicted growth 7% from 2016 • Historic growth from urbanisation not sustainable (2 • Londons every 2 years) • Future growth will come from productivity improvements • Process improvement, improved supply chain, financial services industry • Past growth has been coast and Inner Mongolia (coalfields) • Future growth will be Sichuan, Chongqing and Tianjin (e.g. Intel) – Tier2 cities Alistair Thornton Senior China Economist IHS

The affects of the Economy on Graduates • Slower growth impacting graduate recruitment • Salaries fell in 2009 due to world economic • recession • Graduate aspirations are higher than reality • initial starting salaries low • will progress after 2-3 years • graduates don’t always see this and ‘jump’ • Employers need graduates with the right fit for their industries • AND work experience is advantageous Alistair Thornton Senior China Economist IHS

The affects of the Economy on Graduates • No shortage of graduates • Many graduates seek a graduate level • role but need to consider entry level posts • also • Be prepared to wait for 2/3 years to gain • significant career progression (including • substantial salary rises) • Need to show your capabilities in a job • role first. Alistair Thornton Senior China Economist IHS

Benefits of studying in the UK • English language skills from a British education • are not valued as they once were. • Graduates must be able to demonstrate their • strengths and capabilities, as well as the benefits • from having studied in the UK • Involvement in the local British culture is essential • Must be able to bring something of the insight of • what the UK is like, vital for Chinese companies • competing in a global economy.

The impact of the Hukou • Hukou restrictions – needs urgent reform • it can mean up to 10 years residency before • Hokou can be transferred (10 years?) Alistair Thornton Senior China Economist IHS

Fresh Graduate Talent Trends in ChinaEmployment outlook 2012 many companies recruiting and making redundancies at the same time – different skills being required 2013 world economy slowing down but China expecting a modest recovery with more jobs and higher salary increases Entire economy being repositioned – move from “made in China” to “invented in China” and “serviced in China” Hard to predict

Fresh Graduate Talent Trends in ChinaSupply and demand • In most industries, planned increase in staffing levels is 10% and fresh graduates account for lots of that – strong needs for fresh graduates across most industries • But nearly 7 million fresh graduates in 2012 and rising annually • Graduates are choosy, want a good job offer • quality of job offers is variable • 68.5% find a job • an average of 2.12 job offers per graduate • 24.5% go on to further study, 5.9% overseas

SO, it’s very competitive….. Chinese graduate job market in 2013

Types of employers • FIE - Foreign Investment Enterprises • Offer leadership development, access to knowledge and leading technology, strong management systems • POE - Privately Owned Enterprises • Offer high earning potential, good career progression, autonomy • SOE - State Owned Enterprises • offer job security, work/life balance • What is the individual graduate looking for?

Fresh graduates’ preferred Top Ten employers 1. China Mobile 2. Bank of China 3. Alibaba 4. Microsoft Corporation 5. Industrial and Commercial Bank of China 6. Procter & Gamble 7. PetroChina 8. Huawei • Baidu 10. Google

Fresh Graduate Talent Trends in ChinaWhat do graduates look for ? • Career development, pay and working location are important • Future of the industry, working environment and reputation of the employer are less important • Work/life balance is unimportant Fresh Graduate Talent Trends in ChinaHow do graduates find jobs ? • University website, campus flyers, university internet bulletin board system • Chinese social networking sites • Connections – family ,organisations and alumni – have a strong impact

Fresh Graduate Talent Trends in ChinaSalaries ? • Starting pay is based on educational background – masters can add £2,200 pa over degree out of an annual salary of £8,000 in tier 1 cities • Overseas study still can have a premium but gap is closing • Sales and marketing, and R&D attract higher salaries than other functions - PhD much preferred in R& D function • Auto and healthcare industries offer highest starting salaries

Employers Recruitment Styles in China Recruitment methods are similar in most sectors including campus presentations, attending campus job fairs, applications by CV and possibly online tests, 1 or 2 rounds of interviews, assessment centre All focus on skills and mindset – solid professional knowledge, development potential, work ethic, team focus, results-driven, innovative / entrepreneurial / think outside the box Typically recruit between Oct and Jan

State Owned Enterprises (SOE) Still very traditional in their recruitment methods Only hire from 211 Chinese universities and often family “guanxi” is also required May not have equal opportunities for male and female applicants for some roles Starting salaries tend be lower but do increase over time – other benefits include organising the “hukou” and job stability Overseas educated Chinese need to be careful not to appear arrogant (“improper mindset”) as most co-workers will not have studied abroad and won’t value this experience Expect some “reverse culture shock” at first

Quotes from / about SOEs “Personality is not crucial – a new graduate is like a tree- integrity (roots), reliability (trunk) and ability to learn (branches)” “In an SOE, people need to spend 50% of their energy on relationship building” “Chinese employers don’t know which UK universities are the best so that’s a big problem” “Some employers hate returners speaking English because they think they are arrogant – need to be respectful of the company culture”

Privately Owned Enterprises (POE) Recruitment is likely to be more open and based more on knowledge and skills There is no typical POE – some have grown from SEOs and are therefore more traditional while others are small start ups and pay less but are more realistic for those not from 211s with guanxi It is possible to earn more money more quickly in a POE than in a SOE Proving your ability is important – “Jumpers”- “jumping” too quickly and too often chasing higher salaries is a problem May get better salary and career progression by waiting and playing the ‘long game’

Quotes from / about POEs “We can pay double for UK graduates with an IT undergraduate degree” “Graduates want a 20% p.a. pay rise so move on quickly” “Our graduates leave and go on to FIEs which is a success (if they have stayed for 2 or 3 years)

Foreign Investment Enterprises (FIE) Seen as being fairer in their hiring, including gender Value all UK work experience (more than others do) Focus is more on personality than where the graduate studiedAlso open minded about UG v PG degree Graduates are mentored, the focus is on career development Huge competition from overseas returners

Quotes from / about FIEs “Hires from the UK meet our criteria very well, they are more mature than the locally educated Chinese” “We prefer the more aggressive and culturally aware overseas graduates”

What do graduates want? “job security” - SOE “get rich quick” - POE “professional skills” - FIE

Fesco Adecco • No. of Chinese overseas student still growing – UK 21,000 in 2007 to 56,000 in 2011 • 93% are financially self-supporting • 63% returned to China when overseas study ended (Post Study Work visa still available at that time) • 53% don’t have a career plan on return

Fesco Adecco • Main problems on return relate to: • Positioning in labour market – seen as ‘unsuitable’ for higher posts but students unwilling to take lower ones • Difficulties adapting to working environment • Unrealistic expectations because of international and local pay and benefits differences • An ‘Inflated ego’ compared to domestic candidates has been mentioned • Can give ‘settling in’ and peer/management relationship issues • Returnees could use www.Alumniuk.org.cn to find a job in China

Zhaopin.comLeading HR recruitment provider in China • 2012 – 230K Chinese educated graduates with returning graduates is 1.5m Returning Chinese Graduates : • 25.9% of HR companies say yes they would recruit • 66% say no they would not recruit • 7.97% say they don’t like returning graduates Tips for Employment : • Innovation talent is valuable , Team work, • Make use of Alumni resources and grasp valuable job opportunities. Salary : • Year 1 RMB 40K , 1 + years 83K, 2 + years 130K , 3+ years327K

Key message for students • Know what you want – stability (SOEs), get rich quick (POEs) or professional development (FIE / MNCs) • Don’t assume that employers in China want the same things – some want a 1 page CV, some 2 pages, some want you to sell your overseas experience while others want more humility

Key message for students • We are aware you will maintain and develop your networks back home, primarily using social media, while you’re studying in the UK. However we encourage you to engage with UK students and your ‘wider’ university to learn more about UK culture and to develop your communication skills as best you can • Try to get the ‘right’ work experience where possible • Develop your interview skills & learn the etiquette of the interview process. The Careers Service can help with all of these. • Having a degree or PG degree from a foreign university does not automatically give you any advantage at the entry stage if you are Chinese, but when you do get in, work hard and stay loyal and the rewards will come

Key message for students • A qualification is not enough. To be competitive and work with large global companies you need to really develop your English skills, integrate with UK and other nationals to understand and appreciate different cultures, learn to work with and cooperate with others and develop a range of key competences • Important to keep in touch with the internship/graduate opportunities available at home alongside UK options

Key messages for students • Networks with family and alumni are vital. Social Media is now massive in China and a major source of job vacancies. • Returning graduates should be flexible re: type of companies they are willing to work for, cities they will consider (not just tier 1 and 2), level of job they are willing to start with. • Internships are important but any job where you are mixing with British people and developing your team work skills is seen as important.

Key messages for students • Research the market place • Have a clear, up-to-date and in-depth overview of the current employment situation in China. • Gain a deeper understanding of different approaches to recruitment among China based companies. • Decide on your career criteria, salary, lifestyle, career development etc • Make the most of the opportunities in UK Universities • English language practice and deeper understanding • Chinese network – useful for job hunting on return • Get in touch with your alumni group in China whilst you are in the UK • Work or voluntary experience • Become familiar with the jobs websites and use your personal network • Be familiar with reverse culture shock and get advice from alumni • Apply early, don’t wait until you get back to China

Where are the jobs advertised • Company websites • Newspapers – e.g. South China Morning Post • Fesco Adecco • LinkedIn • Monster • Recommendations • Weibo • Job boards: • www.zhoapin.com • www.51job.com • www.chinahr.com • www.baijob.com • Focus on fresh graduates and interns • www.yingjiesheng.com – exclusively for fresh graduates • Just for UK alumni www.alumniuk.org.cn – make sure you sign up!

Compiled by Michele Zala – collaborative presentation contributions from : Elizabeth Bailey, Caroline Baldwin, Beth Cooper, Judy Everett, Bob Gilworth, IwanGriffiths, Matthew Heap, David Levinson, Andrea Kreideweiss, Linda Hanson, Shirley Marsland, Ellen O’Brien, Rachael Roberts, Alan Robertson,Siobhan Scanlon, Margaret Wolff.