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Executive Costs In China - Key Factors That Recruiters Need To Think

Executive Costs In China - Key Factors That Recruiters Need To Think

One of the biggest hurdles in the recruitment process is that of deciding the most appropriate compensation for the candidates. The factors, on which this decision is based, vary from one economy to another. Hence it is not surprising that the executive compensation in China is still significantly different from the executive compensation offered in other countries across the globe. Prominent Changes In Chinese Economy Over the past several decades, the Chinese economy has undergone a transformation from being a centrally planned economy to being a market-oriented one. The rapid market growth has contributed significantly towards the country’s GDP growth, which is expected to surpass the GDP of USA in 2018. Typical Components Of Executive Compensation In China However, as the experts from the top executive search firms in China have observed, using the performance based system for determining the right pay might not be that easy. This is because this system depends largely on the ability of an organization to collect authentic and comprehensive details about the performance of individual executives. Difference Between Local And Expatriate Executive Compensation There is a significant gap in the executive compensation offered to local talent and expatriate professionals. This is mainly due to the aggressive recruitment of expatriate executives by Chinese organizations with the objective of attracting the best talent. At the same time there has been a significant rise in the compensation for local talent, even though it is still much lower as compared to expatriate executives.

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