Multiple policies firmly in placlocal policies • Catering to intra regional hiring or transfer
Continued trimming down of full expatriate package
Managing China Hires & Returnees
– 64.5% companies currently employ PRC returnees
– 61.0% (12% increase from 2003) companies currently employ China-hired expatriates
Increasing Diversity in Expatriate Supply
“Former” expatriate staff hanging around Asians looking for better job opportunities in China
• Hong Kong, Taiwan, Singapore the most
Rapid business expansion of global business to China demands for a bigger talent pool
Continuous transfer of AP and Greater China headquarters to China
• Decreased use of traditional expatriate package • Modified and even towards localized
Highly customized packages for China Hired Foreigners and Returnees
0.0%
External Recruitment Channel
52.9%
41.7%
55.6%
50.0%
From Home Country
In the Asia Pacific Region
2003
2004
Hewitt Associates
8
52.8%
45.7%
In China
2004 Expatriated Chamber Presentation
Returnees coming back to home country New adventurers from all around the world
Hewitt Associates
5
2004 Expatriated Chamber Presentation
Expatriate Package Change
Hewitt Associates
2
2004 Expatriated Chamber Presentation
Market Overview – Expatriates in China
Demand for Expatriates Remains High
No apparent relief from local senior management staff shortages
Specific industry technical experts lacking in local market
• Advanced technology • Financial services
Hewitt Associates
4
2004 Expatriated Chamber Presentation
• Case by case approach mostly in the present market
• Prevalence of hybrid packages
Hewitt Associates
6
2004 Expatriated Chamber Presentation
Population Change in the Coming Year
Expatriate and Returnee C&B
Findings and Trends from the 2004 Expatriate Study
Shanghai/Beijing/Guangzhou December 2004
Agenda
Market Overview Study Background Cash Compensation Analysis Benefits Program Analysis Expatriate Localization Q&A
1-6 People 66.7%
5-10 People 11.7%
Over 20 People 5.0%
7
10-20 People 16.7%
2004 Expatriated Chamber Presentation
External Recruitment Channel
70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0%
0.0%
10.0% 20.0% 30.0% 40.0% 50.0% 60.0%
9
2004 Expatriated Chamber Presentation
Study Background
Survey Background
Expatriate Population Change
No Change Population Decrease Population Increase
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% Total Response
Hewitt Associates
Packages Comparison: PRC Returnee vs. China Hire
Hybrid Package
Local package Expatriate package
5.6%
21.9%
32.8%
53.1% 54.9%
43.7%
China Hire PRC Returnee
Hewitt Associates