BEIJING -
Salaries in China surged last year and are
expected to grow further this year, according to a
survey.
The survey, conducted by global
human-resources firm Mercer Human Resources
Consulting, showed that wages in China rose an
average 7.94% year on year in 2006. Mercer
estimated that salaries would continue to increase
by 7.7% in 2007.
Wages in China's oil and
information-technology (IT) industries saw a
substantial increase of 8.3% last year.
The survey covered 1,800 domestic and
foreign-invested
enterprises in industries
including high tech, IT, pharmaceuticals,
manufacturing, retail, automobiles, oil and
finance.
Shanghai saw the strongest pay
surge, with average wages increasing 7.7%.
Guangzhou and Beijing followed at 7.6% and 7.2%
respectively.
For the high-tech industry,
salaries increased in Shanghai, Guangzhou and
Beijing by 7.3%, 6.9% and 6.5% respectively.
Car-industry wages climbed 8.3%, 7.9% and 7.8%
respectively in these three cities.
Mercer's survey was carried out in 13
Chinese cities including Beijing, Shanghai and
Guangzhou, and second-tier cities such as Tianjin
municipality, Nanjing, and Suzhou in eastern
China's Jiangsu province, as well as Dalian in the
northeastern province of Liaoning.
The
survey also showed that salaries of mid-level
managerial staff climbed 8.5%, much higher than
the average of all employees interviewed. Middle
managers' pay increased 8.7%, 8.6% and 8.4% in
Shanghai, Guangzhou and Beijing respectively last
year.
But despite higher pay, middle
managers still tend to job-hop, according to the
survey, indicating that they are the most
sought-after employees in the job market.
Remuneration packages have become a key
factor for employees, said Brenda Wilson, managing
director of Mercer China. "Employers are faced
with two great pressures - the drain of excellent
employees and increasing salary costs."
Analysts said that given the competitive
employment climate, employers need to find more
efficient tools to retain high-caliber staff.
"Employers realize they should adopt a new
talent introduction and retaining mechanism," said
Wilson. She said this would involve recognizing
outstanding employees by widening the salary gap,
formulating a quick-response pay-adjusting system,
and providing good conditions such as flexible
working hours.
Meanwhile, with the Chinese
currency appreciating, it is making an impact not
only on the Chinese economy, but also on
employees' preference for salary payment.
For those whose salaries are denominated
in US dollars, Hong Kong dollars or Japanese yen,
real income has dropped because of the yuan's
appreciation. Some are now asking for their
salaries to be paid in yuan.
The value of
the yuan has already surpassed that of the Hong
Kong dollar. In southern China's Pearl River
Delta, more Hong Kong people are feeling the
depreciation of their salaries based on the local
currency.
Aside from Hong Kong citizens,
other overseas employees working in mainland China
have also expressed a desire for their salary to
be paid in yuan. Employers have said they will
take it into consideration when renewing
employment contracts.
Head
Office: Unit B, 16/F, Li Dong Building, No. 9 Li Yuen Street East,
Central, Hong Kong Thailand Bureau:
11/13 Petchkasem Road, Hua Hin, Prachuab Kirikhan, Thailand 77110
