CAE–2003HRSurvey

FindingsContentsResearchBackgroundResearchObjectivesResearchMethodologySampleClassificationBackgroundInformationExecutiveSummaryResearchFindingsConclusionDetailedFindingsResearchBackgroundHumanResourcesistheessenceofahealthycompany.Recruitingtherightpersonforthejobiscrucialtoacompany’sperformance,invigoratingitandmaximizingefficiency.Shanghai—China’smostprosperouscity—attractsmoreandmoreforeigncompaniestoitssoil,giantcorporationsandsmallstart-upsalike.TheydemandprofessionalHRagenciestohelprecruitidealpersonnelandbuildanHRsystem.Withaimtounderstandthecurrentneedsandattitudesofforeigncompanies/jointventures(JVs)towardsHRservicesinShanghai,inMay2003CBCMarketingResearchundertookacomprehensivestudyofhundredsofforeigncompaniesfromavarietyofsectors.TheresearchresultsintendtoguideHRservicecompaniestobetterunderstandingtheirclients’needs.ResearchObjectivesThisstudycoversthefollowingtopics:AwarenessofHRagencies&HRagencies/headhuntersamongforeigncompanies/JVsinShanghaiRateofturnoverinvariousmajordepartmentsAttitudestowardscurrentHRagencies/headhuntersSatisfactionlevelsregardingcurrentHRagencies/headhuntersCurrentclientretentionandnewclientpotentialforHRagencies/headhuntersforC-levelrecruitingResearchMethodologyComputerAidedTelephoneInterviews(CATI)CitycoverageShanghaiSamplesizeatotalofn=261CATIsurveyswereconductedTargetrespondentsHumanResourcesManagersintheShanghaibranchesofforeigncompanies/JVsSampleClassificationCompanyownership

JV–JointVenture FOP-ForeignwhollyownedprivateFOL-ForeignwhollyownedlimitedIndustries:allCompanyScale:Small/Medium/Large [basedonthenumberofemployeesinChina]Small-Below50employees

Medium-51-300employeesLarge-Over300employeesRespondenttypeC-level-CEO,COO,CFO,CTO,CIO,etc.M-Level–MiddlemanageriallevelOthertermsDK=don’tknowAidedresponse=apromptedresponse;testspassiverecognitiononlyUnaidedresponse=anunpromptedresponse;testsactiverecognitionRespondentCompanies-In=261Base：AllrespondentsMorethanhalfofinterviewedcompanieswereFOLs,andnearly1/3wereJVs.Theyencompassednineindustries.TheLightIndustryandConsulting/Servicessectorscomposedmorethanhalfofallcompletes.OwnershipIndustryRespondentCompanies-IIn=261Base：Allrespondents63%ofrespondentcompaniesemployedover2000staffworldwide.1/3ofthesecompaniesemployedover500inChinaalone.EmployeeCountsWorldwideEmployeeCountsinChinaExecutiveSummaryAwarenessofCurrentHRAgencies&HRAgencies/HeadhuntersNosingleHRagencyorheadhunterdominatestheShanghaimarket.LocalHRagencieshavegreaterawarenessthanlocalheadhunters.

Nearly80HRagencies/headhunterswerementionedunprompted.51jobhadthegreatestawareness,followedbyZhaopinandFESCO.ThreelocalShanghaiagencieshadunaidedawarenessesofaround4%.51jobandZhaopinalsoledinaidedawareness(awareness>90%).ManpowerandStaffServicereceivedrelativelyhigherawarenessamongforeignHRagencies/headhunters.Largecompanieshadsignificantlyhigherawarenessof‘上海經營者人才服務’(ShanghaiExecutiveSearchConsulting),‘科銳咨詢’(Chinacareer),andManpower.RateofTurnoverbyPositionandDepartmentTechnicalstaffhaveahigherrateofturnoverthandepartmentmanagers.Onaverage,3.6newdepartmentmanagersarehiredpercompanyperyear.Theaveragefortechnicalstaff:13.7positions.DepartmentturnoversmixedFinance/Administrationdepartmentshadthelowestturnover,whileSales/Marketingdepartmentshadthehighest.JVshadsignificantlylowerratesthanFOPandFOLcompanies.However,FOPnon-Finance/AdministrationdepartmentsratesweresignificantlyhigherthanthoseofJVs,FOLs.Morethan1/3ofHRmanagerswereunclearontheturnoverrateinProduction,Engineering,andCustomerServicedepartments.RecruitmentMethodsEvaluation-IRespondentsevaluated4channels:recruitmentwebsites,recruitmentnewspapers,staff/friendrecommendations,andtheHRservicemarket.Theywerebasicallysatisfiedwiththeperformanceofall.Staff/friendrecommendationsandrecruitingnewspaperswereperceivedasslightlybetterthantheothertwochannels.HRmanagersusedifferentrecruitmentmethods/channelstorecruitattheC-,M-,andTechnicalstafflevels.HeadhuntersareusedmorethananyotherHRservicechanneltorecruitC-levels.However,overonethirdofrespondentswerenotinvolvedinC-levelrecruitment.Only8%ofsmallrespondentcompaniesoftenseekHRagencies/headhuntershelprecruitingC-levelpersonnel.RecruitmentMethodsEvaluation-IIPostingsonrecruitmentwebsitesandnewspapersare2majorwaystoattractM-levelcandidates(29%and21%,respectively).About1/5ofcompaniesalsorecruitM-levelcandidateswiththehelpofHRagencies/headhunters.14%ofM-levelrecruitscomefrominternalpromotions.

Technicalstaffarelargelyrecruitedthroughrecruitmentwebsitesandnewspapers(39%and27%ofallchannels,respectively).Implications:HRagenciesandHRagencies/headhuntersshouldtakeadvantageofthepotentialmarketinhuntingC-levelandM-levelpersonnelinmediumandlargeforeigncompanies.

UsageHabits&Attitudes:CurrentHRAgencies/Headhunters-ICIICandFESCOarebothmajormarketplayersintheC-andM-levelrecruitingmarkets.Nevertheless,plentyofsmallHRagencies/headhuntersalsocompete.39%ofcompaniesuseservicesprovidedbyCIICtorecruitC-levels,and19%useFESCO.NooneHRagency/headhunterhasastrongshareofthismarket.With67%ofthetotalShanghaimarketshare,CIICandFESCOdominatethecity’sM-levelrecruitingservicemarket.SatisfactionlevelsregardingC-levelandM-levelrecruitingserviceswereaboutthesame.MostHRmanagerswere“somewhatsatisfied”withtheperformanceofcurrentHRagency/headhunterpartners.UsageHabits&Attitudes:CurrentHRAgencies/Headhunters-IIWordofmouthamongHRmanagersiscrucialforthesuccessofHRagencies/headhunters.Friends’referrals(46%)serveasthemajorchannelforHRmanagerstochoosetheirHRagencies/headhunters.Businessvisits(37%)toHRmanagersalsoinfluencedselectionoftheHRagency/headhunter.ValuedHRagency/headhunterservices:‘ServiceEfficiency’isperceivedasthemostimportantquality,and‘OtherValue-addedService’theleast.‘CommunicationSkills’arealsoimportant.‘ConsultingExperience’and‘BrandName’arenotasimportant.Headhuntersneedtoprovidemorethanjustrecruitmentservices.HRmanagersshowedinterestinReferenceCheckingandFollow-Upservices.CurrentClientRetentionandNewClientPotentialforC-levelHeadhuntersTheheadhuntermarketisdynamic,characterizedbyacombinationoflowcurrentuserloyaltyandhighpotentialfornewfutureclientcooperation.About1/3ofcurrentclientsplantochangeheadhuntersinthenearfuture.41%ofcompaniesinterviewedplantobeginusingaheadhunter.HRmanagerspreferJVorlocalheadhuntersforC-levelrecruiting.Nearly2/5ofHRmanagerswouldconsiderJVheadhuntersinthefuture.Incombinationwithlocalheadhunters,these“local”entitieshold56%ofthemarketshare.Only8%ofHRmanagerswouldchooseforeign-whollyownedheadhunters.DetailedFindingsPartI-AwarenessUnaidedAwarenessofHRAgencies&HRAgencies/HeadhuntersTotaln=261%Base：AllrespondentsWithoutprompt,42%ofHRmanagerscannotrecallanyHRagencies/headhunters.Amongthosementioned,51Jobreceivedthemostmentions.UnaidedAwareness51Job前程無憂Zhaopin招聘網FESCO外企服務CAE中消研(HRmarket)人才交流中心S.E.S.C.上海經營者人才服務ShanghaiShen-Cai上海申才擇業Manpower萬寶華Others(<3%)Don’tknowAidedAwarenessofHRAgencies&HRAgencies/HeadhuntersTotaln=261%Base：AllrespondentsWithprompt,51JobandZhaopinhadveryhighawarenessamongrespondents.About?wereawareofManpowerandStaffService,whichhadhigherawarenesslevelsthanotherHRagencies/headhunters.TotalAwareness(Unaided+AidedAwareness)51Job前程無憂Zhaopin招聘網S.E.S.C.上海經營者人才服務ShanghaiShen-Cai上海申才擇業JingYing精英企業管理咨詢Chinacae中消研Manpower萬寶華StaffService仕達富MRIConferry光輝國際浩竹獵頭PartII–RetentionRateNumbersofNewRecruits(last12months)Totaln=261%Base：AllrespondentsOnaverage,threetimesmoretechnicalstaffthandepartmentmanagerswererecruitedinthepastyear.DepartmentManagers1-3(2)3-6(5)6+(6)NoneTechnicalStaff1-10(5)10-50(25)50+(50)NoneAveragenumber: 3.6 13.7TurnoverRatesofVariousDepartments-IManyHRmanagersdidnotknowtheturnoverratesoftheirProduction,Engineering,andCustomerServiceDepartments.TurnoverratesinFinance/Administrationdepartmentsarelow.Totaln=261Sales/MarketingEngineer-ingCustomerServiceFinance/AdministrationProduction%%%%%Averageturnoverlevelrating: 2.49 2.25 2.25 2.22 2.08TurnoverRatesofVariousDepartments-IITotaln=261Base：AllrespondentsAverageScore(5pointscale:1=lowestrateofturnover,5=highest)Generally,theretentionrateindifferentdepartmentsisneitherhighnorlow,fromtheperspectiveoftheirHRmanagers.TheturnoverrateinJointVenturesislowest,whileitishigherinForeignOwnedPrivatecompanies.JV:2.24 2.08 1.98 2.06 1.88FOP:2.62 3.34 3.17 3.33 2.15FOL:2.61 2.28 2.31 2.25 2.19PartIII–RecruitmentMethodsRecruitmentMethodsforC-levelManagerialStaffTotaln=261Base：AllrespondentsAboutonefifthofrespondentcompaniesuseheadhuntersmostoftentorecruitC-levelstaff,whileonly8%ofsmallcompaniesoftencooperatewithheadhunters.MorethanonethirdofHRmanagersdefertoheadquartersintherecruitmentofC-levelstaff.88%aredirectlymanagedbyheadquartersHeadhuntersinUseTotaln=55%Base：Allthosewhouseheadhunters.Therearefourmajortypesofagencies/headhuntersonthemarket.Foreignagencies/headhuntersoccupythelargestmarketshare,with54percent.JVagencies/headhuntersandlocalagencies/headhuntershaveequalshares.RecruitmentMethodsforMiddle-levelManagerialStaffTotaln=261Base：AllrespondentsUnlikeforC-levels,almostallHRmanagersunderstandMiddle-levelrecruitment.Manyadvertiseonwebsitesandinnewspapers.Inaddition,nearlyone-fifthcooperatewithHRagencies/headhunters.RecruitmentMethodsforTechnicalStaffTotaln=261Base：AllrespondentsAdvertisingonwebsitesandnewspaperarethemajorwaystorecruittechnicalstaff.Only9%ofrespondentsuseHRagencies/headhunters.RecruitmentMethods-Summaryn=261%Thechartclearlyshowsthedistinctionsamongrecruitmentmethodsfordifferentkindsofpersonnel.HRagencies/headhuntersRecruitmentwebsitesRecruitmentnewspapersStaff/friendrecomm.ChosenbyheadquartersInternalPromotionHRMarketDKC-level M-level TechnicalstaffBase：Allrespondents.n=261%n=261%SatisfactionregardingtheRecruitmentChannels

ExcludingHRagencies/headhuntersTotaln=261Base：AllrespondentsAverageScore(5pointscale:1=VeryDissatisfied,5=VerySatisfied)HRmanagersarebasicallysatisfiedwiththerecruitmentchannelstheyuse.‘Staff/friendrecommendations’and‘Recruitmentnewspapers’areasperceivedbetterthantheothertwoPartIV–SearchServicesUsageHabitsCurrentCooperationswithHRAgencies/Headhuntersn=54%Base：AllthosewhouseheadhuntertorecruitspecificpersonnelMorecompanieschoseCIICandFESCO.CIICandFESCOarethekeymarketplayersforbothC-levelandM-levelrecruiting.Nevertheless,plentyofsmallHRagencies/headhunterscompeteinthemarket.CIICFESCOConferryOther(2%)DKC-level M-leveln=48%Note:BaseforTechnicalStafftoosmallforinclusion.CIICFESCOConferryZhaopin培英(PeiYing)斯科(SiKe)Other(2%)DKCurrentHRAgency/HeadhunterPartnersSatisfactionSatisfactionlevelsofC-levelandM-levelrecruitingservicesarealmostthesame.MostHRManagersaresomewhatsatisfiedwiththeperformanceofcurrentpartnerHRagencies/headhunters.AverageRating: 3.9 3.9 n=54%C-level M-leveln=48%Base：AllthosewhouseheadhunterstorecruitspecificpersonnelChannelsUsedtoFindCurrentHRPartners

n=70%Base：AllthosewhocurrentlyuseaheadhunterFriends’referralsmostimpactHRmanagers’selectionoftheirHRagencies/headhunters.BusinessvisitsfromHRagencies/headhuntersalsoinfluenceselection.Friend’sReferralBusinessVisitWebsite/EmailAdvertisement(Paper)PersonalRelationshipRankingofImportantHeadhunterAttributesServiceEfficiencyisperceivedasmostimportant,andOtherValue-addedServicetheleast.Communicationskillsarealsocrucial.ConsultingExperienceandBrandNamearelessimportant.AverageImportance: 4.0 4.1 4.0 3.8 3.5 3.2Base：AllrespondentsConsultingexperienceServiceefficiencyCommuni-cationPriceBrandnameOtherValue-addedserviceTotaln=261%InterestinHRAgency/Headhunters’ServicesHRmanagersaremoreinterestedintheReferenceCheckandFollow-Upservices.AverageScore: 2.8 2.9 3.1 3.3 3.3Base：AllrespondentsTotaln=261%ExecutiveSearchonlyLong-termHRRecruitmentTestReportsReferenceCheckFollow-UpservicePartV–CurrentClie