NEGOTIATING EMPLOYMENT CONTRACTSMorry Morgan

CONTENTS

The Talent LandscapeThe Talent Acquisition Equation

The Candidates’ Needs

Your Company’s Leverage

LANDSCAPEThe Talent

“China costs more than the average worker in any other emerging Asian economy, excluding Malaysia and Thailand, when considering in terms of combined salary and welfare payment.” - Chris Devonshire-Ellis , China Briefing

China has the lowest engagement (17%) and highest disengagement (29%) of all regions surveyed globally.

- BlessingWhite 2010/2011 Global Employee Engagement Research

“

”

Mexico ranked highest (75.8%) and China ranked equal third last (63%) alongside the UK.

- Hay Group employee engagement index

“

”

Top 10 issues

1. Soaring commodity prices (59.5%)2. Health care availability and prices

(42.9%)3. Income and wealth gap (31.6%)4. Government corruption (29.3%)5. Unemployment (24.2%)6. House prices (24%)7. Retirement pension for the elderly

(16.6%)8. Food safety (15.9%)9. Education Costs (10.9%)10.Environmental Pollution (10.3%)

in China in 2011

Source: Chinese Academy of Social Sciences

EQUATIONThe Talent Acquisition

NEEDS

FEATURES

BENEFITS

+ =

GOODWILLREPUTATION

TRUST

+ =

BENEFIT

TRUSTAGREEMENT

+ =

Candidate

Your Company

You and your line manage

Employer Brand

NEEDSThe Candidates’

“80% of employers admitted they are worried about losing their top performers.”

- Hudson, Salary & Employment Insights 2012

MRINew Challenges

Team CamaraderieWork/Life Balance

Aon Hewitt

Learning & Development

Company ReputationCareer Opportunities

Source: Network HR

vs.

40% TaxIn China

8 – 15% Tax

In Hong Kong & Singapore

EMPLOYERBRAND

Building your

Amway (China) Co. LtdAstraZeneca (China)Autodesk (China)Bacardi Wines & Spirits Ltd.BASFBayer Group in Greater ChinaBekaert Management (Shanghai) Co. LtdChina Telecom ShanghaiDanisco (China) Co. LtdDeloitte Touche Tohmatsu CPA LtdDHL-Sinotrans International Air Courier LtdDow Chemical (China) Company LimitedDow Corning ChinaElement Fresh Food & Beverage Management Co. Ltd

Evonik Degussa (China) Co. LtdFAW-VolkswagenGoodyear Tire Management Company (Shanghai)HSBC Life Insurance Company LtdLANXESS Chemical (China) Company LtdManulife TEDA Fund Management Co. LtdRoche Diagnostics (Shanghai) LimitedSAS Institute China Co. LtdSaudi Basic Industries Corporation (SABIC)Shanghai General Motors (SGM)Shanghai Genius Advanced Material Group Co. LtdShanghai Highly Group Co. LtdShanghai Tospur Real Estate Consulting Co. LtdShanghai Volkswagen Automotive Co. LtdTenneco ChinaWalmart (China) Investment Co. Ltd

STRONG EMPLOYER BRANDSSource: CRF

China’s Most Desirable Employer

www.networkhr.com

Antal International and Network HR magazine

What are internet zombies?

Antal InternationalFounded 19931440 FANS

RMG SelectionFounded 2010

31,000 FANS

Case Study

Norwegian Salmon

Norwegian Salmon Company

100,000+ FANS

4 replies

LEVERAGEYour Company’s

LEVERAGE

NEEDINESS

BATNA

Emotion & Timing

Best Alternative to a Negotiated Agreement

NEEDINESS

“The employment market is broadly positive for employees, with salaries continuing to rise as organisations compete for the best performers.”

- Hudson, Salary & Employment Insights 2012

Industries under pressure

Ac-coun-tancy

Fashion FMCG Leisure Luxury Goods

Medical70

75

80

85

90

95

ChinaAP Average

% E

xpec

ted

man

agem

ent h

ires

Antal International Q1 2012 Salary Snapshot

Topics most commented on

“The Chinese robot market is currently growing at an annual rate of about 30%. China will take the lead among industrialized countries with projected sales of 30.000 units in 2014.”

- Wolfgang Heller, Infonaut AB