MERCER CHINA2014 ANNUAL HR CONFERENCEWINNING THE FUTURE THROUGH TODAY’S INNOVATION
September 23, 2014Shanghai China
Economic OverviewGlobal, Asia Pacific and China
MERCER 2
World GDP and InflationGDP goes up and Inflation goes down from 2013 to 2015
Source: IMF World Economic Outlook (April, 2014)
-2.0
0.0
2.0
4.0
6.0
8.0
10.0
2008 2009 2010 2011 2012 2013 2014 2015
Emerging market anddeveloping economies Inflation 9.2 5.4 5.9 7.3 6.0 5.8 5.5 5.2
Emerging market anddeveloping economies GDP 5.9 3.1 7.5 6.3 5.1 4.7 4.9 5.3
World Inflation 6.0 2.5 3.6 4.9 3.9 3.6 3.5 3.4
World GDP 2.7 -0.4 5.2 3.9 3.2 3.0 3.6 3.9
MERCER 3
Shift in Global Business LandscapeDriving corporate growth in Asia Pacific
Source: APAC Exec Brief, August, 2014, IMA Asia
Asia Pacific still leading the pack
To cash in where the growth is today, and for the foreseeable future,
Increasing focus on Asia Pacific
4.3% GDPgrowth1.1% GDP
growth2.0% GDP
growth
Asia Pacific vs. Developed markets
MERCER
Regional GDP, Inflation & Salary Increase
0%
2%
4%
6%
8%
10%
12%
4
Source: IMA Asia Brief Aug 2014Mercer Global Compensation Planning Report 2014 July
*Mercer TRS Surveys 2014
AU CN HK ID IN JP KR MY NZ PH SG TH TW VN
GDP 3.0% 7.4% 2.5% 5.0% 4.9% 0.4% 3.6% 6.2% 3.3% 6.2% 3.2% 1.1% 3.8% 5.0%
Inflation 2.6% 2.5% 3.8% 5.7% 7.3% 2.7% 1.5% 3.5% 2.0% 4.6% 2.1% 2.3% 1.7% 4.9%
Salary Increase 3.5% 7.5%* 4.5% 10.0% 11.0% 2.1% 5.0% 5.6% 3.0% 7.0% 4.5% 5.9% 3.8% 10.7%
MERCER 5
-1
-0.8
-0.6
-0.4
-0.2
0
0.2
0.4
0.6
0.8
1
North America Europe andCentral Asia
Asia and Pacific Latin Americaand the
Caribbean
Middle East andNorth Africa
Sub-SaharanAfrica
• Overall index is unweighted average of the four pillar scores• Scores are weighted by population; population data from United Nations Department of Economic and
Social Affairs, World Population Prospects, rev. 2012.
Source: The Human Capital Report, World Economic Forum, 2013The report is published in collaboration with Mercer
Human Capital Index – by Region
Health andWellness
Education
Workforce andEmployment
EnablingEnvironment
Human Capital Index
MERCER
Human Capital Index - China Rank #43
6
Country Rank ScoreSwitzerland 1 1.455
Finland 2 1.406
Singapore 3 1.232
Netherlands 4 1.161
Sweden 5 1.111
Japan 15 0.948
United States 16 0.920
Malaysia 22 0.644
China 43 0.186
Thailand 44 0.158
Russian Federation 51 0.010
Indonesia 53 0.001
Brazil 57 -0.054
Mexico 58 -0.057
Vietnam 70 -0.202
India 78 -0.270
Source: The Human Capital Report, World Economic Forum, 2013
MERCER
6.0% 4.0% 2.0% 0.0% 2.0% 4.0% 6.0%
0-45-9
10-1415-1920-2425-2930-3435-3940-4445-4950-5455-5960-6465-6970-7475-7980-8485-8990-9495-99100+
Asia
Population Demographics – Gender
7
2010
2030
Source: UN Population Statistics 2012
Male Female
MERCER 8
Population Demographics – Median Age
Source: UN World Population Prospects 2012
0
5
10
15
20
25
30
35
40
45
50
55
India ASEAN USA Australia China South Korea Japan
Median Age of the Total Population(Years)
1990 2010 2030
MERCER
China’s Changing DemographicsAge Group between 20 - 59
9
Unit: thousand
The forecast of the future population adopts medium fertility rate assumption.Source: World Population Prospects: The 2012 Revision, United Nations
50,000
100,000
150,000
200,000
250,000
1990 1995 2000 2005 2010 2015 2020 2025 2030
20-29
30-3940-49
50-59
MERCER
China on Track for Moderate GrowthGDP, CPI, salary increase and turnover rate
10.411.6
13
9.69.1
10.49.3
7.8 7.7 7.4
-2
0
2
4
6
8
10
12
14
16
18
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014(E) 2015(F)
GDP CPI(Inflation Rate) Salary Increase Staff Voluntary Turnover
2014 1st half year
10
Source : National Bureau of Statistics of ChinaIMA Asia (Aug 2014)
2004-2014 Mercer Total Remuneration Survey
6.7
12.213.5
14.6
11.3
15.716.3
13.6 13.613.4
7.2
8.68.2 8.7
6.9
8.5
9.6 9.4
8.27.9
7.5 7.7
1.8
4.8
1.5
5.9
-0.7
3.3
5.4
2.6 2.82.52.6
MERCER
China on Track for Moderate GrowthGDP per capita
11
1. Source: IMF World Economic Outlook (April, 2014).2. GDP is expressed in current U.S. dollars per person. Data are derived by first converting GDP in national currency to U.S.
dollars and then dividing it by total population.3. For the ranking, there are 186 countries and regions with the data of GDP per. capita
China’s Ranking ofGDP per capita
Year Ranking
2011 91
2012 88
2013 84
2014(F) 82
2015(F) 81
54346078
67477333
7961
2011 2012 2013 2014(F) 2015(F)
MERCER
China GDP Growth Rate Forecast
12
Source: China Forecast Book, IMA Asia, 2014 Q3
0
3
6
9
12
15
2010 2011 2012 2013 2014 2015 2016
Manufacturing Construction Services GDP
CHINA: GDP Growth by Component, %
MERCER
China’s Total Debt vs. GDPRaised rapidly since 2008 economic risk increased
13Source: Financial Times reported on July 22, 2014, citing estimates from Standard Chartered.
MERCER
-20
-10
0
10
20
30
40
Gro
wth
Perc
enta
ge(Y
ear-
on-y
ear)
China FDI Growth
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
14
China Foreign Direct Investment (FDI)
Source : Ministry of Commerce of the People’s Republic of ChinaSource: World Investment Report 2014
United Nations Conference on Trade and Development
2011 2012 2013 2014
100124
2013 FDI Flow
FDI Outflow FDI InflowUSD, Billion
2014
Outflow > Inflow
MERCER
50.2
54.1
45
46
47
48
49
50
51
52
53
54
55 PMI ManufacturingPMI Service
Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
China PMI : Manufacturing and Services
15
Source: HSBC September, 2014
2013 2014
Service
Highest
since Mar 2013
Down Again
after 3-month upManufacturing
MERCER
Global Innovation Index rankings
16
Innovation – A Path to TransformationChina has improved its innovation from 2013 to 2014
Country/Economy Score(0-100) 2014 Rank 2013 Rank
Switzerland 64.78 1 1
United Kingdom 62.37 2 3
Sweden 62.29 3 2
United States of America 60.09 6 5
Hong Kong (China) 56.82 10 7
Japan 52.41 21 22
China 46.57 29 35
Russian Federation 39.14 49 62
Brazil 36.29 61 64
India 33.70 76 66
Source: The Global Innovation Index 2014Cornell University, INSEAD, and the World Intellectual Property Organization (WIPO)
MERCER
Summary
17
• China still has strong-to-moderate GDP growth rate in next 3years.
• Economic risk is raising due to stimulation.
• China may become a FDI net outflow country in 2014.
• China is on the way improving its Human Capital Index andinnovation ranking in the world, while the aging population willbe a issue, China has to seek way to offset its negative impact.
New Technology BringsNew Practices of Talent Management
MERCER 19Source: CBN Weekly 2014
MERCER 20
HR Revolution with business change
Hiring Communication
Learning&
Development
Saving
MERCER
From Graduates’ points of view
21
• Strong financialpower
• Competitivebenefits
• Innovative culture• Inspiring leadership
• Attractive companyproducts/services
• Innovative culture
• Fast promotion• Job Security
• Performance-basedbonus
• Fast promotion• Entrepreneurship
environment
• Grey area• Compensation for
overtimes
Data source: Universum
But lack of…
MERCER
Graduate Top 3 Preferences
22
Data source: Universum
MNCSOE
POE OWN-BIZSTART-UP
MERCER
FIFA World Cup and Social Network
23
Data source: Peel, eMarketer
350,000tweetsPer day
1,000 +milliondiscussion
62%out of500 million
MERCER
Revolution in Recruitment Channel
24
MERCER
Revolution in Recruitment Channel
25
MERCER
Once upon a time…
26
“……以最饱满的诚意,招聘最优秀的人才加盟,共同谱写辉煌的未来!” 我们将遵循公平、公正的
原则择优录用,同时提供具有竞争力的薪酬待遇和广阔的发展空间,欢迎优秀人才积极报名应聘。
MERCER
And Now…
27
“他就是传说中最理性的感性的管理者…无论多少关键词都无法代表他的全部现在快加入…吧让我们一起创造属于我们的下一个神话!”
“希望有美感,性格外向活泼敢想敢做,梦想无限的亲们踊跃加入!”
“领导炫酷:工作时带领你,指点江山帅你一脸,不定期释放傲娇卖萌特技…只要你来,绝不辜负!”
MERCER
CommunicationCEO Corner
28
MERCER
Learning & Development
29
MERCER 3024 September 2014
MERCER 3124 September 2014
MERCER 3224 September 2014
MERCER
85%Chineseemployees are notgood at financialplanning andinvestment
MERCER 3434
Investment Platform
Financial ManagementSeminar
Smart Saving
Customized FinancialManagement Solution
Smart SavingThe new thoughts on Benefits
Do not forget, you are an inflation-linked bond!
MERCER
0
1
2
3
4
5
35
I have trust in Company Leadership, who has cleargoals and is guiding the company in right direction
Company Culture
Standardized Management
Colleagues Relationship
Team Building Activities
Flexible Working Hours
Health Issue
Recognition for individualperformance
Democratic and innovativeenvironment
Open door policyfor complaints and appeals
Convenient Location
Data source: 2014 Mercer Retention Survey
Leadership and Retention - Key to Business
MERCER
Hiring Communi-cation
Learning &Developme
ntSaving
36
HR-Marketing
Transpa-rency
Innovation HR -Finance
MERCER CHINA2014 ANNUAL HR CONFERENCEWINNING THE FUTURE THROUGH TODAY’S INNOVATION
September 23, 2014Shanghai China