Asia

There is an increased demand for more skilled and multicultural talent Hiring the right talent is the primary source of competitive advantage Recruiting the right talent is a critical business priority Having a strong global EVP that is localized to each key market is essential Implementing a targeted and cost effective sourcing strategy is crucial

KEY TRENDS IN THE ASIAN TALENT MARKET

IN TODAY’S SCARCE TALENT MARKET:

Talent is often “not familiar” with Companies as employers.

They do not always know where to find their ideal talent or how to attract them

Their offers don’t get accepted

They lose talent to other companies

They spend a lot of money on advertising to attract people and fail to get them

They use language and images that students don’t understand

Engineering and IT students are in high demand across industries

Common trends among most fortune 500 companies…

SOURCE: NOVA GLOBAL TALENT STRATEGY INDICATOR 2011Based on a survey sent to Fortune 500 companies and 2010 Deloitte Technology fast 500 globally

66%Of global employerswill increase their hiring during 2012

92%Of Fortune 500 companieswill focus more on attracting the right talent during the next three years

1/3 Have few resources on the ground in Asia Pacific, which will experience the largest recruitment growth over the next three years

57%Say the economic downturn has led to re-evaluate efficiency of recruitment efforts

83%Say their current access to top students at schools where they don’t have campus presence is limited or non-existent

STATISTICS FROM SURVEY AMONG FORTUNE 500 COMPANIES


Over the next 3 years, employers are expecting significant recruitment growth in Asia Pacific, but many of them are not prepared and view those same markets as most challenging.

APAC – KEY SOURCE OF FUTURE TALENT

China, India, Hong Kong, Indonesia, and Singapore will experience the largest recruitment growth over the next 3 years

Asia Pacific will be the most challenging region with respect to sourcing ideal talents

1/3 of employers do not have strong recruiting presence in those markets at this time

Future Expectations per region/market

4

• INCREASING DIFFICULTY TO

RECRUIT TALENT ACROSS

APAC COUNTRIES – HIGH

DEMAND FOR SKILLED LABOUR,

EXPERIENCED PROFESSIONALS

AND MANAGERS

• QUALITY OF CANDIDATES STILL

A CHALLENGE – MAJORITY OF

EDUCATIONAL INSTITUTIONS OF

POOR QUALITY

• EXPLOSIVE GROWTH IN ASIAN

NATIONALS STUDYING IN THE

WEST – GLOBAL SOURCING

BECOMING CRUCIAL FOR

MULTINATIONALS

• Multinational companies lose

ground to national champions

• National as well as

multinational companies in

investment and growth mode

– increasing the pressure on

the talent market

• Millennial trends are seen in

Asian students and young

professionals influence

employer selection

• Retention a persistent

problem

• Concern over “Job Hoppers”

(2 year average tenure –

attrition rate 20-30%, up to

50% in China)

• Monetary reward and future

career opportunities the

main driver in employer

selection

Talent Sourcing Employer attractiveness Cultural differences

APAC MAIN CHALLENGES FOR EMPLOYERS

…to 7 companies in the Top 10 in 2011China: From 2 companies in the top 10 IDEAL™ Employer Rankings in 2006…Company Rank 2006Procter & Gamble 1

McKinsey 2

Citigroup 3

HSBC 4

China Mobile 5

Bank of China 6

PricewaterhouseCoopers 7

KPMG 8

Morgan Stanley 9

The Boston Consulting Group 10

Company Rank 2010

Bank of China 1

Procter & Gamle 2

China Mobile 3

China Development Bank 4

ICBC 5

CICC 6

Citi 7

SGCC 8

HSBC 9

PetroChina Company 10

What are the strong factors that domestic companies have? Financial strength and market success Secure employment and professional training and

development Offer a comfortable physical work environment and a

friendly work environment Good prospects for high future earnings and competitive

benefits

ASIA 2006 TO 2011 – THE RISE OF LOCAL FIRMS

Why aren’t international companies attractive to China’s top talent? I do not feel the career opportunities are

attractive enough The work environment is too competitive I do not perceive that I would develop at that

employer

Key conclusions…


Top 5 countries where employers recruit international students:

1. UK2. USA3. China4. Germany5. France

Primary employment markets for which employers recruit international students:

6. China7. India 8. France 9. UK

Do you recruit international students for roles in their home countries?

More and more organizations attempt to bring international students back to their home countries! 58% of employers say they recruit international students (occasionally or frequently) for roles in their

home countries

ASIAN STUDENTS STUDYING ABROAD IN HIGH DEMAND!

Never Occasionally Frequently

41%35%

23%

50%

26%

10%

5%

8%

I plan to work in my current country for 2-3 years before moving back to

my home country

I plan to work in my current country

I plan to work in my home country

I don't know

Other options

Plans for future employment – Asian students abroad

THE MAJORITY OF ASIAN STUDENTS ABROAD PLAN TO RETURN HOME

23%

77%

22%

78%

Asian students in US

Asian students in Europe

18%

82%

32%

68%

Do you have enough information about career opportunities available for you in Asia?

Have you been approached by employers based in home country?

ASIAN STUDENTS ABROAD NOT INFORMED ABOUT OPPORTUNITIES BACK HOME

Yes No

9

Communication

Technical competence

Practical experience

Business acumen

Team leadership

Adaptability

Sales

Management

Financial expertise

Theoretical knowledge

Administration/Organisation

61 %

59 %

52 %

50 %

49 %

48 %

39 %

36 %

26 %

25 %

19 %

21 %

22 %

32 %

28 %

24 %

15 %

18 %

19 %

9 %

4 %

4 %

Skills MissingSkills Desired

What type of skills are you looking for in new hires? What are the skills that your new hires lack the most?

THERE’S STILL A MISMATCH IN SKILLS DESIRED VS. CURRENT SKILLS

10

JapanHong Kong

China

Singapore

India

1. Banks2. Financial Services3. Auditing and Accounting4. Business services and operational consulting5. Travel and leisure

1. Banks2. Financial Services3. Auditing and Accounting4. Business services and operational

consulting5. Travel and leisure

1. Financial services2. Investment banking3. Accounting (public)4. Private banking5. Hotel/restaurant/tourism/hospitality

1. Banks2. Financial Services3. Auditing and Accounting4. Management consulting5. Public sector & Governmental Agencies

1. Banks2. Auditing and Accounting3. Financial Services4. Management consulting5. Business services and operational

consulting

THE MOST ATTRACTIVE INDUSTRIES TO BUSINESS STUDENTS

1. Engineering and manufacturing2. Automotive3. Telecommunication Services4. Aerospace and defense5. Hardware equipment

1. Engineering and manufacturing2. Banks3. Public sector and Governmental Agencies4. Educational and research institutions5. Construction and materials

1. Engineering and manufacturing2. Chemicals3. Aerospace and defense4. Industrial engineering5. Pharmaceuticals and biotech

1. Engineering/manufacturing2. Academic research3. Chemical/petroleum4. Engineering consulting5. Government/public service

Top Career Goal Trends in APAC

Local Differences – Business China: To be a leader or manager of people Japan: To be autonomous or independent Hong Kong: To be dedicated to a cause or to feel that I

am serving a greater good Singapore: To have work/life balance India: To be a technical or functional expert

-What career goals do you hope to attain within three years of graduation?

Local Differences – Engineering: China: To be a leader or manager of people Japan: To be a technical or functional expert Hong Kong: To be secure or stable in my job Singapore: To have work/life balance India: To be a technical or functional expert

Business1. To have work/life balance 2. To be secure or stable in my job3. To be a leader or manager of people4. To have an international career

Differences do occur on a country by country basis in the ordering of the above career goals and the addition of country-specific career goals.

Engineering1. To have work/life balance 2. To be secure or stable in my job3. To be a technical or functional expert4. To be a leader or manager of people

THE MOST IMPORTANT CAREER GOALS

The local differences are based on the biggest positive difference to the average among the career goals in each market.

Business1. Good prospects for high future earnings

(Remuneration & Advancement Opportunities)2. Will enable me to have good work/life balance (People

& Culture)3. Good reference for future career (Remuneration &

Advancement Opportunities)4. Professional training and development (Job

Characteristics)5. Offers a friendly work environment (People & Culture)

My IDEAL™ employer should offer. . .

This data excludes Singapore as the data due to differences in the methodology. The local difference is based on the biggest positive difference to the average among the Top 5 attributes in each market.

Engineering1. Challenging work (Job Characteristics)2. Will enable me to have good work/life balance

(People & Culture)3. Good prospects for high future earnings

(Remuneration & Advancement Opportunities)4. Offers a creative and dynamic work environment

(People & Culture)5. Secure employment (Job Characteristics)

Local Differences – Business: China: Competitive benefits (Remuneration & Advancement Opportunities)

Japan: Secure employment (Job Characteristics)Hong Kong: Professional training and development (Job Characteristics)

India: Financial strength (Employer Reputation & Image)

Local Differences – Engineering: China: Competitive benefits (Remuneration &

Advancement Opportunities) Japan: Challenging work (Job Characteristics) Hong Kong: Professional training and development (Job

Characteristics)

India: Leadership opportunities (Remuneration & Advancement Opportunities)

ASIAN STUDENTS’ IDEAL EMPLOYERS

13

EXPECTED ANNUAL SALARY

14

OUT OF ALL THE MAJOR ASIAN COUNTRIES, CHINA ACCOUNTS FOR THE MOST OVERSEAS STUDENTS IN US FOLLOWED BY INDIA AND SOUTH KOREA

Japan21K

South Korea73K

China158K

India103K

Vietn.14K

Taiwan25K

Number of Chinese born students in USA went up by 23,3% between 2010 and 2011

Number of undergraduate Chinese students in USA increased by 43% between 2010 and 2011

15

3. NY University1800

Total Chinese Students Undergraduate Level Graduate Level

1. UCLA

CHINESE STUDENTS ARE TO A LARGE EXTENT SPREAD OUT IN USA, MAKING IT DIFFICULT FOR COMPANIES TO FIND THEIR IDEAL TALENT

2. Univ. of Illinois

5. Columbia University

1800

Total USA158 00057 000 77 000

16001900

4. Purdue Univ.1600

16

77 000 Chinese study in US

on Graduate level10% plan to go back to China after graduation

50% consider to go back to China after graduation

20% study computer science

19% study engineering

Total potential sourcing base:

28% study business

62 370 46 970 21 560 2 156 12 936

THE ACTUAL SOURCING BASE IS MUCH SMALLER THAN MOST COMPANIES THINK AND THE COMPETITION FOR OVERSEAS TALENT IS FIERCE

17

2. USA104 00014 000 63 000

Total Indian Students Undergraduate Level Graduate Level

1. UK41 000

--

5. SWEDEN1900

3. FRANCE

17004. GERMANY

4000

--

--

--

WHERE AND WHAT DO INDIAN STUDENTS STUDY?

18

63 000 Indians study in US

on Graduate level10% plan to go back to India after graduation

50% consider to go back to India after graduation

20% study computer science

37% study engineering

HOW BIG IS YOUR TARGET GROUP?

Total potential sourcing base:

39 690

15% study business

27090 9 450 945 5670

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