China Outstrips US in Pay Increases

Link: Quick Takes -- Want a Good Raise? Go to China | workforce.com.

According to the Hay Group Pay Survey via Workforce.com, salary increases in China are outstripping increases in the US by a long-shot. Average pay increases in China are about 7.8% - 8.9% for professional, administrative and senior managers compared with 1.4% for their counterparts in the US.

While percentages look good the reality is that salary levels just aren't as high in China (although who knows how long it will take to reach US levels, at the current growth rates probably not that long). Even then low salary levels are not stopping many returnees from heading back to the mainland. As one China expert said to me recently, "the trend has changed, while previously Chinese students went overseas to study and stay for jobs, they are now returning immediately after graduating at foreign universities because the opportunities to move up in China are so exciting".

This has a positive and negative effect. There is no doubt that the Chinese returnees, much like India's returnees, who have extensive international experience bring a new (and very valuable) mindset to their home country. Returnees who bypass working overseas to return right after graduation will at least return with stronger foreign language skills and a wider international perspective but miss out on that valuable work experience. My advice would be to those young graduates that you challenge yourself to work overseas before you return to China. You will be a better person for it and it may make a big difference to your career. Certainly in the eyes of many recruiters it will make you stand out over many of your peers.

Comments

[Kong TEH]

Overseas working experience may add value to a Returnee's CV. However, I would suggest keeping the tenure to a short period. There's sufficient anecdotal evidence to suggest that a shorter time away from China increases the likelihood of a Returnee's integration upon their return.

As a Overseas Chinese, I have experienced the dilemma of a Returnee. On the one hand, a Returnee's single biggest value-add to his Western employer is his perceived ability to integrate with the locals better than a non-Chinese; this coupled with his/her training in Western business ethics/governance/process-oriented-thinking/straight-talking should in theory make the Returnee an ideal 'expatriate'.

In the past ten years I was twice 'returned' to the Greater China Region. While I had experienced success at a business level, my social integration was at best described as abysmal. The respect for me as a senior manager was there, but cultural norm did not encourage after work or weekend socialization between my staff and I. Instead, my social circle comprises of a mix of non-Chinese expats and some Returnees.

My times in Greater China had also allowed me to better understand the racial composition of the 1.3b Chinese citizens. While 92% of them is classed as Han Chinese, there are NINE distinct language groups (each with its own dialects) among the Han - Gan {9 dialects}, Guan (Mandarin) {49 dialects}, Hui {4 dialects}, Jin {6 dialects}, Kejia (Hakka) {9 dialects}, Min (Hokkien) {47 dialects}, Wu (Shanghainese) {35 dialects}, Xiang (Changsa) {18 dialects}, and Yue (Cantonese) {38 dialects}.

Their linguistic difference (oral at least) is as far apart as say Putonghua and Japanese or Hanggul (Korean). In essence, these nine groupings could have become a different nation had Chinese history taken a slightly different twist.

Even though I was posted to a 'province' which majority Han people came from the same region as my grandmother, i.e. Min, they wouldn't accept me as one of their own. During my other posting among the Yue speaking people, I faced the same hurdle.

In short, being a Chinese is no assurance of being a successful Returnee.

[Steven]

Thanks for the great comment! It's fascinating to get that insight. I have to admit I've also heard some tough stories about Returnees and Expats not being able to integrate into their positions and/or communities in mainland China. It's a good reminder that it's still early days for China as a global business destination for knowledge workers. I'm sure this is changing quickly though. But that also for many returnees and expats it means Hong Kong, Singapore and major cities like Shanghai are preferred over provincial postings.