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The gap between what employers expect and what employees aspire to has long existed. However, recent trends highlighted in Michael Page Chinese Mainland’s Talent Trends 2024 report show that this divide has become more pronounced, leading to a growing ‘Expectation Gap’.”
The COVID-19 pandemic triggered a profound shift in how people view work-life balance and personal priorities, leading to significant changes in the talent market.
As a result, job seekers and employees have emerged with renewed confidence in advocating for their preferences. They realised that work, while necessary, is just one facet of a fulfilling life. Employees are more empowered than ever to seek environments aligned with their values and lifestyle choices.
"On the one hand, workers have a growing list of expectations stretching beyond competitive salaries and flexibility. On the other hand, employers face significant pressures in a rapidly evolving business environment, making it harder for both sides to meet in the middle," says Rupert Forster, Senior Managing Director at Michael Page Greater China.
For employers and hiring managers in Chinese Mainland, understanding and addressing this amplified expectation gap has become crucial for developing effective talent strategies to attract and retain top professionals in an increasingly competitive global talent market.
Chinese Mainland employers face unique talent challenges despite better metrics than APAC and global averages. Some 22% struggle with recruitment and 14% with retention, compared to higher regional figures.
Key hurdles include finding culture-fit candidates, matching salary expectations, and balancing competitiveness with cost management.
To succeed in this evolving job market, employers should focus on clear communication of company culture and offering competitive compensation. Also, prioritising skills development and maintaining adaptability are crucial strategies for attracting and retaining top talent in the Chinese Mainland.
These approaches will be essential for organisations looking to overcome recruitment and retention challenges in a dynamic and competitive landscape.
The Chinese Mainland workforce has experienced a significant improvement in salary satisfaction, with dissatisfaction rates dropping from 51% in 2023 to 26% in 2024.
This figure is notably better than the APAC average of 37%, indicating that employers in the region are making substantial progress in meeting their employees' compensation expectations.
Despite this positive trend, salary negotiations remain a complex aspect of the employment landscape. Over the past year, 53% of respondents attempted to negotiate a salary increase.
Among these, 35% successfully secured a pay raise, while 18% faced rejection. These findings highlight the ongoing efforts of employees to advocate for their financial wellbeing and the varying outcomes they encounter during negotiations.
While overall salary satisfaction has improved, it's important to note that 7% of respondents report never having received a pay rise. This persistent lack of wage growth for a segment of the workforce underscores the need for continued efforts to ensure fair and competitive compensation across all levels of employment in the Chinese Mainland.
Related: Find out what you should be paying your employees with our 2024 Salary Guide
Despite the lower prioritisation of flexible work arrangements in the Chinese Mainland compared to other APAC markets, the popularity of hybrid work models is on the rise. 42% of respondents now work in a hybrid arrangement, and 52% work in the office full-time.
When job hunting, flexibility at the workplace ranks as the sixth most important factor for job seekers, behind incentives and rewards, high salaries, clear career progression path, bonus schemes, and training and development. Some 42% of employees are now required to increase their in-office presence as compared to 12 months ago.
This data suggests that while flexibility may not be as highly valued by workers in the Chinese Mainland as in other APAC markets, there is still a significant portion of the workforce that has embraced hybrid and remote work arrangements.
It’s crucial for employers to understand the local work culture and consider offering a range of work arrangements to attract and retain talent, while also recognising that flexibility may not be the top priority for some employees in the Chinese Mainland.
Adding another layer of complexity to the equation of talent strategies is the need for employers to cater to a multigenerational workforce.
Our Talent Trends 2024 report reveals that work-life balance, competitive salaries and employee recognition are universally prioritised across all age groups. However, subsequent priorities vary significantly.
For instance, employees in their 20s highly value career progression and mental health, while those in their 50s and above place greater emphasis on management style and company values.
This diversity in preferences underscores the need for organisations to implement multifaceted engagement strategies that can accommodate the distinct priorities of each generation, from Baby Boomers to Generation Z.
In recent years, Diversity, Equity, and Inclusion (DE&I) initiatives have taken centre stage in discussions about workplace culture. However, our Talent Trends 2024 report reveals a significant expectation gap between intentions and reality.
In the Chinese Mainland, 67% of employees believe their workplace lacks inclusivity, lower than the APAC average of 71%. Moreover, 76% of respondents perceive a lack of diversity in senior leadership, similar with the APAC average of 77%.
These statistics highlight an urgent need for organisations to move beyond surface-level DE&I initiatives and foster genuinely inclusive environments. Understanding key trends can help employers address systemic issues like discrimination and bias to create workplaces where all employees feel valued.
One particularly concerning aspect of workplace discrimination highlighted in the report is ageism. In the Chinese Mainland, age discrimination topped the list of workplace discrimination, with 48% of affected employees reporting race-related incidents.
Related: A guide to inclusive hiring for People With Disabilities
Artificial Intelligence (AI) is no longer a futuristic concept but a present reality reshaping the workplace. In the Chinese Mainland, 69% of employees already use AI in their current roles, ahead of the APAC average of 41%.
More significantly, 69% of respondents in the Chinese Mainland believe AI will impact their long-term career plans, compared to 60% across APAC.
This data indicates that the Chinese Mainland is trailing behind in workplace AI adoption in the region. To keep pace with the regional and global workforce, employees must adapt to this new reality and embrace the opportunities presented by AI.
Moreover, developing clear guidelines for the ethical use of AI technology is crucial to mitigate potential risks and ensure alignment with organisational values and goals in this rapidly evolving business environment.
Related: How to identify resumes created by AI
Companies that successfully bridge these expectation gaps can gain a competitive advantage by aligning with the values and aspirations of modern employees.
To address these expectation gaps and create a workplace that attracts and retains top talent, employers and hiring managers could consider the following actionable insights and strategies:
Move beyond traditional approaches to career growth and employee satisfaction. Develop a deeper understanding of the factors influencing employee retention and acquisition, and adopt a more nuanced, personalised approach that acknowledges each employee's unique needs and aspirations.
Assess and improve your current learning and development programs to adequately prepare your team for evolving roles. Actively discuss AI and its implications for fostering a forward-thinking environment.
Foster a culture of transparent and constructive dialogue within your organisation. Encourage leaders and team members to address issues directly and bring concerns to the forefront in a mutually respectful manner.
Implement flexibility in work arrangements that balance business needs with employee preferences. Regularly assess and adjust these policies based on feedback and productivity metrics.
Move beyond surface-level DE&I initiatives to get deeper insights and address systemic issues in your organisation. Foster an environment where all employees feel valued and respected and can contribute their unique perspectives.
Provide comprehensive training and support to help employees integrate AI into their workflows effectively. Develop guidelines for the ethical use of AI technology to ensure alignment with organisational values and goals.
The expectation gap presents both challenges and opportunities for employers in the Chinese Mainland. By understanding and addressing key trends in the rapidly evolving business environment, needs and aspirations of the modern workforce, organisations can create talent strategies and workplaces that attract top talent, and foster long-term engagement and success.
Understanding global talent landscapes is crucial for developing strategies that attract and retain top professionals in the Chinese Mainland and across regions.
As you navigate this new landscape, the ability to bridge the expectation gap will be a crucial differentiator for companies seeking to thrive in an increasingly competitive global market.
Discover the latest in workforce trends in our latest Michael Page Chinese Mainland Talent Trends 2024 report: The Expectation Gap. This survey report findings are based on responses from 12,940 job seekers, employees and employers across Asia Pacific, of which 2,500 are from the Chinese Mainland.
It covers career insights that talent leaders and hiring professionals need to know to attract and retain talent. Download our report or use our interactive online tool to gain deeper, up-to-date insights into the current talent market.
Read more:How to build your personal brandWhy should someone be led by you?How to conduct a 360-degree appraisal
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