Survey: Firms to extend hiring, increase salaries
LOCAL companies will continue to expand their hiring activities and raise employee salaries this year, though soaring labor costs are proving a dampener for employers, a survey revealed yesterday.
The survey, covering nearly 200 international enterprises in Shanghai, found that employers would offer an 11.6 percent salary increase on average in 2011, or 2 to 3 percentage higher than that of last year.
And the businesses surveyed reported a strong desire to expand, with more than 40 percent employers raising the number of their hiring posts in the first half of this year and only 3.2 percent cutting back on hiring.
Zhang Xin, a consultant with the China International Intellectech Corp, which conducted the survey, told Shanghai Daily yesterday that the salary increase so far this year is bigger than previous years and the local job market is also promising.
“But the big, even unusual, salary hike and active hiring activities will likely result in soaring labor costs,” said Zhang.
According to the survey, more than 35 percent employers said they are already feeling the pressures brought by rising labor costs, especially labor-intensive and research enterprises.
Labor-intensive manufacturers, which hire a large number of migrant workers, will see their budget balloon from next month, after migrant workers are offered the same social insurance benefits as local employees and the money employers pay into the workers’ insurance pool will double.
As for research businesses, they are finding it hard to hunt suitable professionals, and so they usually have to keep increasing wages in order to attract prospective staff.
Zhang advised employers to provide better welfare benefits to staff, such as more training opportunities and a variety of insurances, which will make them more attractive and more competitive, because all employers now offer higher wages to keep and attract good employees.