Contact: April Li
Hudson
(8621) 6375 8922
[email protected]
For Immediate Release
Buoyant Economy Means More Hiring, But Skill Shortages Lead to Longer Hours,
Increased Employee Burnout
Comprehensive Hudson Report Released for Quarter Two 2006
SHANGHAI – 13 APRIL 2006 – Continued hiring increases means good news for China's workforce,
while increased optimism continues to fuel increasing economic growth. Planned headcount increases
are at 64%, a slight decrease from 67% in the last quarter. This is still the highest figure for employment
expectations for all the Asian markets surveyed.
Hudson, one of the world’s leading professional staffing, outsourcing and talent management providers
and a division of Hudson Highland Group, Inc. (NASDAQ: HHGP), today released findings of its
comprehensive quarterly Hudson Report for Asia. With a reputation as a key socio-economic indicator
in the current marketplace since its Asia launch in December 1998, the survey has been built on the
premise that employers’ expectations of an increase or decrease in staffing levels represent a
significant indication of their optimism in the growth of their organisation and their industry as a whole.
The Hudson Report represents the expectations of over 2,400 key employment decision makers from
multinational organisations of all sizes in all major industry sectors, with 705 of these companies based
in China.
The latest employment trends
Permanent employment expectations continue a positive trend from the last quarter, with 64% of
companies planning to increase headcount, pointing to continued strong growth in the employment
market. A further 35% of professionals surveyed anticipate that employment will remain steady, while
only 1% forecast a decline in headcount.
Gary Lazzarotto, CEO, Hudson Asia, comments, “The continuing strength of the economy means that
employment expectations are still high in all the sectors surveyed. But there is a growing shortage of
candidates with the right skill sets. The result is longer working hours and an increase in employee
burnout.”
Anticipated growth in hiring continues to be strong in the Construction/Property sector, which has the
highest increase in permanent employment expectations, with 93% planning to hire.
There has also been a substantial rise in expectations in the Media/PR/Advertising sector with 64%
forecasting increased headcount. Healthcare companies are still very optimistic, with 74% of
respondents expecting to increase recruitment.
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In the Banking sector, 73% of respondents plan to hire more staff. There is still a need for specialists in
areas required by WTO rules.
Source: The Hudson Report – China, Q2 2006
Permanent employment expectations over time
The 64% of respondents who say they will increase headcount this quarter shows that employment
expectations remain close to their highest level for the last four years. There has been a significant
increase in expectations since the same quarter last year, when 59% forecast increased hiring.
The increased optimism about the job market has been particularly noticeable over the last four years.
Between Q4 2001 and Q2 this year, the number of employers forecasting a headcount increase has
more than doubled, from 22% to 64%.
Source: The Hudson Report – China, Q2 2006
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Room 1602, Central Plaza
No. 227, Huangpi Bei Road
Shanghai, China, 200003
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Booming employment market results in longer working hours
With the buoyant economy a large number of staff are still working long hours. Across all sectors, 42%
of respondents report that they work more than 50 hours per week. Staff in Media/PR/Advertising firms
report the longest working hours with 68% working more than 50 hours per week.
Source: The Hudson Report – China, Q2 2006
Most employees working longer hours than two years ago
Across the sectors surveyed, 42% of respondents say they are working slightly longer hours than they
were two years ago, while a further 13% say their hours are significantly longer. The increase in working
hours is much greater in Healthcare & Life Sciences than in any other sector with 40% of respondents
working slightly longer hours and a substantial 29% have seen their hours increase significantly.
Source: The Hudson Report – China, Q2 2006
Employee burnout becoming more widespread
One third (33%) of companies in all sectors report increased levels of burnout among their employees.
The greatest increase is Healthcare & Life Sciences, where 57% of companies report higher levels of
burnout, a jump from 27% a year ago. There has also been a significant rise in the Banking sector,
where 43% say they are seeing higher levels of burnout.
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Room 1602, Central Plaza
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Shanghai, China, 200003
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Source: The Hudson Report – China, Q2 2006
Increasing workloads the main factor contributing to employee burnout
A rapid increase in the volume of work is seen as the principal reason for the rise in employee burnout
with 61% of all companies giving this as a reason. Difficulties in recruiting staff are also seen as a
major cause of burnout, with 33% raising this issue.
Source: The Hudson Report – China, Q2 2006
Hiring more staff is seen as the main response to employee burnout
Overall, hiring more staff is seen as the single most important means of combating employee burnout,
with 49% of respondents stating that this as a key measure. Forty-three percent of companies say that
reviewing job descriptions and delivery expectations is important, while 30% emphasise the need to
provide employees with the necessary skills.
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www.hudson.com
Room 1602, Central Plaza
No. 227, Huangpi Bei Road
Shanghai, China, 200003
t 8621 6375 8922
f 8621 6375 8211
Hudson
Hudson delivers specialised professional staffing, outsourcing, and talent management solutions
worldwide. From single placements to total solutions, the firm helps clients achieve greater
organisational performance by attracting, selecting, developing and engaging the best and brightest
people for their businesses.
Hudson is a division of Hudson Highland Group, Inc. one of the world’s leading professional staffing,
retained executive search and talent management providers. The company employs more than 3,800
professionals serving clients and candidates in more than 24 countries through its Hudson and Highland
Partners businesses. More information is available at www.hudson.com.
Special Note: Safe Harbour Statement Under the Private Securities Litigation Reform Act of 1995: Except for
historical information contained herein, the statements made in this release constitute forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of
1934. Such forward-looking statements involve certain risks and uncertainties, including statements regarding each
company's strategic direction, prospects and future results. Certain factors, including factors outside either
company’s control, may cause actual results to differ materially from those contained in the forward- looking
statements, including economic and other conditions in the markets in which the companies operate, risks
associated with acquisitions, competition, seasonality and the other risks discussed in our filings made with the
Securities and Exchange Commission, which discussions are incorporated in this release by reference.
5
www.hudson.com
Room 1602, Central Plaza
No. 227, Huangpi Bei Road
Shanghai, China, 200003
t 8621 6375 8922
f 8621 6375 8211