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| Gemini July Newsletter |

With Typhoon season upon us, the winds of global
uncertainty seem to be missing most of Asia. We note an
increased number of expatriate job seekers heading
towards Hong Kong and Singapore, especially within the
banking and finance sectors. Hong Kong has seen a steady
decline in expat hiring since 1997, whereas Singapore
has remained consistently high in the
rankings their hiring needs from outside the
Island nation. Hiring expatriate personnel
in Hong Kong is still relatively easy, yet employers are
still very focused on the need for Cantonese and
Mandarin skills, with English being a 'nice to
have'. Based on the talent shortages we are
still seeing in the market, we would encourage our
clients to be open-minded on hiring non-Chinese speakers
as the skills they bring in other areas could be far
more useful to your business. As you will
note from one of the articles in this month's
newsletter, Beijing is already looking at curbing the
number of foreigners working in China, although this is
generally focused on the construction and blue collar
worker level. Despite this, it can still have a negative
impact on companies in Asia expanding their operations
on the mainland if they cannot hire the people they
need. We will watch this area carefully in the coming
months. I trust you will not get blown away
by the typhoons yet to come!
Callan
Anderson Group General
Manager callan@gemini.com.hk
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| What is the true Cost of Staff
Turnover? |

As the global economy returns to a full
recovery the way that we do business has placed
new demands upon organizations that are difficult
to meet. To remain productive,
efficient, and competitive, it is critical that
organizations become talent-driven to stay in the
game. Talent needs to be handled at every level of
the organization. The cost of losing an employee
in their first year of employment is estimated at
three times their annual salary, plus the hire
cost of approximately 25% to 30%. Just multiply
that by the number of staff lost over a 12 month
period, and many companies may be shocked by the
figure they come up with. A new
employee's first 3 to 6 months is generally
considered the highest period of risk in terms of
potential turnover. Research claims that up to 47%
of staff turnover occurs within the first 6 months
of employment. The reason for this shocking
statistic is that many businesses are ill prepared
to support and nurture new employees begin
searching for a new
job: Retaining your talent
has now become a strategic
priority Why is it so
important today? Times are changing and a few key
drivers are fueling this emphasis:
Better business performance is now proven
to be linked to increased talent. Within the last
several years, a significant movement to quantify
the returns that can be expected when a leader
invests in its talent has
emerged. Talented employees add
greater value. More and more, the financial value
of our companies depends upon the quality of
talent. Competition makes it more
difficult than ever to sustain a competitive
advantage over the long term. New products and new
business models have shorter life cycles,
demanding constant innovation. Technology has
enabled greater access to information and is
forcing us to move at the speed of
business. Workforce expectations are
also changing. Employee expectations are driving
organizations to place a greater emphasis on
talent management strategies and
practices
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Beijing plans curbs on number of foreigners
working in China |
Beijing is planning to introduce its
first-ever immigration laws in an effort to
control the increasing number of foreigners coming
to China to work. With more and more
people from overseas attracted by the economic
opportunities available in China, the new law is
expected to divide potential immigrants into
different categories such as skilled and unskilled
labour, according to the government's Xinhua news
agency. In 2007, almost 2.9 million
foreigners were registered with the Ministry of
Public Security as working legally in China.
That number is rising rapidly. Last year,
there were 152,000 foreign resident workers in
Shanghai alone, a 14 per cent increase on 2008.
The People's Republic of China has
never before limited immigration, other than for
health reasons, including a ban that was recently
lifted on HIV positive immigrants. However,
China's buoyant economy has resulted in a sharp
rise in the number of illegal immigrants from
bordering countries like Vietnam and Laos since
the onset of the global financial
crisis. Vietnamese are especially
valued by the factory owners of southern China,
because of their willingness to work for wages of
450 yuan (£45) a month, less than half of what a
local would get, and the ease with which they can
assimilate into Chinese society.
Illegal immigrants from impoverished
North Korea can also be found working on farms and
building sites in northeast China, and there is
increasing demand among the new urban middle class
for Filipino nannies, who are prized for their
ability to speak English with their
charges. China was once a huge source
of economic migrants to other countries. Now,
the rise in the number of foreigners coming to
work in the country is a reflection of how quickly
it is moving up the global economic
chain. "Judging from the history of western
developed countries, inward migration flows often
reveal the appeal of a nation," said Zhang Jijiao,
a migration expert with the Chinese Academy of
Social Sciences. While there is no
timetable as yet for the introduction of the new
immigration law, foreign residents will be
included in China's next national census in
November for the first time in an effort to
monitor their numbers. Beijing plans curbs on
number of foreigners working in
China Beijing is planning to
introduce its first-ever immigration laws in an
effort to control the increasing number of
foreigners coming to China to work.
By David Eimer in
Beijing
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| Gemini Monthly Salary
Survey |
 Every month Gemini compile
the most up-to-date and accurate salary trend
statistics on the local Hong Kong and
regional job market.
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