Richard Broadhurst
Manager, sales and marketing recruitment
Ambition Careers
Public relations agencies have been actively increasing headcount for the last 24 months and will continue to do so throughout 2006, assuming oil prices and avian flu do not impact Hong Kong and the region's economies adversely. However, a lack of bi- and tri-lingual account management talent continues to plague the industry. The pipeline of young talent advancing through the ranks is extremely weak due to the lack of interest in PR as a profession and the absence of graduate training programmes within the sector. If this trend is to be reversed, a serious adjustment needs to be made and, even if this does happen, the knock-on effect would only be experienced five years or more down the track. The advertising sector has rebounded equally well from the depths of 2003, when Sars was at its most disruptive. Although business has been more positive, industry leaders point to an erosion of advertising agency margins which is presenting challenges. Hong Kong's ad industry is populated by numerous overseas professionals, but these skills come at a premium and puts pressure on agencies' employment costs. Within the local community, some of the higher-calibre Chinese-speaking professionals are defecting to a booming mainland market. Like the PR industry, a concerted effort needs to be made to attract young and creative Chinese speaking professionals. Staff turnover within agencies is also a concern. Greater confidence in the economy means advertising and PR professionals are less risk averse and more willing to move, especially if an offer of a higher package is on the table. Agencies will have to counter this by paying more competitively to their A and B performers. C (or average) performers those who will leave through natural attrition can be replaced with stronger calibre hires. The salaries on offer for job movers within agency remains an alarm bell to organisations. Average salary hikes for those switching agency are in the 10 to 15 per cent range, with exceptional uplifts of 20 per cent and more being presented to those with an extremely rare skills set, notably experienced, tri-lingual agency professionals with regional experience.
Erika Morton Country manager, Hong Kong Hudson
Singapore: There are not expected to be large increases in salaries across the board in this industry during 2006. However, good people with experience on the right accounts and agencies can still command a premium to move into a new role. The industry is facing a candidate-short market,but employers do not want to engage in a price war and thus drive up the cost of talent. The industry average for pay increases for new talent in 2006 will be around the six to 10 per cent level. The one role that is commanding larger pay increases is for planners in agencies. Planners have to be imported; consequently they can command a premium to relocate. Shanghai: Salaries are stabilising at present, as clients spend is becoming tighter. Employers are hiring less, but focusing on hiring better talent. However, in China, the latest Hudson report shows that if a candidate is promoted or changes jobs, they can expect salary increases of between 11 to 20 per cent. The positions that will command the highest salary increase are where candidates have insights into consumer behaviour, particularly in the China youth market. There is also an ongoing desperate shortage of creatives in the advertising industry. In PR, there is a demand for account handlers who have worked in the technology and healthcare industry. A trend that is driving down salaries at the senior level is that expatriates are being replaced with more local hires or Chinese employees from Singapore and Hong Kong. Hong Kong: In general,advertising salaries have risen by about 10 per cent in the past 12 months. Individuals who are able to generate new business or manage key accounts are able to command higher increases. Client servicing people tend to move every one or two years in search of better working conditions, better titles and higher pay. They can often earn 10 per cent or more by changing jobs. However, some agency people may believe that the ideal job for themselves is to eventually get a marketing communications job on the client side, which although it may yield a lower salary, can offer them better long term career development prospects and a healthier work/life balance.
Duncan Cunningham Director, China Aquent
The Aquent 2005/2006 salary monitor for Greater China present a unanimous forecast of over 90 per cent revenue growth for all companies surveyed, 80 per cent increase in permanent hiring expectations, 40 per cent increase in temporary hiring expectations and significant salary increases for all industries. Encouragingly, 85 per cent of companies surveyed are investing in local training and development of talent, reinforcing a commitment to localisation and further balancing the difference between local and international employees. One big warning is the sheer size and speed of development in China still presents a problem for companies to attract and retain staff, with most companies experiencing a 10 to 20 per cent turnover rate. This is likely to stimulate personal career ownership in the future and further develop a more flexible, freelance based workforce. With China's accession to the WTO round the corner, the importance of sustaining and growing a stable workforce will become even more critical. Moving into 2006, talent acquisition and retention is going to become increasingly challenging. In all of the first tier cities in China, the pool of qualified talent has effectively dried up, Hong Kong has been depleted of talent and struggles to combat the brain drain of talent to China at the same time as keeping up with the demands of local market. This is spurring companies to look further a field in Asia and other international markets. As many advertising, media and PR firms look towards growing and developing their local client bases in China, the additional quest for talent in second tier cities like Chengdu, Xiamen and Dalian becomes Herculean. Organisations need to move away from adopting a talent acquisition policy based on remuneration and shift toward taking a longer term, pragmatic approach to recruiting and retaining talent. It is simply not enough anymore to offer a prospective candidate a salary increase. Those organisations that are properly investing in training and development and offering tangible careers for each individual are the ones which are building strong sustainable business in China today.
Public relations agencies have been actively increasing headcount for the last 24 months and will continue to do so throughout 2006, assuming oil prices and avian flu do not impact Hong Kong and the region's economies adversely. However, a lack of bi- and tri-lingual account management talent continues to plague the industry. The pipeline of young talent advancing through the ranks is extremely weak due to the lack of interest in PR as a profession and the absence of graduate training programmes within the sector. If this trend is to be reversed, a serious adjustment needs to be made and, even if this does happen, the knock-on effect would only be experienced five years or more down the track. The advertising sector has rebounded equally well from the depths of 2003, when Sars was at its most disruptive. Although business has been more positive, industry leaders point to an erosion of advertising agency margins which is presenting challenges. Hong Kong's ad industry is populated by numerous overseas professionals, but these skills come at a premium and puts pressure on agencies' employment costs. Within the local community, some of the higher-calibre Chinese-speaking professionals are defecting to a booming mainland market. Like the PR industry, a concerted effort needs to be made to attract young and creative Chinese speaking professionals. Staff turnover within agencies is also a concern. Greater confidence in the economy means advertising and PR professionals are less risk averse and more willing to move, especially if an offer of a higher package is on the table. Agencies will have to counter this by paying more competitively to their A and B performers. C (or average) performers those who will leave through natural attrition can be replaced with stronger calibre hires. The salaries on offer for job movers within agency remains an alarm bell to organisations. Average salary hikes for those switching agency are in the 10 to 15 per cent range, with exceptional uplifts of 20 per cent and more being presented to those with an extremely rare skills set, notably experienced, tri-lingual agency professionals with regional experience.
Erika Morton Country manager, Hong Kong Hudson
Singapore: There are not expected to be large increases in salaries across the board in this industry during 2006. However, good people with experience on the right accounts and agencies can still command a premium to move into a new role. The industry is facing a candidate-short market,but employers do not want to engage in a price war and thus drive up the cost of talent. The industry average for pay increases for new talent in 2006 will be around the six to 10 per cent level. The one role that is commanding larger pay increases is for planners in agencies. Planners have to be imported; consequently they can command a premium to relocate. Shanghai: Salaries are stabilising at present, as clients spend is becoming tighter. Employers are hiring less, but focusing on hiring better talent. However, in China, the latest Hudson report shows that if a candidate is promoted or changes jobs, they can expect salary increases of between 11 to 20 per cent. The positions that will command the highest salary increase are where candidates have insights into consumer behaviour, particularly in the China youth market. There is also an ongoing desperate shortage of creatives in the advertising industry. In PR, there is a demand for account handlers who have worked in the technology and healthcare industry. A trend that is driving down salaries at the senior level is that expatriates are being replaced with more local hires or Chinese employees from Singapore and Hong Kong. Hong Kong: In general,advertising salaries have risen by about 10 per cent in the past 12 months. Individuals who are able to generate new business or manage key accounts are able to command higher increases. Client servicing people tend to move every one or two years in search of better working conditions, better titles and higher pay. They can often earn 10 per cent or more by changing jobs. However, some agency people may believe that the ideal job for themselves is to eventually get a marketing communications job on the client side, which although it may yield a lower salary, can offer them better long term career development prospects and a healthier work/life balance.
Duncan Cunningham Director, China Aquent
The Aquent 2005/2006 salary monitor for Greater China present a unanimous forecast of over 90 per cent revenue growth for all companies surveyed, 80 per cent increase in permanent hiring expectations, 40 per cent increase in temporary hiring expectations and significant salary increases for all industries. Encouragingly, 85 per cent of companies surveyed are investing in local training and development of talent, reinforcing a commitment to localisation and further balancing the difference between local and international employees. One big warning is the sheer size and speed of development in China still presents a problem for companies to attract and retain staff, with most companies experiencing a 10 to 20 per cent turnover rate. This is likely to stimulate personal career ownership in the future and further develop a more flexible, freelance based workforce. With China's accession to the WTO round the corner, the importance of sustaining and growing a stable workforce will become even more critical. Moving into 2006, talent acquisition and retention is going to become increasingly challenging. In all of the first tier cities in China, the pool of qualified talent has effectively dried up, Hong Kong has been depleted of talent and struggles to combat the brain drain of talent to China at the same time as keeping up with the demands of local market. This is spurring companies to look further a field in Asia and other international markets. As many advertising, media and PR firms look towards growing and developing their local client bases in China, the additional quest for talent in second tier cities like Chengdu, Xiamen and Dalian becomes Herculean. Organisations need to move away from adopting a talent acquisition policy based on remuneration and shift toward taking a longer term, pragmatic approach to recruiting and retaining talent. It is simply not enough anymore to offer a prospective candidate a salary increase. Those organisations that are properly investing in training and development and offering tangible careers for each individual are the ones which are building strong sustainable business in China today.
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