3 Strategic Benefits of Cloud Recruiting Software

by Annabella Poon

The global war for Talent is more intense than ever before.  For Human Resources professionals today, the challenge of attracting, identifying and engaging Talent is increasingly difficult. Organizations are stepping up their recruiting game and leveraging on e-recruitment tools to gain a competitive edge.

Cloud-based recruiting software has increasingly become the go-to deployment model of organizations that need to deploy a system quickly and with minimal hassle. With Cloud solutions, there is no need to install or manage the application on local servers or computers, thus accelerating time to value for any organization looking to invest in such applications. According to Gartner, it is predicted that by 2015, end-user spending on Cloud services will be more than $180 billion. Remarkably, 2014 is also the first year that the majority of workloads will be on the Cloud, with 51% operating in the Cloud versus 49% in the traditional IT space.

Besides its fuss-free, quick-to-implement approach, most Cloud recruiting software boasts a multitude of useful functionality that strengthens the organization’s Talent attraction and recruitment strategy. If you’re straddling the line between investing in one and rejecting the ‘Cloud’, here’s a quick list of the top 3 strategic advantages of Cloud recruiting software.

Move from Admin to Automation

Your regular hiring process means that you run into boring administrative tasks hindering the recruiting process from moving forward. Recruiters are trapped organizing candidate data, expending precious time posting jobs to multiple job boards, collecting and sorting out applications. Recruiting is a race and in the time you take to select your candidate and respond, you risk losing a potential candidate to your competitor.

Applicant tracking systems (ATS) eliminate administrative duties, building an organized and easily accessible candidate database for you. Added search functionalities in the system allows you to filter according to criteria and match candidates to the role needed. Recruiting software reduce the risk of recruitment mishaps like losing a key resume, saving you time, making it easier for you, and a better candidate experience for your applicants.

Frequent Updates = Ahead of the Game

Cloud-based, SaaS solutions are built to ensure that that users are running on the latest version of the software. Updates containing new features and enhancements are deployed multiple times per year, so users are assured that they are always up-to-date with the latest e-recruitment tools.

For example, every 8-10 weeks, HRBoss release new features or software updates in order to help users optimize their hiring process. Our clients are also given the option to ‘turn on’ the update when the new release is fully ready.

Cost-effectiveness

With Cloud applications, you won’t need an IT team or on-site server. Similar to the log-in process for Facebook, Google and LinkedIn online, recruiting in the Cloud means that all you need is just a computer (or mobile device) and internet granting you all hour access the recruiting system.

Cloud software also distinguishes itself from the traditional ‘licensed’ software as they typically work on a subscription model (Subscription-as-a-Service or SaaS) based on the number of users. This translates into cost-savings for organizations as the variable pricing model means that they only pay for what they need. Cloud- based recruiting software allow businesses to scale and meet the changing needs without having to worry about investing in any extra hardware if they wish to increase the number of users in future.

Indeed, with these benefits it’s no surprise why many businesses are already depending on Cloud technology to dial-up their talent acquisition strategy. A perfect combination of agility, scalability and cost-effectiveness, embracing a recruitment software in the Cloud could be the difference between making an average and a stellar hire for your organization.

Ready to take control of your recruiting process and increase your ROI with Asia’s #1 Cloud recruiting software? Speak to us, we’d love to show you how.

The Recruiting Trends Forecast: Asia, 2014

Article by Annabella Poon

The top 6 recruiting trends for Asia in 2014. In no particular order, here they come:

1.      Use of Big Data Metrics for Recruiting (Talent Analytics)

Brad Pitt stars in Moneyball, the film about how data revolutionized sports recruiting and transformed a team of underestimated baseball players into superstar athletes. In the so-called ‘War for Talent’, those who make data-supported decisions instead of relying on gut-feel will take the lead in 2014. We will see a tangible shift away from recruiting decisions based on  ‘intuition’, with the smartest recruiters looking at less obvious but more accurate indicators of a candidate’s true value.

For instance, US predictive analytics company Evolv discovered that applicants who fill out online job applications with third-party browsers like Firefox or Chrome perform better and change jobs less frequently than people who use Internet Explorer. Apparently, the significance of a candidate independently choosing to download a browser that has not been pre-installed on their computer is indicative of a higher IQ and sharper sense of initiative. This is just one example of how analysis of candidate behaviors can help recruiters make the right hires- and move away from guesswork towards data-driven decision making.

Inject some Moneyball success into your own recruiting technique by employing the right tools with real-time & predictive metrics for 2014.

2.      Compliance Matters

With the availability of Big Data analytics, there are rising concerns about how personal data is being used and managed by organisations across Asia. Recruitment processes need to be evaluated to ensure that basic data security policies are implemented and that personal data used for recruitment is not abused. Following the introduction of data protection regulations in Japan and Singapore, data privacy legislations are expected to be picked up by the rest of Asia in 2014.

According to Bernie Schiemer, CEO & founder of HRBoss, “There’s a lot of buzz in Singapore right now about the recently announced data privacy act and, controversially, 10 recruitment firms have already had their licenses revoked for putting non-compliant adverts on the internet…there are also a lot of organisations still using spreadsheets to manage their data. They don’t realise that they potentially can be held criminally liable if this data is taken from them and passed on to someone else without the candidate's knowledge. That data is put into a laptop and walks out of the door with consultants every night. If you are not compliant you risk having your licence revoked and losing your business- this makes the issue a top priority for recruiting and staffing industry leaders”.

Schiemer emphasises the need for recruiting and staffing firms to systemise and put infrastructure in place. “Without a doubt, one of the most important aspects of running a successful recruiting firm is to get your infrastructure right from day one. Having data on a secure email server, having candidate and contact data on a system that you can IP restrict- these are the basics. I would urge recruitment agencies to consider a solution that safeguards your data moving forward and to do so now. This is not just a Singapore phenomenon- Japan implemented a similar act in 2005 and it's had a massive impact. I predict that with the 2015 open borders policy coming in across Southeast Asia, a rash of other countries will look to adopt the same law”.

3.      Social Media

If you want to hire Talent, you have to be where Talent is. The generation of Millennials are tech-savvy and seeking job opportunities online. This trend has been simmering away in Asia for the past few years and 2014 will see this continue. Social media profiles are increasingly viewed as the new resumes in Asia andprofessional social networks are ranked the second top source for finding quality hires in Southeast Asia. Unlike the US and UK where LinkedIn is dominant, sites like Renren (similar to Facebook), Sina Weibo (akin to Twitter) and Youku (like Youtube) are the preferred social recruiting space for accessing the Talent market in China.

Japan is also in on this trend. William Brooks, Country Manager of HRBoss Japan, shared, “Using social media to recruit is definitely a growing trend in Japan- for both agency recruiters but corporates too, as well as a way to reduce agency dependency. Culturally, Japanese are not job-hoppers and are averse to changing jobs often. Social media is one clever way to reach passive candidates here in Japan and this something that the best recruiters are leveraging on with great results”.

4.      Mobile Recruiting

Still think that mobile recruiting is just hype? Think again. In 2009, there were 86.2 million smartphone users in APAC but in 2013, the number has grown to an astounding 738.2 million. The mobile recrutiing trend shows no sign of abating- rather, it will gain traction aross Asia throughout 2014. In June 2013,Google altered its mobile search algorithm ensuring that any web page that is not mobile-optimised will be demoted. Your job listing pages risk getting lower rankings and could even be removed from search results completely. The message couldn’t be clearer : to expand your current Talent pool in 2014, your website has to be mobile optimised and must also allow instant job application via the mobile platform. Integrate your mobile recruiting website with LinkedIn, Facebook and other social sites to enable candidates to apply to jobs in single-clicks. By anticipating the needs and behaviours of today’s candidates, you can make the application process easy and attract fresh Talent.

5.      The Right Candidate Experience

In line with the rising trend of social spaces and mobile platforms for recruitment, recruiters in Asia are also beginning to focus on providing a positive candidate experience to transform opportunities into conversions in 2014. Recruiters should formulate targeted communication strategies which are marketed and personalised, building relationships for future Talent pipelines. A weak candidate experience is a fast route to damaging a recruiter’s reputation so it’s important that all candidate contact touch-points begin and end with a positive experience.

6.      Out-sourcing

Recruiters are busy people- so how do you go about practising all the above trends with limited time? For in-house corporate recruiting teams, out-sourcing hiring to recruiting firms will be one trend that we will see coming back  throughout 2014. Out-sourcing alleviates a company from recruiting headaches such as lack of resources, time and operational costs, enabling them to focus on core business practices and on generating revenue. This translates into not just cost and time savings, plus the quality of hire can also be improved as recruiting professionals are more experienced and plugged into the local talent market.

Steven Yeong, Chief Talent Evangelist of Singapore-based recruitment consultancy Hof Consulting predicts that we’ll see companies in Asia adopt a hybrid strategic approach for recruiting in 2014. “4 years ago, organisations focused only on in-house recruiting but this year and next, I see a trend that organisations are adopting a more hybrid approach. Many junior level recruiters are unable to recruit senior level professionals so companies turn to recruitment firms. There is always a tussle between in-house recruitment and outsourcing to agencies. By hiring a senior full-time recruitment consultant, companies might be paying high fees but they are assured that they are not losing Talent to competitors. Organisations also have more leverage in terms of salary negotiation.”

Fresh Graduates - The Answer to Singapore's Fair Consideration Framework?

Article by Manisha Dhalani

The latest Manpower Employment Outlook Survey has estimated that nearly 23% of companies in Singapore are looking to increase their hiring exercises next month. While this is healthy considering the rise from previous quarter, companies are worried about the possible shortage of Talent due to the tightening of foreign worker policies here in Singapore.

There is, however, a ray of hope that could fill up the gaps as a result of these restrictions.

Enter: Fresh graduates.

Graduates with relevant qualifications are now highly sought after to meet the demands of the increasing economy in Singapore. But how do we ensure that fresh graduates from local universities and polytechnics fit the bill?

Asia has no shortage of hiring managers and recruiters who can help facilitate the hiring. Vigorous screening processes, interviews and entrance requirements undoubtedly play their part in allowing companies to pick out the cream of the crop.

However, hiring fresh graduates has its pros and cons. Here’s a summary of the good that you can get out of placing them, things you need to look out for and the disadvantages that you might want to consider:
 

Pros 

Less expectation
Most fresh graduates won’t ask for an exorbitant starting pay. Bear in mind that this does not imply that graduates aren’t aware of the current market rate, so be strategic before putting forward your offer. If the qualifications and personality sounds like a perfect match for your company, don’t hesitate to hire what could possibly be a future star employee for your organisation.

Eagerness to learn
For my first job, I insisted on being tasked with roles and responsibilities that I had never handled before. I wanted to learn as much as I could. This is also very true for the other graduates like myself. Encourage them to continuously explore tasks out of their comfort zone –they might excel at it and benefit your company in turn. If they stumble, give them the right guidance to bring out the best in them.

Ability to be moulded
As fresh graduates are eager to learn, use this opportunity to mould them into valuable assets for your firm. Give them the opportunity to brainstorm, manage people and projects and find out about their career aspirations. Tell them about your company and the expectations, if their mind-set aligns with your organisation’s culture, fine-tune their skills set and watch them perform outstandingly and provide off-the-chart results.

New perspective
With the constantly evolving nature of business today, we are always looking to explore new innovations. Gain new perspectives on the latest technology, market trends, user experiences and relevant tools from graduates who also form part of the current target audience and rising end-user market.

Cons

Lack of experience
As resumes of fresh graduates may not be seem promising due to their lack of experience, hiring managers may have to conduct lengthy interviews or admission tests to establish the skill sets of fresh graduates. Luckily, with more creative positions opening up thanks to social media, we can also evaluate a candidate by their level of involvement in contemporary communication platforms that could help set them apart from the other job applicants.

Lack of critical thinking
Having just entered the job market, it may take a while for new hires to get better at assessing and negotiating situations. They may be unaware of established communication practices within your corporate culture and may not have polished problem-solving skills. This, in no way, means that they aren’t able to do so – a little bit of on-boarding programmes, training and development go a long way.

New age preferences
As Singapore companies can expect more contract staff hiring, the advent of a new generation brings with it a need for a fresher approach to the conventional workplace practices. New intakes may expect flexible working hours and prefer jobs that fit with their personal lifestyle, i.e. those that provide a work-life balance. Make use of analytics to help you identify the preferences of your new batch of hires.

With the Ministry of Manpower’s (MOM) move to push the Fair Consideration Framework (FCF) initiative and the national jobs bank launching in August, more graduates will be seen as the solution to the tightening of foreign worker policies. In order to prepare the future workforce, organisations can consider partnering up with colleges and universities to alert undergraduates of the missing pieces of the hiring puzzle so they can figure out the must-haves and gather the right experience before graduating.
 

Singapore has highest C-level salaries in Asia Pacific

by Asia One Business

SINGAPORE – Salaries for senior management executives are up to 14 per cent higher than those in Hong Kong, a study has found. Salaries for top management executives are also 34 per cent higher in Singapore than in Hong Kong.

Not only is Singapore paying senior executives more than Hong Kong firms are, the Towers Watson’s 2013/2014 Global 50 Remuneration Planning Report also states that C-suite pay levels exceed those of other countries in the Asia Pacific region.

“Growth in private banking in Singapore and its development – or regeneration – as a regional hub for international companies has drawn a lot of high-level talent to the city and that’s reflected in the C-suite compensation,” said Sambhav Rakyan, Data Services practice leader, Asia Pacific at Towers Watson.

Towers Watson forecasts average salary increases in both centres to be 4.5 per cent this year.

The report revealed that Asia Pacific’s developed economies have the highest pay levels – Australia’s entry pay level is eight to 11 times more than China, the Philippines and Indonesia, and 15 times that of Vietnam. Australia also pays discernibly higher than Japan, Singapore and Hong Kong through to middle management, after which the gap narrows.

Pay levels in China lags that of Hong Kong across most of the job categories, but at senior management level – there is convergence. At top management, remuneration is 11 per cent more in China (US$215k) than in Hong Kong (US$193k), according to the Towers Watson report.

Salaries for senior management have risen in China over the past few years because of a shortage of talent at this management level. It means that top-level pay in China is comparable to that elsewhere in the world.

Opportunities in India

More eye-catching, however, is the comparison between China and India. Striking differences exist between the region’s two biggest labour forces. Based on the survey findings, labour costs for senior executives and top management is lower in India. At senior level, executive pay in China is more than twice that in India (US$94k).

For international companies, the sharp fall in the value of the Indian rupee against the US dollar in 2013 contributed to reducing labour costs in India. It contrasts with China where the renminbi appreciated against the dollar. The rupee is down around 12 per cent on the year, while the renminbi has risen almost 3 per cent.

“The large influx of Indian returnees following the global financial crisis helped India to get more CEO talent,” said Clare Muhiudeen, Managing Director, Talent & Rewards, Asia Pacific, Towers Watson. “But with higher rates of inflation in India than in China, that gap will narrow. We expect average salary increases in India to be higher than China’s 8.5 per cent. That said, India clearly has more affordable labour than China and that’s the way it’ll be for the foreseeable future.”

Other fundmentals have a bearing too. China’s labour force is expected to fall for the second year running to 795 million in 2014 from 798 million in 2013, while unemployment is forecast to be 6.1 per cent (6.4 per cent in 2013). In India, however, while unemployment is expected to fall to 8.4 per cent from 8.8 per cent in 2013, it remains well above that of China. Meanwhile its work force is set to reach 492 million this year, up from 487 million in 2013.

Better opportunities for Singapore professionals in 2014!

by Business Asia One

SINGAPORE – Companies across various industries are expected to increase training and development opportunities and chart clearer career paths for local professionals in 2014.

A new report done by recruitment consultancy Robert Walters also said that professional candidates who switch jobs can expect average salary increments of 15-20 per cent this year.

The Fair Consideration Framework, which will be implemented from August, will drive salaries of local employees up as firms compete to attract and keep top local talent, the report said.

While the emphasis on domestic hiring is expected to push salaries up across the board, managers may struggle to meet niche skill requirements.

Companies will have to be prepared to take on employees with transferable skills and develop them internally, the survey report said.

Toby Fowlston, Managing Director of Robert Walters Singapore, said that firms are investing more in existing employees with transferable skill sets as the competition for top Singapore talent has increased.

“This allows for more promotion opportunities from within and rewards employees with an expanded scope of responsibilities,” he said.

Professionals can expect to reap rewards in terms of career progression in 2014, he added.

Hong Kong may benefit from stricter Singapore policy on hiring of foreigners

by Phila Siu

Lion City seeks to favour locals in hirings under its ‘Fair Consideration Framework’; foreign professionals may now opt for Hong Kong.

Hong Kong and Shanghai may have lost out to Singapore in the hunt for foreign talent over the years, but manpower experts believe a reversal is looming as the Lion City tightens the rules on the hiring of staff from overseas.

Singapore’s Ministry of Manpower announced last September that under its new “Fair Consideration Framework”, companies would need to consider locals before hiring from abroad.

“These changes are part of a broader effort to ensure that good jobs continue to be created for Singaporeans,” said Tan Chuan-jin, acting minister for manpower at the time.

Starting from the first quarter of this year, companies with a disproportionately low concentration of Singaporeans at professional, managerial and executive level compared with other companies may be chosen for additional scrutiny.

Nick Marsh, managing director of recruitment firm Harvey Nash Asia Pacific, said over the years international companies and talented professionals had left Hong Kong and Shanghai for Singapore, mainly because of air pollution, limited school places and high rents.

“Lots of foreigners cannot get places in schools in Hong Kong. And they can get that in Singapore,” Marsh said. “The regular conversations you have with foreigners in Hong Kong is, ‘I have just had my rent hiked … 50 per cent’. It’s either they cannot afford to live here or this is so stressful. ‘I can go to Singapore and get an apartment for half the price’.”

Marsh said another factor was that the Singaporean government gives several years of tax breaks for companies setting up offices in the country.

Five years ago, firms in Hong Kong were offering full expat pay packages, but now at least half of foreigners are offered a “local plus” package, Marsh said.

Full expat packages include full housing and schooling allowances, together with flights back home twice a year. “Local plus” packages mean half the housing allowance and often only one flight home.

Full expat packages in Hong Kong are still slightly more attractive than in Singapore. But many people prefer Singapore because of Hong Kong’s air pollution, high rents and the difficulty in getting children into schools.

To give an example, a chief financial officer in Hong Kong earns a basic salary of about HK$2 million plus a HK$90,000-a-month housing allowance. In Singapore, the basic salary is HK$1.5 million plus a HK$60,000 housing allowance.

Marsh believes that Singapore’s curb on foreign talent could mean that international firms and expats will opt for Hong Kong and Shanghai.

Pauline Chung Hei-ching, president of the Hong Kong People Management Association, said companies may move away from Singapore if the policies made it difficult to hire the international talent they need.

---

Locals First

Key points of Fair Consideration Framework

• From January, qualifying salary for a work pass for a foreign professional up from S$3,000 (HK$18,350) a month to S$3,300

• Firms will be subject to additional government scrutiny if they have disproportionately low concentration of Singaporeans at senior levels, and receive repeated complaints of nationality-based or other discriminatory HR practices

• From August, companies with more than 25 employees must advertise vacancies on a new jobs bank to be run by the government. Ads must be open to Singaporeans and run for at least 14 calendar days.

Asia Market Update

Attribute to Jacob Hansen, Asia Legal Blog

As the global economy continues to feel the effects of the 2008 recession, it faces both short and long-term challenges. But new and exciting opportunities are being created as the world’s markets walk the road to recovery. Southeast Asia has become an area of growth, attracting many firms and attorneys wishing to expand their portfolios abroad. The legal market in Asia is continuing to grow at record speed, changing the landscape for expatriate lawyers with an increase and broadening of opportunities for associates, partners and firms, a rapid and substantial deal flow.

According to the American Lawyer, Am Law 100 law firms had mild gains in 2012. They reported that gross revenue for Am Law 100 law firms was up 3.4 percent, average revenue per lawyer was up 2.6 percent, and average profits per partner were up 4.2 percent. Notably, this growth was uneven and the more successful firms tended to have a strong international presence, and well as a diverse set of practice areas.

Asia is a strong area of international growth and this extends to the legal sector. The Asian legal market is on pace to double in size by 2017, according to Asia Law Portal. Their analysts project the Asian legal market to grow 6 to 7 percent over the next 8 years, creating a strong incentive for U.S. and U.K. to get on the ground floor for fear of being left out.

Among those countries garnering interest is South Korea, who may be on the path to becoming an important international arbitration hub. Following the enactment of free-trade agreements with the U.S. and EU in 2011, South Korea has opened its legal market to foreign firms [when and please add a hyperlink to the South Korea article]. Dozens of international law firms have already begun to set up shop, such as Baker & McKenzie and Linklaters receiving regulatory approval from South Korea’s Ministry of Law as recently as May of this year. Some analysts are concerned that the market may eventually become overcrowded, but others remain optimistic that there will be plenty of room in South Korea.

Following the trend from last year, Singapore continues to see foreign law offices opening their doors in the Lion City. In May, Simmons & Simmons opened its first Singapore office with a focus on asset management, energy, life sciences, TMT and the financial services sector. Akin Gump opened its first Singapore office in January, while Clyde & Co. formed a joint law venture with Singapore firm Clasis in July. With the continued expansion of Singapore’s legal market, foreign firms are expected to keep establishing a presence and hiring on the partner and associate level in the Lion City.

Firm activity was not limited to expansion, however, and 2013 has been a year of border-crossing mega-mergers. Ashurst has moved up the timetable for its merger with Australian-firm Blake Dawson. A vote is expected to take place this October to confirm the groups’ merger. London-based Norton Rose and U.S.-based Fulbright & Jaworski united to become Norton Rose Fullbright. The merger created one of the largest law firms with a massive footprint in the U.S., Asia, the EU, and beyond. Not to be outdone, SNR Dentons joined together with Paris’ Salans and Canada’s Fraser Milner Casgrain to create a firm that employs close to 2,600 lawyers and professionals. The new firm has been rebranded as simply “Dentons”.

One of the fastest growing industries in the Asian legal market is the energy sector. As more and more Asia countries move toward industrialization, there has been an increased demand for fuel and energy. And, as a result, there has been an increased demand for attorneys to help manage energy transactions and now, more and more, litigate related issues. For example, China has begun to look toward Latin America as its need for energy and resources continues to increase. We at Cypress have noticed an uptick in demand for energy lawyers to work in Asia. While overall energy demand has dipped slightly in recent months, market analysts are confident this is only a temporary blip.

The M&A market in Asia continues to flourish despite a few setbacks. M&A lending of $30.5 billion made up 18.5 percent of the total Asia-Pacific loan volume in the first two quarters of 2013. The amount already exceeds that of 2012 at $28.4 billion, and puts 2013 on track to near the record-setting 2007 ($80 billion). Attorneys of all levels with a strong M&A background remain in vogue for firms expanding throughout Asia.
Asia’s role in capital markets has faced challenges with government cooling having an impact in Singapore and Hong Kong, but there are hopeful signs. Overall growth across the first half of 2013 was greater than in the first half of 2012, indicating a possible upward trend in 2013’s second half. There continues to be demand for capital market attorneys with debt and equity experience and Cypress currently has a record number of positions available for attorneys with or without local language capabilities and either US or HK listing experience. Here at Cypress we typically advise capital markets attorneys practicing in China to try and diversify their practice by working on US, London, HK and mainland China listings.

Cypress Recruiting is well positioned to ensure that your next move is the right one. Cypress is the only legal recruiting firm that has focused on partner and associate recruiting in Asia for over ten years. We have excellent relationships with law firms across the Asian region.

In this regard, it is worth noting that we are representing several law firms that are seeking to bolster their corporate, capital markets, M&A, arbitration, and other practices in Hong Kong, Singapore, Japan, and mainland China. For more information, please visit our job listings on our website.

Compensation Report

Attribute to William Wesley, Asia Legal Blog

As top firms are recovering from the economic recession, they are offering increasingly competitive packages in order to attract and retain top legal talent in the Asia market. Hiring conditions across Asia are showing steady and noticable signs of improvement with new openings in fund formation, project finance, capital markets, M&A and FCPA/litigation.

Interestingly, the Hong Kong market for the last twelve months has been experiencing the beginning of tussle for HK qualified associates as a few American firms have begun to pay their Hong Kong qualified associates at New York-scale salaries starting at $160,000 for first years. However, it is important to note that not all of their competitors in Hong Kong have followed suit and some are waiting to see how these salary changes develop.

The Hong Kong and Beijing offices of US NLJ 350 firms also saw large increases in their lawyer headcounts this year. Beijing firms experienced an 11% gain and Hong Kong firms experienced a 5.6% gain.

When comprising an offer, law firms consider several factors such as cost of living, hardship associated with living in particular locations, familial status, competition/supply of appropriate candidates with a particular skill set, the firm’s interest level in a candidate, profitability of the office, and the firm’s ability to attract and retain top talent. As more U.S. law firms establish offices in Asia and compete for legal talent, expat packages might increase.

For lawyers wanting to make a lateral move, it is more important than ever to thoroughly research the various benefits of potential placements. Be careful and use an experienced and knowledgeable recruiter who can provide you with current remuneration information and negotiate on your behalf. Make sure that the recruiter has experience in the specific market, and a sharp focus on that market.

                                                                    Ex-pat Package Must-Haves

US Qualified Associates:

Base salary: At the most competitive law firm in terms of compensation, US qualified lawyers are paid at New York rates ($160K for first year lawyers, $170K for second, $185K for third, $210K for fourth, $230K for fifth, $250K for sixth year lawyers). Firms that pay NY rates include but are not limited to the Wall Street law firms and other firms that compete most directly with the Wall Street firms for associates. Generally speaking, the more profitable the law firm in terms of profits per equity partner and revenue per lawyer, the more likely they are to pay NY rates regardless of whether they are headquartered on Wall Street.

The law firms that do not pay NY rates tend to pay rates that are equal the rates paid in the office where the firm is headquartered, but as mentioned above many non-NY firms still pay NY rates. At firms that do not pay NY rates, associates still earn well into six figures, but on average about 10-15% less than NY rates.

Bonuses: Some firms offer discretionary bonuses that will follow those given to attorneys at the firm’s head office. Depending on the firm, any performance bonuses may be pro-rated, and this is typically based on the candidate’s start date and marketability as well as the firm’s profitability in that fiscal year. The more competitive firms pay flat bonuses that are consistent with New York bonuses, while some firms tie bonuses to factors including class year, hours, and/or pro-bono activities.

Tax Consequences: U.S. citizens and permanent residents (green card holders) must pay U.S. income tax, in addition to any income taxes due to the host country. However, there is relief – the first $95,100 of your salary will be excluded from your U.S. income tax liability, regardless of location. Housing allowance exclusions vary according to country (i.e. in Hong Kong, your housing payments are deductible up to 50% of your taxable income).

Tax Equalization: Due to double taxation on sums above the exemption, most international firms have implemented a tax equalization plan as part of a remuneration package, which can offset the expatriate’s tax burden and sometimes undermine a tax benefit to associates in certain markets. Tax equalization plans are designed to make taxes a neutral factor in an expatriate’s compensation package.

A U.S. taxpayer may also exclude a certain amount of his or her foreign housing expense that is the excess of the taxpayer’s reasonable “foreign housing expense” for the tax year over a “base housing amount” equal to 16% of the maximum foreign earned income exclusion amount for the calendar year, multiplied by the number of days of foreign residence or presence by the taxpayer for the year. However, foreign housing expenses may be excluded only to the extent of the lesser of: (i) the expense attributable to the law firm provided amount; or (ii) the taxpayer’s foreign earned income for the taxable year.

Expat benefits: Firms generally offer a range of benefits for foreign nationals working in Asia. A variety of factors influences the package that is offered, including cost of living, profitability of the office, the firm’s competitiveness in the legal market, an attorney’s nationality and academic pedigree, and whether a firm considers the location to be a hardship destination. For example, Singapore firms often do not offer expat compensation because it is not considered a hardship post, but some law firms there have begun offering benefits between US $20,000 and US $45,000.

UK Qualified Associates

Salaries and Bonuses: Throught Asia, the magic circle firms pay their UK associates rates similar to what they would earn in London at the same firm (but US associates are paid US rates). [Susannah- Maybe we can list rates for 1, 2, 3 years qualified etc for a magic circle firm like Allen Overy, etc.]

It’s worth noting that salaries tend to vary slightly (maybe one or two percent) between Magic Circle firms for each class year, but these firms tend to basically pay the same rates. UK Lawyers are paid bonuses from between 10 to 40% of their annual salary depending on PQE and performance. Other benefits like tax equalization are not uncommon.

                                                                         Hong Kong

For more information on basic salaries for US and UK qualified associates in
Hong Kong, please refer to Section 2 above (“Expat Package Must Haves – US Qualified Associates and UK Qualified Associates”). Expat packages in Hong Kong at firms that pay such compensation (many do) can range from $20,000 to $70,000.

For Hong Kong qualified associates, packages in Hong Kong have experienced much more variance than usual this year, as a few American firms have chosen to pay all of their associates, whether US or Hong Kong qualified, New York scale salaries starting at $160,000 for first-years. Benefits often include housing and moving allowances for the associate. However, generally speaking Hong Kong-qualified attorneys will receive pay consistent with the domestic market. For Hong Kong associates, the median starting salary is HK$63,000 per month. Moreover, Hong Kong associates receive bonuses that are on average 12.5% of the lawyer’s salary

                                                          Mainland China (Beijing and Shanghai)

For more information on basic salaries for US and UK qualified associates in Mainland China, please refer to Section 2 above (“Expat Package Must Haves – US Qualified Associates and UK Qualified Associates”). Expat packages can range from $20,000 to $60,000.

Taxes are higher in Shanghai and Beijing than in Hong Kong but the cost of living is significantly lower than in Hong Kong, so ex-pat packages are typically about 20% smaller. With that, firms will often tax equalize pay to ensure that lawyers in Mainland China receive remuneration similar to associates in Hong Kong. Essentially, associates in Mainland China will receive benefits that are similar to the Hong Kong ex-pat model package.

PRC Nationals: PRC attorneys who have a JD are usually hired as associates while those with only an LL.M. from a top U.S. law school, who are qualified to practice in New York or California, and have worked at an international law firm might be hired as “associates,” “foreign associates,” or “legal consultants,” depending on the law firm and level of experience.

Compensation for PRC nationals can vary, but they certainly receive a higher salary at a foreign firm rather than at a Chinese firm, although the pay at a U.S. or U.K. firm for PRC nationals might be far below that of expatriates. The range for an annual base salary for a PRC associate would start at 50,000 to 120,000 RMB, and increase with experience. Bonuses for PRC nationals might also be lower than for expatriates, and, unless they hold a green card, they most likely will not receive an ex-pat allowance of any kind. Some firms offer travel and relocation expenses but that is becoming rare in the current market.

                                                                        Tokyo

General Considerations: In Tokyo, the ex-pat packages that went out remained stronger than in any other Asian market, given the cost of living and particularly small supply of bilingual attorneys looking to practice there. The packages range from $45,000 to $85,000 USD, depending on seniority, familial status and firm. In Tokyo, most U.S. and U.K. firms also offer to cover the costly venture of relocating and securing housing there, and they cover the “key money” and deposit, acting as guarantor and usually signing leases in the firm’s name.

U.S. and U.K Nationals: U.K. firms offer salaries are linked to the lawyers’ level of qualification in London with a significant additional cost of living allowance. Such benefits, include, health care, gym membership, and airfare expenditure.
U.S firms offer a lump-sum salary to their associates, which will be higher than the salaries given by U.K. firms. Some U.S. firms will give associates “New York scale” salaries with benefits. In general, bonus packages follow the firms U.K or U.S. model.

For more information on basic salaries for US and UK qualified associates in Japan, please refer to Section 2 above (“Expat Package Must Haves – US Qualified Associates and UK Qualified Associates”).

                                                                     Singapore
General Considerations: Law firms in Singapore historically did not offer ex-pat packages, given that it was not considered a hardship destination and the cost of living is so moderate. But as Singapore began competing with other locations such as Hong Kong for top attorneys, firms there had to start offering certain benefits including relocation and minimum housing allowances. In general, these benefits offered by firms range between $20,000 to $45,000 USD. Some firms do not offer any allowances because companies and firms considered Singapore a non-hardship post.

U.S and U.K. nationals: For more information basic salaries for US and UK qualified associates, please refer to Section 2 above (“Expat Package Must Haves – US Qualified Associates and UK Qualified Associates”).

U.K. firms offered salaries that ranged from SG$120,000 to $140,000. However, lawyers in Singapore were given bonuses around 10 to 15% of their annual salary. Moreover, the tax rates in Singapore are smaller than in London, and most associates rarely pay more than 15% in tax.

World’s Most Attractive Employers 2013 – Who is “In” in Asia?

credit to William Chin

The people at Universum just published their 2013 World’s Most Attractive Employers ranking.  How do companies fare in Asia when it comes to employer of choice and employer branding?  How are students selecting their choice of employers to work for?

Sony, Toyota and Lenovo were the only three Asian companies that made the Global Rankings.

• Sony managed to maintain its 9^th position among Engineering students while falling three spots to 18^th among Business students.
• Its Japanese counterpart Toyota kept its 45^th position among the Business cohort despite taking a slight dip of three positions to 21^st among Engineering students.
• Lenovo, the only Chinese company in the list, improved seven positions to reach 37^th among the Engineering cohort.

Ranking Methodology

The global rankings were based on the responses of over 200,000 students from top universities in 12 countries, including Australia, China, India and Japan, who participated in Universum’s annual student survey earlier this year. Through the survey, they indicated the organisations they deemed IDEAL to work for and why, as well as their career preferences upon graduation.

• Respondents acknowledge the companies they would “consider working for”
• Then select their five “ideal employers”
• The rankings, dubbed the Universum Top 100, measure the employer appeal of companies in the recruitment market.

Asia Pacific Ranking

• Countries covered in 2013: Australia, China, Hong Kong, India, Japan and Singapore
• Total number of students surveyed in 2013: 62,697 (26,246 Business, 36,451 Engineering/IT)

Here are the Top 25 Ranking in APAC

The Demand and Local Talent Gap in the Chinese Market

credit to hamza

China has been one of the fastest developing economies in the past decade, but developments bring new challenges and obstacles along with it. One such challenge, which is becoming increasingly important for the Chinese Market to meet, is addressing the shortage of available leadership talent in the recruitment market.

Indeed, state owned enterprises as well as multinational and local companies are having an increasingly difficult time finding individuals with the right set of leadership and managerial skills to add to their teams. One of the reasons for this is thought to be China’s educational system which prevents the development of critical skills by “relying to heavily on memorization”(Newswise, 2012). Another cause exacerbating the shortage of talented candidates within the Chinese market is the high level of economic development taking place within the country throughout the past decade. This quick growth in the economy has prompted many companies to develop or expand to China within a short span of time, in turn exponentially increasing the demand for talent.

When it comes to company needs two main issues seem to be at the heart of the matter, finding and hiring experienced managers and retaining valuable employees within the company. Senior managers that have a good amount of experience under their belt are becoming increasingly rare to find whilst “commanding a high salary”(Newswise,2012). A study conducted by McKinsey had concluded that one of the biggest obstacles facing companies throughout China is that of recruiting capable managers (McKinsey). In order to solve this problem, “local companies are matching or exceeding MNC salary packages, offering enticing benefits and attractive career paths to senior management” a subject we will be delving into in our next article regarding the importance of Employer Branding (Forbes,2012).

When seeking and keeping the best talent, there are issues to, as Judith Bannister, director of global demographics at The Conference Group notes, “for multinationals, it is now a challenge not only to recruit the best people, but also to develop and retain them”(Bannister, 2012). As the rarity of talented and pragmatically skilled individuals increases so does their leverage when it comes to negotiating with and imposing conditions on their potential employers. “Keeping them after they get them is another problem. Wage increases alone are no longer enough. Companies are trying everything to win the hearts and minds of their increasingly mobile and independent-minded workers” (Sirkin, 2013).

The opportunities for managerial candidates interested in working in China are extremely advantageous, especially for those possessing strong leadership and creative skills. These advantages stem mainly from the quick development of the Chinese economy and heavy foreign investment which has left a gap in the market due to the increased demand for skilled managers. The difficulty for employers in China to find skilled managers has lead them to pay extra attention to the incentives and motivations candidates value the most when working for companies and to heavily invest in their Employer Branding. For this reason, we will next be exploring the subject of Employer Branding and its key role in attracting and retaining high value candidates. Stay Tuned!

Crucial key skills for the Chinese Market

credit to hamza

Previously, we had explored the subject of China and the existing talent gap that is handicapping the local recruitment market; this article will in turn explore the ways in which one can capitalise on this talent gap.

As one of the biggest and fastest developing economies in the world, China needs much more talent than is available within the country to fill in its vacancies, for this reason it looks to attract an increasing amount of international talent. This talent shortage can be felt across all sectors with “China now moving up the value chain in the manufacturing industry, while also becoming more prominent in sectors such as healthcare, IT, leisure and professional services”(). These developments have therefore created many career openings for highly qualified oversee graduates, both Chinese and international, who struggle to find jobs in the western world.

One of the main issues with the existing talent gap in China is the education which “relies too heavily on memorization” (reliableplant.com). This produces graduates that are highly efficient but dependent on leadership, with difficulty thinking creatively or taking initiative independently (reliableplant.com). A study conducted by Mckinsey on the topic had revealed that “there is an ongoing mismatch between the sort of graduates most Chinese universities turn out and the type of candidate who would interest local and regional companies”(). For this reason, the appeal of locals having received a western education and international elements is at an all time high for companies based China.

Moreover, most of the jobs that employers throughout China are having the most difficulty filling are ones that require individuals from specialised fields of expertise such as engineers, technicians, accountant and Finance staff (manpower, 2013). Experts are partly blaming China’s outdated education system for not equipping graduates with the necessary practical skills to be able to function in the real world. A recent article on the talent gap in the Chinese Hospitality sector argued that “educational institutions in China should take specific steps to update course curricula and materials to develop students’ functional, social and business skills” (chinabusinessreview, 2012).