National Outlook China – 2023

China has reopened for business is the most positive news for the global markets in 2023 after three years of strict COVID lockdown. The economy of China will rebound strongly, and most expect 5 % to 5.5% of GDP growth for 2023. 

What would the Chinese talent market outlook for 2023? 

China will be robust over the next two years as organizations are looking to grow and recover, and they need executive talent with new skills to lead the way. The heightened war for talent will also expand to increase in demand for interim managers and coaching services. The last three years, due to COVID, have led to employers being more flexible and allowing more options like remote working. 2023 will shift as the new government policy is now discourage sick leaves due to COVID. Overall, the demand for search services will be cautious as employers prepare for a potential global recession and the continued war in Ukraine. There shall be strong demand for specialists and replacing executives with transformation managers to help reposition the business. 

Which industries and functions are most in demand? 

The industries and functions most in demand are healthcare (board, C-suite, medical staff), Technology (CIO, digital head officer, technical project leaders), finance, and industrial (digitalization, quality management, and sales). Manufacturing companies are looking for supply chain and quality managers, as well as plant managers and CEOs 

How are salaries changing in China? 

Salaries have risen significantly across all sectors before 2019. This trend has reversed or stagnated for the last three years due to COVID. As China is not facing high inflation like in most other countries, so we project candidates’ salaries will be flat or with very little increase in 2023. It will be harder to attract passive candidates as both candidates and clients are becoming more selective in their requirements, making the role of executive search consultants more important in completing key hires for clients. 

What are some other HR trends we are seeing? 

More companies shall employ RPO (recruitment process outsourcing) for middle management positions. Executive roles or project-based interim management roles will be a higher demand.There shall be more demand for coaching services for employees below the top management level. Providing career management and performance improvement coaching will become a vital part of the HR department, as companies must consider how they can remain attractive to staffs. 

Hong Kong SAR in 2023. 

The driving force of Hong Kong’s economic growth will continue to be in financial services, trading and logistics, tourism/culture, and professional services. Integrating the Hong Kong economy and the Bay Area of South China will make Technology and AI the next impetus to growth and creating employments. 

Taipei City in 2023 

The economy to remain under pressure for 2023 with its deepening uncertainty ahead of elections in January 2024. The primary industries in Taiwan are electronics, communications, information technology, and life science products. Taipei can become a “regional hub” when all dust is settled and will be very cost competitive compared to Singapore, Shanghai, Tokyo, and Hong Kong. 

CONTACT: Simon Wan for more information at email: simon-wan@cornerstone-group.com