Job market overview and recruitment strategy for graduates

Lei LinHR Director, Microsoft Corporation

Asia-Pacific R&D Group

China Economy: A modest forecast, rebalancing

Data sources: AonHewit

1. National Bureau of Statistics, PRC

2. Aon Hewitt China Salary Increase Survey 1995-2010

3. 2011 GDP and CPI forecasted by the World Bank.

4. International Monetary Fund Database

Voluntary turnover rates: 2012 Q2

Data sources: 2012 Aon Hewitt Q2 Quarterly Watch

1st Tier Cities一类城市

2nd Tier Cities二类城市

Voluntary turnover rates: By industry

Data sources: 2012 Aon Hewitt Q2 Quarterly Watch

Voluntary turnover rates: By professions

Data sources: 2012 Aon Hewitt Q2 Quarterly Watch

R&DEngineering

F/A Marketing Production

QA/QC Sales Supply chain

Manual Workforce Top 1

General Staff Top 5 Top 7

Professional Top 2 Top 4 Top 10 Top 6 Top 3 Top 9

Supervisor/Sr. Professional

Middle Management Top 8

Top Management

Fulfilment challenges: By professions

Data sources: 2012 Aon Hewitt Q2 Quarterly Watch

R&DEngineering

F/A Marketing Production

QA/QC Sales Supply chain

Manual Workforce 手工操作工人 Top 3

General Staff 普通员工 Top 10

Professional 专业技术人员 Top1 Top 2 Top 8 Top 6 Top 4

Supervisor/Sr. Professional 主管 /高级专业技术人员 Top 7 Top 9

Middle Management 中级管理层 Top 5

Top Management 最高管理层

Snapshot of talent supply: fresh graduates 2013

Number of graduates (10K)

PHD Master Bachelor College

83% 75.30% 68.70% 76.70%

2011 Employment rate within 6 months

Data Source: 2012 EOU China, PRC

New landscape of job market

Defend Attack

SOE

POE

MNC

NowFuture

Preferred employer

Preferred Location

Jobs available for fresh graduates

Data Source: 2010-2011 MyCOS Job market Survey Results

New demand of talents

Modern HR mgt. Quantity Quality

Multiple tasks Expertise

Competency based Degree

Competency

Fast learner Experiences

Potential

Efficiency and career Loyalty

Career aspiration

Adaptability/Collaboration

IQ EQ

分工细化 Innovation and Creativity Execution

Creativity

Comprehensiveness

Data sources: 2012 Aon Hewitt Q2 Quarterly Watch

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Staffing Approach

Data Source: 2012-2013 Mercer Fresh Graduates Survey Results

•No. of companies answered “Yes” as percentage of 285 companies. Each company chose all that apply.

•“5” is the most effective approach. •Percentage of companies that answered 4 and 5.

Starting Pay for Fresh Graduates – 1st Tier Cities

Data sources: 2012 Aon Hewitt Q2 Quarterly Watch

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Starting Pay - 211 Universities Comp 1* (RMB) Tier 1 Cities

Data Source: 2012-2013 Mercer Fresh Graduates Survey Results

* Comp1 = Annual Base Salary (Monthly Base Salary x No. of months paid)

FunctionsMaster Ph.D

25P Avg Med 75P 25P Avg Med 75P

Same for all Functions 65,500 89,037 84,000 107,250 108,375 141,355 143,000 169,875

R&D: Software Development (Include ITO)

78,488 103,744 97,750 120,550 123,500 156,927 150,000 180,000

R&D: Hardware Development

72,000 96,558 94,950 117,625 123,000 142,629 132,000 162,000

Other technical jobs 67,500 84,868 78,000 96,000 117,500 151,723 131,590 180,375

BPO 53,100 58,088 54,000 61,740 -- -- -- --

Sales 55,500 76,280 71,100 90,350 52,000 94,996 109,200 122,780

Marketing 61,200 71,908 71,435 81,600 -- -- -- --

Supporting Function 54,000 68,731 62,060 78,000 -- 134,500 158,300 --

Industry tier one: Finance, Real estate, Internet and TelecomIndustry tier two: Pharmaceutical, Energy, Auto, FMCG,

Focus on Hai-Gui (returned students): a spot survey result

• Spot Survey conducted by HayGroup China and partner in early 2011. Total 792 samples,

• 59% without work exp.• 18.2% from UK, 31.3% US.• Master degree 53%.• Major in Biz or Eco. 48%

• Overall, Hai-Gui’s enjoy 27% premium in starting salary compared with their domestic peers.

• 71% of respondents reported to have got one or more offers within 3 months in China

• 24% of them are now working for financial sectors

Source: HayGroup China Spot Survey

Recruitment Process

Winter InternDec. to March

Ongoing UR engagement

Summer InternsJuly to Aug

Campus talkOct to Dec

Campus Job fairJan to Feb

Spring window March

Selection Process

CV screening

Paper test

Group interview

1:1 interview

Offer

• Discipline • Competency• Experience• Graduated school• GPA

• Technical skills• Occupational skills• Aptitude test• English

• Communication• English• Influence• Problem Solving• Performance under pressure• Team work

• Technical skills• Professionalism• Culture fit• English

Congratulations!!!

Beijing ShanhaiShenzhenTaipeiTokyoSeoul

Microsoft Asia-Pacific R&D center

Thank you!