Shanghai HR service industry sales are expected to exceed 400 billion Yuan in 2017

发布时间:2018-08-08 来源:中国网商务 作者:周健 王晓艺 责任编辑:梁长玉

By Zhou JianWang Xiaoyi

If foreign investors come to Shanghai to invest, can they always have suitable employees? The information from the HR service industry in Shanghai shows that the global HR giants  have gathered in Shanghai, and the HR service industry has shown a good upward trend, with both supply and demand booming. The 2017 sales of the Shanghai HR service industry is expected to exceed 400 billion Yuan once the statistics are finalized.

Foreign companies are thirsty for global talents

On April 8 this year, Zhu Qingyang, secretary-general of the Shanghai Talent Service Industry Association, posted an article in his Wechat Moments:“Big News! Pudong Talent Development‘35 Articles’ released”! In that morning, a work conference on talents was held in Pudong, with the Guidelines on Supporting Innovation and Entrepreneurship to Promote Talent Development in Pudong New Area (hereinafter referred to as"35 Articles”) being released, offering an olive branch to global talent.

The"35 Articles" take the lead in piloting 8 talent systems in terms of residence and immigration, employment and entrepreneurship, introduction and settlement, and classification evaluation. By optimizing screening criteria, matrix approval mechanisms and service systems, talents will be entitled to better benefits as citizens.

Some of these eight systems have obvious breakthroughs. For example, Article 1, the pilot policy of“foreign core members of the top scientific research teams in Shanghai Free Trade Zone can directly apply for permanent residence in China" is a breakthrough in delegating the right of recommendation of permanent residence to the heads of scientific research teams undertaking major national and municipal projects.

Shanghai is also actively exploring the implementation of a flexible and diversified employment system, which offers more opportunities to both foreign invested enterprises and applicants. According to the  Status and Trend Report on Flexible Employment in 2017 (hereinafter referred to as the Report) issued by Shanghai Foreign Service Corporation (SFSC), China's employment relationship can be mainly divided into three categories, namely: standard labor relations (corporate direct employment), non-standard labor relations (part-time employment, labor dispatch) and non-labor relations (business outsourcing).

Geographically, Shanghai, Beijing and Guangzhou have the highest proportion of flexible employment, and more than half of the country's flexible employment appears in these three cities (57.5%), of which Shanghai is the highest (35.9%).

SFSC is an HR outsourcing service provider that provides consulting services as well as agency services in the aspect of human resources outsourcing for corporate customers from all over the world. SFSC official website disclosed on April 3, 2018 that customers who subscribed to the Report, such as Deloitte and Electrolux, expressed their high expectations for the flexible employment business of SFSC.

Deepening the non-stop reform in HR services

This year marks the 40th anniversary of the national policy on reform and opening up. Shanghai has always been on the way in deepening such reform and opening up in employment system as well as in   human resources services.

Foreign-funded human resources service organizations used not to register as sole proprietorship companies in China. In 2006, a breakthrough policy was trialed in Pudong Shanghai in this regard, namely: for such enterprises with an investment of 300,000 US dollars, the foreign party can hold 70 % of the shares. Later, according to CEPA policy, Hong Kong and Macao people are allowed to register sole proprietorship companies if the amount of funds they use to establish human resources service enterprises in Shanghai reaches 125,000 US dollars. At present, the relevant policies have been changed to: a wholly foreign-owned human resources company can be registered in the Shanghai Free Trade Zone.

Shanghai has always maintained its leading position in policy competitiveness, benchmarking, creating advanced business environment, and gathering international top enterprises. According to Zhu Qingyang, secretary-general of the Shanghai Talent Service Industry Association, the Shanghai talent service industry has been internationalized. Global giants such as Korn/Ferry International, Spencer, Yikang Xianda, Luo Sheng and Heide Sizhe have all joined the Shanghai Talent Service Industry Association. Thus, the world top excellent human resources service providers are all gathered in Shanghai.

With the support of the government and the industry association, a complete credit system was formed in the industry, with a full establishment of arbitration mechanism, coordination mechanism, and participation in the formulation of relevant national and regional standards, which provided good HR services for foreign investors in Shanghai.

Continuously strengthen the market operation of manpower supply and demand

When assessing the investment environment, the reserve of high-quality talents in the region is an important factor. If no suitable candidates are available, the investment environment cannot be seen as satisfying, not mention to perfect.

Zhu Qingyang said:"There is no problem in human resources for foreign investment in Shanghai. HR service industry in Shanghai has been in a leading position in China. It has a high degree of matching with the industry and is in line with the world.” HR service industry in Shanghai is one of the first industries in Shanghai to complete Internationalization development.

Shanghai has taken a market-oriented approach to respond to the needs of international human resources. Taking SFSC as example, it has recently completed the HR service project for Fiat Chrysler Automobile Group (FCA Group) Asia Pacific China. FCA Group is the third largest automobile industry company in the United States. It has six legal entities in China including Chrysler Asia Pacific Investment, Maserati, Chrysler Auto Finance, Marelli, Comau and CNHi. It has extremely high professional requirements in HR management. SFSC expressed that they have earned reputations and recognitions from many internationally renowned customers by doing such kind of projects.

Another example, for the headhunting service of middle and high-end talents, Shanghai is in a leading position in the comparison among Beijing, Shanghai, Guangzhou and Shenzhen. The 2017-2018 Headhunting Industry Development White Book released by the domestic headhunting service platform shows that in 2017, a large number of headhunters received more than one million commissioning awards, of which Shanghai headhunting accounted for 26%, exceeding a quarter quota; One headhunter in Shanghai and one in Nanjing each received a commission of over 2.77 million yuan. In satisfying customers’ needs, headhunters also increased their own sales turnover.

Shanghai has achieved its goal ahead of schedule

In 2003, the sales volume of the Shanghai HR service industry was 4 billion yuan. According to the development plan established at that time, sales would reach 240 billion yuan by 2020. However, this goal has already been achieved before 2016, and the sales volume of HR service industry in Shanghai has taken up one-third of the national market. According to the Shanghai Talent Service Industry Association, the sales volume of the HR service industry in Shanghai is expected to exceed 400 billion yuan once the 2017 statistics are finalized.

The rapid development of the HR service industry in Shanghai has inspired this industry, and full confidence is shown in the future of this industry.

Shanghai Talent Service Industry Association introduced to this magazine that Shanghai's city positioning is no more a“4-center city”  -  international economic center, financial center, trading center and shipping center, it is also aiming for a scientific and technological innovation center with which Shanghai will be a"5-center city" of the world. This change will bring about further vigorous demand for human resources.

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