Pacificbridge Inc

<strong>Korea<br /><br />1) General overview</strong><br /><br />Right now, Korea's workweek is in transition from 44 to 40 hours per week. Beginning in July 2007, all companies with at least 30 employees are required to switch to a 40-hour workweek. Full implementation of this ruling will be difficult, however, given the hierarchical mindsets and traditional work ethics of the Koreans. Generally, if bosses or older colleagues have not left the office for the day, subordinates and younger colleagues would feel uncomfortable leaving.<br /><br />In terms of overtime, blue-collar workers must be paid for all hours worked beyond the regular workweek. Generally, a 50% premium is required for all overtime work.<br /><br />Under Korea's immigration policy, foreigners are allowed to work in the country on a case-by-case basis. Foreigners generally occupy senior level positions and are relatively more expensive to hire. Given the highly educated Korean workforce, it is almost always less expensive and equally effective to hire locals or returnees.<br /><strong><br />2) Wages and compensation</strong><br /><br />Even though salaries for Korean professionals are lower as compared to their American counterparts, they have been on the increase over the past few years. But top employees and expatriates remain expensive, particularly with the appreciation of the Korean currency against the U.S. dollar. <br /><br />Large Korean companies generally pay a bonus equivalent to one month's salary four times a year. This practice is less commonly observed in foreign firms. Many companies now prefer incentive-based systems. This is mainly because fixed bonuses are seen as regular income and would lead to increased cost in the event of severance.<br /><strong><br />3) Other Benefits</strong><br /><br />Under Korea's Medical Insurance Act, all companies are required to offer insurance coverage for their employees. These include inpatient, outpatient, nursing and funeral expenses where employees generally co-pay 20% of the total amount. However, there is no mandatory sick leave policy in Korea. Companies generally determine their own sick leave policies.<br /><br />Under the country's Employment Insurance System, full- and part-time employees who work more than 15 hours a week receive unemployment and disability benefits. Under the system, employers and employees each contribute 0.45% of monthly salary.<br /><br />Under the National Pension Law that came into effect in 1998, employer and employee each contribute 4.5% of monthly salary. Payout at retirement usually depends on years of service, monthly income, number of dependents, and so on.<br /><br /><strong>4) HR Regulations Update<br /></strong><br />Work Visas for Ethnic Koreans - Since June 2006, a new visa ruling has been introduced for Koreans with foreign nationality. The H-2 visa will make it easier for companies to hire ethnic Koreans in construction and service jobs. The visa will allow these overseas ethnic Koreans to freely enter and leave the country for three years. They can also switch jobs without changing visas. <br /><br />Pension System Reforms - Due to Korea's rapidly ageing population, a reform of the pension system is likely to be implemented between 2010 and 2020. This will lead to increased contributions by both employers and employees from the current 9% of monthly wages to 12 to 13%. It will also lead to a reduction of post-retirement pension payments from 60% of former salary to 50% initially, and 40% later on.<br /><br />Increased Health Care Premiums - Again, as a result of the country's ageing population, National Health Insurance premiums will increase by 6.5% in 2007. Currently, employers and employees each contribute 2.2% of monthly salary to the health care insurance fund. <br /><br /><strong>5) Labor Relations</strong><br /><br />Korea is known for its militant labor unions. Recently, the Institute of Management Development ranked Korea last among 61 countries in terms of competitiveness of labor relations. More workdays have also been lost to labor disputes in Korea than any other developed country.<br /><br />The unstable labor environment has hurt the country's economy. General Motors and Carrefour have both experienced costly strikes in recent years, while FedEx and DHL have chosen China over Korea as their regional hubs. Many Koreans are aware that the country's militant labor is in danger of eroding Korea's competitiveness in the long run. But despite vocal calls to curb the militant nature of the unions, little headway has been made.<br /><strong><br />6) Recruiting Strategies</strong><br /><br />Relationships and Networking - One common method of recruitment is based on relationships and networking. Family members, relatives, friends and alumni are often good sources of referrals and recruitment. <br /><br />Like employees elsewhere, Koreans are interested in opportunities for career advancement and development. When recruiting candidates, foreign firms should make growth potential and other career opportunities clear to prospective employees. Although lifetime employment is not as common as in Japan, the concept is still very attractive to many Koreans. <br /><br />Campus Recruiting - Another common method of recruitment is heading to top universities in the country. The top three universities are collectively known as "SKY, or Seoul National University, Korea University and Yonsei University. Recruitment of students takes place twice a year, and competition is usually stiff for positions in top local and foreign companies.<br /><br />Internet Recruiting - Some of the popular recruiting websites in Korea include http://www.jobkorea.co.kr, http://kr.dir.yahoo.com, and http://www.koreajoblink.com. Internet recruiting is generally more successful in hiring entry-level candidates. Young Koreans are among the more wired and internet-savvy in Asia. But when hiring senior positions, more conventional methods such as headhunting are generally preferred.<br /><br /><strong>7) Recruiting Trends <br /></strong><br />Korea's workforce is highly educated and the pursuit of post-graduate degrees by Koreans is at one of the highest levels in the region. Many post-graduates are ambitious, driven and have high career expectations. <br /><br />Hiring Fresh Graduates - In recent years, companies in Korea have been hiring employees for entry-level positions based mainly on age. Companies have expressed willingness to hire only new graduates, and will not even consider those who have graduated two to three years ago. These companies feel that fresh graduates are easier to train, more creative, can learn and grow with the company, and are capable of offering many years of service.<br /><br />Women in the Workforce - Despite being known as one of the most male-oriented societies in Asia, Korea has witnessed a recent increase of women in the workforce. Women now constitute a record 42% of the workforce. 60% of new jobs in the financial sector went to women, and 38% of graduates in the IT field in 2006 were women. The country even appointed a female Prime Minister in 2006. There are also increasingly more women represented in management and executive positions.<br /><br />Although there is still a fair amount of discrimination against women in the workplace, employers have generally realized the benefits of hiring women. Many firms are also doing their best to recruit and retain highly qualified women.<br /><br /><strong>Hong Kong<br /><br />1) General Overview<br /></strong><br />Hong Kong's colonial legacy gives it well-established labor regulations based on the British system. Important labor laws and mandatory provident fund schemes are also in place. Even though the territory has over 700 registered trade unions, there have been few major labor disputes or strikes. <br /><br />Hong Kong is one of the freest economies in the world and has a highly conducive business environment. It enjoys low tax rates, has a strong legal system, and is tough on corruption. <br /><strong><br />2) Wages and Compensation</strong><br /><br />Apart from a few group of workers such as those in the construction industry, Hong Kong has no minimum wages. Salaries for local professionals are generally similar to or greater than those in the United States. This is mainly due to the high costs of living in the territory, especially in terms of housing.<br /><br />Many companies in Hong Kong give out Chinese New Year or "13th month bonuses. The amount is generally equivalent to one month's salary or more, and is usually paid in January or February. If a bonus is mentioned in a contract, it must be paid unless specifically noted as discretionary. If an amount is not specified, at least one month's salary must be paid.<br /><strong><br />3) Other Benefits</strong><br /><br />Hong Kong's Mandatory Provident Fund Schemes Ordinance came into effect in December 2000. It applies to all employees between 18 and 65, including part-time workers and foreign employees. Under the scheme, employer and employee each contribute 5% of the employee's monthly salary. The fund is transferable and can be carried to an employee's new job in the event of a job switch.<br /><br />There are two main types of medical benefits - government subsidized benefits and private health plans. Under government-subsidized benefits, services are available at relatively low costs. Right now, no contributions are required from employers, but this situation might change given the territory's rising health care costs.<br /><br />Under private health plans, employers usually cover full costs, although cost-sharing plans are becoming more common. Generally, the employee must help pay the cost of dependent coverage. Some larger companies in Hong Kong also arrange contracts with local clinics or medical chains to provide medical care for their employees.<br /><br />Disability and life insurance are not mandatory in Hong Kong. However, many companies include these as part of their medical insurance policies. As for maternity leave, less than half of the companies in Hong Kong pay full salary during this period. Maternity leave must be granted for a minimum of ten weeks. <br /><br />While expatriate packages were common in the past, they have become less so in recent years. Right now there is no great disparity in the salaries of expatriates and locals in senior positions. But for expatriate positions, housing, education and home leave can add up to a higher and substantive compensation package.<br /><br /><strong>4) Foreign Employees in Hong Kong</strong><br /><br />As a cosmopolitan city, Hong Kong is home to over 500,000 foreigners. However, many of them are domestic staff and manual laborers from the Philippines, Thailand, Sri Lanka and India. Work permits for professional staff and skilled executives are usually granted without much delay.<br /><strong><br />5) Recruiting Trends</strong><br /><br />Labor Flow From Hong Kong to China - Given China's rapid growth and development, many Hong Kong residents have looked to the mainland for job opportunities. Indeed, many Hong Kong residents realized the importance and benefits of working on the mainland. Increasing salaries are, of course, the greatest attraction. While average salaries in Hong Kong rose by only 3% in 2006, salaries for those Hong Kong residents who worked in mainland China increased by 25%. As compared to mainlanders, Hong Kong expatriates are well paid, and the cost of living in the mainland is also significantly lower as compared to Hong Kong. As a result, some Hong Kong residents have even relocated their entire families to the mainland.<br /><br />Quality Migrant Admission Scheme - The Scheme was initiated in July 2006 in order to attract foreign talent to Hong Kong. Even though it is open to all nationalities, the Scheme specially targets mainland Chinese with exceptional skills or academic qualifications. Especially welcomed are those trained in finance and accounting.<br /><strong><br />6) Recruiting Strategies</strong><br /><br />Newspapers - This traditional method is still highly effective when it comes to recruiting lower and middle level positions. Many job seekers still turn to newspapers when searching for a job, particularly the larger and more popular newspapers. These include Oriental Daily, Apple Daily, Ming Pao, South China Morning Post and The Standard. The first three are Chinese-language dailies and the last two English dailies.<br /><br />Websites - Hong Kong residents are generally internet-savvy and many turn to the Internet for job listings. Generally, professional level jobs will be taken more seriously if they are posted in English on English-language job boards. While such a method is more immediate as compared to newspaper advertisements, the drawback is that it often attracts resumes from less-qualified candidates. Popular English-language job boards include www.classifiedpost.com, www.monster.com.hk, www.hkjobs.com, and www.jobdb.com.<br /><br />Personal connections - Like China, personal connections are important in Hong Kong, especially networks of personal relationships in the business world. These inside connections can be useful in hiring, and can strengthen the bond between employers and employees. But it can also be difficult to dismiss employees who are well connected. <br /><strong><br />7) Recruiting Trends</strong><br /><br />University Recruiting - Universities in Hong Kong generally have very helpful and cooperative career centers that help match employers and employees. Top universities in the territory include University of Hong Kong, Chinese University of Hong Kong, and Hong Kong University of Science and Technology.<br /><br />MBA Recruiting - In recent years, MBA programs with an Asian-focus have become increasingly popular among Hong Kong professionals. One example is the China Europe International Business School, an international program located in Shanghai, which runs classes in English conducted by Chinese and foreign professors. <br /><br /><strong>Taiwan<br /><br />1) General Overview</strong><br /><br />Unless specific arrangements have been made, employees in Taiwan are paid twice a month. Standard working hours are 42 hours per week. Overtime pay ranges from 1.3 to 2 times the hourly salary for blue collar workers. The Council of Labor Affairs usually assists workers in finding affordable housing. The Council also provides low-interest loans for companies that build dormitories, so as to encourage employers to provide housing for their employees.<br /><strong><br />2) Wages and Compensation</strong><br /><br />Currently, Taiwan's minimum wage is US$487 per month. The amount had recently been increased since its last adjustment in 1997. As for professional salaries, they are generally lower than those in the United States, but benefits and perks remain high for expatriates working on the island.<br /><br />In Taiwan, bonuses are a significant part of compensation, the most important being the Chinese New Year Bonus. This ranges from 1 to 6 months' salaries, and is typically given by both local and foreign firms.<br /><br />In addition, there is also a separate component known as the Surplus Profit Distribution. By law, public companies are required to distribute a percentage of their profits to their employees. Most companies set this amount at 1% or lower.<br /><br /><strong>3) Other Benefits</strong><br /><br />Participation in the National Health Insurance system is mandatory for all Taiwanese employees and foreigners working on the island. The contribution rate is 4.5% of the employee's monthly salary. Premiums are shared between the employer, employee and the government at a ratio of 6:3:1. The insurance provides coverage for inpatient and outpatient services, dental care and maternity expenses for both the employees as well as their family members. In addition, the labor insurance provides medical coverage for those who are unemployed.<br /><strong><br />4) Labor and Employment Insurance Acts</strong><br /><br />Labor Insurance Act - Under this act, Taiwanese employees are provided with unemployment, disability, retirement and death benefits. Comprising of 5.5% of monthly salary, it is jointly contributed by employers, employees and the government in the ratio of 7:2:1. Both local and foreign employees are eligible. <br /><br />The act was amended in 2004 and since then annuity payments have been required, instead of a lump sum payment upon retirement. Under the Act, all companies with at least five employees are required to participate.<br /><br />Employment Insurance Act - Passed in 2003, it pays 60% of the unemployed employee's previous salary. But there are plans to increase this to amount to 70%.<br /><br />Labor Protection Act (Pension Scheme) - New pension regulations went into effect in mid-2005. Under the new regulations, employees who have changed jobs will continue to be eligible for pensions, as funds can be transferred from one job to another. Employees receive their monthly pension when they reach the age of 60. But even under this new system, employees can still opt for the old system if they so desire. Under the old system, employees can receive their pension as long as they have worked for the same company for 25 years. They can also receive their pension when they reach 55 as long as they have worked for the same company for 15 years.<br /><strong><br />5) Recruiting Strategies<br /></strong><br />Relationships and Networking - As in China and Hong Kong, personal networking in Taiwan is important in job seeking. In-house HR searches are also common and highly popular.<br /><br />Newspapers - Given the wide array of newspapers in Taiwan, job seekers turn to many of them when searching for jobs. Major dailies include the China Post, Taipei Times, Apple Daily and Liberty Times.<br /><br />Internet Job Sites - Like elsewhere in Asia, Internet job searching is fast gaining popularity in Taiwan. Some popular recruiting websites include www.104.com.tw, www.1111.com.tw, and www.taiwanjoblink.com. <br /><br />University Recruiting - Recruiting at campuses is common, especially for entry-level positions. Top universities in Taiwan include the National Taiwan University, National Tsing Hua University, National Chiao Tung University, National Cheng Kung University and National Chengchi University.<br /><br />Others - Headhunting and agents for middle and senior level positions have become increasingly popular in recent years. Poaching is also common, especially within high-tech industries, as well as senior technical and managerial positions.<br /><br /><strong>Singapore<br /><br />1) General Overview</strong><br /><br />Like Hong Kong, Singapore has one of the world's freest economies. The island's economy grew steadily over the past few years - 5.7% in 2005 and 7.9% in 2006. Consisting mainly of service and tertiary industries, Singapore has been trying to inject creativity within its school curriculum and among its population. It also hopes to find new economic niches such as in the areas of biotechnology and scientific research and development.<br /><br />Singapore has well-developed employment laws and highly stable labor relations. The tripartite relation between government, employers and labor is extremely strong. Labor strikes are rare. The island has a strong legal system and is generally well regarded for being largely corruption-free.<br /><br /><strong>2) Wages and Compensation </strong><br /><br />Singapore has no minimum wage law, but most companies follow the guidelines issued by the National Wages Council. The body is comprised of union representatives, government officials and employers.<br /><br />Even though bonuses are not required by law, they are commonly given at the end of or early in the year. Bonuses are comprised of two components, the Annual Wage Supplement and performance-based bonuses. The former is more commonly known as the 13th month bonus and is usually paid during Chinese New Year. The latter is based on performance and can be paid at various times throughout the year.<br /><br /><strong>3) Central Provident Fund (CPF)</strong><br /><br />The CPF is a central institution and pillar in Singapore. Apart from setting aside enough funds for retirement, the CPF also allows Singaporeans to use the funds to purchase housing, pay their medical expenses, and even fund their educational and investment needs. Funds can be withdrawn at the age of 62, but this withdrawal age will eventually be raised to 67. Employers contribute 3.5 to 14% while employees contribute an additional 5 to 20%.<br /><br />One important aspect of the CPF is its health component. Known as Medisave, it requires mandatory contributions. It can be used to pay for hospitalization, surgery and other outpatient services. Even if other funds are withdrawn upon retirement, S$ 27,500 (about US$17,900) must still be kept in the Medisave account. <br /><br />Singaporeans who find Medisave insufficient in meeting their medical expenses can also turn to Medishield. Medishield is an optional additional medical insurance that provides coverage for long-term illnesses. Monthly premiums are based on age and can either be paid in cash or through withdrawals from Medisave accounts. Further options are also available for coverage of spouse and dependents.<br /><br /><strong>4) Foreign Employees in Singapore</strong><br /><br />All foreigners working in Singapore must register with the Ministry of Manpower. They can either apply for the P, Q or S visas. The P category requires certain skills and professional qualifications and is catered for executives, managers and professionals. The Q category also requires some specialized skills but has lower income requirements. The S category is generally for those with less education or specialized skills.<br /><br />Personalized Employment Pass - Beginning on January 1 2007, the Pass enables foreigners to switch jobs in Singapore without applying for a new permit. Valid for 5 years at a time, the Pass also allows the employee's spouse and children to be included on a single permit. Even if the employee is out of a job, he or she can still legally remain in Singapore for 6 months. To be eligible for the Pass, employees need to earn only US$19,000 annually, or have held P or Q passes for at least two and five years respectively. Foreign graduates from Singapore universities and who had a Q pass for at least two years are also eligible.<br /><br /><strong>5) Hiring Trends</strong><br /><br />Singaporeans are generally known to be diligent and hardworking. Most prefer to work for bigger or better-known local or foreign companies. Over the years, many Singaporeans have also placed greater emphasis on a balance between work and leisure.<br /><br />Due to Singapore's position as a regional hub in Asia, the demand for HR professionals remains strong. In order to meet this increasing demand, there has been a greater level of outsourcing.<br /><br />Singapore is also well known for its constant emphasis on skills development and upgrading. In addition to government-organized upgrading courses, there are a wide range of skills development courses organized either by ethnic self-help groups or groups at the community level. Singaporeans have often been exhorted to constantly upgrade themselves in order to remain competitive, an exhortation which they take seriously.<strong><br /><br />6) Recruiting Strategies</strong><br /><br />Newspapers - This is still the traditional source that many job seekers turn to when looking for jobs. Most jobs are advertised in the country's major English daily, The Straits Times, and to a lesser extent the major Chinese daily Lianhe Zaobao. The Straits Times usually has a substantive job section in its Friday and Saturday editions. When advertising in Singapore, it is important to state information such as language requirements and residency status. The former is necessary as there are four major official languages in Singapore - Malay, Tamil, Chinese and English. The latter is helpful in making it clear if permanent residents and visa holders are eligible.<br /><br />Websites - Some of the popular recruiting websites in Singapore include www.asia1.com, www.st701.com, www.singaporejobsonline.com and www.jobcyclone.com<br /><br />Campus Recruiting - This is a popular approach when recruiting for entry-level positions. The major universities in Singapore are the National University of Singapore, the Nanyang Technological University, and the Singapore Management University.<br /><strong><br />7) Retention in Singapore<br /></strong><br />Last year, 176,000 jobs were created in Singapore. This is one of the highest job creation rates per capita in the world. Yet job turnover is high. The main reasons for the high turnover are due to three factors.<br /><br />The first is unsatisfactory boss-employee relationships. According to a recent study, half of those who had resigned in 2006 had done so citing poor relationships with their bosses. The second is the lack of opportunity to pick up new skills. Singaporeans are generally keen to better themselves professionally. Many would not hesitate to leave for greener pastures if they feel that they are not learning new skills at their jobs. The third is limited opportunity for advancement. According to another survey in Singapore, opportunities for advancement is the top consideration that graduates cite when looking for a job. Overseas postings are also very much sought after and appreciated.<br /><strong><br />Conclusion</strong><br /><br />While there are a number of similarities in the HR and recruiting trends in Korea, Hong Kong, Taiwan and Singapore, there are also various dissimilarities. Hence the challenge for HR managers is to understand the uniqueness of each of these economies, so as to devise the most effective strategies in hiring and recruiting prospective employees.