A foreign office worker in Hong Kong takes a break from his work. (Photo : Getty Images)
The gap in earnings between Chinese and foreign employees in China continues to decrease as employers shift priorities, with the rise in skilled local employees who compete with foreign counterparts, Global Times reported.
Over the past decade, the salaries of Chinese employees have increased due to supply and demand, according to Lee Quane, the Asia regional director for ECA International, a global consulting firm.
According to the ECA data, the salaries of local employees have increased by an average of eight percent every year in the last five years. Quane, however, said that based on the January survey, the average salaries of foreign workers drooped by 1.4 percent between 2013 and 2014, and about 5.9 percent between 2014 and 2015.
"There has been a narrowing of the gap between salaries offered to foreign staff in China and corresponding salaries offered to locals at the same level of seniority," Quane said.
As a result, many foreign workers in China felt neglected or bypassed in a promotion.
Frank Turner (not his real name) who works for an IT company resigned from his job, frustrated that he did not get a promotion after more than a year working while his Chinese counterparts get promoted.
"I've seen Chinese employees gaining constant raises and promotions to the extent that their salaries are higher than some foreigners in the same team," Turner said.
However, the rise in Chinese employees with skills and experience has given employers wider options, not limited to foreigners.
The narrowing of the wage gap may be attributed to the emergence of qualified Chinese professionals, according to foreign employees and recruitment consultants interviewed by Global Times.
Jeremiah (pseudonym), a senior account director at a Chinese advertising company, said he receives a salary of almost the same amount as his Chinese counterparts.
"It used to be harder to hire foreigners, and foreigners could bring more expertise or 'face.' However, due to the fact that the quality of Chinese local labor is increasing quickly, the pay for foreigners will continue to go down until it's equal to Chinese, on average. For some roles, it will be lower than the locals' wages in the future," Jeremiah said. "I never thought I was any smarter than my Chinese colleagues, and I certainly had less experience."
Quane also said that foreign experts were needed by China to train and develop its local staff, which they must pay with a premium price. But as more local employees are trained and gain experience, the value for overseas talent and the price is expected to be reduced.
"I think that we are only a few years away from companies hiring foreigners because they are cheaper than locals," said Quane.
Richard King, senior managing director of recruitment company Michael Page in North & Eastern China, added that many educated Chinese with experience working abroad have returned to the country in the last 15 years. They brought with them the knowledge of Western culture and business practices. He said these professionals may demand higher pay.
"As the strength and depth of the experienced Chinese senior talent pool continues to develop, it is likely that even more foreign-owned companies in China will put Chinese candidates into top jobs," King said.
King, however, said that there are still areas and opportunities where foreign experts are needed. "These areas include technology, e-commerce & digital marketing. If the candidate has Chinese language skills, they are even more marketable, so professionals from Singapore or Malaysia are sometimes more appealing than traditional expat locations such as the U.S., Europe or U.K.," he added.
