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Job hunters seek out flexible contracts

By Shi Jing in Shanghai | China Daily | Updated: 2018-12-19 10:39
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Job hunters seek positions and information at a career fair in Huaibei, Anhui province. [Photo by Wan Shanchao/For China Daily]

As China's job market matures, and the booming digital economy takes off, more and more employees are turning their backs on steady salaried jobs and instead opting to become contractors.

According to a new survey released by the global recruitment specialist Michael Page, 96 percent of the 2,642 polled professionals said they would like to become a contractor at some point in the future.

The biggest proportion, 35 percent of the respondents, said they would be ready to take such a position after working for 10 years or more in a full-time post.

For interviewees aged between 20 and 55, a consultant is the most preferred type of contractor role, with 45 percent of them ticking this option. Another 29 percent are more inclined toward part-time work, while another 21 percent prefer to be freelancers.

When asked why they want to be a contractor, about 29 percent said they will consider it when they are not faced with any substantial financial obligations to make a living. About 22 percent will opt for contract work when at a crossroads in their career, while 21 percent said they will turn to contract life when they are confronted by a glass ceiling in their career development, a scenario most encountered by workers in large, multinational or State-owned enterprises.

Peter Smith, managing director of Michael Page China, said there is a misunderstanding of contract work, with some considering it only for junior, transactional roles.

"Companies are hiring contractors at the mid to senior and sometimes even executive level," he said.

As he further explained, the effects of China shifting toward a consumer-led economy combined with increases in traditional manufacturing costs, the need for innovative improvement to consumer experiences, and the drive for more efficient processes have resulted in an increased demand for innovative technologies.

"Therefore, skilled talents are now highly sought after, in order to implement projects in industries such as robotics, artificial intelligence and the internet," he said.

Janet Zhou, associate director of Michael Page China, said the trend is especially evident in technology-related industries, where the demand for mid to high-level contract positions is much higher than supply.

As observed by Michael Page, their clients are using skilled senior contracting candidates in three main areas including project hires, flexible hires and improving headcounts.

In terms of project hires, most personnel are brought in as consultants, whether to plug management gaps, or as a financial expert to help with an initial public offering. For flexible hires, workers mostly cover maternity leave, sick leave, or to test new roles. Headcount hires are used when companies have fixed headcount limits, but need new hands to meet the companies' rapid growth, explained Smith.

"Contract jobs give companies a more flexible approach to manage headcount budgets," he added.

As estimated by the Qianzhan Industry Research Institute, the compound average growth rate of China's contractor market will be 23 percent between 2016 and 2025, with the market's total value projected at 166 billion yuan ($24 billion) by 2025.

Yuki Chen, regional director of Michael Page China, said there has been an outburst of contractors in the fourth quarter of this year. As she explained, when there are economic uncertainties, companies will be more cautious in investing in full-time jobs.

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