31 January 2007, Beijing, P.R.C. -

The law of supply and demand is alive and well in China.

MRI Worldwide, one of the largest global executive search firms released the results of its year-long report that monitors salary increases for skilled Chinese. The 2006 findings show record increases in pay packages for mid to senior level talent at Multinational Corporations (MNCs) in China.

The days of foreign nationals monopolizing the executive suite and high salaries are over. MRI Worldwide Chief Executive Officer of the China Group, Tony Dickel said: "Over 85% of the top talent are being sought among Chinese nationals. The intensity in the market for this limited pool of skilled executives and managers has cause the salary increase to jump by 33% in 2006. This increase is caused by the shortage of mid and senior level staff as they move from one MNC to another.

The Healthcare/Life Sciences and Manufacturing sectors reported the highest salary increases in 2006 compared to other industry groups.

MRI Worldwide Country Manager for China, Michael Royston said that 27% of individuals received an increase of over 50 percent in compensation when changing positions at MNCs.

"The multinational companies we talk to regularly are finding it difficult to adapt to the fast changing trends.

Some companies have offered up to 50% more in salary and compensation than they pay existing staff if the new hires can demonstrate they have the right skills," he said.

According to MRI Worldwide China Group's Managing Director in Beijing, Chris Watkins, the focus being given by MNC's on attracting the top 20% of talent is having a corresponding effect on other industries and the trend is not likely to change soon.

"In 2007, we will see these salary increases continuing across China and across industries as firms continue to make bigger investments to attract and retain talent, Watkins said.

The study represents data collected from hundreds of individuals who made job changes in 2006 by leaving one multi-national company in order to join another at a mid to senior level position. The data pool represents approximately 85% Chinese nationals and 15% foreign nationals at over 120 U.S. or European multinational corporations with operations in mainland China and it covers most major industry verticals.

The survey findings also indicate several factors that have influenced the rapid jump in pay packages:

1. Companies are focusing on hiring PRC Nationals for the vast majority of their VP, Director, and Manager level roles in China.

2.The continued entry of new companies to China that are not limited by previous salary guidelines like many established firms.

3. Chinese candidates have become more sophisticated in understanding their value and where they fit in the market place.

4. MNCs seeking out the top 20% of available talent puts further pressure on the limited talent pool. The trend of "upgrading" or attracting skilled  talent is continuing.

About MRI

MRI Worldwide (www.mri-china.com) is one of the world's largest search companies and provides retained executive search and recruitment services, competitive market analysis and recruitment process outsourcing solutions to clients in every major industry, serving multi-national companies on a global basis. With seven offices in Asia Pacific and over 1,000 offices worldwide, MRI is the largest search company in the world. Based in Philadelphia, USA, MRI has system-wide billings of US$600 million.