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China Daily Website

Year-end bonuses at SOEs to rise: Poll

Updated: 2013-12-27 09:19
By He Wwi in Shanghai ( China Daily)

Changes to bonus levels were projected to vary by industry. The most generous companies were seen in the real estate sector, with 70 percent expecting to pay higher bonuses, boosted by soaring property prices in 2013.

By contrast, the auto industry saw the biggest number of HR officers, or 35 percent, expecting to reduce bonuses. Li attributed the cutback to the constrained growth in the sector in 2013, when fierce competition watered down profit margins.

Zhang Yuting, a customer service manager at a State-owned enterprise's Shanghai branch, said bonuses were lower this year, with the amount falling to 7.5 times her basic monthly salary from eight times the amount a year ago.

"Our bonus is composed of two elements: the completion of the company's overall sales target and one's own personal performance," Zhang said.

But in the eyes of Shen Ziying, a clerk at a foreign commercial bank in Shanghai, Zhang's bonus was "enviable".

"Last year, we received, on average, 1.5 times our monthly income. The best possible scenario is to keep up with last year," Shen said.

She said her previous employer may have offered around 2.5 times her basic monthly salary when economic conditions were sound and healthy.

"Foreign banks are at a disadvantage compared with local banks, especially with our business being squeezed by large State-run banks. I cannot pin much hope on bonuses after browsing our recent balance sheets," Shen noted.

Despite that, SOEs are losing their allure among recent graduates in China, according to a new survey by the country's largest recruitment site, Zhaopin.

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