Q: What is Competency Model?


A:  Competencies can be defined as a set of skills, related knowledge and personal characteristics which enable an individual to perform a job, a task or an activity within a specific function.  A competency model refers to a group of core competencies required for corporate development and usually number 8 to 12 in total. The number and type of competencies in a model will depend upon the business nature along with the culture and values of that organization. 

Economic Overview 

According to a National People’s Congress deputy, China’s working population is expected to stop growing next year, leading to labour shortage and thus affecting wages and prices in the long term. The average labour costs in China rose by more than 20% in 2011 and the increase is likely to continue shooting up this year because the economy is expected to expand at a relatively high pace. Wage increases in the low-income group are boosting spending on basic consumer goods, which is pushing up inflation. The deputy said in general people should not be too worried about increasing inflation as the rise in the price of food and basic daily goods can bring more profit to the low-income farmers and workers, which can narrow the earning gaps and rebalance income distribution. [Source: China Daily (A6), 5 March 2012]

The following major results were found in a survey by an HR consultancy covering 810 employers in HK:  1.) Lower hiring intentions recorded for Q2 2012, 11% respondents forecast an increase in headcount, 3% a decrease, 82% expected no change, 2.) Stronger hiring intentions recorded in construction and infrastructure, weaker in finance, insurance, real estate and manufacturing. An HR consultant said the starting salary for university graduates might drop by 10%, lower than $10,000 to $12,000 last year. The University of HK said the number of vacancies received in the first two months this year dropped by 37%, yet some 300 students have already received an offer. [Source: HKET (A21)/ HKEJ (A9)/ China Daily (H2),14 March 2012]  

More and more employees enjoy more senior titles but salaries not corresponding to their titles. According to figures from the Census and Statistics Department, the number of managers and administrators increased year on year by 13.6% to 404,900 in Q4 2011. Meanwhile, the median monthly income remained unchanged at $30,000. Some HR consultants said it is common to promote employees according to work performance instead of seniority. Promotion with title change rather than large salary increment can help save cost. “Title inflation” is commonly observed in the finance, banking and real estate sectors as it helps to strengthen customer confidence and boost business sales. Young employees, especially the 80s, are more likely to consider job titles when choosing among new offers. [Source: HKET (A30), 16 March 2012]
 
According to the Census and Statistics Department, the seasonally adjusted unemployment rate increased from 3.2% in Nov 2011-Jan 2012 to 3.4% in Dec 2011-Feb 2012. The number of unemployed persons increased by around 7,300 from 111,800 in Nov 2011 - Jan 2012 to 119,100 in Dec 2011 - Feb 2012. Increases in the unemployment rate were mainly observed in the decoration, repair and maintenance for buildings, warehousing and support activities for transportation and retail sectors. The unemployment rate remained at 1.5% in Dec 2011 – Feb 2012. The unemployment rate of youngsters aged 15-19 and aged 15-24 increased slightly to 12% and 8.1% respectively. 

The statistics also revealed a significant increase in the number of employees aged 50 or above by 18,100, which constituted 85% of the increased labour supply over the period. The government attributed the increase to the strong labour demand and the implementation of minimum wage. The latter had attracted the older age group to return to the labour market. With an ageing population, government measures are called for to facilitate the employment of the older age group to alleviate labour shortage pressure. [Source: HKET (A26)/HKEJ (A9)/SCMP (C1), 20 March 2012]

The HK government warned of an uncertain outlook for exports after shipments were basically flat in the first two months of this year compared with a year ago. According to the Census and Statistics Department, the values of total exports and imports both showed year-on-year increases, at 14% and 20.8% respectively. The total export value rose by 1.5% and the total import value increased by 3.8%, leaving a $54.7 billion trade deficit. Europe’s debt crisis will continue to be a drag on exports while intra-regional demand may weaken further in tandem with a widespread slowdown in the region, said an analyst. [Source: China Daily (H2), 28 March 2012]

Starting from 1 Apr 2012, eligible government employees will enjoy five working days of paternity leave on full pay on each occasion of childbirth. Eligible officers whose children's expected due date or actual date of birth fall on or after 1 Apr this year can benefit from this new measure. All full-time government employees, including civil servants, non-civil service contract staff and political appointees, who have no less than 40 weeks' continuous service immediately before the expected or actual date of childbirth will be eligible for paternity leave. It is roughly estimated that about 3,000 eligible government employees and their families may benefit from this new measure each year. Meanwhile, the Secretary for Labour and Welfare said they are studying the feasibility of statutory paternity leave in HK and the initial results would be available in one to two months. [Source: SCMP (C3)/Ming Pao Daily (A11)/Apple Daily (A12), 29 March 2012]

Disclaimer: Should there be any different views in the interpretation, please always refer to the original media source as reference. HMI Consulting accepts no liability in respect of the accuracy and truthfulness of the materials included in this Economic Highlights.