Trading Places
Inside views on the jobs market
The perils of working in the Western world
Looking for a kinder, gentler work environment? If you’re in North America, you might consider heading east. Human resource experts say cultural differences could be the difference between taking a hefty pay cut and losing your job entirely.
During a downturn in the East, ”the right thing to do is to share the burden. There’s that sense of collective responsibility. Whereas in the West, it’s more about individual survival,” says Michael Benoliel, associate professor of organizational behavior at Singapore Management University.
As the world economy slips into a recession, it’s little wonder all eyes are focused on how global companies are shouldering the burden. Turns out, slashing jobs may not be the best way to cut expenses and stay competitive. In fact, preserving employees — albeit at a lower salary — may stave off economic collapse.
But not everyone’s optimistic about their job prospects, particularly new finance graduates looking for a career start. Not only are they competing with the newly unemployed, but junior positions are often first to get axed when the economy hits the skids.
More good news if you’re an accountant: PricewaterhouseCoopers is hiring. The global accounting firm announced plans to hire 2,000 graduates in China next year as part of its global expansion plan. Meanwhile, KPMG says it’s planning to create 200 high-end jobs in Toronto over the next year, despite the economic chill.
Do you think the West can learn anything from the work philosophy of the Eastern world - or is the other way around? Share your thoughts below.
Banks for the wealthy still hiring in Asia
New York City Comptroller William Thompson has increased his forecast for the number of securities industry workers who could be laid off in the city to 35,000 from 25,000, but banks in Asia are still looking to bulk up. Top brass speaking at the Reuters Wealth Management Summit this week said their expansion plans for Asia are largely intact.
Joseph Poon, who heads the Private Wealth Asia division of Australia’s Macquarie Group, said its recently set-up Asian private banking unit will hire another 30-35 client advisers in the next three to five years.
Marcel Kreis, head of Asia-Pacific private banking for Credit Suisse, said the credit crisis has not derailed plans to expand its private bank in Asia, where it could boost its team by as much as 80 percent in three years.
UBS is adding staff at a slower rate but is ready to pounce on experienced talent. “Even if we wanted to hire a lot of people there are not that many good people in the market,” said Kathryn Shih, chief executive for UBS’s wealth management business in the Asia-Pacific. “Normally into the second year of the crisis you start getting good people.”
Picture: Marcel Kreis, Credit Suisse Managing Director and Head of Private Banking for Asia-Pacific, speaks during an interview at the Reuters Wealth Management Summit in Singapore October 13, 2008. REUTERS/Vivek Prakash
Financial industry job cuts spread to Asia
It’s not just Lehman Brothers and Merrill Lynch that look to be shedding jobs amid the deepening financial crisis: HSBC announced on Friday that it’s cutting 1,100 jobs in its global banking and markets operation, or about 4 percent of the unit’s total.
“We’re doing it because of market conditions and the economic environment, and our cautious outlook for 2009,” Hong Kong-based spokesman Gareth Hewett told Reuters.
The jobs are in front and back office operations. About half of the positions affected are in the United Kingdom, where HSBC has its headquarters, and 100 of the positions are in Hong Kong, where the bank’s large Asian operations are based.
Globally, HSBC employs about 335,000 people.
“Markets continue to be challenging and difficult but our strategy leaves us well positioned for the next wave of global growth, when it comes,” Hewett said.
Wall Street job losses may be Asia’s gain
MUMBAI/SHANGHAI: Within hours of Bank of America agreeing to buy Merrill Lynch this week, Indian financial services firm Ambit hired five Merrill executives, a sign that Asia hopes to gain from massive Wall Street layoffs.
For China and India, whose economies are still expanding at well over 7 percent, the global financial industry crisis makes it easier to recruit bankers who are brushing off their resumes.
New York’s governor reckons 40,000 Wall Street jobs could go in a worst-case scenario, with talk swirling of more bank deals and mergers.
Lehman Brothers, which has filed for bankruptcy protection, has around 2,000 staff in India, including its back-office operation, while Merrill has about 500.
Ambit Holdings said on Monday it hired the five Merrill executives from a majority-owned local venture for its institutional equities and equity proprietary trading unit, including a 10-year Merrill veteran as head.
BNP Paribas and Nomura Securities in India are looking to hire Lehman executives, according to investment banking sources who asked not to be named because of the sensitivity of the matter. In Hong Kong, bankers said they were considering hiring from Lehman.
