1© 2006 Management Recruiters International, Inc. An Equal Opportunity Employer. YOUR Unique Operating Identity Logo Lock-Up Trevor Sunderland Managing Director MRI China Group Hong Kong Operations

2© 2006 Management Recruiters International, Inc. An Equal Opportunity Employer. Known and Unknown There are known knowns; there are things we know we know. We also know there are known unknowns; that is to say we know there are some things we do not know. But there are also unknown unknowns, the ones we don't know we don't know. Donald H. Rumsfeld

3© 2006 Management Recruiters International, Inc. An Equal Opportunity Employer. What We Know About China… Continued extreme GDP growth forecast ( The Economist ): –2007 – 9.6% –2008 – 9.3% US$1bn foreign investment per week foreign companies per month. Government goal to increase GDP fourfold by Will be world’s largest exporter by Economy will be larger than UK by Will be world’s third largest economy by 2020.

4© 2006 Management Recruiters International, Inc. An Equal Opportunity Employer. We Also Know That… “Chinese companies will need 75,000 business leaders who can work in global markets over the next decade or so. At this time, there are approximately 5,000 Chinese executives who fit that bill.” 7 th October 2005 Financial Times article (quoting a McKinsey report released in China).

5© 2006 Management Recruiters International, Inc. An Equal Opportunity Employer. Talent Acquisition Non-traditional and aggressive recruitment techniques will be required (including): Traditional newspaper advertising; Referral programs; Boomerang/ Alumni Networks; Branding and Public Relations; Retention Identifiers; Web Search Tools;

6© 2006 Management Recruiters International, Inc. An Equal Opportunity Employer. Other Things We Know… “Employees are our greatest asset.” “We are nothing without our employees.” “Our strength is our employees.” “We Want to be the Employer of Choice”

7© 2006 Management Recruiters International, Inc. An Equal Opportunity Employer. How we Actually Manage the Interview Process Take too long to interview or make an offer; Portraying unrealistic working conditions; and A sometimes misguided assumption that strong English language skills and an overseas education automatically mean equally strong technical, managerial or cultural awareness skills;

8© 2006 Management Recruiters International, Inc. An Equal Opportunity Employer. What We Know… (The) ‘average tenure of managers aged 25 to 35 in Shanghai has fallen from 3 years in 2005 to 18 months in 2006’ September 2006 Mercer survey

9© 2006 Management Recruiters International, Inc. An Equal Opportunity Employer. Why Staff Leave / Stay Why Staff Leave Why Staff Stay

10© 2006 Management Recruiters International, Inc. An Equal Opportunity Employer. Retention – What We Need To Know Training and Development Best practice techniques towards training and development include: meaningful tuition reimbursement programs; salary adjustments for the attainment of certifications and degrees; tapping skilled employees to teach and mentor; the opportunity to attend internal and external workshops; and rewards for the publishing of articles and books and for presenting at professional conferences.

11© 2006 Management Recruiters International, Inc. An Equal Opportunity Employer. Retention – What We Need To Know Strong Compensation & Benefits Program Employers will always be faced with two great dilemmas - the loss of excellent employees and increasing salary costs; Retaining mechanisms can include: recognizing outstanding employees by broadening salary gaps; formulating a quick-response pay adjustment system; and flexible working hours

12© 2006 Management Recruiters International, Inc. An Equal Opportunity Employer. Retention – What We Need To Know Ongoing Career Opportunities Firms need to prioritise their development of strong in-house talent channels if they wish to keep pace with both business growth and external competitors; Failure to do so will result in lost employees and over-promoting of staff incapable of performing at higher levels; HR needs to define and clarify ‘success’ in a current and future role and map, train and develop accordingly; Such approaches will strengthen an organisation and provide staff with future career opportunities without having to look outside the firm; and To be successful, however, companies will need to align both business and staff needs for continuous growth and development.

13© 2006 Management Recruiters International, Inc. An Equal Opportunity Employer. MRI China Group MRI China Group is part of MRINetwork, and one of the world’s largest search companies. We provide retained executive search and recruitment services, competitive market analysis and recruitment process outsourcing solutions to clients in every major industry, serving multinational 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.