Hong Kong employers struggle with talent attrition due to financial factors
Majority of workers in Hong Kong are unhappy with benefits packages.
A new survey revealed that 73% of organisations in Hong Kong have found hiring ‘very’ or ‘quite’ competitive in 2023. 91% have lost staff members in the last six months, with half selecting ‘salary’ as the main reason for their departures.
Despite this, the research, conducted by global talent services company Morgan McKinley as part of its 2024 Salary Guide, found that 55% of businesses still plan to hire in the next six months.
On the candidate side, 47% of professionals in Hong Kong plan to actively look for new jobs in the next six months. The survey also revealed that Hong Kong workers were not happy with the benefits they received: 76% being ‘neutral’, ‘dissatisfied’ or ‘highly dissatisfied’ with their packages. The top five desired benefits workers in Hong Kong look for in a job are: Bonus, work from home, health insurance, flexible working hours, and health and wellbeing support.
‘Higher salary’ remains the most valued reason for wanting to move jobs at 60%, followed by ‘career growth and development opportunities’ at 13%. 57% of professionals in Hong Kong are optimistic that they will receive a salary increase in 2024 and 47% of employers plan to increase salary offers in 2024 for certain in-demand roles.
Rob Sheffield, Managing Director of Morgan McKinley Hong Kong & China, commented: “In 2023, businesses assessed their hiring needs after sustained activity in recent years. Vacancy and job seeker volumes have held steady, but hiring has been slow despite modest expectations of both headcount and salary increases.”
“What continues to be in high demand is the need for experienced contractors and outcome-based consulting, which has increased noticeably in Hong Kong. The need to support business-critical programmes and time-sensitive roles is driving this demand.”
Sheffield concluded: “In the current environment, employee retention is going to be key. Whilst competitive salaries are important to attract talent, it doesn’t always correlate with retaining employees. You need to also offer comprehensive benefits, have a slick hiring process, create a positive candidate experience, provide flexibility in working patterns and encourage professional development.”
“Whilst caution is likely to continue impacting the hiring market, and a range of flexible resourcing strategies adopted, early 2024 could see some loosening up in headcount budgets as markets recover.”
The Morgan McKinley 2024 Salary Guide presents up-to-date and accurate salary data for a wide range of roles across Hong Kong, providing hiring managers with industry benchmarks when they are working out what to pay employees and giving professionals more visibility over what they can earn.
Research from 650 businesses and 3,400 professionals was conducted to find out what companies’ hiring intentions are for 2024, what the key motivators are for changing jobs, and what the expectations are for movement on salaries.
For the Morgan McKinley Hong Kong 2024 Salary Guide, visit:
https://www.morganmckinley.com/hk/salary-guide
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About Morgan McKinley
Morgan McKinley is a global talent services expert, offering the full spectrum of solutions to meet employers’ and jobseekers’ needs. With 19 offices in 10 countries and nearly 1000 employees, it provides 3 distinct solutions for customers. Morgan McKinley Recruitment Solutions encompassing deep expertise across 10 professional disciplines offering temporary, contract and permanent recruitment; Morgan McKinley Executive Search for targeted C-Suite talent searches; and Morgan McKinley Talent Solutions including RPO, MSP, Project Recruitment and more.
Morgan McKinley is part of Org, a more human kind of professional services company that harnesses the power of talent to bring better business outcomes for clients across the world through advisory, managed services and talent services.
