Market Overview
Hiring activity has increased consistently since the fourth quarter of 2009. Business confidence is growing and employers are moving quickly to recruit and retain key skills as the labour market tightens. Our annual employment survey, which this year includes responses from more than 400 employers in Hong Kong and Southern China, reveals that 55% of companies have increased staff numbers in the last six months.
In the early stages of recovery following the global financial downturn, most newly created roles focused on front line activities in areas like sales, business development and other revenue generating related functions We have seen substantial hiring activity in other areas including finance, legal, human resources, engineering, supply chain management and property although many assignments have been replacements as opposed to new roles being created. Companies have been hiring the people needed to win business and build revenue lines. While front line recruitment is still occurring, employers have now extended their hiring across back office and operational areas to support higher volumes of business activity.
The financial services sector, which was heavily impacted during the downturn, has rebounded strongly in 2010. Trading volumes have improved and the resulting increase in business investment is flowing through to other commercial sectors in Hong Kong and Southern China.
Hong Kong’s proximity to China has been a major contributor to the speed of economic recovery. Multinationals continue to enter the Hong Kong market and those with an existing presence are aggressively expanding operations. Considering the uncertain economic outlook in America and Europe, global companies are turning to China as a core growth market and investing in the headcount needed to support business expansion.
From an Asia Pacific viewpoint, Hong Kong is still regarded as a regional technology hub for many multinationals. The strength of demand for technology staff in Hong Kong has been significant, with companies investing heavily in the upgrade and expansion of their IT infrastructure to support additional offices and entry into new markets.
Given the positive business and employment outlook, some 44% of the employers surveyed already recognise that a professional skills shortage will become an issue for their company in the next 12 months. More than half of respondents expect to see an increase in the salaries of existing employees over the next six months, with the majority of pay rises occurring in the 3-4% range. The amounts being offered to attract top candidates is much higher, with increases of 10-15% a common occurrence and even more generous offers available for skill sets in highest demand.
While salary is a major motivator, companies should recognise that the best candidates will still complete due diligence before accepting an offer. Top performers are looking for a defined career development plan, a strong employer brand and the potential for business growth. These are the factors that will make the difference in situations where talented candidates have multiple career options to evaluate.
