Hong Kong’s skilled professionals can expect pay rises of up to 6 per cent as employers scramble to keep talent amid Covid-19 exodus, Hays survey shows

Most of Hong Kong’s skilled professionals can count on a pay back increase of involving 3 and 6 for each cent this year as an exodus of expertise forces employers to give greater wages, according to a study.

Some 65 for every cent of businesses in the town program to boost salaries and supply bonuses this calendar year, in accordance to the 2022 Hays Asia Wage Guide, which surveyed 9,500 pros in Hong Kong, mainland China, Japan, Malaysia and Singapore in October and November.

Four out of 10 employers in Hong Kong prepare to raise salaries by up to 3 per cent, even though a quarter intend to give a spend increase of amongst 3 and 6 for every cent.

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Only 24 for each cent plan to freeze pay out this calendar year, in contrast with 32 for each cent in 2021.

“The shrinking expertise pool in Hong Kong is amplifying the levels of competition for superior-calibre candidates. As a consequence, companies have had to bump up salaries above industry fee to protected the candidates they want,” said Sue Wei, handling director of Hays Hong Kong.

The outflow of talent has been mainly from the finance and accounting sectors over the final two many years, a development that will proceed this 12 months, according to the Hays report.

It has led numerous companies to restructure their finance groups to accommodate the relocation and retirement of mid- to senior-stage team, which intended possessing to spend a lot more and supply much more adaptable performing arrangements to keep and catch the attention of expertise, the report added.

A study by investigation details business ECA International in November uncovered the city’s workers would love a shell out rise of 3.2 for every cent in advance of inflation in 2022. Another a single, by accountancy field human body CPA Australia all over the same time, showed 59 per cent of nearby accounting and finance experts expected to appreciate a spend increase in 2022.

Tale carries on

These surveys, having said that, do not replicate the influence of the fifth wave of coronavirus in the very first quarter of the year.

“Certain industries these kinds of as banking, prosperity administration and accountancy might need to offer spend rises amid the outbreak as they are battling with a scarcity of expertise,” reported Tom Chan Pak-lam, chairman of Hong Kong Securities Dealers.

“Having said that, the retail sector, eating places and even lots of neighborhood brokers have been poorly hit by the fifth wave of outbreak. I do not see any room for a shell out rise for these sectors.”

A headhunter who did not want to be named mentioned fork out rises of up to 3 per cent have been popular this year in industries like logistics, banking, and technological innovation as many expats depart Hong Kong and locals emigrate overseas.

The Securities and Futures Commission (SFC), a monetary regulator, is amongst the organisations that have had to offer you larger pay back packets to keep talent. It has presented its present team an typical spend rise of 4.5 for every cent.

The watchdog shed 12 for every cent of its personnel final yr, compared with 5.1 for each cent in 2020, Tim Lui, its chairman, informed lawmakers in February. The most really serious shortages were in junior qualified staffing, which was down 25 per cent, he mentioned.

The SFC is not by itself – in recent months, neighborhood banks too have complained about staff shortages. Money companies reported stringent quarantine and travel rules that are aspect of Hong Kong’s relentless pursuit of a “zero-Covid” plan had deterred guests and minimize off their source of expert labour.

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