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

Four out of 10 employers in Hong Kong plan to increase salaries by up to 3 per cent, while a quarter intend to offer a pay rise of between 3 and 6 per cent
The outflow of talent has been mainly from the finance and accounting sectors over the last two years, according to the report

Banking & finance

Enoch Yiu

Published: 2:30pm, 8 Apr 2022

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Most of Hong Kong’s skilled professionals can expect a pay rise of between 3 and 6 per cent this year as an exodus of talent forces employers to offer bigger wages, according to a survey.

Some 65 per cent of employers in the city plan to increase salaries and offer bonuses this year, according to the 2022 Hays Asia Salary Guide, which surveyed 9,500 professionals in Hong Kong, mainland China, Japan, Malaysia and Singapore in October and November.

Four out of 10 employers in Hong Kong plan to increase salaries by up to 3 per cent, while a quarter intend to offer a pay rise of between 3 and 6 per cent.

Only 24 per cent plan to freeze pay this year, compared with 32 per cent in 2021.

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“The shrinking talent pool in Hong Kong is amplifying the competition for high-calibre candidates. As a result, employers have had to bump up salaries above market rate to secure the candidates they want,” said Sue Wei, managing director of Hays Hong Kong.

The outflow of talent has been mainly from the finance and accounting sectors over the last two years, a trend that will continue this year, according to the Hays report.

It has led many companies to restructure their finance teams to accommodate the relocation and retirement of mid- to senior-level staff, which meant having to pay more and provide more flexible working arrangements to retain and attract talent, the report added.

A survey by research data firm ECA International in November found the city’s employees would enjoy a pay rise of 3.2 per cent before inflation in 2022. Another one, by accountancy industry body CPA Australia around the same time, showed 59 per cent of local accounting and finance professionals expected to enjoy a pay rise in 2022.

These surveys, however, do not reflect the impact of the fifth wave of coronavirus in the first quarter of the year.

“Certain industries such as banking, wealth management and accountancy may need to offer pay rises amid the outbreak as they are struggling with a shortage of talent,” said Tom Chan Pak-lam, chairman of Hong Kong Securities Dealers.

“However, the retail sector, restaurants and even many local brokers have been badly hit by the fifth wave of outbreak. I do not see any room for a pay rise for these sectors.”

A headhunter who did not want to be named said pay rises of up to 3 per cent have been common this year in industries like logistics, banking, and technology as many expats leave Hong Kong and locals emigrate overseas.

The Securities and Futures Commission (SFC), a financial regulator, is among the organisations that have had to offer bigger pay packets to retain talent. It has given its current staff an average pay rise of 4.5 per cent.

The watchdog lost 12 per cent of its staff last year, compared with 5.1 per cent in 2020, Tim Lui, its chairman, told lawmakers in February. The most serious shortages were in junior professional staffing, which was down 25 per cent, he said.

The SFC is not alone – in recent months, local banks too have complained about staff shortages. Financial firms said stringent quarantine and travel rules that are part of Hong Kong’s relentless pursuit of a “zero-Covid” policy had deterred visitors and cut off their supply of skilled labour.

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