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A majority (97%) of the C-level and HR respondents experienced challenges in hiring the right talent to meet business demands, with 63% finding such challenges unmanageable.
While hiring sentiment overall in Hong Kong and the Chinese Mainland is softer, C-level executives’ demand for talent that can drive performance continues, as 80% of executives are expecting no change or an increase in headcounts this year according to the latest report by KPMG.
The Hong Kong Executive Salary Outlook 2024 has surveyed 1,103 business executives and professionals. Among them, 552 work in Hong Kong or have a home base there and 551 work or have a home base in the Chinese Mainland.
The results showed that, compared to the prior year, expectations for increased headcounts declined, with a corresponding increase in expectations for decreased headcounts. On the contrary, C-level decision-makers are more optimistic about headcount than the general workforce in 2024. Over 80% of executives are expecting no change or an increase in headcounts, with only 14% expecting a decrease.
However, talent matching is becoming more challenging, as both job seekers and enterprises are facing difficulties in finding their ideal match.
The survey revealed that 43% of respondents sought career moves in 2023, but less than half that percentage (15%) landed new roles. Meanwhile, enterprises are failing to match talent with job positions. A majority (97%) of the C-level and HR respondents experienced challenges in hiring the right talent to meet business demands, with 63% finding such challenges unmanageable.
Eric Cheng, Director, Executive Search and Recruitment (Hong Kong SAR), KPMG China, said: “Against this backdrop, organisations can consider investing in training existing staff to retain talent, and accessing additional recruitment channels to find new talent. Relatedly, professionals looking to make career moves may need to upskill to meet the needs of the market.”
David Siew, Partner, People Services, KPMG China, said: “In 2024, accessing more diverse talent pools and talent matching will be key for employers.”
Despite a challenging market environment, 39% of respondents are looking to make career moves in the first half of 2024, representing an increase compared to last year. 74% of respondents who made career moves in 2023 saw a salary increment, with an average increment of 17%.
Hong Kong professionals most commonly saw an increase of 3% to 5% following salary reviews with the same employer in 2023, which aligns with government figures showing an increment of 4.65% for civil servants in the middle and lower salary bands. Respondents in Hong Kong also remain optimistic about their salary outlook, with 78% expecting an increase in salary in 2024, compared to 74% last year. Most respondents are expecting modest increments in their upcoming salary reviews.
As Hong Kong continues to proactively integrate into the development of the Greater Bay Area (GBA), 73% of respondents would consider relocating within or to the GBA for work in 2024. The top three factors luring them to the region are better career and industry prospects, higher income, and exposure to a greater breadth of work. Innovation and technology, financial services, and professional and consulting services are expected to present the most job opportunities in the GBA.
ALSO READ: Hong Kong employees to earn a median monthly income of HK$29,715 in Q1 2024
Lead image / 123RF
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