Contracting jobs in high demand in Hong Kong

Interim hires, who don’t need fringe benefits, are favoured amidst corporate belt-tightening.

Contract work in Hong Kong, once culturally taboo, is gaining momentum amidst rising demand for talent and flexible employment terms.

Market uncertainty and corporate belt-tightening have led companies to favour temporary hires to mitigate risk and remain financially stable. Contractors have also proven to be ideal for short-term projects that demand quick hiring.

“There is a greater need for good contract talent in Hong Kong,” Matthew Sullivan, a senior manager at Robert Walters Hong Kong’s Financial Services, told Hong Kong Business. “Unlike permanent workers, contractors don’t need an extensive benefit package. However, the cost of hiring a contractor can sometimes outweigh the cost of hiring somebody permanent.” 

Hiring managers can also bypass the process for headcount approval, which could take months, letting them fast-track recruitment, he added.

Moreover, some people look for flexible work that they can leave after a year without being judged for it, Sullivan said.

Hong Kong is experiencing major shifts in finance and technology that have led to high demand for contractors due to the temporary nature of project work, he added.

A survey by Robert Walters in July found that 62% of employers planned to hire contractors this year, whilst 51% started recruiting last year. Technology companies were the most active hirers of these workers at 27%, followed by finance and human resources at 14% each.

Hong Kong’s seasonally adjusted unemployment rate stood at 3% in May to July 2024, same as that in April to June, according to the Census and Statistics Department.

Hong Kong recruitment firm Hays said there is demand for a more agile and highly skilled workforce that can deliver specific improvements amidst rapid changes across industries, advances in technology and the need for employers to adapt to evolving market conditions.

“[The] increasing demand to hire contractors in Hong Kong has resulted in a decrease in the availability of some interim hires and the supply of certain skills,” Matt Hayes, a senior director at Hays, said.

He said contract work gives professionals a chance to quickly develop new skills and gain experience, whilst engaging with cutting-edge technologies in their chosen industry.

“Uncertainty in global economic conditions have resulted in the reluctance of employers to take on fixed costs such as large volumes of new permanent hires,” Hayes said. “Contractors can offer a more flexible resource from a budgetary perspective. [They] are also increasingly viewed as a viable alternative to traditional external consulting resources.”

Hong Kong employers have turned to temporary staffing solutions for their talent needs, whilst being able to cut costs and expedite the hiring process.

Hayes said more experienced contract professionals often provide skills absent from an employer’s talent pool, bringing a different perspective to an organisation.

Whilst contractors are a staple in global financial hubs like New York, London, Frankfurt, Singapore, and Tokyo, Hong Kong is still trying to catch up, Sullivan said.

Niche skill sets
In Hong Kong, temporary hires are very much in demand in sectors such as banking, insurance, asset management, hedge funds, and private equity.

“There’s a broad range of skill sets that are needed, from financial and accounting to technology and data analytics, including AI (artificial intelligence),” Sullivan said. “There's the need for business support staff from operations to executive assistants and HR.”

The trend extends to commerce and the fast-moving consumer goods sector, which are both increasingly adopting new technologies, further fueling the demand for skilled technologists.

“Demand across technology disciplines will continue to be the biggest driver of contracting hires in the foreseeable future as organisations move quickly to capture opportunities created by advances in tech,” Hayes said.

“This demand will be seen across all industries that rely on technology to support day-to-day operations,” he added.

Hayes said Hong Kong employers have increased the salaries of project professionals in areas that require niche skills or highly specialised talent. “To remain competitive and attract project professionals, the majority of Hong Kong employers now offer contractor hires similar benefits to those provided to permanent staff.”

These benefits include medical vacation leaves and mandatory provident fund contributions.
Contract work, being less common in Hong Kong, still faces some challenges, including talking workers into being under an agency contract, which can be time-consuming, Sullivan said, but this is changing.

“When we are looking for positions that are purely on a contract basis, we're [going] to have a similar conversation with candidates to say that it's okay to go in as a contractor initially, especially if we're looking at the time constraints,” he said.

“There is always the option to turn that role permanent. It's almost treating it like a long probation period to make sure that they’re happy,” he added.

Sullivan said there is high demand for niche skill sets, and there's stiff competition among companies to hire them especially for technology projects.

Skilled and experienced contract professionals are available, and their impact on the industry could be felt faster than a greenhorn.

“Employers that encourage their contractors to integrate as much as possible with their businesses or offer training and development are also likely to be perceived more favourably by contract workers,” Hayes said.

This makes temporary hires a more wanted commodity.

“It allows people to be very committed to a role and still work as hard as they would normally do in a permanent position,” he said. “The value that they're adding can still be very beneficial, and equally as beneficial as a permanent member of staff.”

Hayes said bigger companies continuing to expand could lead to a shortage in contract staff. “This ideally means that there would be a higher push for competition to draw some of those contractors from one position to another.”