Only 2 in 10 employers plan to offer substantial pay hikes in 2018

This is equivalent to a salary increase of more than 6%.

Despite a positive business sentiment that shows that seven in 10 (68%) of Hong Kong organisations are anticipating higher levels of business activity for the year ahead, the upbeat outlook is hardly expected to translate to on-ground employment realities such as substantial salary increases and increased hiring levels, according to Hays Asia Salary Guide.

Salary increases are projected to be largely moderate in 2018 as only 2 in 10 (22%) of employers plan to offer competitive salary increases of more than 6% for the year ahead. The bulk of surveyed employers (49%) intend to offer an average of only 3-6% increase in wages. 

Employers also remain cautious about increasing company headcount as less than half (43%) of those surveyed revealed that they plan to open up more employment opportunities this year. 

“The economic outlook for Hong Kong is very positive, but our research shows employers will take a conservative approach to both permanent hiring and salaries in 2018 to make the most of these conditions,” said Hays Hong Kong managing director Dean Stallard.

Jobseekers thus need to adapt to the changing demands of the tightening job market by acquiring and developing more in-demand skills.

“For candidates, these conditions represent something of a challenge. Those staying in a job are likely to see only modest salary increases while those changing employers have a better chance of securing a higher salary, but there is likely to be fewer new jobs coming to market,” added Stallard.