Only 35% of Hong Kong employers eye boosting staff headcount

Hiring intention slipped 5.6pp.

Hiring expectations are still relatively healthy among Hong Kong employers according to the latest Hudson Report: Employment Trends released Wednesday, with 35.1% of employers expecting to increase headcount (down 5.6pp).

The majority of companies in Hong Kong (57.5%) intend to keep headcount steady, up 4.9 pp. This follows a similar increase the previous quarter, suggesting a trend towards Hong Kong employers maintaining rather than growing staff numbers.

“Hong Kong is a very outward-looking centre for trade, where influences from China and other global economic centres have a significant bearing on local employment intentions,” said Tony Pownall, General Manager, Hudson Hong Kong.

“There haven’t been major fluctuations or trends in global economic conditions recently, and this is reflected by the consistent employment outlook revealed in the report findings.”

When looking at key industry sectors, Banking and Financial Services has the strongest intention to hire (44.9%), followed by Consumer (37.9%), IT&T (29.0%) and Manufacturing (24.3%).

“Compared to other developed countries the employment outlook for Hong Kong is very strong, although in today’s tough global market Hong Kong employers are becoming more discerning in terms of talent selection,” added Pownall.

“The focus on development and retention of staff is also more evident, with increased investment in succession planning and lifting the capability of people.”

The Report also looked into how organisations are supporting people as they transition into new leadership roles.

The research found that Hong Kong provides the lowest level of support of all the regions surveyed, with 53.7% of Hong Kong organisations providing targeted support to leaders transitioning to new roles.

This compares to 77.2% in China and 70.6% in Singapore. The most frequently used techniques to support transitions in Hong Kong were internal development programs (74.6%) and coaching (61.9%).

“Smart talent management is key to achieving business success and the development and retention of staff are critical factors,” said Pownall.

“Employers have to look at succession planning, lifting the capability of their existing people and ask themselves how new hires will add value to their businesses by complimenting current skill sets.”

“Developing leadership skills in the workforce is essential, particularly for people transitioning into new or first-time leadership positions.

Poor leadership will often result in reduced team performance and productivity, lower engagement and increased turnover, so people stepping into new leadership roles need corporate support to ensure success.”