Venturing into new territories can be an exhilarating journey, particularly when targeting a thriving market like Hong Kong. For international enterprises considering expansion and recruitment in this vibrant city, comprehending the distinct challenges and opportunities is crucial.
This guide offers insights into the current job landscape, legal intricacies, cultural peculiarities, recruitment tactics, diversity, and adaptation to local nuances in Hong Kong.
Hong Kong market overview
Hong Kong features a robust job market, backed by a highly skilled workforce spanning diverse industries. As an international financial hub and a gateway to the vast Asian market, the city's job market is fiercely competitive, driven primarily by finance, technology, and professional services sectors.
International businesses have played a pivotal role in shaping Hong Kong's job market over the years. The city's strategic location continues to allure global enterprises eager to tap into the thriving Asian market and despite some recent pessimistic Western media portrayals of Hong Kong, the city remains a magnet for global talent and serves as a linchpin in the global economy within the APAC region. Moreover, the entire APAC region has demonstrated greater resilience over the past 12-18 months than either EMEA or North America. The World Bank forecasts East Asia and the Pacific to remain strong at 4.5% growth during 2024.
Upon closer examination of the financial sector, it becomes evident that the capital markets have encountered certain challenges in contrast to the previous year. Nevertheless, there are several compelling reasons for optimism in this dynamic market. One contributing factor is the market correction that followed a period of excessive growth in the post-Covid era. Another significant factor, with global implications, is the uncertainty stemming from the Ukraine conflict.
The insurance sector however has remained more consistent, having not experienced the same hiring frenzy witnessed in 2021 and 2022. Consequently, 2023 has proven more stable for hiring than in other sectors.
Legal and regulatory landscape
Hong Kong's legal and regulatory environment is known for its business-friendly attributes. It is imperative for companies to acquaint themselves with labour laws, such as the Employment Ordinance, governing employment contracts, working hours, employee rights etc.
Remaining vigilant about regulatory updates is vital, as Hong Kong's political landscape can impact policies. Recent developments have seen amendments to the Employment Ordinance, particularly concerning maternity and paternity leave, underlining the necessity for businesses to stay informed.
Employment law terms in this special autonomous zone are notably more favourable for employers than what one would typically encounter in Western contexts. In addition, the absence of corporation tax and minimal red tape contribute to Hong Kong's business-friendly reputation.
Comprehending cultural nuances is instrumental when hiring and managing employees in Hong Kong. Key cultural aspects include:
Face-saving: Observing face-saving protocols is essential, emphasising the importance of maintaining a positive and respectful tone, particularly when addressing issues or delivering feedback.
Hierarchy: Hong Kong's business culture aligns with a hierarchical structure where seniority and titles hold great respect.
Work-life balance: Employees value their work-life equilibrium, demanding an approach that respects this balance. Often however, these ideals are not met by employers.
It's essential to recognise that customs and management styles in Hong Kong differ from the West. The notion of "losing face" is particularly significant; within the working context, it implies a reluctance to perform a task inadequately and face the subsequent embarrassment. Therefore, it's often preferable to refrain from undertaking a task altogether than risk making an error. Rather than being viewed as a terminal issue, businesses should incorporate this consideration into their management practices. These management practices should include extensive recognition of employees' achievements as this remains a cornerstone of motivation and purpose. Often the most successful companies will have champions throughout all levels of their business who will help managers navigate these cultural nuances.
Efficient recruitment in Hong Kong necessitates specific strategies:
Utilising agencies with local expertise: Harness the power of local recruitment agencies to tap into Hong Kong's extensive job seeker network.
Employer branding: Foster a compelling employer brand that underscores diversity, inclusion, and career development.
Localisation: Hiring local talent who are well-versed in the market and language. Proficiency in English and Cantonese often offers a distinct advantage.
In Hong Kong, it's customary for professionals to transition to new roles around the two-year mark, often resulting in salary increments of up to 30%. Being proactive and sustaining a low attrition rate can yield substantial rewards. Despite the prolonged Covid restrictions in comparison to Europe or the US, hybrid working models have persisted, with many organisations, including financial institutions, offering 1-2 days of remote work per week.
Enhancements to maternity and paternity leave, increased pension contributions, and substantial childcare support serve as potent methods to gain a competitive edge in attracting talent. This is especially relevant in a market where the passive job seeking market is very buoyant.
Additionally, the speed of the recruitment process is a critical determinant of success. Prolonging the recruitment duration and steering clear of extensive onboarding procedures can prevent the loss of top candidates. In Hong Kong, once individuals commit to a contract, they typically honour it, making expedited recruitment processes an imperative goal. While buying out remaining notice periods is typically reserved for senior roles, it offers flexibility in attracting specialised talent.
Looking at recruitment and attraction from a wider lens, Hong Kong has some advantages compared to Singapore. The latter has implemented stricter visa and work permit restrictions in recent years, driven by concerns about local employment and labour force management.
Industries and skill sets in demand
Hong Kong's job market thrives in the finance, technology, and professional services sectors. Skills generally in high demand include finance and accounting, IT, compliance, data analytics, digital marketing, and positions related to e-commerce and technology, which have seen an uptick in demand due to the COVID-19 pandemic.
For certain roles, such as those in actuary, risk, and compliance, the talent pool may be smaller compared to other global financial hubs. Incorporating employee benefits into such roles can be pivotal in attracting the right talent.
Diversity and inclusion
Cultivating diversity and inclusion in your Hong Kong-based team is not merely ethically sound but also advantageous for business. A diverse workforce injects fresh perspectives and creativity into your organisation. Strategies to consider include:
Diversity training: Investment in diversity and inclusion training to promote a respectful and inclusive workplace.
Networking: Encouragement of employee participation in local networking events to cultivate a more diverse talent pool.
That being said, Hong Kong is still on a path toward enhancing diversity and inclusion, especially within some areas of financial services, such as tech, where the underrepresentation of women is acknowledged. Forward-thinking employers are actively working to rectify this disparity by implementing meaningful corporate policies and expanding the global talent pool available to recruiters. Organisations with a well-established tradition of diversity and inclusion may hold a competitive edge when entering this market.
Adapting to local needs
To align with the specific needs and expectations of the Hong Kong workforce, consider the following:
Language and communication: Offering language classes or communication training for employees, especially when their roles involve interaction with local clients.
Work culture: Understanding and respecting the local work culture, characterised by extended working hours and unwavering commitment to delivering results.
In summary, expanding your business into Hong Kong represents a rewarding venture when approached with a well-considered strategy. By thoroughly comprehending the market, respecting cultural nuances, ensuring regulatory compliance, and fostering diversity, your international enterprise can establish a resilient and thriving presence in this dynamic city. With the right approach, your business can flourish and prosper in the Hong Kong market.
Do you need a recruitment partner you can trust?
Gravitas has over 13 years’ experience in Hong Kong, in the insurance, banking and technology sectors, with niche specialists working in partnership with a businesses to meet their hiring needs. If you are ready to produce a robust and successful hiring strategy for your business to expand into Hong Kong, you can contact me directly here.
About the author
David Cahill joined Gravitas in 2022, with over 17 years sales and recruitment leadership experience. His role as Commercial Director involves developing existing client partnerships and creating new opportunities for different areas of the business within insurance, banking and technology, across Hong Kong and Mainland China. He is also tasked with identifying new key businesses to work with, while supporting the relevant specialist teams to build close partnerships.
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