Majority of executives predict higher pay in 2024
Executives in Hong Kong are upbeat over their salary outlook for 2024, with 78 percent of respondents forecasting a wage increase, compared to 74 percent last year, according to the latest survey by professional services firm KPMG.
Among them, 35 percent expect a 3 to 5 percent pay rise this year, following salary review. Seven percent believe the growth could reach 16 percent or higher, said the report, released on Thursday.
Nearly 40 percent of respondents intend to change jobs in the first half of this year, of which 36 percent expect their salary to rise by 10 to 19 percent after the career move, the report showed.
Last year, about 43 percent of respondents attempted to change jobs, but only 15 percent succeeded. Among those who landed new jobs, 74 percent received a pay increase, which averaged 17 percent.
The report findings were based on an online survey of 1,103 business executives and professionals between Jan 2 and 14. Among them, about half work in Hong Kong or have a home base in the city and the rest work or have a home base on the Chinese mainland.
Overall, hiring sentiment among employers is more optimistic. Over 80 percent of Hong Kong executives expect no change or an increase in headcounts in 2024, while only 14 percent predict a decrease in their workforce.
The report launch came as Hong Kong pulls out all the stops to address talent shortages. Data from the Census and Statistics Department shows that Hong Kong’s labor force decreased by around 12,800 from November to January compared to the preceding threemonth period. Total employment declined by around 9,800 over the same period.
“This year’s results signal that there will continue to be demand from C-level executives (chief executives) for talent that can drive performance,” said David Siew, partner of people services at KPMG China.
“Ongoing business transformation and the changing business environment will mean that roles and responsibilities will continue to evolve. In 2024, accessing more diverse talent pools and talent matching will be key for employers,” he added.
According to the report, talent matching remains a pressing issue, with 97 percent of high-level executives saying they have encountered challenges in hiring the right people and 63 percent saying the task was unmanageable.
“We see challenges around enterprises failing to match talent with job positions and employees lacking the specific skills sought,” said Eric Cheng, director and head of executive search and recruitment (Hong Kong SAR) at KPMG China.
Cheng suggested organizations consider investing in training existing workers to retain talent, as well as using additional recruitment channels.
“Professionals looking to make career moves may need to upskill to meet the needs of the market,” he added.
Meanwhile, interest in working in other cities in the Guangdong-Hong Kong-Macao Greater Bay Area is growing among Hong Kong executives, with 73 percent of respondents considering relocating for work there this year.
Better career and industry prospects, higher income and exposure to a greater breadth of work are cited as the top three factors luring them to the region.