World of HR: Employers in Hong Kong grapple with talent shortage

Sheep are always scrambling for greener, more delicious pastures. Farmers have Border Collies to keep them on the farm, and according to new research out of Hong Kong, HR leaders may need to take on some Border Collie qualities themselves.

Employers in the city had a complicated 2022, as workers left the area and companies struggled to keep employees. The trends are expected to continue in 2023, so businesses are turning to outsourcing and retention efforts.

Where in the world? Hong Kong, a city that has experienced economic struggles since social unrest broke out in 2019, Hong Kong has the second fastest-growing job market in the Asia-Pacific region, based on its hiring rate, according to the South China Morning Post. In 2022, 89% of open roles were for remote jobs as the area struggled to find talent locally and the city’s population shrunk. To fill the gaps temporarily, the city is hiring workers in Ukraine, India, the Philippines, the UK, and the US.

Many workers in Hong Kong want higher salaries and more flexibility, and 60% of employers expect to lose staff over the next six months, according to a February report from Morgan McKinley, a talent consultancy. Furthermore, 60% of employers said they plan on hiring more workers in the first half of 2023. In addition to outsourcing, HR leaders are leaning on hybrid work, wellness benefits, and learning and development opportunities to help boost retention.

“2022 was another year of high demand to hire but short supply of talent in Hong Kong, across most sectors,” Robert Sheffield, managing director at Morgan McKinley, said in a press release.

Satellite view. If this all sounds familiar, that’s because it is. Even with layoffs in the tech sector, many places in the US are struggling to find talent. Talent stateside has some similar aims to workers in Hong Kong, wanting more flexibility and mental health benefits.

“If you’re not in the right ballpark when it comes to pay and benefits, it’s going to be hard to get employees to fully invest their energy back into their jobs,” Anthony Klotz, associate professor of management at University College London, told the New York Times.

If you’ve got the good grass to begin with, you don’t need to convince the herd to stay.—KP