Hong Kong professionals should expect salaries to remain static in 2024, with 81 per cent of employers saying increments will be below 6 per cent, according to Robert Walters Group. Employers in the city are taking a conservative approach and prioritising cost-control strategies, according to the recruitment firm’s global salary survey for 2024. Only 58 per cent of professionals anticipate a pay rise next year, the survey found. Among those not expecting an increase, 68 per cent stated that the industry or business they work in has been heavily impacted by the current economic climate. “The market is slowly improving, although employer and candidate confidence remains quite fragile,” said John Mullally, Robert Walters’ managing director in Hong Kong.
The firm surveyed 300 candidates and 150 companies in Hong Kong between October and
Across industries, the salary adjustments for most functions are expected to be around 1 per cent, with the exception of the construction, property and engineering sectors, which are expected to record 3 per cent growth in 2024. Employees hoping for a bigger pay rise by changing jobs should also not expect major changes. Salary increments through job changes in 2024 are expected to be between 5 and 10 per cent, on average. This is lower than the average of 15 to 20 per cent this year.
The job market in Hong Kong has faced significant challenges in 2023 amid concerns of a global recession, Robert Walters said. Job cuts are expected to continue in 2024 in some areas, such as investment banking, due to over-hiring that took place in the 2021 to 2022 period. Hiring in Hong Kong has been focused on mid-level positions this year. Departures and downsizing at senior levels have led to these roles being staffed with more junior candidates. This trend further reflects employers’ desire to cut costs.
When asked about confidence levels about job opportunities in their fields, only half of the candidates reported feeling optimistic, compared with 63 per cent in December 2022. The desire for career progression was the primary factor driving job changes, with nearly three quarters of employees revealing they were actively seeking new jobs. More than half of the employees surveyed said they would consider a counter offer from their current employer, even after accepting a new job offer.
“As pay expectations moderate, employees are increasingly prioritising job security and career development opportunities,” Mullally said. Contract hiring in the technology, financial services and commerce sectors is likely to increase in 2024, as employers seek a more flexible workforce that is ready to adapt to changing business conditions. “Companies were looking to artificial intelligence [AI] to deliver improvements in productivity and increasing automation of processes,” Mullally said. “The demand for candidates with expertise in AI continues to rise, [and] candidates with a deep understanding of building and utilising AI models are highly sought after.”
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