Almost three-quarters of all businesses in Hong Kong are suffering from the ongoing talent shortage, which is affecting a broad range of sectors, according to the findings of Hong Kong General Chamber of Commerce’s (HKGCC) Talent Shortage Survey 2023.
A total of 74% of respondents reported that they were wrestling with a shortage of talent, 61% of whom said they had been facing talent shortages for 1 to 3 years. The survey also revealed that the biggest shortfall in talent was for junior-level management at 59%. At the other end of the scale, the job level least affected was senior management, with just 1% of respondents reporting a lack of talent.
Hong Kong saw an outflow of talent during the pandemic with the workforce shrinking by 210,000 between the start of 2019 and the end of 2022, with 94,100 people exiting the workforce in 2022 alone. When asked what were the top three reasons staff resigned, respondents said desire for higher pay (79%), emigration (70%), and desire for a better work-life balance (51%).
As the city’s business competitiveness hinges upon talent, the brain drain needs to be urgently stemmed. Difficulty in hiring required talent to drive businesses forward might force companies to relocate part or all of their operations out of Hong Kong. The Government on 16 May expanded the talent list from 13 to 51 job types under the Quality Migrant Admission Scheme, the General Employment Policy and the Admission Scheme for Mainland Talents and Professionals. This was a positive move as the survey, which was conducted in April, showed that only 20% of respondents had applied for the government schemes, as the job categories covered were not relevant to their companies (52%).
To address the loss of talent, most companies interviewed have resorted to offering better remuneration packages (83%). Investing in employee development (58%) came second, demonstrating the importance of re-skilling and up-skilling to keep employees engaged and unleash their potential. Investing in automation to reduce the company’s reliance on manpower (49%) came third, while 21% said they had relocated part or all of their operations out of Hong Kong.
Recruiting talent from the Greater Bay Area (GBA) was deemed as the top short-term measure for alleviating manpower shortages, with 44% of respondents stating a wider and simplified criteria for the talent schemes would attract more non-local talent to Hong Kong. For long-term measures, targeted education and training initiatives would be needed to assist companies to retain, retrain and attract talent (47%).
About the survey
The HKGCC Talent Shortage Survey was conducted in April 2023. A total of 196 HKGCC companies responded to the survey, with 54% of respondents employing more than 200 staff, while 28% employed 50 or fewer staff.
Slides can be downloaded here.
Media inquiries: Please contact Mr Edward Wong at 2823-1297 / [email protected]