Two-thirds of senior executives in Hong Kong, mainland China expect pay rise due to talent shortage, KPMG survey shows
- The number of senior executives expecting a pay rise increased by 53 per cent from last year, KPMG report says
- “Vast sums” are on offer to poach employees from competitors, leading to substantial increases as a retention strategy, one observer said
A shortage of talent may present a difficulty for hiring managers, but it’s good news for senior executives in Hong Kong and mainland China, two-thirds of whom across all sectors anticipate a pay rise this year, according to a KPMG survey. In addition, nearly half expect a bonus increase.
Optimism about pay increases jumped the most in the professional services and consumer sectors, where the number of executives expecting a pay rise increased by 100 per cent and 88 per cent over last year, respectively.
“It is about retention of good people, but professional services business have not been as affected as retail and hospitality businesses,” Jerry Chang, managing director of executive search firm Barons & Company said. “Firms need to retain good people and are also anticipating good business.”
Bonus expectations are running highest in the financial-services sector, with 55 per cent of respondents anticipating a heftier bonus than last year, which was 3.46 times their monthly salary, according to KPMG. About half the respondents in the real estate, consumer and information-technology sectors expect a better bonus this year.
“Banks in Hong Kong have now found themselves competing for talent on the ground,” said Andrea Randall, a partner at law firm RPC. “Vast sums are being offered to poach employees from competitors and, in response, substantial pay rises are being offered to retain staff.”