Hong Kong’s economy is projected to grow at an average of 3.2% annually from 2025 to 2028. This growth is fueled by investments in financial services, property, healthcare, and technology. Government initiatives like the New Capital Investment Entrant Scheme and the Northern Metropolis project are also expected to attract businesses and talent, further boosting economic activity.
Key sectors such as technology, life sciences, and construction are poised for significant developments. For example, the life sciences sector is expanding with HK$10 billion in government funding, while the technology sector is advancing in areas like AI, cybersecurity, and cloud solutions.
Talent Scarcity and Hiring Challenges
Despite economic growth, talent scarcity remains a critical challenge for employers. A staggering 62% of employers report a shortage of skilled workers, with 46% struggling to meet salary expectations. This shortage is particularly pronounced in revenue-generating roles like sales and business development, as well as technology positions.
To address this, companies are offering competitive salary increments, with job switchers in technology roles seeing increases of 18-20%. Employers are also enhancing benefits such as health packages, flexible work arrangements, and career development opportunities to attract and retain talent.
Shifting HR Priorities
HR professionals in Hong Kong are transitioning from traditional administrative roles to becoming strategic business partners. Companies are prioritizing succession planning and leadership development to ensure business continuity and improve organizational culture.
While the demand for learning and development roles has declined, these professionals are expected to implement robust skills programs to build leadership pipelines. Additionally, HR candidates with strong communication skills are highly valued, especially for managing sensitive conversations like layoffs and performance management.
Salary Trends and Workforce Dynamics
The 2025 job market is marked by cautious optimism. While 54% of employers plan to maintain headcount, 34% aim to expand their teams, particularly in sales, business development, and technology roles. However, tight salary budgets are a concern, with 62% of employers anticipating financial constraints.
For HR professionals, salary increases of 15-20% are being offered for senior roles, while junior to mid-level roles see increments of 10-15%. Chinese companies are also increasingly hiring mainland Chinese talent to manage HR and payroll across Greater China, reflecting a shift in workforce dynamics.
Emerging Trends in Workforce Expectations
Diversity, equity, and inclusion (DEI) are becoming critical factors for both employers and job seekers. "Equity" has emerged as the fifth most important value proposition for employees, highlighting the need for inclusive workplace practices.
Additionally, contracting roles are on the rise in sectors like technology, education, and healthcare. However, job seekers continue to prefer permanent positions for stability, creating a gap between employer offerings and candidate expectations.
Strategic Insights for HR Professionals
To navigate the evolving talent market, HR professionals must align their strategies with business goals and workforce demands. This includes:
- Enhancing Employee Value Propositions: Offer competitive salaries, flexible work arrangements, and robust career development programs.
- Focusing on Leadership Development: Build strong leadership pipelines through targeted skills programs.
- Adapting to Workforce Trends: Embrace DEI initiatives and address the growing preference for permanent roles.
- Leveraging Technology: Invest in digital transformation and AI integration to stay competitive in the talent market.
By addressing these priorities, HR professionals can position their organizations for success in Hong Kong’s dynamic talent landscape.
