The findings of the report – which examine a number of business sectors – reinforce the impression that there is a tight labour market in the jurisdiction.

Business executives in all sectors across Hong Kong predict a rise in headount will occur and that bonus payments will rebound, with strong competition for talent. The findings from KPMG chime with reports – as noted here – of how strict anti-Covid policies have squeezed labour markets in Hong Kong.

Some 35 per cent of respondents said they expect to increase hiring at their Hong Kong operations this year, KPMG China’s latest Hong Kong Executive Salary Outlook 2022 said. A total of 794 executives took part in the exercise conducted by YouGov between 3 and 16 January.

There was a 21 per cent improvement in the net proportion of respondents anticipating an increase in headcount this year (net 25 per cent increase in 2022 versus a net 4 per cent increase in 2021).

“Despite the short-term impact of the fifth wave of the pandemic in Hong Kong, recently announced relaxations will hopefully spark a return of the optimism in line with the survey,” Murray Sarelius, head of people services, KPMG China, said.

Whether his optimism is borne out remains to be seen. In the short run, Hong Kong’s strict measures against the pandemic have, in addition to the changing politics of Hong Kong, encouraged an exodus of some non-domestic bankers from the former British colony. As a result, those who remain have been in a stronger position to push for salary and bonus increases.

The report said that across both C-level executives and human resources professionals, the prevailing view is that revenue generators, such as sales staff, fee earners and client relationship managers, will be the main area of focus for new hirings, followed by operations and IT. 

In terms of sectors, professional services (44 per cent) and financial services (39 per cent) are the most eager to increase headcount, reflecting rising demand as businesses tackle new regulatory measures, focus on ESG initiatives and a tight employment market.

Respondents consistently rated salary and compensation package (71 per cent), career progression and promotion (48 per cent) and organisational culture (44 per cent) as the primary motivations for seeking a new job. The financial services sector offers the most diversified benefits packages to its employees, the survey found.

In late March, Bloomberg reported that finance workers in the city would usually obtain a 15 per cent pay rise when moving to a new employer, but now it is more likely to be between 20 to 30 per cent, the news organisation quoted a headhunter as saying. An outflow of bankers, particularly Westerners, from Hong Kong means that those who remain have more labour market leverage.

WealthBriefingAsia has heard from industry sources that many Western bankers who had moved out to Hong Kong in recent years were waiting for the late winter/spring bonus season before heading back home. Besides the strict measures against the pandemic – still in force with some relaxations – the mainland’s national security law of 2020 and unrest in Hong Kong has taken some shine off its image.