A survey conducted by the Hong Kong General Chamber of Commerce (HKGCC) between 10 January and 21 January has found that 40% of companies were feeling adversely affected by the spate of emigration from the city and were losing key skilled talent from all sides.
Larger organisations were reported as being the most affected by the outward flow of talent and expected their employee turnover rate to increase in the coming 12 months. This sentiment was shared by SMEs though not to such an extent as larger businesses. Employees aged between 30-39 and 40-49 were reported as more likely to depart Hong Kong as were those in first-level and middle management roles.
Professionals skilled in Engineering, Finance and IT were reported as the largest brain drain with each accounting for more than 20% of an organisation’s loss. The UK, Canada and Australia were the most popular destinations for emigrating employees whilst better development for children, political considerations and higher quality of life were given as the largest push factors.
Both SMEs and large organisations rank the loss of skills and knowledge as their top concern. Large organisations also listed an increase in vacancies and extra workload for existing employees as their remaining top 3 whilst SMEs too placed workload concerns third, they were also worried about the disruption to daily operations and relationships with their customers.
To minimise the emigration impact to their operations, large organisations reported that they were looking to strengthen their succession planning and recruitment efforts as well as increasing their reliance on automation and pay and benefits. SMEs are pivoting by shifting their overall business strategy and plans and embracing digitalisation.
Chairman of the HKGCC, Peter Wong Tung-shun said, “Hong Kong is facing an exodus of educated workers on a scale not seen since the early 1990s and this will have a material knock-on impact on the economy. The global competition for talent is already acute and Hong Kong cannot afford to lose the race to attract and retain talent. To stem the tide of departing workers, it is essential that the government regularly review its policies to ensure that Hong Kong remains an attractive place to live, work and raise a family.”
Paul Arkwright
Publisher
