Hong Kong is seeing some pre-pandemic trends make a return, which could mean recovery is in full swing.
By Zee Johnson
Hong Kong organisations are getting more aggressive in their recruitment efforts and they’re using pay raises to get ahead. WTW’s 2023 Hong Kong Pay Review Survey found that Hong Kong’s median pay increase reached 4.5% so far this year, up from 4.3% in 2022, 3% in 2021, and 2.9% in 2020. Further, 44% of respondents said they have a higher salary increase budget this year than last year, a trend that could signify a return to pre-pandemic salary increases.
The survey found that construction and engineering businesses had the highest pay increases (5.3%), followed by these other industries that also saw hikes.
- Food and beverage industry (5.2%)
- High tech and media (5.0%)
- Insurance (4.9%)
- General financial services (4.8%)
- Banking (4.5%)
- Consumer products (4.4%)
Wen Wan, head of work and rewards, Hong Kong, WTW, said in the survey that some industries are witnessing growth by governmental design. “The high tech and media industry has also seen an increase of 5.0%, which aligns with the government’s commitment to grow the digital economy and establish Hong Kong as an international I&T centre,” he says.
He also says that this is a sign that things are looking up for the city as talent no longer feels the need to jump ship. “The competitive compensation strategies across businesses are a clear sign that the road to recovery is well underway in Hong Kong, with a slowing of talent outflow from the city as it re-establishes its status as a global hub,” he said.
The pay increases come just as the Hong Kong government increased its minimum wage to $40 per hour last month, the region’s real GDP experience a 2.7% year-on-year growth, and unemployment rates dropped to 3.1%.
