Hong Kong firms step up talent fight as skill shortage bites

Companies are offering flexible work and  training to attract workers.

Hong Kong employers are intensifying efforts to hire and retain technology professionals as labour shortages and rapid digital transformation reshape the city’s job market.

Software engineers, data scientists, and artificial intelligence (AI) specialists are among the most sought-after roles, with companies offering flexible work, training programs and stronger employer branding to compete for talent.

“The demand for these jobs will remain robust over the next five years,” Lancy Chui, senior vice president at ManpowerGroup, Inc., told Hong Kong Business in an emailed reply to questions. “The ongoing digitalisation and automation trends will continue to fuel the need for tech talent.” 

To stay competitive, companies are boosting employer branding, offering flexible work, and investing in development programs. Many are also rolling out mentorship and reskilling schemes to help workers adapt.

Benjamin Elms, managing director at Randstad Hong Kong, noted that despite government efforts to attract skilled workers, employers still struggle with scarce talent and shifting worker expectations.

“To improve the situation, companies are complementing government efforts by strengthening their employer brand,” he told Hong Kong Business in an emailed reply to questions. A recent Randstad survey found that 24% of employers plan to invest in employer branding to improve recruitment efficiency.

Organisations are also tailoring work culture to attract staff, focusing on stability, flexibility, and professional development, all of which are “key priorities for talent,” he added.

Randstad’s 2025 Job Market Outlook showed that 62% of employers cited skill shortage as their top challenge, whilst 46% pointed to salary pressures. Elms said businesses are caught in a “double-whammy” — needing to cut costs in a fragile global economy whilst still offering competitive pay to appeal to both local and global workers.

Some firms are using technology to ease the strain. “Rather than having large teams doing data entry work, companies can now automate data collection and management, and create more high-value jobs focused on data analysis,” he said.

He added that 30% of employers surveyed plan to increase hiring budgets, especially for technical roles, signalling selective investment in high-value talent.

Employers are also rewarding proven performance. “They are evaluating candidates based on their track record in delivering results in a digital-forward environment, which can give eligible candidates a strong position in salary negotiations.”

Demand for sales and business development roles remains high, he added, with marketing and human resource jobs also increasingly tied to revenue targets.

The Hong Kong government has been reforming its talent admission regime to address shortages. By August 2025, it had received more than 520,000 applications under its various schemes, approving over 350,000. More than 230,000 people had already arrived through these channels.

The measures include updating the city’s Talent List to align with its “eight centres” strategy, expanding the Top Talent Pass Scheme to 198 universities, and extending the first visa validity for high-income talent to three years.

In August, the Committee on Education, Technology and Talents held its first session with a new Panel of Advisors, with the aim of making Hong Kong an international hub for skilled professionals. But even with reforms, experts warn the challenge is far from over.

“While these strategies are effective, their sustainability may be challenged by economic pressures, necessitating continuous investment in employee engagement and development,” Chui said.