38% of Hong Kong firms saw salary freeze in 2020

More than one in four firms offered no increases last year.

Whilst salary remains a primary concern for 49% of employees and 58% of candidates in Asia, Hong Kong has seen salary freeze in 2020, with 38% of firms offering no increase, recruitment and human resources services provider Hays’ 2021 Asia Salary Guide report revealed.

Across Asia, 6% of companies didn’t raise pay, and this trend is expected carry on in 2021, with 37% of employers anticipating stasis and 4% forecasting decrement.

Since salary budgets would be tightened in 2021, recruitment funds would follow, with 36% of firms expecting staff numbers to increase. Some businesses (45%), however, anticipate headcounts to stay the same, with 56% in Hong Kong saying so.

“Despite the obvious hardships that we all faced last year, 55% of companies in Asia expect business activities to increase in 2021,” said Richard Eardley, managing director at Hays Asia. “Though this is a 4% drop on last year’s predictions, it shows a degree of confidence that if the corner has not yet been turned, it soon may be.”

Further, only 17% of firms across Asia expressed plans to cut back on temporary or contract hiring in 2021, with 68% of employers in Hong Kong planning to maintain their contractor headcount.