Contract work spikes as employees seek flexibility and work-life balance

Employers target Gen Z professionals because they prefer flexible work.

In Hong Kong, 63% of employers plan to hire contractors in 2024 amidst strong demand for contract roles, Robert Walters reported.

Of them, 51% began recruiting contractors in 2023, whilst 12% did not hire contractors during the same year.

The demand for contract talent is notable in industries including IT, accounting and finance, human resources, and business support.

Robert Walters also found that the key reasons employers are turning to contract workers include the ability to staff short-term assignments (43%), the lack of a permanent headcount budget (29%), and the need for specialised skills and expertise (20%). 

The emergence of contract work is also fueled by the rising demand of short-term projects and the insurgence of a new generation of workers prioritising skill advancement and flexibility, despite traditionally viewing such work as “less stable and culturally unacceptable’.

Amongst Gen Z professionals, 9 in 10 prioritise remote or hybrid working to achieve work-life balance, making them a prime target for contractor positions. Additionally, flexible working arrangements are the most common perk employers offer (35%) to attract contractors.

However, 51% of employers seeking to hire contractors in Hong Kong are being challenged by a talent crunch, prompting them to explore new avenues to find the specialised expertise they require.

For example, employers are expanding their search for contractors beyond the local talent pool to the Greater Bay Area (GBA), supported by Hong Kong's Top Talent Pass Scheme (TTPS), which has experienced an increase in issued working visas.

Notably, 60% of GBA talent looking to work in Hong Kong are willing to consider contract roles, indicating a more positive perception of contract roles compared to traditional views in Hong Kong, thereby aiding employers in addressing the skills gap.

Robert Walters over 300 business decision-makers across multiple sectors about their contractor hiring plans and challenges.