Hong Kong's HR sector grapples with inefficient hiring processes: report

73% of HR professionals rated their company’s process as average or below in efficiency.

In Hong Kong, 33% of HR professionals lack confidence in their organisation’s hiring processes despite heightened competition to recruit talent, TransUnion reported.

Seventy-three percent rated their company’s process as average or below in efficiency, whilst more than half cited a lack of thoroughness (64%) and effectiveness (54%).

Whilst 91% agree that efficient screening tools enhance recruitment, 70% often find their organisations' reference checks inadequate for evaluating candidates.

TransUnion also revealed that talent shortage (88%), limited HR budget (85%), and engaging passive candidates (78%) are amongst key hiring challenges.

When it comes to credit checks, 80% of HR professionals check financial stability for candidates in finance, security, and management roles, especially in business services (96%), financial services (80%), and insurance (78%).

In addition, 89% agree that hiring the wrong people increases turnover rates whilst 74% believe it heightens reputational, legal, and financial risks.

The study also highlighted the importance of credit checks, with 18% reporting cases of employees involved in debt or financial misconduct.

However, only 5% use credit checks in hiring, despite 52% agreeing they enhance recruitment efficiency. Although 71% recommend credit checks, data privacy concerns (34%) and limited budgets (30%) remain top concerns.

TransUnion surveyed senior HR professionals in Hong Kong about hiring challenges and the importance of effective screening tools.