Over a quarter of Hong Kong employees experienced 30% pay cut

Enterprises have been forced to reduce wage expenses to maintain financial health.

Over a quarter or 28% of Hong Kong employees have faced salary reductions of over 30% as a direct result of the pandemic, according to the COVID-19 Hong Kong Report published by JobsDB.

This is said to be attributed to various factors brought about by the pandemic, including reduced or suspended bonuses, suspension of salary increases, and salary freeze. The effects of the pandemic is expected to create a new normal, presenting new challenges that businesses will inevitably face

Furthermore, 18% of respondents have been temporarily or permanently retrenched whilst another 46% have been negatively impacted in terms of remuneration.

Since the pandemic, companies have transitioned to remote operation models, with 43% of surveyed employees having experienced working from home. Organisations have also continued to take preventative measures, with 41% of respondents open to more opportunities for remote working in the future.

JobsDB notes that companies across all industries will need to consider the adoption of new business models and restructuring their recruitment plans. Meanwhile, 27% of surveyed enterprises are planning to hire in the next six to twelve months, with 64% of vacancies being junior-level positions for fresh graduates and other career starters. However, 35% were uncertain about resuming recruitment at this stage, holding less positive views towards the near future of their industries.

In the coming six months, jobs in sales, customer services and business development (28%) will be in higher demand, followed by jobs in administration and human resources (20%), accounting (17%), as well as marketing and public relations (17%).

Moreover, 81% of hirers have stated that they will not factor pandemic-related retrenchments in their future assessment of candidates, whilst 14% have even revealed that they are more likely to hire job seekers who have lost their jobs due to the pandemic.

On the other hand, many enterprises have been forced to reduce wage expenses in order to maintain their financial health. Employees engaged in the food & beverage, tourism, advertising and marketing sectors have been most affected, with 18% of respondents facing temporary or permanent retrenchment.

Meanwhile, the current job happiness index of employees averages at 4.8, a significant drop from the pre- pandemic average of 6.1. The survey found that the most common concern amongst employees is job security (49%), followed closely by apprehensions over personal and family finances (45%). Moreover, 32% of respondents miss face-to-face communications with colleagues and customers, alongside the energy and spontaneity of office life.

JobsDB Hong Kong CEO Isaac Shao notes that companies need to take greater initiative in strengthening communications and providing emotional support for employees, and to better stimulate team spirit and bring a higher sense of belonging and achievement.

Many employees have also transformed their working habits due to the pandemic. Amongst the 43% of surveyed employees who worked from home, more than 60% are classified as being engaged in education, information technology, and public and civil services. Almost half or 48% of employees required to work from home had changed their times of work, and 43% were working long hours.

In addition, 41% of respondents would like to work more hours from home in the future, whilst 26% would prefer to work less hours.

Shao adds that the circumstances have also facilitated digital transformation in business operations, as more companies are introducing tools, such as cloud storage and video conferencing applications, which help strengthen productivity when employees work from home.