Study shows Hong Kong employees seeking pay hike

Yet 93% of employers surveyed plan to maintain or increase headcount next year.

The majority of Hong Kong employees will seek pay increases of up 10% in the year ahead as business leaders see promising local growth, despite global economic pain, according to the findings of the Randstad World of Work Report 2011/2012 released on Wednesday.

The report found 43% of employees will be seeking a salary increase of up to 5-10%, while 29% felt that a 10% rise was more appropriate. Just 19% will be seeking a 4% rise.

Randstad Hong Kong Director Brien Keegan said, "Hong Kong employers have largely been insulated from the financial woes experienced in North America or Europe and this is reflected by the positive outlook business leaders have for the next year. However, this optimism is tempered by challenges in connection with retaining and attracting talented professionals in an increasingly more expensive and competitive market."

This year's Randstad World of Work Report includes the opinions and feedback of 380 business professionals in Hong Kong. The research is part of Randstad's annual Asia Pacific study that gathered the perceptions of 8200 employees and employers to better understand the human capital challenges existing in the region today.

The report found that almost a third (30%) of employers see attracting talent for the next phase of growth as the single biggest human capital challenge for the next 12 months. The vast majority of employers (93%) plan to maintain or increase headcount, with 59% planning to hire more full-time staff.

Emphasising the need for retention strategies is reflected in the fact 65% of employees said they intend to leave their job in the next 12 months due to lack of opportunity for career progression. This is double the number of employees that will leave due to uncompetitive salary and benefits.

"These findings highlight the need for organisations to work closely with employees to develop individual career paths and think creatively about how to offer opportunities for growth. Our research found that organisations are beginning to respond to this trend, with two-fifths planning to increase investment in training and development, and 66% committing to up-skill their current workforce as a way to alleviate critical skills shortages," said Mr Keegan.

Employees also said getting recognition and a sense of achievement in their workplace are crucial to staying with their current employer.

"While 65% of employees may be getting ready to move on, the rest say they will stay put which shows that Hong Kong employers are listening, and beginning to deliver on career mapping and development," Mr Keegan said.

Other key findings of the research include:

• Interestingly, 69% of Hong Kong respondents said they would take a pay rise over a promotion to a more senior position if they had the choice.
• Half of those surveyed believe the single biggest attribute of a successful leader is the ability to motivate and inspire others, yet 48% rate their direct manager's ability in this area as poor or average.
• In the coming year, 58% of employers surveyed will offer leadership and career development as a benefit to retain employees, and 61% will offer general training and development.
• 52% of respondents agree that the nation's ageing workforce will have a negative impact on their organisation in the next ten years.
• 47% of all employees surveyed believe their organisation doesn't have effective processes to capture ideas for business improvement or innovation.