Local salaries ride China wave
HONG KONG'S STANDING as a central financial services hub has been further reinforced following the release of findings from a global salary survey, which concludes that Hong Kong is benefiting greatly from Chinese economic growth, mainland companies conducting public listings and growth in international trade.
According to the eighth consecutive salary survey conducted by recruitment firm Robert Walters, investment bankers are in a favourable position because they are able to command a premium when changing jobs.
'High-calibre candidates are receiving multiple offers, which has driven up salary levels,' the report stated.
'In parallel, counter offers are becoming more common, with employers willing to pay huge premiums to retain quality staff. Early promotions and internal transfers to more challenging roles are also being used as a means to encourage retention.'
The news is just as positive for candidates in corporate banking, particularly frontline sales staff, relationship managers and product specialists, and accountants, sales and marketing, and human resources professionals in the banking sector.
The financial services sector is creating healthy demand for information technology professionals, where investment banks have created huge demand for IT personnel.
A network planning engineer can now command more than HK$500,000 a year, while an IT manager is able to earn more than HK$1million. Strong growth for skilled IT professionals is expected throughout this year.
On a global scale, one of the key highlights of the survey is that qualified accountants are in short supply, with accountancy firms prepared to invest more to retain the best people, which is also reflected in the growing need for employers to adopt highly flexible resourcing strategies.
Key findings of the global Robert Walters Salary Survey 2007 are:
Japan The growing economy has created an increase in demand for skilled professionals across all industries, in particular in the pharmaceuticals, medical devices manufacturing and other hi-tech industries. Employers are prepared to look abroad for talent.
Singapore Strong demand for candidates with foreign language skills and for Asians returning after gaining experience in Britain and the United States. Singapore is also a growing hub for regional back-office, middle-office functions and IT support functions for the regional banking industry.
Continental Europe Higher staff turnover levels, especially in the financial services industry, reflect a tendency for candidates to move to rival companies for better salary packages.
Australia Western Australia is booming, driven by developments in the energy and mining industries. There is an engineering boom in South Australia, with salaries for engineering graduates exceeding those in Melbourne and Sydney. In Sydney, qualified accountants are enjoying healthy salary increases.
New Zealand Some candidates are recruited even before they arrive in the country, to prevent them entering the local job market. Unemployment in the country is at a historically low level.
Despite recruitment levels being at a high in Hong Kong, a recent survey by ECA International, the world's largest membership organisation for international human resources, suggests the salary gap between Hong Kong and the mainland is shrinking and may result in a 'brain drain', as local professionals move north for attractive salary packages.
The ECA International Salary Trends Survey is conducted annually and aims to establish actual and predicted salary increases for markets around the world. Forty-five countries are included in the survey.
The survey revealed that the average senior manager on the mainland earned about 50 per cent of what a counterpart would earn in Hong Kong. In 2002, the mainland-based manager earned only 30 per cent of that. Lee Quane, general manager of ECA International in Hong Kong, said salary increases at senior level had outstripped China's GDP growth, reflecting a talent shortage on the mainland.
