Hong Kong still attractive for bankers despite high living costs, senior headhunter says
- Hiring mandates up more than 40 per cent in private equity, real estate and venture capital, according to recruitment firm Selby Jennings
- Salary offers are flat after bumpy second half for banks
Hong Kong remains an attractive destination for portfolio managers and investment bankers looking to switch jobs despite its persistent reputation as one of the world’s most expensive cities to live in, according to a senior industry headhunter.
Abimanu Jeyakumar, the head of the Hong Kong office of financial services recruiting firm Selby Jennings, said the city remains a “key focus” for candidates, including ones based in other major financial centres such as London and New York.
“Hong Kong is seen as a gateway to one of the most interesting and fast-growing markets at this time: China,” Jeyakumar said.
Selby Jennings is one of five micro-specialist recruiting brands owned by London-based Phaidon International. It has 32 consultants in Hong Kong, as well as an office in Singapore.
Despite a bumpy fourth quarter for banks as Asian markets fell sharply last year, salaries and new offers have not declined, but remained flat, Jeyakumar said.
“What we’ve seen is a decline in aggressive sign-on bonuses, aggressive buyout packages and aggressive relocation packages for talent,” Jeyakumar said. “Banks are not having to roll out the red carpet with bells and whistles in order to attract top talent.”
In its Salary Survey 2019, Robert Walters, another specialist professional recruiting firm, said that it expects salaries in the financial services industry in Hong Kong to “rise in response to the pressure on talent pools”, but the level of increases will depend on specialisation.
The firm said it expects an average increase in remuneration of 15 per cent to 20 per cent for job movers, but specialised roles tied to artificial intelligence, blockchain technology or private banking could see increases of up to 25 per cent.
An investment banking vice-president in Hong Kong with seven or more years of experience received an annual base salary ranging from HK$1.8 million (US$229,000) to HK$2.4 million (US$306,000), plus a bonus of up to HK$2 million in 2018, according to Robert Walters.
The top range of the base salary for an investment banker with similar experience this year is expected to hit HK$2.6 million, according to the recruiting firm.
Jeyakumar said that hiring mandates are flat in traditional asset management and investment banking, with most banks waiting until the second half of the year “to look at bolstering teams based on deal flow and market sentiment.”
The biggest demand is for jobs in private equity, real estate and venture capital, with hiring mandates up more than 40 per cent at Selby Jennings, Jeyakumar said.
In private wealth management, hiring mandates are up more than 20 per cent, Jeyakumar said. In global markets sales and trading, they are up 10 per cent, particularly those related to China corporate sales, he said.
“I think hiring sentiment is more cautious this year than it was in the previous year,” he said. “The second half of last year wasn’t fantastic, so a lot of banks have tightened their belts.”
