He said the huge demand for staff had forced companies to promote people to positions before they were ready. He said in many cases the employees were found to be out of their depth and were either transferred back to Hong Kong, dismissed or quit.

'For example, we have seen retail supervisors being promoted to store managers,' Mr Gollop said. 'This provides an opportunity for career progression, but it can also result in a situation where the person is not well enough equipped to handle the job. Promotions and pay increases can fill the gaps in the short term, but it creates long-term problems.'

Research carried out using ConnectedGroup's database of clients revealed that about 30 per cent of Hong Kong's frontline luxury retail staff had relocated to Macau. Many were enticed by promotions which, when combined with the cheaper cost of living and accommodation in Macau, resulted in significantly more disposable income.

Mr Gollop said while the company's network was not comprehensive, it was definitely indicative of an industry-wide trend. 'We spend a lot of time talking to people and we are pretty well up on what is happening with our clients,' he said. 'This figure is significant and will obviously have a big impact on the industry in Hong Kong and Macau.'

With so many high-rollers already attracted to Macau by the casinos, luxury shopping outlets are looking to cash in on the overflow. With each new casino that opens, comes a host of new retail outlets. According to the Macau Statistics and Census Service, the number of people employed in service and sales jumped almost 15 per cent in the year to March from 57,900 to 66,100. The median monthly wage for workers in the wholesale and retail sector was 6,800 patacas (HK$6,688) in the first quarter of this year, compared with 6,000 patacas in hotels and restaurants and 12,000 patacas in the gaming and cultural sector.

Mr Gollop said it was difficult for retailers to compete with the gaming sector when it came to starting salaries. 'There is a huge amount of competition for staff, many of the hotels are taking luxury-brand employees,' he said. 'Not to mention the competition from the gaming sector, it is very challenging as they can offer good starting salaries which makes things even more difficult.'

Nathan Byrne, associate director at Michael Page International, who is in charge of recruiting for retail and sourcing, said it was difficult enough to find enough staff for stores in Hong Kong. 'The retail market in Hong Kong alone is challenging enough,' Mr Byrne said. 'Then you have this really big demand from Macau and it is difficult to attract people to move. Employers really have to be flexible about what they are seeing on resumes and offer training programmes to bring people up to speed.'

Mr Gollop said, initially, many employers were happy to accept staff from Hong Kong who planned to stay in Macau for work and return to Hong Kong on days off. He said this had changed with the majority now realising the need for a commitment to relocate permanently. 'Employers are now more realistic about how they try to sell the opportunity, before they were willing to take whatever they could get,' he said. 'But the reality is if the staff do not put down roots and see Macau as their home, it is hard to see them as committed to the job and it is much easier for them to stay for a while and then decide to move back.'

Mr Gollop said it was imperative for companies setting up in Macau to implement sound succession planning and employ qualified senior staff. He said if there was a lack of talent at the top, the whole organisation suffered.

'The problem as we all know is that the growth in Macau has outstripped the supply of good qualified people, there has been a lack of foresight,' he said.

'What companies can do now is ensure they recruit good supervisors that have been trained to a level where they can deal with the customers and are able to train the people below them. Once you get to a situation where there is an inability to train the people underneath, nobody progresses effectively and the whole organisation is in trouble.'

Fact box

Up to 30 per cent of Hong Kong luxury retail staff accepting positions in Macau

Inexperienced staff promoted to senior positions

Luxury retailers struggling to compete with salaries offered in gaming

Need for more succession planning