Hong Kong must staunch the outflow of talent in civil service

Multiple initiatives are in place to stem the outflow of civil servants and recruit new talent, but departures continue
The government should explore changes to officers’ retirement age, sweeten benefits packages and offer tailor-made training and promotion to those who excel

Regina Ip

Published: 6:16am, 23 Jul 2023

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In response to recent questions on Hong Kong’s drop in competitiveness ranking in this year’s World Competitiveness Yearbook, Chief Executive John Lee Ka-chiu acknowledged that brain drain and population decline were factors affecting Hong Kong’s ranking.

The government has rolled out multiple initiatives to stem the outflow and recruit fresh talent, but record numbers of civil service departures are spreading concerns in the community. Government statistics released in mid-July, in response to a media inquiry, show that in 2022 there were 10,126 departures, including a record 3,863 resignations, representing 38 per cent of the total.

Even more worrisome is the rise in resignations from the elite Administrative Service. They rose from 19 in 2014-15 to 36 in 2022-23, of which 21 were directorate officers.

The picture regarding the Executive Officer (EO) grade, an important supporting cadre in government, is equally bleak. The numbers of EOs resigning from government have surged from 46 in 2017-18 to 153 in 2022-23.

The spike in departures is part of a broader emigration pattern in recent years, but the outcomes are worrying. The Administrative Service is the most selective and highest-paid civil service grade in government, with the entry-level salary starting at HK$57,395 (US$7,350) per month, highly attractive to young graduates. Yet, despite the high pay, applications for entry positions in the Administrative Service have dropped from 19,000 in 2016-17 to 9,300 in 2022-23.

The Hong Kong government has struggled to retain civil service officers in recent years, with more than 10,000 leaving in 2022 alone. Photo: Xiaomei Chen

Historically, the Administrative Officer (AO) grade is a general management grade. It was introduced by the British in many parts of the British Empire and extended to Hong Kong. According to sinologist Teng Ssu Yu’s 1943 monograph “Chinese Influence on the Western Examination System”, competitive civil service examinations were introduced in England in the mid-19th century, through the influence of diplomats, scholars and missionaries who learned about the examination system in China.

The AO grade was the near-exclusive preserve of expatriate officers recruited in Britain until massive social and housing programmes launched in the 1970s forced the government to open the floodgate to locals. A record number of locals were recruited in 1973.

AOs were groomed to be the top managers and leaders in government. Until the introduction of the political accountability system by then chief executive Tung Chee-hwa in 2002, they were the key decision-makers, filling nearly all the top positions in government.

Despite the change, politically appointed bureau directors from outside the government rely heavily on the senior AOs for their expert knowledge, experience and extensive network in government to get things done. This prestigious bedrock of government is an example of the meritocratic state at its finest.

Multiple reasons can be identified for the decline in attractiveness of this linchpin cadre in government. Ever since the changeover in 1997, the rise of populist politics has seen the civil service frequently come under fire. The tide of violent public protests beginning in 2014 brought a sea change to the environment in which local civil servants have been working.

AOs were dubbed “political officers” in the British era, but the local politics they contended with in the old days pales in comparison with the much more turbulent global politics they have to confront today. Many AOs joined the government with a sincere wish to serve the community, but for many who aspire to a balanced, middle-class life, taking sides in a great geopolitical struggle is too taxing.

Riot police stand guard on Paterson Street in Causeway Bay on June 28, 2020, in response to an online call for a protest march from Victoria Park in Causeway Bay to Tamar in Admiralty against the Hong Kong national security law. The tide of public protests beginning in 2014 brought a sea change to the environment in which local civil servants have been working. Photo: Edmond So

By contrast, many non-government public bodies offer much higher pay and a less stressful life. As statutory authorities – particularly those on the economic and financial side – expand their remit, more senior AOs well-trained in government rules and regulations are tempted to decamp to greener pastures.

The abolition of pension benefits for civil servants who joined the government from June 1, 2000, has not helped to retain talent. After their Civil Service Provident Fund benefits provided by the government have maxed out, there is little to bind them to the government.

Civil service unions and political appointees have also made repeated complaints that they are not getting the medical attention and care from the overburdened Hospital Authority promised in their contract of employment. Corporations, universities and statutory authorities offer superior overall pay packages for their senior staff, particularly in terms of bonuses and medical insurance benefits.

Why are mainland Chinese professionals dominating Hong Kong’s talent hunt?

Even in these difficult circumstances, many highly competent and dedicated AOs have held fast. Their input is invaluable and their performance well-recognised. The trouble is several experienced officers will reach retirement age in the next few years. Their departures, in accordance with retirement age rules, will be sorely missed.

The government should explore extending the retirement age for AOs and sweeten their package by providing better medical benefits before and after their retirement.

Pay tied to individual performance is not feasible for a large public service organisation where teamwork is paramount. However, individual officers who have excelled in performance and commitment should be singled out for tailormade advanced training, accelerated promotion and public recognition.

Many dedicated members of the AO grade want to preserve the prestige of the grade. They need to think hard about how to bring up a new generation of dedicated AOs.

Otherwise, if the departures continue, the powers that be will have no choice but to accelerate the replacement of local officers with new Hongkongers – permanent residents from the mainland who will have acquired the language and technical skills to function seamlessly in government and are more imbued with the kind of mindset that meets the high expectations of the country.

Regina Ip Lau Suk-yee is convenor of the Executive Council, a lawmaker and chairwoman of the New People’s Party