Hong Kong's C-suite optimistic about hiring despite challenges in talent matching

Headcount expectations of C-suite members in Hong Kong are still optimistic in 2024, despite talent matching challenges in the past year, according to a new report.

The latest survey from KPMG found that only 26% of 1,103 business executives and professionals in Hong Kong expect to see increased headcounts within their organisations.

But the figures go higher to 41% for C-level respondents, according to the report, which noted that this may be a "better indicator of future trends" as these individuals have better insight into their organisations' plans.

Another 41% of C-level respondents expect no changes in headcount this year, while 14% said they are expecting a decrease.

"This year's results signal that there will continue to be demand from C-level executives for talent that can drive performance," said David Siew, Partner, People Services, KPMG China, in a statement.

"Ongoing business transformation and the changing business environment will mean that roles and responsibilities will continue to evolve. In 2024, accessing more diverse talent pools and talent matching will be key for employers."

Talent challenges for HR

The findings come despite 97% of C-level and HR respondents saying they experienced challenges in hiring the right talent.

Among them, 63% said these challenges were "unmanageable," with respondents from the consumer markets sector most likely to say this.

"We see challenges around enterprises failing to match talent with job positions and employees lacking the specific skills sought," said Eric Cheng, Director, Executive Search and Recruitment (Hong Kong SAR), KPMG China, in a statement.

"Against this backdrop, organisations can consider investing in training existing staff to retain talent and accessing additional recruitment channels to find new talent. Relatedly, professionals looking to make career moves may need to upskill to meet the needs of the market."

Recruitment in Hong Kong

In 2023, 90% of C-level and/or HR respondents said they hired talent within Hong Kong.

But nearly half (48%) said they also tapped on the Chinese Mainland for job candidates, and 31% said they looked further overseas.

Isabel Liu, director, People Services, KPMG China, said this indicates that employers in Hong Kong are taking advantage of the new immigration schemes implemented in the region.

"Going forward, the city's employers should consider how they can leverage these opportunities and attract and retain talents in order to deliver long-term benefits to their enterprises," Liu said in the report.