'Contractors are becoming an essential part of the workforce strategy'
More than three in five employers in Hong Kong are planning to hire contractors in 2024, challenging the financial hub's preference for long-term, salaried positions, according to a new report.
Robert Walters' survey among over 300 business decision-makers in the financial hub revealed 63% are going to hire contractors this year.
This is much higher than the 52% of companies who said they had already begun contractor recruitment in 2023.
The findings come despite the prevailing "traditional mindset" in Hong Kong where they prefer long-term, salaried positions as the ideal career path, according to Robert Walters.
"Contractors are becoming an essential part of the workforce strategy, providing the agility and specialised skill sets that organisations require to adapt under uncertain economic times," said Matthew Sullivan, senior manager of Robert Walters Hong Kong financial services contract division, in a statement.
The top reason why employers are turning to contractors include the ability to staff short-term assignments, which is cited by 43% of decision-makers.
Other reasons include the lack of permanent headcount budget (29%) and the need for specialised skills and expertise (20%).
Finding skilled contractors
But the strong demand for contractors is also coupled with challenges in hiring them, according to the report, which found that 51% of employers are struggling to find skilled contractors.
Younger employees, who have grown more open contract roles, may be a great source of talent pool for the shortage.
"It has become increasingly common for professionals to take on contractor roles to gain exposure to new industries, technologies, and projects in a short space of time," said Pinki Chan, manager of Robert Walters Hong Kong tech & transformation contract division.
Chan added that contract roles provide young professionals with the "perfect springboard" to be the best in their field.
"While it can open the door to a new industry or type of work, contractors can enjoy higher flexibility to plan longer holidays and go for training to upgrade their skills," Chan said.
Six in 10 talents in the Greater Bay Area (GBA) who are looking to work in Hong Kong revealed they are open to being employed as contract workers.
"This suggests a more favourable view of contractor roles in the region, as opposed to the traditional Hong Kong mindset against contracting work," the Robert Walters revealed.
"The growing openness to contractor roles among the GBA talent pool presents an opportunity for employers to bridge their skills gap."
