Hong Kong recruiting and hiring system

Hong Kong, a global financial hub and gateway to the East, boasts a robust and dynamic labor market, attracting talent from around the world. With a highly educated workforce and a blend of local and international professionals, Hong Kong’s employment landscape is both competitive and diverse.?

In 2023, over 30% of the workforce held a bachelor’s degree or higher, making it a fertile ground for businesses seeking top-tier talent.?

In this article, we explore the Hong Kong recruiting and hiring system landscape to help businesses navigate it in search of the city’s best talent.

Overview of the Recruiting and Hiring System in Hong Kong

As of the latest data, Hong Kong’s labor force comprises approximately 3.82 million people, with an employment rate of around 97.1%. The city’s unemployment rate has been relatively low, hovering at about 2-3% over the last few years.

In fact, a declining population and increased emigration are set to squeeze Hong Kong’s talent pool, possibly creating a surplus of open positions in the coming years. Moreover, Hong Kong’s status as a global trading hub ensures a steady demand for professionals in logistics and supply chain management.

Other key sectors driving employment include finance and banking, trading and logistics, tourism, and professional services.?

Employment contracts in Hong Kong are generally straightforward, often delineating terms clearly to comply with local laws. The Employment Ordinance is the primary legislation governing employment relations, ensuring basic rights and protections such as paid annual leave, statutory holidays, and sickness allowances.?

Additionally, the Minimum Wage Ordinance mandates a minimum hourly wage of HKD 37.50.

Standard working hours typically span 40-50 hours per week, depending on the industry, with overtime pay being a common practice in compliance with the law. The Mandatory Provident Fund (MPF) scheme requires both employers and employees to make contributions towards retirement savings, as well.

Overall, Hong Kong’s recruiting and hiring system is well-regulated, efficient, and supportive of both businesses and employees. This makes it an attractive destination for global talent and enterprises alike.

Recruitment Channels in Hong Kong

With a robust economy and modern job sector, Hong Kong offers a diverse variety of recruitment channels for businesses and job seekers:

• Traditional Recruitment Agencies: Prominent agencies like Robert Walters, Michael Page, and Hays specialize in various sectors and provide personalized recruitment services.

• Online Job Portals and Websites: Leading platforms include JobsDB, CTgoodjobs, and Indeed Hong Kong. These portals offer extensive job listings and advanced search functionalities.

• Professional Networks and Social Media: LinkedIn is also a widely used tool for professional networking and recruitment in Hong Kong. Industry-specific platforms like eFinancialCareers cater to specific sectors as well.

• University and College Career Services: Top universities, such as The University of Hong Kong (HKU) and The Hong Kong University of Science and Technology (HKUST), offer many career services, including job fairs, internships, and placement programs to connect students with employers.

• Government Employment Services and Programs: The Labour Department’s Interactive Employment Service (IES) and the Office for Attracting Strategic Enterprises (OASES) provide comprehensive job-matching services and support schemes. Programs like the Top Talent Pass Scheme aim to attract global talent to Hong Kong.

Hong Kong Visas and Permits for Foreign Workers

Hong Kong faces a high demand for skilled workers and an efficient visa process, facilitating an international workforce. However, there is also high competition and strict regulatory requirements.

That being said, the country offers various visa opportunities for hiring foreign workers:

1. General Employment Policy (GEP) Visa: For professionals with special skills, knowledge, or experience not readily available in Hong Kong.
2. Admission Scheme for Mainland Talents and Professionals (ASMTP): Similar to the GEP, but targets skilled workers from Mainland China.
3. Quality Migrant Admission Scheme (QMAS): A quota-based immigration system that aims to attract talented foreign nationals or highly-skilled professionals to settle and work in Hong Kong. Applicants need to pass a points-based selection mechanism to be accepted for the scheme.
4. Technology Talent Admission Scheme (TechTAS): Only graduates holding a degree in science, technology, engineering or mathematics (STEM) from an exclusive list of qualifying universities are eligible for this visa.

Most professional visas in Hong Kong share the following characteristics:

• Validity: 36 months initially, with the option to extend

• Cost: Dependant on visa, but starting at HKD 230

• Path to residency: Can apply for residency after 7 years

• Dependents: All allow bringing a spouse or other dependant at extra cost
• Processing time: Roughly 4 weeks

Furthermore, most of these visas can be applied for online through their respective portals before stepping foot in Hong Kong.

Benefits of the Hong Kong Hiring System

Hong Kong’s recruiting and hiring system offers several advantages that make it an attractive destination for businesses and professionals alike:

• Hong Kong’s regulatory framework ensures quick and straightforward hiring procedures. The use of technology in government services, like the GovHK portal, facilitates efficient application and processing.
• With world-class universities such as The University of Hong Kong (HKU) and The Hong Kong University of Science and Technology (HKUST), the city produces a steady stream of highly qualified graduates.
• According to the Census and Statistics Department, over 30% of the workforce holds a bachelor’s degree or higher, providing a robust talent pool for various industries.
• Positioned as a gateway to Asia (and Mainland China in particular), Hong Kong attracts a diverse range of international professionals. The city’s status as a global financial hub, with major multinational corporations headquartered there, enhances its appeal to skilled workers from around the world.
• The Hong Kong government offers various incentives and schemes, such as the Technology Talent Admission Scheme (TechTAS) and the Top Talent Pass Scheme, to attract and retain skilled professionals (Randstad HK).
• Financial grants and support programs, like the Innovation and Technology Fund, help businesses invest in talent and innovation.
• Hong Kong hosts numerous industry events, conferences, and networking opportunities, such as the annual Hong Kong FinTech Week and the Belt and Road Summit.
• Professional organizations, like the Hong Kong General Chamber of Commerce and industry-specific associations, provide valuable resources and connections for businesses and professionals.

Challenges and Considerations

While the employment landscape in Hong Kong offers exciting opportunities for both employers and employees, challenges remain.?

• Employers must ensure compliance with employment laws, such as the Employment Ordinance, and work visa requirements, like the General Employment Policy (GEP) visa. They must also maintain accurate documentation and adhere to visa application criteria.
• Navigating a blend of Western and Eastern business practices as well as understanding and respecting hierarchical structures and local customs.
• Hong Kong’s vibrant job market is highly competitive, especially in key sectors like finance, technology, and professional services. Companies must offer attractive packages and work environments to secure and retain top talent. At the same time, job seekers can expect stiff competition from other highly skilled prospects.
• Salary expectations in Hong Kong can be high, particularly for skilled professionals. According to recent surveys, many employees expect significant salary increments when switching jobs, with some demanding raises of up to 20%. Employers must balance competitive salaries with comprehensive benefits packages, including health insurance and retirement contributions.
• With employees continually chasing higher remuneration, high turnover can also be a challenge, with employees often seeking better opportunities.?

Book a call with YouReg?right now and get a free consultation regarding setting up your business in Hong Kong today!