Engaging talent through contracting and temporary arrangements has increased in Hong Kong in the past year and will grow further in 2018, according to recruiting experts Hays.
This is just one of the key findings from the 2018 Hays Asia Salary Guide which in its 11th year, highlights salary and recruiting trends based on responses from more than 3,000 employers across Mainland China, Hong Kong, Japan, Malaysia and Singapore.
Research carried out found 46 per cent of employers in Hong Kong utilised a flexible staffing option in 2017, down from the 59 per cent that did so in 2016 with 62 per cent of those opting to engage with contracting and temporary staffing solutions, up from the 57 per cent reported in 2016.
A further 22 per cent of organisations in Hong Kong plan to increase their use of contract and temp workers in 2018 while a huge 71 per cent plan to maintain current levels. Only seven per cent of employers plan to decrease their use of contractors and temporary workers in 2018.
“A growing number of organisations in Hong Kong are using contractors and temporary workers for a number of reasons from containing costs to sourcing specialist expertise for specific projects,” says Dean Stallard, Managing Director of Hays in Hong Kong & South China.
“60 per cent of the organisations in Hong Kong we surveyed experienced increased levels of business activity in the year prior to our 2018 Guide survey and a massive 68 per cent expect higher levels again over the year ahead,” says Dean.
“Companies we talk to are bullish about 2018, particularly given Hong Kong’s positive economic outlook, but they also plan to keep a close eye on costs to maximise their potential for business growth and accessing a contingent workforce is an effective way to do this,” he says.
Of the companies engaging contractors and temporary staff, 20 per cent do so regularly while 42 per cent do so for special projects. 20 per cent of organisations enlist the services of contractors and temporary staff in exceptional circumstances while 18 per cent do not utilise a flexible workforce.
While contracting and temporary staffing solutions tops the list of flexible staffing options utilised in Hong Kong, it is not the only method used. The 2018 Guide found that of the companies utilising a flexible staffing approach, 51 per cent employed ‘part time staff’, 31 per cent ‘casual staff’ and 28 per cent ‘facilitated job sharing’.
“Our 2018 Guide also reveals a range of industries making use of emerging technologies and innovations and often sourcing contractors is the best way to secure specialised talent particularly for project work.”
“We see the use of contractors in particular to be the new norm in Asia with key countries that compete with Hong Kong tapping into this type of flexible staffing on a more regular basis,” says Dean.
“With Hong Kong’s economy growing faster than predicted and positive business and economic conditions ahead, we predict many companies here may review their contracting and temporary staffing strategies in 2018.”
How Hong Kong compares
In all five countries surveyed in the 2018 Hays Asia Salary Guide, the use of contractors and temporary workers is the most popular flexible workforce arrangement.
In Japan, 85 per cent of companies utilising flexible staffing arrangements in the past year employed contractors and temping workers compared to 66 per cent in Singapore. That figure in Malaysia was 59 per cent and in Mainland China, it was 46 per cent.
A total of 54 per cent of employers in Japan employ contractors and temps on an ongoing basis. In Mainland China, 30 per cent of employers make use of contractors and temps continuously while in Malaysia, the figure is 23 per cent. Only 18 per cent of Singaporean organisations employ contractors and temps on an ongoing basis.
Get your copy of the 2018 Hays Asia Salary Guide by visiting www.hays.com.hk/salary-guide
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About Hays
Hays plc (the "Group") is a leading global professional recruiting group and is celebrating its 50th anniversary this year. The Group is the expert at recruiting qualified, professional and skilled people worldwide, being the market leader in the UK and Asia Pacific and one of the market leaders in Continental Europe and Latin America. The Group operates across the private and public sectors, dealing in permanent positions, contract roles and temporary assignments. As at 30 June 2017 the Group employed 10,000 staff operating from 250 offices in 33 markets across 20 specialisms. For the year ended 30 June 2017:
– the Group reported net fees of £954.6 million and operating profit (pre-exceptional items) of £211.5 million;
– the Group placed around 70,000 candidates into permanent jobs and around 240,000 people into temporary assignments;
– 24% of Group net fees were generated in Asia Pacific, 49% in Continental Europe & RoW (CERoW) and 27% in the United Kingdom & Ireland;
– the temporary placement business represented 59% of net fees and the permanent placement business represented 41% of net fees;
– Hays operates in the following markets: Australia, Austria, Belgium, Brazil, Canada, Colombia, Chile, Mainland China, the Czech Republic, Denmark, France, Germany, Hong Kong, Hungary, India, Ireland, Italy, Japan, Luxembourg, Malaysia, Mexico, the Netherlands, New Zealand, Poland, Portugal, Russia, Singapore, Spain, Sweden, Switzerland, UAE, the UK and the USA