Keys to winning the war for young Hong Kong talent

Mike Parsons August 03, 2021 10:06

Hong Kong’s economy is showing signs of recovery as the impact of the COVID-19 pandemic eases. The unemployment rate in Hong Kong fell to 5.5% in the second quarter, from the record high of 7.2% since 2004. Coupled with the climbing vaccination rate, more people will likely be back in the labour force as business slowly returns to normal. While this is all great news, a recent survey reveals that the pandemic has caused a shift in sentiment among university graduates hunting for their dream jobs.

Talent’s priorities change amid the pandemic
In the recent Hong Kong Edition of Universum’s Ideal Employer survey which examined graduates’ career preferences, and measures the level of employer attractiveness of companies or organisations in Hong Kong’s recruitment market, students prioritise high future earnings above all else, with factors such as job security trending upwards (it climbed three places on the list to the sixth most important), reflecting the uncertainty brought by the pandemic.

Cultural aspects such as encouraging work-life balance, which topped the charts in previous years, has been deprioritised from the second place last year to only the seventh spot this year. A notable reaction to the significant increase in remote working being offered by large employers.

Looking at salary, business and commerce students have relatively high hopes for remuneration with an average annual salary of HKD247,523 (+1% vs 2020). Their peers from IT discipline have significantly lower expectations at just HKD225,407 compared to the previous year. The low (1%) increases in YoY expectations being another sign of the uncertainty faced by graduates entering the employment market.

Widened gender pay disparity among business and IT students

The survey also reveals that the expected annual salaries for male and female local undergraduates are HKD290,162 and HKD251,449, respectively, with female students expecting 13% less than their male counterparts. The pay gap within the business/commerce and IT disciplines has widened to 19% (from 15% in 2020) and 11% (from 7% in 2020), respectively. This will make achieving gender pay parity more challenging and will require greater intervention from either employers themselves, government, or both.

Other highlights in the survey showed that almost 70% of Hong Kong students are interested in exploring remote work opportunities in their role, which is relatively high compared to other regional markets like Singapore and China. That said, 44% are concerned that they would be isolated and miss out on social connections with their co-workers. These anxieties mean that employers need to be careful with how they position and communicate their new remote working policies to young talent.

Ideal employers provide career development and a bright future

Tech giants Google and Apple remain highly attractive to young talent in Hong Kong and maintained their position in the top five for local undergraduates across business and commerce, engineering and natural sciences, and IT disciplines, according to the insights collected. The HKSAR government continues to trump all others as the first choice of students majored in engineering and natural sciences, reinforcing the Hong Kong student’s preferences for a stable career with high future earnings during the pandemic.

Industries that saw increased demand during the COVID-19 pandemic, like pharmaceuticals and eCommerce, are also on the rise. Pfizer’s huge jump to seventh place, up from 43th place last year, can be attributed to a combination of factors – including the positive media attention and branding they received due to their vaccine, as well as being highly associated with attractive employer characteristics, such as being a strong reference for future career moves, and being perceived to offer excellent training and development to employees.

Attracting new talent takes good strategy and communication

Understanding student’s career expectations and employment preferences is the first step when devising strategies to attract and retain the best talent in the market. With young talent now prioritising career choices that lead to higher future earnings, and with and renewed importance on job security through these uncertain times, employers need to have a clear understanding of how best to communicate with their future workforce, how they are perceived externally, what they can deliver upon, and who they are competing against.

Engaging employer brands that leverage social media almost always has an advantage in reaching and influencing prospective talent. With hardly any onsite campus recruitment activities this year or last year, employers should be devoting more effort and resources to online platforms to attract talent. As the state of work evolves with the pandemic, it is expected that more communication and engagement with young talent will be done through online platforms.

Attractive bright, young talent has never been easy to attract, and the rules of the game keep changing. Businesses need to be adapting their talent engagement strategies to the changing needs and desires of the graduates they strive for, with consistent and data-driven online and offline communication, in order to master the art of war for young Hong Kong talent.

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Mike Parsons

Managing Director APAC of Universum