Hong Kong holds on to its talent as financial services struggles

The employment market in Hong Kong financial services is less buoyant than it was 18 months ago; major banks have been making redundancies, and recruitment remains at comparatively low levels. Despite this, Hong Kong financial professionals show few signs of wanting to leave the city.

But while they still like living there, they are more than willing to consider local opportunities in other industries.

A recent survey by my company of 653 Hong Kong-based financial professionals backs this all up. For starters, it found that more than eight in 10 (82%) of the respondents had no intention of leaving the city in 2012.

A similar proportion (81%) recommended it as a place to live. A stable, mature economy, supported by strong links to China, makes Hong Kong an ideal place to wait out the global downturn. And its ability to retain talent within its shores has increased as Western markets struggle with high unemployment and slow growth.

Headhunters are not seeing an exodus either. One recently told me: “There is definitely a feeling that Hong Kong is more resilient than many other locations, and people want to remain here as a result.” His counterpart at another firm added: “Unless the salary and the job prospects are really good, not many candidates are willing to move. They think Hong Kong is still a healthy platform for a career.”

Hong Kong is attractive on other levels, too. It appeals as one of the few truly international cities and combines excellent entertainment options with the practical benefits of good infrastructure and reliable government services.

When asked about the best aspects of living there, the survey respondents put safety (23%) and a favourable tax regime (18%) ahead of job opportunities (16%).

The survey also revealed that 84% of Hong Kong financial professionals were not considering relocating to mainland China, despite Shanghai’s aspirations to become a major financial centre and the high demand within Hong Kong itself for Chinese knowledge and networks.

This general reluctance to relocate means those who do move are well placed to take advantage of job opportunities in China as the country liberalises its financial sector and needs more sophisticated expertise. And if they return to Hong Kong, they will be equally sought after.

Exploring other options
While geographical movement wasn’t particularly popular in the survey, half of the respondents said they were prepared to move to other industries in Hong Kong. Better job opportunities (43%) and greater remuneration (22%) were their main motivations.

Parts of the financial sector, notably investment banking, are suffering. Deal flows are not strong enough to generate the large bonuses that bankers enjoyed during the boom times, which is making many question whether their stressful jobs and long hours are worth the effort. Work-life balance is often perceived to be better elsewhere.

Recruiters are hearing other murmurs of discontent. As one put it: “More candidates have expressed an interest in switching to non-financial services because of the recent turmoil in the industry.

They are even willing to accept lower pay for a more stable job. And the limited number of openings in banking and finance means they are forced to look outside regardless of whether they are employed or unemployed.”

But where, exactly, do financial professionals want to move? The top-three preferred destinations in the survey were: technology, both hardware and software, (19%); media and advertising (11%); and travel and tourism (7%).

Of course securing jobs in these fields isn’t easy; corporate employers can afford to be selective when considering candidates without sector experience. But anecdotally, I have heard of bankers taking on in-house corporate finance roles, while support staff in financial services – including those in legal, IT, HR and accounting – often have the transferrable skills needed to make the move.

This is creating new challenges for financial employers. While in buoyant job markets they focused their retention efforts of reducing the relentless poaching of direct competitors, their talent is now under threat from outside the industry.

To keep their top performers, they need to provide mapped-out career paths, enhanced training and development, internal movement opportunities, and better work-life balance. Convincing people to stay in Hong Kong, however, is altogether easier. It’s the sector, not the city, that is under the most pressure.