Banks operating in Hong Kong are urged to rethink their hiring practices if they aspire to attract and retain the best talent, according to insights from recruitment specialists. A recent survey by Asian Banking & Finance revealed that hiring rose by 2.5% across 15 lenders, yet experts caution that more streamlined application processes and relaxed language requirements are crucial in a competitive market.
Selectivity and Delays Hamper Talent Acquisition
The hiring landscape has become increasingly selective and convoluted, which is dissuading potential candidates. Robert Sheffield, managing director for China and Hong Kong at Ireland-based recruitment firm Morgan McKinley, remarked that the prolonged hiring timelines are pushing top-tier candidates toward competitors who offer a more efficient process. “We’re seeing a number of those top candidates take opportunities that come with a faster onboarding experience,” he stated in a recent Zoom session.
Amid an array of hurdles, applicants often face cognitive and personality assessments, alongside an exhaustive need for detailed references. On top of that, hiring managers are scrutinizing soft skills and emotional intelligence to gauge cultural fit, leading to additional rounds of interviews involving compliance and risk departments.
Regulatory Pressures Add Complexity
These lengthy procedures are exacerbated by a growing burden of regulatory compliance, especially over the past two years. Sheffield emphasized, “Banks are under an enormous amount of pressure to ensure compliance, with increasingly complex regulations on anti-money laundering, artificial intelligence, KYC protocols, and data privacy.” Consequently, banks are ramping up hiring in areas like KYC, asset liability, and regulatory risk management which encompasses credit, market, operational risks, and tech roles.
Shifting Employee Mindsets
The job market is not the only arena experiencing caution; candidates themselves are becoming more selective. Elaine Chu, senior manager of financial services at Robert Walters Hong Kong, highlighted that prospective employees are now placing a premium not just on salary but also on job stability. “Candidates have grown more reserved,” she noted, especially as pay increments have noticeably shrunk.
In a surprising twist, banks may need to rethink their Mandarin requirements, with Sheffield pointing out that a vast majority of roles primarily necessitate English proficiency. “For many positions, this requirement has made the hiring process unnecessarily prolonged—three or four times longer than what it needs to be,” he explained. Considering that about 70% of Hong Kong’s talent pool hails from Mainland China, flexibility in requirements could tap into broader talent resources.
Adapting to Change
Rather than cutting back, most of Hong Kong’s banks are opting to adjust their hiring strategies. Chu noted, “For many institutions, there’s a shift in seniority; if a vice president departs, they might now hire an assistant vice president, or similarly, opt to onboard an associate.” Moreover, there’s a notable increase in internal applicants stepping up to fill gaps.
Last year, banks collectively hired more employees than they let go, with the latest ranking survey indicating a 2.5% increase in their workforce to a total of 70,611. This growth eclipses the previous year’s 0.16% rise among the same group of banks, excluding Standard Chartered Bank, which did not participate in the latest study.
Smallest lender Tai Sang Bank and homegrown Hang Seng Bank achieved remarkable growth, with their headcounts increasing by 40% and 19%, respectively. While Hang Seng Bank bolstered its workforce by over 1,300 employees, Tai Sang welcomed 14 new faces, bringing its total to 49.
The Asia-Pacific division of HSBC Holdings Plc remains the largest player in Hong Kong’s banking sector, employing around 20,000 staff members, a figure unchanged from last year. Five other lenders—Bank of China (Hong Kong), Shanghai Commercial Bank, Chong Hing Bank, CMB Wing Lung Bank, and Public Bank (Hong Kong)—also reported a hiring surge.
Navigating the IPO Landscape
Despite the general caution in hiring, there’s a noticeable uptick in demand for roles related to initial public offerings (IPOs) amidst a resurgence in listings. Chen shared that contract hiring is becoming prevalent across various sectors, although pay raises are lagging, generally hovering around 10% to 15%. This is a far cry from the historic 20% increases during a robust market.
Sheffield pointed out that while the hiring pace for investment bankers is slow due to subdued global deal volumes, demand for elite deal-makers remains. “There will be aggressive hiring spurts on occasion, but these will become less common,” he remarked.
Reflecting on the IPO landscape, it is fascinating to note that Hong Kong’s projected IPO proceeds for the first half are expected to soar over eightfold to $108.7 billion (US$14 billion) compared to last year. This remarkable growth positions the region as the world leader, bolstered by Mainland Chinese firms seeking growth opportunities through dual listings, according to data from Ernst & Young Global Ltd.
Questions & Answers
What factors are influencing banks’ hiring practices in Hong Kong?
Recruitment experts indicate that banks need to simplify their application processes and relax language requirements, particularly eliminating unnecessary Mandarin mandates for specific roles to attract top talent effectively.
How are candidates responding to the current job market?
Candidates are becoming increasingly discerning, factoring in job stability alongside potential salaries, and exhibiting more caution than in previous years, particularly since pay increases have diminished.
Which banks are leading the hiring trends in Hong Kong?
Tai Sang Bank and Hang Seng Bank reported the fastest hiring growth at 40% and 19%, respectively, while HSBC remains the largest employer in the sector, maintaining a stable workforce of about 20,000 staff.
