While the outlook for global economy remains bleak for 2023, economy in Hong Kong is expected to boom. Businesses are now competing on their readiness to grasp every opportunity followed by the reopened border. According to a survey conducted by ManpowerGroup, 44% of employers plan to recruit in the first quarter of 2023. 

All these happened when the unemployment rate in Hong Kong has dropped to 3.5% in the last quarter of 2022, and the number of unemployed and underemployed had continued on a downward trend. Amid the migration waves, talent shortage reached 16-year high — 83% of employers in China and Hong Kong reported talent shortage, compared to 75% globally.

As the Chinese saying goes, “banking is the mother of all industries”. The anticipation for the market to rebound has driven banks to engage in a talent war. 

Hiring trends in Retail Banking (Investment, Insurance & Personal Loan Business) 

Hiring in retail banks is often interlinked with the performance of the stock market. Boosted by the pro-growth policies and prospect of a revived market, Hang Seng Index has up more than 50% since its lowest point in October, as of the time this article is written. 

In general, people understand Hang Seng Index as a barometer of overall economic activity in the region with a lead time of around 9 months. At the moment, banks are racing to hire frontline sales to maximise their customer acquisitions. It is estimated that there will be more middle office or back office openings by Q3 or Q4 when the growth of the rest of the economy gains momentum. 

The largest local bank in Hong Kong claimed that they are going to recruit 100 Customer Relationship Managers this year and increase the number of Relationship Managers for all branches along the East Rail line after the border reopened. Another local family-owned bank had started recruiting frontline staff for their Cross-border Banking and Offshore Banking businesses. 

Positions related to bancassurance such as Insurance Specialist and Bancassurance Manager will also be in demand to support the expansion. Dah Sing Bank, having terminated an agreement with Tahoe Life Insurance for nearly two years, only recently announced joining Sun Life in an exclusive 15- year bancassurance partnership agreement. Major insurance leaders AIA, Manulife and Prudential are also planning to recruit over 10,000 financial planners or agents this year to seize the upward trend intensifying competitions between the bancassurance and insurance sector. 

The increasing interest rate has not deterred consumers from borrowing, 41% of consumers considering new credit were planning on new personal loans. Henceforth, positions in the Loan Direct Sales and Call Centre Telesales are still highly sought after.

Hiring trends in SME Banking/ Commercial and Corporate Banking

From 8 January 2023, citizens in Mainland China could apply for visas to travel to Hong Kong and Macau. There are 998,000 applications to date. Retail and tourism sectors are actively recruiting to absorb the surge in business. For example, Ocean Park is hiring 350 frontline and support staffs to prepare for the first week-long labour holiday in May when hotel occupancy is expected to peak. It is foreseeable that economic indicators in Q2 will be on the positive side leveraging on the growth in retail and tourism sectors. 

SME Banking receives another boost from the SME Financing Guarantee Scheme (SFGS) by The Hong Kong Mortgage Corporation Limited (HKMC). The scheme that carried many SMEs through the pandemic continues to be highly popular and is expected to stay in 2023.

Not to mention the reopened border will revive many cross-border businesses, credit remain indispensable for their survival and expansion. After doubling down on the recruitment of relationship managers, it is anticipated that SME Banking/ Commercial & Corporate Banking will be in full swing hiring middle and back office workers in Q3 and Q4. 

Strategies to win the talent war

Act now or regret later. Some of the banks had already revved up to get the best talents. Here is some advice on what you could do as an HR professional. 

1. Recruit early — it is often too late to recruit when you see positive business signals. Monitor economic indicators, recruitment figures and other intelligence reports to plan ahead. 
2. Recruit fast — before bulk hiring, actively look for ways to speed up the recruitment process. Be lean and agile. Reduce unnecessary paper works and make smart use of technology. 
3. Skill-based recruitment — Looking at educational background, seniority and experience might increase the odds of finding the talents you want but there is no guarantee. Develop ways to assess skills is often the most direct way to the right talents. 
4. Internal recruitment — the benefits of it have been underestimated. Current employees are familiar with the company culture and process, and they can often bring in new perspectives and skills to other roles. 
5. Attractive packages —Other than offering better incentive and higher salary, consider other perks such as flexible work, gym membership, childcare allowance, discounted purchases, etc. Some of the banks have now lifted sales quota for the initial three months of joining to widen the talent pool.