Survey: Talent crunch in HK continues as workers look for better work benefits

Small and medium-sized enterprises (SME) in Hong Kong are expected to lose more workers, as close to a third of workers are considering a change of job, according to the latest survey by Prudential Hong Kong.

The insurer surveyed 600 Hong Kong small and medium-sized enterprises (SME) employees and 300 corporate employees between September and October 2022, aiming to gauge local employees’ job satisfaction and benefits expectations to help employers better understand the needs of their employees so as to provide appropriate health and wealth solutions for talent acquisition and retention.

The survey found that 32% of SME employees were open to or were actively seeking new opportunities elsewhere. 24% of respondents preferred to work at large corporations. The main reasons were strong financial position of the company (42%), followed by better medical benefits (41%), more comprehensive employee benefits (39%) and established pension plans (30%).

When considering whether to stay in a job or not, 77% of SME employees surveyed said that employee benefits were their main consideration. The most attractive benefits were remuneration and subsidies (94%), followed by employee protection such as medical benefits (89%) and vacation (86%).

However, 62% of SME employees surveyed said that their employers offered medical benefits, well below the 83% of corporate employees. At the same time, less than half (47%) of SME employees said they were covered by their employers’ insurance policies. In general, they ranked medical benefits offered by their employers as particularly unsatisfactory on account of the low claim value and limited coverage. Additionally, nearly 90% of SME employees (88%) expressed interest in being offered more than one MPF provider by their employers from which to make their selection.

“There are currently more than 350,000 SMEs in Hong Kong, accounting for approximately 45% of private sector employees, which makes these businesses particularly important to the city’s economy. With employees being a valuable asset to every company, talent retention is essential for the SMEs’ sustainable development,” said Priscilla Ng, chief marketing and partnership distribution officer of Prudential.

Among those SME respondents who attended financial management workshops organised by their employers, the sessions on financial management and financial literacy (41%), MPF performance and management (40%) and retirement planning (33%) were considered the most appealing. Interestingly, nearly 90% of SME employees (88%) expressed interest in being offered more than one MPF provider by their employers from which to make their selection.

“To support local SMEs in enhancing their competitiveness and managing the challenge of talent retention, Prudential launched bespoke and one-stop enterprise solutions with our 'we do' spirit that give SME employees more autonomy on their MPF providers and schemes, while offering benefits and protection for their physical and mental wellbeing,” Ng added.

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