With all the talk about salary increase in the last 6 months or so, we decided it was time for us to do a bit of investigating ourselves, to see what’s really going on in the Hong Kong region. Our salary survey demonstrated what we were sure to reveal – Hong Kong, as with everywhere else, is faced with some quite dramatic wage increases.
Take this example, for instance: one full stack engineer with react.js and node.js skillset, on 40K base now. Here at Inspire, we get him an offer with the biggest intentional bank in Hong Kong, with a 65,000 base- more than a 60% increment and never before achieved in cooperation with this bank. To really put it into perspective, this bank generally has a ceiling of 25% increment rate when making an offer to a candidate. We can see before our very eyes that market inflation has skyrocketed.
Though we have just outlined an eye-watering offer for our candidate, the offer is not accepted. Why, might you ask? In their hands they also hold 4 even better offers… Companies are in such a critical position, seeking talent from such a limited pool, that they are willing to fight with any level of salary increases in mind.
There is a striking resemblance within these examples across the board, whether it be for one full stack engineer, or a KDB developer. Consider scenario: KDB developer, for a role within international investment banking; someone who had always had a 70,000 base, now with an offer of 100,000! And the most shocking part is, his current company were so desperate for him to stay, they offered him a stifling 120,000… This is the climate we are working with, and we need a plan for 2023.
Tech leaders: this one’s for you. As always, there are things we can consider that reduce the exponential increase of wage expectancies within this sector; we picture team bundles, key hire. Another option to consider is contractors and offshoring. Many companies are now seeking the benefits of building an offshore development team, and utilising contractors to avoid those huge salaries becoming permanent.
But the beginning and end of it comes down to the fact that whatever comes next, budgets need adjusting. To be in the game, compelling offers are needed, because there is some fierce competition out there.
Once you’ve attracted the talent, here’s how to make them stay- and it has little to do with money. Firstly, a note of self-limitation: break away from the traditional maximum 20% increment mindset, and think outside of the box, the way your tech candidates will be…
And above all else, be quick. The more seamless your hiring process, the less likely your candidate is to have a stack of counter offers from other companies waiting for them. And, on the topic of the hiring process, interviews need to be about more than just tech topics now. Give feedback quickly and be generous and patient during salary negotiations; the traditional selection process is being overturned, and so is the behaviour of leaders.
It isn’t just the application process that is shifting in tone. Generation Z paints a very different picture to those who came before: culture and values reign over money and important positions now. So, sell the job, and the dream, and show candidates what your business has to offer.