HR Bulletin Volume 120

Chief executive John Lee has a tough task ahead to revive past glory after Hong Kong toed the China line throughout the pandemic that battered its economy and triggered a brain drain as rival business hubs reopened

Known as Asia's World City, Hong Kong has been the world's largest business hub for over two decades until September 2022.

The arrival of Covid 19 brought a bad omen for the city. Strict Covid 19 norms and a steady exodus ensured the fall of the financial centre. Hong Kong lost its position to Singapore. The decline was fast and steady. The city was ranked third, behind New York and London in the Global Financial Center’s Index in September 2021

Cut to 2022, its fall from grace became official after Global Financial Centres Index (GFCI) declared the rival city

Why is Hong Kong desperate to woo global talent?

Singapore as the top financial centre inAsia Hong Kong has slipped to the fourth spot So what made the city lose its spot?

The global finance hub lost its sheen as it continued to follow China's policy in trying to keep Covid cases to a minimum even as the rest of the world opened up.

The indications of Hong Kong’s loss of status looked imminent after it maintained one of the strictest pandemic entry policies. China’s zero Covid policy spelt doom for the city, as its decision to open up to the Communist country necessarily meant closing down to the rest of the world. Hong Kong’s toeing the China line throughout the pandemic, battered its economy and deepened a brain drain as rival business hubs kept flourishing The net outflow from the financial hub since the start of the pandemic stood at more than 200 thousand local and foreign residents Statistics show more than half of that exodus occurred during the 12 months to the end of June Hong Kong's mid year population dipped by 1 6% to 7 29 million It was the steepest year on year drop on record In contrast, rival banking and investment centre Singapore posted a 3 4% increase over the same period Hong Kong’s fall has alarmed China with Chinese President Xi Jinping asking City’s chief executive John Lee to adopt urgent measures to shore up its economy. Lee, a pro Beijing leader, was reminded about the task soon after he was elected the leader of Hong Kong after winning an election held through a closed voting system in May.

Hong Kong’s chief executive, in his first speech on October 19, has set out the administration’s priorities for the upcoming year, announcing various measures to attract both global talent and businesses. He maintained that security is another main focus.

These include the creation of a specialised office to attract “strategic enterprises'' Under its ambit, there will be offices across the globe set up to attract businesses towards Hong Kong as an investment destination Special visa schemes are also in the pipeline to increase the ease with which such individuals can enter the city

Lee also set aside HK$30 billion (S$5 43 billion) for a “co investment fund” to attract firms to the city “Hong Kong is one of the most competitive economies in the world " It also serves as an important gateway connecting the mainland with global markets,” he told lawmakers in the Legislative Council, adding that they must be both aggressive and proactive in competing for enterprise and talent.

Brain drain and the exodus

Once a top economic powerhouse, the city remained a shadow of its former self. The city lost its talent. The first half of 2022 saw 130,000 Hong Kong residents fleeing to other cities. The year saw a 1.2% rate of population decline, the biggest drop in at least six decades. As people realised that pandemic measures were there to stay, the brain drain continued even more.

In the first three quarters of 2021, 88,800 alarmed Hong Kong dwellers applied for British visas Expats and others continued deserting the city as they preferred Singapore to Hong Kong The new city, according to them, guaranteed more rights for finance and business According to Lee, Hong Kong has lost approximately 140,000 workers For the first time, the Hong Kong government has acknowledged the recent drain of talent Hong Kong is staring at a full blown recession, with the fiscal deficit soaring.

Hong Kong’s loss was Singapore’s gain Hong Kong’s decline was precipitated by the loss of talent which was reinforced by the withdrawal of foreign companies from the city. The number of US businesses with regional headquarters in Hong Kong fell to an 18 year low in 2021. The trend was not only limited to US companies. The city’s troubles led German multinational BASF to move its regional division to Singapore in early 2022. The trend of declining foreign direct investment in China continued Meanwhile, the number of mainland Chinese companies with regional headquarters in Hong Kong rose by 5% between 2020 and 2021 City schools, universities, and civil society groups are also becoming increasingly dominated by mainland China

The shift in talent flow from Hong Kong to Singapore was a top reason for the growth in the latter’s financial sector Over 718 Hong Kong professionals moved to Singapore in 2021, according to recruitment firm Robert Walters

The Great Breakup: Why are women leaders switching jobs at the highest rate in years?

The largest study of the state of women in corporate America shows women leaders are demanding more and leaving their companies in unprecedented numbers to get it!

Women leaders are switching jobs at the highest rate in years, and at a much higher rate than men in leadership, reveals findings of the eighth annual Women in the Workplace report, the largest study on the state of women in corporate America.

Companies that don't take action in response to this trend are at risk of losing hard won progress toward gender equality and they may also struggle to attract and retain the next generation of women leaders, says the report, released recently by LeanIn Org and McKinsey & Company

An initiative of the Sandberg & Dave Goldberg Family Foundation, LeanIn Org conducts original research on the state of women, supports a global community of small peer groups called Lean In Circles, and provides companies with programmes to address the biases and barriers women face in the workplace.

"This creates a looming pipeline disaster for companies. The broken rung is still broken, so we aren't promoting as many women into management as men. Now, senior women, who are disproportionately doing the hard work that employees want around people management and DEI, are leaving for better opportunities elsewhere. And women, particularly women of colour, still face biases at work that make it much harder to advance. Companies need to double down to remove bias from the workplace and make serious investments in DEI, or we are in real danger of

The workplace has faced many challenges in recent years with the onslaught of staff shortage, poor employee mental health and work burnout reigned over the industry for an ample amount of time However, employers are now discovering a new role in the workplace that may help companies improve their employee experience and deliver successful outcomes for the organisation Studies reveal how people managers can affect employee morale and drive change in the workplace as they’re able to motivate and boost employees who are in need of direct support People managers as the new experience heroes Lauren Park, human resources researcher on the SAP SuccessFactors Growth and Insights Team puts a stress on the importance of managers in creating a relationship between employees and the organisation. She says that the economic and social shift in the work industry has amplified the role of people managers and its impact on employees who are shifting their priorities, according to a report by SAP. Park’s research team analysed data spanning from 31 HR leaders across multiple regions and industries as they discovered how the role of the people manager has evolved to improve the

experience. Changing work expectations has impacted priorities in the workplace as many employees have become more active in voicing out the need for better work experiences This has led to a drastic shift in

The shift to remote work has undeniably changed the way we work across industries. There has been a huge reliance on technology, especially on businesses that have adopted flexible work arrangements.

While technology has become a great way to make work more flexible for the people, a new survey revealed that more employees experienced digital exhaustion

Digital exhaustion, also called digital fatigue, happens to people who are required to spend a lot of time using digital tools and apps for work

Digital interactions are possible through technology, but having fewer human to human interactions increases feelings of isolation and leads to exhaustion.

The repercussions of digital fatigue in business have become apparent, especially in terms of strategy, so business leaders may want to reconsider their strategies.

A study by Gallup shows that only 9% of the employees said they are thriving and engaged with their work in the current setup, while the rest said their performance dropped.

The study also shows employees are prioritizing wellbeing over work, as more than half of employees said they value their family over their careers

Aseparate survey by Microsoft also revealed that 6 out of 10 surveyed managers think that productivity has dropped

Driving business performance with hyperpersonalised learning

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