New Economy and Policies that Promote Talent Flow and Talent Hub Development

Since the promulgation of the Outline Development Plan for Guangdong-Hong Kong-Macao Greater Bay Area (GBA) by the State in 2019, developing a talent hub and promoting the integration and exchange of talents have become the top priorities for the 9+2 cities in the GBA. With the implementation of policies and measures that facilitate talent flow in the area, strengthening the competitiveness of people becomes crucial to economic success. Which GBA city is the most attractive for talents? And where do the top talents go?

In order to gain an in-depth understanding, the Centre for Human Resources Strategy and Development (CHRSD) of the School of Business of Hong Kong Baptist University (HKBU) joined hands with the Research Center for Human Resources Management of the School of Business of South China University of Technology, the Hong Kong People Management Association (HKPMA) and the Talent Development and Management Association of Guangdong (TDMAG) to conduct a pay and benefits survey focusing on the 9+2 GBA cities. On 18 October, the CHRSD and its collaborators revealed the findings at the press conference held at the Madam Kwok Chung Bo Fun Sports and Cultural Centre of HKBU.

Introducing a new dashboard system with advanced mathematical algorithm

Professor Huang Xu, Director of CHRSD, shared the results of the Guangdong-Hong Kong-Macao Greater Bay Area Pay and Benefits Survey 2023 and illustrated the findings using the compensation dashboard, independently designed and developed by the CHRSD, for the first time.

According to the Director, it has been 29 years since the CHRSD initiated the survey in 1995. This year, the survey introduced various innovative elements in line with the latest national development plan for the GBA and the talent policies of Guangdong Province and Hong Kong. “We developed a proprietary and effective compensation and performance evaluation model based on our research findings and advanced mathematical algorithm. The new compensation dashboard system independently designed and developed by the CHRSD provides more in-depth and personalised analysis reports in a user-friendly way. Users can have a clear understanding of a company’s position in the GBA’s human resources market and industry after logging in,” noted Professor Huang.

Mr Ray Leung, Vice President of the HKPMA and Chairperson of Greater Bay Area (HKSAR) Pay and Benefits Survey Committee, further presented the survey results of various GBA cities in detail.

The looming talent war and seamless flow of top talents in the GBA

The survey commenced in June 2023, and involved 292 organisations and 183,000 employees in Guangdong Province, Hong Kong and Macao. It collected data between July 2022 and June 2023, covering company profiles, actual and projected salary adjustments, starting salary for fresh graduates, incentive schemes, employee benefits, manpower changes, and remunerations and allowances.

The survey results indicate that in the post-pandemic era, the Hong Kong economy has rapidly recovered, injecting new momentum into the overall compensation trend. In 2023 (July 2022 to June 2023), the average salary adjustments in Hong Kong and Macao significantly exceeded those of the previous three years (2020 to 2022), and the adjustment level in Hong Kong was closer to the pre-pandemic growth level in 2019. Although Hong Kong led the GBA with salary increases ranging from 3.2% to 3.8%, the actual increments, excluding organisations with frozen salaries, in Guangdong cities surpassed Hong Kong as the adjustments ranged from 4.4% to 5%. In 2024, the compensation adjustment in Hong Kong is expected to reach 3.5% to 3.8%, and that in other Guangdong cities may range from 2.8% to 2.9%. However, after excluding organisations with frozen salaries, the latter may see an increase of 4.3% to 4.5%.

It is noteworthy that Hong Kong still led other cities in the GBA in salary adjustment for top talents at managerial level or above in 2023, but the trends in Shenzhen and Dongguan should not be overlooked. In fact, Shenzhen and Guangzhou are expected to outrun Hong Kong in compensation adjustments in 2024. Besides, in terms of the average monthly salary of fresh graduates, those who pursue a career in engineering, information technology and research and development are among the top three earners.

Extensive employee database and endorsements from experts at
industry, academia and research integration

The Guangdong-Hong Kong-Macao Greater Bay Area Pay and Benefits Survey 2023 Seminar was held in the afternoon of 18 October where Mr Ho Kai Ming, Under Secretary for Labour and Welfare Bureau, delivered a keynote speech. Mr Daniel Lee, President of HKPMA, Professor Wan Junyi, Executive President of TDMAG, Mr William Tsang, Chairperson of Greater Bay Area (HKSAR) Pay and Benefits Survey Committee 2023, Professor Huang and Mr Ray Leung also attended the seminar and discussed the methodology and analysis reports of the survey.

According to Professor Huang, this survey is the most representative compensation and benefits survey among the 9+2 GBA cities, with a large database and extensive coverage that capture relevant information of over one million employees in the GBA. This year, the partnership was further extended to include the University of Macau and the Macau Greater Bay Area Human Resources Association. The HKBU School of Business has been leading this survey for years, and has established it as a prime example of industry, academia, and research integration. With its significant academic background and innovative methodology, the survey has also attracted experts in human resources management from all over the world over the years. The survey results published every year are regarded as a key indicator of human resources in the region. Offering accurate, intuitive, and scientific data and reports, the survey features multidimensional comparison and real-time access to support the talents supply and demand analysis in the GBA, and provides a valuable reference for local governments and organisations.