Published on 5th April 2017
Within the Supply Chain & Procurement sector, hiring activity remained flat in Q1 2017. Many businesses were relocating operational functions out of Hong Kong, with functions such as Logistics & Transportation, Order Processing and Customer Service being moved to places such as Shanghai, Singapore and other cities that offer better cost-effectiveness.
Q1 2017 saw a growing threat for Supply Chain & Procurement jobs
The first few months of 2017 saw Supply Chain & Procurement professionals who opted to stay in Hong Kong facing a growing threat of losing their jobs. We saw an increasing trend where professionals with excellent backgrounds in these areas were actively seeking for career opportunities. Plagued by a limited supply of jobs due to the cost-effective relocation of specific functions, these experienced professionals faced a difficult and challenging period.
Conversely, we saw timing and circumstances in the first quarter favouring businesses which were expanding supply chain and logistics operations, as these employers were able to find an abundant supply of highly-skilled and qualified talent in the market.
Hong Kong remained a home base for strategic Supply Chain roles
Though there has been an outflow of many Supply Chain roles in Q1 2017, we saw many strategic and senior-level positions remaining rooted in Hong Kong.
The Pearl of the Orient remains a preferred base for these senior roles due to its strategic location and relative proximity to other Asia Pacific countries.
Booming e-Commerce opens up talent demand in the first quarter of 2017
The continuous development of e-Commerce, specifically in Online Retail, has benefited many businesses within the Supply Chain ecosystem. Notable examples were third party logistics providers which have been actively and selectively expanding their businesses riding on the growth of e-Commerce. We also saw business functions such as Business Development, Trade Lane Development and Air-Freight Operations actively seeking for talent.
On the Procurement side, recruitment activities have been steady in Q1 this year. Hong Kong remains a regional hub for businesses in terms of Central Procurement and Strategic Sourcing functions.
Talent outlook for Q2 2017
Moving forward into Q2, we expect to see Supply Chain job seekers experienced in e-Commerce having plenty of opportunities to choose from, especially those who are keen in developing their careers on the 3PL side. We also expect to see employers looking to hire professionals with strong vendor management experience and exceptional negotiation skills.
There will be an increase in hiring activities in the months ahead as we enter the peak recruitment season. Job seekers will see a higher volume of jobs available in the market coupled with a healthy dose of competition, as more people will be actively looking out for a career change.
Supply Chain & Procurement
Salary Report for Q2 2017*
*Notes about salary report:
- Titles and levels vary from organisation to organisation.
- The salary ranges given are only approximate guides. For tailored salary advice, please contact us directly.
- 12-month base salaries are assumed.
- All other benefits and bonuses are in addition to these figures.
- Bonus ranges can vary significantly from company to company and will be influenced by market conditions, business and individual performances. Bonus ranges from 1 month at the low end to 100%+ at the upper.
- Holiday entitlements range from 12–25 days with senior executives not usually receiving less than 18 days. Less than 15 is very rare and 20 days is becoming the norm.
- Healthcare policies are standard.
- Pension plans vary with some companies offering greater than the standard contribution. Top up schemes can increase employer contribution levels as much as 15–20% of the base salary for senior executives.
by Justin Leung