Throughout the course of Q2 2017, the job market for Supply Chain & Procurement professionals in Hong Kong remained steady. While there was an increase in recruitment activities across mid- to senior management levels, we do not think that this reflected macroeconomic changes, rather, these were seasonal and cyclical adjustments.
The greater trend that we have witnessed over the last two to three years remained true though—there has been a steady decline in a number of vacancies available in Hong Kong across the supply chain functions.
Continual shift towards reconsolidating functions
We continued to see a shift in business strategy by many companies, as they streamlined and reconsolidated their supply chain functions around the region. We saw, as a result, businesses downsizing or completely retreating from the Hong Kong market, and that they were reallocating headcounts and resources to other cities within Asia.
Factors such as cost, talent pool and functional effectiveness have mainly been driving this trend. Employment costs in Hong Kong have remained to be the highest within Asia. In implementing better cost-control measures, business leaders have made strategic decisions to relocate supply chain functions outside of Hong Kong. The increase in qualified supply chain professionals in China, Singapore and other emerging markets have also given businesses a push in building supply chain capabilities in these locations.
The China and SEA influence in Asia
The impending shift in Asia's business environment, such as growing business demands in China and Southeast Asia, has led to companies shifting and repositioning their functional focus to meet specific geographical demands in the region.
On the brighter side, we saw an increase in demand for professionals with experience in Strategic Sourcing or Procurement, as well as Supply Chain Process Improvement. Many of these vacancies were operational-level roles, while a few were at the management and leadership levels.
Q3 2017: Hiring slowdown after the peak season
Recruitment activities will begin to slow down in Q3 as we pass the peak recruiting season, which is typically in the months of May and June.
We do expect to see, however, an increase in demand for short-term contract or project positions, which will benefit job seekers who are open to such opportunities.
Supply Chain & Procurement
Salary Report for Q3 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