The Hong Kong is famous for its strong economy, lifestyle and technological advancement in the global financial hub. In the sense of present, the Hong Kong is juggling with a technical skills shortage. This technical skills shortage in Hong Kong has been increasing by a notable net outflow of tech talent in recent years. In this article, we will crystallize this issue of technical skills shortage in Hong Kong, by including reports, reasons, potential technical hiring solutions with proven strategies to mitigate this challenge and learn how to attract & retain tech talent in Hong Kong.

Net Outflow of Tech Talent

According to the Census and Statistics Department of Hong Kong, there has been a substantial net outflow of residents in recent years. In 2021, the city’s population decreased by approximately 89,200 people, following a reduction of 46,500 in 2020. Apart from population and vital events, this population decline has been attributed primarily to emigration and a lower influx of immigrants. While these figures encompass all demographics, a significant portion of the emigrants includes highly skilled professionals, including those in the technology sector.

However, the actual number of migrants is likely much higher, especially when considering expatriates. Many expats, who played critical roles in various sectors, including technology, have also left the city, further widening the skills gap.

Impact of Tech Skills Shortage in Hong Kong

The outflow of tech talent has resulted in a pronounced gap in technical skills shortage in Hong Kong across various IT industries. Businesses, particularly in the IT and tech sectors, are facing increasing difficulties in sourcing qualified tech professionals to hard-to-find roles. IT positions like software development, data analysis, IT project management and especially attracting network and security talent in Hong Kong are particularly affected. The shortage is not just about numbers, it’s about the quality and expertise that these tech professionals bring to the table, This is essential for maintaining competitive tech advantage and driving innovation to stay at the fore-front.

Causes of the Skills Shortage in Hong Kong

Emigration of Skilled Professionals

As highlighted, many top professionals including IT talent is leaving Hong Kong, seeking opportunities abroad. This trend has created immediate vacancies that are challenging to fill locally.

Insufficient Local Talent Supply

While Hong Kong boasts several top-tier universities, the number of graduates in STEM (Science, Technology, Engineering, and Mathematics) fields is not sufficient to meet the growing demand in the tech industry.

Rapid Technological Advancements

The pace of technological change often outstrips the ability of the education system to adapt and produce graduates with the latest skills. This creates a lag between industry needs and available skills.

Addressing the Skills Shortage

To tackle the technical skills shortage, a multi-faceted approach is required:

Enhancing Education and Training

Strengthening STEM education and aligning curriculums with industry needs can help produce a workforce that is ready to meet current and future demands. Partnerships between educational institutions and tech companies can facilitate this alignment.

Attracting Overseas Talent

Simplifying visa and work permit processes for foreign tech professionals can help fill immediate gaps. Hong Kong can benefit from global talent by creating an attractive environment for skilled immigrants.

Upskilling and Reskilling Programs

Implementing programs that focus on upskilling existing employees and reskilling individuals from other sectors can help bridge the skills gap. Continuous learning and development are crucial in keeping the workforce competitive.

Government Initiatives

Government policies that support tech education, innovation, and a conducive business environment can foster the growth of the tech industry. Investment in technology hubs and incubators can also stimulate local talent development.

Boyang’s Commitment to Hong Kong’s Tech Future

Despite the current challenges, Boyang believes that Hong Kong still has a bright future. The city’s resilience and capacity for innovation remain strong. If your company is experiencing IT challenges due to the skills shortage, Boyang is here to help. Our proven managed Recruitment and Subcontracting service for IT talent has bridged the gap for many of our Hong Kong and China based customers, ensuring your business operations continue smoothly. We provide tailored solutions that address your specific needs, leveraging our 15 years of experience and top-rated team to support your technology needs.

Boyang’s guide 2024 of technical hiring in Hong Kong has revealed that 76% of tech hiring managers found recruitment quite challenging in 2024 in Hong Kong. Moreover, they are also repeating the biggest IT talent recruitment mistakes.

Hiring Challenges and Future Prospects

The key challenges for 2024, with 25% of hiring managers citing a shortage of skilled candidates as their primary obstacle. Other challenges included difficulties in competing on pay and benefits (22%) and a lack of approval for new headcount (19%).

Despite the challenging market, things are looking brighter in 2024 with half of technology hiring managers revealing that they are increasing headcount in the first half of the year, and 46% of technology workers are looking for new roles in that same period, with a further 31% considering a move.

Flexibility and Employee Preferences

Flexibility continues to be important in the technology industry, with work from home and flexible working hours placing first and third respectively in tech professionals’ top five valued benefits – alongside bonus (second), health insurance (fourth), and pension (fifth). Technology had the greatest proportion of people who placed ‘work from home’ as one of their most valued benefits out of all 10 specializations surveyed (71% of technology professionals picked it in their top five).

42% of technology professionals would prefer to be in the office 1-2 days a week, whilst only 8% want to be on-site 5 days a week. Over half (53%) would skip a pay rise if it meant they got the flexibility they desire. 69% of employers expect their salary offers to increase for certain hard-to-fill roles across technology, and a further 20% plan to increase salary offers for all tech teams.

“The demand for experienced contractors and outcome-based consulting has increased noticeably in Hong Kong. The need to support business-critical programs and time-sensitive roles is driving this demand.”

Most in-demand Jobs in Hong Kong 2024

Here are some of the key most in-demand jobs and skills in the Hong Kong 2024, across various areas of technology:

Development & Testing

• Jobs in Demand: Java Programmer, Full Stack Developer, Mobile Developer, Web Developer, QA Engineer
• Skills in Demand: Java, Python, ReactJS, Kubernetes, Cloud (AWS/Azure), Automation Testing

Infrastructure

• Jobs in Demand: Cloud Engineer, AI, IT Support, System Engineering, Cybersecurity, Networking
• Skills in Demand: Artificial Intelligence, Machine Learning, Cloud Admin/Architect, System and Network, Cybersecurity

Architecture

• Jobs in Demand: AI, Software Engineers, Data Architect, Enterprise Architect, Solution Architect, MLOps Engineer
• Skills in Demand: Data Lake, Azure, AWS, GCP, Relational Database Management, Java/Python, Kafka

Analytics

• Jobs in Demand: Data Scientist, Data Engineer, Data Analyst, Data Modeller, Business Analyst
• Skills in Demand: Data Pipeline, ETL, Tableau/Power BI, Python, SQL

Summary

The technical skills shortage in Hong Kong can be slowed down easily if we embrace advance recruitment solutions. This Boyang Technical Hiring Guide 2024 is up-to-date and accurate to address these challenges in Hong Kong and China, providing hiring managers comprehensive knowledge and key path. Our clients are satisfied and happy by partnering-up with us because of our smart tech hiring solutions and strategies. If you are also looking for your next IT talent, contact us for a free consultation and see how we can support your hiring team for quick and smooth tech recruitment even for mid-to-senior levels.

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