eFinancialCareers

eFinancialCareers recently ran a roundtable in Hong Kong, which was attended by 16 senior HR professionals from major international financial services institutions. In the first of a two-part report, we give you the delegates’ take on recruitment, candidates and compensation. Attendees asked not to be named in this article.

What a difference half a year makes. When we held our previous Hong Kong roundtable back in February, the discussion was fairly depressing: hiring levels had fallen off a cliff and there was no pick up in sight.

These days, although the employment recovery is still in its infancy, HR managers are markedly more upbeat about both current and future hiring.

One roundtable delegate succinctly summed up the mood: “It’s nothing like a boom, but the market is a whole lot better than it was just three months ago.”

Front office jobs – in particular equities, fixed-income and FIG – are leading the upswing in Hong Kong, with openings increasing faster than expected.

Attendees agreed that the next six months will bring a modest improvement in hiring, but that the emphasis will continue to be on replacement recruitment and mid-to-senior-level, revenue-generating vacancies.

It will probably be later in 2010 before we experience a similar small-scale surge in back/middle-office and junior hiring in Hong Kong, although there are already pockets of growth within the support functions. Risk, for example, was described as a “hot sector”, with banks forced to search offshore for staff thanks to a chronic local skills shortage.

Cautious candidates bide their time

Despite the recent spike in vacancies, those who are already in work aren’t exactly scampering to jump ship. The roundtable reckoned that, in contrast to late last year, most banking employees are now expecting bonuses, making it more difficult to poach them from their current positions.

But watch out for the return of post-payment movement in March/April 2010. “There will be plenty of attrition. In Asia, it only takes a few people to move to spark things off,” commented one panelist.

Until then, however, candidates remain cautious and not just because they’re waiting for bonuses. The fear of last-in-first-out still haunts many job seekers, especially those who are considering joining banks with tarnished reputations and balance sheets.

In the words of one attendee: “Closing candidates is difficult. They still need a lot of reassurance before they will move. They’re asking: ‘why does this vacancy exist?’, ‘was there a problem with the role?’. HR is having to put in a lot of effort into re-evaluating the job proposition.”

A mini war for talent

For some senior roles, firms are prepared to stump up the cash to overcome candidate caution. Guaranteed bonuses, for example, are back in the mix.

“Revenue generators in Hong Kong just won’t move unless they have a guarantee. By contrast, in Europe, we’re seeing people go without one - a sign that Asia is recovering ahead of the rest of the world.”

And experienced front-office candidates aren’t only getting countered by their current employer, some are receiving multiple offers as several banks battle for their services.

But you need to be a real high flyer in a business-critical function to benefit from this new talent war. “I see lots of front-office professionals trying for 2006/2007 pay rates, even if they are out of work. Unemployed candidates need to get real on what they’re worth,” explained one delegate.

Watch out for the second part of this report next week, in which the panelists give their opinions on agencies, referrals and contractors.