Hong Kong: The HR Function post-COVID19

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In a KPMG Global Survey, 77.5% of Human Resource Executives in Hong Kong indicated that they are in the midst of restructuring their companies to adapt to the new reality. This is also noted to be significantly higher compared to 59% of executives worldwide.

In the survey, the Asia executives – which includes 42.5% Hong Kong respondents – placed “managing performance and productivity in a remote working environment” as the top capability that the HR function must add value in today’s business climate. Not just specific to Hong Kong, the importance of the HR function in businesses is more crucial now than ever. HR leaders need to re-evaluate current work models and architect a new plan to keep their people connected, motivated and productive.

Many HR executives in Hong Kong also indicated their expectations to make major investments on digital platforms that can connect and automate the backend HR processes to create a more streamlined employee experience across the organisation. Learning and development in the office will begin to look a lot more different in the coming years.

Right now, the roles of HR professionals are more recognised than ever as they are expected to play more than just a support function to businesses today. HR’s key functions are also seen to expand across developing new policies like flexible work arrangements, advising and developing strategies that can help the business sustain itself in the long run. This has increased the demand for experienced HR professionals in organisational development as well as HR information systems.

In the near future, we foresee that the development of the HR function in Hong Kong will be expedited in order to blend into the pace of change. HR analytics will definitely be largely incorporated into majority of the HR functions.

This article is written with reference from:

KPMG. (2020, September 22). Majority of Hong Kong HR executives indicate they are in post-recovery phase of COVID-19, digital technologies key for f. Retrieved June 21, 2021, from KPMG website: https://home.kpmg/cn/en/home/news-media/press-releases/2020/09/majority-hk-hr-executives-indicate-in-post-recovery-phase-of-covid-19-digital-technologies-key-for-future.html

Singapore: Are Singaporeans prepared for remote work?

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With a flurry of changes the pandemic has caused, businesses have been forced to set up remote work arrangements without well-planned preparations. A year into living in the pandemic in Singapore, most businesses have adapted to hybrid working arrangements as the restrictions to go back to office ease up.

There is a general consensus across the population that telecommuting will be the way of the world sooner than we think, as job portals continue to churn out long lists of new jobs that are now designed for remote work. However, the lack of preparation and planning before remote work had to be effectuated has proven to be a struggle for many Singaporeans.

In a survey conducted by the National University Health System’s Mind Science Centre, 61% out of 1,407 respondents reported feeling stressed at home. This opens up to reasons such as tension from living round the clock with family or not having an ideal working environment at home.

Not only within employees’ personal predicament, but tensions between employers and employees also exist. Telecommuting is largely linked to the idea of “taking time off”, and some employers can face the struggle of trusting employees to stay motivated and efficient. But given the current climate of the pandemic, employers have to learn to manage their perceptions and also exercise compassion towards employees who have a poorer work environment at home. 

In this economic recession, flexible work from home arrangements can bring about a lot of cost-saving benefits for employers. Although not all jobs can be done from home, this pandemic has reshaped many attitudes towards telecommuting, and it is expected that there will be a gradual migration towards hybrid work in the future.

Even then, the traditional way of working in the office will never be completely eroded, since there are still a significant number of employees who prefer going to the office. Direct interactions, greater productivity and stronger focus are some reasons for their preference. After all, technology will never fully replace the human touch.

As Singapore moves towards a COVID19 free zone, employers can take this time to rethink their business plans after the pandemic. With more employees embracing the idea of telecommuting, this is a new reality that the population will have to adapt to sooner or later. 

If you are looking to expand your business in Singapore, feel free to connect with us for professional insights and advice regarding the market. Click here to be redirected to our services page to learn more.

This article is written with reference from:

Sin, Y. (2021, January 1). Telecommuting amid Covid-19 pandemic paves way for new workplace culture. Retrieved June 21, 2021, from The Straits Times website: https://www.straitstimes.com/singapore/work-from-home-arrangements-could-pave-way-for-new-workplace-standards

Tang See Kit. (2020, May 25). Goodbye office: Is the future of work in our homes? Retrieved June 21, 2021, from CNA website: https://www.channelnewsasia.com/news/business/goodbye-office-work-from-home-future-covid-19-12758558

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Hong Kong: The future of hybrid work

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As businesses scurry to adapt to the rhythm of life amidst the pandemic, digitalisation becomes an indisputable recourse. In Hong Kong, businesses have displayed strong resilience through the severe disruptions that the pandemic has caused. Hybrid work is now the new normal, and according to Robert Half’s 2021 salary guide, 80% of Hong Kong employees would prefer at least a day of remote working after the pandemic. 

The report also revealed the challenges of creating a sustainable hybrid work arrangement. Technology poses the biggest hurdle for both employers and employees, especially in SMEs. Many smaller firms are still incapable of setting up a suitable system for sustainable hybrid work because of the inability to invest in the right technology. Those that are able to, face challenges like communication, management and motivation.

In another research done by the Hong Kong Productivity Council, it unveiled that Hong Kong employers and employees both recognise the future of hybrid work, but only 62% of the employers have plans to incorporate hybrid work permanently after the pandemic. On the other hand, the majority of the respondents who are Hong Kong employees reflected readiness in having hybrid work be a part of their future reality, and close to 70% mentioned that hybrid work is an important factor for consideration in their future career. In fact, they believe that hybrid work helps them achieve a better sense of work-life balance. 

This shows the crucial need for Hong Kong employers to start altering their business plans so that it includes hybrid work as a part of it. In order to attract and retain the top candidates, employers need to prioritise setting up a sustainable hybrid working system and demonstrate their stability amidst unpredictable times. 

This article is written with reference from:

Chan, S. (2021, June 11). Employer vs employee: Is hybrid work really the future of work in HK? Retrieved June 21, 2021, from Humanresourcesonline.net website: https://www.humanresourcesonline.net/employer-vs-employee-is-hybrid-work-really-the-future-of-work-in-hk

Lam Ka-sing. (2021, April 20). Two of three Hong Kong office staff want to keep working from home, boding ill for demand in the world’s… Retrieved June 21, 2021, from South China Morning Post website: https://www.scmp.com/business/article/3130267/two-three-hong-kong-office-staff-want-keep-working-home-boding-ill-demand

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Singapore: What is happening to the Labour Market in 1Q 2021

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Singapore’s unemployment rate peaked at 3.5% during September 2020, but things are picking up, and confidence amongst employers is growing, slowly but surely. Uncertainties still abound for many industries – especially the hard-hitting sectors – but the Singapore Government’s swift response to supporting wages through the Job Support Scheme has played a major role in mitigating the financial impact for many businesses. 

As of 3 June 2021, the unemployment rate of Singapore stands at 2.9%. Total employment is reported to have grown in 1Q 2021, the first time since the start of the pandemic. The growth mainly resides in resident employment, while non-resident employment continues to contract across all sectors. However, retrenchment levels have also fallen to pre-pandemic figures, which is a positive sign of a broad-based recovery after 5 quarters of increment.

According to statistics by MOM, the bulk of employment expansion comes from sectors such as Information & Communications, Financial Services and Professional Services. Manufacturing and Construction continue to see muted growth, an inevitable situation due to protracted travel restrictions affecting the inflow of work pass holders. 

Despite that, hopes are still aplenty as business sentiment grows positively. In March 2021, 73% of companies indicated that they have plans to hire, which is an improvement from 65% in December 2020. The labour market in 1Q is definitely showing encouraging signs that Singapore is inching forward towards broad-based recovery, but it will still take some time before a sense of normalcy resumes. 

For more information regarding the labour market 1Q 2021 in Singapore, refer to https://stats.mom.gov.sg/Pages/Labour-Market-Advance-Release-1Q-2021.aspx

This article is written with reference from:

Ministry of Manpower Singapore. (2021, April 28). Infographic: Labour Market Advance Release First Quarter 2021. Retrieved June 21, 2021, from Mom.gov.sg website: https://stats.mom.gov.sg/Pages/Infographic-Labour-Market-Advance-Release-1Q-2021.aspx

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Hong Kong: The battle against the climbing unemployment rate

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After a series of unfortunate events due to social unrest and COVID-19 pandemic hitting the shores of Hong Kong, the unemployment rate climbed to an all-time high of 6.6% in the last quarter of 2020. This is the new 16-year peak of unemployment rate in the renowned “Asia’s world city”. 

With tourism fuelling Hong Kong’s economy significantly, it is a tough battle against COVID-19 due to unprecedented travel restrictions. Inevitably, consumer-facing services and tourism-related industries are some of the hardest-hit sectors, as unemployment spikes across companies in these affected industries.

However, this volatility does not remain negative. The employment rate has slightly plateaued and is observed to improve slowly due to the economy’s rebound and the receding of COVID-19 infections. With time, businesses have adapted to telecommunication methods, and this is the beginning of the road to recovery. As Mainland China’s economy picks up, this gradual boost is helping Hong Kong speed up its economic recovery, since Mainland China remains to be Hong Kong’s largest destination for goods imports and exports. 

Hong Kong Secretary for Labor and Welfare – Law Chi-Kwong – highlights that the labour market in Hong Kong continues to be under pressure, but hopes that the battle against the climbing unemployment rate will slowly taper off as the vaccination programme continues to keep COVID-19 under control. Although the future remains uncertain as with most countries globally, Hong Kong sees a glimmer of hope with its slow steps towards a full activation of its economic activities.

If you are a Hong Kong employer currently in need of talent, here is where we can help you with your next hire. Click here to be redirected to our recruitment solutions page.

This article is written with reference from:

Cannix Yau. “Hong Kong Fourth Wave: Jobless Rate Hits New 16-Year High of 6.6 per Cent with City Deep in Coronavirus Fight.” South China Morning Post, South China Morning Post, 19 Jan. 2021, www.scmp.com/news/hong-kong/hong-kong-economy/article/3118331/hong-kong-fourth-wave-jobless-rate-hits-new-16. Accessed 21 June 2021.

Kwan, Rhoda. “Hong Kong’s Unemployment Rate Falls as Covid Eases, Democrat Urges More Gov’t Support for Jobless | Hong Kong Free Press HKFP.” Hong Kong Free Press HKFP, Hong Kong Free Press HKFP, 20 May 2021, hongkongfp.com/2021/05/20/hong-kongs-unemployment-rate-falls-as-covid-eases-democrat-urges-more-govt-support-for-jobless/. Accessed 21 June 2021.

Lam, Eric. “Hong Kong Jobless Rate Drops for Second Month on Better Economy.” Bloomberg.com, Bloomberg, 20 May 2021, www.bloomberg.com/news/articles/2021-05-20/hong-kong-jobless-rate-drops-for-second-month-on-better-economy. Accessed 21 June 2021.

Singapore’s Job Support Scheme 2021: What you need to know

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With COVID-19 landing businesses in a harrowing situation, the Singapore Government has stepped up their support to lend a helping hand. Since February 2020, over $25 billion has been committed to effectuate the “Job Support Scheme”, all of which has cushioned the financial blow for more than 150,000 employers thus far. It has mainly subsidised between 25% and 75% of wages paid for a span of 10 months.

On February 16 2021, Deputy Prime Minister of Singapore, Mr Heng Swee Keat, announced the extension of the Job Support Scheme. Singapore will be dedicating an additional $700 million for the Job Support Scheme in 2021 to continue its support for affected businesses. Depending on which tiers of sector your business falls under, there will be varying levels of coverage.

Up till 21 June 2021, the Enhanced Job Support Scheme covers the following:

Tier 1 Sectors50% of the first $4,600 of gross monthly wages per local employee 
Tier 2 Sectors30% of the first $4,600of gross monthly wages per local employee 
Tier 3A Sectors10% of the first $4,600 of gross monthly wages per local employee  
Tier 3B SectorsNo subsidy

However, from 21 June 2021 to 30 June 2021, in light of shifting back to Phase 3 restrictions, all sectors with enhanced JSS support will receive 10% of the first $4,600 of gross monthly wages per local employee.

Aside from employers, there are also ongoing schemes to support jobseekers in the midst of the depressed job market. The target for 2021 is to support the hiring of 200,000 locals and provide up to 35,000 traineeship opportunities. $5.4billion out of the $11billion COVID-19 Resilience Package will be forked out for the extension of specific measures under the SGUnited Jobs and Skills Package. Essentially, this is Singapore’s efforts in encouraging companies to continue hiring locals by providing extended wage support up to 12 months. Companies hiring mature workers, persons with disabilities will receive up to 18 months of wage support. 

For more specific information about the classification of sector tiers for employers and payout dates, refer to https://www.iras.gov.sg/irashome/schemes/businesses/jobs-support-scheme–JSS-/. 

This article is written with reference from:

IRAS. “IRAS | Jobs Support Scheme (JSS).” Iras.gov.sg, 2021, www.iras.gov.sg/irashome/schemes/businesses/jobs-support-scheme–JSS-/. Accessed 21 June 2021.

Priya Sunil. “Singapore Budget 2021: Key Highlights for HR and Employers.” Humanresourcesonline.net, 17 Feb. 2021, www.humanresourcesonline.net/singapore-budget-2021-key-highlights-for-hr-and-employers. Accessed 21 June 2021.