Salary & Employment Forecast - Michael Page Hong Kong

Financial Services
Employment conditions
Recruitment levels in the financial services
sector remained positive over the last
12 months, with sustained hiring activity
occurring across front, middle and back office
areas over the first three quarters of 2011.
Demand was strong for transaction and
corporate banking Relationship Managers
and Product Specialists, especially those
with fluent Mandarin language skills. There
was also an increased requirement for
professionals in the area of corporate credit
banking risk, as well as senior compliance
professionals within private banks. As firms
continued to compete for the best talent,
replacement hiring increased in the areas
of equity research, credit research and
investment banking. The fourth quarter of
2011 saw hiring activity largely stabilise with
the uncertain global economic conditions and
the traditional slowdown in recruitment activity.
While most financial institutions remain
positive about the growth potential of Asia
markets, European and US economic
sentiment has prompted many firms in Hong
Kong to take a more conservative approach
to hiring in early 2012. A number of large US
and European based investment banks are
limiting headcount approvals, with roles linked
to asset and project financing also coming
under scrutiny as many financial institutions
become stricter about their loan practices.
Limited hiring in these areas has created the
opportunity for second tier local, regional and
global banks to take advantage of the strong
pool of financial services talent that exists
within the Hong Kong market.
Skills in demand
Despite concerns around the strength of
global markets, strong economic growth in
China continues to fuel increased business
activity in Hong Kong and there is particular
demand for professionals with Mandarin
language skills in all areas. Financial services
professionals with regional experience
are increasingly required to manage client
relationships in Greater China and across
the Asia Pacific region. Analysts and
associate level bankers that graduated from
top Chinese, US or European universities
with more than two years of investment
banking experience are considered especially
valuable by employers in Hong Kong, as are
experienced credit risk professionals.
Demand is high for compliance professionals
with private banking experience, due to the
strong levels of growth in this part of the sector.
Professionals with a control-room compliance
background are also in short supply.
With an increasing number of regulatory
requirements coming from local and
international regulatory bodies, professionals
with product control, valuations and regulatory
reporting experience are increasingly required.
Due to skills shortages in these areas,
candidates from outside Hong Kong are often
being considered for domestic roles.
Salary expectations
Most financial services companies will be
reviewing the salaries of their employees over
the next 12 months. While some employees
will be receiving a 1% to 2% increase to
their salaries, the average percentage salary
increase is likely to be in the 3% to 6% range.
Above average rises will be reserved for top
performers across all areas of the sector.
Although a level of uncertainty exists around
the strength of global markets, many top
performing financial services professionals
in Hong Kong are still expecting bonus
payments for their achievements over the
last 12 months. Financial institutions that
have maintained healthy levels of growth
and profitability on both the buy side and sell
side will be in a position to reward their best
people with retention bonuses. For institutions
or divisions that have struggled as a result
of the global economic climate, internal
non-financial incentives such as training and
project opportunities are starting to replace
the awarding of bonus payments.
Market outlook
Replacement hiring is expected to increase
following the awarding of bonuses from
overseas headquarters. Throughout the
year, sustained demand for professionals
with skills in compliance, credit risk and
regulatory reporting is predicted to continue,
as will the requirement for Mandarin language
skills across all sectors. Also expected is the
expansion of hedge funds and private equity
firms focused on distressed assets in China
and the wider Asia region.
Employers in Hong Kong will continue to
monitor the strength of global economic
conditions carefully. Many employers are
looking toward contract hires in middle and
back office areas as an interim workforce
solution, with some financial institutions
also starting to plan for pipeline hires for
when headcount approvals are more readily
available. A growing number of candidates are
also expressing an interest in moving roles over
the next 12 months, often to areas outside of
the banking sector. This activity will fuel the
need for replacement hires throughout 2012.
Although global conditions are uncertain,
recruitment activity in the financial services
sector is expected to improve as international
markets gradually regain their strength.
Salary & Employment Forecast 2012 12