A survey conducted by the recruitment firm Michael Page reveals that almost 70 percent of Hongkongers are quitting their jobs in China-headquartered companies due to rigid office culture and low salaries, and about 44 percent of Chinese companies that entered the city are struggling to retain talent in the former British colony.
The survey involved polling 2,998 Chinese firms and employees who used to work in such companies from different industries this September 2018, the South China Morning Post reported.
John Mullally, the director of Hong Kong Financial Services and Shenzhen from Robert Walters, said most Chinese companies have a lot of money, so they come to Hong Kong to make big plans. Hongkongers would then embrace the opportunity, thinking they might play a role in the big change. But then, they will eventually realize that the majority of decisions were made in the head office in China.
One of the main reasons why Hongkongers opt to work in Chinese companies is because of high salaries. However, they tend to agree to an income that's lower than what they expected, wherein 67 percent of quitting employees said their salary was lower than they'd expected.
Another reason why Hong Kong employees quit their job in Chinese companies is due to rigid office culture. For instance, the 22-year-old Hong Kong local Calvin Lam decided to quit his job as a management trainee in a Chinese bank because he had experienced two months of rigid office culture. He said the atmosphere in their office becomes stiff as soon as their boss stepped into the room, making them feel uncomfortable.
Lam also said a management trainee's base salary in a Chinese bank based in Hong Kong is about 33 percent lower compared to European banks, but Chinese banks offer higher bonuses than foreign peers. However, Mullally noted these problems only apply to some Chinese companies, not in general, as there are also good companies like Tencent and Alibaba.
Meanwhile, Daniel Lau, the senior consultant from recruiter Silverstrand Executive Search Limited, said it's reasonable Chinese companies are more controlling over their business upon entering a new region. He explained that some second and third-tier companies usually offer lower salaries when they first get established in a new city, but as soon as they catch up with the market, they will offer better compensations.
Lau added Chinese companies were improving over the past years as they are now learning to adopt the Hong Kong culture. He believes Chinese firms could overcome the challenges in hiring and retaining their employees, and they'll continue to make a huge impact on the Hong Kong market compared to other international firms.
