HONG Kong and Greater Bay Area employers became less optimistic on hiring this year as bonus payments sank, underscoring the difficulties faced by the financial hub, according to a KPMG survey.

Only 26 per cent of employers are expecting an increase in headcounts in 2024, down from 37 per cent last year, according to the annual Hong Kong Executive Salary Outlook Survey released by KPMG on Thursday (Mar 14).

Top level executives were more upbeat, with 41 per cent expecting an increase. Still, that is down from 48 per cent last year.

“This year’s results signal that there will continue to be demand from C-level executives for talent that can drive performance,” said David Siew, KPMG China’s people services partner.

“Ongoing business transformation and the changing business environment will mean that roles and responsibilities will continue to evolve.”

Banks and investment firms have been trimming their workforce and scaling back their operations in the region, amid a prolonged sell-off in Chinese stocks, a deep housing slump and sluggish economic growth.

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Expectations for decreased headcounts rose across all six sectors the survey took the temperature on compared to the prior year. The study is based on 1,103 respondents in Hong Kong and in mainland China cities in the Greater Bay Area.

Bonuses declined to an average of 2.3 months last year, down from 2.4 months in 2022.

Financial services and real estate saw a steeper decline in bonus payments, reflecting the challenges these sectors faced during the year, according to the survey.

Some other points from the survey:

• 73 per cent of respondents would consider relocating within or to the Greater Bay Area for work in 2024.

• 39 per cent of respondents are considering career moves in the first six months of 2024.

• 78 per cent of respondents in Hong Kong expect an increase in salary in 2024. BLOOMBERG