Hong Kong Salary Report 2010
SECTOR TRENDS – RETAIL & SOURCING
Hong Kong’s retail sector has been affected by the global economic crisis. Hiring activity remains subdued in the aftermath of store closures, shelved expansion plans and the weak trading results of major brands. The position is different in mainland China, where major retail brands continue their growth. The demand from global retail, manufacturing and trading companies for sourcing skills remains. ‘Direct buying’ offices have been reasonably consistent in their recruitment activity, and there has been increased pressure on many Asian based sourcing offices to increase volumes and drive down supply chain costs. Salaries have remained static for the year to date. Base salary components are either flat or slightly down, and bonuses have shrunk significantly. Instead of reducing salaries, some companies have chosen alternative employment cost reductions, such as options for a shorter working week. With the significant impact of large scale redundancies in the Hong Kong retail sector, some companies have asked employees to consider a reduction in salary to protect jobs. Where there are entitlements for bonuses, most are provided on a discretionary basis and at reduced levels to reflect the decline in company profits. Candidates are being more flexible in relation to salary packages in the current market and this can be seen as an opportunity for some employers. People who are unemployed will show more flexibility in their salary expectations while those who remain in secure employment are remaining steadfast in maintaining current packages and conditions. Few employees will change jobs in the current climate unless the new role is more secure with the opportunity for career growth or an increase in salary package. Source: Retail & Sourcing Forecast, Michael Page 2009
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