Hong Kong Career Blog

Amplified salary pressures and climbing attrition rates as employees lured by better remuneration packages.

Despite Q3 reporting cautious approaches to remuneration, Ambition‘s recent survey indicates that salary increments and bonuses are now firmly back on the corporate agenda.

Q4 poised to bring bonuses that could exceed 30% in Singapore

In Ambition’s quarterly client survey of more than 450 respondents from across Asia, it was encouraging to see that market confidence is returning, particularly so in Singapore. In Singapore, only 2% of respondents indicated that there would be no salary increment, whilst a very positive 86% of respondents in Singapore indicated that salary increments would be 2% to 6%.  

Continuing with the positive news, it is also likely that the market will see an increased number of employees receiving a bonus this year. In fact, 69% of respondents in Singapore stated that the average employee can look forward to a bonus of up to 20%, encouragingly higher than the market has seen for some time. And at Director level the good news continues with 39% of respondents indicating that bonuses would be up to 20%, 51% of respondents indicating above 20% and 24% even indicated that bonus payouts could exceed 30%.

Attrition threat continues to climb for nearly 50% of Singapore-based businesses

On the downside, H2 2010 has seen a considerable shift in candidate’s confidence in the market as the number of candidates looking at opportunities outside of their current employment continues to increase. This has meant that the market is seeing a much higher level of attrition, reiterating the importance that employers need to ensure they are doing all they can to hold onto their best employees.

The survey results revealed that almost 50% of respondents in Singapore indicated that their attrition rates increased in 2010. 67% of which indicated that the main reason for this was due to employees being lured by better remuneration packages by competitors. This is a very real threat in what has quickly become a talent short market. However, the run up to Christmas offers some reprieve as employees wait for their bonus payout (normally in February/March time), but given growth is firmly on the agenda through 2011 for over 70% of respondents, the trend is set to continue.

Training, development and career progression key to employee retention

Paul Endacott, Managing Director, Singapore elaborates, “It is encouraging that the vast majority of employers are paying out salary increments and bonuses this year based on improved business performance. Nevertheless, given that the overwhelming reason employees have given for changing jobs is the lure of more attractive remuneration packages, employers need to focus on retaining their best people.

“As such, we expect most companies will offer a salary increment of between 2% and 6%, but based on our previous survey, candidate’s switching jobs will get an average increment of between 8% and 15%. It would be unrealistic and indeed unsustainable for companies to offer all employees salary increments of this size, so there needs to be a focus on retaining people through training, development and career progression. An increased attrition rate, coupled with the difficulties of attracting high caliber talent in a talent short and hugely competitive market like Singapore is possibly the greatest threat to business growth.”

Business Week reported that Morgan Stanley is yet another financial services firm that is planning to add headcount in Asia in the near future.

In the next year alone, the company expects to add around 100 bankers to its regional staff.  Morgan tapped Nick Chan, formerly of the Goldman Sachs Group Inc.,  to lead the company’s recruitment and staffing effort in Asia.

Charles Mak, head of private wealth management for Morgan in Asia, commented:

“This will be our most aggressive expansion in the private wealth space in Asia…This region has the best economic growth, the highest levels of wealth creation, and many players are coming to this part of the world, or are expanding.”

Many observers believe that growth in Asian wealth will remain ahead of the global average and, as a result, the firms that best position themselves to serve the needs of their Asian clients will reap huge rewards.  Bloomberg reported:

“Wealth in the Asia-Pacific region, excluding Japan, is expected to rise at almost double the global rate, according to an annual study by the Boston Consulting Group.

The region will increase its share of global wealth from 15% last year to almost 20% in 2014, with China and India the engines of growth, according to the report released on June 10. Together, the two countries will make up 75%, or almost $9 trillion, of the increase in assets managed in the region.”

Morgan certainly wants to take the lead, as they serve an ultra- high net worth segment in Asia, generally working with clients who have in excess of $10 million.

However, there are challenges to the company’s recruitment efforts.  For one thing, the competition for the kinds of professionals they are seeking is intense and they are up against the likes of BSI, Standard Chartered and other similar outfits.  Further, the firm’s standards (not to mention those of its clients) are high, making finding and hiring the right people no simple task.  We and other observers have noticed the increased hiring targets set by a number of banks and financial services firms, and it can be argued that the talent pool is simply not deep enough in certain industries.

However, we also expect that that there will continue to be flow through effects, resulting in the creation of new back of house jobs, including accounting, ops, marketing and corporate comms.

To view some of the open positions in these fields, please visit Ambition Hong Kong and Ambition Singapore

With improving economic conditions in Hong Kong and Singapore, we have been receiving a growing number of requests to search for candidates recently.  Each week, we will continue to feature some of our latest, most thrilling job opportunities.   Below are some of the newest positions that we are looking for top notch professionals:

1. 1. Marketing Manager – New Media Business

Our client is a leading international new media company. In light of market demand and expansion, a challenging role has arisen for a acquisitions and retentions specialist to join the team as Marketing Manager.

Based in Hong Kong and reporting to the Director, you have to improve key metrics, subscription revenue, content development for the assigned channels. You need to execute program and usage stimulation campaigns including promotion concept design, identify target customers, budget controls and operational logistic flows. You are also required to seek new customers and develop various events for the channels. Other responsibilities include regular competitive analysis, market trend analysis and customer focus group studies to maintain market intelligence.

2. Proposition Manager, Product Strategy and Development

Our client is an European based, top provider of sophisticated financial products. Their products are well established and highly recognized by corporate and retail customers in Europe and Asia. A new opportunity now exists for a seasoned financial product specialist to join the regional team in Hong Kong as the Proposition Manager for North Asia.

Reporting to the Senior Manager, Product Proposition Development, your main responsibilities will be to liaise with other proposition experts in the region to drive investment and savings proposition strategies by researching the life and investment market and understanding needs of both the customers and distributors. You will develop and manage the end to end product and proposition requirements and ensure the existing and upcoming product portfolios are competitive enough to drive sales and accelerate market growth. Other responsibilities include offering of quality training to the regional sales offices and local sales teams as well as providing support to the new product and fund launches.

3. FP&A Business Partner

Our client is a market leader, US-based Technology organisation that is expanding exponentially in Asia. In light of this, they are now seeking for a high calibre commercial individual to join the organisation as Regional Senior FP&A Analyst / FP&A Finance Manager (title depending on level of experience). This is a newly-created and highly rewarding position within the Regional Finance organization.

Reporting to the Regional Financial Controller, you will have overall responsibility for the business planning, budgeting, forecasting, financial analysis and management reporting for the region. The candidate is expected to take ownership of driving critical business decisions from a Finance standpoint, through providing critical in-depth financial & business analysis, and pro-actively influence and support business growth for this strategically-aligned role.

This is a fantastic opportunity for a strong and business savvy finance professional displaying strong analytical and change management capabilities taking ownership for the FP&A spectrum and to further hone his/her management skills towards eventually being a multi-faceted finance leader.

4. Finance Manager – Programs & Inventory

Our client is a US multinational, leader in the IT&T industry with a renowned presence in Asia Pacific. The company is looking to add a strong finance advisor to their Ops Controllership team in Singapore to support the APAC operations team.

Reporting to the Senior Finance Manager of the Ops Controllership Team and managing a team of 2, the Finance Manager for Programs & Inventory will have key responsibilities in overseeing the end to end operations and statutory accounting for the main business streams.  Also, he/she would be acting as the strategic advisor in the APAC Operations team towards supporting new initiatives, projects and business model changes in the various business streams. The position will be a subject matter expert to the Supply Chain; Customer Ops & Program Managers in particular, being accountable for financial statement figures; understanding systems/processes and business flows for special projects. Being solely accountable for the inter-company accounting and maintaining the integrity of the statutory model and transfer pricing policy whilst working closely with the Shared Services team will be essential.

This highly dynamic & exciting role offers an excellent opportunity for career progression in the long run, especially within an organization that advocates strong long term nurturing of high potential talents into well-rounded assets.

To find out more about these jobs and to search for other openings, please visit our job search pages at Ambition Hong Kong and Ambition  Singapore.

Anyone considering taking a job abroad will have to first and foremost calculate how much they’ll need to earn in order to maintain the standard of living that they are accustomed to.  If you underestimate your expenses, even if you are getting a relocation package, your “raise” may not be enough to make it worth moving you and your family to another country and you may in fact end up barely making ends meet.  One of our main goals is to help expats make informed decisions about their career choices, including whether or not they should relocate at all.  One thing to consider is whether you will be paid based on your local market rate or those of the country to which will be moving.

The Business Times has recently reported that many expatriate compensation packages could be reduced as more international companies in Singapore, and other Asian markets, set their rates against local and foreign rates rather than salaries in their home countries.  

According to the story, one in five expatriates is currently receiving packages based on Singapore market benchmarks.  These benchmarks can be based on what other expats are paid or even on local rates.  This represents a 6% increase compared to the prior year.  This trend seems to be due to an effort on the part of foreign companies to reduce costs and also because firms are assigning workers to Singapore on longer-term contracts.  However, recent surveys have indicated that local salaries in Singapore remain at nearly 80% of those of similarly qualified expats and therefore any adjustments would have a fairly limited effect.  Nonetheless, a 20% differential in compensation may be enough to make many expats reconsider engagements abroad.

However, these changes in compensation were largely aimed at allowing firms to get through the economic downturn, and with the slight resurgence of the Asian economies, we expect that this trend will likely not continue its upward swing.  Further, ‘home-based compensation’ is still the rule of thumb, as more than 60% of expats in Singapore are receiving salaries based on home rates and this will likely remain the dominant compensation model, especially for high level executives.

This is not limited to Singapore, as Hong Kong the number of multinationals using local benchmarks rose from 16% to 25%, while the Asian average is 8% and the global average is 11%.

To help candidates assess the state of the job market in Hong Kong and Singapore, Ambition publishes bi-annual reports on the current market trends within Accounting & Finance, Banking & Financial Services and Sales & Marketing recruitment.

To view these reports and to check out more of resources for job seekers, please visit us at Ambition Hong Kong or Ambition Singapore.

We are receiving a growing number of requests to find candidates for great opportunities in Hong Kong and Singapore as companies continue to ramp up their recruitment efforts.  Each week, we will continue to highlight some of our newest, most exciting jobs.   Here are just some of the latest positions for which we are seeking top quality professionals:

1. Senior Accountant (Management Reporting & Analysis)

Our client is a listed High Tech company with a strong presence in the Asia Pacific region. Despite the competitive nature of the industry, they are well positioned in the market and are ready to further strengthen their growth in the region. Therefore, they have an urgent need for a Senior Accountant to be based in their Hong Kong office.

Reporting to the Accounting Manager, you will supervise a small team to consolidate financial figures for the monthly management reports, forecasting, variance analysis and producing internal control reports. You will assist in identifying business and control risks and advise management on the control and procedural measures required to mitigate those risks. You will ensure the team handles the management reports accurately and in a timely manner. Liaison with internal and external auditors is also required.

Learn more and apply…

2. Corporate Accounting/Legal Entity Control – Tier One Bank

Our client is a Top Tier Investment Bank with a strong reputable brand, well known for the high calibre of candidates they take on board. An opportunity now exists for an individual to join their first class team of legal entity controllers.

The function of this team is to control the companys various subsidiaries in Singapore. You will be required to maintain the subsidiaries books and records, preparing the financial statements under the relevant local GAAPs as well as the consolidation reports under US GAAP. You will need to ensure that regulatory requirements are met, as well as ensuring control standards are maintained and documented. This role promises excellent exposure and opportunities for career development and rotation.

Learn more and apply…

For more information on other sales and marketing opportunities, please visit us at ambition.com.hk and ambition.com.sg

We recently commented on the increase in demand for back office professionals in Singapore, but that’s not the only city in Asia that is heating up with back hiring.  Hong Kong has thrown its hat into the ring as one of the world’s hiring hot spots.  Ambition’s Amy Ho was recently quoted in an article at efinancialcareers.com:

“Hong Kong is still the regional hub for most finance functions for the majority of international banks. Regional tax business-heads are usually based there, rather than Singapore. ‘There is a need for tax advisory teams to work closely with the front office on new products/transactions related to tax issues,’ says Amy Ho, manager of banking and financial services, Ambition Hong Kong.

The pool of tax professionals from Big Four accountancy firms or law firms is also larger in Hong Kong than Singapore. ‘So the regional tax professionals can partner them as external advisors, and this also provides a source for the banks to recruit from,’ adds Ho.

…

‘There is continued recruitment of compliance professionals, especially people who have sales and trading, control room or investment banking exposure. As Hong Kong is the regional centre for many banks’ sales and trading floors, the need for product-compliance specialists remains strong’, says Ho. Candidates with equity derivatives knowledge are in particular demand.

‘Similarly, a number of banks have established regional control-room compliance teams based in Hong Kong. With the IPO market expected to pick up throughout the year, firms are also strengthening their compliance teams with ECM specialists,’ she adds.”

This is just another indicator that while hiring for finance is increasing, there is also a trickle-down effect on hiring for support positions throughout Asia.  Further, although many top-level front of office jobs are being filled by Asian-born professionals, there are many opportunities for expats with significant experience  in Asia.

To explore some of the hot job openings we have in Hong Kong and Singapore, please visit us at Ambition Hong Kong and Ambition Singapore.

Ambition’s Sam Belcher recently commented on the increase in demand for skilled back office professionals in Singapore.  This uptick in recruitment is being fueled by companies seeking to bring their staff back to full strength after operating shorthanded for much of the last year.  Singapore’s status an international finance hub, with relatively low costs of doing business, is also contributing to the increased demand.  From a recent article at efinancialcareers.sg:

“Why are there more vacancies? ‘This is mainly driven by the increasingly stringent regulatory requirements in foreign countries. With many banks now maintaining regional or global hubs in Singapore, they need candidates with a solid understanding of international regulatory requirements,’ explains Sam Belcher, manager of banking and financial services, Ambition Singapore.

British banks, for example, want candidates with UK Financial Services Authority experience.’This is also because there are parallels with the basic requirements set out by MAS. There has also been a fair amount of turnover in local reporting functions, so there is a definite demand for more senior candidates in this area,’ adds Belcher.”

…

“Candidates with accounting and operations line experience, who are keen to move into change management, are in demand, says Belcher. ‘As the market picks up in 2010, we expect this to increase even further as banks try to gain market share.’”

Read the full article HERE

To find open positions in Singapore, please visit www.ambition.com.sg

Ambition has a number of great opportunities in Hong Kong and Singapore for talented professionals.  We also expect to have even more positions for qualified candidates in the coming months, as companies begin to increase recruitment in 2010 and reverse the recent trends of downsizing and hiring freezes.  Here are just a few of the latest positions for which we are seeking top quality professionals:

1. Director, Operational Risk, Trade Finance (Hong Kong)

Our client is one of the largest international banking groups with full range services in Corporate Banking including Trade Finance. Due to continuous improvement in risk and control across the region, a newly created opportunity has arisen for an experienced Risk Manager to join the team as Director of Operational Risk Management for the Trade Finance business in Asia, based in Hong Kong.  

Reporting to the Regional Head of Operational Risk, you will manage Operational Risk for the Trade Finance business in the Asia Pacific region ensuring the highest standard of risk management and governance are implemented and best practices are aligned across the business. You will partner with the business to guide and implement robust operational risk management practices, framework and self assessments. You will prioritise key risks and processes, identify, assess, escalate and mitigate risk issues. As a key representative from Operational Risk, you will drive risk awareness program, provide thought leadership to develop a balance between risk and reward, participate in risk review groups and regional / global projects.   

To learn more, please visit our job search page…

2. VP, Marketing and Brand Management – Private Bank (Singapore)

Our client is a Global Investment Bank that has a strong APAC presence. They are now looking to recruit a talented Marketing professional to drive the marketing strategy for their Private Bank across Asia Pacific.   

In this role you will be responsible for developing and implementing marketing, branding and advertising strategies and programs for APAC region. You will managing the full spectrum of brand marketing activities, which will include developing marketing materials and brand collateral, working closely with the product teams to provide marketing support for product launches and conducting in-depth market research, marketing analysis, value proposition and positioning development. In addition you will manage the agency relationships and online marketing strategies.   

To learn more, please visit our job search page…

For more information on these and other opportunities, please visit us at ambition.com.hk or ambition.com.sg

As evidence slowly mounts that the Global Economic Recession (GER) is beginning to turn around, we believe that hiring across a few key sectors will be showing a marked increase in the first and second quarters of 2010 when compared to the same period last year.

Of course, most reports have the highest hopes for new employment prospects in Asia, as domestic demand grows in APAC countries.  However, prospects in Asia are tied to the fortunes of Western economies and markets like China and Singapore will see more limited growth if the U.S. and European markets cannot continue to maintain the modest gains they have seen in the last few months.  For an interesting take on the mutual dependency between China and the U.S., take a look at this recent NPR story.  Obviously, the jobs discussed in the story aren’t high level finance or banking jobs, but it does vividly illustrate that Asian economies can’t continue to expand unless Western markets are making some gains in employment as well.

Generally, the outlook for recruiting banking and finance professionals is certainly better than as of a year ago. Already in Q1 we’re seeing some significant increases in hiring across banks and other financial institutions which is further reinforcement of these organisations’ commitment to this region. We feel that there will continue to be strong demand in financial services but more modest gains across commerce & industry in the first half of the year. We expect that hiring away from banking will gain momentum in the second half of the year.

For a full report, please click the image below or visit our resources page at the Ambition website

Executive Recruitment – Market Trends & Salaries Report 2010

“Western banks pay out for Asia Talent” was a headline that grabbed me on the front page of the Financial Times this week (29 March 2010). The article focused on ‘big salaries for top bankers in the region’ and ‘competition leading to pre-crisis wage offers’. 

Although this referred to front line banking professionals on multi-million packages, it occurred to me that we should pass comment on banking industry pay for Ambition’s areas of specialisation in the sector: accounting, finance, operations and marketing & communications.

As we have posted before, the Asian markets are rebounding from the economic downturn faster than their Western counterparts and this in turn is beginning to manifest in a shortage of talent in the banking and financial services sector

It’s been a bruising 12-18 months within the banking & financial services employment sector but the hiring tap was firmly back on in Asia as early as May last year.

What’s important to point out is that base pay for those who retained their jobs never really went down. It was those who were unfortunately made redundant during the financial crisis that may have settled for lower base pay simply to get back into employment. If those individuals are still being underpaid relative to the market, you can almost guarantee they are looking around now.

Pay reviews in Q1 2010 broadly revealed very modest pay increases, if any, from banks & financial institutions. It was only those who were significantly underpaid or whose job had materially changed that were rewarded with raises.

It’s a different matter for those switching employer and I’m afraid we’re back into the cycle of skills shortages once again and relatively attractive pay hikes. In Q1 2010, Ambition has frequently been seeing 15 to 20% pay increases to jump ship.

On to the subject of bonuses, accountants, operations, audit, risk, compliance, marketing & communications professionals all have a much lighter back pocket from variable pay than front office bankers. That said, there’s been some very reasonable payouts of late but on average you won’t see these professionals earning more than 50% of base.

So when you read headlines about banking pay, don’t assume all employees fall into the same category.

For banking and financial services jobs which Ambition is currently handling, please visit Ambition Hong Kong or Ambition Singapore.