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Skill gaps hinder Hong Kong's tech talent pool

Companies struggle with shortages despite an increasing number of IT professionals.

Despite an increasing number of IT professionals in Hong Kong, companies are still facing a significant tech talent shortage, largely driven by gaps in skills, both technical and soft. This mismatch is impacting digital transformation efforts and leading firms to rethink their hiring strategies.

Vivian Tsang, Associate Director for Tech & Transformation at Robert Walters Hong Kong, explained that while the number of IT professionals has reached its peak since 2021, the talent shortage persists.

Additionally, government initiatives such as the top talent visa have attracted IT professionals from the Greater Bay Area and mainland China. Yet, despite these positive developments, Tsang points out, "We still have the tech talent shortage here in Hong Kong, a lot of this is actually driven by the skill gap."

According to a survey conducted by Robert Walters Hong Kong, one-third of employers reported a lack of technical skills, particularly in areas like AI, data, and machine learning. Another third highlighted a shortage of soft skills among candidates. 

The lack of qualified tech managers is also having a tangible impact on digital transformation projects in Hong Kong. "In the short term, it will cause a delay of the digital transformation process, because the time to hire seems to be longer," Tsang said, adding that the increased time to find the right talent also leads to higher project costs.

In the longer term, this shortage may force companies to reconsider whether they need to maintain certain positions in Hong Kong or look elsewhere. Tsang observes a trend where companies hiring for data or AI roles often open positions in both Hong Kong and Singapore. 

"50% of the employers came to us and said that they want to hire managerial grads instead of junior or entry-level engineers," she said. Many junior roles are being offshored to lower-cost locations like Kuala Lumpur, Manila, and parts of China, while Hong Kong remains a hub for more senior positions requiring both technical expertise and leadership experience.

"We always advise our hiring manager to hire for potential," says Tsang. This approach not only broadens the talent pool but also improves retention rates, as 60% of candidates interviewed by Robert Walters are looking for career advancement opportunities. Tsang also suggests that employers consider hiring externally, even from outside Hong Kong, though this requires careful consideration of time, relocation, and cost.

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