In a survey of 25 job markets carried out in January by Manpower Group, Hong Kong ranked as the best place for employing contractors, based on factors such as talent availability, labour regulation and productivity. Historically Hong Kong was never seen as an attractive location for contracting roles.

 

Up until a couple of years ago, contractors’ pay would lag behind permanent employees and companies wouldn’t grant them the same health and vacation benefits. There was also a shortage of suitable talent as the term ‘contractor’ was still viewed negatively amongst the market despite the obvious the flexibility it creates for both parties.

 

This is now changing with wages reaching parity and the benefits afforded to contractors being on par with permanent employees.With most firms still under headcount constraints, employing contractors allows firms to retain capacity without eating into headcount costs and obtaining signoff from head office.

 

The increasing regulation around Dodd-Frank, FATCA and Basel III is creating a wave of short-term assignments to help get firms ready for impending compliance dates.

 

With the Hong Kong market changing its mindset, this is a win-win for both employers and budding contract staff.