Nearly 60 percent of companies operating in the city intend to add staff for new positions in the current quarter, indicating increasingly stronger economic activity, according to the latest survey released Thursday.

The overall hiring expectations of firms have risen for the fourth consecutive quarter, said Hudson Global Resources (Hong Kong) Ltd, a leading human resource consulting firm, which has just completed a relevant survey of about 500 company executives from all sectors.

"The job market recovery remains strong," said James Carss, general manager of the human resource consulting firm, in a report detailing the results of the survey.

"Employee morale is up in all sectors and most employers are willing to make counter-offers to retain key staff," he said.

About 59 percent of companies surveyed said they plan to expand their payrolls in the current quarter, significantly higher than the 14 percent a year earlier, Hudson said, noting that the latest figure is also higher than the 53 percent in the first quarter.

Hudson also noted that employers in the banking and financial services sector are more ready to expand their payrolls as they increasingly believe the sector is returning to normality after the financial crisis.

About 73 percent of respondents from the banking and financial services sectors expect to hire more workers this quarter.

Meanwhile, fewer employers plan to reduce their headcounts now, with only 2 percent of executives surveyed this time having said they plan to do so, down sharply from 22 percent a year earlier. In the previous survey conducted in the first quarter this year, 4 percent of respondents said they plan to cut their payrolls.

As demand for talent grows, most companies proactively fence off poachers, with two-thirds of respondents having said they are willing to offer a higher salary to retain a worthy employee who tries to leave for another employer, Hudson said.

Among those who are willing to make counter-offers, 82 percent believe a pay increase is the most effective tactic to retain a good employee, while 41 percent choose promotion and 35 percent choose training and skill development.

Meanwhile, employee morale has been rising in general since the end of the economic downturn, with 41 percent of respondents believing that morale has improved and only 16 percent of respondents having reported believing the opposite, the survey revealed.

China Daily

(HK Edition 05/14/2010 page2)