SAR's property management, services worst affected, says poll

Hong Kong's high staff turnover rate, particularly in the services sector, has become a major concern for many employers, a survey by the Hong Kong People Management Association and Hong Kong Baptist University has found.

The results of the survey, released on Thursday, showed that property management and the related services segment had the highest turnover rate at 42.3 percent between July and September this year, followed by professional services at 34.2 percent and the retail sector at 31.5 percent.

"The staff turnover rate in the services industry remains high as people keep looking for shorter working hours, a better working environment and salary increases," said Felix Yip, a senior lecturer in the Department of Management at Hong Kong Baptist University.

The average working hours in the service sector was almost 50 hours a week during the survey period, compared with an overall average of 43.4 hours for all industries, the poll showed. And the average salary increase in the services sector ranges from 3.6 percent to 5 percent - lower than that in the construction and engineering fields.

But the demand for workers in the services industry has remained strong, forcing some employers to offer better wages and more flexible working hours to attract new people. This has increased employment opportunities for workers with more experience and better skills. "With the unemployment rate ranging from 3.1 to 3.3 percent so far this year, we can see people in the industry having little problem with finding better paying jobs," said Yip.

Alexa Chow Yee-ping, managing director of Centaline Human Resources Consultants, told China Daily that a turnover rate of more than 40 percent among junior employees in the city's services sector could cause serious problems for employers.

She stressed that a persistent high staff turnover would significantly hurt efficiency and depress employee morale. What's more, it's impossible to build or maintain a lasting corporate culture when people come and go all the time, she said.

More importantly, a high turnover rate affects the continuity of quality of services, which is the key to a company's success in that sector, Yip said.

"I think a 10-percent turnover rate (for new employees) is acceptable. Anything more than that would spell trouble that needs to be fixed by the management," Chow said.

She said there are many things a company can do to retain its staff other than higher pay and shorter working hours. Many local companies, hard pressed by narrowing profit margins and rising rents, are offering their workers more flexible working conditions to entice them to stay, she said. Some employees, for instance, prefer working flexible hours because they need more time for their families, she said.

Chow added that some young employees value training opportunities more than comprehensive medical plans. "Instead of imposing one-size-fits-all employment terms, employers can be more flexible in meeting their employees' needs and demands," she said.

Contact the writers at amandahua@chinadailyhk.com and sophiehe@chinadailyhk.com

White-collar workers in Hong Kong's central business district. High staff turnover rates may hurt the development of the services sector, one of the city's pillar industries.  Parker Zheng / China Daily

(HK Edition 10/24/2014 page8)