Hong Kong leads optimistic growth amid talent challenges

Abhishek Bajaj discusses Colliers report on how occupiers can overcome talent shortage by embracing ESG, technology, and smart real estate strategies.

As the business landscape continues to evolve in the wake of the pandemic, Hong Kong stands out with optimistic growth forecasts alongside markets like Singapore and Melbourne.

Abhishek Bajaj, managing director for Asia Occupier Services at Colliers, told Hong Kong Business magazine that whilst challenges such as the talent shortage exist, occupiers are adopting innovative real estate strategies to attract and retain employees.

These unique challenges and opportunities were cited in Colliers’ Global Occupier Outlook 2023, which was released in June and focused on insights that impact workplaces, workforces, and property portfolios worldwide.

For Hong Kong, Bajaj pointed out that the situation is not too dissimilar from other locations, with the complexities of hybrid working and the challenges of reimagining workspaces to suit the post-pandemic era.

“Our research also shows that Hong Kong is actually leading the way in growth forecasts along with markets like Singapore and Melbourne,” he said. “So, there is an optimistic view on the future Hong Kong.”

But addressing the talent shortage through real estate strategies is crucial for companies across the region, said Bajaj as he emphasised three key areas for occupiers to consider — portfolio mix, technology integration, and a focus on ESG (Environmental, Social, and Governance) and D&I (Diversity and Inclusion) initiatives.

Regarding portfolio mix, occupiers must have a well-defined hybrid strategy. “Quality has become much more important than quantity. A lot of companies are shedding a little bit of space, but focusing heavily on higher quality buildings that are ESG compliant… they’re looking at better locations. So again, get your hybrid policy right,” Bajaj said.

Also, technology plays a vital role in enabling hybrid work, enhancing user experience, and engaging employees.

Colliers suggested that occupiers leverage available technology to create a comfortable and efficient work environment, both in-office and remotely.

On attracting and retaining talent, Bajaj said they found that ESG and D&I are increasingly critical factors.

“Companies that are attracting talent in today’s talent shortage are the ones that are heavily focused on engaging with the workforce, and walking the talk on ESG and D&I,” he stressed.

What’s important is for companies to incorporate ESG considerations from the outset of the decision-making process when building new office spaces.

By proactively integrating ESG into location and portfolio strategies, companies demonstrate their commitment to sustainability and social responsibility, positively impacting employee perception and attracting top talent.

Bajaj also told Hong Kong Business that the role of the office as a recruitment tool is to entice Hong Kong workers back to the office.

This can only be done by reimagining the workplace to prioritise collaboration spaces and user experience, he said. With hybrid work likely to become the norm, the office should offer an environment conducive to effective teamwork and in-person collaboration.

The Colliers outlook also pointed out that Hong Kong’s future workforce desires flexibility in their work arrangements.

By offering a balanced approach, combining remote work with essential in-office collaboration, occupiers can create an appealing work environment that aligns with the evolving preferences of the workforce.

In the end, Bajaj said the path to overcoming the talent shortage lies in a holistic approach, encompassing thoughtful real estate strategies, technological integration, and a firm commitment to ESG and D&I initiatives.