A survey conducted in Hong Kong reveals that workers are reluctant to give up hybrid work arrangements without a six per cent salary increase. More than half of the 350 respondents expressed their intention to seek a raise or explore job opportunities with flexible work arrangements if their employers insisted on a full five-day office schedule.
The survey highlighted that 27 per cent of respondents sought a salary increase, with a majority demanding a raise of six per cent or more if compelled to return to a full-time office schedule. Additionally, 24 per cent indicated a willingness to switch jobs to secure flexible work arrangements.
The survey was conducted by selecting 350 respondents based on specified criteria of age, geography and gender.
The survey suggests that this employee dilemma is likely to drive companies towards adopting hybrid working models, leading to a reduction in office space. Additionally, the survey also revealed a subsequent decrease in office rents, estimated to be around six per cent in 2024.
Furthermore, the survey anticipates a shift in corporate real estate dynamics as companies strive to attract talent by offering flexible work options, while simultaneously optimising office space. This trend could result in a six per cent decline in office rents, following a similar annual drop observed over the past three years. The city currently faces a significant challenge with a record 16.4 per cent of vacant office space reported at the end of the previous year, according to CBRE Group.
Adding to the complexity, the office sector in Hong Kong is experiencing limited interest from mainland companies, which significantly impacted the previous surge in rental prices. Data from CBRE reveals that these mainland firms accounted for only 11 per cent of new leases in 2023, a notable decrease from the 18 per cent recorded in 2021.
