Clement Chan Kam-wing, chairman of the Hong Kong Association of Registered Public Interest Entity Auditors, announces the findings of a survey on the shortage of accounting professionals in Hong Kong on July 19, 2023. (LI XIAOYUN / CHINA DAILY)

Hong Kong should offer more attractive remuneration packages and consider importing auditors from overseas to deal with the severe shortage of accounting professionals in the city, an industry body said on Wednesday.

A survey by the Hong Kong Association of Registered Public Interest Entity Auditors (PIEAA) showed that more than 30 percent of accounting firms were grappling with a 20 percent shortage of manpower, and 63 percent of them are actively recruiting.

The industry body suggests that more policies in favor of female workers should be rolled out by employers to cope with the demographic change 

The findings of the survey, conducted between October 2022 and February 2023 and released on Wednesday, was based on the responses of 313 accounting practitioners and students. 

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The industry is mainly short of young practitioners with three to five years’ work experience, who place work-life balance as top priority among their job expectations.

According to the survey, 61 percent of the surveyed accounting students deemed work-life balance as very important, followed by career development and reasonable work hours, both at 58 percent. 

Pay and bonuses came the fourth, with 52 percent. Other factors the younger generation value include staff and health benefits, support from superiors and flexible work schedule.

“The shortage of professional accountants in Hong Kong poses a significant challenge for both the industry, the audit profession and the overall economic landscape,” said Clement Chan Kam-wing, chairman of the PIEAA.

“It is time for accounting firms to review their remuneration package, for example giving young practitioners a realistic expectation of accounting work, flexible employment models such as part time or project-based employment contract.”

Attracting overseas auditors should also be considered as an option to deal with the situation, he added.

The survey also shows that more women are working in the profession than men. The industry body suggests that more policies in favor of female workers should be rolled out by employers to cope with the demographic change, including flexible working hours and remote working arrangements.

Hong Kong has been struggling to ease a labor crunch as its working population declined by the largest number last year since 1985 due to the reduction in the birth rate and emigration. The city lost 94,000 employees in 2022 compared to a year earlier, according to official statistics. 

Construction and transport, the two sectors that are among the sectors with the most serious manpower shortage, started accepting applications from non-local workers under the labor importation schemes on Monday, with the government planning to import 20,000 workers.

While up to 12,000 workers will be imported to work in Hong Kong’s construction sector, the quota limit for transport will be 8,000, including 6,300 employees in aviation and 1,700 public light bus and coach drivers. The workers who get approval will arrive in the city in October at the earliest.

Chief Executive John Lee Ka-chiu stressed that the government attaches great importance to the rights and interests of local workers, and it will ensure that local employment is given priority in the process.

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The Labour Department will vet applications relating to imported workers rigorously, he said.

In another move to deal with the labor shortage, the SAR government has introduced an array of schemes to woo talents to the city. The Immigration Department as of June has approved over 60,000 applications under the talent schemes, which is “better than expected,” Lee said. The financial hub had earlier set the target at 35,000 people a year. 

Chan suggested that the government conduct more extensive background research and help the accounting industry deal with the shortage of middle and lower-level personnel, as the Top Talent Pass Scheme mainly targets high-end professionals.

Contact the writer at irisli@chinadailyhk.com