Tony Dickel, MRI China Group CEO, says Hong Kong is the best place to set up regional headquarters

The global economy may be in a period of slowdown but the economic situation in Hong Kong is unlikely to reflect that, according to Tony Dickel, CEO of talent recruitment firm MRI China Group. He said that's because the global fallout from the US subprime mortgage crisis is being offset by Hong Kong's strong domestic economy.

"The fact is Hong Kong is in the centre of a very different world from an economic point of view. Clearly we've had very robust GDP growth over the past three years, and while it's forecast to slow down a bit this year, it's still reasonably strong relative to developed economies," Mr Dickel said. The cuts being seen in the banking sector in Europe and the US have not extended much into Asia, he said.

And contrary to the current economic trend, Mr Dickel foresees a long-term talent crisis in the region. "The centre of the talent war is in Asia. We're in a sort of long-term demographically driven talent crisis, particularly in this region." The key to retaining good talent is in strategic hiring, Mr Dickel said. "The business of retaining people in the company is a complex affair, which partly relates to training and very importantly, relates to hiring the right people in the first place."

Paying for talent

In today's job climate, he said employees now are being somewhat opportunistic and firms desperate for certain types of talent will be willing to pay. But Mr Dickel said it is a flawed approach to recruiting, which he sees a lot in the region. "Recruitment in this region is unmeasured, it's reactive. It's what I call distressed buying." The problem with that is that it ends up costing companies more without guaranteeing it would retain people, he said.

According to the talent recruitment firm's CEO, Hong Kong is well positioned for companies interested in setting up regional offices. "It's all going on up north. Everybody is looking for people with China-related experience. Hong Kong is part of China, and China is driving the region's economies to some extent and has the potential to do so for a considerable time." He said the city's superb infrastructure, its financial and accounting systems and its legal infrastructure make Hong Kong the best place to set up regional headquarters.

It's also relatively inexpensive these days to set up in Hong Kong compared to other cities in the region. Mr Dickel cites long-time rival Singapore, where the managed appreciation of the Singapore dollar has made it virtually as expensive to find premises and talent there.

Unbeatable China factor

But most of all, it is the China factor that puts Hong Kong ahead of its competitors. "We are now telling customers who come to us just asking the question: where should I be – should I be in Shanghai, Hong Kong, Kuala Lumpur or Singapore? Well, of course, my first question to them would be is what is your business? If your business involves China, then you've got to be here."

 Hong Kong's growing HR value during an Asian "talent crisis"

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