Unleashing Hong Kong's Potential: Three Levers for Workforce Productivity

Hong Kong has an opportunity to unleash productivity and foster prosperity, by harnessing the power of five generations in the workforce, pivoting to a skills-based approach to talent, and truly embracing the power of agentic AI.

Woman holding laptop looking into the distance.

Hong Kong has a productivity imperative, and if business leaders don't adapt their strategies now, it will affect global competitiveness.

Businesses are facing some truly unique challenges, starting with an aging workforce. Over 20% of Hong Kong's population is 65 or older – and that is projected to double in the next two decades. The composition of the workforce is changing, because people are working longer and new generations are coming onto the scene.

74% of Hong Kong employers are already grappling with talent shortages.

This massive demographic shift isn't just about age. It signals a big change in the skillsets and expectations people have about work, demanding a whole new approach to how we think about productivity.

To add to these issues, 74% of Hong Kong employers are already grappling with talent shortages. With people continuing to move offshore, simply hiring more people isn't a viable solution. And we can't overlook the wellbeing factor: 80% of Hong Kong workers say they want to disengage from work to manage stress. 

These aren't just dry statistics. They represent tangible challenges for businesses, for the wider economy, and most importantly, for people.

But Hong Kong has an incredible opportunity to flip these challenges into a massive advantage. Organizations can unleash true productivity and foster real prosperity by activating three key levers:

  1. Harnessing the power of what will soon be five generations in the workforce
  2. Pivoting to a skills-based approach for how talent is managed
  3. And truly embracing the power of agentic AI

The Five-Gen Effect: A Rich Tapestry of Talent

For the first time, five generations are about to be working side-by-side: Baby Boomers, Gen X, Gen Y/Millennials, Gen Z, and soon Gen Alpha will join us at work, with the eldest born in 2010. This convergence of diverse experiences and perspectives is unprecedented, and it’s a massive asset.

Each generation brings its own unique strengths, work styles and expectations, creating a vibrant, dynamic, and rich tapestry of talent in the workforce. Savvy business leaders can leverage these differences to help close skills gaps and tackle talent shortages.

Baby Boomers and Gen X bring deep institutional knowledge, invaluable experience, and a strong sense of loyalty. They’ve navigated some huge economic and technological shifts, offering stability and a wealth of practical wisdom.

Then there’s Gen Y/Millennials. They’ve grown up with technology and are purpose-driven, thrive in collaborative environments, and hungry for development and feedback. They’re key to bridging traditional approaches with the ongoing digital transformation all organizations are going through.

For Baby Boomers, the fixed-line phone and colour TV were baseline technology; for Gen Alpha, it’s agentic AI.

Gen Z are digital natives through and through, arriving in the workforce with an inherent expectation for flexibility and work-life balance, and a clear preference for tech-driven, personalized environments. They prioritise Diversity, Equity, and Inclusion (DEI), and seek meaning that goes well beyond just a paycheck.

This generation demands continuous upskilling and lifelong learning, valuing transparent communication and collaborative, inclusive leadership styles that actively bridge generational gaps, ensuring everyone feels heard and valued.

Looking ahead, Gen Alpha will push technology expectations to unprecedented levels – they’ll demand easy-to-use, seamless experiences that mirror the intuitive apps on their phones.

Think about the huge gap in baseline tech understanding across the five generations: for Baby Boomers, the fixed-line phone and colour TV were baseline technology; for Gen Alpha, it’s agentic AI.

This stark contrast presents a huge opportunity that businesses can leverage by implementing initiatives like skill-sharing programs and reverse mentoring. These programs can effectively address emerging skills gaps and create invaluable opportunities for all generations to collaborate in harmony, learning from each other's unique strengths and digital fluency.

But business leaders need to act now to prepare for the arrival of Alpha, because it will signify major change that most organizations simply aren't ready for.

The multigenerational workforce is a goldmine of diverse experiences and skills. 

The objective of 'the five-gen effect' is to cultivate an environment where everyone feels valued, can contribute their best, and continues to grow. It’s not just about managing different generations in isolation; it’s about truly understanding their individual contributions and orchestrating a symphony of talent that harmonizes their strengths, drives innovation, and fosters a truly inclusive culture.

Embracing this generational blend isn't just a nice-to-have; it's a strategic imperative for Hong Kong's future productivity.

The focus needs to shift to what people can do and what they can learn next, rather than on past accomplishments.

The Skills Pivot: Capability Over Experience

Businesses must move away from a model where time in the workforce plus level of education are the key measures of capability. The future workforce demands a skills-based approach. Why? Because skills are dynamic. They can be learned, developed, and applied in new contexts, and they aren’t tied to a person’s age or the number of certificates hanging on their wall.

The focus needs to shift to what people can do and what they can learn next, rather than on past accomplishments. This skills-based approach fosters a broader talent pool and a more agile workforce – and critically, it means leaders can do a lot more with the people already in their business.

The global reality is that 54% of leaders lack clear visibility into the skills within their workforce. That’s a significant blind spot.

Hong Kong is experiencing a proactive shift: 91% of leaders agree that a skills-based approach enhances productivity, innovation, and agility1. And the evidence shows that 77% of Hong Kong organizations are already transitioning to a skills-based talent strategy1.

This approach expands the available talent pool, encourages continuous learning, and builds a workforce ready to adapt to whatever comes next.

Embracing Agentic AI: Amplifying Human Potential

Agentic AI will empower people in organizations and provide a critical tool to genuinely drive productivity. AI agents will work collaboratively with employees, serving as much more than just intelligent assistants.

Agentic AI will empower people to be more human in their roles, by leveraging their unique skills and creativity.

This digital workforce will handle repetitive, routine tasks right across a role or function, which will free up teams to concentrate on higher-value, more creative, and inherently human-centric work.

This represents far more than just a technological leap. It's a fundamental shift in how we approach productivity and unlock human potential.

Agentic AI will empower people to be more human in their roles, by leveraging their unique skills and creativity, and encouraging collaboration with colleagues on critical, strategic, and genuinely rewarding work – all while AI manages the heavy lifting of mundane tasks.

Ultimately, it comes down to reimagining how work is conducted, how leadership is exercised, and how growth is truly achieved in Hong Kong.

By embracing these three levers – understanding and maximizing the talent that exists within the multi-generational workforce, making the crucial pivot to a skills-based approach to managing talent, and embracing the strategic advantage of Agentic AI – organizations can not only address today’s challenges but also build a truly resilient, agile, and thriving workforce for the future.

The future workforce will be more human, and the future of work in Hong Kong is incredibly promising.

When people thrive, organizations thrive. That’s why it’s crucial to cultivate a workplace where AI elevates human potential so your people can work at their best. Discover actionable recommendations in this Workday report.

1. Workday Research, 2024: Preparing for Alpha - Unleashing the Potential of a Multigenerational Workforce to Build Skills, Resilience and Boost Productivity

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