Hybrid to full time office: Hong Kong workers seek 6% hike. Here's why

Employees are adamant about maintaining hybrid work arrangements, with more than half expressing their wish to seek a 6% salary increase or consider changing jobs to preserve flexible work options, according to a survey conducted in Hong Kong. The study, encompassing 350 participants and conducted by Bloomberg Intelligence, indicates that companies adopting hybrid models to attract talent and simultaneously reduce office space might drive a potential 6% decline in office rents by 2024.

This trend followed a consistent annual drop in rents over the past three years, exacerbated by a substantial 16.4% vacancy rate in the city's office spaces at the close of the previous year, as reported by Inc. Compounding the issue, mainland companies, which historically contributed to rising rentals, accounted for only 11% of new leases in 2023, down from 18% in 2021.

In response to the potential demand for increased in office presence, 27% of respondents sought a salary raise, predominantly targeting a 6% or higher increment, while another 24% contemplated changing jobs to secure flexible work arrangements. The sample of 350 respondents, chosen based on criteria specified by Bloomberg Intelligence, was designed to represent a diverse cross section of age, geography, and gender.

What is the reason behind the demand? Hong Kong ranked as the fifth most expensive city in the world in 2023, highlighting the high cost of living for expatriates, as per a Mercer Cost of Living Survey 2023. Last year, transport authorities proposed raising the toll of two harbour tunnels by HK$10 (US$1.27) each, starting from August 2, 2023.

Additionally, the toll for the most expensive Western Harbour Tunnel was set to be reduced by HK$15 following the end of its franchise agreement, according to During the same period, the MTR Corp announced an overhaul of its controversial fare adjustment mechanism, with the increase for the year estimated at 2.45%, the report further added.

Amidst the pandemic, their focus shifted to the transformative impact of COVID 19 on work dynamics. Many executives perceived a silver lining, witnessing the rapid adoption of virtual work technologies and an unwillingness among employees to return to traditional setups, according to the article “How to Do Hybrid Right" by Harvard Business Review.

This presented a unique opportunity for a reset, embracing a hybrid model that could enhance purpose, productivity, agility, and flexibility in work lives. To successfully transition, leaders had to design hybrid arrangements considering individual human concerns, focusing on the axes of place and time.

Scenario before Pandemic Before the , a majority of individuals (56%) adhered to office work routines, with either four (21%) or five (35%) days a week spent in the office. However, when contemplating their future work preferences, a striking 92% expressed a desire to work from the office for three days a week or less.

This resounding preference signaled a notable shift in the expectations of the average worker, indicating dissatisfaction with a return to the pre COVID working norms. This shift in sentiment was recognized as a key driver behind the phenomenon termed The Great Resignation, as per a report by Advanced Workplace Associates (AWA).

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