A persistent gender pay gap in Hong Kong shows that the Special Administrative Region still has plenty of heavy lifting to do if it wants to build a financial sector that truly makes the most of all its talent.
‘Having a gender diverse and equitable workplace can bring numerous business benefits that go beyond social good,’ says Ivy Cheung, senior partner in Hong Kong SAR and vice chairman of KPMG China.
‘To improve transparency around gender equity, we can enhance ESG reporting disclosure requirements’
Women in management roles still earn HK$9,800 less per month than men in similar positions, according to Census and Statistics Department figures for 2022 (the most recent available). Hong Kong’s gender pay gap is at 19.6% for managerial positions (up from 15.8% in 2021) – higher than that of Singapore, the UK, the US and Australia.
Meanwhile, in mainland China, the 2024 China Women’s Workplace Status Survey Report found that women earned CNY 1,331 less than men on average in 2024.
Corporate representation
The ‘leaky pipeline’ phenomenon can happen as women often drop out mid-career due to family responsibilities or lack of advancement opportunities. Just 52% of women in Hong Kong participate in the workforce, falling short of the East Asia and Pacific average of 58%. And the pay gap between men and women grows wider with rank and age, peaking at 28% for people aged 45 to 54.
‘The fact that a higher proportion of male employees [are] working as managers, professionals, and associate professionals with higher monthly salaries demonstrated [a] persistent trend of unequal job opportunities,’ the Hong Kong Labour Rights Monitors says in its 2023 report.
‘We can encourage companies to carry out regular benchmarking studies’
MSCI data shows that firms are making headway with female corporate representation. By October 2023, women filled 19% of board seats in Hong Kong-listed companies , up from 16% the year before, although mainland Chinese companies lag behind at 15.7%. The financial sector is showing progress: across the MSCI ACWI Index, the percentage of female CFOs climbed from 16.9% in 2022 to 18.8% in 2023.
Benchmarking
‘To improve transparency around gender equity, especially on pay gaps, we can enhance ESG [environmental, social and governance] reporting disclosure requirements by including metrics such as those recommended in the Global Reporting Initiative (GRI) Standards,’ says Cheung.
The Global Reporting Initiative GRI Standards 405 on diversity and equal opportunity, in particular, sets out reporting requirements for organisations to disclose the ratio of women’s to men’s remuneration across each employee category and significant operational locations.
‘Companies should establish measurable targets for gender diversity in leadership’
‘To ensure there will be improvements over time, we can encourage companies to carry out regular benchmarking studies as part of their existing HR or gender diversity policy, disclose gaps and outline how these gaps will be addressed,’ explains Cheung.
Regulators are stepping in to bridge these gaps. The HKEX updated its Corporate Governance Code in December 2024, now mandating listed companies to have both gender-diverse nomination committees and policies promoting board diversity.
But many experts say that these rules, while helpful, aren’t enough on their own to fix the deep-rooted problem of unequal pay. When women return to the workplace after a hiatus, they may have to take jobs below their pre-break level and settle for less pay.
Major financial firms are taking action to fix this, launching returnship programmes designed to support women to get back into their careers after taking time off for family responsibilities.
Measurable targets
Shai Ganu, managing director and global practice leader of executive compensation and board advisory at Willis Towers Watson, emphasises the need for systemic intervention. ‘Companies should establish measurable targets for gender diversity in leadership and track progress over time,’ he says. ‘Structured mentorship, sponsorship programmes and leadership training can equip women with the skills and networks needed to move into senior roles.’
Professional firms also play a role in driving impact. ‘Professional audit and consulting firms like us can play a significant role in promoting gender diversity and equality both internally and through our work with clients,’ Cheung notes.
‘Conducting research and providing benchmarking data on gender diversity practices across industries can help companies understand their position relative to peers and identify areas for improvement.’
More information
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