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More Hong Kong companies are considering hiring hands and increasing basic salaries for their employees, said Hudson Global Resources yesterday.

According to findings of a Hudson report, 37.1 per cent of all 500 Hong Kong companies surveyed are looking into increasing staffing levels over the next three months, a substantial rise from only 23.6 per cent just six months ago.

A total of 33.5 per cent of the companies surveyed said they are planning to increase basic salaries in 2004 and virtually none of them, or 0.4 per cent, intend to decrease staff pay.

The international human resources firm yesterday revealed its quarterly report, which surveyed 2,000 companies from multinational organizations of all sizes in all major industry sectors in Asia.

The outlook from companies is the most positive in 11 quarters, said Gary Lazzarotto, chief executive officer Asia of Hudson Global Resources.

"This renewed positive spirit that began last quarter shows that companies and the public are confident that the economy is turning around and we expect to see continued growth through the next quarter as well."

More Hong Kong companies, 62.7 per cent, now expect good to excellent results in the first half of 2004, compared to 57.2 per cent last quarter, the report said.

He said many companies have now got their organizations in shape, meaning less restructuring or cutting staff.

"We are actually moving away from the word 'recovering', and to the word 'rebound'," he said.

According to the report, the accounting, financial services and consulting sector is the most aggressive in its recruitment needs going forward, with 41.5 per cent of surveyed companies planning to increase headcount levels in the first quarter of 2004.

Frontline sales roles continue to be important as Hong Kong companies are maintaining their focus on revenue generation and new business development, the report said.

Of all companies planning hiring in the next quarter, 39.1 per cent of them will recruit sales people and 10.4 per cent will increase headcount in the marketing or PR (public relations) disciplines.

People who have been unemployed for more than a year should not be giving up, Lazzarotto said.

A combined 79.3 per cent of all employers surveyed said either they would be willing to employ such a candidate or would consider it, the report said.

Lazzarotto said respondents who answered "depends" were mostly concerned about how the candidates had spent their time during that year, with studying being the most acceptable response.

"Those people must maintain the knowledge in their industries and become up-to-date within their industries," he suggested.

As for the mainland trend, 51.7 per cent of companies there look into increasing permanent headcount, once again leading Asia's employment trends.

The most aggressive recruiters on the mainland are IT & telecommunications companies, with 66.7 per cent planning to increase staff, followed by engineering, operations and scientific sector at 56.4 per cent looking to hire.

Lazzarotto said more than 40 per cent of the mainland companies surveyed said they would increase basic salaries in 2004.

He said when the economy is growing quickly, competition for good staff is becoming strong.

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