Introduction In Hong Kong this small place have few famous big company but much more is small medium enterprise .Around 320,000 small medium enterprise in Hong Kong .After 1980 year ,our factour moved to mainland china . Hong Kong change to development the third industry e.g. Service industry, Financial industry and Tourism to our major development industry .So that the Human resource is much more importance than before. Those industry need a lot of management personnel and scientific and technological personnel but how is the labor market ? It is can provide enough employee for those company ? Hong Kong have many Small medium enterprises .They do not have many resources to take job applications . The human resource challenges is more difficult . What challenges we are face today ? What can Hong Kong HR do? Not just SMEs face those problem also the big frim . They may have the same human resource challenges .The main Human Resource challenges facing organisations in Hong Kong. 1.Talent shortage and challenges in recruitment Nowadays hong kong overall talent status is general shortage e.g. management personnel and scientific and technological personnel is shortage .Date from HKIHRM Daily News said survey shows IT talent in demand in HK 18/05/2016 ,IT professionals in high demand for next 4 years in 08/12/2015 ,IT start to face difficulty in attracting young people in 09/07/2015. Have many job vacancy in the job market but the job always vacancy no many job seeker can satisfy the company need .Not just the IT industry also the others industry. In manpowerGroup talent shortage survey 2014 best 1 industry is Skilled Trade Workers second one is Engineers third is Technicians and follow is sales representatives ,accounting and finance staff,management or the executives ,sales managers , it staff , office support staff and divers . Therefore the Small and medium enterprises No right talent to choose .But Hong Kong is too much SMEs .That is why the talent shortage in Hong Kong is quite serious. Also the recruitment .Regardless of such aspects as compensation and benefits, job stability, work intensity and resources, Small medium enterprises are at a disadvantage , a small number of talents want to go the large enterprises work more than SMEs. Because of the package benefits.The talent will consider few thing to confirm should they suitable for this job . Nowadays have too much channels can recruitment ,but the advertising is expensive . In the SMEs way they can not handle a lot advertising expenditure . Moreover some company they even do not have the human resource department . Recruitment sometimes by the firm owner or the owner family members . The employer not really know what kind of people is suitable for the job how to select the job seeker . This will lose the company money and time .2.Reasons of loss employees/ Loyal employees Hong Kong Small and medium enterprises generally do not establish a systematic and standardized management system and processes, the staff will confuse what should they do . Business is more dependent on individual talent, rather than the system make the staff more pressure , Due to cost considerations and talent shortage reality, Small medium enterprises each department no more manpower staff workload is lager they will want to leave find the other easy job . If someone leave ,running the business is a big risk ,What is more serious is that newly arrived managers usually bring their own set of management ideas and management methods,the staff may not adapt so they leave .HKIHRM Daily News in 01/06/2015 interviewed 234 chief executives and HR directors in consumer goods ,retail,apparel,hospitality and media sectors in asian countries on job changing 28% planned to leave their current job within two years if a better opportunity arises . And also Against the backdrop of a strong job market,people easy find the new job.the staff not be afraid lose the job because they can find the other one replace . However, due to non-standard management is not continuous, one set of ideas, resulting in good management experience and system can not be continued and precipitation. And elderly workforce is rise the firm may face the retirement peak period . 3.Manage workforce of few across generations Not just Hong Kong in the world those year after the second world war Due baby-boom recent year is retirement peak period .the ageing population show the world elderly workforce is rise .The growth of the new generation entering the labor force those years , the diversified staff structure is one of the most serious challenges they face this year. Employees of all ages, from baby-boomer generation to Generation 1980-2000, have different ways of communicating,in the different background grow up, they use different technical means and they differ significantly from what their colleagues and managers expect. The soon retirer how to connect the skills and knowledge to the young blood . We always listen the elderly talk the younger generation behaviour is unacceptable .They feel the younger is not actively seeking help when facing difficulties ,lack of time management skills ,ignoring or resenting supervisors instructions ,lacking passion for the job .So that we can see the manage workforce of few across generations problem is quite serious ,the generational problems is not easy to solve. Two of these challenges and the Human Resource practices and strategies that organisations could or are following to overcome and tackle them.1.Reasons of loss employees/ Loyal employees The most common loss of both the most common company employees the following issues: work pressure,No prospects, no complete promotion and training mechanism,The internal personnel relations are not coordinated. Solution: Efforts should be made to enable workers to release workers on time, by any means (for example, increase manpower and distribute work equally) Allow staff time to entertain or go home with their family members to relieve pressure on the workforce; if possible, work for five days or Saturday week length, to provide a d-related courses both to excellent staff, or to apply for and industry-related courses both staff funded,Enhance the transparency of the company itself by promoting both the mechanism, indicating the promotion of both standards and assessment methods, so that employees understand their own work objectives and direction. Need to supervise the coordination of various departments, the system must reward and punishment is clear and consistent, not due to the preferences of people or executives vary. Heads of departments should refrain from holding comparisons in front of the public, or if they call out employees or denounce their employees in front of them, and should be given basic respect.Employees who cause trouble or engage in divorce at work must be severely punished.Regular interview with employees to understand the needs and difficulties of employees.As soon as possible to solve the problems encountered by staff. Such as after the observation, the staff raised the problem really exists, should be resolved as soon as possible to increase staff’s trust in the company, but also the performance of the company’s attention to employees. 2.Talent shortage and challenges in recruitment Establish a good mechanism for personnel training, increase investment in education. This is the most effective way to solve the problem of talent, especially long-term development.To create a superior working environment,attract the talent to job E.g. Google provide the good office to the staff , the introduction of personnel policies to attract mature talent Some company will do the interview in some profession school .Do the recruitment day in those school .Use the airline company for example Hong Kong have few airline service school .Some base in Hong Kong airline company like Cathay Pacific airline ,Hong Kong airline and others airlines is recruitment flight attendant in those school .This way can direct find the suitable talent. The other jobs also can find the employee in the school , skilled trade worker,engineers can find in Vtc .Accounting and finance staff ,it staff have the college .The company just need to contact the school no need to expenditure in the advertising save the expenses ,for the small medium enterprise is the good way to find the talent .Or through the headhunting company, heavily rewarded, multi-channel hunting talent. Also re-education of grass-roots staff to enhance their practical ability to exercise, and their comprehensive ability so that they get more opportunities to learn and practice and this act can let the employee loyal the company .Use a variety of social relations, build talent, tap talent, find talent.Conclusion In the end of this project Hong Kong Human Resource .Common arrangements in Hong Kong’s human resources market include hiring staff on short-term contracts, hedging severance payment and employee MPF, are “operational flexibility” for enterprises. For those laborers with relatively low bargaining power, they “encroach on” theirEquity in return for the employer’s profit.Admittedly, this advantage indeed attracts more enterprises to invest in Hong Kong and brings various opportunities to the labor market. Many people also .They think that the current flexible employment system is very effective and is a successful way to maintain the existing competitive advantages. However, this approach absolutely Not good policy, global integration has increased the geographical mobility of talent, under such a single system, it is difficult for Hong Kong to retainAt present, the quality of manpower resources is high, so long as we strive to win overseas talents with other countries in order to enhance Hong Kong’s long-term competitiveness.Apart from improving labor rights so as to retain and attract more talented people, we can create more by education and vocational training It is also an important part of enhancing the long-term competitiveness of Hong Kong. Both Switzerland and Singapore attach great importance to education. Their education system is characterized by academic and vocational education in parallelWe hope that the state can nurture academic talents as well as professional and technical personnel to meet the needs of diverse talents in social developmentwant. In addition to government resources, the perception of society over vocational education is also crucial – schools and schools in Switzerland and SingaporeStudents and parents are more receptive to vocational education, and vocational education that recognizes practical training is also the direction of students’ development.On the contrary, education in Hong Kong has always placed emphasis on academic education. Entry into universities is the ultimate goal. Vocational training is only “Election. “In 2000, the government introduced the associate degree system to enhance the enrollment rate of tertiary education so that less successful students could chooseThe more expensive self-financing associate degree program will be further introduced to universities. As a result, vocational education is further dwarfed, even if acceptedAfter vocational training, I can become a professional and immediately join the community, “True Silver”, but the image of secondary education is still hard to find eliminate. Moreover, the low percentage of associate degree programs to enter the university and the fact that the curriculum system is designed to increase the chances of entering university .In the end, the education system in Hong Kong has a number of “unmatched development needs” and “lack of adequate professional training”New workforce blood.In order to establish a competitive labor market, we should make a pluralistic approach. Apart from improving labor rights and attracting a quality workforce In addition, it is also an important part of bringing better blood through education. Human resources development must cater to the needs of economic transformation and industrial development. 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