Impacts of the statutory minimum wages on property management companies in Hong Kong

Abstract

Statutory Minimum Wages was effective in Hong Kong on 1 May 2011. It is not a newly invented concept and actually many European and Asian countries have adopted the minimum wages policy for long. Since the implementation of the minimum wages, it has been a controversial topic in our Hong Kong society. Being the one works in the property management field, this dissertation aims to examine the implementation of the Statutory Minimum Wages among the property management companies in Hong Kong and to critically review and evaluate the costs and benefits of this policy on the property management companies. Many scholars and economists have taken efforts to study the impacts of implementing the Statutory Minimum Wages. By reviewing those studies it helps to understand the possible costs and benefits that the minimum wages policy could bring. However, most of the studies are focused on the impacts of the minimum wages policy to the personal or society, very rare that they would have studied on the impacts of the minimum wages on a specific industry. There are also no scholars and economists did a research on the impacts of the Statutory Minimum Wages on the property management industry. To understand the impacts of the Statutory Minimum Wages on property management companies in Hong Kong, both primary and secondary data research has been conducted in order to find out the answer. For the secondary data research, data are collected via various channels including government’s report, Census and Statistics Department, journals, books and newspapers etc. For the primary data research, both qualitative and quantitative method has been used. The quantitative questionnaire interview aims to interview the people working in the property management companies and see how the implementation of the minimum wages could have impact on them. There is also a qualitative face to face interview to the property managers so as to understand the impacts of the minimum wages policy to the property management companies. By gathering the information and analysis the data, this paper suggests that at the current stage the implementation of the Statutory Minimum Wages could bring more benefits than costs to the property management companies in Hong Kong. The overall living standard and living quality of the people working in the property management companies has been improved. Although the minimum wages would increase the company operation cost, it is suggested that the benefits generated could cover the cost increment in long run and it is worthy to continue the enactment of the minimum wages policy. Nevertheless, there is the recommendation that the future review of the minimum wages level should not be too aggressive. Prior any adjustment taken there should have a detail study on the market situation and the company affordability. Great changes at a time would be out of the affordability of the property management companies, which in turn would lead to the negative effect of close down of companies and trigger the layoff of employees. The policy should be review and adjust bit by bit so as to favor for the long term development of the property management companies in Hong Kong.