A revamped appraisal system that denies salary increments to underperforming Hong Kong civil servants is unlikely to significantly improve efficiency, observers have said, calling for a more balanced approach with team-based performance indicators.
The revised system, set to be implemented in October, will penalise the bottom 10 per cent of performers – those rated D to F on a six-grade scale – by making them ineligible for a pay increment.
A 5 per cent buffer will be allowed depending on departmental circumstances, while professional grades and smaller departments may reduce the quota of penalised staff with justification.
“Is a single salary point enough of a real punitive measure? Is it sufficient as a proper performance management tool? Clearly, it is not,” said Alexa Chow Yee-ping, managing director of ACTS Consulting.
She explained that the bottom 10 per cent of performers could still receive their regular pay progression despite being denied a salary point increment.
Chow added that 37 per cent of civil servants had already reached the maximum point of their pay scale.
“For them, it feels like a slap on the wrist. If someone has already reached the top of their grade, this tool has very limited impact,” she said.
But Chow conceded that it would be difficult for the government to replicate the wide range of tools used in the private sector to improve employee performance, for example, a simpler dismissal process.
“The civil service [appraisal system] has been like this for years,” Chow said. “The government needs to improve it gradually. Regardless of the mechanism, the work attitude and commitment of civil servants need to be rectified, and this is the starting point.”
The government also released the tentative findings of the annual pay trend survey on Thursday, suggesting pay increases of 4.12 per cent for senior civil servants, 2.64 per cent for middle-ranking staff and 1.17 per cent for junior employees. The final adjustment will be decided by the key decision-making Executive Council.
Chow said the proposed rises for mid-level and junior staff were in line with the private sector, but the 4.12 per cent increase for senior officers was above the typical range.
She noted that the pay trend survey mainly covered companies in finance, banking and real estate, which performed well last year and awarded higher bonuses and salary increases to management.
When asked why this year’s proposed rises were lower than in 2024, which ranged from 4.01 to 5.47 per cent, Chow pointed to volatile market conditions during the survey period, which ran from April 2025 to last month.
She said multiple factors were at play, including headwinds such as the Middle East conflict and high global fuel prices, alongside positives such as a recovery in local consumption and the property market.
Emeritus Professor John Burns of the University of Hong Kong (HKU), who specialises in public administration and civil service management, said an appraisal mechanism focused on individuals failed to capture team-based performance, as civil servants typically worked in teams.
He advocated clearer key performance indicators and tracking employees’ performance during critical incidents, including responses to events such as the deadly Tai Po fire, to build fairness and trust.
He also suggested the government should consider offering “carrots” to top performers.
“It is all stick,” he said. “They are saying the bottom 10 per cent, what about at the top?”
The veteran scholar pointed to Singapore’s performance-based system, where civil servants’ bonuses are linked to the country’s gross domestic product growth. Underperformers may be denied contract renewal or dismissed if they fail to improve over a review period.
Yet Burns highlighted the political significance of the revamp.
“It indicates to the central government that [the Hong Kong government] ... is taking the call to reform the civil service. It is listening,” he said.
Chinese Premier Li Qiang called for enhanced governance efficiency in Hong Kong in his government work report delivered during this year’s “two sessions” political meetings in Beijing. -- SOUTH CHINA MORNING POST
