The rapidly transforming business landscape in the Real Estate and Property Management Industry means that there are several human resource management challenges that will continue to evolve in the future. Human resource management is an essential driver to the success of the real estate sector and the property management industry. Human-related factors and human resources management practices will affect the bottom-line of real estate and property management companies.
Apart from the hustle and bustle of selling and managing properties, HR professionals in this field face various HR challenges that demand compliance with labor regulations and ethical practices, from labor retention and tenant turnover to collecting rent and managing employees. A successful HR team can undoubtedly bring a lot of benefits to your real estate business.
Changes in MPF Management
i. Abolition of MPF Offsetting Arrangement
The Legislative Council passed the Employment and Retirement Schemes Legislation (Offsetting Arrangement) (Amendment) Bill 2022 on 9 June 2022 to abolish the use of the accrued benefits of employers’ mandatory contributions under the Mandatory Provident Fund (MPF) System to offset severance payment (SP) and long service payment (LSP) (MPD offsetting arrangement). The Government has announced that the abolition of MPF offsetting arrangement will take effect on 1 May 2025.
Key points of the abolition of MPF offsetting arrangement:
- Starting from the implementation date of the abolition (i.e. the transition date), employers can no longer use the accrued benefits derived from their mandatory MPF contributions to offset an employee’s SP/LSP.
- Accrued benefits derived from employers’ voluntary MPF contributions as well as gratuities based on length of service can continue to be used to offset SP/LSP.
- To reduce the risk of large-scale dismissals before the transition date, the “grandfathering” arrangement will be put in place for the pre-transition portion of SP/LSP of employees who are already in employment before the transition date.
ii. eMPF Platform
To streamline, standardize and automate the existing MPF scheme administration processes, the Government and the Mandatory Provident Fund Schemes Authority (MPFA) are pressing ahead to develop the eMPF Platform. The eMPF Platform will serve as a one-stop electronic platform for employers, employees and scheme members to manage their MPF accounts across different MPF schemes anytime and anywhere, as well as to reduce paper work and human errors.
The eMPF Platform is the most significant reform of the MPF System since its establishment. Through adoption of the platform, it could drive greater operational efficiency, create room for fee reduction and enhance user experience.
The migration of MPF account information to the Platform is expected to commence in the second quarter of 2023, and the MPFA aims to complete the onboarding of all MPF schemes within 2025 and make the Platform fully functional in the same year.
Ensuring Compliance through Workflow Automation
The establishment of the eMPF Platform and the latest reforms of the Hong Kong employment law such as the 418 rule will lead to various changes in HR processes, and it can bring challenges to HR professionals. To ensure compliance, companies can leverage enterprise management systems such as Human Resources Management System and Financial Management Systems to automate and streamline their business processes. These systems can eliminate manual tasks to reduce human error and enhance operational efficiency.
2. Digital Transformation and Adoption of Artificial Intelligence
The trend of digital innovation and technological development have been shaping the future of the business world. Much evidence shows that enterprises that have successfully integrated AI into their operations and decision-making processes are achieving real benefits, leading to a snowball effect of adopting AI.
AI can perform and complete property management/ lease management tasks that previously required manual effort; it can also automate communications between property management companies, landlords and tenants, tasks like billing/ statements, maintenance scheduling, lease contract renewal and alerts, compliance and risk management, and even matching of tenants and properties. Moreover, with AI’s ability to swiftly process large amounts of data with accuracy, property managers can gain insights into their portfolio with ease, helping them make faster and informed decisions.
3. Future Workplace and GenZs
The future of the workplace will be employee-centric and technology-driven. The world is changing rapidly, leaders will continue to face challenges, such as talent and skills shortages, changing talent expectations, fierce competition for talent, high employee turnover rates, and so on. Compared to a traditional workplace, a modern workplace is more likely to evolve constantly to meet the changing needs of all of its stakeholders including employees, investors and the wider communities. It also requires employers to shift their focus to employee satisfaction and employee well-being.
Regardless of industry and company size, embracing technology like Generative-AI and business software solutions can lay a foundation for long-term success. Technology can be leveraged in diverse ways to optimize HR processes, including recruitment, onboarding and training, employee satisfaction and retention. For Example, ERP software gathers, analyzes HR data to help HR managers make faster and more informed decisions that will boost employee satisfaction and productivity.
Technology enables clearer communication across an organization anytime and anywhere, which helps your employees – including those working remotely – become more engaged. HR solutions sometimes come with a self-service portal which allows employees to take control of their own employment information like pay history and leave applications, giving them more autonomy and empowering work culture. All of these benefits can lead to a higher level of employee satisfaction and lower employee turnover rate.
