Hong Kong employees are generally dissatisfied with their pay and benefits, according to Mercer's latest What's Working survey.

Only 42 per cent of employees are satisfied with their base pay, which ranks as the most important element of value proposition. About half say they are paid fairly, and that their organisation has done an adequate job of matching pay to performance. Just 39 per cent rate their overall benefits package as good.

Kate Bravery, Mercer Hong Kong's human capital business leader, says the city's employees are especially alert to pay equity and personal progression. "Pay needs to be reviewed regularly, with flexible policies to enable off-cycle adjustments," she says. "Staff should be given up-to-date information on total rewards, including compensation."

Bravery says employers who can capture hearts and minds and map out a compelling future stay ahead of the game. "Knowing how to progress, feeling they have control over their careers and working for leaders they respect can make a tremendous difference to (employees') engagement levels," she says.

Meanwhile, 47 per cent of staff surveyed trust senior management to always communicate honestly and believe their actions are consistent with organisational values. "The quality of leadership is one of the strongest drivers of engagement outside of trust - even higher than pay," says Bravery. "Organisations must ensure a strong, healthy leadership pipeline, minimise the loss rate of leadership talent, and mitigate the risk of gaps in critical job succession."