HKIHRM Annual Report

Hong Kong Institute of
Human Resource Management

2015

ANNUAL REPORT

ADVANCING
PROFESSIONALISM
LEADING
DEVELOPMENT

OUR VISION

To be the leading professional human
resource management and advisory
institute for the Hong Kong SAR

OUR MISSION

To develop, maintain and enhance
professional human resource management
standards through our members and
partners

To increase the value and influence of the
human resource management profession

OUR Values

Care for our stakeholders
We care for their interests and value their
contributions with respect and integrity

Care for ethics
We uphold our ethical spirit and comply
with applicable laws and corporate
governance requirements

Care for performance
We value knowledge, competence,
innovation and creativity; we pursue
excellence in professionalism and strive
for quality service through standards and
commitment

Contents

02 President's Report 20
0 4 Executive Director's Report 23 Advocacy and Communication
06 Membership Services 26 China and International Connections
1 2 Learning and Development 30
1 8 Professional Recognition 32 Independent Auditor's Report

42 Appendix 1 HKIHRM Organisational Structure
2 Executive Council and Committees / Advisory Boards 2015/2016
3 Programmes Endorsed in 2015/2016 Academic Year
4 HKIHRM Representatives in External Committees

PRESIDENT's
REPORT

Established as a leading professional body for HR practitioners in Hong Kong,
the Institute has continued to make great efforts to address the professional
and development needs of over 5,000 members. Considering the Institute’s
laudable milestones achieved over the past year, I take pride in sharing
some key developments in this report and use this opportunity to extend my
heartfelt appreciation to members for their continued support in guiding us to
fulfil our mission and deliver values.

The two-day 35th HKIHRM Annual Conference and Exhibition achieved a
remarkable success with a record number of more than 2,200 delegates and
visitors from Hong Kong, Mainland and overseas. The Institute has continued
to play a pivotal role in providing platforms for sharing human resource
management best practices and strategies for our overseas and mainland
counterparts to raise the bar of the profession. We successfully hosted the 7th
Two-Shore Four-Place Employee Relation Forum in September 2015 where
human capital experts, academics, government officials, and policy strategists
in HRM from Mainland China, Hong Kong, Macau and Taiwan shared their
thoughts and insights on the latest trends, challenges and opportunities in
human capital development and labour markets in Greater China. We were
honoured to have Mr Eddie Ng Hak-kim, SBS, JP, Secretary for Education of
the HKSAR Government to officiate the event.

The establishment of the Qualifications Framework (QF) for the HR profession
continued to be one of our major work areas in 2015. The development
of “Specification of Competency Standards (SCS) for Human Resource
Management (HRM) Sector” has attained major milestones since the project
started in 2014. During the reporting period, Phase I Environmental Scanning
and Phase II Mapping out of HR Tasks and Functions were successfully
completed. We are now gearing up for Phase III development, which involves
the in-depth content development of each HR task resulting from the HR
Functional Matrix. We are grateful to have received enormous support from
members, the HR community, key stakeholders from different industry
and business sectors, professional bodies, government departments, and
particularly those HR professionals who helped map out and review the task
matrix of the HRM functional areas in the workshops.

The HR Excellence Awards programme 2015/16 was officially kicked off in 3
September 2015, with the aim to raise the professionalism and competence
of HR professionals and promote best practices and strategies in people
management. This programme has continued to provide a valuable platform
for organisations and individuals to demonstrate how their initiatives and
exemplary cases can contribute to business success.

In 2015, we added 87 new courses to our training portfolio, charting a new
record of 187 certificate programmes, seminars, consultant master classes,
global programmes and in-house training programmes tailored for HR
practitioners at different professional levels. We will continue to collaborate
with world leading professional associations and institutes such as the
UK-headquartered Chartered Institute of Personnel Development (CIPD)
and WorldatWork to offer professional courses and programmes to help
HR practitioners advance their HR knowledge and resourcefulness while
enhancing their business acumen and agility.

To exert our regional and international influence in the HR management
profession, the Institute as a member of the Asia Pacific Federation of
Human Resource Management (APFHRM) proactively participates in regional
activities and events such as the annual council meetings of APFHRM, and
forges partnerships and furthers collaboration with leading professional
bodies. We will continue to work closely with our regional and international
partners to create professional synergy.

To create value and exert the influence of the human resource management
profession at business and public policy levels, we have spared no effort to
raise members’ awareness and enhance their understanding of impactful
employment-related ordinances, including but not limited to paternity leave,
the Contracts (Rights of Third Parties) Ordinance, Section 33 of the Personal
Data (Privacy) Ordinance for Cross-border Data Transfer and Competition
Ordinance, through timely sharing channels such as seminars, information
sharing sessions, as well as print and digital communication platforms.

At the time of writing this report, Hong Kong was facing severe economic
challenges. Businesses of all sizes struggle to stay afloat and critically evaluate
their human capital and manpower strategies. The talent shortage and a
greying population, coupled with new employment-related legislation, will
continue to pose complications for our members and the HR profession. For
sure, the Institute will continue to make efforts to help members stay on top
of the trends and withstand challenges with HR knowledge and agility. In the
coming year, I look forward to working closely with the Executive Council and
various committees who devote their time and expertise in supporting the
work and services of the Institute.

David Li
President
HKIHRM

EXECUTIVE
DIRECTOR's

REPORT

In this day and age, leading a professional association is no different from
running a business or commercial entity if it aims for sustainable growth and
continuous development. HKHIRM, with a history of close on 40 years, has
journeyed through ingrained challenges over the past decade that left the
Institute no option but to reinvent itself as an organisation that keeps up with
the times and is driven by the needs and interests of its members.

In August 2011 when I was offered the opportunity and privilege to serve the
leading human resource management body in Hong Kong, it took little time to
realise several key challenges that would only expand and harm the Institute’s
sustainability if not addressed immediately. Those challenges, among others,
included a loss of contact with diverse groups of stakeholders including the
business community, various government departments and statutory bodies,
educational institutions offering HRM programmes, fellow professional
bodies and the small and medium enterprises. A downward trend of revenues
was the result of non-competitiveness in service offerings; and a stagnant
membership in terms of numbers and membership services.

To address the imminent challenges, new strategic focuses were identified
and with full support of the Executive Council, the following key directions
were implemented in the past several years to:
• diversify training programmes and membership activities
• adopt a proactive approach to member recruitment
• revamp and rebrand signature events such as the Annual Conference and

Pay Trend Seminar
• reconnect to the business community, senior government officials and HR

professionals through initiatives such as the HR Excellence Awards
• extend professional influence to other business and industry communities

by launch of government-funded projects to enhance Hong Kong SMEs’
HRM capability; and
• be commissioned as professional writer of the Specification of Competency
Standards for (SCS) HRM in Hong Kong.

I am forever indebted for the opportunity to serve the HR community 5
through leading HKIHRM, in particular, I am grateful for learning what people
management truly is.

It is leaders’ job to anticipate trends and changes that will affect an organisation’s
future, and sometimes, that requires taking a bigger vision. As leaders we must
ensure the team is aware that to keep doing the same things might not get us
to the future as we cannot be confident of our resilience in the face of radical
change. I constantly remind myself about the danger of complacency, which
is normally seen as commonplace in non-profit organisations. Leaders cannot
assume the strategies and practices that have made the organisation successful
to date will be enough to power future growth.

Leading the Institute as Executive Director to advance professionalism
and break new ground in development, I realise that the principle of talent
management is about being a supportive leader and making staff successful.
Putting the principle into action entails six essential steps:
• sharing with employees the vision of the organisation and showing them a

roadmap;
• building the right culture;
• setting clear objectives and performance targets;
• creating an innovative environment;
• recognising and rewarding results; and
• fostering a family-friendly workplace

After completion of the HRM SCS, I envision the next strategic focus
of HKIHRM will be on development of learning programmes, based on
acknowledging members’ current and future learning needs. The Institute
should also address needs beyond the HR community, through collaboration
with local and international partners, to jointly focus on human capital issues
of the larger community – now and in the future.

Kwan Kin Mei
Executive Director
HKIHRM

MEMBERSHIP
SERVICES

01/ President David Li (left)
and Honorary Treasurer Dave Li
preside at the HKIHRM's 22nd
Annual General Meeting.

22

02/ Membership department
mans a booth at the HKTDC
Education & Careers Expo to
promote the Institute's work and
services to visitors.

03/ Seminar on risk management
for corporate merger and
restructuring in China

04/ Shubhro Mitra, Regional

Chief Human Resources

Officer of AXA Asia, talks about

challenges and solutions to

01 talent management at Executive
Breakfast Roundtable jointly

organised by HKIHRM and law

firm Mayer Brown JSM.

Membership AXA
Shubhro Mitra
Efforts to uphold HR professional standards, diversify
events, recruit and retain members as well as raise the
Institute's profile continued to prosper in 2015. In the
reporting period, the Institute saw a steady growth in
membership numbers, with more than 5,500 individual
and corporate members recorded. The Institute's
efforts and contributions are not only recognised by
members, but also by the HR community and partners
in the business, academic, private and public sectors.

702

Member Events 03

The Institute continued to organise a diverse range of 04
activities for different categories of membership to
address their professional and development needs and
interests. These events included breakfast meetings,
student talks, the mentorship programme, roadshows,
some 30 purpose-built seminars and the Two-Shore
Four-Place Employee Relation Forum that took place on
23 September 2015. All these activities were intended to
share the best HR management practices with HKIHRM
members to further strengthen their competitive edge,
and for those HR practitioners with aspirations to
attain high standards in the HR industry. Most of the
events received positive feedback from members and
participants who benefited in terms of soft skills and
HRM knowledge from the expert speakers. Some of
the well-received seminars focused on employment-
related laws and regulations of the
Mainland including "Collective Wage
Negotiation & Contract Management in
China Enterprises" and "Risk Management
of China Individual Income Tax" while people
management seminars such as "Effective
Succession Management Planning", "Being a
HR Professional with Creative Problems Solving
Skills" and "Understanding Today's HR Roles from
Top Management Perspective" were well attended by
HR practitioners.

Membership Profile

Fellow Corporate Manager Officer

2% 11% 31% 13%

Professional Affiliate President / Clerical and Junior Staff
Director /
32% 8% 4%
Chief Executive
By Category Student // By Position Consultant

As at 31 March 2016 15% 17% 2%
2016 3 31
Associate Miscellaneous Lecturer / Academic
Researcher / Professor
32% 19%
//

1%

Student

13%

Mentorship Programme 05/ Connie Lam (centre),
mentor of HKIHRM and
Since 2012, the Institute's Mentorship Programme Director - Human Resources
has continued to provide a valuable platform where of CLP Power Hong Kong Ltd,
Associate Members can learn individually direct from addresses the mentees of the
our experienced Fellow Members. The Programme HKIHRM mentorship programme
also serves as a reciprocal learning experience on the topic of "Strategic
for the mentors to understand the concerns and Thinking on HR".
career aspirations of the younger generation of HR
practitioners. Throughout the 12-month programme, 06/ HKIHRM's mentors and
the mentees can build up their skills and professional mentees pose for a group photo
network under the guidance of their mentors. A at the Mentorship Closing
mentor's sharing session was organised in May Ceremony during the 22nd Annual
General Meeting in June.
05
22
featuring Ms Virginia Choi, Managing Consultant
& Countr y Manager of Tamty McGill Consultants 07/ Executive Director Kwan Kin
International Limited, who guided the mentees on Mei shares with HR management
ways of improving career planning. A further session in major students on the topic
December was hosted by Ms Connie Lam, Director - of "The Changing Role of HR
Human Resources of CLP Power Hong Kong Limited, Professionals".
who explained how to develop a broad and strategic
mindset drawing on daily life experience and applying it 06
in the workplace. In 2015, the programme successfully
paired up 15 mentors and mentees. Since 2012 when 07
the mentorship programme first started, 61 mentees
have been paired up with HKIHRM's mentor

Student Talks

While continuing to enhance our services
to existing members, the Institute has looked
further afield to reach out to students to promote
the HR profession through student talks at local
universities and academic institutes. Connecting
with the next generation is crucial for the Institute to
sustain its membership base and develop succession
of the HR profession. With that in mind, the Institute
arranged seven talks for close to a total of 600 HRM
major students from various local institutions and
universities including Hong Kong Institute of Vocational
Education, Hong Kong Community College of The
Hong Kong Polytechnic University, Community
College of Lingnan University, School of Continuing
and Professional Studies, The Chinese University
of Hong Kong and Hong Kong Baptist University

(Shek Mun Campus). The talks provided information 9
on the latest economic and job market situations,
the changing role of today's HR professionals, HKIHRM's survey reports on Hong Kong Pay Trend and Pay Level Survey
job hunting skills and HR career development and Manpower Statistics.
which the students found practical and useful.
Scan and read the membership
Professional Research services and benefits pages

As a leading HR professional body to promote
knowledge sharing and professional enhancement
in Hong Kong, the Institute provides members
with the latest intelligence and strong insights on
major topics and current issues on HR through a
series of regular surveys and ad-hoc studies.  Not
only do these research initiatives capture the most
updated information on trends and development in
the employment market, they further strengthen the
Institute's position as the foremost reliable source of
expert views and opinions.

In 2015, the Institute conducted tracking surveys on
pay trend and pay levels for different job categories
to facilitate members in monitoring movements
in the labour market and hiring sentiments among
employers. To profile Hong Kong's human capital
development, two studies on talent shortage and
retirement age were conducted to tap into valuable
insights of HR practitioners and other stakeholders
on these topics and their practices to cope with these
challenges.

During the current reporting year, a total of seven
research reports on the following HR topics were
published and the key findings of each report were
released to members and the media in press releases:
• Hong Kong Pay Trend and Pay Level Survey
• Survey on Manpower Statistics in Hong Kong
• Training & Development Needs Survey
• 2015 Topical Study on Talent Shortage in Hong Kong
• Quick Poll on Retirement Age in Hong Kong

HKIHRM publishes various publications such as Learning & Development
Programme Directory 2015 and 2015 HR Service Providers Directory to help HR

practitioners advance professionally.

2015 2015

Apart from the above, the Institute collaborated with 08/ Virginia Choi, HKIHRM's
the RBL Group and the Ross School of Business at Executive Council member, gives
the University of Michigan to launch the 2015 Human talk on the traits and capabilities
Resource Competency Study in Hong Kong. Being of HR professionals at the
the largest global study on HR competencies, this Classified Post Career Forum.
survey shed light on how HR professionals and HR
departments deliver value and contribute to business 08
performance of organisations. The study was
successfully concluded in the last quarter of 2015.

The Institute also partnered with the UK-based
HR professional organisation Chartered Institute
of Personnel Development to roll out a regional
study - Asia Human Capital Research in Hong Kong
in July. This study focused on how HR business
information and HR analytics are measured and used
by local businesses. Participation in the study was
encouraging with key players in a number of industries
taking part.

PublicationS and
e-Communication

The Institute's monthly official journal – Human
Resources, and the daily e-newsletter continued to
be major knowledge sharing platforms for members,
covering the latest local and global HR trends and
developments. Latest employment-related ordinances
including Paternity Leave, the Contracts (Rights of
Third Parties) Ordinance, Section 33 of the Personal
Data (Privacy) Ordinance for Cross-border Data
Transfer and Competition Ordinance were featured
in the journal to raise members' awareness as part
of the Institute's educational efforts. Mr Matthew
Cheung,GBS,JP, Secretary for Labour and Welfare
of the HKSAR Government was featured in the cover
story in the October issue of the journal where he
talked about the essential role of an HR practitioner
as a business partner of an organisation, challenges

The Institute's official journal: Human Resources, a useful HR information resource for members, is published
ten issues per year, available in print and digital versions.

09/ Dr York Chow, Chairperson of 11
Equal Opportunities Commission
at a seminar on 12 May, updating
HR practitioners with the latest
information on issues including
sexual harassment, bias and
racial profiling and transsexual
employees.

5 12

09 10/ The Institute invites a
representative from Poly Vision
for the HR profession and the future outlook for Hong to share on the topic "Eye Care
Kong's human capital development. In September in Workplace What You Should
2015, the Institute commissioned SCMP as the new Know".
publishing partner to enhance the contents and design
elements of the journal.

To reach out to a wider community, a monthly
e-newsletter continued to keep non-members and
business associates updated on the latest initiatives of
the Institute on a regular basis. Social media platforms
such as Facebook and LinkedIn were utilised as a
communication channel to allow members and non-
members to get instant updates on the Institute's
happenings. The number of followers on the Institute's
Facebook doubled over the year.

10

LEARNING
AND

DEVELOPMENT

01/ The 35th HKIHRM Annual
Conference and Exhibition
attracts nearly 2,200 delegates
and visitors from Hong Kong and
overseas.

35
2,200

Training Programmes 01

Whilst endorsing undergraduate and post- Scan and download for Learning
graduate level programmes offered by Hong Kong's & Development Programme
universities, the Institute also provides practical, Directory 2016
professional programmes for HR professionals in
Hong Kong to strengthen their field knowledge and 2016
help advance their profession.

Understanding the importance of learning and
development for HR professionals for career
advancement, the Institute designs a variety of

02 02/ HR practitioners attend a 13
seminar on Return On Investment
training programmes to cater for different learning and (ROI), in which the speaker Nigel
development needs of HR practitioners, in the form of Fox, former Vice President HR
certificate programmes, seminars, consultant master of DHL UK talks about how HR
classes, global programmes and in-house training professionals adopt strategies
programmes. In 2015, the Learning and Development and approaches to optimise a
Department evolved 87 new courses, resulting in company s business gains based
a total of 187 course and certificate programmes on data analytics.
available.  
DHL
The Institute's certificate programmes are designed Nigel
on the basis of the Body of Knowledge under the
HR Professional Standards Model developed in Fox
2011. As a major pillar in support of HR professional
development they embrace a broad spectrum 03/ HKIHRM co-organises with
of knowledge needed for HR management and law firm Bird & Bird a seminar
development functions. The programmes are offered titled "Structuring International
in seven categories, namely, Business Knowledge in Secondment".
HR, Employee Engagement, Sourcing and Staffing,
Employment Law, Financial Management, Learning 04/ Barry Ip (left) and Chester
and Development, and Reward Management. Tsang, Co-chairpersons of the
They are well recognised by HR professionals for Learning and Development
qualification attainment in their career path. Committee, disclose the findings
of the 2014 Annual Training and
In-house Training Development Needs Survey at a
seminar held in August.
The Institute also organised various in-house
training programmes for corporate members 8
in 2015, providing them with solutions to address 2014
their specific learning and development needs.
These programmes were tailored to help boost 03
employee performance and this particular training
model proved to be highly effective. 04

Topical Seminars

As a major training initiative to address industry
concerns, the Institute organised the Training and
Development Needs and ATD Post- Conference
Forum on 13 August 2015. This forum, which is
envisaged to become another signature event
for training and development highlighted training
professionals from international and local corporations
who provided much inspiration.

Trends of pay adjustment, bonus incentives and 05/ The full-day Training and
employees' benefits constituted the main subject Development Needs and ATD
matter at the Institute's Pay Trend and Benefit Seminar Post Conference receives
on 3 November 2015. Findings of the Institute's annual overwhelming response
topic survey Talent Shortage were also revealed at from event sponsors and HR
the seminar to provide HR professionals and business practitioners.
executives with insights into Hong Kong's labour
shortage issue. The two events attracted more than 06/ Chester Tsang, Co-
400 HR professionals and business executives.   chairperson of the HKIHRM
Learning and Development
05 Committee, presents the 2014
Training and Development Needs
To emphasise the crucial role HR plays as a strategic Survey result and training trends
business partner of an enterprise, the Institute at the Training Needs Seminar.
introduced an increased number of courses that
incorporated components of global 2014
business strategies and legal updates.
30 more up-to-date seminars focusing on 07/ Professor Raymond So,
the following categories: Communication/ Dean of the School of Business at
Personal Development; Management Super- Hang Seng Management College,
vision and Leadership; Project Management shares his insights on Hong
and Team Building, were organised throughout Kong's economic trends and
the year. With an increase of 838 participants outlook at the Pay Trend Survey
deriving benefit from the courses, our aim is to Seminar.
create better value for members and develop a wider
range of training and development topics to suit their 08/ Speakers of the Pay Trend
professional needs. Survey Seminar pose for a group
photo.
08
06

07

09 15

10 11

Speaker Faculty 09/ The Institute organises a
seminar on HR legal compliance
A Speaker Faculty continued to pay tribute to more which attracts over 100 HR
than 60 HR professionals who volunteered to devote practitioners.
their precious time and effort and to share their
experience and knowledge in the Institute's various 10/ HKIHRM organises a seminar
training programmes. The principle of "practitioners titled "Unlocking Talent Potential",
train practitioners" was well maintained and further during which profiling systems
developed with the volunteers' dedication. are introduced to help identify and
maximise the potential of talent in
In 2015 the Learning and Development Department a scientific manner.
launched the trainer endorsement initiative to
acknowledge a trainer's competency in a related HR 11/ Training professionals are
subject area. During the year, more than 50 trainers invited to share their professional
received such endorsement by the Institute in their knowledge and expertise with HR
LinkedIn professional profile. practitioners under the Institute's
Trainer-the-Trainer programme.
Annual Conference and
Exhibition

As one of the Institute's annual signature events,
the 35th HKIHRM Annual Conference and Exhibition
was staged on 24 and 25 November 2015 at
Hong Kong Convention and Exhibition Centre. The
Conference theme, "People First", underpinned the
belief that people are the most important asset to
any organisation and content and highly engaged
employees are crucial for business development and
sustainability. Nearly 50 renowned local and overseas
speakers from various industries and business sectors
shared their thought-provoking ideas and insights in
40 different sessions over the two days to address a
wide range of topics.

The Hon Carrie Lam Cheng Yuet-ngor, GBS, JP, the 12/ Members of HKIHRM's
Chief Secretary for Administration of the Government Executive Council and Organising
of the HKSAR, was the Guest of Honour. Among the Committee of the Annual
different sessions, American author Michelle Tillis Conference and Exhibition.
Lederman was the speaker of the Guru Plenary to
address the topic "The Relationship-Driven Leader". 13/ HKSAR Government Chief
The inspirational speaker Antony Leung, GBS, JP, Secretary for Administration The
Group Chief Executive Officer of Nan Fung Group Hon Carrie Lam Cheng Yuet-ngor
added dynamics to the Conference by sharing his is the Guest of Honour of the
vision and aspirations in both business and charity. Conference.
Business executives and top HR executives joined
the panels of CEO Plenary and Senior HR Forum 14/ Business leaders at CEO
to exchange their views and insights on people Plenary debate the importance
management. of teamwork, workplace diversity
and corporate culture in relation
12 to human capital development.

13 15/ Michelle Tillis Lederman, the
guru speaker of the Conference,
15 talks about the essentials of
winning leadership.

Michelle Tillis

Lederman

14

16 17

18 17

19 View highlights of 2015 HKIHRM
Concurrently with the Conference, a free exhibition Annual Conference and Exhibition
was held with nearly 50 service providers
demonstrating their latest HR-related services and 2015
products. Various symposium sessions were also held
in the exhibition hall. A record-breaking number of 16/ Leading HR executives
nearly 2,200 delegates and visitors from Hong Kong at Senior HR Forum discuss
and overseas participated in the Annual Conference the connection between staff
and Exhibition. engagement and business
success.
20
17/ Group Chief Executive
Officer of Nan Fung Group,
Antony Leung, the inspirational
speaker of the Conference,
shares his life philosophy and
future challenges for Hong Kong's
manpower development.

18/ Over 20 concurrent sessions
take place during the two-day
event.

20
19/ Speakers at symposium
sessions share a wide range of
HR-related topics.

20/ Nearly 50 service providers
showcase their latest HR services
and products at the exhibition.

50

PROFESSIONAL
RECOGNITION

01/ The annual HR Excellence
Awards recognise organisations
and individuals who achieve
business success through
outstanding people management
strategies and practices.

01

HR Excellence Awards

The HR Excellence Awards programme 2015/16
was kicked off in September 2015, with the aim
to raise the professionalism and competence of
HR professionals and promote best practices
in people management. The Awards provides a
valuable platform for organisations and individuals to
demonstrate their best initiatives, and how they have
contributed to business success.

The HR Excellence Awards 2015/16 judging panel
is led by the Hon Gregory So Kam-leung, GBS, JP,
Secretary for Commerce and Economic Development

02 19

of the Government of the HKSAR. Other members 02 / Margaret Cheng (third
of the judging panel include the Institute's President from left), Chairperson of the
Mr David Li; Dr Roy Chung, BBS, JP, Co - Founder Awards' Organisation Committee
and Non-Executive Director, Techtronic Industries poses with representatives from
Company Limited; Professor Chan Ka-lok, Dean of Gammon Constructions Limited,
Business School, The Chinese University of Hong the winner of Grand Award of
Kong; Mr Ritchie Bent, Group Head, HR, Jardine the Year 2014, who reveal their
Matheson Limited and Ms Margaret Cheng, the winning formula.
Institute's Vice President and Group Head, HR, Hong
Kong Exchanges and Clearing Limited and chairperson 2014
of the Award's organising committee.
03 / Chairperson of HR
To further promote the Awards to the HR community Excellence Awards Organising
and the business sector and encourage participation, Committee, Margaret Cheng,
the Institute organised a briefing session on 15 hosts the Awards briefing
October 2015, where past winners were invited to session.
share their winning formulas and practical tips with
over 60 HR practitioners who are interested to enter
into the Awards.

As the highlight of the programme, the presentation
ceremony and gala dinner will take place in September
2016. Accolades are presented in four categories
including Organisational; HR Service Provider; SME;
and Individual. Winner of the Grand Award of the
Year will be selected by the judging panel from the
awardees under the Organisational category.

The Organising Committee of HR Excellence Awards
2015/16 includes Ms Margaret Cheng (Chairperson);
Mr David Li; Ms Nancy Chan; Mr Barry Ip; Ms Daisy
Lee; Mr Dave Li; Mr Francis Mok; Mr Felix Siu; Ms
Ada To; Mr Johnny Wan; Mr Francis Wong16an/ d Ms
Tafline Yew.

03

PROFESSIONAL
STANDARDS

01/ 40 HR professionals
attend a workshop in July to
help map out a task matrix of
HRM functional areas for the
Qualifications Framework for the
HRM sector.
40 7

01

Commitment and Contribution

to the HRM Sector

In July 2014, the Institute was commissioned by
the Government of the HKSAR as the professional
writer to develop and produce the Specification
of Competency Standards (SCS) for the Human
Resource Management (HRM) sector under Hong
Kong Qualifications Framework. This saw the
commencement of an exciting venture to help the
government to establish professional benchmarks for
HR practitioners at all levels to continue to learn and
attain quality-assured qualifications.

The production of the SCS for the HRM sector 02 / 40 HR senior professionals 21
consists of five phases over a 24-month period. join a workshop in August to
During the current reporting year, two key phases review and validate the draft
of the project were completed. Phase I involved an matrix of HRM functional areas
environment scan aimed at reviewing what and how for the Qualifications Framework
political, economic, social, legal, environmental, and for the HRM sector.
technological factors will affect the HRM sector in the
near term and in the future.  The scan was conducted 40 8
in the form of one-on-one interviews, focus groups
and questionnaires. It is followed by consultation 03 / Phase III of the QF Drafting
with various stakeholders including government of HRM Competency Standards
officials, representatives from labour unions, business kicks off with a briefing session
leaders, senior HR leaders, academia, local and for over 20 HR practitioners in
overseas HRM and training professional bodies, October.
small- and medium-sized enterprise associations,
HRM specialists, and young HRM practitioners. The 10
HRM sector profile report which concluded with the 20
key strategic directions for Hong Kong's HRM sector
and the preliminary functional mapping of the seven
defined HRM Functional Areas was well received and
endorsed by the Cross-Industry Training Advisory
Committee (CITAC) for the HRM sector.  

When progressing into Phase II, the Institute received
enormous support from our senior and professional
members. More than 60 HR practitioners from various
industries and large- and medium-sized corporations,
as well as academia attended one or both of the
two workshops organised during the summer of
2015.  With the timely and intensive input of these
industry practitioners and academia into the specially
designed workbooks, a matrix of key functions
and associated tasks over the defined seven HRM
Functional Areas was presented to and endorsed by
CITAC for the HRM sector which marked another
successful milestone.

In the autumn, the Institute's efforts focused
on expanding the functional matrix of the seven
HRM Functional Areas to include the competency
specifications in terms of cognitive abilities and
behaviours to perform the associated tasks. More
than 30 HR practitioners and academia attended

02

03

Phase III briefing session in October 2015 and Total No. of Candidates Passing Rate
collectively produced the very first draft of an
expanded functional matrix in December 2015. Phase 2 100%
III development will continue into 2016. 20 100%
26 100%
This important HRM initiative has been progressing 5 100%
well. The Institute is grateful to have received 13 100%
tremendous support and contribution from the 13 90%
members and other key stakeholders from various 114
industries and sectors.

Professional Assessment

The Institute organised two Associate Member
Assessments in July and December 2015 respectively
for individuals who were relatively new to the HR
industry. By passing the examination, HR practitioners
will obtain professional membership granted and
recognised by the Institute. Furthermore, eight
professional assessments were held, which covered
HR management and development areas including
employment law and employee engagement, reward
management, sourcing and staffing, train-the-
trainer and learning management. By end of 2015, a
total of 114 candidates participated in the Institute's
professional assessments and the overall passing rate
was satisfactory.

Types of Professional Assessment

Associate Member Assessment

Employment Law and Employee Engagement

Reward Management

Sourcing and Staffing

Learning and Development - Learning Management

Learning and Development - Train-the-Trainer

Total

Programme Endorsement

The Institute continues to work collaboratively with
local tertiary institutions and support them in offering
quality HR programmes. In 2015, 22 higher education
programmes were under full or partial endorsement
by the Institute. A new programme endorsement
logo valid for the years from 2015 to 2018 was rolled
out in September.  Please see Appendix 3 for a list of
programmes endorsed and partially endorsed.

23

ADVOCACY
AND

COMMUNICATION

01 / Lawrence Hung, Vice
President of HKIHRM, reveals the
findings of 2015 Pay Trend Survey
in the press conference held in
November.

11
2015

01

As a leading professional human resource management
and advisory body for the Government of the HKSAR,
the Institute has a key role to play in advocating its
professional stance in Hong Kong's employment-
related legislation issues and human capital
development.

Stepping Up Advocacy Efforts

In October, the Executive Council of the Institute
endorsed the renaming of the Minimum Wage
and Standard Working Hours Taskforce into the
Employment-Related Hong Kong Legislation and
Issues Committee. This move is to reflect the
expanded scope of the Institute's advocacy initiatives
and efforts in Hong Kong's labour, employment and
manpower development issues. To exert its influence

in the professional circle and society, the Institute has 02 / Barry Ip (left) and Chester
continued to gather the views of its members and HR Tsang, Co-chairpersons of
practitioners through various channels and platforms HKIHRM's Learning and
and makes recommendations to the Government by Development Committee, share
submissions and publicity activities.   the results of 2014 Training and
Development Needs Survey at
With labour shortage becoming a critical issue for the media briefing held in July.
the Government and HR practitioners, the Institute
conducted an online poll on retirement age in May. 7
The results indicated that close to 80 percent of HR 2014

02 03 / The President receives a
media interview on employers'
hiring intentions and Hong Kong's
employment outlook.

04 / The President receives

03 the 2015 Best SME's Partner
Award organised by the Hong

Kong General Chamber of Small

and Medium Business. This is

the second year the Institute

has received this award, which

recognises the Institute's efforts

to help enhance SMEs' HR

knowledge.

2015

professionals supported raising retirement age as 04
an effective measure to tackle Hong Kong's labour
shortage problem. The findings were released to the
media and attracted extensive media coverage.

Media Relations

As an authoritative organisation in HR, the Institute
maintains close relationships with local and overseas
media which participate in the Institute's media
activities. Also members of the Executive Council and
relevant committees are regularly invited to address
HR and employment–related issues. Throughout the
year, the Institute organised briefing sessions for the
media on topics including Training and Development
Needs Survey in August and Pay Trend and Benefits
Survey in November. Media were kept well informed
of the findings of the Institute's regularly conducted
topical surveys such as the Half-Yearly Manpower
Statistics and Talent Shortage and the Institute's
latest happenings through press releases and media
enquiries.

Policy Address

The President attended a consultation session in
November 2015 to share his views and suggestions
on behalf of the Institute regarding the 2016 Policy
Address and the Budget. The Institute recommended
the Government to review and refine the current
import labour policy to alleviate the labour shortage
problem. Whilst this relates to most industries, it is
particularly important to the construction and elderly
care service to ensure sufficient manpower to cater
for Hong Kong's economic development and the

needs of individual industries. The Government and 05 / The President (left) and 25
industries were also urged to help strengthen training Kwan Kin Mei, Executive Director
and employment-support services to attract new attend the launch ceremony
blood to tackle the city's ingrained labour shortage of "2015 Employers' MPF
challenge.    Obligations Publicity Campaign
cum Good MPF Employer Award"
Partnerships and of which HKIHRM is a supporting
organisation.
Collaboration
06 / The Institute's professional
The Institute continued to foster close collaboration views on HR-related issues are
with various statutory organisations, professional widely reported by the media.
organisations and commercial entities by participating
in or supporting their programmes and events for 05
good causes. During the year, the Institute supported
or participated in 13 events including International 06
SME Summit and Best SME's Partner Award and
Partner Employer Award organised by the Hong Kong
General Chamber of Small and Medium Business;
the 6th Hong Kong Outstanding Corporate Citizenship
Award Scheme by Hong Kong Productivity Council;
Work-life Balance Week by Community Business;
Professional Workshops on Data Protection by the
Office of the Privacy Commissioner for Personal
Data; Good MPF Employer Award by the Mandatory
Provident Schemes Authority; Manpower Developer
Award Scheme by Employees Retraining Board; Annual
Banking Conference 2015 by the Hong Kong Institute
of Bankers, as well as HR Congress 2015 by Hong
Kong Baptist University's Centre for Human Resources
Strategy and Development and Career Times.

The Institute received the 2015 Best SME's Partner
Award organised by the Hong Kong General Chamber
of Small and Medium Business. The Award was to
recognise the Institute's effort and support to help
SMEs enhance their HR knowledge and implement
HR strategies for business development and talent
management. It was the second year that the Institute
was recognised with this Award. The President
received the award on behalf of the Institute from Mr
Philip Yung, Permanent Secretary for Commerce and
Economic Development (Commerce, Industry and
Tourism). The Institute will continue to work closely
with Hong Kong's SME community to enhance their
HRM competency and capability through tailored
initiatives.  

Representation on External

Committees

Some incumbent and previous Executive Council
members were invited to serve on different statutory
committees and advisory bodies on behalf of the
Institute to express professional views on topical
issues from the HR perspective. A full listing
of HKIHRM representatives serving at external
committees is provided in Appendix 4.

CHINA AND
INTERNATIONAL

CONNECTIONS

01/ The 7th Two-Shore Four-
Place Employee Relation Forum
with the theme of "New Strategies
for Talent Management · Turning
Challenges into Opportunities"
attracts over 100 HR practitioners,
academics and experts from
mainland China, Taiwan, Hong
Kong and Macau.

7

100

02/ Speakers share their insights
into issues related to human
resource management during the
panel discussion of Two-Shore
Four-Place Employee Relation
Forum.

01

Leveraging its networks in Mainland China and the
neighbouring regions, the Institute continued to build
and strengthen its ties with the HR communities,
professional organisations and government bureaus
through meetings, exchanges of views and participation
in events.

02

03 27

SmartHK Expo 03/ The Institute's Executive
Director, Kwan Kin Mei (left)
The Institute participated in the HR Forum during the moderates at the SmartHK HR
SmartHK Expo in Jinan on 27 and 28 May, organised forum held in Jinan in May, with
by Hong Kong Trade Development Council. The the speakers sharing their views
Institute's Executive Director, Ms Kwan Kin Mei was and thoughts about succession
invited to deliver an opening address and moderate planning for enterprises.
at a sharing session joined by Mr Eric Sun, Managing
Director of Kinox and Mr Pierre Zhuang, Chief Executive 5
Officer of Bó Lè Associates who offered their views •
on enterprise succession planning and strategies. This
seminar attracted over 480 local senior HR executives, 04/ HKIHRM participates in
CEO business leaders and entrepreneurs. a workshop organised by the
Hong Kong Economic and Trade
Collaboration with Office in Shanghai in March for
Hong Kong students studying
Hong Kong Economic and Trade at universities in Shanghai and
neighbouring cities. Members
Office in Shanghai of the China and International
HRM Committee share effective
The Institute collaborated closely with the interview skills and workplace
Government of the HKSAR's Hong Kong Economic practices with the students.
and Trade Office in Shanghai and provided mentoring 3
and advisory support to Hong Kong students studying
in the Mainland. The collaborative effort included a 05/ HKIHRM and Hong Kong
workshop held on 14 March 2015 for some 60 Hong Economic and Trade Office
Kong students studying at universities in Shanghai in Shanghai co-host a lunch
and neighbouring cities. Mr Alan Tin, Co-chairperson gathering in October for Hong
of China and International HRM Committee, and Kong students studying at
Ms Linda Ho, a member of the Committee shared universities in Shanghai.
their advice to help the students get well prepared 10
for a smooth transition from college to workplace.
In October, the Institute jointly organised a lunch 04
gathering with the Hong Kong -Shanghai Youth
Association and Hong Kong Chamber of Commerce
in Shanghai to orientate 120 Hong Kong students
studying at local universities. Ms Linda Ho and Mr
Michael Chau represented the Institute to share their
experiences with the students.

05

06 06/ Speakers share their insights
into issues related to human
7th Two-Shore Four-Place resources management at the
Employee Relation Forum panel discussion of Two-Shore
Four-Place Employee Relation
The Institute gathered together more than 15 experts, Forum.
academics and policy strategists in HRM from
Mainland China, Hong Kong, Macau and Taiwan for 07/ Speakers at the 7th Two-
the 7th Two -Shore Four- Place Employee Relation Shore Four-Place Employee
Forum which was held at the Hong Kong Convention Relation Forum who share
and Exhibition Centre on 23 September. The speakers insights into various HR and
shared their thoughts and views on the latest trends, human capital development
challenges and opportunities in manpower and labour issues pose for a group photo.
markets from both local and global perspectives.
With the theme being "New Strategies for Talent 7
Management · Turning Challenges into Opportunities",
the forum attracted more than 100 HR practitioners 08/ Eddie Ng Hak-kim, SBS, JP,
and participants from the four places. Mr Eddie Ng Secretary for Education, HKSAR
Hak-kim, SBS, JP, Secretar y for Education of the Government gives an opening
Government of the HKSAR was the officiating guest speech as Guest of Honour at
at the event. the 7th Two-Shore Four-Place
Employee Relation Forum.
07
7
08

International Collaboration 29

As a member of the Asia Pacific Federation of Human 09/ The President (right) attends
Resource Management (APFHRM), the Institute actively the board meeting of the Asia
took part in its activities. The organisation's Council Pacific Federation of Human
meetings were held in Tokyo, Japan in March and in Resource Management and a
Singapore in October, during which the President updated symposium in Tokyo, Japan and
fellow HR professional bodies from other regions on the gives an update on Hong Kong's
economic situations of Hong Kong and Mainland China latest employment trends and
and shared the challenges to Hong Kong's human capital issues.
development and the Institute's latest initiatives.
10/ Dave Li, Honorary Treasurer
09 of HKIHRM (first row left),
talks about the challenges to
10 Hong Kong's human capital
development to a group of
To further strengthen the Institute's professional 40 HRM major students from
image and foster collaboration beyond Hong Kong, Singapore Polytechnic.
Executive Council members and the Executive
Director represented the Institute to participate 40
in activities and meetings hosted by overseas
professional organisations and government bodies
including the UK-based Chartered Institute of
Personnel and Development office in Singapore,
National Human Resources Division and National
Human-Capital Office of Ministry of Manpower in
Singapore, and the International Labour Organization's
Country Office for China and Mongolia in Beijing,
and Chung-Hua Labor and Employment Relations
Association in Taiwan.

REPORT OF
THE EXECUTIVE
COUNCIL

The Executive Council presents herewith their annual report together with the
financial statements of the Institute for the year ended 31 December 2015.

Principal Activities

The principal activity of the Institute is to maintain, develop and enhance
professional standards in human resource management, covering quality,
ethics and practices, and to increase the influence of human resource
professionals, for the benefit of individuals and organisations in Hong Kong.

Results

The results of the Institute for the year ended 31 December 2015 are set out
in the income statement on page 34.

Executive Council Members

The members of the Executive Council during the year and up to the date of
this report were:

Mr. Li Chi Ming President Retired and re-elected on
23 June 2015
Mr. Mok Gar Lon, Francis Immediate Past
President Retired and re-elected on
Ms. Cheng Wai Ching, Vice President 23 June 2015
Margaret Retired and re-elected on
Mr. Hung Yu Yun, Vice President 23 June 2015
Lawrence
Ms. Wong Nga Lai, Alice Vice President Elected on 23 June 2015
Resigned on 23 June 2015
Mr. Li Tin Kei, Dave Hon. Treasurer

Mr. Wong Wai Wah,
Francis
Mr. Chiu Ki Kwan

Ms. Choi Wai Kam, Virginia

Mr. Lai Kam Tong

Mr. Ma Chi Keung

Mr. Tsang Wing Cheong,
Chester
Mr. Chak Shui Hang

Ms. Wong Sau Kuen, Elisa

31

Management Contracts

No contracts concerning the management and administration of the whole
or any substantial part of the business of the Institute were entered into or
existed during the year.

Auditors

A resolution will be submitted to the annual general meeting to re-appoint
Messrs. Fung & Chan as auditor of the company.
Approved by Executive Council Members and signed on its behalf by:

Li Chi Ming, David
President
Hong Kong, 30 April 2016

INDEPENDENT
AUDITOR'S
REPORT

To the Members of Hong Kong Institute of Human
Resource Management Limited (incorporated in Hong
Kong, limited by guarantee and not having a share capital)

We have audited the financial statements of Hong Kong Institute of Human
Resource Management Limited ("the Institute") set out on pages 34 to 41,
which comprise the statement of financial position as at 31 December 2015, the
income statement and statement of cash flows for the year then ended, and a
summary of significant accounting policies and other explanatory information.

Executive Council Members' Responsibility for the
Financial Statements

The Executive Council Members are responsible for the preparation of the
financial statements in accordance with the Small and Medium-sized Entity
Financial Reporting Standard ("SME-FRS") issued by the Hong Kong Institute
of Certified Public Accountants and Hong Kong Companies Ordinance and
for such internal control as the Executive Council Members determine is
necessary to enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements
based on our audit and to report our opinion solely to you, as a body, in
accordance with section 405 of the Hong Kong Companies Ordinance, and
for no other purpose. We do not assume responsibility towards or accept
liability to any other person for the contents of this report. We conducted our
audit in accordance with Hong Kong Standards on Auditing and with reference
to Practice Note 900 (Revised) "Audit of Financial Statements Prepared in
Accordance with the Small and Medium-sized Entity Financial Reporting
Standard " issued by the Hong Kong Institute of Certified Public Accountants.

33

Those standards require that we comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the
amounts and disclosures in the financial statements. The procedures selected
depend on the auditor's judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the
entity's preparation of financial statements in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the entity's internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness
of accounting estimates made by the Executive Council Members, as well as
evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements of the Institute for the year ended 31
December 2015 are prepared, in all material respect, in accordance with the
SME-FRS and have been properly prepared in compliance with the Hong Kong
Companies Ordinance.

Fung & Chan
Certified Public Accountants
Room 2001-4
China Insurance Group Building
141 Des Voeux Road Central
Hong Kong

INCOME STATEMENT Note 2015 2014
3 HK$ HK$
FOR THE YEAR ENDED 31 DECEMBER 2015 4 21,569,590 20,886,707
(7,104,332) (7,391,622)
Revenue 5 14,465,258 13,495,085
Direct cost (192,832) 302,658
Gross profit 6 (13,075,205) (12,801,866)
Other (losses)/revenue 8 1,197,221 995,877
Administrative expenses (142,000) (162,000)
Surplus before taxation 1,055,221 833,877
Taxation
Surplus for the year

The annexed notes form an integral part of these financial statements.

STATEMENT OF FINANCIAL POSITION 35

AT 31 DECEMBER 2015 Note 2015 2014
9 HK$ HK$
Non-current assets
Furniture and equipment 10 418,496 460,585
Current assets 11
Trade debtors 342,669 210,772
Interest receivable 11,226 15,620
Prepayments
Rental, utility and other deposits 398,415 305,672
Cash and bank balances 558,991 558,991
Bank fixed deposits (non-pledged) 5,512,831 4,640,211
Bank fixed deposits (pledged) 16,350,181 16,568,472
Taxation 200,000 200,000

Total assets 37,898 -
23,412,211 22,499,738
General fund 23,830,707 22,960,323
Current liabilities
Functions and publications income received 21,119,521 20,064,300
in advance
Subscriptions received in advance 361,400 466,356
Accrued expenses
Provision 1,252,938 1,219,356
Taxation 953,576 1,027,513
143,272
Total general fund and liabilities - 98,370
84,428
Approved and authorised for issue by Executive Council on 30 April 2016 2,711,186 2,896,023
and signed on its behalf by: 23,830,707 22,960,323

Li Chi Ming, David Li Tin Kei, Dave
President Hon. Treasurer

The annexed notes form an integral part of these financial statements.

STATEMENT OF CASH FLOWS 2015 2014
HK$ HK$
FOR THE YEAR ENDED 31 DECEMBER 2015 1,197,221 995,877

Surplus before taxation (231,694) (265,543)
Adjustments for: 326,981 432,881

Bank interest income 1,292,508 1,163,215
Depreciation
(131,897) 114,142
Movement in working capital (92,743) (195,913)
(Increase)/decrease in trade debtors 368,260
Increase in prepayments (104,956)
(Decrease)/increase in functions and (13,858)
publications income received in advance 33,582
Increase/(decrease) in subscriptions received 75,681
in advance (29,035)
(Decrease)/increase in accrued expenses and 1,511,527
provision 967,459 30,584
(264,326)
Cash from operations 1,542,111
Profits tax refund/(paid) 703,133
Net cash from operating activities (33,638)
Cash flows from investing activities (284,892) 269,135
236,088 235,497
Purchases of furniture and equipment (48,804) 1,777,608
Interest received 654,329 19,431,075
Net cash (used in)/from investing activities
Net increase in cash and cash equivalents 21,208,683 21,208,683
Balances of cash and cash equivalents at
beginning of the year 21,863,012
Balances of cash and cash equivalents at end of
the year

The annexed notes form an integral part of these financial statements.

NOTES TO THE FINANCIAL STATEMENTS 37

FOR THE YEAR ENDED 31 DECEMBER 2015

1. GENERAL INFORMATION
The Institute is a company limited by guarantee and not having a share capital.
"Limited by guarantee" means that the liability of each member is limited in
the case of a winding-up to HK$1.00; in addition the income and assets of the
Institute can only be applied to promote the Institute's objects and, for example, it
cannot pay dividends of any kind to its members.

The principal activity of the Institute is to maintain, develop and enhance
professional standards in human resource management, covering quality, ethics
and practices, and to increase the influence of human resource professionals, for
the benefit of individuals and organisations in Hong Kong.

The address of the registered office is located at Suite 1503, 15/F., 68 Yee Wo
Street, Causeway Bay, Hong Kong.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of preparation of the financial statements
The Institute qualifies for the reporting exemption as small private companies
under section 359 (1)(a) of the Hong Kong Companies Ordinance (Cap. 622). The
Institute is therefore entitled to prepare and present its financial statements in
accordance with the Small and Medium-sized Entity Financial Reporting Standard
("SME-FRS") issued by the Hong Kong Institute of Certified Public Accountants.

The Institute's financial statements for the year ended 31 December 2015 are
its first annual financial statements prepared under accounting polices that
comply with the SME-FRS. The Institute applied Hong Kong Financial Reporting
Standards ( " HKFRSs " ) prior to the application of the SME-FRS.

There are no significant impact in adopting the SME-FRS on these financial
statements.

These financial statements comply with the SME-FRS and have been prepared
under the accrual basis of accounting and on the basis that the Institute
is a going concern. The measurement basis adopted is the historical cost
convention.

(b) Furniture and equipment and depreciation
Furniture and equipment are stated at cost less depreciation. The cost of an asset
comprises its purchase price and any directly attributable costs of bringing the
asset to working condition and location for its intended use. Expenditures incurred
after the furniture and equipment have been put into operation are normally
charged to profit or loss in the period in which they are incurred. In situations
where it can be clearly demonstrated that the expenditure has resulted in an
increase in the future economic benefits expected to be obtained from the use of
the furniture and equipment, the expenditure is capitalised as an additional cost
of the furniture and equipment. When assets are sold or retired, their cost and
accumulated depreciation are removed from the accounts and any gain or loss
resulting from their disposal is included in profit or loss.

(c) Trade and other receivables
Trade and other receivables are stated at estimated realisable value after each
debt has been considered individually. Where the payment of a debt becomes
doubtful a provision is made and charged to profit or loss.

(d) Impairment on assets
At the end of each reporting period, the Institute reviews the carrying amounts
of its assets to determine whether there is any indication that those assets have
suffered an impairment loss. If the recoverable amount of an asset is estimated to
be less than its carrying amount, the carrying amount of the asset is reduced to its
recoverable amount. Impairment loss is recognised as an expense immediately.

Recoverable amount is the greater of an asset's net selling price and future net
cash flow expected from the continued use of that asset.

Where an impairment loss subsequently reverses, the carrying amount of the
asset is increased to the revised estimate of its recoverable amount, but so that
the increased carrying amount does not exceed the carrying amount that would
have been determined had no impairment loss been recognised for the asset in
prior years. A reversal of an impairment loss is recognised as income immediately.

(e) Trade and other payables
Trade and other payables are initially measured at fair value and, after initial
recognition, at amortised cost, except short-term payables with no stated
interest rate and the effect of discounting being immaterial, that are measured
at their original invoice amounts.

(f) Provision and contingent liabilities
Provisions are recognised when it is probable that an outflow of economic benefits
will be required to settle a current legal or constructive obligation as a result of past
events, and a reliable estimate can be made of the amount of the obligation.

Contingent liabilities are possible obligations that arise from past events whose
existence will be confirmed only by the occurrence or non-occurrence of one
or more uncertain future events not wholly within the control of the Institute; or
are present obligations that have arisen from past events but are not recognised
because it is not probable that settlement will require outflow of economic
benefits, or because the amount of the obligations cannot be reliably measured.
Contingent liabilities are disclosed in the financial statements unless the probability
of settlement is remote.

(g) Revenue recognition
Revenue is recognised when it is probable that the economic benefits will
flow to the Institute and when the revenue can be measured reliably, on the
following bases:

Annual subscriptions are billed to members on an annual basis in respect of
each year ending 31 March. Subscriptions are recognised on a time proportion
basis. The proportion of annual subscriptions relating to future periods is
deferred and recognised in the statement of financial position as subscriptions
received in advance.

Entrance fees are recognised in the year of receipt.

Receipts from Institute functions are recognised when the functions are taken place.

Income from sale of publications is recognised when the publications are delivered 39
or invoiced and title has passed.

Interest income is recognised using the effective interest method.

(h) Taxation
Income tax expense represents current tax expense. The income tax payable
represents the amounts expected to be paid, using the tax rates that have been
enacted or substantively enacted by the end of the reporting period.

(i) Leases
Leases that transfer substantially all the rewards and risks of ownership of
assets to the Institute, are accounted for as finance leases. The leased asset is
capitalised, at the inception of a finance lease, as an item of property, plant and
equipment at its fair value or, if lower, at the present value of the minimum lease
payments and are depreciated over the shorter of its estimated useful life or
the lease term. Lease payments are apportioned between the finance charges
and reduction of the lease liability so as to achieve a constant rate of interest on
remaining balance of the liability. Finance charges are charged to profit or loss.

Leases where substantially all the risks and rewards of ownership of assets are not
transferred to the lessee are accounted for as operating leases. Rentals applicable
to operating leases are dealt with in profit or loss on a straight-line basis over the
lease term.

(j) Retirement benefit costs
The Institute operates a defined contribution Mandatory Provident Fund retirement
benefit scheme (the "MPF Scheme") under the Mandatory Provident Fund
Schemes Ordinance for those employees who are eligible to participate in the
MPF Scheme. Contributions are made based on a percentage of the employees'
basic salaries and are charged to profit or loss as they become payable in
accordance with the rules of the MPF Scheme. The assets of the MPF Scheme
are held separately from those of the Institute in an independently administered
fund. The Institute's employer contributions vest fully with the employees when
contributed into the MPF Scheme.

(k) Foreign exchange
The reporting currency of the Institute is Hong Kong Dollars, which is the currency
of the primary economic environment in which the Institute operates.

Foreign currency transactions are converted at the exchange rate applicable at the
transaction date. Foreign currency monetary items are translated into Hong Kong
Dollars using exchange rates applicable at the end of the reporting period. Gains
and losses on foreign exchange are recognised in profit or loss.

(l) Related parties
(a) A person, or a close member of that person's family, is related to the
Institute if that person:
(i) has control or joint control over the Institute;
(ii) has significant influence over the Institute; or
(iii) is a member of the key management personnel of the Institute.
(b) An entity is related to the Institute if any of the following conditions applies:
(i) The entity is controlled or jointly controlled by a person identified in (a).
(ii) A person identified in (a)(i) has significant influence over the entity or is
a member of the key management personnel of the entity (or of a parent
of the entity).

3. REVENUE 2015 2014
Revenue represents revenue from subscriptions, entrance fees, HK$ HK$
institute functions, sale of publications and advertising as follows: 5,275,783 5,196,216
14,349,818 13,900,750
Subscriptions and entrance fees 670,074 746,883
Gross receipts from institute functions 1,273,915 1,042,858
Sales of research related publications 21,569,590 20,886,707
Advertising income
2015 2014
4. DIRECT COST HK$ HK$
1,205,470 1,156,418
Membership related expenditures 5,666,948 6,009,209
Expenditure on institute functions 73,111 104,007
Cost of research related publications 158,803 121,988
Advertising related expenditure 7,104,332 7,391,622

5. OTHER (LOSSES)/REVENUE 2015 2014
HK$ HK$
Bank interest income 231,694 265,543
Net exchange difference (449,410) 2,063
Sundry income 24,884 35,052
(192,832) 302,658
6. SURPLUS BEFORE TAXATION
Surplus before taxation is arrived at after charging: 2015 2014
HK$ HK$
Depreciation 326,981 432,881
Operating lease rental of office premises 1,897,409 1,766,118
Staff costs
- Salaries and allowances 8,762,353 8,592,944
- Retirement benefit costs under defined 526,951 519,785

contribution plans

7. EXECUTIVE COUNCIL MEMBERS' REMUNERATION
In accordance with article 54 of the Institute's Articles of Association, there
was no remuneration paid to the Executive Council Members.

8. TAXATION
Hong Kong profits tax has been provided at the current rate of 16.5% (2014:
16.5%) on the estimated assessable profits for the year.

9. FURNITURE AND EQUIPMENT 41

Cost Furniture,fixtures Leasehold Total
At 1 January 2015 and equipment improvements HK$
Additions HK$
At 31 December 2015 HK$ 3,409,895
284,892
Depreciation 2,751,635 658,260
At 1 January 2015 284,892 - 3,694,787
Charges for the year
At 31 December 2015 3,036,527 658,260 2,949,310
326,981
Net book value 2,291,050 658,260
At 31 December 2015 326,981 - 3,276,291
At 31 December 2014
2,618,031 658,260 418,496
Depreciation is provided on the straight-line method based on the estimated 460,585
economic useful lives of the individual assets at the following annual rates:- 418,496 -
460,585 -
Furniture, fixtures and equipment
Leasehold improvements 25% to 33 1/3%
33 1/3%
10. GENERAL FUND
Balances at 31 December 2014 2015 20,064,300
Surplus for the year HK$ 1,055,221
Balances at 31 December 2015 98,370 21,119,521
44,902
11. PROVISION 143,272 2014
HK$
At 1st January 135,225
Provision/(write back)for the year (36,855)
At 31st December 98,370
This represents provision for annual leave entitlements accrued to employees.
2015 2014
12. COMMITMENTS HK$ HK$
At the end of the reporting period, the Institute had total future minimum 1,897,409 1,897,409
lease payments under non-cancellable operating lease with landlords related 2,461,361 2,461,361
to land and buildings falling due as follows: 4,358,770 4,358,770

Within one year
Within the next second to fifth year

13. BANKING FACILITIES
Bank fixed deposits of HK$200,000 are pledged to a bank to secure banking facilities.

appendix 1

1

HKIHRM OrganisationAL Structure

(as at 31 Dec 2015)

EXECUTIVE COUNCIL

Secretariat OfficeAnnual ConferenceFinance Department
Committees and Advisory BoardsCommittee
Human Resource
China and International / Administration
HRM Committee Department

Editorial Committee Human Resource
Professional Standards
Employee Engagement Department
and Employers' Branding
Committee Learning &
Development
Employment-Related Department
Hong Kong Legislation
and Issues Committee Membership
Department
HR Excellence Awards
Committee Project & Event
Department
International Advisory
Board Public Relations &
Communications
Learning and Department
Development Committee
Research &
Membership Evaluation Development
Committee Department

Professional Standards
Committee

Programme
Endorsement
Sub-Committee

Remuneration
Committee

Research Committee

Strategic Advisory Board

Management Committee

IT Advisory Group

appendix 2 43

2

Executive Council and Committees / 2015/16
Advisory boards 2015/16

2015/2016 Executive Council Prof Randy Chiu Ki-kwan
Council Member
David Li Chi-ming
President

Margaret Cheng Wai-ching Virginia Choi Wai-kam, JP
Vice President Council Member

Lawrence Hung Yu-yun Lai Kam-tong
Vice President Council Member

Alice Wong Nga-lai Valent Ma Chi-keung
Vice President Council Member

Dave Li Tin-kei Chester Tsang Wing-cheong
Honorary Treasurer Council Member

Francis Mok Gar-lon Francis Wong Wai-wah
Immediate Past President Council Member

Chak Shui-hang
Council Member

in alphabetical order of surnames

2015 Annual Employee Engagement Learning and
Conference and Employers' Development 
Committee Branding Committee Committee 
Barry Ip (Chairperson) David Li (Chairperson) Chester Tsang
Francis Wong K M Chan (Co-chairperson)
(Deputy Chairperson) Ophelia Ho Barry Ip
David Chan Anita Law (Co-chairperson)
Josiah Chan Eva Leung Eliza Chan
Dr Stingo Chan Prof Raymond So Iris Cheng
Theresa Chong Angel Tam Raymond Fok
Steve Chow Chester Tsang Roy Fung
Julita Leung Albert Wong Kenneth Kan
Andy Luk Elaine Wong Nelson Lai
Anthony Mak Wallance Ma
Francis Mok Employment-Related Anthony Mak
Felicity Sam Hong Kong Legislation Francis Wong
Andy Tsui and Issues Committee Virginia Choi, JP
Bob Xie Julita Leung (Advisor)
Peter Leung (Advisor) Nancy Chan Francis Mok (Advisor)
Kenneth Kan Andy Tsui (Advisor)
China and Alice Ip
International HRM Connie Lam Management
Committee Jennifer Tam Committee
Lawrence Hung Victoria Tam David Li (Chairperson)
(Co-chairperson) Albert Wong Margaret Cheng
Alan Tin Francis Wong Lawrence Hung
(Co-chairperson) Chris Wu Dave Li
Michael Chau Francis Mok
Liza Cheung HR Excellence Awards Elisa Wong
Linda Ho Committee
Kanny Ho Margaret Cheng IT Advisory Group
Elsie Hui (Chairperson) Roy Fung
Linclon Lam David Li (Co-chairperson)
Eva Lau Nancy Chan Dave Li
Wang Wen Yi Barry Ip (Co-chairperson)
Benjamin Wong Daisy Lee Lincoln Lam
Kay Yip Dave Li Alston Leung
Francis Mok Eric Ling
Editorial Committee Felix Siu Anthony Mak
Virginia Choi, JP Ada To
Chow Tung Shan Johnny Wan
Francis Wong
Tafline Yew

Membership Remuneration International 45
Evaluation Committee Advisory Board
Committee Senna Cheung Ernesto G. Espinosa,
David Li (Chairperson) (Co-chairperson) Past President,
Edmond Lai Alice Wong World Federation of
Nelson Lai (Co-chairperson) People Management
Angel Lee Judy Cheung Associations
John Lee Evelyn Chun Peter Wilson,
Francis Mok Winnie Fan Chairman of Australian
Johnny Wan Sunny Fong Human Resources
Ritchie Bent (Advisor) Brenda Fung Institute
Phil Smith (Advisor) Nelson Lai
Nelson Li Strategic Advisory
Professional Standards David Lui Board
Committee Elaine Wong Alfred Chan
David Li P O Mak (Advisor) Andrew Chan
(Co-chairperson) Prof Raymond So Sir CK Chow
Valent Ma (Academic Advisor) Kim Mak
(Co-chairperson)
Eliza Chan Research Committee Auditor
Li Kam Cheong Prof Randy Chiu Fung & Chan
Prof Randy Chiu (Chairperson)
Roy Fung Henry Chamberlain Honorary Legal
Lawrence Hung Dr Ronald Chung Advisor
Barry Ip Prof Elizabeth George Michael Downey
Connie Lam Vincent Lo  Hong Kong & China
Angel Lee Janet Man Employment Law
Julita Leung Ian St-Maurice Practice Group
Francis Mok Katherine Shiu Paul, Hastings,
Nancy Shum Dr Gilbert Wong Janofsky & Walker
Howard Sou Elisa Wong
Ada To Remark
Chester Tsang Programme Minimum Wage and Standard Work Hours Taskforce and MPF
Johnny Wan Endorsement Taskforce completed their tasks and were disbanded in 2015.
Sub-Committee
Julita Leung 2015
(Co-chairperson)
Johnny Wan
(Co-chairperson)
David Lui
Li Kam Cheong
(Advisor)

appendix 3 Validity for endorsement
Jul 2013 – Jun 2016
3 Jul 2013 – Jun 2016

Programmes Endorsed in 2015/2016 Academic Year Sep 2013 – Aug 2016
Mar 2014 – Feb 2017
Programme fully endorsed by HKIHRM Dec 2012- Nov 2015

Hong Kong Baptist University Sep 2013 – Aug 2016
• Master of Human Resources Management Apr 2014 – Mar 2017
• Bachelor of Commerce in Human Resources Management
Aug 2012 – Jul 2015
Lingnan University
• Bachelor of Business Administration (Honours) – Human Resource Management Stream Validity for endorsement
• Master of Science in Human Resource Management and Organisational Behaviour Sep 2013 – Aug 2016
Aug 2012 – Jul 2015
The Hong Kong Polytechnic University Mar 2013 – Feb 2016
• Bachelor of Business Administration (Honours) in Management
Mar 2012 – Feb 2015
The Hong Kong Polytechnic University - School of Professional Education & Executive
Development Sep 2014 – Aug 2017
• Bachelor of Arts (Honours) in Business (Human Resource Management) Nov 2014 – Oct 2017

The University of Hong Kong
• Bachelor of Business Administration – Human Resource Management Major

VTC - School for Higher and Professional Education
• BA (Hons) in Business and Human Resource Management

(in co-operation with Sheffield Hallam University, UK)

Programme partially endorsed by HKIHRM

Community College of City University
• Associate of Business Administration (Human Resources Management)

Hong Kong Baptist University - School of Continuing Education
• Advanced Diploma in Business (Training and Facilitation)

Hong Kong Institute of Vocational Education, Vocational Training Council
• Professional Diploma in Human Resource Management

The Hong Kong Polytechnic University - School of Professional Education & Executive
Development
• Bachelor of Arts (Honours) in Human Resource Management

(in co-operation with Northumbria University in UK)

Community College, Lingnan University
• Associate of Business Studies (Human Resources Management)

HKU School of Professional and Continuing Education
• Professional Diploma in Human Resource Management and Development

47

2015/2016

appendix 4

4

HKIHRM Representatives in External Committees

Organisation Committee HKIHRM Representative Term of Service

City University of Hong Kong Advisory Committee for Graduate Employment Lawrence Hung Aug 2009 – Dec 2015
Civil Service Bureau Advisory Committee on Post-service Employment of Civil Servants Francis Mok Jul 2013 – Jul 2015
Appeal Panel on Government's Voluntary Contributions under the
Continuing Professional Civil Service Provident Fund Scheme William Chan, BBS Aug 2011 – Aug 2015
Development Alliance Pensions Appeal Panel
Education Bureau Executive Council Chairperson William Chan, BBS Aug 2008 – Aug 2015
Virginia Choi, JP Since Jun 2004
Employees Retraining Board CDC-HKEAA Committee on Business, Accounting and Financial
Studies Lai Kam Tong Jan 2013 – Dec 2015
Hong Kong General Chamber Committee on Certification for Principalship
of Commerce Committee on Professional Development of Teachers and William Chan, BBS Jan 2014 – Dec 2016
Hong Kong Housing Principals William Chan, BBS Jun 2013 – May 2015
Authority Cross-Industry Training Advisory Committee for the Human
Hospital Authority Resource Management Wilfred Wong Jul 2014 – Dec 2016
Investor Education Centre Margaret Cheng
The Hong Kong Jockey Club Steering Committee on the Pilot Project on Strengthening Schools’ Since Feb 2012
Charities Trust Administration Management Randy Chiu
Labour Department Sub-committee on Operation and Governance under the David Li May 2013 – Apr 2015
Committee on Free Kindergarten Education
Occupational Safety & Health Honorary Advisor, ERB Manpower Developer Award Scheme Chester Tsang Apr 2015 – Mar 2017
Council Steering Committee for Evaluation on Language Training Francis Mok Dec 2015 – Nov 2017
Social Welfare Department Programmes
Manpower Committee William Chan, BBS Since Aug 2014
The Chinese University of
Hong Kong Finance Committee David Li Apr 2013 – Mar 2015
The Hong Kong Management Francis Wong
Association Finance Committee Dec 2012 – Nov 2016
Vocational Training Council Advisory Group David Li Nov 2015 – Dec 2017
Career and Life Adventure Planning for Youths (CLAP) Apr 2015 – Mar 2020
Francis Mok
Labour Advisory Board – Committee on Employment Services Jan 2015 – Dec 2016
Panel of Arbitrators William Chan, BBS Oct 2012 – Sep 2017
Sedentary Workers Safety & Health Committee Dave Li Apr 2010 – Mar 2016
David Li
Advisory Committee on Social Work Training and Manpower Planning Sep 2014 – Aug 2016
Lump Sum Grant Independent Complaints Handling Committee David Li Apr 2013 – Apr 2015
Career Development Board William Chan, BBS Aug 2013 – Jul 2015

Personnel Management Committee David Li Jul 2012 – Jul 2015

Higher Education Advisory Committee Albert Wong Oct 2015 – Sep 2017
Committee on Management and Supervisory Training Albert Wong Apr 2015 – Mar 2017
Margaret Cheng

Margaret Cheng

Margaret Cheng
David Li