A Chief Human Resources Officer to build the organisation behind the growth

A fractional CHRO is a senior HR leader who provides strategic people management to your business on a part-time basis. Hong Kong SMEs need fractional CHROs because people cost and compliance have grown more complex - the MPF regime, the abolition of MPF offsetting against Severance and Long Service Payments from 1 May 2025, Employment Ordinance obligations, and acute specialist talent shortages all require expert navigation. Most SMEs cannot justify a full-time HR director but face real compliance risk and talent challenges without one.

Since 1 May 2025 employers can no longer use MPF contributions to offset post-transition Severance Payment or Long Service Payment liability. A 25-year subsidy scheme (2025-2050) lets you claim up to HK$500,000 per year toward these costs, but the change has materially raised the long-tail cost of permanent senior headcount. Our fractional CHROs model the true cost of permanent versus fractional engagement, restructure provisions for the new regime, and ensure you claim the subsidy you are entitled to.

Employers must contribute 5% of an employee's relevant monthly income to the Mandatory Provident Fund, capped at HK$1,500 per month on income at or above HK$30,000. There is no end-of-service gratuity in Hong Kong. Our fractional CHROs put correct MPF enrolment, contribution and record-keeping processes in place - keeping you compliant with the Mandatory Provident Fund Schemes Authority and avoiding penalties.

Our fractional CHROs help with: Employment Ordinance compliance and policy development, MPF administration and contribution accuracy, severance and long-service payment provisioning under the post-2025 regime, employee retention strategies, recruitment and hiring process improvement including Top Talent Pass Scheme access, performance management systems, and building HR infrastructure that scales with your business.

Consider a fractional CHRO when your business has 10 or more employees and growing, faces high turnover or recruitment challenges for scarce specialist roles, has no formal HR policies or procedures, needs to rework people cost for the post-2025 severance and long-service liability, is preparing for an HKEX listing that demands governance discipline, or when the founder is spending more than five hours per week on people management issues.

HR consultants typically work on specific projects like policy creation or compliance audits. A fractional CHRO provides ongoing strategic leadership, becoming part of your team to align people strategy with business growth. They take ownership of culture, employee engagement, and organisational development while handling day-to-day HR challenges - not just delivering reports and recommendations.

Yes. Since the abolition of MPF offsetting on 1 May 2025, Severance and Long Service Payment liability can no longer be offset with MPF contributions. Our fractional CHROs ensure your provisions and contracts reflect the new regime, your workforce planning accounts for the true cost of permanent headcount, and you are claiming the 2025-2050 subsidy of up to HK$500,000 per year - keeping you compliant while managing the commercial impact.

Our fractional CHROs integrate with your business by working closely with founders on people strategy, providing training and guidance to managers handling day-to-day people issues, establishing clear processes and communication channels, and being available for urgent employee relations matters. The goal is to professionalise your people management without bureaucracy - practical systems that work for your stage and size.