PremiumSoft, a Hong Kong-based software company, relied heavily on its creative workforce to drive new product delivery, manage product upgrades, and incorporate customer feedback in its products. As founder and Director of Software Development, the core responsibility of Ken Lin was setting up strategic goals for the organization and identifying new products and opportunities for innovation to ensure the company's growth. In addition to this role, Ken had been the company's human resource (HR) manager since its founding. He alone handled all the HR-related activities including recruiting and retaining talent, and ensuring a healthy work environment. This role, however, had become more challenging over time. Demand for good developers was at an all-time high, and just across the border, Chinese companies such as Alibaba and Tencent were willing to provide Silicon Valley-like salaries and benefits to attract developers.

The case examines two major transitions currently taking place in Hong Kong-the transformation into a knowledge-based economy (KBE) and the replacement of the Gen Xers by the Gen Ys in the workplace. It sheds light on the skills that workers require and the strategies that government and industries should adopt to suitably develop a KBE. In doing so, the case elaborates on the policy initiatives Hong Kong has undertaken to create the desired human capital and to leverage innovation and technology across knowledge-based industries. It tabulates the key statistics and trends that enable manpower planning and projections. While the case presents issues arising in the workplace due to intergenerational differences between Gen X and Gen Y, it questions how Gen Ys can effectively replace the retiring baby boomers and aging Gen X workers. It aims to arouse the attention of human resource (HR) managers in coming up with the appropriate strategies to incorporate and motivate the Gen Ys to fill the gap. In the end, can both transitions be successful and sustained? Can the new generation help transform Hong Kong into a KBE?