What is the cost to retain workers?

Created 28 December 2017
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The average pay from Vietnamese companies is 29 percent lower than multinationals.

vietnam economy, business news, vn news, vietnamnet bridge, english news, Vietnam news, news Vietnam, vietnamnet news, vn news, Vietnam net news, Vietnam latest news, Vietnam breaking news, manpower, IT, labor cost

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A shortage of manpower, especially skilled workers, is the common problem Vietnamese businesses face. It is expected to be more serious in the future.

A report says Vietnam would need 400,000 workers in the IT industry by 2020, or 80,000 a year. 

Meanwhile, only 32,000 university graduates are produced every year.

“My strategy is retaining talent at the highest reasonable cost,” said Nguyen Duc Tai, chair of The Gioi Di Dong, the largest mobile phone distribution chain. 

A labor expert, relating The Gioi Di Dong’s story and Tai’s statement, said that multinationals do not regret paying more to recruit and retain talents.

A recent survey by Talentnet and Mercer found that the technology industry had the highest pay rise with the average pay to workers up by 10 percent in 2017. 

The other two industries in the top 3 are pharmacy and chemistry, 9.4 percent and 9 percent, respectively.

Oil & gas is the industry which offers the lowest pay rise, only 4.6 percent, but has the lowest number of workers giving up jobs, accounting for 5.3 percent. 

A shortage of manpower, especially skilled workers, is the common problem Vietnamese businesses face. It is expected to be more serious in the future.

The pay of $500-1,000 a month to workers and $10,000 to key personnel explains why workers in the industry do not resign from their posts.

Officers in the banking sector also are satisfied with their incomes. VP Bank spent VND700 billion on salaries and allowances in the first quarter alone. 

Meanwhile, the bank’s number of officers has increased by 500, while VIB Bank has employed an additional 376 workers and Sacombank 200.

Education is leading among the sectors with the lowest pay rise (7.0 percent) and lowest bonus (9.6 percent). Eighty percent of the budget allocated by the state to the education sector is used to pay to teachers and officers.

A survey carried out within the framework of a national scientific research program found that a teacher with 13-year service length receives VND3.5 million a month in salary and allowance a month. This explains why many teachers have given up teaching while high school graduates don’t want to go to pedagogical schools.

However, the teachers of private and international schools can receive more thanks to the competition between the schools and state-owned school system. Nhip Cau Dau Tu reported that the average pay to teachers at Vietnam-Australia School in HCMC is VND10 million.

Talentnet has found that retail is the industry with the highest number of workers who had resigned from their previous jobs (32 percent), followed by real estate (18.8 percent) and consumer goods (17.3 percent). 

The high percentage of workers who quit their previous jobs is attributed to the arrival of foreign retail chains, which are running big recruitment campaigns.

 

Source: Thanh Mai - Bridge

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