Mercer and Talentnet Total Remuneration Survey (TRS) 2015 - Steadily rising
October 12, 2015
Talentnet – Mercer Total Remuneration Survey (TRS) 2015 have an impressive participant list of 520 well-established MNCs and leading local companies from 15 industries.
Talentnet – Mercer Total Remuneration Survey (TRS) 2015 have an impressive participant list of 520 well-established MNCs and leading local companies from 15 industries. High Tech, Consumer Goods, Chemical, Manufacturing, and Life Sciences industries are in the top list in term of number of participants to the survey. With remuneration data of 211,816 employees across Vietnam, Mercer – Talentnet TRS continues to be the largest and the most comprehensive salary report in Vietnam. for the last 16 years.
Ms. Hoa Nguyen, the leader of Mercer Remuneration Surveys & HR Consulting from Talentnet said: “Due to a lower inflation rate this year, companies have provided a lower salary increment compared to last year. However, due to a more optimistic business forecast for 2015-2016, companies plan to give a slightly higher salary increment for 2016”.
Looking into salary increases across industries, Chemicals, Life Sciences and Manufacturing are the top 3 industries providing the highest salary increase rate in the market, slightly above 10%. On the other hand, Oil & Mining, Financial Services (Non-Banking) and Hospitality (Hotel) report the lowest salary increase rate, around 6% to 8%.
Taking a look at at the pay differnce between local companies and MNCs, The pay difference for annual base salary is wider at management level (36%) as MNCs focus on offering higher salary to management positions to fairly compensate for their larger contribution. Even though paying lower than MNCs, local companies are willing to be more flexible in pay to compete with MNCs for key talents. Local companies can pay above their salary range and use long term incentive tools such as stock grant, stock option, or long term cash to attract talents.
The 2014 staff turnover rate of all industries is 12.7%, slightly higher than 2013 due to the gradual economy recovery. As usual, the average staff turnover rate of local companies was higher than MNCs (17.2% compared with 12.7%). For MNCs, the top 3 industries having high staff turnover rate are Retail (42.1%), Hospitality (22.3%), and Life Sciences (16.7%). Due to the nature of its industry and its tough business condition, Oil & Mining has the lowest staff turnover rate, at 6%.
Sales manager, senior sales executive and marketing manager continue to be in the top list of the hot jobs to recruit. The most difficult positions that companies have to retain are senior sales executive, sales manager and senior marketing executives.
The significant increase of 50% in the number of Vietnamese leading companies joining salary survey in 2015 indicates the growing need of local companies for an official and trustworthy market data. This reliable survey report will not only help them to benchmark their compensation with the market, but also will help them to maximise the use of their compensation budget, and to build an effective reward system in order to attract and retain talents. Participating in Mercer salary survey will also help companies to review and improve their internal grading system following a globally used methodology and to be updated with the latest market trends in rewards and HR management practices in Vietnam and in Asia Pacific Region.
To cope with AEC Integration removing borderss in talent exchange, both MNCs and large Vietnamese companies will need to improve their productivity, their systems and process. Among the systems that companies have to improve, HR management systems, especially the rewards system will be one of the most important ones. A professional HR and rewards system would definitely help the companies to improve its productivity and to maximise its workforce so that companies would be able to achieve its strategic business growth plan.