Highlights of 2023 Talentnet-Mercer Total Remuneration Survey Report
October 20, 2023
On October 19th, 2023, Talentnet - the exclusive partner of Mercer at Vietnam, published an exclusive report on the results of Talentnet-Mercer Total Remuneration Survey Report and Asia-Pacific Talent and Rewards Trends within the framework of day 2 of The Makeover.
Click here to review highlights of The Makeover – Day 01 “Crafting Change”.
Coming to this event, Talentnet and Mercer bring a panorama of talent trends in the Asia-Pacific market along with in-depth perspectives on the current situation of salaries, bonuses, and benefits in the Vietnamese market.
Speakers at the event include:
- Ms. Godelieve van Dooren – South Asia CEO, Mercer Marsh McLennan
- Ms. Nguyen Thi Quynh Phuong – Director of HR Consulting Business, Talentnet Corporation
- Ms. Le Phuong Quynh Nhu – Financial Services and FMCG Industry Leader, Talentnet Corporation
- Mr. Phan Duy Thien – Associate Principal, Real Estates, High Tech Industry Leader, Talentnet Corporation
1. Highlights of The Makeover – Day 02
One of the most notable highlights is that in 2023, talent shortages reach a new 16-year high. Ms. Goodelieve van Dooren pointed out that Asia still manages to hire the right talents, yet retaining talent remains a major challenge for the region. From then, Ms. Goodelieve pointed out that effective EVPs (Employee Value Proposition) have become a common part of organizations’ strategy, along with compensation and benefits policies that are timely with employee needs.
The 2023 survey recorded 30 businesses increase in the number of participants compared to 2022, reaching a total of 638 businesses. The number of positions and workers participating in the survey also increased dramatically, with more than 3,439 positions (71 positions increase) coming from more than 544,005 workers (60,395 workers increase) across Vietnam.
2.1. Gen Z want to have a pay rise every 2 years but resign after 1.7 years only
Ms. Nguyen Thi Quynh Phuong showed that the current labor structure of businesses is changing dramatically with the increasing appearance of Generation Y2 and Z in the workforce. These generations of workers also bring new working philosophies and needs that businesses need to pay attention to. In particular, Gen Z clearly shows the desire to have a pay rise after 2 years, which is shorter than the 3 years norm of other generations. However, the average seniority of this generation is only 1.7 years. Therefore, depending on the strategy, businesses should adjust policies to be more effective in retaining Gen Z talents.
2.2 Lower voluntary staff turnover rate in Vietnamese businesses
With Vietnam’s economy recording the second lowest growth rate since 2011 in the first 6 months of 2023, workers tend to stick with their current jobs, leading to a decrease in the voluntary turnover rate. In 2022, the voluntary staff turnover rate was 22.1% in local companies and 15.8% in MNCs. By the first half of 2023, this figure was 10.4% in local companies and 6.5% in MNCs, down 1.5% over the same period last year.
2.3. Only 1% of businesses plan to reduce the number of employees in the future
Companies have become more cautious in hiring decisions in the face of difficult economic conditions, with the majority of them forecasting no change to their headcounts (39%), compared to last year when adding staff was the dominant decision. However, Ms. Phuong also pointed out that only 1% of businesses intend to reduce staff, which are those from the Finance – Banking, Real Estate, High-tech, and Manufacturing industry.
2.4. Salary budget increase rate of local companies is higher than MNCs
In 2023, the salary budget increase rate of Vietnamese local businesses reached 7.9%, a slight increase of 0.2% compared to 2022. The similar index for MNCs is 7.1%. It is predicted that with the current situation of the economy, the salary increase budget of local businesses will decrease to 6.9% in 2024, while MNCs will still maintain a stable salary increase budget.
2.5. High-Tech, Trading, and Renewable Energy have highest pay growth
Most industries have a reduced salary increase rate compared to 2022. In particular, the industries with the lowest salary increase rate include FS – Non Banking (5.1%), Real Estate (5.3% ), Oil & Mining (5.4%). Renewable Energy has stable growth which results in a stable salary increase rate of 7.7%. High-tech industry still has the highest salary increase rate in 2023 with 8.3%, followed by Trading with 7.7%.
2023 Talentnet – Mercer Total Remuneration Survey Report continues to be the most trusted salary survey which provides the largest and most reliable database in Vietnam. helping local businesses and MNCs to effectively develop policies related to remuneration that are timely to the current economic situation to attract and retain talents.