The Model To Offer Talent A Competitive Advantage
May 22, 2023
Despite predictions of a gloomy market outlook at the end of 2022 and the beginning of 2023, the Vietnamese labor market is still experiencing optimistic changes. Both workers and businesses need to "rise up" to adapt to these new developments.
1. The highlights in the labor market outlook
In early 2023, despite being still affected by waves of mass layoffs and economic fluctuations, FDI in Vietnam in January reached a positive number. Compared to the same period last year, although the total registered capital decreased by nearly 20%, the number of projects still reached a 48.5% increase. Investment projects also come from many diverse fields, promising new opportunities for cooperation and work.
Along with positive changes in the economy, the labor market also shows signs of recovery after mass layoffs. According to the Ho Chi Minh City Labor Forecasting and Information Center, in 2023, the city needs about 300,000 – 320,000 workers, and the demand for labor in Q1 is also increasing compared to Q4 of last year, reaching 72,000 – 79,000 workers (Q4/2022: 69,500 – 77,100 workers). Recruitment demand in Hanoi also reaches 100,000 – 120,000 people.
After a series of events and layoffs by large companies in Vietnam, the number of freelancers has increased, including many high-quality personnel. FDI enterprises can completely look to this group of personnel to supplement their current resources.
The increase in recruitment demand in Q1/2023 compared to the end of last year, especially amidst the fluctuations of layoffs and general economic difficulties, can be seen as a positive signal for the labor market. The flexibility and openness of both businesses and laborers to adapt and embrace new opportunities in business models and career prospects are extremely necessary.
For foreign enterprises that have just experienced a period of personnel upheaval, strengthening internal resources is crucial. There are three changes that businesses can consider to quickly reorganize their teams and improve employee morale: Circular management model, Outsourcing or Technology application, and Total wellbeing care plan.
Activating the circular management model helps optimize productivity while the internal workforce is being restructured. Management can also promote different skills and build a common skill set for employees. However, while the internal team is still being restructured, human resources outsourcing, or using technology is a temporary but effective resource solution.
In parallel, businesses need to prioritize the overall health of their employees because this is a crucial factor in creating a healthy business. Employees are the first to experience pressure from disruptions and are responsible for implementing solutions to help the business grow.
For FDI enterprises that were not affected by the layoff wave, this is the time to leverage their advantages to attract talents in the free labor market. Two factors that help companies score points are: The comprehensive recruitment process and the transparent benefits scheme.
According to reports from SEEK, BGC, and The Network, over 50% of Southeast Asian workers reject job offers if the company does not have a clear recruitment process. Therefore, the clearer the recruitment process is, from job application, interview process to onboarding, the easier it is for the company to attract potential candidates.
Benefits policies are also something that companies need to pay attention to. According to a report by Mercer – Talentnet, conducted at the end of 2022, salary is not the most important factor, but it is the first condition that workers consider. Companies need to have a more competitive salary and bonus strategy and may need to compromise and supplement certain benefits to attract freelancer talents. However, companies still need to think about comprehensive salary, bonus, and benefits policies that are standardized for all employees based on common criteria and performance, to avoid creating imbalances in benefits among employees and inadvertently affecting the overall work environment.
2. The “ABCDE” model
For workers who are directly affected by major events, the “ABCDE” model offers them a competitive advantage, which includes:
A – Agility: the ability to learn, unlearn and seize opportunities. This is one of the important factors determining personal growth and development. B – Business: getting more knowledge about your job and the industry, to see a bigger picture of the market as well as competitors.
C – Connection: expanding connections with partners both domestically and internationally to create an ecosystem and maximize their own network effect.
D – Digitalization: equipping and upgrading digital skills, earn yourself a competitive advantage in the job market of Industry 4.0.
E – Empathy: the ability to understand oneself and others, establish true and empathetic connections with one another. This helps to enhance both relationships with your colleagues and drive impactful performance.
An employee with the above characteristics will be confident in experiencing and learning, ready to step out of their comfort zone, and become a potential candidate with unique values.
The job market in 2023 will thrive, but in order to succeed, both workers and businesses need to prepare themselves mentally and resourcefully to be ready when opportunities come.
Source: Vietnam Investment Review