Talentnet And Mercer Total Remuneration Survey (TRS) 2016

Talentnet – Mercer Total Remuneration Survey (TRS) 2016 have a rich participant list of 557 well-established MNCs and leading local companies from 16 industries. High Tech, Consumer Goods, Chemical, Life Sciences, and Manufacturing industries are in the top list in terms of number of participants. With remuneration data of 244,526 employees across Vietnam, Talentnet – Mercer TRS continues to be the largest and the most comprehensive salary report in Vietnam.

Salary Increase Trend in Relation to Inflation and GDP Growth

Salary Increase Rate By Industry

Source: Talentnet and Mercer Total Remuneration Survey Report 2016

High Tech, Manufacturing, Life Sciences and Chemical are the top 4 industries providing the highest salary increase rate which are approximately 10%. On the other hand Education, Banking, and Oil & Mining reported the lowest salary increase rate at 7.5%, 6.7%, and 5.0% respectively.

Source: Talentnet and Mercer Total Remuneration Survey Report 2016

In 2016, the average salary offered by local companies is 31% lower than MNCs. The pay differences for annual base salary for different positions between MNCs and local enterprises are 20% (Para-professional), 30% (Professional) and 38% (Management). The gap is much wider at management level (63%) as multinational companies have been focusing on offering higher salary to management positions to fairly compensate for their larger contribution and scope of work. On the other hand, local companies are willing to be more flexible in pay to compete with MNCs for key talents. 

Due to a better forecast for business growth in 2016-2017, companies plan for a higher variable bonus payout compared to last year. Non- Banking, Agriculture and Banking industry are in the top list to provide a slightly higher variable bonus for 2015 performance compared to other industries at 22.5%, 22.1% and 19.9% respectively. Leading local companies continue offer higher variable bonus rates than MNCs.

The 2015 voluntary staff turnover rate of MNC companies is higher than 2014 due to the gradual economy recovery while the staff turnover rate of Local companies in 2015 is slightly lower than the 2014. The average voluntary staff turnover rate of local companies was higher than MNCs (17.0% compared with 13.7%). For MNCs, the top 3 industries having high turnover rate are Retail (39.2%), Life Sciences (17.0%), High Tech (16.2%) whereas Chemical and Oil & Mining industry have low turnover rate at 8.6% and 5.7% respectively. Sales manager, senior sales executive and marketing manager continue to be in the top list of hot jobs to recruit. The most difficult positions to retain are senior sales executive, sales manager and marketing manager.

Thanks to a globally standardized methodology and a collection of the most updated HR trends on the systems of reports, Mercer salary survey has shown its evidence as one of the trustworthy source for organizations to rely on.

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