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May 23, 2019
The scope, speed and impact of the Fourth Industrial Revolution is disrupting almost every industry globally. The...
The scope, speed and impact of the Fourth Industrial Revolution is disrupting almost every industry globally. The emerging market of Vietnam also puts huge amount of pressure on HR’s plate, pushing those in charge to transform and be more strategically business-driven. Still there, however, are the massive burden that stymies the progress, which can be seen as “same same but different” roadblocks for 4.0 HR.
Same same issues
From long-established giants, growing mediums to market entries, businesses all desire to downsize the trial-and-error or non revenue-generating activities when it comes to 4.0 HR and business. In order to do that, HR must be in the front row of getting the right people in the right jobs in the right places at the right time and at the right cost. However, from the start point, HR has been carrying a burden of operation issues on the back, while struggling to keep up with the development of technology and digital. According to the 2019 Pulse Mercer Survey, many find themselves bogged down in too many inquiries at the same time, including:
- Insufficient/ Incomplete infrastructure Businesses are mainly concerned about their infrastructure (55%) in the process of implementing digital HR. Despite the fast advancements, systems development and technology are still relatively costly to implement.
- Employees capability is still one of business strategic directions. One of those is how human capital department can manage to make sure employee’s ability to perform meets required standards. It’s not only about employee skill but aptitude, health or many other physical or mental quality that an HR need to care about.
- Employees’ resistance to change. Of course when talking about change, people will play the role of key lead, starting from within. However, one of the most baffling and recalcitrant of the problems which business often faces is employee resistance to change during the transformation time.
- Cultural organization can affect the way people and employees interact with each other, with clients and many stakeholders. Since it encompasses values and behaviors, those businesses with opinionated culture could find themselves stymied along the way. .
- Workforce Scarcity the shortage in workforce is also one of critical point that HR needs to tackle. HR leaders need to figure out more effective strategies in communicating and having their talent pool ready if they expect to meet the challenges created by that brain drain.
- Miscommunications: Although knowing the paramount importance of mutual understanding and communication, many corporates agree their information easily fall into a standstill and usually unattractively tailored and told among different individuals. Even in many cases, important messages never goes beyond strategic meeting, causing inconsistency in implementation.
Source: 2018 Remuneration Survey – Mercer
But difference in Vietnam context
While the world has same issues when talking about the HR role in business transformation, iVietnam – as an emerging market, is facing unique problems that local HR experts need to tackle.
Scarcity of Executive Level
Although Vietnam has not much difference in base salary of para-professionals and individual contributor comparing to other country in Southeast Asia. But coming to the executive level, there is a significant change in compensation. Vietnam takes the highest point in term of salary base for executive jobs. This indicates the high demand of management level employees in Vietnam compared to other countries in the region. If this issue continues in upcoming years, businesses in Vietnam might encounter more hardship in strategy planning and business leadership.
Obstacles that weight HR efficiency down
Vietnam is the 77th most competitive nation in the world out of 140 countries, based on the ranking from 2018 edition of the Global Competitiveness Report published by the World Economic Forum. However, with certain low-point competences including Innovation capacity (33/100), labor market (56/100), Infrastructure (65/100) , Vietnam still has lower capacity to become a great player in the transformation run.
Together with those tackles in macro economy, the journey of HR transformation in Vietnam has been challenged in recent years. From a survey conducted by Mercer in 2018, one of the big challenges of 4.0 HR is not just to think of themselves as traditional human-centric people, but more as an extension of the revenue-generating activities of the business. However, to become a strategic digital partner, the burden of operation need to solve before completely concentrate on their strategy. One of the most pervasive HR pain points is the colossal amount of time and effort spent on administrative work. Weighted down by these shackles, many HR professionals cannot allocate their time to tackle these challenges, and end up unable to compete in the digital transformation.
Source: 2018 Remuneration Survey – Mercer
First thing first!
In this 4.0 industry, the world of outstanding customer experience, data and analytic driven services desires a comprehensive collaboration in which innovation and disruption are taking place.
To be a strategic partner with business and concentrate merely on their transformation or digital HR, almost big companies choose to outsource their HR. With ready-to-use platform offered from HR outsourcing vendor or a built-in software, businesses can cut down their time spent on administration work, and at the same time easily access real-time and accurate data.
Also, by using HR outsourcing service, companies can curate optimal remuneration strategies, save more time in their talent acquisition process, training and development activities…which will directly contribute to to a high-performance culture. When all common tasks are already covered, businesses can enjoy more time on business development activities, human capital planning and strategies.
Understand that point, Talentnet provide full HR Service which helps business organizations speed up their business. Our commitment is to provide excellent services to clients with a high level of SECURITY & CONFIDENTIALITY, 99% ACCURACY, 100% COMPLIANCE with internal standard from ADP streamlines. It’s not about payroll service only but a full HR service system that release HR from operation function to focus on strategic plan.
With over 400 MNCs across industries in our client profile, Talentnet provides payroll service includes timesheet, data system solutions, internal management reports and HR compliance consultancy together with mass recruitment, staffing and employment service.