Businesses Need Flexible Personnel Policies
Vietnam is one of a few countries to achieve positive GDP (3%) growth despite Covid-19. This indicates the attractiveness of Vietnam for foreign investors. Nonetheless, many businesses are still reserved to pay more for the HR budgets.
Challenges of the HR market
According to recent Talentnet-Mercer report on HR policies, many business are facing barriers to wage increase. Therefore, 34% of Vietnamese businesses do not increase employees' wage in 2020, 3% are expected to continue "freezing" wage in 2021. According to the report, 55% of the businesses don't have any recruitment plans for 2021, 5% of them are going to lay off employees to maintain business. Furthermore, Talentnet-Mercer report also shows that many workers are low in spirits due to pressure from the labor market.
Flexible personnel policies
According to Talentnet-Mercer representative, businesses need to plan business roadmap & financial management ahead. Strategies for 2021 C&B can be planned right now to prevent budget deficit when challenges arise. In addition, businesses should keep up with the trends, information on compensation, salary, benefits & rewards to ensure internal equity & external competitiveness.