Both multinationals and major local companies have increased salaries bynearly the same rate this year, a survey by Mercer, a global providerof human resource services and its associate in Vietnam, TalentnetCorporation, has found.
While the former pays 10.4 percent higher, it is 10.5 percent for domestic giants.
HoaNguyen, leader of Mercer Remuneration Surveys and Human ResourceConsulting at Talentnet, speaking at a seminar in Ho Chi Minh City onOctober 6, said with not much change in business conditions and lowerinflation forecast, the salary increase, nearly the same as last year,is expected to be at the same rate next year too.
Thepharmaceutical, consumer goods, and chemicals industries were the topthree in terms of salary hikes – at around 11 percent — since they arenot being impacted as much as others by the economic situation.
Real estate and banking saw the lowest salary increases of 8.4 percent and 8.9 percent due to difficult business conditions.
Thesurvey pointed out that the difference in base salaries paid bymultinational and Vietnamese companies remained high at 30 percent, shesaid, adding that the difference gradually widen from professional toexecutive levels.
To attract talent from multinationals, localfirms are willing at this juncture to pay out of their salary range forhigh-level positions.
However, it would take a number of years before big local companies' pay catches up with multinational companies', Hoa said.
Fornow, to attract, motivate, and retain the best employees, localcompanies often use long-term incentives such as stock offers and stockoptions.
When it came to paying bonuses, banking and oil andmining topped (22.7 percent and 17.7 percent relatively) with big localcompanies paying more than multinationals.
Trading and technology were the two sectors with the lowest bonuses.
Theemployee turnover rate last year decreased by 2-3 percent, withmultinationals having lower rates than local companies (12.2 percentversus 17.1 percent), she said.
Multinational companies have in fact had the lowest rate for the last five years.
The highest turnover was in pharmaceuticals, consumer goods, and insurance due to a shortage of talent.
Thejobs of sales managers, sales executives, and marketing managersremained, as they have for long, the hottest, with companies havingdifficulty recruiting personnel and keeping them for long.
Duringperiods of tough market conditions, sales managers are more importantto businesses than marketing specialists since they directly bringrevenues to the company.
A total of 473 multinational and localcompanies with more than 164,790 employees in various industries tookpart in the survey.
Last year's survey had polled 418 companies.
Theincrease in the number of Vietnamese companies taking part in thesurvey indicates their more serious attitude towards remuneration anddesire to improve their salary budget more effectively and know exactlyhow competitive their salaries are compared to the market.
GodelieveKroonenberg, Mercer's market business leader, ASEAN InformationSolutions, said more flexibility in benefits, flexibility in pay mix,and more tailored communications with employees could be key toretaining employees for Vietnamese firms.-VNA
While the former pays 10.4 percent higher, it is 10.5 percent for domestic giants.
HoaNguyen, leader of Mercer Remuneration Surveys and Human ResourceConsulting at Talentnet, speaking at a seminar in Ho Chi Minh City onOctober 6, said with not much change in business conditions and lowerinflation forecast, the salary increase, nearly the same as last year,is expected to be at the same rate next year too.
Thepharmaceutical, consumer goods, and chemicals industries were the topthree in terms of salary hikes – at around 11 percent — since they arenot being impacted as much as others by the economic situation.
Real estate and banking saw the lowest salary increases of 8.4 percent and 8.9 percent due to difficult business conditions.
Thesurvey pointed out that the difference in base salaries paid bymultinational and Vietnamese companies remained high at 30 percent, shesaid, adding that the difference gradually widen from professional toexecutive levels.
To attract talent from multinationals, localfirms are willing at this juncture to pay out of their salary range forhigh-level positions.
However, it would take a number of years before big local companies' pay catches up with multinational companies', Hoa said.
Fornow, to attract, motivate, and retain the best employees, localcompanies often use long-term incentives such as stock offers and stockoptions.
When it came to paying bonuses, banking and oil andmining topped (22.7 percent and 17.7 percent relatively) with big localcompanies paying more than multinationals.
Trading and technology were the two sectors with the lowest bonuses.
Theemployee turnover rate last year decreased by 2-3 percent, withmultinationals having lower rates than local companies (12.2 percentversus 17.1 percent), she said.
Multinational companies have in fact had the lowest rate for the last five years.
The highest turnover was in pharmaceuticals, consumer goods, and insurance due to a shortage of talent.
Thejobs of sales managers, sales executives, and marketing managersremained, as they have for long, the hottest, with companies havingdifficulty recruiting personnel and keeping them for long.
Duringperiods of tough market conditions, sales managers are more importantto businesses than marketing specialists since they directly bringrevenues to the company.
A total of 473 multinational and localcompanies with more than 164,790 employees in various industries tookpart in the survey.
Last year's survey had polled 418 companies.
Theincrease in the number of Vietnamese companies taking part in thesurvey indicates their more serious attitude towards remuneration anddesire to improve their salary budget more effectively and know exactlyhow competitive their salaries are compared to the market.
GodelieveKroonenberg, Mercer's market business leader, ASEAN InformationSolutions, said more flexibility in benefits, flexibility in pay mix,and more tailored communications with employees could be key toretaining employees for Vietnamese firms.-VNA
