April 22, 2020 – Changes are inevitable, and things will soon resume their normal pace. Businesses need to be prepared to cope with the new normal.
Our long-awaited TRG Talk: Talent Management on the topic “Recruitment and Salary trends in 2020” is finally live to address some of the most pressing challenges HR professionals are facing today.
Due to COVID-19 and nationwide social distancing orders, our TRG Talk: Talent Management this April is hosted virtually instead of at our usual hangout PJ’s Coffee.
This month Talk focuses on analysing COVID-19 impacts on Vietnam’s labour market and employees’ salary. The Talk also welcomes back one of our favourite speakers, Andree Mangels, General Director of Adecco Malaysia and Vietnam.
Recruitment demand changes in Vietnam
Businesses in every industry are experiencing unprecedented disruptions and tremendous uncertainty. Hospitality, tourism, aviation along with manufacturing and exporting are industries that receive the heaviest blow. It is predicted that over 250,000 workers would seek unemployment benefits while 2 million people would lose their jobs due to the pandemic.
On the end of the spectrum, healthcare, FMCG, and e-commerce are experiencing a surge in recruitment demands. According to Andree, companies specialised in medical masks and hand sanitiser recruit more labour to ramp up their production. Several businesses also shifted to produce and sale handwashing products to accommodate the current market demand.
Andree then further comments that certain jobs are more sought-after than others, particularly technical positions in e-commerce, information technology, and fintech firms.
Infographic: 10 most valuable technical skills
Vietnam salary guide 2020
According to Andree, salary for management positions in “winning industries” (i.e., industries that experience minimal impact from COVID-19) has been gradually increasing by 15-20%.
Tech-savvy companies will continue to recruit more technical talents. Software engineer and software architect with extensive experience in AI, DevOps, and Big Data are in high demand. Salary for these positions can reach up to 100 million VND per month.
Skilled Sales Managers and Digital Marketers are also in demand as businesses start executing digital marketing and sales initiatives to introduce products to the market faster.
More insights on Vietnam’s labour market, salary, and high-demand skills across 10 key industries can be found in Adecco’s Vietnam Salary Guide 2020.
Prepare businesses for the world post-crisis
Andree advises participants to gradually start resuming normal operations now. However, companies should maintain physical distancing and encourage regular personal and office hygiene to ensure all employees are healthy.
The majority of our participants concern about pay raises, payroll cut, and whether the WFH phenomenon has a direct impact on employees’ salary and engagement. Andree addresses these concerns by stating that there are struggling businesses, particularly small companies and companies belong to the HORECA sector. Therefore, delayed payments, payroll cuts, and layoffs are unavoidable.
Remote workers or professionals that were asked to WFH during the outbreak may also experience lower income as their companies’ performance and profitability drop.
Andree advises participants to embrace technologies. The right technologies can help companies to automate manual tasks and keep team members engaged during this social distancing time. Technology can also aid various HR processes, such as enabling recruiters to conduct interviews and onboarding virtually.
What also critical is ensuring employees are aware of the newly available solutions that can aid their functions, and they are properly trained on how to take advantage of them.