Navigos Group, one of Vietnam’s leading recruitment providers, has just published a report - “Talent Guide 2021: Market, Challenges, Opportunities & Salary Range”.
This is the first Navigos Group’s report that covers opportunities and challenges in employment and recruitment, and the salary levels of candidates in about 35 industries in the market. The report is published based on the analysis of the results from a survey of nearly 6.000 candidates in the Navigos Group database.
I. Salary, bonus and benefits for employees: Overview 2020
The criterion ‘Salary, bonus and welfare’ is the most important factor affecting the employees’ decision to switch a job
74% of respondents said that the criterion ‘salary, bonus and welfare’ is the most important factor they consider when switching their jobs, followed by promotion opportunities and training and development opportunities at 37% and 34% respectively.
• 13th-month salary is now the most significant benefit of employees
The 13th-month salary is now first place among benefits that employees receive with 82% of respondents voting for it, followed by health and medical care benefits and travel, meal and cell phone allowances at 51% and 31% respectively.
• Employees’ growing expectations about salary, bonuses and welfare are a challenge for companies in acquiring and retaining talents.
Salary, bonus and welfare are for attracting employees, but also, especially the better ones, the causes for their leaving. Therefore, the most important factor leading to the employees’ satisfaction with their current job is salary, bonus and welfare with 45% of votes from respondents. Working location and job stability takes the second and the third place in the list at 43% for each.
Employees’ expectations about salary, bonus and welfare, is a decisive factor for their job satisfaction and looking for a new job. Hence, this poses challenges to businesses in their recruitment and retention plan.
1. Factors affecting employees’ job satisfaction
• Only 30% of workers were satisfied with the current benefits
When asked about the satisfaction with their current benefits, only 30% of respondents are satisfied at a distinct level. To be more specific, 24% are fairly satisfied, and only 6% are completely satisfied.
Nearly 45% of employees rate the current benefits “Normal”. ¼ show different levels of their dissatisfaction as 20% and 5% are dissatisfied and completely dissatisfied respectively.
According to statistics, the satisfaction level with benefits varied among the middle group (Manager, Supervisor) and senior group (Associate Director, Director, C-level). Accordingly, when asked about the satisfaction level, only ¼ of the middle group is satisfied with the current benefits. The figure for the senior group, however, is nearly 50%.
• The level of satisfaction was in direct proportion to the working position (with experience and management work)
It is pointed out from the survey that the higher the position is, the higher the satisfaction level is. Accordingly, the level of satisfaction is 21% among fresh graduates, 26% among employees having more than two-year experience, nearly 30% among Supervisors/Group leaders, 35% among Deputy Heads and Heads of Department, and nearly 50% among Directors/ Associate Directors and C-level.
• 53% of employees will look for a new job in the next 3 – 6 months
When asked whether candidates are looking for a new job or not, 53% of respondents said they would seek for a job in the next 3 – 6 months; 13% would find a job within the next 12 months.
• Differences among candidates from distinct working positions when switching their jobs
It is pointed out from the survey that “Salary, bonuses and benefits” is always the most important factor candidates at all positions consider when switching their jobs. However, there were some differences among other factors. For example, “Senior group”, including Directors, C-level, pay more attention to distinct features than other groups. For the group of “Fresh graduates”, “Experienced employees”, “Supervisors/Managers”, “Heads of department”, the top three factors are Salary, bonus and benefits, Promotion opportunities and Training opportunities.
For Associate Directors and Directors, the three most important factors are Salary, bonus and benefits, Company culture and Management style.
Meanwhile, Salary, bonus and benefits, Work-life balance and Management style are what C-level executives concern most.
II. Expectations about salary in 2021
• 43% of respondents never asked for a pay raise in 2020
It can be seen from the survey table that 43% of respondents have never asked for a pay raise while 42% still got one from less than 3% to more than 20% in 2020.
• 61% of employees are expected to get a pay raise in 2021
Employees show high expectations about salary increase in 2021. When being asked about pay raise or cut in their enterprises, 10% of respondents think there will be a less than 3% – more than 20% reduction in their salary, 18% suppose they will get the same amount of salary, 61% expect a from 3% to more than 20% pay raise.
• Middle managers ask for a pay raise most frequently
When surveyed about asking for a pay rise, the group of middle employees (including Supervisors/Managers) appear to be the most active in asking for a pay raise. Accordingly, nearly 65% of them ask for a pay raise with different rates.
In other groups, including Associate Directors/Directors, Deputy Heads/Heads of Departments, C-level, there are 50% asking for a pay raise. Fresh graduates rarely ask for a pay raise and 44% never ask for a pay raise.
III. Influences of COVID-19 and economic prospects of Vietnam through candidate’s perspective
• 26% of employees experience pay cuts
It can be seen from the survey table that 26% of respondents experience pay cuts from 10% to 50% when compared to their salary before the COVID-19. Meanwhile, 74% still enjoy the same amount of salary as the one they shared in this survey table.
• Senior group is most influenced by the COVID-19
The senior group, namely the Executive Board, C-level, is most affected by the COVID-19.
Accordingly, 40% of respondents belonging to this group go through salary reduction at many different rates. The group of Director/Associate Director is at the second place with 32% suffering pay cuts.
• More than 50% of workers are optimistic about Vietnam’s economic prospects
Although the survey was conducted during the COVID-19, more than 50% of respondents still show some optimism about the economic prospects of Vietnam. Accordingly, 17% think the economy will grow strongly, 35% suppose it will continue to stabilize, 31% say there will be a decline and 17% have no comment.
• Optimism about economic growth is in inverse proportion to respondents’ working position
The optimism about economic growth is dramatically different among respondents with distinct working positions. To be more specific, the optimism is inversely proportional to the positions, i.e. the higher the respondents’ position, the less optimistic.
Accordingly, nearly 58% of fresh graduates are optimistic about Vietnam’s economic stability or growth. The figures in Team Leader/Supervisor group and Heads/ Deputy Heads of department are 53% and 50% respectively.
At C-level, 51% think the economy will stabilize and grow, but nearly 35% say it will decline. 38% in Director/ Associate Director group; 37% of Head/Deputy head of department also agree on this decline. Only 30% Team leader/ Supervisor group and 22% of the fresh graduate group share the same idea.
IV. Navigos Group Recommendations
The release of this 2021 HR market report by Navigos Group aims to help businesses become more competitive in acquiring and retaining excellent employees. Besides, businesses also have the basis to adjust the salary based on the market reality. In addition, this report can also help businesses understand more about the important factors of candidates when they join or leave the company.
• Improving and building a competitive salary and bonus based on the market reality and the business potential.
• Improving and building social welfare with practical values for employees.
• Understanding middle and senior management groups to build suitable salary, bonus, and welfare mechanisms for each target group.
• Developing and improving career roadmap for staffs, thereby building mechanisms to increase salary and bonus appropriately for each target group.
To read the Navigos Survey ... CLICK HERE!!