War on high-end recruitment market

High-level personnel are in short supply while demand is constantly increasing as overseas factories move to Vietnam, developed e-commerce or start-up companies have been born ... For the Vietnamese labor market, it is very "hot" with excess salary.

The start-up companies have been born ... making the Vietnamese labor market very hot with unbelievable salary levels. Photo: Thanh Hoa

Salary increases from 60 to 70% to invite

The 2019 salary survey report recently published by Senior Human Resource Consulting and Recruitment Company Robert Walters shows that, in all areas, senior personnel positions are being sought. The reason is that there are more "new people" entering the market (in the group of fast moving consumer goods); manufacturing plants shifted from China to Vietnam to take advantage of free trade agreements; technology companies, e-commerce companies are constantly born ... while the personnel who meet the requirements or are close to their expectations do not have much.

Among these, technology companies and start-ups are considered to be "most willing to pay" when an acceptor pays an additional 50% of their salary to get a job change. Other positions such as senior management in finance and legal accounting; sales, marketing; supply chain, purchase ... are in the same situation and can get 15-35% higher salary offer if accepting job transfer.

In terms of industry, production is the area with the highest recruitment demand because new factories are recruiting in all positions, from supply chain management to HR or sales, marketing. Next is real estate and digitalization (including e-commerce, start-up companies).

But, the level of willingness to pay for the above salary, according to the person in charge of hiring the human resources director of a "headhunter" company, has not yet fully reflected the reality. In the market there are companies that are accepting 60-70% extra for the candidates to agree to transfer. Many employers have no choice because the supply is scarce.

Ms. Tamara Boonstra, Director of Michael Page Vietnam, at the meeting with the press not long ago also commented, currently some areas such as supply chain, electronics ... Vietnam does not have high-level personnel. That is why in many cases, employers have to bring people from abroad and train and transfer gradually. And in the market there are also many companies born just to find good people and provide for businesses.

Implications ... bubble

Ms. Dinh Kim Nhung, Masan Group's Human Resources Manager, shared the shortage of high-level personnel in many industries as the demand for recruitment from domestic and foreign companies in Vietnam has increased, causing many workers to moving "illusions about self-power", demand for salary is higher than value. Also because of being hunted too much, it is difficult for candidates to open their hearts to listen, difficult to accept when facing difficulties, less able to learn, not humble ...

"Recent surveys show that the average time that senior personnel change jobs is two years. For those who work as our employees, this is a very short time because it is not enough for them to understand the culture, business as well as contribute to the business, ”Nhung added.

More importantly, this situation puts pressure on employers to pay too high costs (compared to their actual capacity) to have people. This is the "long war" of the business. The Vietnamese labor market is therefore not yet mature.

Ms. Linh Pham, in charge of HR recruitment of Robert Walters, also acknowledged that this is a painful problem for many employers nowadays. Many employers must accept to pay higher than 50% of the salary required by the candidates, even if they know the capacity is not equal, just because they are in need and see the potential can be completed. "There are friends who go to work every three months to transfer jobs, each transfer is a 20% increase in wages, because supply and demand do not meet," said Linh Pham.

In charge of recruiting the head of the headhunter's personnel, the explanation is that the "ball" of the high-end personnel market is also enlarged by the competition among headhunters, causing many candidates to be " illusion of self-power, ”and lost the opportunity to advance in career.

Recently, he received an order to search the regional director, in charge of the Vietnam market and some countries in the region. This is a little position for Vietnam, a great opportunity for remuneration and working environment. However, in the end, the business gave up the intention to establish this position in Vietnam, transferred to the main country (Singapore) recruiting people due to the high potential of Vietnamese candidates, although the capacity was only met. about 80-90% of the criteria set. "For traditional positions, there must be a new enterprise to accept high salaries, while new positions, they will consider, even abandon the intention if the personnel is not ready for all aspects", This comment.

The war may end?

Ms. Linh Pham said that the battle of enterprises in recruiting personnel will never stop if the problem is not solved from the original: training. This is not only training of knowledge and soft skills in universities but also at employers themselves. Having a well-trained human resource training program, cultivating "egg" people with serious investments in domestic and foreign courses, challenging positions or creating opportunities ... will be how to create high-level personnel in the most sustainable way.

Besides, the market also needs many groups of companies to sign a commitment to not take the opponent's people like Big Four (four leading auditing companies) are doing. "That is to say, there must be pioneers and pioneers to change, the market will gradually change," Linh said.

Nhung also agrees, businesses need to promote training, source from good students and do not "rob" people around. Large businesses that have the voice to do so will lead the market. In addition, in the context that employers are no longer attaching great importance to where the candidates have done as in the past, but highly recommend what value they can bring to the business, the candidates also need to change thinking, need to ignore the immediate income benefits but look further, look at the contributions to the business and through it to the society and the community. This is considered the best way to build personal brand and good income will come.

The company's people "headhunters" added, companies need to invest seriously in the position of director of human resources. Because it is the person who plays an important role in creating corporate culture, connecting generations in the organization, linking parts ... ie creating a good working environment to retain talents. The working environment is a factor to be looked at a lot today, on both salary, bonus or welfare.

As for the candidates, it is necessary to make a decisive decision to avoid jumping for a momentary emotion or being attracted by virtual numbers of headhunters. The most important thing is to look at yourself, know who you are, what you want to decide to go or stay, to avoid losing time on both sides. At the same time, you have to thoroughly understand where you want to move in order to have full preparation in all aspects, both working and behavioral skills and relationships with colleagues.