Labor reshuffle has businesses struggling to recover post pandemic

Many business owners are struggling to recover and rebuild amid a Covid-induced labor shortage, with employees increasingly seeking greater benefits.

More people have been returning to work and changing jobs, resulting in a mass reshuffle leaving companies disproportionately impacted, according to the Q3 2022 Employment Outlook report by ManpowerGroup, a world leader in innovative workforce solutions.

The report, released at the conference “Retaining Employees After the Covid-19 Pandemic” on Tuesday in Long An province, noted that employees prioritize the duration of a working day, having more days off, and choosing their workplace.

Female employees were 49% less positive about their career prospects than they were pre-Covid, and 57% stated they plan to leave their current job within the next two years, according to its findings.

“While it’s encouraging to see employers have the intention to hire workers, it’s been increasingly difficult for them to find the talent they need,” said Jonas Prising, CEO of ManpowerGroup.

Speaking at the conference, Nguyen Tam Thanh, human resources manager of food corporation Cargill Vietnam and Thailand, said that a total 54% of Vietnamese workers are considering leaving their current company, while the figures in Thailand are 60%, according to their surveys.

“Factories are obliged to seek workers from other sources,” Thanh said as workers do not want to be stuck in one place for a long period of time. “Currently, the ratio of service employees to factory workers is 15-85%, but it is likely to increase to 25-75%, and 50-50% in future.”

“Labor shortage is driven by a shift in mindset, as well as a post-pandemic worldview that emphasizes enjoying life rather than working,” she added.

Pham Anh Thang, deputy chief of the Office of the Ministry of Labor, Invalids and Social Affairs, said post pandemic, over 1.3 million employees in Vietnam relocated from urban to rural areas. “Vietnamese workers believe that their wages and non-wage perks do not meet their expectations or actual living expenditures.”

According to a report by Vietnamese workforce solutions website vieclamtot.com, more than 60% of over 1,300 workers polled stated they wish to change occupations and look for employment in other fields including online, from home, sales, as drivers, or in delivery.

Approximately 70% of people in different labor groups want to work in other major cities or different locations, the report noted.

Nguyen Thu Trang, country head of permanent recruitment, executive search and consulting services at ManpowerGroup Vietnam, told the conference that company owners should provide competitive compensation, a decent working environment, and long-term employee health care in order to retain employees and assure staff satisfaction.

ManpowerGroup Vietnam's Employment Outlook Survey for first half of 2022, shows that 59% of the sampled employers said their hiring activities had fully recovered, followed by about 18% and 14% expecting their recruitment plans to increase within the next three months and six months, respectively.

In the long run, about 9% of respondents expect nine months or more than a year for their recruitment activities to return to the pre-pandemic level.