Vietnam’s electronics, hi-tech and utilities industries, including energy and semiconductors, will actively attract talents with an international working environment and professional development opportunities, said Thanh Nguyen, director of operations and happiness inspiration with human resource consultant Anphabe JSC.
Can you identify some industries that are likely to see strong workforce attraction this year?
According to an Anphabe survey of 18 industries, the top sectors with recruitment needs and workforce expansion in the coming time period include software, e-commerce, insurance, tourism and hospitality.
Among these, software and e-commerce continue to be among industries with high labor demand due to continuous development of the digital market and the need for digital transformation in businesses. The demand for human resources in this field comes not only from specialized companies but also from the increasing number of businesses from various industries incorporating technology in their operations.
Overall, these industries require a diversity of skills and a readiness to adapt to new trends. Employees need to continuously update their knowledge and enhance their skills to meet the growing demands of these industriess.
Industries like semiconductors and energy are frequently in the news of late. With the elevation of Vietnam-U.S. and Vietnam-Japan relations in particular, the semiconductor industry seems set to create many job opportunities. What will this recruitment trend look like?
Benefiting from international cooperation, the electronics, hi-tech and utilities industries including energy and semiconductors have great potential to attract talents with an international working environment and plenty of professional development opportunities. It is not only likely to create a new recruitment wave but also contribute to consolidating Vietnam's position in the region and the world.
Based on Anphabe's survey of 63,878 employees nationwide (from April to September 2023), the electronics, hi-tech and utilities group ranked third among industries that people want to work for, indicating a large pool of talent waiting to be tapped.
However, the situation is different from the perspective of businesses. Only 21% of companies in this industry plan to increase their workforce in 2024, while 65% expect to maintain their current workforce. This may indicate that businesses are still adjusting their human resource strategies to align with market needs and trends. As the job market becomes competitive, employees today need to be more dynamic, ready to enhance their skills and knowledge to seize opportunities in a rapidly developing sector.
Does the Vietnamese workforce meet the standards of FDI companies in this industry, and what needs to be improved?
Anphabe does not have an exact answer due to the lack of information on standards set by FDI companies.
However, based on our survey of 4,382 workers in the electronics/ hi-tech/ utilities sector, they generally believe that a growth mindset, continuous learning, fluency in English or other foreign languages, communication and self-expression and technology-related skills are important.
They also say that innovation & creativity as well as relationship building and time management are crucial competencies for development in this sector.
Approximately 60% of the respondents self-assess themselves as “good or very good”. Nevertheless, this confidence level in these skills is lower than the average.
In a speech, Binu Jacob, general director of Nestlé Vietnam, mentioned that employees now have many criteria in choosing a company to work for, beyond salary and financial rewards. For example, they desire a happy working environment, a green workplace, flexible hours to pick up their children, etc. Do many businesses meet these criteria?
In the current context, the criteria for an ideal workplace in the eyes of Vietnamese employees have indeed become diverse. Today, they not only consider salary and benefits, but also other factors like a happy work environment, “green” workplace and flexibility at work. This is especially true in the post-Covid19 pandemic scenario.
Our studies have found that factors like "good health and wellness programs" and "good benefits" have continuously ranked in the top five criteria in choosing an ideal working environment over the last two years. This reflects growing concern among the workforce about welfare policies and healthcare benefits, especially after the pandemic when everyone desires better health and a more balanced life. From the corporate side, "improving the quality of the working environment" is also among the top five priorities in their human resource orientation for the next two years.
In terms of work-life balance, our survey also asked 63.878 employees nationwide this question: “Which of the following welfare programs does your company provide?”
The results show a positive shift with the proportion of businesses applying flexible working policies increasing from 16% (in 2022) to 25% (in 2023). Despite this improvement, there is still a significant gap for this policy to be more widely applied. Particularly in a challenging business climate with funds to increase salaries, nearly 50% of workers choose “Flexible work” as a criteria instead of a salary increase, indicating that this is a significant trend that needs more attention from businesses.
Regarding the trend of a "green" workplace, in measuring and evaluating the working environment of hundreds of enterprises in Vietnam over the past year, Anphabe found many companies with excellent practices towards imbibing "green" and "sustainable" values.
Among them, Schneider Electric Vietnam is particularly notable. The company has set a carbon neutrality goal and continuously carries out sustainable activities across all aspects from climate, resources to gender diversity and inclusion, highlighted by The Zero Carbon project, which aims to reduce carbon emissions and promote more efficient and cleaner energy solutions. Besides, the company also incorporates "sustainability" into its human resources training and development programs, targeting the building of an multi-generational team with digital transformation and sustainable business skills. It also has flexible work policies to reduce carbon emissions from transportation.
Like Schneider Electric Vietnam, many businesses in other industries are intensively promoting "green" practices in their operations, especially as a strategy to attract talent.
What do you see as new in this year’s human resources trend, compared to 2023?
After going through the macroeconomic fluctuations in 2023, most businesses will adjust their human resource strategies this year, specifically focusing on three key priorities: workforce training/retraining in important skills; optimizing salary, bonus and welfare policies; and enhancing leadership capabilities of management teams.
Regarding workforce plans for 2024, based on a survey of about 150 representatives from leading companies, about 57% will maintain their current workforce, while 37% plan to recruit replacements if employees leave.
Notably, "green" working environment has become a trend and will continue to be popular in the coming time. More and more businesses are aiming at sustainable development and valuing "green" activities in business culture, leading to an increased demand for "green" jobs and skills.
Anphabe's survey also shows that up to 91% of Gen Z – the future workforce generation, want to work in organizations that contribute to social issues like inequality, education, sustainable development, poverty and climate change. This fact once again emphasizes that "green" jobs are a trend and will continue to flourish in the future, so businesses need to adapt to it.
Regarding challenges for businesses in 2024, the market remains a big question mark, posing many risks and challenges in how to respond quickly to unforeseen market changes, maintain sufficient budget/investment to remain competitive and navigate business complexities effectively.
Moreover, as the young generation Gen Z increasingly enters the labor market, businesses will likely face generational conflict challenges in the future.
Anphabe's studies show that 75% of employees nationwide have experienced generation conflicts at work, mainly between Gen Z and other generations in terms of working style, attitude and communication. This requires businesses to make appropriate adjustments in policies and work culture to maintain a diverse, inclusive, and developing environment for multiple generations.
From the employee's perspective, moving into 2024, income continues to be a top concern for industry talents. However, their average salary increase expectation has decreased compared to last year, from 10.2% to 8.5%. This reality may reflect the understanding of employees regarding general market difficulties and the situation of businesses. In return, workers are placing more importance on work-life balance, especially flexible work policies. In cases where businesses plan to maintain existing salaries, nearly 50% of the workforce chose "flexible working hours" as an essential welfare program instead of a salary increase.
Notably, talents are increasingly looking for a stable job. It must be acknowledged that in the past three years, in Vietnam and the world, there has been significant macroeconomic instability and along with psychological impacts from the pandemic, workers feel uncertain and anxious.