Majority of Employers Willing to Boost Pay Rise

9:55:31 AM | 1/13/2023

 74% of Vietnam professionals will be seeking a new job in 2023, 88% of companies willing to raise salaries in 2023, with nearly 87% of professionals expecting a pay increase; 15-25% expected pay increases for job movers, with increments of up to 35% for candidate-short areas such as Tech and Digital; Tech and Digital sectors exert a strong influence over the country’s hiring market across various industries, largely to power firms’ digitalization efforts.

Despite most companies in Vietnam assuming a “wait-and-see attitude” over the forecasted global economic downturn in 2023, the latest Global Salary Survey from professional recruitment specialist Robert Walters indicated that 88% of companies are willing to raise employees’ salary. Job movers can expect to get 15-25% this year. In some high-demand sectors such as Digital, the rise can go up as much as 35%.

These are the findings of the Robert Walters Salary Survey 2023 made for 31 international markets across 6 continents, including Vietnam. The report is an authoritative analysis and benchmark of salary trends amongst companies and talents. In which, several key findings and major trends of the local job market in Vietnam are presented.

Job Changing vs Job Security

2023 is expected to be a “year of change” with 74% of employees across sectors expressing their intention to change or move jobs in 2023. The anticipated increase in the cost of living make nearly 87% of the respondents expect a pay rise in 2023.

Although 70% of employees say that job security becomes more important to them in the face of economic recession and inflation, majority of them still place higher importance on maximizing earnings in 2023 over job security. It shows in their level of confidence as nearly 88% are optimistic about the job opportunities in their sectors.

Accordingly, employees will look for companies that can answer to their top priority. When being asked which criteria they value most in an employer, 53% of the respondents mentioned Excellent compensation and benefit. Meanwhile, other factors such as Inspirational working culture and colleagues (42%) and Flexible work arrangements (33%) are also valued by employees.

Engineering & Manufacturing and Digital are short of quality candidates

As global markets transitioned to a post-pandemic climate, Vietnam’s engineering and manufacturing industries experienced a bout of turnovers in 2022. Across the manufacturing sector, R&D skills are in high demand as many companies are setting up new R&D centers in Vietnam. Candidates who possess strong leadership skills, holistic thinking and people engagement skills will stand out. Those who can thrive in ambiguous environments and make solid decisions amidst uncertainties will also have an advantage.

Meanwhile, the Tech and Digital industries are the strong influencers – and primarily the drivers behind Vietnam’s hiring market.

Companies are on the way to complete their digitalisation plans, and hence, require a quick and continuous supply of quality people with the appropriate tech skill sets to fill those digital roles. Thus, Robert Walters’ experts anticipate a rise of up to 35% in salary for job movers in this segment.

In 2023, sales and client services profiles will see heavy demand in Vietnam, with talent supply limited in various industries. Skill sets and roles in growth, strategy and digital transformation will also be highly sought after.

Hiring trends in 2023 for Vietnam

Impacted from the global economic downturn, most of the companies in Vietnam are expected to be in stand-by mode in 2023.  Another major trend noted in the current job market is a talent gap in almost all sectors. “Companies will have to be more flexible with their hires. They will do well to distinguish between their must-haves and nice-to-have qualities when assessing potential employees. To fulfill talent demands, there should be an increased focus on hiring based on “potential” while Vietnam’s talent pool matures and grows,” said Phuc Pham, Country Manager of Robert Walters Vietnam.

Finally, we expect an increased demand for overseas-based Vietnamese who are returning home – a  type of candidates represented in Robert Walters’ Come Home Pho Good campaign. This wave of movement scan be seen clearly in the Technology & Transformation or Digital Sectors, as overseas talents want to get closer to their families at home. These returnees will place emphasis on both salaries and companies’ culture when assessing job opportunities here.

“For the younger, Gen Z talents, you have to keep them engaged and to do so, give them the opportunity to undergo job rotations as it will allow them to stretch out and have knowledge in other areas. And most importantly, hiring managers should be involved from the very first stage of the recruitment process so they can construct a most effective career roadmap for every recruit,” Mr. Phuc Pham emphasised.

Van Luong - Vietnam Business Forum