Companies improve employee compensation schemes, raise salaries: survey

HCM City (VNS/VNA) - Despite a challenging business environment, many companies have improved employee compensation schemes compared to 2021, according to the Vietnam Best Places to Work survey.

The survey was conducted by Anphabe, a consulting firm providing Employer Brand and Happy Workforce solutions, from April to September 2022 with the participation of 57,939 professionals, 515 companies and in-depth interviews with about 150 leaders and managers in 20 industries.

It showed that as of September, 56% of the workforce reported increases in salary, 38% remained stable, and 6% of employees experienced salary decreases or unstable income.

This shows the great efforts of companies in the aftermath of the COVID-19, given that only 35% of the workforce received a pay raise last year while those who suffered from instability or loss of income climbed to 15%.

Human resource practitioners shared a more optimistic view for 2023, when salary increases are expected to be 12% on average.

Beside salary, businesses have pushed hard to allow 90% of employees to receive annual bonuses, with almost 70% able to earn bonus as expected or higher than the average of 1.4 months of salary.

For the next six months to one year, the turnover rate is expected to drop to 17% compared to a rate of 23% right after the pandemic.

Many organisations have been doing better at strategy planning and future orientation, resulting in a rise in the Employees’ Trust Index from 44% in Q3 last year to 75% by the end of September this year.

Vietnamese employees are increasingly stressed-out, with 42% of polled employees experiencing stress ‘often’ to ‘very often’, according to the survey.

The middle managers group and employee group with two to five years of tenure are the most stressed.

By industry, materials manufacturing and banking are the two industries that have the highest rate of stressed employees, following by chemicals manufacturing, pharmaceutical, and construction and architecture.

The increasing stress level has a profound effect on the quality of human resources, forcing companies to seriously review the current schemes that take care of employee well-being.

“The comprehensive health of the workforce directly affects the health of the organisation, from short-term business performance to sustainable development. Therefore, taking care of employees’ well-being is an essential strategy and should be focused on immediately,” said Thanh Nguyen, CEO & Chief Happiness Officer at Anphabe.

Vietnam Best Places to Work 2022 award

Anphabe and market research firm Intage Vietnam on November 9 announced the list of 100 Best Places to Work in Vietnam.

Abbott Laboratories GmbH gained the top spot followed by Nestlé Vietnam, Vietcombank, Viettel, Suntory PepsiCo Vietnam, Coca-Cola Vietnam, Samsung Vina, FPT, Techcombank, and Vingroup.

Companies that continue to lead their industries include Manulife Vietnam (insurance industry), PNJ Group (retail/wholesale/trading industry), Viettel Group (hardware technology/infrastructure/telecom industry), Samsung Vina Electronics (electronics/hi-tech/utilities industry), and Maersk Vietnam (transportation/logistics industry).

Companies that made remarkable breakthroughs to be listed in Top 100 Vietnam Best Places to Work for the first time include Pernod Ricard Vietnam, Home Credit Vietnam, VietinBank, DHG Pharmaceutical JSC, Masterise Homes, and Newtecons Investment Construction JSC./.