Hoa Nguyen, senior director of Talentnet, speaks at the Talentnet-Mercer Post survey seminar held in HCM City on October 6. (Source: VNA) HCM City (VNA) - Salary increases thisyear at both multinationals and major local companies have in general been higher than inflation rates, a surveyby Mercer, a global provider of human resource services, and TalentnetCorporation, its associate in Vietnam, has found.
Speaking at the announcement of Talentnet-MercerPost survey in HCM City on October 6, Hoa Nguyen, senior director of Talentnet, said though 4.9 percentinflation was forecast for this year, multinational and local companies hadoffered employees salary increases respectively of 8.5 percent and 8.9 percent.
Talking about pay hikes by industry, she said technology, lifesciences and chemicals were the top three sectors in increasing salaries, withtheir hikes at 9-10 percent.
At the other end of the spectrum were education, financialservices-banking and oil and mining with 7 percent, 5.7 percent and 4.6 percenthikes.
With a better forecast for business growth in 2017-18, companiesplan for a higher variable bonus payout compared to last year.
Agriculture, banking and finance topped the variable bonus listwith payouts of 22.1 percent, 20.7 percent and 20.7 percent.
Leading local companies continued to pay higher variable bonus(22.1 percent) rates than multinationals (16.6 percent).
But theaverage salary paid by local companies is 29 percent lower, and the differencewidens from 15 percent (para-professional) to 30 percent (professional) and 41 percent(management), according to Hoa.
On theother hand, local companies are willing to be flexible to compete withmultinational companies for key talents.
According to the survey, the average voluntary staff turnover rateof local companies is higher than multinationals’(10.5 percent compared with7.4 percent).
The highest turnover rates for multinationals by industry wereretail (32.2 percent), real estate (18.8 percent), and consumer goods (17.3 percent)while chemicals and oil and mining had low rates of 9.9 percent and 5.3 percent.
Sales and marketing continue to be the hottest jobs while there isa short supply of engineering professionals that recruiters are strugglingwith.
Atotal of 592 established multinational and local companies with more than289,200 employees in 16 industries took part in thesurvey, considered the largest and most comprehensive in Vietnam. — VNA
