Salary increase rates this year and forecasted for next year at multinational companies and local ones (Source the 2020 Talentnet – Mercer Total Remuneration Survey) HCM City (VNS/VNA) - Salaries increased by 6.5 percent this year at multinationalcompanies (MNCs) and 5.2 percent at Vietnamese companies, and are forecast toincrease by 7 percent and 7.7 percent next year, according to the Talentnet –Mercer Total Remuneration Survey.
Speaking at a webinar held to release the survey on October 14, Hoa Nguyen, thecompany’s senior principal, human capital solutions, said 14 percent of MNCsand 34 percent of local companies did not increase salaries at all in 2020 dueto COVID-19.
While higher than the inflation rate, the increases were the lowest in the last10 years, she said.
In terms of salary increase by industry, insurance, high-tech and lifesciences, less impacted than most other industries, topped with 8,7 percent,8,5 percent and 8,4 percent hikes.
Oil and mining, banking and sourcing industries had the lowest increases of 2.1percent, 5.6 percent and 6.5 percent.
Banking and non-banking financial services and life sciences companies paid thehighest bonuses of 22.4 percent, 20.1 percent and 18.6 percent.
Technology, transport and logistics and retail paid the lowest rates of 13.8 percent,13.6 percent and 12.5 percent.
The report also said in the first half of 2020 there was a slight decrease involuntary turnover from last year due to the impact of the pandemic on jobavailability.
Phuong Nguyen, director, human capital solutions, Talentnet, said, “Despite theeffects of COVID-19, 13 percent of companies paid special Covid-19-relatedbonuses to employees who are critical to meeting business goals.”
Of them, 69 percent paid a one-time bonus, 13 percent each paid monthly andquarterly and the remaining 5 percent paid in other forms, she said.
Talking about recruitment trends in 2021, she said 40 percent of companies planto add staff next year, 5 percent intends to reduce and 55 percent expect nochange.
Godelieve van Dooren, partner, Mercer Singapore, said “During these uncertaintimes, companies might need measures to manage current costs, but they shouldnot be short-sighted as they will need employees when business starts pickingup again.
“It is critical to balance economic decisions and empathy with a longer-termlook towards what’s the next right thing your company needs to do to succeedand build a better, brighter tomorrow.”
The survey polled 605 multinational and local companies in 16 sectors with morethan 427,000 employees, and is thought to be the largest and most comprehensivein Vietnam./.
Speaking at a webinar held to release the survey on October 14, Hoa Nguyen, thecompany’s senior principal, human capital solutions, said 14 percent of MNCsand 34 percent of local companies did not increase salaries at all in 2020 dueto COVID-19.
While higher than the inflation rate, the increases were the lowest in the last10 years, she said.
In terms of salary increase by industry, insurance, high-tech and lifesciences, less impacted than most other industries, topped with 8,7 percent,8,5 percent and 8,4 percent hikes.
Oil and mining, banking and sourcing industries had the lowest increases of 2.1percent, 5.6 percent and 6.5 percent.
Banking and non-banking financial services and life sciences companies paid thehighest bonuses of 22.4 percent, 20.1 percent and 18.6 percent.
Technology, transport and logistics and retail paid the lowest rates of 13.8 percent,13.6 percent and 12.5 percent.
The report also said in the first half of 2020 there was a slight decrease involuntary turnover from last year due to the impact of the pandemic on jobavailability.
Phuong Nguyen, director, human capital solutions, Talentnet, said, “Despite theeffects of COVID-19, 13 percent of companies paid special Covid-19-relatedbonuses to employees who are critical to meeting business goals.”
Of them, 69 percent paid a one-time bonus, 13 percent each paid monthly andquarterly and the remaining 5 percent paid in other forms, she said.
Talking about recruitment trends in 2021, she said 40 percent of companies planto add staff next year, 5 percent intends to reduce and 55 percent expect nochange.
Godelieve van Dooren, partner, Mercer Singapore, said “During these uncertaintimes, companies might need measures to manage current costs, but they shouldnot be short-sighted as they will need employees when business starts pickingup again.
“It is critical to balance economic decisions and empathy with a longer-termlook towards what’s the next right thing your company needs to do to succeedand build a better, brighter tomorrow.”
The survey polled 605 multinational and local companies in 16 sectors with morethan 427,000 employees, and is thought to be the largest and most comprehensivein Vietnam./.
VNA
