Page 22 - Layout 1

COVER STORY

People on the move

VET sought the views of a range of stakeholders on the state
of Vietnam’s HR market in the wake of Covid-19.

Covid-19 was the big information tech- supplied by Vietnam. But although the pan- are outsourcers, with customers in Japan,
nology (IT) labor market story in 2020. demic cut IT industry hiring, Vietnam’s IT Europe, Australia, Canada, and the US. Covid-
The pandemic’s effect across the world reduced sector remains strong and is growing. Fifty- 19 has been quite disruptive in these countries.
international customer demand for IT services five per cent of IT employers responding to Some of our large customers reported that
ITviec’s 2020 Employer Survey, conducted in clients had put projects on hold or cancelled
December, reported reduced hiring in 2020 them. As a result, hiring demand was down
compared to 2019. Seventeen per cent reported in 2020 but is rising again. Ninety-five per
no hiring at all in 2020. Salary growth also cent of 2020 Employer Survey respondents
slowed. In 2019, 76 per cent of employers reported that they expect to grow their teams
reported red hot salary growth of over 30 per in 2021. The fourth quarter of 2020 was
cent for new hires. That number fell to 41 per ITviec’s highest revenue quarter ever.
cent in 2020; cooling but still strong. Addi- Employers should keep focusing on funda-
tionally, IT employers will grow their staff mentals: create an attractive place to work,
significantly in 2021. Ninety-five per cent of offer opportunities for advancement, and
IT employers plan to grow their teams in the pay competitive salaries and benefits. You
next 12 months. Twenty-eight per cent plan want to have a reputation as a great place to
Mr. Chris Harvey,
Co-Founder and CEO of ITviec.com to increase staff levels by over 30 per cent. work. Crises are always great opportunities
Many of the largest IT employers in Vietnam to get stronger. %

Clearer opportunities for training and with a rise in FDI and production facilities into Vietnam, many organizations are looking
development and avenues for existing being shifted to Vietnam will drive demand at alternative approaches that include upskilling
staff to be recognized and promoted is vital. for high-quality human resources in the future. local managers into the leaders of tomorrow.
Many staff showed their adaptability and These will not only provide new economic Local talent will continue to be developed
resilience during the unprecedented turn of opportunities but also drive new demand in and grow, all of which is great for the country
events in 2020, but reward structures and the labor market and workforce. This will not and for its future ambitions. %
promotional opportunities have been slow only enhance the attractiveness of Vietnam’s
to materialize in many sectors. If employees marketplace internationally but also make it
can see that they are being recognized and easier to attract and retain talent. These
acknowledged for their hard work, not only changes will also enhance the quality and
does this create a sense of belonging it also productivity of the workforce, removing the
fosters loyalty. Organizations should also rec- human capital bottlenecks that currently exist.
ognize new patterns of work, where tech- What HR managers should also be ready for
nologies and virtual approaches are becoming is the effective transition of returning employ-
more normalized. What is also evident is a ees into the workplace of the “new normal”.
shift away from traditional performance meas- This may require additional training and sup-
ures and highly structured working practices, port, as while the pandemic may have caused
where flexibility, trust, and a focus on being disruption, coming out of it will also have its Dr. Seng Kiat Kok,
outcome driven is much more prevalent. own challenges. With the current travel restric- RMIT Senior Program Manager, Resources
Management and Entrepreneurship
Newly-ratified free trade agreements along tions and lack of international experts coming

Covid-19 was an accelerator of one of macro models and analysts’ expectations.
the greatest workplace transformations Looking forward, the Labor Force Partici-
of our lifetime. How we work and commu- pation Rate is projected to trend at around
nicate and where we work will change. It 77.8 per cent in 2021. As operating virtually
has affected employees working in most becomes increasingly prevalent, there are
industries. The HR market in 2021 is flat, several trends that have been accelerated
with little change or recovery. Vietnam’s by the Covid-19 pandemic that we expect
unemployment rate is projected to trend at to continue to reshape the HR market,
around 3.2 per cent in 2021 and 3.3 per cent such as increasing numbers of hires for
in 2022, according to econometric models. remote jobs, defining and rethinking prod-
The Labor Force Participation Rate is expected ucts, services, and business models, and
Ms. Nguyen Thi Bich Hong,
General Director of HR2B to be 75.6 per cent by the end of this quarter, employee well-being becoming a priority
according to Trading Economics’ global for organizations. %

20 | VIETNAM ECONOMIC TIMES | JANUARY 2021