Ho Chi Minh City, ­­September 8th, 2021, VietnamWorks – the oldest and biggest recruitment website in Vietnam owned by Navigos Group has published a report on The application of Human Resources management technology for business”. The 4.0 revolution has made a big change for general and human resource management businesses – HR in particular. Many new trends from the World have affected Vietnam; today’s human resource management has changed to match the current situation. VietnamWorks conducted this report to provide an overview of opinions of those involved in human resource management in Vietnam about their interest in applying technology. At the same time, the survey also offers solutions that many human resource managers in Vietnam are applying the most to meet the rapid change in the 4.0 era.

68% answered that applying technology is essential for human resources, 32% answered it is necessary

Employers in Vietnam have now begun to appreciate the importance of human resource management through investment in technology solutions, especially with the COVID-19 epidemic situation. According to a survey by VietnamWorks for businesses in 2021, the demand for using HR Tech technology for businesses is only relative. 58% of the total businesses answered “No”, only 42% answered “Yes”. This shows that most domestic enterprises currently only focus on resources. The application of technology in human resource management is currently not appreciated for Vietnamese enterprises

36% of businesses agreeing to invest a large budget in technology development,

52% of the respondents answered that the Board of Directors directed the reasons for Enterprises to apply technology to human resources management. Accounting for the largest proportion, with 36% of businesses agreeing to invest a large budget of up to 500 million in technology development, 27% agree with a 50-200 million budget, 23% only agree with a budget below 50 million. This shows that businesses are willing to invest a budget for human resource management technology if they find the technology really useful.

15% use domestic software or write the software themselves by the enterprise’s IT team, 85% use foreign software.

60% of businesses answered “Yes”, 40% answered “No” when asked about “Does the business use a consulting company before applying technology?”. This shows a serious level of interest & a clear roadmap when businesses orient to apply technology in human resource management through asking for support from consulting companies.

36% of the total surveyed enterprises said they would apply the technology human resource management for the entire process

It can be seen that when enterprises have oriented to apply technology for the entire process, they will choose to use foreign software (66%). Only 34% choose
to use local software.

36% of the total surveyed enterprises said they would apply the technology human resource management for the entire process. The remaining 64% apply technology to some parts of the human resource management process according to the Human Resource Information System (14%), WorkDay Management and Calculation (11%), Approval of leave and work (10%), Working time management (8%), Employee’s HR information page (7%).

Enterprises attach great importance to the application of technology in human
resource management when applied to the entire process. However, most enterprises in the survey only applied technology for one or a few parts of the process for objective reasons, such as: lack of budget for full management,  fear of information leak due to insufficient trust in software provider’s security, time and effort required to get used to the technology in parts…

37% of the companies rated 8/10 points to the satisfaction when using technology in human resource management

The majority of the enterprises have been applying technology feel
satisfied with 91% positive reviews, 22% rated point 7, 37% rated point 8, 11% rated point 9 and 8% rated 10/10. Only 9% rated the technology as normal or not satisfied. Enterprises gain great benefits when using technology, such as increasing the efficiency of the HR department, tracking work progress, rewarding and comprehensively managing the workforce. Technology also helps enterprises reduce operating and management costs, improve their competitiveness, especially through process improvement, product and service improvement and labour productivity improvement.

Foreign softwares get satisfaction rate around 7-10 point (on scale of 10)

From the survey, the group using domestic software has a satisfaction level of 5-9 points. Enterprises said that the easy-to-use user interface, 24/7 support system in case of problems, and affordable prices are the advantages of domestic software.

The group of enterprises using foreign software has a satisfaction level of 7-10 points. Enterprises consider the short application installation time, application performance and easy-to-use interface as advantages of foreign software.

When asked why it needs to be improved to make the application of technology in human resource management smooth. 27% of the total businesses surveyed answered that it is necessary to improve the user interface for simplicity & ease of use. 25% want a better application or system performance. 21% want a 24/7 support system when something goes wrong. 19% want a reasonable price, and 9% want to shorten installation & delivery time.

When asked why it needs to be improved for enterprises using foreign software, it needs to be improved to make the application of technology in human resource management smooth. 35% of the surveyed businesses said it is necessary to improve the user interface for simplicity & ease of use. 26% want a reasonable price, 21% want a 24/7 support system when there is a problem. 15% want a better application or system performance. And 3% want shorter installation & delivery time.

The application of technology depends a lot on the strategic vision of the corporate Board of Directors

For enterprises that have not or have not applied technology in human resource
management, the reason is that there is no orientation from the management board, accounting for 28% of the total enterprises who answered that they did not apply, 26% answered because there is no specific plan from the human resources department. For the reason of the high investment cost, accounting for 23%. The final category, accounting for 15%, is because there is no orientation from the parent corporation.

With 7% of enterprises saying that it was due to other reasons, most of them answered because they did not understand how effective the application of technology in human resource management would be.

Technology application trends in Vietnam: Cloud-based HR system

Instead of expensive software costs like computer infrastructure and maintenance, business can pay monthly or yearly for the service. Cloud-based human resource management software provides specific HR functionality,
such as a payroll system or a recruitment system, but the best choice by far is a cloud-based HR system that can handle all aspects of HR. These systems allow you to manage everything from payroll to training all in one place to save you time and energy. The following are the benefits of a cloud-based HR management system: increasing employee engagement, low-cost HR solution, 24/7 data access and system security.

Suggestions from VietnamWorks

The effective management of resources by technology is still a big question mark for administrators. So how to apply technology effectively? VietnamWorks hopes the following suggestions will help businesses apply technology to human resource management more effectively.

– Build a human resource management (Core HR)

– Applying technology and computerization in human resource management, helping to improve work efficiency, save time and resources for enterprises

– Streamline processes and workflows (Goal management)

– Human resources management through KPI (Performance management)

– Job orientation and development for employees (Career development planning)

– Recruitment more effective (Recruitment)

– Technology applications in personnel trainning (Learning)

– Understand the capacity of each person (Onboarding)

 Download the report HERE

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About Navigos Group

Navigos Group is a leading recruitment group in Vietnam which is currently owning an online recruitment website, VietnamWorks and a middle and senior recruitment service, Navigos Search. Since 2013, Navigos Group Vietnam is a member of en group specializing in providing recruitment services with headquarters in Tokyo (Japan).

About VietnamWorks

VietnamWorks is the oldest and biggest recruitment website in Vietnam. Until now, VietnamWorks is the leading and longest-running job website in Vietnam with 5 millions registered profiles and provide recruitment solutions to more than 17.000 companies. Our large database of experienced job seekers and reliable employers is an valuable asset in Vietnam’s competitive recruitment market.