Ho Chi Minh City, ­­October 6th, 2021, VietnamWorks– the oldest and biggest recruitment website in Vietnam owned by Navigos Group has published a report on Covid-19 And The Labor Market in 2021: Situations and Solutions”. The report collected data from survey with more than 400 responses from enterprises and 1200 job seekers in August 2021.

  1. General situation of businesses facing with the 4th time of Covid-19

The 4th time of Covid-19 in Vietnam seems to be so complicated. The level of impact is much larger than all three previous combined.

According to the survey statistics, about 49.9% of enterprises did not lay-off employees and kept the same salary and benefits as before the pandemic. At the same time, about 11.6% of enterprises continued increasing recruitment to fill in different vacancies. By analyzing this data, we can see that there are still many businesses that can maintain their human resources as well as keep the same wages and benefits for employees in complicated situations. On the other hand, 3% of businesses have temporarily stopped operating; 9.4% of businesses have chosen to laid-off employees and also cut down salary ranges, 7.3% have laid-off employees but kept the same salary and benefits unchanged before the pandemic, and 18.9% chose to cut down salary ranges & benefits to optimize the operating costs and have business rescale.

However, some businesses remain stable and try adapting to all the changes. Comparing the figures with the report “Covid-19 and The Labor Market: Challenging Pathway To The New Normal” published in 2020 by VietnamWorks, we will see a bright spot as follows. The percentage of “not laid-off employees and keeps salary and benefits the same as before the pandemic” is currently accounting for 49.9% (2021), compared to 43.2% (2020).

Most of Finance – Banking – Insurance and IT companies did not lay-off employees, keep salary and benefits the same as before Covid-19

Despite facing the fourth Covid-19 storm, many Vietnamese businesses still try to maintain their operations and human resources. The Board of Directors and the Human Resources department may have had more experience and preparedness to deal with the pandemic. This will help them come up with solutions to optimize costs in human resource management.

The data shows that many businesses are still ensuring the number of employees, keeping salary and benefits during this prolonged pandemic, especially in Information Technology (IT), Finance / Banking / Insurance, Import / Export fields. To be clear, we will list out the percentage below:

  • 8% are enterprises having 10-50 employees
  • 1% are enterprises having 101-300 employees
  • 2% are Enterprises having 51-100
  • 2% are enterprises having more than 1000 employees

Information Technology (IT) has the highest demand for recruitment

From the data, we can see that the recruitment demand growth rate is higher in Hanoi than in Ho Chi Minh City, 50% and 45.2%, respectively. Enterprises in the IT field with a size of 101-300 employees have the largest growth in personnel recruitment. In addition, enterprises in Hanoi with 10-50 employees and 101-300 employees also desire to fill in the vacancy of Sales / Business.

Restaurant / Hotel / Tourism businesses cut off salary and employee benefit the most – Finance / Insurance / Banking business cut down the least.

Data from the survey shows that:

– Approximately 3.7% of enterprises having 10 to 100 employees already reduced salary and benefits by 80%. These are businesses in the Restaurant / Hotel / Tourism, Education / Training industry.

– 9.9% of enterprises with the scale from 51-300 in the Education / Training industry have cut 50-75%

– 37.9% of enterprises cut 25-50% of salary and benefits. These are businesses having 10-50, 301-500 and more than 1000 people who are working in Real Estate / Short-term & Long-term Leasing, Construction / Architecture, Outsourcing / Processing / Manufacturing industries.

– 29.2% of enterprises (Import / Export, Trade / Retail / Wholesale, Advertising / Online Marketing / Communication) have scale from 101-300, 301-500, 501 -1000 and more than 1000 people, have cut 15%-20% of salary and benefits during difficult time.

– Finally, 19.3% of businesses only cut off 5-10% of salary and benefits. They are enterprises with more than 1000 employees from Electronics and Telecommunications, Finance / Banking / Insurance industries.

Trainees / Fresh Graduates and Inexperienced Employees have the highest job cutting rates

In order to maintain business operations, many leaders will choose to retain talents with many years of experience. Therefore, the cutting rates of Trainees / Fresh Graduates and Inexperienced Employees are accounting for 40.5% and 42,3% respectively.

Administration / Secretarial are the departments that be cut the most

There are still many businesses that will try to preserve the operation of each department to overcome this Covid-19 storm together. However, Administration / Secretarial is currently one of the departments accounting for 12.3% that businesses will choose in the cut. Next, the Sales / Sales department accounts for 8.4% and Customer Experience has 4.7% of the opinions.

The field of Restaurant / Hotel / Tourism, Education / Training having the highest rate in business laid-off ratio

According to the report, around 3% of businesses had to stop operating due to the impact of Covid-19 in 2021. To be counted, about 25% were in the field of Restaurant / Hotel / Tourism, Education / Training having a business scale from 10-50 to 301-500 people has ceased operations.

In addition to the industries mentioned above, 16.7% are in the Construction / Architecture industry (scale 10-50), 16.7% are enterprises specializing in Outsourcing / Processing / Manufacturing (scale 301-500), are being severely affected to be able to continue operating during this time. With the decision to stop operating businesses, the labor market in the second half of 2021 in Vietnam has changed a lot. When the national economy changes, this will lead to many fluctuations in the human resource market, and force businesses to quickly take solutions to approach and adapt.

  1. Solutions businesses support employees during Covid-19

Enterprises deploy diverse and practical support policies for employees

In the past few months, businesses have taken action quickly to support their employees by:

  • Always updating information to send to employees in the prevention of Covid-19.
  • Changing working hours and working
  • Processes to help employees complete their work more smoothly.
  • Organizing online activities, sharing and giving gifts to employees (e-vouchers, gifts,…).
  • Supporting all staffs to get vaccinated.
  • Providing food to all employees

III. Recruitment plans of enterprises when pandemic is under control

56.7% of businesses plan to start recruiting immediately after coming back from social distancing

Apart from the above data, the survey also shows that about 17.5% cannot decide whether they can immediately recruit again or not. Besides, many businesses still need more time, from half a month to after 6 months, to be able to resume recruiting. These numbers show that many businesses still need a recovery to be able to return to the labor market.

50% of businesses chose to recruit completely new & inexperienced employees

This is also worth noting for both employers and job seekers. After the economy recovers, businesses still need to balance operating expenses. Especially after many months of being affected by the Covid-19 pandemic, many businesses will have a strategy to optimize recruitment costs by hiring completely new employees. However, there are still about 36.9% focusing on those currently working for the company and 16,2% choosing those who used to work at the company before the pandemic.

Sales / Business department are prioritized to recruit first

The report’s data shows that the Sales / Business Department will be the first to be recruited with nearly 29% of businesses participating in the survey. Next is the Information Technology department with 21%. Marketing Department with 10.5%, Customer Experience Department with 8% and Finance and Accounting Department with 5.4%.

  1. Current situations of employees participating in the survey

More than 87% of workers affected by the Covid-19 pandemic

More than 87% of workers affected by the Covid-19 pandemic are obtained from the survey. We can see that the 4th Covid pandemic has a more serious impact on workers than all previous outbreaks combined.

When asked about the situation of workers when the pandemic re-emerged as now, up to 41.5% of workers said that they had quit their jobs and had no new jobs. About the reason for leaving, more than 30% of employees answered that they were in the company’s staff reduction scope. The next reason is the decrease in salary and company benefits, accounting for nearly 25%.

Another statistic shows that workers who have not changed jobs are at the top of the list as 67% cannot find suitable jobs to apply for, and 30% because they have sent their CVs but have not been contacted by employers. 22% of the reasons for not finding suitable jobs to apply for are because companies do not recruit during the epidemic season, so job opportunities are increasingly scarce. 20.1% of people think that the company’s position is recruiting for is not suitable for their ability and orientation.

Lack of efficiency in work is one of top 3 difficulties workers face when work from home

During the current pandemic, 64% of employed workers said they were working 100% from home. Top 3 difficulties are: Lack of connection with their bosses and colleagues when working from home – 27%; Decrease in labor efficiency – 24%; Distraction, lack of concentration – 18%. Other difficulties are also raised by a few workers, such as weak wifi network, poor connection, inability to confirm the actual production situation, documents not being fully digitized, and lack of service tools work, members do not follow the deadline, it is difficult to contact, cannot solve urgent problem.

 

  1. Solutions employees apply to overcome difficulties caused by Covid-19

52% of employees saves family living costs to overcome the situation

Facing the negative effects caused by the 4th Covid epidemic, many workers have had to quit their jobs and have not found new jobs. Therefore, the measure to ensure life during this difficult time, applied by 51.5% of employees, saves family living costs and calculates more reasonable expenses. Another measure, 24.3%, chose to work part-time with a seasonal job to ensure income for themselves and their families. Besides, 16.6% of people who have quit their jobs and have not had a part-time job have had to use their savings and accumulated during this time. Some workers have chosen to return to their hometowns to reduce the cost of accommodation in the city. Employees offer other methods such as: Borrowing money to cover life, investing in securities, negotiating salary with current company, learning a new job, starting your own business…

52% of workers will switch jobs after the Covid pandemic ended

According to statistics from the survey, when asked about future plans, 51.4% of workers said they would change jobs after the Covid pandemic ended. Besides, more than 30% will still work if the salary and benefits remain the same. 11.3% of employees proposed to increase wages and benefits to be kept after the epidemic ended. Looking at these numbers, it can be seen that the 4th pandemic has significantly affected the salary, bonus, and welfare regime of employees.

Other ways that some workers choose are: Find a job they passionate about, choose the right expertise to work in, find a new job with better salary and benefits, find a stable job to commit to for a long time…

  1. VietnamWorks recommendations:

To employers:

  • Realizing the role of businesses in disease prevention: Whether we are living in the pandemic or post-pandemic, businesses should play an important role in preventing and slowing the spread of disease in the workplace. After this storm, businesses should plan to prepare, respond and control the disease for employees. When employers are active and take immediate responses, those actions will help employers know the feasibility percentage to see if they should invest and run any new projects, or they should change any working styles: remote working, have different support policies,….to make the company operate smoothly again.
  • Prioritize flexibility: This is also the time when businesses should have flexibility in the working process, especially the group of businesses that are reshaping and recovering from Covid-19. For the new normal, flexibility is also one of the keys to the success of many businesses. Some flexible policies can be listed, including Flexible working mode – Flexibility in working, communicating and receiving information.
  • Developing human resources in a new direction: Based on the survey, businesses will have a new strategy to develop human resources whether in the time of isolation or the post-Covid-19 era. After the economy recovers, many industries will begin to enter the recovery phase, this is also the time when businesses are looking for talent with different welfare and salary policies. At the same time, some growing industries continue to make breakthroughs on their recruitment path. However, society and the economy are gradually entering a new normal, so perhaps workers will also have new requirements and judgments in the job search process. Maybe, they are not only looking for a job with an attractive salary or benefits, but the candidate will also consider the working mode and operating model of a business. Therefore, businesses should take advantage of this point to come up with new strategies to attract talent when the labor market begins to recover.

To employees:

  • Quickly adapt to new working methods: The remote working mode will continue until the pandemic is over and life returns to normal. Therefore, employees should consider this as an official and long-term working model, not a temporary short-term plan of companies. Employees should adapt and try to ensure the quality of work with effective remote working support tools
  • Capacity building to meet the needs of the recruitment market: The job market and recruitment in the coming time is forecasted to be a fierce competition of candidates on the job search race. After the pandemic, employers tend to look for highly qualified candidates with good expertise to be able to flexibly adapt to constant changes, especially during this period. To prepare a ready state of mind right now, accumulate for yourself the knowledge and skills to enhance your own experience and confidently meet the high requirements of employers.
  • Flexibility in the process of looking for a new job
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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:

With over 5 million monthly visits, VietnamWorks is the leading and longest-running job website in Vietnam. We bring fresh jobs everyday to nearly 5 million registered professionals and provide recruitment solutions to more than 17,000 companies. Our large database of experienced job-seekers and reliable employers is an invaluable asset in Vietnam’s competitive recruitment market