High turn-over rate is the biggest challenge in Retail sector
Retail sector is still an attractive sector to candidates regarding to its creative and activeness. However, the Retail employers have been facing its high turn-over rate. In particular, 28% of employers said candidate’s lack of commitment and high turn-over rate are the biggest challenges – 49% of employers said, candidates are easily affected when being approached and offered by another company in the same sector. This opinion is as same as employee’s reflection, 60% of candidates said their average employee tenure is from 2 – 3 years.
Candidates are interested in corporate culture, while not all employers are taking it serious.
Based on the statistics, there is a perception gap on the role of culture fit between employers and candidates. 99% of candidates are interested in corporate culture due to its Working environment – People – Corporate vision, with the respective rates of 30% – 33% and 29%. In employer’s view, 51% of them consider corporate culture fit is a mandatory in recruitment process, 40% of employers think that it’s good if candidates fit with the corporate culture, otherwise it is not a big matter.
Related to corporate culture, candidates also shared the reasons to change their jobs, above salary and promotion problem (22%) and not getting promoted or it takes long time to be promoted (16%), being unfit with manager’s style is the primary reason for retail candidates to quit their jobs with 29% of respondents chose this answer. With reference to line management, 40% of candidates said that they find it is very difficult to switch to a new business (in similar or different industry) if they do not fit with the line manager’s style. Thus, in order to seek for the most suitable candidates, considering corporate culture fit is an important element in recruitment. Besides, candidates also seek for the corporate culture fit to engage and improve their career.
Expats will be the most competitive candidates in retail sector
Based on Navigos Group’s observation, the mobility in the economic community led to intense competitiveness from expats candidates. In this survey, 50% of employers said they have the employment policy for expats, candidates who are from Southeast Asia such as Thailand, Singapore, the Philippines, Malaysia, etc. are prioritized. On the candidate’s side, 46% of respondents said they are facing competitiveness from expat candidates at their current jobs. Based on their evaluation about expat candidate’s potential, 33% of candidates said the most excellent candidates in Retail sector could be from Europe; 26% of respondent appreciated the candidates who are from Northeast Asia (Japan, Korea); 22% of respondent voted candidates from Southeast Asia.
Candidates who have e-commerce experience are higher paid.
Digital trend in Retail sector also led to discrepancy in paying for candidates. 42% of employers said they offer a higher salary to candidates who have experience in e-commerce compared to non-experience candidates in this field, 37% of employers offer a higher salary from 10 -20%; 5% of employers offer a higher salary from 21– 30%. However, e-commerce is still a rather new field to Vietnam market, thus half of respondent (48%) is non-experience in e-commerce. 46% of candidates said they have a few years of experience, 6% of candidates said they are experienced in e-commerce for many years.
Training and Human resource development are the most important solutions
In the Retail briefing event to clients Hanoi and Hochiminh city last week, Ms. Nguyen Phuong Mai – Managing Director of Navigos Search, shared the solutions for retail recruitment: “Every enterprise has its own specific corporate culture, however, building the corporate culture from its core values is recommended. Aiming to reduce the turn-over rate, enterprises need to focus on main factors: developing leadership team with people management skills and facilitating career advancement through training. Besides, our survey points out that nowadays enterprises have been using social media to build their employer branding. Due to Navigos Group’s evaluation, the most efficient recruitment channels are Online; Referral Program; Recruitment Agency; Nurturing future talents through collaboration with educators.”