Ho Chi Minh City, April 23, 2020 – Navigos Group, the leading provider of HR services in Vietnam, published a report on “ICT Employment: Current Situation and Strategy to Meet New Technology Demands in Vietnam”. The report is published based on an analysis of the results of a survey of candidates and employers from Technology Companies in Vietnam.
I. OVERVIEW OF ICT EMPLOYMENT & PERSONNEL IN TECHNOLOGY COMPANIES
Most of the Technology Companies aim to increase employee scale
Most businesses have recruitment demands next year with different levels depending on their scale. Only 9% said that they do not have any recruitment plans, half of the businesses said they need to expand by 11-20% more and nearly a quarter of businesses said they need to expand by 21-30% or more.
Lack of manpower affect the performance of current staff most
When asked about the biggest impact on businesses when there is a shortage of employees in the company, the candidate and employer groups both agree on the top 3, although in a different order:
According to the employer group, the level of influence of the factors in turn is: Directly affect the performance of the company, Overworked status of the remaining employees and Lack of engagement among employees due to the instability of personnel.
For the candidate group, the ratings of the factors are: Overworked status of the remaining employees, Lack of engagement among employees due to the instability of personnel and Directly affect the performance of the company.
Full-stack is lack of manpower most nowadays
New fields related to computer science also have recruitment demands, though not high, showed by 18% of enterprises lack candidates to develop Automation; 11% of enterprises lack employees in Machine Learning Development and only 2% of enterprises lack employees in Blockchain development.
Human resources is the main advantage of establishing a technology company in Vietnam
3 factors considered to be advantages when establishing a technology company in Vietnam that revolve around Human resources in turn are Competitive labor costs; Stable economy (young manpower, high GDP growth); Quality of workforce (education background and vision). This opinion is agreed by both candidates and employers.
Besides that, English is not a strength of IT candidates like they said. A quarter of candidates say that English is a common foreign language as one of the advantages when establishing a technology company in Vietnam but only 7% of employers have the same opinion.
Scarcity of IT human resources – a big challenge for IT companies
When asked about the challenges of setting up a technology company in Vietnam, the top 5 factors that businesses consider challenging include: Scarcity of IT human resources; Labor costs have increased recently; Privacy conditions; Copyright policies are not strict enough; The education system does not focus on training science subjects (STEM); Lack of transparency.
Among these factors, Scarcity of IT human resources; Privacy conditions; Copyright policies are not strict enough; The education system does not focus on training science subjects (STEM) and Lack of transparency are agreed by candidates group. Though Labor costs have increased recently factor was vote by ½ of employees as a big challenge but the candidates group did not notice it, just 20% of them have the same opinion.
Experienced candidates are paid higher than in many other industries
When compared with the general salary level (according to VietnamWorks Salary Report), employers show they are paying experienced candidates higher than many other industries. Specifically, the salary range from 701 – 1000 USD per month is the most common level that employers are paying experienced candidates. Other industries pay the candidate group is 251-500 or 501-700 USD.
Technology enterprises show long term vision and sustainability in recruitment
Facing a scarcity of human resources in the technology industry, many businesses also show a long-term vision in recruiting and benefiting from developing current human resources. Accordingly, 62% of businesses choose to Restructure the skills for their current team and 56% choose to Connect with universities to prepare the necessary skill sets.
II. RECRUITMENT AND TALENTS RETENTION STRATEGY
Employers still appreciate the Integrity factor in IT candidates
When asked to evaluate the characteristics of current Vietnamese IT candidates like Hardworking, Creative, Engagement, Work productivity, Integrity. Integrity factor was ranked second with 39% of employers vote Quite good. However, the candidates group ranked this factor as the lowest among the remaining 5 factors, only 27% of candidates considered it quite good. Accordingly, the factor Professional knowledge is rated 47% of candidates is quite good, ranked second when assessing the important qualities of candidates in the Technology sector. However, only 36% of employers said that Professional knowledge is Quite good.
Human resources in the technology industry are more stable and engaged with the company
According to the employers’ assessment, the job turn-over rate in enterprises is more stable, which also shows the engagement of technology candidates. Accordingly, 64% said the rate of job conversion in their businesses is less than 20%. The number of candidates working less than 1 year is only 4%. The number of enterprises with candidates working for more than 2 years accounts for 64%.
Factors related to Salaries, Bonuses are still in top 3 reasons for transferring job of IT staffs
When asked about the reasons for transferring employees at the company, 67% of employers said that employees Get better job offers from other companies, 38% of employers choose to be Not satisfied with the salary and compensation policy and 31% choose Establish start-ups.
In fact, the group of candidates thought that the top reason for them to quit their jobs was Not satisfied with the salary and compensation policy (45%), the second reason was No chance of promotion (40%) and the reason Get better job offers from other companies ranked third with 38% of the candidates agreeing.
Different views on special benefits between Employers and Candidates
With the candidates group, Top 3 special benefits are: Periodic health checks and premium insurance (40%), Overtime pay (31%) and Bonuses based on work results each quarter (28%)
But with the employer group, they choose the factor Bonuses based on work results each quarter is their most special benefits (42%), Opportunity to study and work abroad (40%) and Periodic health checks and premium insurance ranked third with 33% voted.
The Employer’s brand is not considered as an important factor in IT Companies
The top 3 most attractive factors selected by employers and candidates are Attractive salary and benefits; Flexible working conditions on space and time; Creative working environment; Pioneering in technology. Technology candidates and employers groups shared the same opinion when evaluating the Reputation factor because only 9% of candidates and 18% of employers voted for this factor.
III. SKILL TREND IN THE NEW TECHNOLOGY ERA
New technology trends of Technology companies and their influence on service and personnel planning
Ranking of technology trends has many disparities in order between candidate groups and employers. Specifically, the top 3 new technology trends from the employer’s perspective are: Artificial Intelligence (AI), Blockchain, Providing software services (Software as a service). On the candidate side, new technology trends such as Artificial Intelligence (AI), Fintech (Financial Technology), Software service delivery are highly appreciated. However, only a quarter of candidates think that Blockchain will continue to be the trend and rank this technology in 5th place.
When asked about the effects of new technology development trends on recruitment plans, most employers believe that these impacts force them to re-plan their services and labor uses. Accordingly, the top 3 most obvious impacts are: Difficulties in developing the business scale due to the scarcity of labor resources; Business restructuring due to changing market demand; Forced to narrow services and focus only on areas where the company is strong.
Technology candidates master skills trends in the next 5 years and understand about the company’s efforts in helping candidates respond to these changes
When asked about the skills needed in the next 5 years, the candidate group shows an understanding of the future skills employers require. Although there is a difference in the order of priority for the skills, the top 3 are shared between the candidates and employers. They are Making customer experience the focus of product development; Digital transformation mindset; Complex problem-solving skills.
The candidate group demonstrates an understanding of the plans that the business is working to empower its human resources to respond to changes in new technology. Accordingly, the candidate group and the employer group have the same top 3 business plans applied to human resource development, namely, Take key employees to school and internal retraining; Individual training program based on each individual’s development plan; Joint training at universities to ensure output.
Southeast Asia candidates are the most competitive alternative candidate group
If Vietnamese candidates do not meet the recruitment requirements, both the employer and the candidate agree that selecting candidates from the Southeast Asia region have the most potential. Candidates from Europe and the Americas, although they are always thought of as highly qualified with a lot of new technology knowledge, they are not selected by the employer. The candidate group also shows that there is no high competition from candidates from these areas.
IV. SUGGESTIONS FROM NAVIGOS GROUP
Mr. Gaku Echizenya, CEO of Navigos Group Vietnam shared: “The demand for high technology has been recognized by many sectors and businesses, developing application plans, creating new job opportunities for the labor market. Facing the increase in recruitment demand, enterprises not only face a shortage of technological manpower but also have to prepare solutions to retain talents and cope with rapid changes to new technology.
The report of Navigos Group about “ICT Employment: Current Situation and Strategy to Meet New Technology Demands in Vietnam” to give businesses and job seekers a full view of the personnel situation. At the same time, the results also help businesses and candidates understand each other’s aspirations so they can form appropriate solutions to recruit and retain talented people in the future:
- Improve welfare and working environment
- Forecast new technology application plan for an effective personnel structure
- Joint training at universities and institutions to ensure the quality of the future labor force
- More professional organizational structure”.