Vietnam: 13th month salary is key to entice workers: survey
Based on the responses of 3,000 job seekers and 400 businesses in June, the report “Labor market in 2022 – facts and direction” by Vietnamworks pointed out that 40% of workers do not have a stable job.
According to the report, in the first six months of the year, 60% of job seekers had stable jobs; 20% of job seekers quit their jobs but did not get a new job; 15% of job seekers quit their jobs and had seasonal jobs; 2% of job seekers quit their jobs and started working on their own; and 3% of job seekers had a different situation.
According to statistics, 44.9% of employees chose the inappropriate culture and environment of the old company as the highest factor in their decision to quit the job. The second reason was the change in career development orientation, with the rate of 27%.
In addition, after the Covid-19 pandemic, some companies were in the recovery process, when the reduction in salary and welfare policies influenced the income and decision of employees to quit with a rate of 14%. The cases of force majeure accounted for 8.38%.
When asked why they still had not found a new job after quitting, about 24% of employees said that they had not found a suitable job. This shows that the factor of choosing the right job is highly appreciated at this time.
Some 20% of people wanted to rest before looking for a new job; 18.6% desired to do freelance business; or were looking for part-time work at the rate of 14%; people who did not intend to look for a job accounted for 11.48%. The remaining reasons accounted for 10.8%, including choosing a new major, wanting to study more or focusing on family…
The demand for job search after quitting was not high and there were many changes. Workers were willing to wait more time to find a job that suits their personal needs or a job with more work-life balance. Employees wanted to temporarily put aside their old jobs to find new opportunities and explore like opening their own business.
Photo: A large percentage of people quit their jobs due to an inappropriate working environment culture.
The key is still money
According to the survey, 80% of interns, experienced employees and directors are looking for new jobs.
Finance/Accounting/Auditing Division; Restaurant/hotel/Tourism; Consumer goods; Import Export; and Real estate had the highest percentage of employees wanting to change jobs with over 80%.
Engineering Division; Construction – Architecture; and Insurance accounted for the second proportion with more than 70%.
The group with the lowest job turnover rate compared to other industries was information technology and services with over 68%.
The inappropriate environment and salary and welfare regime were the main reasons why employees with stable jobs wanted to change jobs the most.
Notably, the 13th month salary was chosen the most by all levels of personnel. This was the priority of employees when deciding to work at an enterprise. When asked about the desired working environment, the 13th month salary is the top factor, voted by over 60% of employees, the highest being in the field of real estate.
At the same time, employers also need to pay attention to health benefits and prioritize flexible working hours to welcome the wave of talent. For the insurance industry, the demand for health benefits is higher than that of the other industries. For the level of director, the need for flexibility in work is much higher than the rest of the ranks.
In Q2/2022, 80% of employees want to change jobs
Vietnamworks predicts that in the coming months, the recruitment market will start to get excited when the demand for job search/job transfer returns.
Specifically, more than 80% of employees at all levels have a need to change jobs / look for a new job in the last six months of 2022, when the competition between applications is high.
The demand for jobs of interns is 92%; Fresh graduates/Entry level group (newbies) 88%; less than two years of experience 89%; more than two years of experience (non-manager) 78%; management team, team leader 80%; group of directors 79%.
The groups with the highest demand for job candidates include: Environmental safety (100%); Insurance (94%); Real estate (93%); Chemistry/Biochemistry (94%); Human Resources (93%); Administrative/Legal (94%); Medicine/Dental/Pharmacy (92%). However, there are still sectors that have a more stable personnel structure, such as the demand for jobs in Agriculture/Forestry/Fisheries (41%); Logistics (38%); Information technology (28%) and Education/Training (29%).
Among the reasons leading to workers choosing to change jobs in the last six months of the year, the two are salary/benefits and working environment/culture.
Job development orientation and “work for passion” are key factors for the Intern group, while salary and benefits (accounting for 6%) are not decisive factors for young employees. They need to get used to the work to clearly determine their direction in the future. Two factors, career orientation (25%) and boredom at the current job (25%), account for half of the reason for changing jobs.
One level higher (from Fresh grads to Manager), salary/benefit factor is the top concern (accounting for over 30%). Employees are willing to change jobs when the salary and benefits are not commensurate. A toxic work environment with an inappropriate company culture will also cause employees to find new jobs.
At the highest level (Director), when the factors of salary, bonus and remuneration no longer differ too much (accounting for 18%), the main reason leading to the decision to change jobs belongs to the working environment and company culture (accounting for 34%).