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  • Writer's pictureRalph Spangenberg

Employers face multiple HR challenges in Vietnam

Updated: Sep 8, 2019

In the upcoming years, employers, as well as HR managers, need to consider improving their organizations’ hiring process to fill in the missing positions. However, there are many challenges awaiting, forcing them to better prepare themselves to deal with:

A low-skilled workforce

Inadequate human resources will remain one of the biggest barriers that employers have to face in the coming years.

The Industrial Revolution 4.0, together with the explosion of Internet applications, trends of applying digital technology, smart devices and robots in production, is now making a lot of challenges in knowledge and skills for the Vietnamese labour market.

That’s why cheap labour forces like in Vietnam will no longer be a competitive advantage to attract foreign investment.

46 million unskilled Vietnamese workers will face the risk of not having the opportunity to participate in high-income jobs or being replaced by robotic labour, or smart technology equipment. Then, more and more employers will find it harder and harder to fight for skilled candidates.

Recruiting market shifts to candidate-oriented

Today, candidates have more power in job searching and are changing jobs more than ever. Therefore, the candidate experience in all stages of the recruitment process becomes an important element that can make or break the recruitment goals of an organization.

The fact is employees are not only expecting a higher salary but also looking for a worthwhile organization that gives them a balance in their work and life, a purposeful job, creative autonomy and so much more.

Global HR Leader Ralph Spangenberg: "In the upcoming years, employers, as well as HR managers, need to consider improving their organizations’ hiring process to fill in the missing positions."
Competitive recruitment environment in Vietnam

Candidates place higher demands on employers because they have the rights to do so. If companies want to stay competitive and operate well, they will need to keep up with these changes in the digital recruitment market.

Employer branding

In a competitive recruiting environment of 2018, a negative employer branding can undermine the organization's recruitment efforts and make it more difficult to hire talented candidates.

Up to 56% of global applicants think the employer brand becomes more important now in comparison to five years ago. The reason is that working experience in a strong branding organization contributes to the value of the candidate in their work life as well as their future career path.

When making a decision on where to apply for a job, 84% of job seekers say that the reputation of the employer is important. Meanwhile, 50% of the candidates said they would not work for a bad reputation business - even if offered a high pay raise.

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