Many firms still increase wages, hire new employees
The owner of Vietnam’s largest job website VietnamWorks.com said in its Trend Survey 2009 that up to 59% of companies surveyed had increased wages between the fourth quarter of last year and the first quarter of this year.
The company surveyed 91 companies in March 2009, with 58% of them 100% foreign-owned. The respondents are active in industries ranging from manufacturing to information technology and telecom.
The survey does not detail the exact salary movements, but Navigos Group projected that 2009 salary increases may not be keeping pace with inflation even though the current projection of the annual average inflation rate will be less than 10% for 2009.
“This is an updated projection from September 2008 when we were expecting a double digit in salary increases in 2009,” said Winnie Lam, director of human resources advisory services at Navigos Group.
Lam recommended employers should move towards more variable pay elements that tie to performances in order to ensure a proper and higher return on the manpower budget rather than continue to increasing the already high base salary ratio.
The survey also shows nearly 40% of the respondents keep their benefits and allowances in this challenging year at the same levels as last year.
“The market has become so volatile in the past few months and surely will continue for months to come. A lot of the companies are doing quarter to quarter budget while some go as far as doing month to month budget for 2009,” Lam said.
The survey finds that since mid-2008, most companies had pressed on with new employment as 67% of the surveyed companies said they were still planning to hire in the next six months from last March.
Since its launch in late April this year, Navigos Group’s Vietnam Salary Survey 2009 has attracted more than 120 participants in 18 industries including manufacturing, IT/telecom, construction/engineering, trading/wholesales/retails, real estate and pharmaceutical/healthcare.
The group continues to receive registrations from companies nationwide until mid-July 2009. Participation is free and all participants will be allowed to attend the seminar for the Vietnam Salary Survey Report 2009, planned for September 2009 in HCMC and Hanoi.
