recruitment & retention strategies in the ......note: headhunt is the most effective for senior...

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RECRUITMENT & RETENTION STRATEGIES IN THE MANUFACTURING EVOLUTION

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Outline

1 Recruitment Market Overview

2 Highlights from Navigos Search’s survey

3 Navigos Search’s recommendation

An overview on Vietnam’s Recruitment Market

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26,608

36,575

48,377

58,079

63,730

H1/2014 H1/2015 H1/2016 H1/2017 H1/2018

No. of Job Post

104,027

138,544

227,236 229,130237,119

H1/2014 H1/2015 H1/2016 H1/2017 H1/2018

No. of Job Application

10% growth y-o-y 5% growth y-o-y

Overall, labor supply is growing, although the gap between supply and demand still exists

Source: Navigos Group Vietnam JSC – Report 2018

27%

24%

23%

22%

22%

Legal/ Contracts

Finance/ Investment

Accounting

Internet/ Online Media

Human Resources

In recruitment demand

27%

22%

21%

18%

16%

Internet/ Online Media

Retail/ Wholesales

QA/ QC

Education/ Training

Banking

In labor supply

Top 5 job categories with the highest growth


Merchandizing/

Purchasing/ Supply Chain

Human Resources

Administrative/ Clerical

Accounting

Export - Import

Competitive rate by category

1/82

1/73

1/68

1/66

1/65

Hung Yen

Hai Duong

Bien Hoa

Ho Chi Minh

Dong Nai

Competitive rate by location

1/59

1/57

1/57

1/54

1/53

The competition is growing at locations where Industrial Zones is established


14,463

10,625

9,194

7,575

5,510

H1/2018H1/2017H1/2016H1/2015H1/2014

No. of Job Post

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49,687

35,279 36,967 36,448

34,967

H1/2018H1/2017H1/2016H1/2015H1/2014

No. of Job Application

40% growth y-o-y36% growth y-o-y


Industrial Manufacturing Demand & Supply account

for about 20% of the market

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Manufacturing has highest demand in middle & senior level

29%

16%

12%

6%

30%

25%

13%

8%

38%

15%

12%

7%

37%

18%

11%

7%

Manufacturing Comsumer Goods and

Retails

Banking and Financial

Service

IT

Growth of recruitment needs – 2017

Q1 Q2 Q3 Q4


Navigos Surveys -Some highlights

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Technical competencies are always critical for“Talents” in Industrial Manufacturing

Vietnam has a young and growing workforce

69% of population is in working age

27% of population is Millennials

300,000 graduated students/ year

Source: General Statistics of Vietnam

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Candidates and Employers have different views on the importance of non-technical hiring requirements

41%

27%

14%

3%

Technical skills & experience

Working attitute

Culture fit

Soft skills

Employers’ requirements

73%

19%

6%

Technical skills & experience

Soft skills

Foreign languages

Employees’ view


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Manufacturing candidates are proactive to get themselves ready

28%

25% 25%

17%

3%

1%

Join technical skillstraining courses

Learn fromcolleagues

Improve foreignlanguages

Join soft skillstraining courses

Await for companytraining courses

Do nothing


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Manufacturing companies become more creative in their recruitment strategies

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Companies’ common recruitment strategies

Percentage of respondents who strongly agree or agree with solution.

81%

51%

50%

31%

23%

7%

Diversity recruitment channels

Train the next generation

Invest in Benefits program

Build Employer brand

Associate with training centers

Associate with industrial zones


74%

50%

46%

23%

17%

Online job portal

Internal referral

HR department

Recruitment agency

Vocational colleges or university communities

Note: Headhunt is the most

effective for senior positions

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Effective channels for recruitment

Percentage of respondents who strongly agree or agree with each statement


74%

18%

5%

3%

Experienced (Non-manager)

Manager

New Grad/Entry Level/Internship

Director

Online job posting becomes popular channels for experienced (non-management) positions


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Other solutions

46%

21%

21%

Outsourcing

Cooperate with training centers on training inaccordance with hiring requirement

Cooperate with training centers to improve thequality of training courses

The need for fit-in and scalable manpower resource becomes an

important factor for company’s success under rapid technological change.


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Collaborating with educators becomes a trend


49%

41%

23%

7%

Vocational colleges

Universities

Colleges

High schools

Collaboration with technical & community colleges not only helps to design a

suitable manufacturing workforce but also improves the industry perception and

career trends.


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Recruitment is still a challenge

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CHALLENGES

QUALITY

Hard to find candidates with relevant Experience,

Skills and Technical Knowledge (43%)

RETENTION Companies need to find

ways to keep talents while

controlling labor costs

WORKING LOCATIONIt is still challenging to find

senior candidates around

industrial zones’ areas

LANGUAGEBeside English, the demand

for Korean, Japanese and

Chinese speaking candidates

are rising

IMPACT OF NEW

TECHNOLOGIESTechnology has pushed up

the recruitment demand

and “facilitated” the race

for salary.

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76% employees said that they have to cope

with increasing workload due to manpower-

shortage in their department

“

”


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Top reasons for hiring challenges

35%

20%

14%

9%

9%

Unqualified candidates

Unattractive salaries & benefits

Low number of candidates

Competitive market

Working location & condition


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Retention is always the priority

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Factors contributing to attracting and retaining people


63%

52%

37%

24%

21%

19%

15%

11%

10%

10%

2%

Stable job

Competitive salary

Safety working environment

Attractive compensation

Great line manager

Clear promotion policy

Engagement activities of…

Healthcare program for employee

Practical training program

Flexible working hours

Healthcare program for relatives

Employers’ view

69%

49%

33%

32%

25%

21%

18%

12%

11%

10%

4%

Competitive salary

Clear promotion policy

Attractive compensation

Great line manager

Stable job

Practical training program

Safety working environment

Engagement activities of company

Healthcare program for employee

Flexible working hours

Healthcare program for relatives

Employees’ view


Navigos Search’srecommendations

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Sourcing &

ScreeningInterview

Test

(IQ/EQ/Technical) if

applicable

Reference

CheckOffer Onboarding,

evaluation,

validation

Proper recruitment process helps getting the right talents

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Companies need to be creative in Retention Strategies

TALENTS

Human Capital has become the

driver of strategic planning

People-centric becomes

strategic approach Creating pathway to

grow leaders is

companies’ focus

Improving talent quality

becomes a priority

Employers seek for

initiatives for EB

differentiation

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“”

Solutions for labor workforce are not short - term. A

long-term strategy for hiring, developing and

retaining talents is vital for sustainable growth of

any business

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THANK YOU!

recruitment & retention strategies in the ......note: headhunt is the most effective for senior...

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