Businesses struggle to recruit as Vietnamese employees cling to year-end bonus

Companies need to increase production to meet deadlines, but hiring becomes difficult as employees wait for year-end bonuses instead of switching job.

Le Thi Kim, director of ManpowerGroup, a human resource solutions provider, said there is an increased demand for employees towards the end of the year, as the Tet Lunar New Year holiday approaches.

Kim, who is in charge of outsourcing and staffing services in northern Vietnam, said there was a particularly strong increase in staff demand for the smartphone industry, auto assembly, real estate and food processing. These companies plan to employ 100 new workers every month to work in their factories, she said.

But, she added, the year-end is one of the difficult times of the year to employ people, as workers tend to finish their jobs by the Tet holiday, which falls February 2-10 next year, to receive the year-end bonus instead of switching to another job.

Another factor is that college students usually graduate in the summer and have settled into stable jobs by the fourth quarter.

Nguyen Xuan Son, another person dealing with outsourcing and staffing services for ManpowerGroup, said that many electronic and electricity firms plan to increase the number of employees by 1,000-1,500 next year.

Other firms in the power sector, the fast-moving consumer goods, industry, finance and quality control also plan to increase staff strength significantly.

“There is currently high demand as companies increase production to fulfill commitments or launch year-end promotions. These companies do not need experienced employees,” Son said.

He added that areas that have a high demand for staff are Ho Chi Minh City, Can Tho City, Binh Duong Province and Ba Ria-Vung Tau Province in the south; Quy Nhon City, Da Nang City and Hue City in the central region and Hanoi in the north.

There is also a higher demand for new graduates, employees with 2-3 years of experience, employees in customer care and consumer finance business, Son said.

Senior manager positions in the digital banking sector are also sought after, and many companies are also struggling to fill positions like chief technology officer and chief information officer, as qualified local candidates are difficult to find.

“The increasing number of startups is the reason for higher demand for staff in the consumer finance and information technology sectors,” he said.

A recent survey by online recruitment website VietnamWorks confirms what the experts are saying.

90% of human resource professionals polled said that the hi-tech and engineering sector will see strong growth in human resource demand in Vietnam in the next five years.

89% of them said that computer and technology sectors will also have a higher demand for staff, while 62% forecast increased demand for arts, design, entertainment, sports, and media workers.