17:43 (GMT +7) - Wednesday 19/12/2018

Vietnam Today

2018 Mercer - Talentnet Salary Survey released

Released at: 14:11, 12/10/2018

2018 Mercer - Talentnet Salary Survey released

Photo from tuyencongnhan.vn

Results released at seminars in Hanoi and HCMC.

by Nghi Do

The salary increase rate at multinational corporations (MNCs) in 2018 was 8.6 per cent and 9 per cent in local businesses, according to the 2018 Mercer - Talentnet Salary Survey. While not significantly different compared to last year’s result, the increase is still higher than Vietnam’s current inflation rate and GDP growth.

Talentnet hosted seminars to announce the results, from surveys conducted by Talentnet – Mercer, in Hanoi on October 11 and Ho Chi Minh City on October 12. “Nearly 40 per cent of participating businesses were new to the Total Remuneration Survey this year,” said Ms. Hoa Nguyen, Director of Mercer Salary Survey & HR Consulting at Talentnet. “This demonstrates the determination and desire of local businesses in building a more professional workplace, with more focus on talent attraction and retention strategies in order to compete with MNCs. Businesses are gradually coming to understand that salary and bonuses are simply the ‘bait’; the true ‘fishing rod’ lies in professionalism and a solid, equitable business structure, not only for attracting talent but also investors.”

The survey attracted the participation of 602 businesses from 16 different industries, including Information Technology, Consumer Goods, Life Sciences, and Chemicals, with a salary database of more than 314,000 employees all over Vietnam.

Source: 2018 Talentnet – Mercer Salary Survey

Salary increase by industry

With an optimistic business outcome in 2018, the High Tech, Life Sciences, and Chemical sectors had the highest rate of salary increases, at 9.7 per cent, 9.1 per cent, and 9 per cent, respectively. On the other hand, due to an economic downturn, the Oil & Mining sector had the lowest salary increase.

Bonus rate by industry

Due to the nature of their business, those in Financial Services, including Non-Banking (consisting of consumer finance and investment firms), Banking, and Insurance had the highest bonus rates, at 21-25.2 per cent. Retail, Logistics, and Education, meanwhile, had the lowest bonus rates, at 13.6 per cent, 13.2 per cent, and 9 per cent, respectively.

Most difficult positions to attract/retain talent in 2018

In 2018, in MNCs, the three most difficult positions to attract and retain talent were in Sales (at both the Manager and Professional levels), and Engineering (Professional). The consistent presence of Engineering over the past couple years demonstrates Vietnam’s increased investments in technical and specialized fields. Within the High Tech sector, Engineering positions, especially Software Engineers, are in high demand. Businesses in this sector are willing to offer very attractive rates in order to recruit talent.

According to Ms. Hoa, the fact that over 600 leading companies participated in the 2018 salary survey reflects the major demand among businesses for a trustworthy salary database, to support them in building and designing a total rewards strategy together with a people strategy to ensure equity while strengthening their competitiveness in attracting talent.

As the largest and most detailed salary and remuneration report in Vietnam for the past ten years, the 2018 Talentnet - Mercer Salary Survey provides practical information for businesses in the process of planning and managing compensation, salary, benefits and rewards, in order to ensure internal equity and external competitiveness.

With standardized methodology and updated knowledge in global human resources trends, the Talentnet - Mercer Salary Survey is a powerful reference tool for business leaders to study in the process of designing their people strategy relating to total rewards in the Vietnamese market.

The survey is conducted annually and is a dependable database in supporting businesses in making decisions on rewards and compensation policies. Combined with other factors such as working environment, training, and performance management, this builds a premise for companies to develop effective policies and remuneration, aligning with business goals and sustainable development.

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