Despite increasing wages, the number of employees quitting at foreign direct investment (FDI) companies in Vietnam continues to rise.
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| Many employees feel stressed due to job-related pressure (Illustrative photo) |
Although the average wages paid to employees of FDI companies in 2010 have gone up by 13.5% and are the highest rate in the last 7 years; 12.9% of their total employees have quit. These are among the key findings in a new research on 154 FDI companies in Vietnam by Tower Watson, a human resources consulting company.
Additionally, the number of employees who work long term in FDI companies also has reduced because they often feel stressed due to job-related pressure. This leads to many employees quitting their jobs.
According to the latest research made available by Navigos Group, a recruitment solutions provider in Vietnam, maintaining long term employment contracts with skilled and capable employees is considered as the biggest challenge for enterprises in 2010. High wages and big bonuses probably are not always an effective method to retain them.
Therefore, human resource strategies should include a forecast on workforce and recruitment in addition to training and developing employees so that they can meet requirements when enterprises expand their business activities.
“Traditional management models of enterprises need to be changed with a new one under which responsibilities should be clarified and assigned to each position,” said Doctor Phan An of the Vietnam Marketing and Management Institute. It means that an enterprise should have a solid foundation on workforce and enterprise culture. Management should be assigned to each division or even each employee in a democratic and public manner. Employees should have rights to give out their opinions so that their companies will operate as effectively as possible.
Many other opinions said that in terms of manual labour or other professions, enterprises need to decide what kind of business they want to focus on and develop in the next 10, 20 or 30 years. This way, they can know the necessary skills and knowledge which their employees need to have and the size of the workforce needed in order to meet their business goals.
