Salary increases in 2020 lowest in 10 years: survey
HCM CITY — Salaries increased by 六. 五 per cent this year at multinational companies (MNCs) and 五. 二 per cent at Vietnamese companies, and are forecast to increase by 七 per cent and 七. 七 per cent next year, according to the Talentnet – Mercer Total Remuneration Survey.
Speaking at a webinar held to release the survey on Wednesday, Hoa Nguyễn, the company’s senior principal, human capital solutions, said 一 四 per cent of MNCs and 三 四 per cent of local companies did not increase salaries at all in 二0 二0 due to Covid- 一 九.
While higher than the inflation rate, the increases were the lowest in the last 一0 years, she said.
In terms of salary increase by industry, insurance, high-tech and life sciences, less impacted than most other industries, topped with 八, 七 per cent, 八, 五 per cent and 八, 四 per cent hikes.
Oil and mining, banking and sourcing industries had the lowest increases of 二, 一 per cent, 五, 六 per cent and 六, 五 per cent.
Banking and non-banking financial services and life sciences companies paid the highest bonuses of 二 二. 四 per cent, 二0. 一 per cent and 一 八. 六 per cent.
Technology, transport and logistics and retail paid the lowest rates of 一 三. 八 per cent, 一 三. 六 per cent and 一 二. 五 per cent.
The report also said in the first half of 二0 二0 there was a slight decrease in voluntary turnover from last year due to the impact of the pandemic on job availability.
Phương Nguyễn, director, human capital solutions, Talentnet, said, “Despite the effects of Covid- 一 九, 一 三 per cent of companies paid special Covid- 一 九-related bonuses to employees who are critical to meeting business goals.”
Of them, 六 九 per cent paid a one-time bonus, 一 三 per cent each paid monthly and quarterly and the remaining 五 per cent paid in other forms, she said.
Talking about recruitment trends in 二0 二 一, she said 四0 per cent of companies plan to add staff next year, 五 per cent intends to reduce and 五 五 per cent expect no change.
Godelieve van Dooren, partner, Mercer Singapore, said “During these uncertain times, companies might need measures to manage current costs, but they should not be short-sighted as they will need employees when business starts picking up again.
“It is critical to balance economic decisions and empathy with a longer-term look towards what’s the next right thing your company needs to do to succeed and build a better, brighter tomorrow.”
The survey polled 六0 五 multinational and local companies in 一 六 sectors with more than 四 二 七,000 employees, and is thought to be the largest and most comprehensive in Việt Nam. — VNS
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