recruitment & retention strategies in the ......beside english, the demand for korean, japanese...
TRANSCRIPT
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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
Source: Navigos Group Vietnam JSC – Report 2018
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
Source: Navigos Group Vietnam JSC – Report 2018
14,463
10,625
9,194
7,575
5,510
H1/2018H1/2017H1/2016H1/2015H1/2014
No. of Job Post
11
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
Source: Navigos Group Vietnam JSC – Report 2018
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
Source: Navigos Group Vietnam JSC – Report 2017
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
Source: Navigos Group Vietnam JSC – Report 2018
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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
Source: Navigos Group Vietnam JSC – Report 2018
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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
Source: Navigos Group Vietnam JSC – Report 2018
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
Source: Navigos Group Vietnam JSC – Report 2018
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
Source: Navigos Group Vietnam JSC – Report 2018
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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.
Source: Navigos Group Vietnam JSC – Report 2018
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Collaborating with educators becomes a trend
Percentage of respondents who strongly agree or agree with each statement
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.
Source: Navigos Group Vietnam JSC – Report 2018
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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
“
”
Source: Navigos Group Vietnam JSC – Report 2018
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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
Source: Navigos Group Vietnam JSC – Report 2018
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Retention is always the priority
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Factors contributing to attracting and retaining people
Percentage of respondents who strongly agree or agree with each statement
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
Source: Navigos Group Vietnam JSC – Report 2018
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!