THE MAKEOVER 2024 - Day 2: Summary Of Vietnam Total Salary Remuneration Report Talentnet 2024
October 18, 2024
On October 16th 2024, during the two-day event of The Makeover 2024, Talentnet announced the Vietnam Total Salary Remuneration Report 2024.
Speakers on Day 2 – The Makeover included:
- Ms. Godelieve van Dooren – CEO, Marsh McLennan South East Asia
- Mr. Kunal Malhotra – Country Manager (Vietnam and Korea), LinkedIn
- Mr. Puneet Swani – Former Senior Partner, Mercer
- Ms. Nguyen Tam Thanh – Group Chief HR Officer, Masan Group
- Mr. Andree Mangels – Deputy CEO, Head of Growth – Vietnam and International Market, Talentnet
- Ms. Nguyen Thi Quynh Phuong – Head of Human Capital Solutions, Talentnet
The “Vietnam Total Salary Remuneration Report 2024” involved the participation of 594 MNC companies and 59 local companies, covering 3,481 positions from over 551,380 employees across Vietnam. This survey marks the fifth consecutive year of growth in the number of participating companies, demonstrating an increasing investment interest from businesses in their human resource strategies.
I. Gen Z – the upcoming vital workforce
The report begins with an overview of the labor market. Within a year, Gen Z will account for 28.4% of the workforce. In five more years, this generation will become the core of the labor market. In 10 years, they will emerge as the new management force. Within 15 years, they will ascend to senior management roles.
Given this data, companies can strategically plan their training and development initiatives to ensure that Gen Z is prepared to assume important positions within the organization in the near future.
II. Voluntary turnover rate decreased – Unstable market or employees choose stability?
The voluntary turnover rate in Vietnamese businesses in the first half of 2024 was 9.6%. As the economy slows down, employees tend to seek job stability. In multinational companies, the voluntary turnover rate in the first half of 2024 was 6.5%.
III. Salary increase trends by industry
The top 3 industries with the highest salary increase in 2024 are Renewable Energy (7.2%), Chemicals (7.0%), and Sourcing (7.0%), showing a significant change as High Tech is no longer among the top industries for salary increases. The bottom 3 industries with the lowest salary increases are Oil & Mining, Financial Services – Non-Banking, and Financial Services – Banking.
Does internal promotion help optimize budgets?
A common belief is that promoting internal employees will optimize budgets. However, the report shows that new hires in lower-level positions (workers, staff) actually save more on salaries. Therefore, businesses need to understand which positions to retain talent for. They should also consider other costs such as training, time to grasp the job, and adapting to company culture.
Additionally, the Vietnam Total Salary Report 2024 by Talentnet – Mercer provides many figures such as recruitment demand forecasts, salary levels, and recruitment trends for AI-related positions, with reliable data. This helps both domestic and foreign companies develop policies related to salary, bonuses, and benefits that are timely and appropriate to the current economic situation to attract and retain talent.
V. Salary increase rate for Vietnamese companies decreased
The salary increase rate for domestic companies decreased from 6.7% in 2023 to 6.3% in 2024. Meanwhile, for multinational companies, the rate also decreased from 6.7% in 2023 to 6.5% in 2024. In 2025, this rate is predicted to increase slightly for both groups of companies.
Ms. Quynh Phuong – Head of Human Capital Solutions at Talentnet, stated: “Although salary growth has decreased, considering that overall national wage levels have also dropped, the fact that the decline in salary growth is only marginal demonstrates that companies are still making great efforts to support employees during difficult economic times.”
Highlights of The Makeover – Day 02
In addition, the event also brought two other important sharing sessions:
Asia-Pacific Total Rewards Trends: Towards a Green Future
The keynote on the “Asia-Pacific Total Rewards Trends: Towards a Green Future” was led by Ms. Godelieve van Dooren – CEO, Marsh McLennan South East Asia. She shared that “sustainability” is becoming a key term influencing every aspect of business operations:
- 43% of employees are extremely or very concerned about adverse climate events.
- 41% of organizations have clear policies to reduce the organization’s carbon footprint and negative impact on climate change.
- 40% of Millennials have chosen a job because of sustainability efforts & over 10% of workers said they’d be willing to take a pay cut
- A study of the S&P 500 found that the most diverse companies have better operating results, and their shares tend to outperform less diverse firms.
According to Ms. Godelieve van Dooren, a sustainable rewards encompasses three essential elements:
- Sustainability for employers: Establishing a clear and affordable compensation structure with well-defined payment objectives.
- Sustainability for employees: Providing support to help employees maintain long-term engagement with their work, such as “Upskilling”, “Reskilling”, salary increases, providing flexible career paths, and developing retirement plans.
- Sustainability for society: Implementing benefits that create a positive impact on society, promote fair pay standards, and ensure a minimum standard of living for workers.
Building a Borderless Workforce in Asia
A talent “tug-of-war” is taking place as job seekers struggle to find a new career while companies fight to fill critical roles. The answer to win this game might start from rewards strategy. The panel discussion with Mr. Kunal Malhotra, Ms. Nguyen Tam Thanh, Mr. Andree Mangels, and Mr. Puneet Swani helped attendees synthesize the must-have elements in cross-border compensation policies as well as the allocation ratio of salary, bonus, and benefit policies for global talent.
Mr. Andree Mangels remarked: “On the first day, we discussed how the emergence of AI could create up to 97 million jobs by 2025. New jobs and new skills are exactly what companies will be looking for to seize sustainable growth opportunities in an unpredictable future”. He noted that this is also a reason why the search for talent is currently stronger than ever and will continue to intensify in the coming years.
To review the highlighted content and download materials from Day 1, please click HERE.
ABOUT THE MAKEOVER 2024 EVENT
The Makeover is an annual innovation event organized by Talentnet. Besides sharing from top speakers, the event brings many figures and salary survey reports – indispensable materials for business leaders and HR professionals.
The Makeover welcomed over 1,000 attendees and featured over 20 global speakers discussing innovation. The event also attracted the partnership of leading sponsors and partners, including Phân Bón Cà Mau, GREENFEED, HSBC, PNJ, CIS, goFLUENT, Intellect, Sedbergh Vietnam, Singapore Management University, UrBox, Victoria Healthcare Vietnam, Design thinking innovation partner Doodle, Media partner Vietsuccess, S-World, and Hybrid event partner Quickom.
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