Tuesday, July 17 2018


Staff cuts can cost in the long run

Update: March, 23/2012 - 10:15


Workers at Samsung's mobile phone factory in northern Bac Ninh Province's Yen Phong District. Proper payment and good infrastructure for a quality working climate can help companies retain skilled workers. — VNA/VNS Photo Tran Viet
HCM CITY — Cutting salaries can save expenses in the short-term but more money would be needed for recruiting and retraining in the long term, a human resources consultant has said.

Duong Xuan Giao, director of Netviet Human Resource Consulting Co., said that more than 30 per cent of businesses in Viet Nam faced a staff shortage, particularly highly skilled employees.

He was quoted as saying in Nguoi Lao Dong (the Labourer) newspaper that it would take two to four months for businesses to recruit employees, which could affect company plans for the future.

Giao said that companies could retain staff by seriously paying attention to salary, bonus policy and working environment.

A transparent salary and bonus policy that is fair to all employees is important, as well as promotion opportunities and good infrastructure for a quality working climate.

According to a survey conducted by the Viet Nam Education Consulting Organisation of 634 employees from 437 businesses, 40 per cent of staff leave work due to a noncompetitive salary.

Thirty-five per cent said they lacked promotion opportunities, while 22 per cent said they had arguments with managers and directors.

Nearly 17 per cent said they could not withstand the work pressure.

While there are more than enough people looking for jobs, businesses often complain about a shortage of human resources because they only want skilled employees.

The business community and education sector should create better linkages so that supply and demand of human resources was more balanced, said Tran Thi Tuyet, a lecturer at the Ha Noi University, which has a joint master's-level programme with Australia's La Trobe University.

Chris Harvey, executive director of recruiting company Navigos Search, said company leaders should have more frequent discussions with staff in order to understand their concerns about work.— VNS

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