Businesses are in great need of labor

22/10/2021    13

In the report on "The labor market in the fourth wave of Covid: situation and direction" published by Navigos Group, the leading human resource recruitment service provider in Vietnam, the labor demand of enterprises was huge.

Nearly 50% of businesses can retain employees

This survey was conducted by Navigos Group on 1,600 businesses and employees in August 2021. According to the results, the fourth wave of Covid-19 had a much larger impact than the previous three waves combined.

According to the survey's statistics, about 49.9% of businesses did not cut staff and kept wages and benefits the same as before the pandemic. Simultaneously, about 11.6% of enterprises continuously increased recruitment during this time.

In which, most businesses in the financial, banking, insurance, and information technology (IT) segments did not cut staff, keeping salaries and benefits unchanged.

The IT sector has the largest recruitment demand. Based on the survey, the growth rate of recruitment at enterprises during this time was higher in Hanoi than in HCM City, at 50% and 45.2%, respectively.

Businesses in the tourism and hotel sectors cut wages the most, while those in the finance, insurance, and banking industries cut wages the least.

The survey data showed that about 3.7% of enterprises with 10 to 100 employees have reduced wages by 80%. These are businesses in the restaurant, hotel, tourism, and education industries.

About 37.9% of enterprises cut 25-50% of salary and benefits. These are enterprises are mainly from the real estate, outsourcing, and processing industries.

More than 29% of enterprises in the import and export, commercial, retail, and media industry with a scale of 100 to 1,000 people have cut their salaries and benefits by 15%-20% during these difficult times.

19.3% of enterprises cut at least 5-10% of salary and benefits. These are enterprises with more than 1,000 employees from electronics, telecommunications, finance, banking, and insurance industries.

More than 40% of workers are unemployed

The report showed that more than 87% of workers were affected by the Covid-19 pandemic. The fourth wave of the pandemic is seriously affecting workers.

When asked about the current situation, up to 41.5% of workers said they had quit their jobs and had not found a new one. Regarding the reason for leaving, more than 30% of the candidates said they were on the company's list of staff reductions. Next, nearly 25% of employees quit their jobs due to salary and welfare cuts.

Regarding the recruitment plan, 56.7% of enterprises participating in the survey will recruit immediately after returning to normal operations.

Additionally, the survey showed that about 17.5% cannot immediately decide whether they can recruit again or not. There are also businesses that need more time, from half a month to more than six months, to be able to resume recruiting. These numbers indicated that many businesses still need a recovery to return to the labor market.

50% of enterprises participating in the survey said they would hire new employees after temporarily shutting down. This is a remarkable point for employers and a valuable opportunity for jobseekers.

Besides, 37% of businesses prioritize hiring people who have worked at the company instead of hiring new people, and 16.2% of businesses will hire people who used to work at the company before the pandemic.

VietnamWorks suggested that now was the time when businesses should have flexibility in the working process, especially units that are reshaping and recovering in the post-Covid-19 period. For the new normal, flexibility is also one of the keys to businesses’ success.

Thanks to the survey, businesses can make a new strategy to develop their human resources whether in isolation or post-Covid-19. After the economy recovers, many industries will also enter the recovery phase and seek talent with different welfare and salary policies.

Employees are not only looking for jobs with attractive salaries or benefits, but also consider the working regime and business’s operating model. Therefore, businesses should take advantage of this point to come up with new strategies to attract talent when the labor market begins to recover.

Source: Custom News