This is a good sign as the quality of domestically trained students is increasingly improving, especially foreign language skills.

The TRS also pointed out that high-tech, insurance, and life-science industries have seen the highest salary increases this year, with a rise of 8.8%, 8.2% and 7.6%, respectively.

Oil and mining, various manufacturing, and retail industries continue to have the lowest pay growth.

The rate of pay growth in the Vietnamese market has been dropping over time, reaching its lowest point in 2020, however, there have been indications of an upsurge due to the post-COVID economic recovery.

Budgets for pay raises in multinational companies increased by 0.2% in 2022 compared to 2021, while Vietnamese businesses experienced a 0.3% decline. 

Both multinational and local companies are expected to witness similar pay growth trends of 7.1% in 2023.

The percentage of firms with additional staff needs has increased, with 45% of over 600 surveyed organisations reporting that they would hire more employees, 18% of businesses having not decided yet and 35% of businesses having no intentions to hire or dismiss personnel.

Only 2% of companies, on the other hand, plan to cut headcount in the coming year.

According to Talentnet, many companies are implementing benefits focused on three primary pillars - mental health, physical wellbeing and sustainable development - as a result of COVID, and restructuring the compensation scheme to meet employees’ expectations in the new normal.

Godelieve Van Dooren, Mercer’s CEO for the Southeast Asia Growth Markets, said employees of different genders, ages, and levels have quite diverse needs for their jobs. However, job security is still the top reason that makes them stay.

While female personnel are more concerned in wellbeing policies, flexible working hours, men tend to prioritise jobs with competitive salaries, advancement opportunities and professional development, she said.

Advancement opportunities, a pleasant working environment, and career growth will be prioritised by Gen Y employees, whereas Gen X will embrace a competitive compensation, flexible working hours, time off, or health benefits, she added. 

A total of over 600 multinationals and local companies across 17 industries with more than 483,000 employees took part in the survey, considered the largest in Vietnam.

"Talent attraction and retention has always been a challenge for any business. However, this will constantly shift in response to the economic and social environment. Employees in the new normal expect a more comprehensive and equal policy for them, as well as one that is tailored to their own needs,” said Nguyen Thi Thanh Huong, Deputy CEO of Talentnet.

“As a result, the more businesses understand the labour market and regional HR trends to rethink effective yet sustainable compensation practices, the better equipped they will be to develop a more relevant strategy," she said./. VNA