According to a recent survey by Anphabe, salary is no longer the most important factor determining employee loyalty to a company.
Surprisingly, a recent report on human resources revealed that the biggest goal for most working people is achieving a work-life balance. Not long ago, statistics also showed that the average rate of stress in Vietnam was 52%. This number is likely even higher for working professionals. Clearly, an environment that helps employees maintain this balance will score highly and retain them for the long term.
VNG is a familiar name in the technology sector with over 1.800 employees. To foster a creative and joyful spirit among young minds, the five "no" rules – "no suits, no ties, no barriers, no hierarchy, and no office" – seem to be very popular with employees here.
Furthermore, to attract talent, VNG organized The Fire open camp at the Ninh Thuan sand dunes last year, aiming to attract the attention of young people who love technology and exploration. Of the 1.300 attendees, many became "potential employees" of VNG if they felt they fit the company culture through this activity.
So how can VNG retain these talented individuals? Respecting individual culture, investing significantly in sponsoring activities that boost employee morale such as conquering Fansipan peak, participating in high-challenge sports like Iron Man, team building... are some of the unique policies that VNG is implementing.
This is a prime example of Vietnamese companies' efforts to improve their working environment, aiming to compete with the "dream" talent retention policies of multinational corporations. In the "Top 100 Best Places to Work in Vietnam" survey conducted by the Anphabe professional networking community, 24 Vietnamese companies were included, a 22,7% increase compared to the previous year.
From a human resources perspective, the small and medium size of over 90% of Vietnamese businesses, while a weakness in business, is also an advantage for implementing new innovations. "With a lean structure, Vietnamese companies can quickly adopt changes in human resources policies compared to multinational corporations with multiple layers of management," shared Ms. Thanh Nguyen, CEO of Anphabe.
However, the needs of working people will continue to grow. These needs will undoubtedly differ significantly from what most people think, and managers will not find it easy to fully meet all of them.
Specifically, according to the survey, salary is no longer the most important factor determining employee loyalty to a company. Of the top 10 factors employees care about, salary ranks only 7th, while benefits are at the top. Benefits are not simply about health insurance or company trips, but also include benefits for family, long-term training plans, and career guidance.
However, for most domestic companies, investment in "software," or human resources, is often secondary to "hardware," such as machinery and factories. Companies only invest in the work environment after achieving business profits, rather than considering it a mandatory investment. In reality, talent is the most valuable resource, fiercely contested in the market, and easily lost if not retained by businesses with tangible value.
Another issue that many business owners need to be concerned about is that human resource activities in many companies today are only short-term (less than 1 year), rather than part of a long-term development plan. How are Vietnamese businesses trying to overcome these bottlenecks?
Despite operating in a sector with a less attractive work environment compared to others, Novaland Group has invested heavily in human resources through long-term strategies spanning 3-5 years to attract talent, including foreign experts.
In addition to infrastructure and connected amenities such as a gym, swimming pool, and coffee shop for employees, the company has also implemented several reforms in recruitment compared to traditional methods. For example, it has partnered with Vietnamworks and social media platforms like LinkedIn and Facebook to conduct exclusive recruitment programs, and built the OnePlus Networking program to allow employees to refer suitable candidates to the company.
In addition, evaluating personnel using a KPI system and allocating 20% of employee bonuses before distributing dividends to shareholders are also effective salary, bonus, and benefits policies in Novaland Group's management strategy.
A study on the sustainable development of businesses indicates that how a company cares for its employees greatly impacts its future growth potential. Certainly, when income is no longer the deciding factor for companies to attract and retain talent, company owners must pay more attention to the deeper needs of their employees if they don't want to regret seeing them leave for competitors.
Source: Investment Bridge
