Today, highly skilled professionals have high demands regarding salaries and benefits, especially those in the finance and accounting field. This is because they possess a combination of professional knowledge, soft skills, and technology. Therefore, businesses needing to recruit finance and accounting professionals should understand the basic salary range for this industry and prepare accordingly for the salary negotiations that are sure to take place.
What is salary negotiation?
Salary negotiation is a discussion between a candidate and a company representative aimed at helping the candidate achieve a salary that meets their expectations and is within the company's means. Whether you're a long-time employee or newly hired, if you feel your current salary doesn't reflect your work and contributions, you have the right to negotiate for a fairer salary.
Once a company identifies a candidate worth investing in, salary negotiations begin. This involves discussing the allowances and benefits that the employer will provide to the candidate while working for the company. Opinions will be exchanged and discussed between both parties until a final agreement is reached.
Reference salary range for the finance and accounting industry.
1. Salary range for recent graduates
Many finance and accounting students today are confused by information regarding salaries in this field. Typically, the salary for fresh graduates is only around 2,0 million to 3,0 million VND, even with a formal degree. However, this is only the salary information shared by recent graduates from "the past."
Currently, with the development of the Vietnamese economy, salaries for newly graduated finance and accounting professionals have improved significantly. According to the latest report, the salary for newly graduated finance and accounting professionals ranges from 5,0 million VND to 8,0 million VND. For those with English proficiency or other special skills, this salary can be even higher.
However, this average salary still varies depending on the industry and type of company. Therefore, the first thing that new graduates need to focus on is continuously learning and honing their skills to improve their professional qualifications and receive a deserving salary.
2. Salary range for experienced finance and accounting personnel
Currently, the Vietnamese government does not have regulations on maximum salaries for finance and accounting personnel in the corporate sector. Therefore, salaries depend entirely on the candidate's abilities and the compensation package offered by each company. The disparity in salaries for similar positions in this field across different sectors is a common occurrence.
For financial and accounting management personnel with little experience, the salary ranges from 5-10 million VND. For those with 3 years or more of experience, the salary can range from 12-30 million VND. For senior financial and accounting specialists, a salary of 30 million VND is quite normal and can even reach 50 million VND per month. In a few cases, highly competent financial and accounting managers (such as Chief Financial Officers) who receive special benefits from the company can earn between 80 and 200 million VND.
Factors affecting the salary of finance and accounting personnel.
1. Professional knowledge and work experience
In any job position, competence and experience significantly impact an employee's income. This is especially true in the finance and accounting industry, which demands a great deal of specialized knowledge, skills, and work experience. Therefore, although fresh graduates may have lower salaries compared to the average in some other professions, with just six months to a year of accumulating experience and knowledge, their income will increase significantly and change year after year.
Finance and accounting is a field with a wide range of income levels based on professional qualifications. Some companies pay finance and accounting managers only around 15-20 million VND, while others are willing to pay 80-100 million VND per month for this position. This difference partly depends on the knowledge, experience, and skills of the professional.
2. Soft skills in each individual
Besides professional knowledge, soft skills also directly affect the income of finance and accounting professionals. Professional knowledge in finance and accounting is accumulated and perfected over time through study and effort. Soft skills, however, are more difficult to develop because they are linked to personality and there are no specific standards or textbook knowledge related to them. Soft skills help foster camaraderie among colleagues, build good relationships with clients, and utilize acumen in problem-solving and decision-making.
Soft skills require conscious effort, continuous practice, and a commitment to self-development, and moreover, they differentiate candidates in the finance and accounting field at the same professional level.
3. Workplace area
A finance and accounting professional who chooses to work in economic centers like Hanoi and Ho Chi Minh City often earns a higher income than those working in other areas. Furthermore, cities with a higher standard of living, such as Hai Phong and Da Nang, offer more job opportunities, leading to increased income for their employees.
4. The company the candidate is applying to.
Besides professional knowledge, soft skills, and work location, the type of business, industry, and company culture that finance and accounting management personnel apply for also significantly influence their income level.
- Salaries for finance and accounting personnel at foreign companies are typically higher than those at domestic companies.
- Large businesses offer better employee benefits than small and medium-sized enterprises (SMEs) and startups.
- Businesses specializing in services and IT tend to pay higher salaries compared to manufacturing companies.
- The financial situation of the company also significantly impacts the income of personnel in this sector. When the company is losing money or facing operational difficulties, salary cuts are common. Conversely, if the company is thriving, its employee benefits policy will be more generous.
In terms of income, the finance and accounting sector is basically not a cause for concern, neither now nor in the future. However, according to the Ministry of Labour, Invalids and Social Affairs, Vietnam has over 1 million unemployed people of working age annually, and this number is still increasing. Businesses also continue to face labor shortages, highlighting the competitive nature of job searching and attracting qualified personnel.
To overcome this challenge, candidates in the finance and accounting fields need to equip themselves with specialized knowledge and hone their skills. Students, in particular, should acquire this knowledge while still in school to secure a job in their field and a dream salary. On the business side, companies should build a reasonable benefits package, prioritizing employee development to attract suitable finance and accounting management professionals.
5. Economic context
Economic conditions and salaries are closely related, a relationship that follows a fundamental principle. This isn't limited to finance and accounting; the economic context affects salaries across all professions. It's evident that economic growth leads to salary increases, and conversely, increased income stimulates economic growth.
Therefore, given the economic development in recent years, the income of personnel in all industries has improved compared to before and is expected to continue to rise in the future.