Vietnam's labour is showing signs of economic recovery, according to Towers Watson's 2014 Flash Survey.
More than 82% of the survey participants remained upbeat about the business outlook for 2014, projecting their business revenue would increase. Accordingly, 67% of respondents indicated an increase in hiring projections especially in the sales and manufacturing functions.
The survey also reflects a positive sign in compensation budget planning with a median budget increase at 9.6%. On the other hand, 90% of respondents plan to control cost in HR activities including Learning & Development, Compensation, Recruitment and Benefits
More than a half of respondents (57%) have a formal written HR Strategy and 79% of respondents currently focus on optimizing, streaming and improving HR processes. Among these, only 47% of respondents stated that their companies design HR as a business partner. Also, only 51% respondents linked their talent development program to their rewards program.
“These findings show that while an organisation’s HR function in Vietnam has made forward and positive strides, a lot still needs to be done for HR to become a strategic business partner," says Huynh Thu Huong, Managing Director of Towers Watson Vietnam. "HR strategy should support business strategy and HR should drive talent and reward programmes that provide a competitive edge to companies. HR leaders should also look to use data analytics to optimise their processes and transform their HR organisations.”