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On October 16th, 2024, during the two-day event of The Makeover 2024, Talentnet announced the Vietnam Total Remuneration Survey Report 2024.
Voluntary turnover rate down, layoff rate up
In 2024, the economic landscape had a profound impact on the job market. Although Vietnam’s GDP is projected to grow modestly to 5.8% from 5.1% in 2023, inflation is expected to rise from 3.3% in 2023 to an estimated 3.7% this year, according to the IMF.
As a result, employees are facing financial pressures and seeking job stability. In multinational companies, the voluntary turnover rate in the first half of 2024 was 6.5%. According to 2024 Talentnet Total Remuneration Report.
However, on the other hand, businesses must find ways to balance their budgets. It is predicted that in 2025, the rate of layoffs in businesses could reach 7.3%, a 6% increase compared to the 2024 estimate. Vietnamese businesses have also reduced their salary increase rate from 6.7% in 2023 to 6.3% in 2024, while multinational corporations have reduced theirs from 6.7% to 6.5%.
Ms. Nguyen Thi Quynh Phuong – Head of Human Capital Solutions, Talentnet, shared, “The economic downturn has prompted businesses to optimize their workforce, leading to an increase in layoffs. However, on the bright side, new job opportunities are also being created. In fact, the percentage of companies planning to hire additional staff has increased from 37% in 2023 to 41.4% in 2024.”
Ms. Phuong also mentioned that salary increases have been reduced but at a minimal rate, reflecting businesses’ efforts to ensure employee benefits. “Considering the economic context, I believe employees can be satisfied with this small change,” she concluded.
Pay agility for sustainable rewards and benefits
To provide businesses with more suggestions for building competitive compensation and benefit packages while maintaining a balanced budget, Ms. Quynh Phuong offers a comprehensive overview of pay agility. According to Ms. Quynh Phuong, businesses implementing pay agility should focus on four key pillars: market competitiveness, pay for performance, personalization, and transparency.
Gen Z – the upcoming vital workforce
The report begins with an overview of the labor market. Within a year, Gen Z will account for 28.4% of the workforce. In five more years, this generation will become the core of the labor market. In 10 years, they will emerge as the new management force. Within 15 years, they will ascend to senior management roles.
Given this data, companies can strategically plan their training and development initiatives to ensure that Gen Z is prepared to assume important positions within the organization soon.
Salary increase trends by industry
The top 3 industries with the highest salary increase in 2024 are Renewable Energy (7.2%), Chemicals (7.0%), and Sourcing (7.0%), showing a significant change as High Tech is no longer among the top industries for salary increases. The bottom 3 industries with the lowest salary increases are Oil & Mining, Financial Services – Non-Banking, and Financial Services – Banking.
To effectively adapt compensation and benefits strategies to the current economic landscape, businesses should leverage data-driven insights. The Vietnam Total Salary Remuneration Report 2024′ provides comprehensive data from 594 multinational companies and 59 domestic companies, covering 3,481 positions and over 551,380 employees. This report offers valuable guidance for businesses looking to develop competitive and flexible compensation plans: https://tinyurl.com/y9hnjw2f
