Local firms lack human resource strategies

Vietnam lacks long-term human resource development strategies to maintain a high-quality workforce, according to a new report from the Vietnam Marketing and Management Institute.

Phan An, a consultant to the institute who wrote the report, said many businesses focused on conforming to national law on salaries, insurance and other personnel policies, and neglected the important role of developing a quality workforce.

Along with business strategy and financial status, human resources play a key role in business development, according to the consultant.

Many large Vietnamese businesses have not developed a planning strategy that calls for wise and proper investment in employee development.

Businesses often focus on recruitment only when they are in need of staff, and state-owned businesses develop a planning strategy only as a formality.

Planning includes recruitment, training and favourable policies that will help retain highly skilled employees.

Quality employees, who can easily shift to another job, are a business asset. “Unless proper policies and strategies are created to retain them, they will leave,” An said.

Today, highly qualified employees are concerned not only about their salaries but also the work environment, business culture and promotion opportunities.

According to an investigation by the job recruiter Navigos Group, high salaries and good bonuses are necessary but are still insufficient to retain staff.

Both state-owned and foreign-direct invested (FDI) businesses are confronting several obstacles in personnel development.

According to Jessica Lu, a management consultant of Watson Wyatt Worldwide in Vietnam , many FDI businesses are facing barriers in keeping high-quality employees who hold key posts.

Last year, 14 percent of employees FDI businesses left and, in 2008, 17 percent moved to state-owned businesses, Lu said.

Highly qualified employees from state-owned companies also moved to FDI businesses.

Nguyen Van Long, who will begin working as HR director for Gemadept Joint-Stock Co in September, said that proper management was necessary for companies to retain employees.

According to An’s report, businesses must be transparent about their staff policies to ensure fairness to everyone.

Policies for salaries should be appropriate and competitive, especially for staff who hold key positions.

Businesses need to create a good working environment, in which workers are respected and can participate in many decision-making processes and have opportunities for promotion.

Business should spend about 4 – 8 percent of their budget for salaries to invest in training for high-quality personnel, excluding basic job training, An said, quoting the Singapore Human Resource Administration Institute.

An said experts have said that recruitment should be based on five criteria, including employee capability, professional ethics, teamwork spirit, commitment and dedication.

Tags: Vietnam human resource, Vietnam labour