The human resource market is undergoing major changes, but in a more subtle and hidden way. Businesses are struggling with the issue of benefits to “hunt” and retain talent.
The human resource market is undergoing major changes, but in a more subtle and hidden way. Businesses are struggling with the issue of benefits to “hunt” and retain talent.
Strategic move
At the end of November 2024, the Vietnamese technology and startup community simultaneously shared the announcement that Sky Mavis - a billion-dollar startup in Vietnam - would lay off 21% of its staff.
According to Mr. Nguyen Thanh Trung, co-founder of Sky Mavis, this decision is not related to the Company's budget or financial situation. This is a strategic move that allows for clearer focus and positions Sky Mavis for growth in 2025 and beyond.
Sky Mavis did not share which departments would be streamlined or how the process would work, but confirmed that employees would receive severance packages as well as support in finding new jobs.
Sky Mavis is a Vietnamese company founded by Vietnamese shareholders (in addition to 2 foreign shareholders). The CEO of Sky Mavis is Mr. Nguyen Thanh Trung. However, Sky Mavis's headquarters is located in Singapore.
In 2023, the company said it will have about 250 employees globally, of which 200 will be in the Vietnam office.
Mr. Trung assessed that recent crypto-friendly policies are expected to create a wave of innovation along with Web3 projects, which could create a similar big change in 2018, when the company launched the game Axie Infinity. From there, the Company decided to focus on the goals of Ronin Wallet, Mavis Marketplace, expanding the Ronin blockchain to attract more developers as well as releasing more Web3 games.
- Nearly 10% of candidates have been looking for a job for 6 months or more and have not found a new job. The majority belong to the management and expert groups, plus the 3 most affected job groups: creative (design, content, ...), information technology, financial accounting.
-The number of candidates registering to receive job consulting from recruitment experts is up to 500% compared to the same period last year.
(Source: Aniday)
Sky Mavis’ decision was announced in the context of the cryptocurrency market recovering and Bitcoin approaching the $100,000 mark. Previously, Sky Mavis was also one of the few startups with a Vietnamese founder valued at over $1 billion, also known as a “unicorn”.
Sky Mavis is famous for the game Axie Infinity, which pioneered the play-to-earn trend and became popular during the pandemic when it helped many people earn income from the game. To operate the game, they also built a blockchain called Ronin.
However, after the play-to-earn craze ran into problems, combined with the Ronin bridge being hacked and losing $600 million worth of cryptocurrency in 2022, the company made several changes. These included offering a free-to-play version of Axie Infinity as well as making Ronin a platform for Web3 games.
According to Mr. Trung's announcement, Ronin is still the third most used blockchain in the world, with more than 1.1 million daily active addresses. The Ronin wallet application also reached over 10 million downloads.
Also in the technology and electronics sector, Samsung previously cut thousands of jobs in Southeast Asia. However, Samsung has no plans to lay off employees in the domestic market. Currently, Samsung has about 147,000 employees abroad, accounting for more than half of its total of more than 267,800 employees, according to Samsung's latest sustainability report. The company did not set a specific number target for any position. There has been no information about layoffs in Vietnam.
But the above information is just the tip of the iceberg. Ms. Thien Kim, co-founder of Aniday (a recruitment platform that owns the largest headhunter network in Vietnam) said that the layoffs were not as widespread as the previous wave, but most companies did not hire more employees when they left. In particular, despite business growth, most companies did not hire more workers, but instead invested in digital transformation and artificial intelligence (AI) to increase labor productivity.
According to this representative, AI could cause 14% of the global workforce to need to change careers between now and 2030. This is an opportunity for small and medium-sized enterprises to recruit a group of experts with expertise and experience at suitable salaries.
Navigos Search data also shows that by the end of 2023, the global IT industry will experience a wave of layoffs, with more than 262,000 employees losing their jobs, mainly from large technology companies such as Meta, Google, Amazon, Microsoft... The main reason is the hot growth after the Covid-19 pandemic leading to over-hiring and ineffective operations.
In Vietnam, according to observations from Navigos Search, the labor market in the information technology - telecommunications industry still has high recruitment demand, especially for experienced personnel (accounting for 77.3%). The reason is that the need for digital transformation of domestic enterprises and the investment of foreign projects in Vietnam are factors that create a favorable environment for the information technology industry to continue to develop.
However, according to data from recruitment consultancy Robert Walters, in the face of increasing competitive pressure and changing employee priorities, businesses in Vietnam are actively adjusting their strategies to effectively attract and retain talent.
Accordingly, in 2025, businesses are expected to increase recruitment in areas such as human resources, legal and finance to support business expansion and growth strategies. In addition, positions in development-oriented departments such as sales, marketing and business development are still focused. Salary increases are expected to remain stable at 15 - 25% in most industries.
According to Anphabe, in 2024, 33% of businesses participating in the survey said they will expand their human resources in the near future. Notably, only 9% of units shared that they will continue to cut staff. The number of employees receiving salary increases this year is 10% higher than the same period last year.
Headache competing for benefits package
According to the Robert Walters 2025 Salary Survey, several key trends are shaping how organizations approach a changing job market. One notable highlight is the plan to increase salaries across many businesses, with 82% of surveyed companies saying they will adjust salaries in 2025.
In addition to increasing salaries, employers are also focusing on improving talent attraction programs through competitive compensation (76%) and investing in comprehensive training and development programs (67%). These initiatives not only help attract potential candidates, but also contribute to building a highly competent workforce that is committed to the organization for the long term.
However, attracting talent is only one side of the equation; retaining talent is another. A Robert Walters survey found that 59% of employers admit that competition for talent and the difficulty of offering competitive benefits packages continue to be major challenges.
According to Anphabe, in 2024, the happiness index of Vietnamese employees is falling to its lowest level in the past 5 years. As of the third quarter of 2024, only 49% of Vietnamese employees have positive happiness indexes. Of which, the two indexes of feeling joy and excitement at work and not considering looking for another job decreased to 39% and 43% respectively.
One of the reasons is believed to come from financial pressure. Nowadays, personal finance is the biggest concern for workers.
Only 1 in 3 employees have positive financial health. In fact, 74% of Vietnamese employees feel that their current income is not enough to cover their living expenses and meet their basic needs. Accumulating to own large assets such as housing is becoming more difficult, in the context of escalating prices and limited benefits.
More than half of Vietnamese employees believe that their company is paying them unfairly, making them worried about their future financial stability. Only 35% of workers are comfortable living on their monthly salary, the rest have to do freelance work, invest or "ask for help" from their families.
According to Ms. Thanh Nguyen, CEO and Inspiration Director at Anphabe, many unstable incomes will make employees with low financial “health” more likely to quit their jobs. According to the survey, this group of employees intends to quit their jobs in the next 6 months 4 times higher than other groups.
Even if employees feel happy at work, more than half of them are still willing to change jobs if they receive better benefits than their previous company. The reason is that they value a job that gives them a sense of financial security. Financial security here means that if an unexpected incident occurs, they will still be able to handle it.
Therefore, human resource consultants believe that a promising approach is to recruit candidates based on potential, rather than just on existing expertise. Focusing on nurturing and developing long-term talent will help businesses build a workforce that grows and adapts with the organization. At the same time, companies are also making efforts to adjust benefits and policies to meet employee expectations, creating a harmonious working environment that benefits both parties.
According to Mr. Pham Tuan Phuc, Managing Director of Robert Walters Vietnam, compensation and benefits are still key factors in attracting and retaining talent. Businesses need to ensure a competitive benefits package compared to industry standards, while recognizing and honoring employees’ achievements through recognition events, annual awards, or peer review programs.
Additionally, additional perks like extra paid vacation days are also effective ways to boost morale and build loyalty. Furthermore, providing career development opportunities like training, mentoring, or a clear path to advancement is key to keeping employees engaged with your organization.
Source: https://baodautu.vn/tao-buoc-nhay-voi-san-va-giu-chan-nguoi-tai-d231902.html
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