Adecco preview-2014-vn-labour-market-final

Adecco Preview of the

2014 Vietnam Labour Market

9 January 2014

By Nicola Connolly General Director

The world leader in staffing and human resource solutions

Topic Cover

An Adecco Preview of the 2014 Thai Job Market

28November 2013

Slide 3

The Asia Labour Market – A Perspective

South East Asia & The Pacific Region

Unemployment 4.4% in 2012

Source: International Labour Organization

CountryUnemployment

Rate (%)Data as of

Philippines 7.30% 2013 (June)

Indonesia 6.25% 2013 (August)

Taiwan 4.18% 2013 (September)

China 4.10% 2013 (September)

Japan 4.10% 2013 (October)

Hong Kong 3.30% 2013 (October)

Malaysia 3.10% 2013 (September)

South Korea 2.80% 2013 (November)

Vietnam 2.22% 2013 (September)

Singapore 1.80% 2013 (September)

Source: Countries' statistics

Labour Shortages

A Global Jobs Gap Of 67 million Since 2007

Source: International Labour Organization

In South-East Asia and the Pacific Region, economic growth is

projected to have accelerated to 5.2% in 2012 (from 4.6% in 2011)

Source: Asian Development Outlook 2012

… But the lack of available candidates is the most

pressing challenge

For 3 out of 10 employers in Asia, the lack of available

talent is what prevents them from hiring people

Source: Deloitte, PWC

85%

62%

59%

57%

50%

46%

46%

35%

0% 20% 40% 60% 80% 100%

Japan

Vietnam

Thailand

Hong Kong

Malaysia

Singapore

Taiwan

China

Companies in Asia Which Stated A Difficulty In Filling Jobs In 2013

Source: The Wall Street Journal, Forbes, PWC, Online Recruitment surveys

Reasons Why Employers Struggled To Fill Jobs In Asia in 2012 & 2013

0%

5%

10%

15%

20%

25%

30%

35%

Lack oftechnical

competencies

Lack ofavailable

applicants

Lack ofexperience Lack of

workplacecompetencies

Looking formore

pay than isoffered

Undesirablegeographicdestination

31% 32%

19%

28%

11%

5%

29% 35%

17%

28%

13%

6%

2013 2012

1 • Sales

2 • Engineers (all sectors)

3 • Accounting & Finance

4 • Researchers (R&D)

5 • Office Support Staff

Top 5 Professions In Demand In Asia In 2013

• Engineering

• IT

3 • Accounting & Finance

4 • Medical/Healthcare

5 • Energy

Top 5 Industries Growing In Asia In 2013

Source: Adecco

40% 40%

25% 24% 23%

18%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

ReducedCompetitiveness/

Productivity

Reduced Ability ToServe Clients

ReducedInnovation and

Creativity

Lower EmployeeEngagement/

Morale

IncreasedEmployeeTurnover

HigherCompensation

Costs

Impact Of Talent Shortages On Organisations in Asia In 2013

Concerns for Taiwan, Japan, South Korea, Hong Kong, China, Thailand Concerns for Singapore, Malaysia

Topic Cover

An Adecco Preview of the 2014 Thai Job Market

28November 2013 Slide 14

Adecco Vietnam Insights Labour Market 2013

Slide 15

Vietnam Economic Overview

Source: World Bank, Tradingeconomics.com

0

0.5

1

1.5

2

2.5

3

3.5

Unemployment Rate (%)

2012

2013

2014

0

1

2

3

4

5

6

7

8

Inflation (%)

2012

2013

2014

2.3 2.37

3.25

6.91 5.61

6.04

0

50

100

150

200

GDP (billion VND)

2012

2013

2014

123.96 158.86

175.43

0

5

10

15

20

25

30

GDP (% growth)

2012

2013

2014

20 28

10

Slide 16

Business Growth areas

Key sectors drivers

Tourism

Healthcare

Power

Retail/ FMCG

Education

Slide 17

2013 Demand VS Supply – By Job Category

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

%

Demand% Supply %

Source: Adecco Vietnam 2013

Slide 18

2013 Demand VS Supply

Source: Adecco Vietnam 2013

28.60

5.65 4.74 4.37

5.28 4.74

12.71

3.62

11.52 10.62 10.27

13.22

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

Sales Admin Engineering Accounting InformationTechnology

Marketing / PR%

% Demand% % Supply

Topic Cover

An Adecco Preview of the 2014 Thai Job Market

28November 2013 Slide 19

Vietnam Business Outlook 2014

Slide 20

Global trends affecting employment status in 2014

High unemployment rate

Production shifts

The increasing skills gap/shortages

Freelancing becomes a normal way of life

Internet creates larger marketplace for jobs

Slide 21

Labour Market 2014

• Reform training and education to better meet demand for skilled labour

Human capital development

• Strengthen the banking system by establishing effective supervision

Development of banking

sector

• Strengthen market-based reforms and monitoring of SOEs

SOEs reform

Summary of medium-term policy challenges and responses in Vietnam • Projected 6% – 8% salary increase

due to sluggish economy

• Harder for new entrants in the workplace to find jobs

• Longer recruitment cycle

• Focus on right hire

• Exiting of non performers

• Metrics on productivity and ROI

• Min wage insurance in Q3 2014 to 3,200,000 VND

Source: OECD Development Centre.

Slide 22

Moving Industry in 2014

1 • Automotive

2 • Health care

3 • FMCG

4 • IT

5 • Insurance

Slide 23

Top 5 - Office Position

1.Sales

2.Accounting & Finance

3.HR & Admin

4.Marketing

5.Customer Service

FMCG

Service

Consumer Products

Source: Adecco Vietnam 2013

Slide 24

Top 5 - IT Position

Source: Adecco Vietnam 2013

1.Programmer/Developer

2.System Analyst/Business Analyst

3.System Engineer

4.IT support

5.ERP Consultant/Project Manager

System Integrated

Software House

Service : Banking & Telecom

Slide 25

Top 5 - Engineering Position

Source: Adecco Vietnam 2013

1.Civil Engineer

2.Maintenance Engineer

3.Safety Officer

4.Electrical Engineer

5.Production Engineer

Power

FMCG

Electronics

Slide 26

Top 5 - Finance Position

Source: Adecco Vietnam 2013

1. Finance Director

2. Risk

3. Compliance

4. Accounting

5. Analyst

Insurance

Banking

Retail

Slide 27

Vietnam Forward Looking Statement

“It‟s a candidate-driven market for those with

specialized skills and who are

viewed as upwardly mobile in

their career.”

Slide 28

Adecco Top Tips

1. Clear headcount planning

2. Hire right

3. Good Benefits program, not just cash

4. Clear vision of company communicated to employees

5. Manage by productivity and KPIs

The Global Talent Competitiveness Index

2013

What is The Global Talent Competitiveness Index ?

• “The GTCI measures a nation‟s competitiveness based on the quality of talent it can produce, attract and retain. It will help countries monitor their progress over time and compare their performance to that of their neighbours and other economies.”

• Launched in Singapore this week on 26th November

• The GTCI introduces the dimension of talent/human capital and its connection to competitiveness.

• 48 variables are grouped into talent enablers, attraction, growth, retention as well as output in terms of labour and vocational (LV) and global knowledge skills (GK).

• The GTCI is the product of the joint effort with sponsors and knowledge partners from government, academia and industry and INSEAD joined forces with the Human Capital Leadership Institute of Singapore (HCLI) and Adecco.

Why The Global Talent Competitiveness Index ?

• To discuss about the challenges and solutions of talent growth, attraction and retention of over 100 economies.

• To help decision-makers, businesses and governments to better match talent with jobs.

• To confirm what we see on the ground: countries apply very different strategies to develop and retain talent.

Global Talent Competitiveness Index 2013 - Main findings

1. The global war for talent is on, and is uneven

2. Fostering talent competitiveness is a complex task, especially in poorer

countries

3. Upcoming „talent champions‟ are emerging

4. Global Knowledge Skills are critical and strategically important

5. Expect more changes in the coming years

Slide 34

An Adecco Preview of the 2014 VN HR Market 9 January 2014

Slide 35

The 2014 Content Strategy

• Women in the workplace

• Labour Code updates

• Talent Management

• Talent Attraction

• What’s HOT and What’s NOT?

• The New generation of workforce survey

• The World Cup – how to manage your employees?