More Related Content Similar to Winning in vietnam hay group connie ma 2009 (20) Winning in vietnam hay group connie ma 20092. Vietnamese Economy and Inflation
one of the highest in Asia ( 2008 )
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3. Rising Salary Increase triggered by
Rising Inflation in 2008/09
2009 Inflation forecast average is
about 10%
Source: EIU & PayNet 20083
© 2009 Hay Group. All Rights Reserved
6. Pay Differentials (Vietnam=1)
6.0
Ratio of Guaranteed Cash 5.5
5.3
5.0 Clerical/Production
Junior Management 4.3
4.0 Middle Management 3.8
Senior Management 3.2
3.0
3.0
2.3
2.0
2.0 1.8
1.5 1.6 1.5
1.3 1.3 1.4 1.2 1.1 1.1 1.2
1.0
1.0
0.0
China India Malaysia Singapore Hong Kong
© 2009 Hay Group. All Rights Reserved Source: Hay Group PayNet, 2008 6
7. Why job “steps” matter?
16
15
Higher job
14 Higher job
13 Higher job
Lower job Lower job Lower job
12
1 Step : „Career 2 Steps : 3 Steps : Risky
Hay Ladder‟ Promotion Normal/Solid Promotion
Group “The logical next
Promotion
Level step”
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8. Hay Group Salary Survey
2008 shows that Pay
progression from one job
to the next in
middle management
is 44% for Vietnam
9. Pay progression comparison
(1 Step Pay Difference)
60%
Junior Management Middle Management Senior Management
Comparison - Base Salary
50%
44%
Pay Progression across each management level
40%
40%
36% 35%
33%
31% 31%
30% 30%
30% 28% 28% 28%
27%
24% 23%
22% 22%
20% 19%
20% 18%
17%
15%
11% 12%
10%
0%
Australia Japan Singapore Hong Kong Malaysia China Vietnam India
Source: Hay Group PayNet, 2008 9
© -10% Hay Group. All Rights Reserved
2009
10. 1 step difference – middle management
-by Job Families
All Orgs Legal Corp. Affairs IT Eng H&E Admin Mkt Sales Prod Logistic HR F&A
100%
94%
Average Base Salary
90%
80%
80%
70%
64%
60% 57% 56%
53% 52% 52%
50%
44% 42%
40%
30%
29%
25% 25%
20%
10%
0%
All Orgs Legal Corp. IT Eng H&E Admin Mkt Sales Prod Logistic HR F&A
Affairs
Source: Hay Group PayNet, 2008 10
© 2009 Hay Group. All Rights Reserved
11. 2 steps difference
HRL 17
HRL16
HRL 15
Average 2 Steps Pay
Progression is 83%
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12. 2 steps difference – middle management
-by Job Families
All Orgs Sales H&E Cust Svcs Logistic IT Eng QA HR F&A Prod Mkt Project Mgt Corp. Affairs Admin
140%
120% 117%
113%
99%
100% 94%
83% 83%
79%
80%
69% 68% 68% 66%
65%
60%
42%
40%
38% 36%
20%
0%
All Orgs Sales H&E Cust Logistic IT Eng QA HR F&A Prod Mkt Project Corp. Admin
Svcs Mgt Affairs
Source: Hay Group PayNet, 2008 12
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13. Average age of employees working
for MNCs in Vietnam
On average, senior
managers in Vietnam
are 5 years younger
than their Asian
counterparts
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14. Average age of employees working
for MNCs – Junior to middle management
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15. Average age of employees working
for MNCs – Middle to Senior Management
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17. Successful companies managed their
compensation practices better
Top 3 differences between high & low performing companies
High Performer Low Performer
Implement the right combination of 70%
variable and fixed remuneration 38%
Develop an effective incentive plan 70%
for Managers 13% Largest Gap
Establish a clear link between 59%
individuals‟ compensation and
performance 25%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Source: Hay Group‟s Winning in Vietnam report, 2008
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18. Six Challenges faced in Vietnam
Establishment of 54%
government relationships
71%
Protection of Intellectual 55%
Property 73%
Fierce competition in 65%
Vietnamese market
79%
The biggest challenge is people
Shortage of skilled
Vietnamese workers
44%
72%
Shortage of local
management talent management 46%
84%
Differences in Culture
54%
49%
0% How well is your firm coping with this issue? 90%
How significant is this to your firm's operation?
© 2009 Hay Group. All Rights Reserved Source: Winning in Vietnam, 2008 18
19. Strategies for people management in
High Performing companies
13%
Match employees to jobs based
on required competencies
57%
Develop an effective incentive 13%
compensation plan for
executives and managers 70%
13%
Improve skills and competencies
of managers
63%
Low Performing 0% 20% 40% 60% 80%
High Performing
© 2009 Hay Group. All Rights Reserved Source: Winning in Vietnam, 2008 19
20. Organizations’ biggest concerns:
1. Retaining Top Talent / Critical Skills
2. Maintaining / Affording Competitive Pay
3. Maintaining Employee Engagement / Motivation
4. Career Development / Training
5. Recruiting Top Talent / Critical Skills
The New PIT implemented in January 2009
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21. In Closing
Pay attention to your high
performers. These are the
people who build your
business. Your competitors
are eyeing them.
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