Inflation pushes companies to raise salaries
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A recent survey conducted by Navigos Search showed that up to 54 percent of respondent businesses had increased staff salaries by between 11 and 15 percent in 2011.
In 2010, just 40 percent of surveyed companies said they had raised salaries.
As many as 81 percent of the companies surveyed said they considered inflation as a salary adjustment factor.
The survey was conducted on 116 companies operating in Vietnam , to determine common human resource practices in coping with inflation challenges, Navigos Search Managing Director Nguyen Thi Van Anh said.
The one-month survey was named, “HR strategies during inflation” –however the headline factor was ranked second among the four fundamental factors in salary consideration.
Individual performance was regarded as the top salary adjustment factor.
In this regard, 62 percent of surveyed companies had increased salaries for professional levels by between 11 and 15 percent, compared with 50.5 percent last year.
More companies gave management-level staff a higher salary increment. In 2010, only 17.6 percent of surveyed companies adjusted the salary for managerial staff by more than 15 percent, while this figure increased to 27 percent in 2011.
Van Anh said, “Hiring the right talents for management positions is difficult, but how to retain them is even harder, which has always been a concern of business leaders. Beside many other factors like training and development as well as improving the work environment, companies are willing to adjust salaries for management-level staff to stay competitive in the market”.
The survey also showed a good sign for employees, as the percentage of companies which had an average salary increment rise below 10 percent dropped significantly in 2011: 26 percent against 31.5 percent in 2010 for management level, 23 percent compared with 34.3 percent for professional level, and 32 percent compared with 48.6 percent for general staff level.
