Millennials, who were born between 1980 and 1996, are considered a substantial part of the workforce in Vietnam. However, most of them only work for a company for two to three years each.
The information is disclosed by Ms. Nguyen Phuong Mai, Managing Director of Navigos Search, at a recent seminar on the quality of Vietnam labor force.
Quoting data from VietnamWorks, Ms. Mai remarked on the steady increase in the demand for employees. The growth between 2016 and 2017 was 20 percent. However, the supply seems unable to keep up. Specifically, the supply of workers increased by 14 percent only, making it challenging for companies to hire new employees.
The labor supply depends largely on millennial candidates, who were born between 1980 and 1996. 26% of the Vietnamese population were born within this period, said Ms. Mai, and that companies should pay special attention to this generation.
Millennial employees don’t demonstrate long-term commitment to their employers. Research conducted by Navigos on 3,000 candidates revealed that 69% of millennial employees are ready to accept new offers. Over 70% stated that they plan to work for two to three years before switching jobs.
Fortunately, candidates from this generation are characterised by a growth mindset. 63% cited development in expertise and skills as a reason for employment. This is especially noteworthy for companies looking for new talents.
On the other hand, 41% of companies find it challenging to recruit employees for managerial positions. The reason is a shortage of employees with high level of expertise in this particular segment. Proficiency in foreign languages is another challenge. While “foreign languages” often refer to English, it is now common for employers to also require Korean and Chinese. Other issues arise due to the lack of soft skills in candidates.
“The supply of candidates for managerial positions is lacking in both quality and quantity,” said Ms. Mai. The problem is more than a mere shortage of supply, but also due to the brain drain to start-up companies.
Managers leave their companies, while encouraging their colleagues to leave in order to start a new company together. The phenomenon has made the competition for candidates fiercer than ever.
Another common problem is job switching, said the Managing Director of Navigos. The shortage of supply has given candidates more choices and increased their mobility between jobs, and this is also characteristic of employees in this group.
“Candidates do not work in one company long enough to acquire an expertise and take their performance to the next level,” said Ms. Mai, “therefore new companies find them inadequate and inexperienced, and are reluctant to employ them, thus creating a vicious circle.”
Two consequences can be inferred from such phenomena. First, companies will likely have to make a great deal of effort in retaining their talents. Second, this poses a threat to candidates themselves.
The solution to this shortage of employees is the cooperation among four parties, namely legislators – educational institutions – companies – recruitment and media agencies.
To be more specific, legislators should establish new policies encouraging the participation of educational institutions and employers in vocational education and training. Educational institutions should engage more actively in constructive dialogue with companies to gain more practical information on the market and required skills. Employers, on the other hand, should provide helpful information to educators, and work together to deliver more accurate predictions that help match supply and demand.
Source: Café F (http://bit.ly/2nlOViy)