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Shark Thuy talks about an overseas training center that resembles a 5-star resort and reflects on Vietnam’s human resource training

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Posted by Ngoc Thuy Nguyen

about 1 year ago

“While in South Korea, I had the chance to visit a corporate training center. On the outside, the venue looks like a beautiful 5-star resort while inside is where executives and employees from all over South Korea come every year to be trained.”

A foreign country’s enterprise: Human resource training is a business strategy

With the current labor shortage, human resource training is the solution of choice of many businesses. Compared to Vietnamese companies, FDI enterprises are showing a higher level of professionalism and a wide vision.

"Most FDI enterprises are very serious about training, because localizing the leadership is a business priority. With a local management team, the company will of course save the costs of transferring overseas executives," – said Ms. Nguyen Phuong Mai – Chief Executive Officer at Navigos Search – in a recent interview.

Ms. Nguyen Phuong Mai – Chief Executive Officer at Navigos Search

According to Ms. Mai, FDI enterprises often offer Management Trainee programs to nurture future managers. In addition, “there are also training schemes designed for employees of all levels to help them advance to higher positions."

Samsung Vietnam is well-known example. At a recent event, Mr. Bang Hyun Woo – Deputy General Director of Samsung Vietnam – said: "Investing in training and education for the company’s employees is one of our most important and long-term business strategies. We have always believed that investing in human resource will generate returns much higher than investing in facilities and equipment."

To illustrate how generously foreign companies invest in training, Mr. Nguyen Ngoc Thuy (Shark Thuy) – Chairman of Egroup recalled: "While in South Korea, I had the chance to visit a corporate training center. On the outside, the venue looks like a beautiful 5-star resort while inside is where executives and employees from all over South Korea come every year to be trained."

"We must think of human resource training as an investment, not an expenditure," he said.

Shark Thuy once compared investing in human resource and in the company’s growth to the chicken and egg situation. "When a company succeeds, more focus will be paid on its internal culture and training budget will be increased. However, in contrary, there must be focus on human resource training for a company to grow."

"Every business owner or employer must think of human resource training as an investment, not an expenditure," Shark Thuy concluded.

Moreover, investing in training helps boost productivity, as confirmed by many business leaders, including Samsung’s Deputy General Director who said: "I believe that an employee’s productivity depends largely on training and management."

Vietnam’s businesses: Still thinking of human resource training in the short term

According to Ms. Nguyen Phuong Mai, there are local companies who are handling this issue very well. However, she also said: "Some Vietnamese companies are still focusing on short-term investments. We should build proper long-term human resource strategies from recruitment to training and team building. I believe this is what Vietnamese companies can learn from FDI businesses."

While there are objective reasons why a long-term internal training plan is hard to achieve, one subjective cause is worth mentioning – mindset. According to Mr. Stephan Ulrich – International Labor Organization (ILO), businesses are still afraid that employees might quit and go to a higher-paying company after training.

However, Ms. Nguyen Mai Phuong believes that: "If you invest in training, the chance of keeping your essential staff is very high. That employee will be able to envision their future development, with professional skills and tools equipped by training to rise up in that same company. That’s the motivation for managers to stay loyal to their employers."

"An employer must think of training as a mid and long-term project that also requires assessment," said Ms. Ha Thu Thanh – Chairperson of Deloitte Vietnam. On the other hand, according to Mr. Thuy, a business must focus on training the senior management as they have the greatest impact on the company’s performance.

On top of that, Mr. Nguyen Ngoc Thuy also proposes: "The government should encourage private businesses to join the human resource training and development sector. These businesses shall become the main force helping to improve Vietnam’s labor productivity."

Businesses “complain” about shortage of skilled labor:

The 2017 PCI report shows that 55% of all businesses find it hard to recruit qualified skilled workers. According to the Institute of Labor Science and Social Affairs, on the other hand, two third of Vietnamese businesses claim that most of their staff are lacking necessary technical and other fundamental skills.

The result of a survey done by Navigos Search shows that “41% of Vietnamese businesses have difficulty finding qualified candidates for managerial positions." There is currently a fierce competition among companies over talents for these vacancies.

Source: Café F (http://bit.ly/2oSxgPW)