Recent report published by Vietnam human resources recruiter, Navigos Group suggested that the retail sector is facing a high rate of employee turnover. This finding indicates a hampering result from firm’s long term development.
According to the study, 28 percent of retail industry recruiters said that their employees failed to make long-term commitments, while the other 49 percent said that their employees often move from one job to another. Additionally, candidates in the industry often leave their current positions when rival companies in the same industry invite them to work in their firms. As much as 60 percent respondents said that the average employee works only for two or three years.
Related to the report findings, Managing Director of Navigos Search under Navigos Group, Nguyen Phuong Mai said that that if companies want to build an effective culture, they should identify the core values of the business and build from there. However, the problem might lie in the fact that ensuring company-wide awareness of values can be difficult if employees are transient.
Ms Mai said, “In order to minimise the job shift rate, companies need to focus on two factors: developing a leadership team with human management skills and regularly providing training courses to develop human resources”.
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Meanwhile, chairman of the management board of the Saigon Union of Trading Co-operatives (Saigon Co.op) Diep Dung said that the company’s development strategy for the next few years will focus on maintaining its role as one of the leading domestic retailers, while expanding into wider new markets. The company added that its workforce will play a critical role in the success of implementing the strategy, Vietnam News reports.
“To achieve this goal, Saigon Co.op will focus on five solutions based on one of the fundamental foundations, which is management teams and human resources,” he said.
Saigon Co.op has carried out a diversification within its organisation. In part of the efforts to promote business performance and achieve stable development, it focuses on training and developing its management teams and human resources.
Not only the retail sector, but also many other industries and sectors in Vietnam face challenges in dealing with human resource management in the digital age, said Bui Thy Huong, human resource director at Price Waterhouse Coopers (PwC) Vietnam.
Given the current state of rapid development of new technology, the traditional hiring processes might no longer be sufficient to help companies identify future leaders. Owing to the reason, Mr Huong said that there needs to be flexible human resource management strategies that can take advantage of technological change.
Debanjan Sen, human resources director at Deloitte Singapore, stressed that companies applying high technology to their human resource management have low rates of job resignations. For example, while HP Inc’s rate of job resignation was 10 percent, the rate was doubled (20 percent) in other companies in the same industry, said Debanjan Sen.
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