ANPHABE SURVEY REPORT

SENIOR EMPLOYMENT TRENDS 2013

Feb, 2013

Survey Objective
In challenging context of both region and world economy, Vietnams economy has been experiencing many difficulties recently and still facing new challenges ahead in 2013. Human resources (HR), especially senior human resources hold important role with direct impact to how businesses in Vietnam restructuring to overcome dificulties. Therefore, the trends of labor movement and market changes are critical for business leaders when preparing business plans and HR strategies for the next phase. In order to get senior labor market perspective in Vietnam and labor movement trends if any which could help senior professionals view full picture of the high-level job market as well as help business leaders prepare effective HR strategies, Anphabe has conducted a dual-online survey on Senior Employment Trends 2013 from Jan 5th Feb 5th, 2013. Beside Quantitative statistics, Anphabe also presents in this Report some key Qualitative sharings from seasoned experts to provide more valuable market insights to our readers.

Survey Participants
The Survey Invitation was sent to 55,000 Anphabe members and 30,000 professionals who are currently joining Anphabe groups on different online channels Total number of completed responses: 3,361 persons

Anphabe Survey Report Senior Employment Trends 2013 Copyright Anphabe.com

Aside from the survey on senior labor group, Anphabe conducted parallelly another survey with a group of 11 reputable Headhunt companies recognized as Top headhunt in Vietnam. Those currently are senior recruitment partners of most top organizations in Vietnam. Statistics from the 11 companies are considered qualified to reflect the senior recruitment need at all key positions of all key industries. 11 surveyed Headhunt companies are: Manpower Vietnam, Harvey Nash, Le & Assocites, Infinity HR, RGF, Faro, Robert Walters Vietnam, VTalent, Grey Finders, Career Planning, Talent Viet.

Key results
** In 2013, overall demand of senior recruitment will NOT DECLINE and will still be growing in certain areas. In the 11 surveyed Headhunt companies, 6 companies (currently serving 55% of total 11-companyrecruitment orders) optimistically forecast senior recruitment market will still grow from 10 to 20% in the next 6 12 months; 4 companies (currently serving 32% of total 11-company-recruitment orders) estimate that senior recruitment demand will remain unchanged in 2013; only 2 out of 11 companies (currently serving 13% of total 11-company-recruitment orders) anticipate that senior recruitment demand will reduce about 15%. Sharing about the reason why still quite being optimistic about the growth of senior recruitment market in 2013, representatives from top headhunt companies said:

During crisis time, therere stilll many businesses, both local and foreigned invested ones, have dealt well with economic difficulties thanks to their strong foundation. They even take this chance to move faster compared to weaker competitors and as a result, still achieve 2-digit growth. RGF is currently the senior recruitment partner for quite many companies like that. We often receive recruitment orders from our clients to find good talent to supply for their next sustainable growing phase. (Mrs. Nga Vng, Director, RGF Vietnam) In economic crisis time, human resource market in general is impacted due to companies reduce their workforce, therefore labor supply in some areas is much higher than labor demand. This is not totally true with the segment from middle management and above. During this period, companies are even in much need to be led by experienced leaders who can help them increase
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their competitive power and over come the turbulence phases. Besides, the Japanese investment wave after withdrawing from China market has been intensified especially since last year will help increase the demand of skilled workers in the next several years. We therefore anticipate that senior recruitment market will keep growing and now is the time business leaders take a serious investment into the quality of their senior workforce. (Mrs. Truong Hong Tam, Director, Harvey Nash Vietnam) Many organizations in Vietnam are focused on optimizing their productivity level, they are aware that middle management is the key to this being a success. Hiring quality middle managers will help drive productivity and the business forward. This is a similar trend in many countries, where there is a focus on managing costs, balanced with the investment of hiring experienced management talent to help drive productivity and therefore increase profits. As more organizations focus on budgets and see wage inflation and manufacturing costs increase in countries like China, Vietnam could well benefit as more investment is made by foreign firms in the country. These interests from multinationals have been expressed by their expansion or setting up of manufacturing facilities in the country, which will lead to an increased number of job opportunities. (Mr. Mark Ellwood, Managing Director Southeast Asia, Robert Walters)
** The Senior Recruitment Market will witness diversified movements between industries, job functions and job levels: By job level, demand for executive management level (C-level/Vice President) will decline but demand for middle management (Manager/Director) will still increase. There will be no significant change for recruitment need at expert level compared to that of 2012. In 2013, beside the continued growing recruitment needs in Sales, Marketing and Human Resources, the demand tends to increase in Purchasing/Supply Chain and Manufacturing, especially at Manager level. This answers well the fact that today businesses become more focus on system management to improve business productivity through cost savings and process optimization. Compared to other functions, Finance/Accounting and Legal will have a decrease in demand and mainly focus to recruit at Manager level if any. Demand still remains in IT but mostly for experienced professionals, not for management level. Recruitment needs for Manager and skilled engineers working in factories at industrial zones are seen increasing, especially in foreign invested industries and Japanese companies. Industries in need of senior labor are continue to be FMCG (Fast Moving Consumer Good) and Pharmaceuticals. Besides, the demand will also increase in Education, Manufacturing, Health Care and Hospitality/Tourism. Several surplus labor industries will reduce recruitment needs this year are Banking, Real Estates, Financial Services, Construction and Information Technology. These are also the industries that had been experienced most difficulties over the past time.

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Industries INCREASING demand

Industries DECREASING demand

Fast Moving Consumer Good Pharmaceuticals Education Manufacturing Health Care Hospitality/Tourism

Banking Real Estates Financial Services Construction Information Technology

** Compensation and Benefit trends: In 2012, FMCG, Pharmaceutical and Oil & Gas are top 3 industries in compensation and benefits increasing. Besides, many companies in Banking, Electronics industries still offer top rated package for several management positions despite difficulties. However, many of these businesses gave much lower than expected year-end bonus due to their under-delivered performance vs. business goals. In 2013, FMCG, Pharmaceuticals and Oil & Gas are forecasted to remain top 3 industries giving good salary increase. Next, thanks to the development of Retail/Trading, E-Commerce and Online Games, businesses in these industries will have a positive salary increase rate. Salary increase will happen differently between departments and job levels. Marketing, Sales and Finance as usual are the 3 functions with highest salary increase rate. In 2013, salary increase will be more at Manager and Director levels while there will be NO significant increase for experiened level as well as executive management level.

** From the surveyed group of senior labor, up to 54% want to change for a better job this year. Only 5.2% feel totally satisfied with their current jobs. There are many different reasons that lead to this fact. Thought its hard to make qualitative statistics, some of which can be mentioned like: shrinking organizations cut out their labor force;

compensation and benefits are either frozen or not increased as expected, more work pressure due to business difficulties, employees dont see future opportunities within current organizations, etc

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Also in this group of senior labor (job level from Manager and above), Accounting/Finance and Purchasing/Supply Chain functions have the lowest rate of job satisfaction. These groups are also the ones with the highest needs of changing job (59.21% and 64.38% respectively). However, senior labor in Accounting/Finance will have difficulties in finding new jobs due to low recruitment demand as forecasted this year. Different from non-management group who usually considers Salary and benefits is the first reason for job change, management group considers quite a few other factors. Listed by importance, they are Meet their long-term career goals (44%), Right job role and responsibilities (17%), Working environment and leadership style (14%). Salary and benefits only ranked 4th place (12%).

About the issue of low job satisfaction workforce and how to retain talent, Anphabe would like to present some sharings from a business leader as follows:

Fire proves gold, adversity proves men - its never been this true to both employees and employers. However from employee side, its in this difficult and challenging time, we can see the real power and the ability to survive and grow sustainably of certain businesses to choose a
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suitable and long term work place. On the other hand, dont quit just because of temporary reasons like more difficult tasks, more effort requirements, unsatisfied salary and bonus due to short term under- delivered business results, etc. Employees departure now are considered by current and future employers as their surrenders to difficulties. From employer side, we need to have transparent and timely communications across the company; organize activities that promote employee ownership like sharing, getting ideas on company strategies, so that they feel their roles, their importances and contributions to company in overcoming difficulties. The whole workforce unity to survive sustainably during tough time creates employee attachment and love to their companies. Besides, its in tough time that employers realize true talents who can turn difficulties into opportunities and committed to their companies, which is not as easy to spot during peace time. Therefore, companies also need to have recognitions program, not necessarily in money, for ones who show passion and commitment. (Mrs. Truong Bich Dao, HR Director, Nestle Vietnam) To retain talent in tough times, companies should first focus on internal communications managers should be more open, sympathize with employees, regularly update business results to avoid employees concern, any message delivered should be positively and cautiously though to build trust in them. Companies should also create internal projects or task force across functions to encourage employees to actively take lead of these projects. For example, improving cost efficiency, deliver excellent customer service ... these will help improve the company performance in difficult times as well as the sense of responsibilities in employees. Besides, companies should recognize and reward positive results. For employees, they should not be pessimistic and depressed at work. On the contrary, they should take initiative to propose new ideas which could help companies overcome difficulties or take part in projects/tasks that others are afraid to do. If looking at the positive side, this is the promotion opportunity, especially when the company scales down or restructures. (Mr. Tran Duc Huy, CEO, Vinh Tuong Industrial Corporation)
** Mass-job recruitment websites are NOT evaluated as most effective job-search channel by senior professionals. When searching for a job, senior professionals prefer to choose key job-search channels as follows (listed by order of effectiveness): Contact friends, colleagues to ask for job opportunities and referrals (38%), Contact headhunters for top jobs and send them resumes (33%), Search

jobs on mass-job recruitment websites (24%).

Senior professionals have fairly clear expectations about job search channel:

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70,4% of surveyed participants used to find jobs successfully through headhunt companies who they considered as those deeply understand about human resources market, able to provide useful job advice and career orientation (74,8%) and those could hep me find the right job effectively and quickly (70,4%).

** New trend: Professional Online Networking Websites are becoming useful career information channels for senior professionals Since Friends & colleagues referrals is ranked as the most effective job-search channel, there are more and more senior labor joining professional online networks recently. 82,2% of surveyed management professionals are currently joining 1 to 3 professional online networks, both in Vietnam and international, only 17,8% said that not yet resgister for any network due to lack of information, time or have no need to join yet. Different from mass-job websites which contains all level jobs for mass audience and only offer one way communication; professional online network websites are being seen as an open career communication channel, interactive career platform that allows members to connect better to each other as well as new carreer opportunities, even when theyre not actively looking for a job. Key benefits are seen as below:

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Executive Summary
Based on surveys key results and contributed expertssharings, Anphabe would like to make some suggestions for your reference: For Senior Professionals: There will be still many high-level career opportunites for qualified senior labor in 2013. Aside from selecting the right function that fit with your expertise, senior professionals should research on companys industry and market demand, development trend of that specific area to increase chances of getting big jobs as well as future career development. In human resources market, especially in some cetain industries and functions which have a high labor supply, companies have many talent choices and will not willing to win a talent at any price. Therefore, job seekers shouldnt require high salary jump when changing job. Long-term career development is more important. Whereas many employees might have a feeling of job dissatisfaction, those who show high commitment and put extra effort to help company overcome current difficulties will have a higher chance for promotion opportunities in the near future. When seriously looking for a new job, senior professionals should often update about market information and build necessary professional relationships with reputable headhunters in order to get useful career advice instead of being passive waiting to be contacted or only proactively contact headhunters when already in urgent need. Using professional online network website is a good trend for senior professionals to effectively connect with friends, get update about market and new career opportunities even when they dont actively look for job.
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For Companies who are in need of hiring senior talent: Finding right talent in difficult times is critical. Therefore, companies should always invest appropriately of its time, effort and resources on senior recruitment. In tough times, companies have better chance to recruit good talent at reasonable cost, especially in industries and functions that talent supply is higher than demand. At the same time, often getting updates about labor market movements and recruitment trends will help companies prepare effective and competitive strategies of talent recruitment and retention. Also in the tough times, companies should always focus on internal communications and corporate culture building because this is the period that employees have a lot of tiredness, stress and instability. Open communication, transparent information, sympathize with employees difficulties and recognize their achievements, however small it is are several ways that HR and business leaders could encourage employees spirit and retain talent effectively. Most of senior labor will approach headhunters when they want to change jobs, hence companies should set right budget for this recruitment channel. Instead of working massively with many headhunters, companies should select a group of reputable headhunt firms; treat them as strategic senior recruiting partners to share comprehensive information; hence help recruite more and better talent. Recruitment through professional online networking webites is an uptrend in developing countries which should not be ignored by Vietnam companies. Companies should start to shape a strategy of developing employer brand, attracting and building relationships with potential candidates through this channel.

ABOUT ANPHABE.COM Anphabe.com is Vietnam largest online network of management professionals currently connecting more than 55,000+ members. Believing Success shared is Success multiplied, Anphabes Mission is to connect millions of management professionals to their next successes through valuable contacts, useful management knowledge and worthy career opportunities. At Anphabe.com, members can connect to friends, colleagues and many new valuable contacts; meet and learn directly from experienced leaders and experts at Share to Succeed forums and events; access to hard-to-find senior recruitment opportunities and prestigious headhunters at Vietnams only headhunt portal Anphabe Top Headhunt and many special introduction pages of top employers. Anphabe.com doesnt charge membership fee. High level professionals can register membership easily at www.Anphabe.com For reference: Anphabe Discussion

: http://www.anphabe.com/discussions
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To use the content of this survey, please ask for Anphabes permission. Any comments, questions relating to survey Senior Employment Trends 2013, please contact: Thanh Nguyen Founder & Chief Opportunity Connector - Anphabe.com Thanh.Nguyen@anphabe.com

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