When it comes to doing business anywhere across the globe, including Vietnam, mid-level managers play important roles in an organisation’s operation such as retaining employees, resolving resolution, staffing, etc. Their roles are so critical that they can determine the success rate of a project. Unfortunately, hiring mid-level managers is also one of the biggest recruitment challenges in Vietnam that foreign companies have to encounter especially during the selection process.
The challenges come from the rising employee turnover and employment fluctuations, leading to increased costs and thus putting a huge limitation on resources and time. In this article, we will provide you with some insights on things you need to keep in mind about hiring mid-management positions in Vietnam.
Factors of Mid-Management Turnover in Vietnam
Higher Wages and Benefits Offers
Salaries, bonuses, benefits and other compensations are considered the major factors that cause an employee to quit their current position. While there are so many foreign companies in Vietnam and increased wage inflation, it is normal that some foreign companies are able to provide higher wages and benefits – luring employees to move on to the new company.
Increased Employment Opportunities
The growing economy in Vietnam has transformed the labour market thanks to the increasing foreign direct investments. New business and employment opportunities are created almost every day with new foreign factories, companies, and representative offices being set up in Vietnam.
Hence, the demand of workers is surging at a very fast rate. In fact, companies in Vietnam are now competing for employees, from labour workers to skilled staff.
Cultural Barriers
Cultural barriers can mean different business culture between the Vietnamese and the foreigners. It can also mean the language hurdles or living culture. Cultural differences can be a double-edged sword as they can create new ideas but at the same time they can lead to employee engagement issues.
Problems caused by cultural barriers in Vietnam include unsatisfactory performance, low morale and miscommunication. Foreign employers often do not expect to encounter these issues and sometimes will not know how to deal with them with the right solutions.
Ensuring Effective Performance of Mid-level Managers
It could not be emphasised enough that effective mid-level managers are key to provide early signal of any operation issues, as well as to provide solutions to overcome the issues. With that being said, foreign companies need to go through careful and stringent employee selection when it comes to hiring mid-level management candidates.
Select the Right Person
Screening and vetting mid-level managers have to be done by every foreign company in Vietnam. The process should include the assessment of candidates’ qualifications, experiences as well as capabilities.
Delegation for Mid-level Managers
Foreign companies must delegate tasks to mid-level managers and increase their participation in decision making process. By doing so, mid-level managers will feel and act more responsibly towards their job. They will then serve as a great communication medium between the top management and their subordinates.
Career and Personal Development via Training
Providing training for employee’s career and personal development is good investment that a foreign company can do. Training allows mid-level managers to hone their managerial skills or even develop new skills that can be of great help in issues such as decreasing employee turnover, dissolving conflicts, managing projects, etc.
Appreciation and Recognition
Just like other employees, mid-level managers need appreciation and recognition from the company in regards to their contributions. Mid-level managers who have received recognition from the organisation have shown to be more motivated, efficient and productive.
Other than increase work performance, mid-level managers also form positive relationships with their bosses, peers and subordinates.
Related article: Recruitment in Vietnam: Labour Market and Hiring Process
How can Cekindo Help with Recruitment in Vietnam
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