Business Report
HUMAN RESOURCES
Outline• Introduction
• Issues
• Differences between two countries
• The quality of labor market
• Alternative Solutions
• Recommendations
• Employee’s selection
• HR Assistant Officer
• Retain Employees
• Action Plan
Differences between two countries• Culture
• Australia – a multi-cultural country, Vietnam has united cultural values
• Vietnam, there are 56 ethnic groups and 5 religions
a huge question about the complexity of Vietnamese culture
HR Department needs :
• Workers who have deep understanding about Vietnamese culture
• Cohesive policy must also be developed
Labor policy
• The highest number of strikes laid on foreign invested enterprises
• The combination of rising inflation rate, unfair wage level and lack of
social security in these
• These strikes reduce the profit of firms, but also weaken firms’
reputation in the market.
Disadvantages for attracting foreign investment.
2001 2002 2003 2004 2005
Total 73 78 119 103 152
Government Enterprises 12 6 3 2 8
Foreign Invested Enterprises 40 49 81 74 105
Non-government Enterprises 21 23 35 27 39
The quality of labor market
Vietnam’s workforce is young, hard-working and quickly
adaptable
The three highest rated qualifications of Vietnam’s workforce
belong to Red River Delta, South Central Coast and South
East
HR department will need to recruit workers from other
provinces with much lower rates
Star Industries’ Position Descriptions
The quality of labor market• Turnover rate
• employees turnover at foreign invested firms has reached 15.8 percents,
which is relatively high
the lack of qualified workers and other opportunities elsewhere
Employees might experience pay drop or other social affairs
• average salary in FIEs in Vietnam was reported to increase by nearly
13 percent due to higher inflation
ALTERNATIVE SOLUTIONS Advantages Disadvantages
Average wage level
(USD)
Vietnamese (local)
employees
Low labor cost
Deep knowledge about Vietnam
Good behavior
Reduced other cost (housing,
transportation etc.)
Lack of skill
Difficulties in communication
(English ability)
High turnover rate
$200 - $500
Foreign employees Highly skilled
Familiar to working environment in
western companies
Good communication,
management and team-work skill
Lack of knowledge about Vietnam
Highest cost: salary; housing (as
they have to leave their own
countries); transportation and
others
Higher income tax
$1000+
Vietnamese
employees who have
experience from
overseas
Higher skill and experience than
local employees
More knowledge about Vietnam
than foreign employees
Higher salary than local
employees
High turnover rate
Working behavior and style might
be different than others
$600 - $1000
RECOMMENDATION• Employee’s selection
• Assigning experienced people from the mother company in Australia to
superior positions.
• The cost for recruitment and training local workers will be lower
• HR Assistant Officer and company’s lawyer needed
• A Vietnamese lawyer needed to help company get along with Vietnamese
regulation
• Co-operate with Vietnamese HR firms for working as HR Assistant officers.
RECOMMENDATION• Retain Employee
• Provides various training and tutorial for new employees
• Relocating Australian employees for superior positions guarantees
the quality of the management an employee receives
• Observing through training and working hours, identify and
approach the potential employees
Action PlanActivities Goal Method Cost
Time: 2011
Q1 Q2 Q3 Q4
Selecting employees to
relocate to Vietnam
Finding potential
employees
Persuasive or bonus
$2000 *
Hiring HR Assistant
Officer
Support and Working with
HR Department in
Vietnam
Co-operate with NIC Group, Net Viet Group or HR Vietnam
$5000 * *
Hiring Vietnamese employees
Choosing from 440 suitable candidates
(*)
Interview candidate with the assistance of HR assistant
officer
$13,000 * * *
Training new worker
Training program &
Special training if required
(**)
Lecture, workshops,
video conferencing
$30,000 * * * *
Coaching for team leaders
Instruct team leader
Base on Managers of
each department
$8000 * * *
Total $58,000
Conclusion
Reference• Brown, S 2009, ‘Understanding Cultural Differences in Business: How Differences in Culture Affect Business
Communication and Conduct’, suite101, viewed 22 December 2010,
• <http://www.suite101.com/content/understanding-cultural-differences-in-business-a117469>.
•
• Fitzgerald, W 1992, ‘Training versus Development’, Training and Development Journal, May 1992, pp. 81-84.
•
• Gross, A 2007, ‘Asian Cultural Diversity in Human Resource Management’, Pacific Bridge, viewed 24 December 2010,
• <http://www.pacificbridge.com>.
•
• Hofstede, G 1994, Cultures and organizations: Software of the mind, London, McGraw Hill.
•
• Investment Gateway to Vietnam 2010, Foreign invested enterprises fret over staff turnover, Invest In Vietnam, viewed 22 December 2010,
• <http://www.investinvietnam.vn/Default.aspx?ctl=Article&tID=2&pID=120&aID=2142>.
• Investment Gateway to Vietnam 2010, Vietnam’s Competitive Advantages: Human Resources, Invest In Vietnam, viewed 21 December 2010,
• < http://www.investinvietnam.vn/Default.aspx?ctl=Inv&tID=3&pID=128&aID=362>.