Vietnam Salary Survey: Local bosses underpaid relative to their MNCs peers
In 2015, the pay difference at management level between local companies and MNCs is still substantial – at 36%, according to the annual remuneration survey released this week by consulting firms Mercer and Talentnet Corporation. This is likely attributable to the fact that MNCs focus on offering higher salary to management positions to fairly compensate for their larger contribution. Even though paying lower than MNCs, local companies are willing to be more flexible in pay to compete with MNCs for key talents. Local companies can pay above their salary range and use long term incentive tools such as stock grant, stock option, or long term cash to attract talents.
The survey also reveals that Chemicals, Life Sciences and Manufacturing are the top 3 industries providing the highest salary increase rate in the market, slightly above 10%. On the other hand, Oil & Mining, Financial Services (Non-Banking) and Hospitality (Hotel) report the lowest salary increase rate, around 6% to 8%.
It’s also worth noting that sales manager, senior sales executive and marketing manager continue to be in the top list of the hot jobs to recruit. The most difficult positions that companies have to retain are senior sales executive, sales manager and senior marketing executives.
Mercer and Talentnet surveyed 520 well-established MNCs and leading local companies across a range of sectors, among them High Tech, Consumer Goods, Chemical, Manufacturing, and Life Sciences . With remuneration data of 211,816 employees across Vietnam, Mercer – Talentnet TRS continues to be the largest and the most comprehensive salary report in Vietnam.
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