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>.