Winning in vietnam hay group connie ma 2009

Winning in Vietnam 27th February 2009, AmCham, Sheraton SingaporeConnie MaVietnamese Economy and Inflation one of the highest in Asia ( 2008 )2© 2009 Hay Group. All Rights ReservedRising Salary Increase triggered by Rising Inflation in 2008/092009 Inflation forecast average is about 10%Source: EIU & PayNet 200 38© 2009 Hay Group. All Rights ReservedSalary Movements - Sector4© 2009 Hay Group. All Rights ReservedCompensation ChallengesPay Differentials (Vietnam=1)6.05.5Ratio of Guaranteed Cash5.35.0Clerical/Production4.3Junior Management4.03.8Middle ManagementSenior Management3.2 3.03.02.32.02.01.81.51.61.51.3 1.3 1.41.2 1.11.21.11.01.00.0ChinaIndiaMalaysiaSingaporeHong KongSource: Hay Group PayNet, 2008 6© 2009 Hay Group. All Rights ReservedWhy job “steps” matter?1615Higher job14Higher jobHigher job13Lower jobLower jobLower job121 Step : „Career 2 Steps : 3 Steps : Risky Ladder‟ PromotionNormal/Solid Hay PromotionGroup “The logical next PromotionLevelstep”7© 2009 Hay Group. All Rights ReservedHay Group Salary Survey 2008 shows that Pay progression from one job to the next inmiddle management is 44% for VietnamPay progression comparison (1 Step Pay Difference) 60%Junior Management Middle Management Senior ManagementComparison - Base Salary50%44%el40%lev 40%t36%35%33%agemen31%31%30% 30%30%28%28%28%man27%ch 24%ea23% 22%22%ss20%o19%r20%18%17%ac 15%sion11%12%esrg10%orP ayP0%AustraliaJapanSingaporeHong KongMalaysiaChinaVietnamIndiaSource: Hay Group PayNet, 2008-10%9© 2009 Hay Group. All Rights Reserved1 step difference – middle management-by Job FamiliesAll OrgsLegalCorp. AffairsITEngH & EAdminMktSalesProdLogisticHRF&A100%94%Average Base Salary90%80%80%70%64%60%57%56%53%52%52%50%44%42%40%29%30%25%25%20%10%0%All Orgs LegalCorp. ITEngH & EAdminMktSalesProdLogisticHRF&AAffairsSource: Hay Group PayNet, 200810© 2009 Hay Group. All Rights Reserved