Starting in late February, at peak in March to April and last until May is what so-called the “recruitment season” in Vietnam, applicable in most industries. During this 3-months period, the job market is booming significantly and is extremely dynamic. This can be illustrated by comparing the number of job posted on Vietnamworks, the biggest job website in Vietnam, in February and in April last year:
It is clear that there is a significant increase in the number of job opportunities in all categories during this recruitment season, ranging from 30% in Software and Administrative to 50% in Sales or even 63% in Marketing. That is on the labor demand side. On the labor supply side, a similar trend is also observed. From my experience, job application rate is appropriately 50% higher during the recruitment season.
- In Vietnam, the fiscal year is the same as the calendar year. February is the time when the new fiscal year budgets are finalized and coming open, which may lead to the new demand of recruitment.
- February and March are also the graduation time of many universities in Vietnam, pushing a whole bunch of fresh graduates into the labor market.
- February is the time of Tet, the start of the lunar new year when employees re-evaluate their current work and life situation and plan for the future. In Vietnamese culture, the start of the lunar new year is also a good time to start new career plan and objectives.
- Tet in February is also bonus payout time (the 13th month salary). Once employees receive their year-end bonus, they know that they can’t get another bonus for a full year. This payout reduces their incentive to stay at their current firm.
- Tet holiday in February also provides employees with a lot of networking opportunities which may lead to new job opportunities.
- Most companies in Vietnam implement their performance appraisal and salary adjustment in January. Employees who are disappointed with their salary adjustment will start looking for new jobs in February.
- The last but not least reason is the fact that the increase in job hopping also increase the number of job opportunities since companies need to fill up the empty vacancies, which in turn, may encourage more job hopping.
- Understand the nature of this recruitment season and be prepared for it in terms of budget planning, project planning and resource planning.
- HR and managers should pay more attention to staff’s motivation and morale during this time.
- Have some kinds of counter-offer policy to keep key employees in case they receive job offer from other companies.
- Keep employees busy with their work during this time. Employees who have a lot of free time are more likely to look around for other job opportunities.
- Schedule the performance appraisal and salary adjustment in June or July, when the recruitment season is over.
Alright, so are you now ready for the upcoming recruitment season in Vietnam?