By Ashutosh Agarwal, Manager, Global Benefits, GoGlobal
Vietnam has become a hot spot for international investment and hiring, with a recent McKinsey report highlighting the country’s strong economic outlook. Known as an emerging IT outsourcing powerhouse, Vietnam attracts companies across industries due to its high technology adoption and skilled workforce.
But with one of the lowest unemployment rates in the world, competition for talent can be fierce in Vietnam. Employee satisfaction is also relatively high, making it more difficult for companies to entice top talent to switch employers.
As companies look to expand into Vietnam, offering competitive compensation packages is essential for attracting the best employees. In the first installment of this guide, we covered statutory benefits like social insurance, health insurance and unemployment insurance. However, companies aiming to stand out in the competitive Vietnamese job market must go beyond statutory requirements.
In this installment, we focus on supplementary benefits—additional perks that can differentiate your business and help you attract and retain top talent in Vietnam.
The role of supplementary benefits in Vietnam
With Vietnam experiencing a talent crunch, offering comprehensive employee benefits has become more than just a compliance issue. It’s a critical component of a successful talent acquisition strategy. Beyond basic salary, employees today seek perks that improve their quality of life, support work-life balance and offer long-term security.
Supplementary benefits are a powerful tool to address all of these needs.
In major cities like Ho Chi Minh City and Hanoi, where competition for skilled workers is particularly intense, offering supplementary benefits can give your company a significant advantage. As a result, businesses looking to attract top professionals, including expatriates, are incorporating these benefits into their compensation packages to enhance their appeal.
Here are some key supplementary benefits that can help you stand out in Vietnam’s competitive labor market:
Private health insurance
While Vietnam’s statutory health insurance program is mandatory, many employers choose to offer private health insurance as a supplementary benefit. This provides employees with access to more comprehensive healthcare services that may not be fully covered by the national program. Private health insurance often includes additional coverage for dental, vision and specialized treatments. It can provide peace of mind for employees and their families.
By offering private health insurance, employers demonstrate their commitment to employee well-being. This offering is appealing to both local employees and expatriates who may be more accustomed to robust healthcare plans.
Housing allowances
Housing costs in major cities like Ho Chi Minh City and Hanoi can be significant, particularly for expatriates or employees relocating from other regions. Providing housing allowances or subsidies can be a highly attractive benefit, helping employees manage their living expenses.
This is particularly beneficial for international companies hiring expatriates, as housing support can ease the transition to Vietnam. This perk can make the company more appealing to foreign professionals. Even for local employees, a housing allowance can improve employee satisfaction and retention by reducing financial pressures.
Relocation support
For businesses looking to attract talent from different regions or countries, offering relocation support is a key supplementary benefit. Relocation packages can cover moving costs, temporary accommodation and even family resettlement assistance. This helps employees focus on their new role without worrying about the logistics and financial challenges of relocating.
Relocation support is particularly important in Vietnam, where top talent may be concentrated in certain areas. Moving skilled professionals from other regions or countries is often necessary in Vietnam. By easing the transition process, companies can make the relocation offer more attractive to the right professionals for the job.
Education support
Education benefits, especially for expatriates, are highly valued in Vietnam’s competitive job market. Covering the costs of school fees for employees’ children can significantly enhance your company’s attractiveness to foreign professionals and senior-level executives. Companies can choose to cover costs for international schools or reputable local institutions – or both.
Providing education support can ease the burden of schooling costs for expatriates, making them more inclined to consider positions in Vietnam. This benefit is particularly helpful if they are relocating with their families. It demonstrates a long-term investment in employees’ personal and professional lives, which is especially appealing for those seeking stability.
Wellness programs
In today’s work environment, wellness programs have gained immense importance, reflecting a growing awareness of the need for work-life balance and mental health support. Companies in Vietnam are increasingly offering wellness benefits such as gym memberships, mental health counseling and access to wellness services like yoga or meditation.
These programs show that a company is committed to the holistic well-being of its employees – not just their professional performance. By promoting physical and mental health, wellness programs can help reduce absenteeism and increase productivity. Over time, this can foster a positive company culture and make your business a more attractive place to work.
Bonuses and incentives
While Vietnam mandates 13th-month salary payments, companies can differentiate themselves by offering additional financial incentives. These may include performance bonuses, equity compensation, profit-sharing schemes or mid-year bonuses. Such supplementary financial perks can boost employee morale and motivate employees to stay with the company longer, reducing turnover.
Offering these bonuses can also create a performance-driven culture, where employees feel rewarded for their contributions to the company’s success.
Reassessing your approach to benefits
In Vietnam’s fiercely competitive labor market, local and international companies are all vying for the same talent. To stand out, a robust and comprehensive benefits package is essential. Now is the right time to reassess your benefits strategy and align it with the evolving expectations of today’s workforce.
Incorporating supplementary benefits not only strengthens your employer brand but also enhances your ability to attract and retain exceptional talent. A satisfied and loyal workforce can drive your business forward, fostering innovation and growth.
By prioritizing what truly matters to employees, you distinguish your organization in a crowded marketplace. Invest thoughtfully in the right benefits – and watch your organization thrive in Vietnam’s dynamic landscape.
Contact us today to discover how the GoGlobal Global Benefits Team can help you design benefits that fuel business expansion and hiring in Vietnam.