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66% Think CEO undervalues the top HR Leaders
So how HR adds value to the CEO?
How HR adds value to the CEO?
By Tam Truong
Director - Business Process & HR Services
Harvey Nash Vietnam
Contents
Survey findings
Board’s HR priorities vs HR’s focus
Labour market trends
Recruitment
Employee engagement
Talent management
Conclusions
C-Level HR: 13%
Head of HR/VP: 35%
Sr. Manager: 20%
Other: 32%
1,250+ respondents
217 From
Vietnam
5TH
Year of
publishing
17% global
responsibility
65%
ARE FEMALE
ARE 50+ YEAR OLD
54%
ARE MEMBER OF THE BOARD
3% 64% 66%
Global
VN
22%
About the survey
Board’s HR Priorities vs HR’s Focus
Global Result 2015 2014 2013 Annual change
Talent management 61% 60% 61% 1%
Employee engagement 60% 58% 56% 2%
Recruitment 58% 51% 52% 7%
Leadership capability 56% 61% 64% -5%
Performance management 54% 54% 61% 0%
Employee retention and motivation 50% 45% 45% 5%
HR systems and processes 45% 43% 41% 2%
Culture development 45% 42% 38% 3%
Change management 43% 51% 46% -8%
Succession 42% 43% 45% -1%
Management development 40% 44% 48% -4%
Training and education program 38% 34% 32% 4%
Organizational growth 38% 36% 31% 2%
Capability competence management 34% 36% 37% -2%
Business efficiency 34% 37% 37% -3%
Performance metrics 27% 27% 27% 0%
Diversity 21% 23% 22% -2%
Downsizing 14% 18% 20% -4%
Flexible employment 14% 15% 17% -1%
Industrial retentions (trade union) 13% 14% 15% -1%
Board’s HR priorities - Global
Q: What are the key issues your board
is looking for HR to prioritise?
The top three HR priorities – talent
management, recruitment and
employee engagement –
represent a healthy outlook for
growth: companies are recruiting
(7% more important in 2015), and
leadership teams are managing
their talent to ensure that the
workforce is engaged and
therefore retained.
Employee retention, training and
motivation are all more important
this year.
In other words, companies are
investing in and protecting their
greatest asset: their people.
-8%
-5%
-4%
-4%
-3%
-2%
-2%
-1%
-1%
-1%
0%
0%
1%
2%
2%
2%
3%
4%
5%
7%
Change management
Leadership capability
Management development
Downsizing
Business efficiency
Capability competence…
Diversity
Sucession
Flexible employment
Industrual retentions (trade union)
Performance management
Performance metrics
Talent management
Employee engagement
HR systems and processes
Organizational growth
Culture development
Training & education programme
Employee retention and…
Recruitment
Board’s HR priorities – 2015 vs 2014
Board priorities for HR are
changing. As can be seen in the
chart, the board is increasingly
asking HR to focus on
recruitment: up 7% in the last 12
months. Employee retention,
training and motivation are all
more important this year
compared with last year.
During the years of economic
turbulence, change
management was a critical HR
focus, but respondents now
report it is a significantly lower
priority, alongside the need to
downsize.
Vietnam Result 2015 2014 Annual Change
Recruitment 66% 63% 3%
Talent management 62% 59% 3%
HR Systems and processes 61% 62% -1%
Board’S HR priorities - Vietnam
Employee retention & motivation 60% 73% -13%
Training & education program 58% 61% -3%
Performance management 58% 62% -4%
Employee engagement 56% 63% -7%
Culture development 48% 51% -3%
Leadership capability 45% 52% -7%
Organisational growth 40% 49% -9%
Succession 38% 42% -4%
Performance metrics 38% 43% -5%
Management development 37% 40% -3%
Capability & competence management 37% 47% -10%
Change management 33% 39% -6%
Business efficiency 30% 44% -14%
Flexible employment 21% 23% -2%
Industrial relations (trade unions) 15% 24% -9%
Diversity 14% 19% -5%
Downsizing 11% 12% -1%
Global results 2015
Talent management 61%
Employee engagement 60%
Recruitment 58%
Q: What are the key issues your board
is looking for HR to prioritise?
Vietnam’s biggest challenges of
the Board to HR are very similar to
the global results: recruitment (66%)
and talent management (62%).
However, while the Board globally
sets high priority in employee
engagement (60%), the Board in
Vietnam wants HR to prioritise HR
system & process (61%) to improve
the HR operation itself.
-14%
-13%
-10%
-9%
-9%
-7%
-7%
-6%
-5%
-5%
-4%
-4%
-3%
-3%
-3%
-2%
-1%
-1%
3%
3%
Business efficiency
Employee retention & motivation
Capability & competence…
Organisational growth
Industrial relations (trade unions)
Employee engagement
Leadership capability
Change management
Performance metrics
Diversity
Performance management
Succession
Training & education programme
Culture development
Management development
Flexible employment
HR Systems and Processes
Downsizing
Recruitment
Talent Management
Board’s HR priorities – 2015 vs 2014
The board’s priorities for HR in
Vietnam are also changing.
Recruitment and talent
management both increased by
3% compared to 2014 as many
companies focus on growth in
2015.
It also reflects the country’s
economy that the Board no
longer sets the top priority to HR
for business efficiency, employee
retention & motivation (drops
over 10%) this year
0%
3%
3%
3%
3%
4%
7%
9%
10%
12%
23%
24%
Inclusion & diversity
Industrial relations
Internal communications
Employer branding
HR reporting
Reward and benefits
Learning and…
HR policies
Recruitment
Talent management
Employee engagement
Culture and values
0%
1%
2%
3%
3%
4%
9%
9%
9%
14%
23%
24%
Management information…
Inclusion & diversity
Talent management agenda
Employee / industrial relations
Internal communications
Employer branding
Talent acquisition /…
Reward & benefits
Learning & development
Employee engagement
Culture & Values
HR policies
Global Vietnam Q: What is the single most important element of the HR function?
Most important elements of the HR function
0%
3%
3%
3%
3%
4%
7%
9%
10%
12%
23%
24%
Inclusion & diversity
Industrial relations
Internal communications
Employer branding
HR reporting
Reward and benefits
Learning and…
HR policies
Recruitment
Talent management
Employee engagement
Culture and values
58%
60%
61%
Recruitment
Employee engagement
Talent management
Q: The single most important element of the HR function vs Key issues board is looking for HR to prioritise?
The global result shows that HR is about
culture & value, employee engagement
& talent management…
…which are very much in line with the
Board’s priorities of recruitment,
employee engagement and talent
management.
Board HR
Board’s Priorities vs HR focus - Global
0%
1%
2%
3%
3%
4%
9%
9%
9%
14%
23%
24%
Management information HR…
Inclusion & diversity
Talent management agenda
Employee / industrial relations
Internal communications
Employer branding
Talent acquisition / recruitment
Reward & benefits
Learning & development
Employee engagement
Culture & Values
HR policies
61%
62%
66%
HR Systems and Processes
Talent Management
Recruitment
HR Board
Board’s Priorities vs HR focus - Vietnam
Vietnams result shows that HR is about
policies, culture and engagement…
…but the Board is more practical with
top priorities in recruitment, talent
management, HR systems & processes.
It’s a surprise that 66% HR Leaders are on
the board, but HR Vietnam does not
seem to have the same vision with the
Board.
Top 3 HR priorities from the Board
1. Recruitment
2. Engagement 3. Management
4%
13%
12%
28%
25%
33%
50%
43%
55%
5%
16%
19%
23%
31%
33%
42%
44%
58%
Widespread unemployment
Talent emigration
Talent immigration
Growing demand by employers for
flexible work options
Education system not aligned with hiring
needs
Growing demand by employees for
flexible work options
Ageing workforce
Tight labour supply & skill shortages
Recruitment challenges in local region
2015 2014
Labour market trends
Recruitment challenges remain the most
significant labour market concern for HR
professionals. There is also a growing
concern that the education system is not
aligned with hiring needs.
Flexible work options continue to be a
high demand from both employee and
employer.
Global
2015
2014
Annual change
Online job boards 49% 42% 7%
Corporate website 49% 54% -5%
Personal network of recruiter 44% 39% 5%
LinkedIn 43% 37% 6%
Recruitment companies 36% 34% 2%
Employee referral program 35% 31% 4%
Social media 29% 22% 7%
Alumni program 8% 5% 3%
Printed adverts 7% 5% 2%
Vietnam
2015
2014
Annual
change
Personal network of recruiter 55% 57% -2%
Online job boards 42% 46% -4%
Employee referral program 35% 39% -4%
Recruitment companies 30% 26% 4%
Social media 29% 23% 6%
LinkedIn 27% 24% 3%
Corporate website 23% 42% -19%
Alumni program 16% 11% 5%
Printed adverts 13% 3% 10%
Q: Recruitment tools rated as ‘very important’ in recruitment strategy?
Recruitment Digital marketing has become widely applied in recruitment globally such as job board, corporate website, social media, LinkedIn…, but not in Vietnam, where human interaction is still a critical method of recruitment. Recruitment companies continue to be an important tool for senior level recruitment.
Q: What methods are you using to engage
your employees?
32%
37%
55%
71%
Non-monetary
Discount schemes
Flexible benefits
Healthcare benefits
Reward initiative
45%
47%
53%
70%
83%
Creative reward structures
Staff forums
Flexible working practices
Staff events (social,
charitable etc.)
Positive & open culture
Engagement methods
Q: What reward initiatives is your company
using to engage and attract employees?
Employee engagement
HR professionals believe that promoting a positive, open culture can contribute most to enhancing employee
engagement. However, staff events and offering flexible work will be used by a majority of HR professionals to
improve employee engagement. Reward structures are less important in 2015.
Q: What does your talent management strategy include?
45%
60%
63%
70%
71%
76%
Rewarding talent
Behaviours and values
Recruitment
Management development
Succession
Talent development
Talent Management Strategy
Talent management
Far more HR professionals focus their
talent management strategy on
developing talent than rewarding
people (76% vs 45%).
71% develop future leaders and
prepare for succession, while over
60% include a focus on recruitment,
behaviours and values.
20%
30%
35%
9% 6%
< 1 year 1 - 2 yrs 3 - 5 yrs 6 - 10 yrs 10+ yrs
Global
8%
28%
37%
15% 12%
< 1 year 1 - 2 yrs 3 - 5 yrs 6 - 10 yrs 10+ yrs
Vietnam
50% 36% Expect to stay less than 2 years
Q: How long, from this point onwards, do you expect to stay with your current employer?
HR commitment
Show HR results in
number to prove values
to the business
Talk more in the languages of
business: budgets, profit
margin, ROI
Become more data
driven
More frequent, proactive and
candid communication
with CEO
Spend
more time
together
Understand and deliver
board’s expectation
HR’s focus
should be in line with Board’s
expectation
Improve relationship with CEO
Better understand
business
strategies, challenges, directions
Use of digital tools
for recruitment
Conclusions – How HR adds value to the CEO?
2%
11%
11%
15%
16%
23%
27%
27%
28%
31%
60%
64%
Have a plan to train & build talent
To represent the values of the company
Deliver HR in digital world
Be tougher with the CEO, who tends not to understand the…
Focus on HR policy and process
Become more data driven.
Increase focus on leadership, emotional intelligence and…
Increase long-term focus and organize the HR function…
Focus on recruitment
Talk more language of business: budget, profit and margin.
Be better understanding the business strategy, challenges,…
Understand and deliver Boad's expextations.
How can HR add value to the CEO?
Vietnam’s quick survey result (conducted in the HR event)
Labour subleasing An efficient resource solution
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Managing Director, Harvey Nash
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Services
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A leading Australian bank Case study
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08 7300 3388 – 0903 883 037
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04 7300 3388 - 0903 413 368
