On the webinar “Oxygen for companies in Covid season” organized by FPT Telecom Worldwide, Mr. Dang Viet Dung- Co-founder and CEO of Nano Applied sciences, former CEO of Uber Vietnam, CEO of ZaloPay, Administration Advisor of McKinsey, Th. s MBA Harvard College, USA shared a expertise firm’s perspective on the disruption of human assets throughout Covid and the way companies can get well from this epidemic.
Disruption of the useful resource provide chain
Based on Mr. Dang Viet Dung, throughout the outbreak of the Covid-19 epidemic, companies confronted difficulties, inflicting a disruption within the provide chain of not solely items but additionally assets.
Based on information from the Normal Statistics Workplace, from August 2020 to now, if the traditional employment charge is at 100 factors, the North will improve from 101 to 105 factors, whereas the southern area’s charge will improve from 101 factors to 105 factors. employment decreased “catastrophically”. Based on Mr. Dung, the employment charge in Ho Chi Minh Metropolis in August this yr was solely 44% of final yr, in provinces reminiscent of Dong Thap solely 34%, Hau Giang 58%… Is there any distribution? evenly throughout industries, inflicting disruptions in provide chains and labor useful resource chains. Many factories closed as a result of they may not keep three locations, many staff returned to their hometown earlier than the epidemic…
The story right here raises the large query: how will companies get well after the epidemic?
Based on Mr. Dung, in developed international locations which have skilled the epidemic for 6-18 months, the story of labor assets after the epidemic could be very troublesome.
It’s true that there’s a break within the useful resource provide chain when there’s a redistribution – shifting of labor in numerous industries. The industries associated to tourism and lodge had been severely affected, many traders concerned in that business used monetary leverage to not be capable of shut, the boss went bankrupt, the staff additionally needed to give up. In the meantime, there are nonetheless industries with alternatives just like the expertise business that also recruit engineers, even recruiting many good engineers and senior personnel from different industries. Due to this fact, any enterprise with a very good monetary background is a chance to recruit many good staff. Mr. Dung suggested companies at this stage want to make sure finance, deal with staff’ well being, and plan totally different situations to get well from the epidemic.
You do not have to have cash to rent as many staff as you need
The organizers introduced the information of the Normal Statistics Workplace on the employment standing of staff as a result of impression of the epidemic within the second quarter of 202 with 8.5 million staff having their earnings lowered, 4.three million staff dropping their earnings. lowered working hours, 557,000 staff misplaced their jobs.
Based on CEO Nano Applied sciences, he was “shocked” by this quantity, totaling about 17 million staff had been affected, whereas in keeping with official statistics Vietnam has 27 million salaried folks, so there are greater than 60 % of staff affected by the pandemic, not together with self-employed. That may be a very critical impression.
To reply the query of how companies will construct a long-term human useful resource technique, Mr. Dung launched the idea of “Succession planning”. Most firms plan to remodel management positions inside the firm, however that is solely from the highest administration perspective, what in regards to the human assets beneath.
Mr. Dung mentioned that Nano Applied sciences has the chance to serve prospects in just a few areas reminiscent of attire, there are lots of firms that haven’t any alternative however to scale back their working hours and even take a everlasting break. “It is inevitable, it is bitter however we nonetheless need to swallow“, Mr. Dung commented. Nonetheless, it’s a indisputable fact that not all staff are the identical.
“Unskilled staff after the epidemic, the speed of return is there, however in particular industries with expert staff, if they modify industries after which discover them once more it is rather troublesome, very costly, not solely in The angle of discovering folks however generally not discovering them is dangerous to companies within the technique of restoring manufacturing and enterprise“, mentioned Mr. Dung.
Based on CEO Nano Applied sciences, in industries associated to smooth expertise such because the garment business, expert and unskilled staff are totally different, the price of coaching could be very costly and it’s not doable to have cash to coach them.
Mr. Dung shared, a buyer of Nano Applied sciences within the garment business within the first epidemic needed to give staff a break when an abroad accomplice broke out, and the order was reduce. Final Might-June, when the international locations managed the epidemic and orders recovered, companies needed to re-recruit staff. Beforehand, the common recruitment price for 1 employee took 500,000 VND/referrer, however when the order arrived, companies couldn’t recruit staff in time and lots of factories recruited on the similar time, making a bottleneck in provide and demand, inflicting a scarcity of staff. the machine has to spend as much as Eight million for 1 employee to recruit, a rise of 1,600% in comparison with earlier than.
The story of provide chain disruption in items additionally applies to assets, there are occasions when companies are compelled to chop labor in a short while, however recruitment prices after the epidemic are many managers should contemplate first, “if When the order arrives, we now have no different means,” mentioned Mr. Dung.
“Managers do not give up their jobs, however staff have many choices, generally they do not come again house anymore, particularly affecting firms within the export business. Many companies take a long time to construct a model. Nonetheless, when the provision chain is damaged, there isn’t a order or export, it could be resulting from issues within the logistics stage, if the order can’t be accomplished on time, the accomplice will swap to the corporate. Then we lose each lead and fishing. Labor is a vital technique of manufacturing, in addition to equipment and uncooked supplies, if fastened property are nonetheless there, particularly if enterprises use leverage, in the end we now have to downsize. That is worse than attempting to remain after 1-2 months to lift sufficient labor assets to get well rapidly and never waste different technique of manufacturing.”, CEO Nano Applied sciences provides recommendation.
Nonetheless, the essential query is how lengthy the epidemic will final as a result of there’s a distinction between the monetary well being of companies. There are companies with no income for two months is insufferable, however there are companies that may final 6 months to 1 yr, even longer earlier than having issues.
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