Manage your workforce is much harder due to coronavirus. Here we have all you need in an HR Guide to sail against the wind.
Amid pandemic, we know you’re being more cautious than ever to run your business smoothly. There are lots of works, but don’t just focus on numbers and lose sight of your precious asset – people. The way you manage your workforce in this crisis to keep your employees productive will let your business move the needle.
How did the COVID-19 hit the economy?
Coronavirus hit the Vietnam economy massively and cause unprecedented impacts, across all sectors and industries.
A survey by the Vietnam Young Entrepreneurs Association (VYBA) reveals that 55% of small and medium-sized enterprises would go bankrupt if COVID-19 is continuing for over 3 months. And if this pandemic persists for over 6 months, Vietnam could lose 74% of small business.
Foreign firms also confront challenges. EuroCharm recorded an unprecedentedly low level of European companies’ confidence in the Vietnam market – only 26% in this 1st quarter. Plus, most German businesses decided to lower their revenue targets, from 10-50%, as the outbreak isn’t contained yet.
Not only tourism, hospitality, education, , “the outbreak strike Vietnam export industries, including textile, timber, footwear, auto, etc.”, said Chuong Nguyen – Associate Director, HCMC Recruitment Business, Adecco Vietnam. In the 1st quarter of 2020, textile exports fell nearly 9% year-on-year. The number of orders goes down 70% in the next 2 months as the US and EU markets are struggling with the virus. Similarly, since mid-March, there are no new orders on timber manufacturing. Auto production and fruit exports also suffer drops in demand.
Quite the opposite, some areas witness steady, or even significantly, growth. Hygiene products – such as hand sanitizer, household cleaning or soap – increased sales by two to three times. Packed or frozen foods, dairy, instant noodles, and other personal care products see a notable rise in consumption. E-commerce also enjoys rapid growth of 20% as a minimum during the peak period.
Then how the COVID-19 affect the labor workforce?
Of course, when industries are struggling, the workforce is also facing fluctuations.
The order to close non-essential services by the end of March has forced workers in hospitality, beauty and entertainment services to take unpaid leave or being laid off. With about 35,000 enterprises having to shut down in the first 3 months, over 150,000 workers had to seek help from unemployment benefits to survive. Most of them are from the textile, footwear, cuisine, restaurant, hotel or tourism industries. This figure could rise to 250,000 in the next quarter while putting about 2 million people at risk of losing their jobs.
While the number of unemployed is increasing, the recruitment demand has decreased significantly. Although this is usually the yearly busy time for recruiters and headhunters. Chuong shared that since mid-March, the recruitment demand has dropped by about 20% compared to the previous year. Travel restrictions also take it longer than usual to place an expatriate.