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The Role of Recruitment Agencies in Vietnam's Job Market

According to a report by the Hanoi Employment Service Center, multiple sectors in Vietnam experienced high recruitment demand in the first quarter of 2023, including information technology, transport logistics, hotel and restaurant services, tourism, real estate business, and financial and banking services. This creates many opportunities to grow your business and achieve your goals in this dynamic market.

To do that, you need to recruit and retain qualified and talented local staff who help you succeed. But how can you overcome the language and cultural barriers and find the best candidates for your business in Vietnam? This guide will show you how to use recruitment agencies in Vietnam as your strategic partner in this process.

1. How crucial is the recruitment agencies in Vietnam?

Recruitment agencies in Vietnam are service providers that help you find and hire suitable candidates for your open positions. They act as intermediaries between job seekers and employers, bridging the gap and facilitating successful placements. The agencies offer multiple benefits for businesses, especially in a competitive and dynamic market like Vietnam.

1.1. Quality of candidates

Recruitment Agency
The category that is difficult to recruit

According to a 2023 survey of 143 organizations in Vietnam, 74% of companies said they were unable to find people with the right skills at the right price, and 64% said there were fewer qualified ready-to-hire candidates in the market. Also, 89% of companies reported losing employees to rival organizations, mainly due to a lack of growth opportunities and clear career paths and non-competitive salary structures.

To overcome the hiring difficulties, you can consider working with a professional recruitment agency. These agencies have access to a large pool of candidates with diverse skills, qualifications, and experiences. They source and select candidates who match the requirements, expectations, and culture of the businesses they work with. Besides, they reach out to passive candidates who are not actively looking for a job but may be open to new opportunities. Trusted recruitment agencies can screen and interview candidates before introducing them to businesses, ensuring that they are qualified and suitable for the role.

1.2. Speed and efficiency

By counting on recruitment agencies in Vietnam, you can save time and effort in your hiring process. They handle the initial stages of the process, such as advertising the vacancy, reviewing resumes, conducting phone screens, and scheduling interviews. Moreover, they provide feedback and guidance to both candidates and employers throughout the process.

As they have a network of contacts and relationships in the industry, recruitment agencies can find candidates faster than businesses can on their own. With them, you’ll fill urgent or temporary positions more quickly.

1.3. Cost reduction

Reliable recruitment agencies can help reduce your hiring costs by providing you with a flexible and scalable service. You only pay for the service when they need it, and only for the results you get.

These agencies may bargain with candidates for salaries and benefits that suit your budget and their expectations. Thanks to them, you can avoid the costs of hiring a bad candidate, for example, turnover, retraining, and lost productivity.

1.4. Compliance and support

Staffing and Payroll Agency
The Staffing Company (TSC) is available 24/7 to provide solutions for your business expansion in Vietnam

With recruitment agencies in Vietnam, you’ll comply with local labor laws, regulations, and practices in the country more easily. They can advise you on the legal aspects of hiring, such as contracts, visas, taxes, and social insurance.

Also, they help with the onboarding and retention of new employees, providing them with support and feedback. Your employer brand and reputation in the market may be better since the recruitment agency gives you a professional and reliable service.

1.5. Access to high-demand sectors

Recruitment agencies can help you access the high-demand sectors in Vietnam, including information technology. They have expertise and experience in these sectors, as they understand the market trends, skills requirements, and salary expectations. Working with them means you will have less difficulty finding candidates with specialized skills or niche knowledge that are hard to find in the market.

For instance, you can use their service to find a qualified software engineer with experience in developing mobile applications using Flutter, a framework that is in high demand in the IT sector. Otherwise, let them help you hire a data analyst who has knowledge of Python, SQL, and Power BI known as essential skills for working with large datasets and creating visualizations.

2. How to avoid common pitfalls and mistakes when engaging with recruitment agencies in Vietnam

2.1. Transparency and reputation

Recruitment Agency
Review on Clutch

You want to work with an agency that is honest and trustworthy about their fees, recruitment methods, and candidate selection criteria. A good agency should have many contacts, be able to find the best candidates and have the skill to pair the right people with the right jobs.

To assess the transparency and reputation of a recruitment agency, you can do the following:

  • Choose an agency that has a proven track record of delivering successful results, happy clients, and positive reviews from both employers and candidates. For instance, TSC is a premier recruitment agency in Vietnam that has helped over 150 clients across various industries find their ideal talent.

  • Check online reviews and contact other employers who have worked with the agency. You can find reviews on platforms such as Google, Facebook, or LinkedIn. Or, ask for references or testimonials from previous or current clients of the agency.

  • Seek advice from industry professionals to learn more about the agency’s reputation. You can join online forums or groups related to your industry or sector and ask for recommendations or opinions on different recruitment agencies in Vietnam. Alternatively, attend networking events or webinars where you can meet and interact with other employers or recruiters in your field.

2.2 Understanding fees and agreements

Work with an agency that offers reasonable and competitive fees that suit your budget and hiring needs (TSC is committed in this regard). You also want to understand the terms and conditions of the agreement before signing it.

To understand the fees and agreements, you can:

  • Ask about any extra charges that may come up during the recruitment process, such as advertising costs or background checks. Make sure these charges are clearly stated in the contract to avoid any unexpected fees.

  • Think about your hiring needs and preferences when deciding on the contract’s length. Some contracts may have a fixed term while others may be flexible. Decide whether you want to work with only one agency or multiple agencies at the same time. An exclusive contract means you will only use that agency for your recruitment needs, while a non-exclusive contract allows you to use other agencies as well.

  • Check the terms and conditions for ending the contract and any possible outcomes or penalties. For example, some agencies may charge you a cancellation fee if you end the contract before its due date or if you hire a candidate from a different source.

2.3. Candidate quality

Recruitment Agency
Review on Clutch

Look for recruitment agencies in Vietnam that have access to a wide and diverse pool of candidates who have the skills, qualifications, and experience that match your requirements. Ensure that they screen the candidates thoroughly for their suitability and fit for your organization.

To evaluate the quality of candidates that a recruitment agency can provide, you may:

  • Enquire about their sourcing strategies, whether they actively search for candidates or rely on passive sources such as databases or referrals. A good agency should have a strong network within the job market and use various channels to attract potential candidates.

  • Find out how they screen candidates, how they test their skills and qualifications, and how they select the best candidates. For example, TSC has a rigorous screening process that includes checking the CV, interviewing by phone and in person, testing the personality and aptitude, verifying the references, and negotiating the salary.

  • See if the agency cares about finding candidates who match your company’s culture and values. Cultural fit is important for long-term employee satisfaction and productivity. Ask how they evaluate candidates’ personality traits, motivations, and expectations from their employers.

  • Know the agency’s guarantee policy in case a hired candidate doesn’t meet the required expectations or leaves the company shortly after joining. A good agency should offer to replace or refund the candidate within a certain time.

2.4. Confidentiality and data protection

You want to work with recruitment agencies in Vietnam that respect and protect the privacy and security of your data and the data of the candidates. Applicant information contains sensitive and personally identifiable information, such as names, addresses, phone numbers, email addresses, educational backgrounds, work histories, and references. The impact of a data breach can be severe, leading to reputational damage, legal consequences, and potential financial losses.

To review the confidentiality and data protection of a recruitment agency, you can:

  • Ask questions about how they store, encrypt, and control access to candidate data. A trustworthy agency should have strong data protection policies in place, following laws and regulations such as the General Data Protection Regulation (GDPR) or Vietnam’s data protection laws.

  • Choose agencies that use secure platforms and tools for handling candidate data. For example, TSC uses a sophisticated cloud-based system that encrypts candidate data when it is stored and when it is transferred.

  • Demand strict confidentiality and data security measures that protect your data and the data of the candidates. TSC follows strict confidentiality agreements with both clients and candidates.

2.5. Communication and responsiveness

Recruitment Agency
Customer review about TSC

This is important when your business is working with a recruitment agency because it can affect the quality and speed of your hiring process, as well as your employer brand and reputation.

To gauge this factor, you can do the following:

  • Talk to the agency at the beginning to see how they communicate and how quickly they respond. This will help you have a smooth and efficient recruitment process, saving you time and effort. It also helps coordinate and align your expectations with the agency, leading to better candidate selections.

  • Choose agencies that have clear and transparent communication channels, such as email, phone, and other online messaging platforms. You should be able to contact them easily and conveniently whenever you need them.

  • Receive regular updates on the progress of your recruitment, notifying you about potential candidates, and adapting to your changing requirements. You should be aware of every step of the recruitment process, from sourcing to screening to interviewing to hiring.

Whenever you need help with your employment situation, TSC is always ready with solutions. Contact us.

Recruitment Agency
We bring everything to the table

Example: How TSC saves you time and money

Recruitment cost is the total amount of money and resources spent to find and hire a new employee. It includes factors such as:

  • The time and salary of the managers involved in the hiring process

  • The loss of productivity while the position is vacant

  • The duration of the hiring process

  • The risk of hiring the wrong person

Let’s use an example of a senior PHP developer with an average annual salary of $11,280. How much would it cost a business to hire this person internally versus using TSC? We will assume that the average annual salary of a manager who participates in the hiring process is $16,680.

If the business hires internally, it will need to consider the following costs:

  • The time and salary of three managers who spend 10 full days on the in-house recruitment pipeline over 12 weeks

  • The loss of productivity of 40% for these managers during the 12 weeks

  • More than half of the recruitment cost, or 54%, that comes from the time that the managers spend on the hiring process

  • The risk of hiring the wrong person, which means repeating the whole process and wasting 100% of the previous costs

Based on these assumptions, the cost of management time is $2.5k, the cost of productivity loss is $2.1k, and the cost of risk of a bad hire is $9.3k. Thus, the total recruitment cost for hiring internally is $9.3k. Meanwhile, if the business hires through TSC, it will pay a reasonable and competitive commission fee to us.

Comparing these two options, you can see that hiring through TSC is much more affordable and faster than hiring internally. We can save you 30%-50% on recruitment costs and reduce the hiring time by half. Moreover, reputable recruitment agencies in Vietnam like TSC reduce the risk of hiring the wrong person by providing qualified and vetted candidates.


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