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Le & Associates would like to take this opportunity to thank those who have made this research and
resulting report “VIETNAM TALENT RECRUITMENT TRENDS – JOB FIT OR CULTURAL FIT?” possible.
Firstly we would like to thank all of those individuals who took part in the survey. Sharing your views with
us during this process has allowed us to further our understanding of your talent recruitment activity.
Secondly L&A would like to express deep thank to the various associations who helped us bring this
research project to organizations and individuals throughout the nation, namely:
• The Youth Businessmen Associations Ho Chi Minh City (YBA HCM)
• The American Chamber of Commerce in Vietnam (AmCham Vietnam)
• The Vietnam Human Resource Club (VNHR Club)
• The Can Tho Business Association (CBA)
• The Quang Trung Software City Development Corp. (QTSC)
• The Vietnam Singapore Industrial Park J.V., Co., Ltd. (VSIP)
Finally, we would like to express our special gratitude to The Vietnam Chamber of Commerce in Ho Chi
Minh City (VCCI-HCMC) for your partnership, your generous support and your expertise contributed to
make this research alive
Introduction
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Research Framework
“It’s not the people the biggest cost for a company, it’s the WRONG PEOPLE”.
Accurate employee selection decisions have never showed superior job performance. In the other hand,
been more important to organizational success. early this year, a worldwide survey of 500 recruiters from
Organizations need quality staff who can operate in 54 countries, conducted by The Cubiks International,
an environment of increasing complexity and change. found that over half of respondents said they had
Hiring the wrong person for the job can be costly. rejected candidates based on Cultural Fit. These data
The time and expenses associated with advertising, clearly demonstrate the importance of hiring based on
interviewing candidates, together with the negative Cultural Fit as a global trend.
long-term financial and non-financial implications of In October 2013, Le & Associates (L&A) and VCCI-
hiring the wrong person, make finding and hiring the HCMC jointly conducted the national survey on “Talent
right person critical. According to a 2012 poll conducted Recruitment Trends – Job Fit or Cultural Fit”. This survey
by CareerBuilder, 41% of participating companies in the asked participants about their experiences and opinions
USA had experienced a cost of at least $25,000 per of Cultural and Job Fit and what their organization’s
single bad hire, while 24% had incurred $50,000 for a practices are in relation to these areas.
single bad hire. The cost includes loss of productivity
and time, cost to recruit and train new employee, and Over time, organizations have become skilled at
employee morale being affected. measuring Job Fit, but we wanted to investigate how
they evaluate Cultural Fit and how this relates to Job
So what is involved in finding the right person? A Fit. Alongside this we asked questions about how
meta-analysis by Kristof Brown (from 2005) reported organizational culture is defined as well as whether
that employees who fit well with their organization, employers use Cultural Fit as one of their criteria in
coworkers, and supervisor: had greater job satisfaction, selection processes.
identified more with their company, were more likely to
remain with their organization, were more committed,
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What differentiate
According to HR expert, book author Susan M. which is more congruent with their own values and
Heathfield, Job Fit is a concept that explains whether the beliefs.
intersection between an employee’s strengths, needs One of the key concepts is “Culture”. There are many
and experience, and the requirements of a particular definitions about culture. One concept, also provided by
Cultural Fit from job and work environment - match - or not. When the
two interests match, an employee and your organization
experience a good Job Fit.
Susan M. Heathfield makes things clearer as below:
Culture is the environment that surrounds you at
work all of the time. Culture is a powerful element that
Job Fit? While Cultural Fit is best understood when you consider
it within the context of your organization’s culture and
how your organization’s culture was formed. A potential
shapes your work enjoyment, your work relationships,
and your work processes. But, culture is something that
you cannot actually see, except through its physical
employee may express and exhibit the characteristics, manifestations in your work place.
language, and values that exist within the current
organizational culture - or not. You want to hire only In many ways, culture is like personality. In a person, the
candidates whose belief and behavior systems appear personality is made up of the values, beliefs, underlying
congruent with your organizational culture. assumptions, interests, experiences, upbringing, and
habits that create a person’s behavior.
The candidate whose values, beliefs, outlook and
behavior is congruent with those existing within the Culture is made up of the values, beliefs, underlying
current organization is likely to be a good Cultural Fit for assumptions, attitudes, and behaviors shared by a
the organization. An employee who is a good Cultural group of people. Culture is the behavior that results
Fit works well in the existing workplace environment. when a group arrives at a set of - generally unspoken
Employees who fail to fit within the environment and unwritten - rules for working together.
generally leave to find a work environment or culture
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C ENERGY CHARACTER C
A A
N N
D D PERSONALITY
I ABILITIES PERSONALITY I ABILITIES CHARACTER
T
A
T
A & ENERGY
T T
E E
MATCH FIT
MATCH FIT
C
O C ORG. Culture
M
P
O NEEDS
A
N
NEEDS M
P
Leader’s Org Boss’s Org
A Executional Needs
Y N
Y
CULTURE Directional Needs Country Social culture
Demographics
We received 326 responses to the survey from participants throughout the country. The respondents represent 320 organizations currently doing business in Vietnam. Our
survey respondents came from a broad variety of business functions, company sizes, industries, providing a sample that is a good representation of the national workforce. The
data we collected therefore will be of great interest to HR professionals nationwide.
Retail/Wholesale 6%
Hospitality 2%
IT/Telecommunication 14%
FMCG 10%
Construction/Real Estate 9%
Oil/Mining 1%
Education 4%
Investment 2%
Transportation/Logistic 3%
Automobile 1%
Agriculture 3%
Mechanicals 4%
Textiles 2%
Other 7%
Industry
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11%
16% < 100 Employees
Organizational Size
1% 37% Staff
Other ( non HR )
Competencies 192
Experience 148
Skill 134
Qualification 120
Personal Value 59
Flexibility 47
2% 1%
17%
After identifying the perception, when assessing Job Fit 51% 49% 51%
34% 49%
it is important to know exactly what the role demands.
This means that the first step in assessing Job Fit is 57% 58%
establishing a comprehensive Job Description for the
role in question.
In general the survey results show that NOT many
organizations are using clear Job Descriptions that Poor Well
Totally disagree
Strongly disagree Agree
Somewhat agree Very poor Acceptable
give an accurate representation of what a role entails. Disagree Strongly Agree Very well Very poor
nearly two third (64%) of respondents think that the Job Very well
Descriptions used by their organization are not a good
reflection of reality.
Percentage of agreement that their organization is Levels of Job Descriptions being used as
using clear Job descriptions reflecting reality
There are many possible reasons why Job Descriptions The Job Description, also called the position description, search specification, candidate profile, or job/position
may not reflect the role accurately. One is that there specification, should, according to the creators of the Harvard Essentials Guide: Hiring and Keeping the Best
can sometimes be a disparity between the people who People, include the following:
write Job Descriptions and the managers who work
• The primary responsibilities and tasks involved in the job
in the relevant business functions. It can be the case
that managers go to HR for standard Job Descriptions • The background characteristics needed to perform the job
that are kept on file and use them without reviewing • The personal characteristics required
and updating the content. In particular, inaccurate role
• The key features of your organization’s culture
descriptions are used when HR and hiring managers do
not have time to discuss a Job Description and make • The boss’s managerial style and its implications for an effective working relationship
sure it is relevant before the recruitment process begins.
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• The management and its style of handling the employees, Vision/ Goals/ Objectives, only 30% of respondents said their organization measures Cultural Fit in recruitment
and Work style are top 3 factors that attribute to the perception of Culture in their processes frequently.
organization. • Behavioral interview, Behavioral test/assessment, and Informal meeting with
• The managers, The CEO, and Employees are top 3 stakeholders that can most colleagues/ team members are the most effective methods for assessing Cultural Fit.
impact their Organizational Culture. • 51% of respondents have poor recruitment decisions based on employee’s lack of
• 59% of respondents agree that their organization have a clear definition of Cultural Fit.
Organizational Culture, but only 29% of them think that the definition well reflects reality. • 61% of respondents believe that despite being difficult to measure, Values should be
• Work style, Leadership style, and Value are top 3 factors that attribute to the included in the recruitment process
perception of Cultural Fit to their organization. • 67% of respondents believe recruiting for Culture Fit does not create an organization
• Most respondents (79%) said they think measuring Cultural Fit is important while of clones and lack of diversity
Historically Job Fit has been the most important factor in recruitment processes. Although it continues to play a major role, many recruiters are placing a new emphasis on the candidate’s
fit with their organization’s values and beliefs. This ‘Cultural Fit’ is progressively becoming an established part of the recruitment process in many major organizations.
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The three levels refer to the degree to which the different cultural phenomena are The Management and its style of
handling the employees 221
visible to the observer:
Artefacts include any tangible, overt or verbally identifiable elements in an Vision / Goals / Objectives 215
organization. Architecture, furniture, dress code, office jokes, all exemplifies Work style 148
organizational artifacts. Artifacts are the visible elements in a culture and they can
be recognized by people not part of the culture. Values
136
Espoused Values are the organization’s stated values and rules of behavior. It is Professionall opportunities and
advancement 74
how the members represent the organization both to themselves and to others.
This is often expressed in official philosophies and public statements of identity. It Belief 67
can sometimes often be a projection for the future, of what the members hope to
Type of the business 56
become. Examples of this would be employee professionalism, or a “family first”
mantra. Trouble may arise if espoused values by leaders are not in line with the Custom
25
general assumptions of the culture.
Archietecture , aesthetic, and
Shared Basic Assumptions are the deeply embedded, taken-for-granted atmosphere 21
behaviors, which are usually unconscious, but constitute the essence of culture.
These assumptions are typically so well integrated in the office dynamic that they Factors that attribute to the perception of Organizational Culture
are hard to recognize from within.
In our survey, we asked respondents to indicate the top 3 factors that attribute to Apparently, those indicated elements all belong to the Artifacts level, which are visible. The
the perception of their Organizational Culture. The results are: The management deeper levels of cultural factors do not have enough attention yet.
and its style of handling the employees, Vision/ Goals/ Objectives, and Work style.
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Our survey revealed that although there’s a majority of 4% Do not have any
respondents (59%) agree that their organization have a 8% 12% definition at all
3%
clear definition of Organizational Culture, but only 29% 9% Strongly disagree Very poor
25% 10%
of them think that the definition well reflects reality. 51%
51% 49% Disagree
51% 49% Poor
The results suggest that employers who put in place Agree
32% Acceptable
definitions of their culture generally take the time to
Strongly agree 46%
ensure that these are well aligned with the real culture Well
that exists within their organization Very well
Percentage
Strongly disagree of agreement
Agree that their organization have a Level of the defination of Organization Culture reflect
Disagree
clear definition of Organization Culture
Strongly Agree
reality
Poor
Also, survey results reveal top 3 stakeholders that can The Managers 271
most impact your Organizational Culture, which are:
The CEO 243
Employees 182
The shareholder 20
The Importance of Recruiting for Cultural Fit to Frequency of Cultural Fit is assessed at
Organizations organizations
Organizations and hiring managers do not assess for Cultural 3% 30% 62% 5%
Fit because they don’t know how
Hiring managers are often in too much of a hurry to adequate- 3% 22% 63% 12%
ly assess for Cultural Fit
Hiring managers are afraid to ask questions about Cultural Fit 12% 52% 30% 6%
because they may be perceived as discriminatory
Hiring managers that are under pressure to fill positions will 8% 33% 50% 9%
often ignore Cultural Fit
Tight labor markets force hiring managers to ignore Cultural 10% 39% 43% 7%
Fit during the recruitment process
Hiring managers would hire someone who is not quite right, 21% 48% 29% 2%
rather than go back to the start of the recruitment process
Most people rely on gut feel when assessing candidates for
4% 21% 58% 17%
Cultural Fit
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- has strong technical competencies (hard skills) • In this talent equation, these three terms are
multiplicative, not additive. If any one is missing,
- has strong workplace competencies (soft skills)
the other two will not replace it. A low score in
• Managers and professionals, Senior managers/directors, and Services (customer, personal and sales) are competence will not ensure talent even when the
top 3 categories of position that available in organization’s talent development planning. employee is engaged and contributing.
• Low quality of candidates applying for posts, Limited hiring budget, and Weak employment branding are top • Talented employees must have skills, wills and
3 challenges that occur in their Talent recruitment process. purposes; they must be capable, committed and
• 68% of respondents said that they would choose a candidate who has a high level of Cultural Fit rather than contributing. HR leaders can engage their general
those who might have a better degree of Job Fit but are not so well fit with the culture. managers to identify and improve each of these
three dimensions to respond to the talent clarion
call.
• Just indicates how HR functions in the organization
plays the most critical role of revisiting and
Contribute the most organizations 194 reviewing the competencies and talent required to
perform in organizations. HR role need not end with
Has strong workplace competencies ( Soft skills ) 182
defining the competencies required for talents to
Has strong technical competencies ( Hard skills ) 171 give superior performance, it needs to be revisited
and reviewed keeping in mind the new challenges
Has strong commitment of dedication to organizations 152 and business requirement. Performance in the
long run can be sustained and competencies can
Has a natural ability to excel a duty or action 141 be developed only if the 3C’s are present.
Talent
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Managers and professional 266
Agree
Despite being difficult to measure, values should be 57%
Strongly agree
included in the recruitment process
I would choose a canditate who has a high level of Cultural Fit rather than those who might have a better degree of
Job Fit but are not so well fit with the culture
Conclusion and
Recommendations
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Overall, the respondents to our survey rated both Job with yours. Your core values may also naturally screen
Fit and Cultural Fit as good predictors of performance. out non cultural fit candidates who will not apply for
Recruitment and selection process is slowly gravitating the positions since they do not share the same values
towards hiring based on core Values (Cultural Fit) as your organization. Hiring using core values is very
rather than just technical competencies. crucial for start-up, small and medium companies;
since they usually lack brand recognition and
One of the reasons for this trend may be attributed to
longevity, by clearly communicating the core values
Gen Y entering the labor market who typically stays
and culture, these companies are able to share their
at a job for about two years and prioritize meaningful
visions and dreams to potential candidates. Again, you
work over pay as well as working for a company that
want people who believe in your product, vision, and
is aligned with their own values. This means by clearly
values because these are the employees who will be
defining your organization’s values and integrating
intrinsically motivated to work at full capacity towards
them in your organization, you are able to attract
your organization’s objectives.
employees whose personal values are in alignment
There are various ways organizations can embed and assess fit as part of their recruitment and selection process:
• Articulate the value proposition up front - Clearly and realistically articulate the attributes of the organization
to prospective talents. This increases the likelihood of attracting the ‘right’ people in the first place. Your
recruitment advertising should communicate a clear message about the job and the organization. In today’s
workplace knowledge, intellectual capital, individual and organizational qualities represent the competitive
value proposition for most companies.
• Use objective assessment tools to help applicants self screen. These enable applicants to better understand
the dynamics of a particular job and organization and make decisions early about suitability for the position.
As such many applicants may self screen themselves out of the recruitment process.
• Describe values in behavioral terms and use behavioral-based questions to assess suitability. Alternatively,
identify competencies that align with the core values and ensure that interview questions are constructed to
address these.
• Ensure all managers and individuals are adequately trained in recruitment practices. This should include,
behavioral interviewing, motivational fit concepts, and evaluation of recruitment data.
Executive Search &
Selection Services
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SPEED •
•
Speed is the key success factor
Huge candidate database of 12 year
• Full and rapid assistance in the
recruitment of middle and senior
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development
EXECUTIVE enrichment executives for key positions. • Talent research and interview
SEARCH • Providing personalized consultancy • Fill senior positions which are seldom • Present shortlist and preference check
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SERVICE to clients and candidates for tailored review
solutions to specific requirements • Consulting of contract negotiations
RETAINED
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leaders with double-guarantee “job fit & for “job fit & cultural fit” for candidate environment analysis
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and to enhance business performance objectivity
SEARCH • Present shortlist candidates and
• A Customized Development Plan for
SERVICE the successful candidate: coaching
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