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According to a 2024 survey on 65,000 employees conducted by Anphabe, a Vietnamese social networking service and employment website, only one in three employees is reported to be financially healthy. Yet, 74% have expressed that their income is insufficient to cover their daily living costs, and 65% believe they are not compensated fairly, raising concerns about their long-term financial stability.

Anphabe’s research also revealed that financial pressure is a major source of stress that has impacted the mental well-being of these employees. Although they are burdened with meeting their financial obligations, such as family and household expenses, they also spend beyond their means as an unhealthy form of stress relief. What’s astonishing is that employees with poor financial standing are four times more likely to change jobs compared to those who are financially stable.

In Vietnam’s fast-changing economic landscape, financial planning is more important than ever and has become a shared responsibility for both employees and employers. Whilst workers must be more conscientious about how they spend, employers can support them by providing resources to help them manage their finances.

Tips For Employers:

1. Offer financial wellness programs

Implement financial literacy and management programs that include educational workshops, personalised financial advice, and partnerships with financial institutions. Successful initiatives such as Visa’s recent collaboration with VNU-UEB and Standard Chartered’s financial literacy training in Vietnam have helped equip students and workers, especially the younger ones, with saving skills and investment knowledge.

2. Evaluate compensation and benefits

Conduct regular salary reviews based on industry-standard pay ranges with cost-of-living adjustments. Consider improving employee insurance benefits, including maternity support, mental health coverage, outpatient care, and other expanded coverage benefits to help reduce their out-of-pocket expenses. Offer employee stock ownership plans at a discounted rate or receive stock options as part of their compensation. When employees receive fair pay with a wider range of relevant benefits, they experience less stress and focus on their work with greater confidence and stability.

3. Offer a company-sponsored retirement plan

Providing a provident fund or pension plan is a valuable way for employers to support their employees’ long-term financial security. By matching employee contributions, your organisation can create an incentive for workers to actively save for retirement, making financial planning more manageable. This also strengthens your commitment as an employer to ensuring the well-being of your workforce, enhancing job satisfaction and loyalty. Over time, these savings can provide employees with a strong financial cushion, allowing them to retire with confidence and stability.

4. Cultivate a culture of financial responsibility

Create a workplace environment that encourages open communication about financial matters and promotes responsible financial behaviour. Share financial tips in company newsletters or offer online courses on financial planning. Lead by example and demonstrate your own commitment to financial planning.

5. Tap into fintech

Earned Wage Access (EWA) is an emerging fintech solution in Vietnam that allows employees to withdraw a portion of their earnings before payday, helping them manage unexpected expenses without resorting to high-interest loans. By improving access to wages, EWA contributes to financial inclusion and empowers low-income individuals by offering a more flexible approach to managing personal finances.

Tips For Employees:

1. Keep track of your expenses and income

This is a fundamental task to help you understand where your money is going. Use budgeting apps, spreadsheets, or even just a notebook to list and categorise your expenditures such as household expenses, payment for utilities, transportation, entertainment, etc. This will give you a better outlook on areas where you can cut back and save.

2. Set SMART financial goals

Are you saving for your children’s education? A long vacation? A retirement plan? Plan by creating specific, measurable, achievable, relevant, and time-bound (SMART) financial goals. This will give you a clearer direction of what you want and how much you’ll need to save to achieve your goals.

3. Diversify into wise investments

As the saying goes, ‘Don’t put all your eggs in one basket.’ Besides having a savings account, you can diversify by investing in stocks, bonds, mutual funds, real estate, or other investment options. When making investment decisions, consider how much risk you’re willing to take and how long you’re comfortable waiting to reap the dividends. Be diligent in your research or consult a financial advisor to make informed choices.

4. Avoid accumulating debt

If you’re using credit cards or making loans to overspend on unnecessary purchases, you’ll incur a heavy debt that might be difficult for you to pay in the long run. Before spending any further, pay off your debts as soon as possible and prioritise those that have high interest. Work out ways to consolidate your debt or seek professional financial advice if you’re struggling to manage it.

5. Learn from the experts

Financial stability starts with knowledge, and learning from professional financial advisors is a great way to gain the right skills. Attend financial literacy workshops, watch expert-led webinars, or enrol in online courses to understand smart money management techniques.

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When employees practice smart financial planning, they reduce stress and improve their quality of life. For employers, supporting financial well-being through competitive pay and benefits as well as financial management programs leads to higher job satisfaction and better retention. It’s a win-win for everyone.

At ASW Consulting, we specialise in bringing together businesses and top professionals. Employers can rely on our talent sourcing consultancy in Vietnam for effective hiring solutions, while job seekers can trust us to find the right career opportunities.

Contact our talent acquisition consultants in Ho Chi Minh today. Let our headhunting company in Vietnam support your business growth and career success.

Disclaimer: The information contained in this article has been provided as general advice only. The contents have been prepared without taking account of your objectives, financial situation or needs. You should, before you make any decision regarding any information, strategies or products mentioned on this website, consult your own financial advisor to consider whether that is appropriate having regard to your own objectives, financial situation and needs.

 

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