Delaying pay rises fuels staff turnover and disengagement: survey

Delaying pay rises fuels staff turnover and disengagement: survey

Salary Survey Vietnam 2025 offers insights on pay levels and hiring trends to help businesses have transparent, market-driven conversations with their teams.

Students at the Hanoi National University of Education Career Fair. — VNA/VNS Photo

A growing number of employers in Việt Nam are witnessing the consequences of postponing pay rises, with 93 per cent reporting increased staff turnover or disengagement as a direct result, according to a new survey by global talent solutions firm Robert Walters.

The survey, conducted with 200 professionals and employers across the country, reveals that nearly six in ten employers either reduced or postponed salary increases in the first half of 2025. Among employees who didn’t receive a raise, 60 per cent said they are now actively seeking new jobs. Even those who did receive a raise were largely dissatisfied – 64 per cent said the increase was below expectations.

The report also found that close to 60 per cent of professionals feel underpaid compared to market rates. 

The firm’s Salary Survey Vietnam 2025 offers insights on pay levels and hiring trends to help businesses have transparent, market-driven conversations with their teams.

The survey found that business performance was the top reason cited by employers for holding off on pay increases, followed by market uncertainty (32 per cent). Others pointed to budget constraints or gave no specific reason. 

Phuc Pham, country manager at Robert Walters Vietnam, warned that while cost-saving measures may be necessary, they risk undermining employee morale and loyalty.

“While employees may recognise the challenges businesses face, unmet expectations are still driving them to explore other opportunities. With AI tools simplifying job applications, it’s easier than ever for professionals to seek new roles," he said.

Pham warned that even when businesses face financial challenges, failing to meet employee expectations may come at a greater cost.

He added that while financial incentives remain important, companies must also consider non-monetary ways to retain top talent.

“In times of tighter budgets, we encourage businesses to think more creatively – offering career growth, flexibility or internal mobility can go a long way,” he said. 

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