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Talent attraction strategy of Samsung Vietnam

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International Journal of Advanced Research and Development

International Journal of Advanced Research and Development

ISSN: 2455-4030; Impact Factor: RJIF 5.24
Received: 26-05-2020; Accepted: 13-06-2020; Published: 27-06-2020
www.advancedjournal.com
Volume 5; Issue 3; 2020; Page No. 18-22

Talent attraction strategy of Samsung Vietnam

Nguyen Hoang Tien1, Leo Paul Dana2, Rewel Jiminez Santural Jose3, Nguyen Van Dat4, Nguyen Thi Hoang Oanh5, Bui
Xuan Bien6
1, 3
Saigon International University, Vietnam
2
Montpellier Business School, Vietnam
4
Tay Nguyen University, Vietnam
5
Thu Dau Mot University, Vietnam
6
Finance and Banking University, Hanoi, Vietnam

Abstract
At Samsung, people are always considered the most important factor. Therefore, Samsung always pays special attention to
training programs, developing human resources with the goal that each Samsung employee is not only good at expertise, but
also has a broad cultural and social knowledge. To do that, Samsung has focused on building a variety of training programs,
not just for new employees, but for all employees at all levels throughout the company. The training content also aims to
provide knowledge and skills suitable to the company's production and business activities, and to keep pace with the
development trend of the society. As a result, those training programs have solved the human resource difficulties Samsung
has encountered. Evidence is that Vietnam has become Samsung's largest manufacturing base globally, with more than 33% of
Samsung phones being manufactured here. This can also be considered a major contribution of a foreign corporation in the
process of training human resources in Vietnam, when the domestic education system has not met the demand. In addition to
contributing to job creation, investment attraction, and economic restructuring in Vietnam, Samsung also contributes to the
development of high-quality human resources in Vietnam. Besides attracting talent is a matter of concern for many businesses.
At Samsung Vietnam, attracting talents is also one of the important issues in human resource management. However,
attracting talents is not merely building policies to attract employees. It is also the deployment of activities to promote those
values to outside workers to know better, to be aware of the company's policies and regimes.

Keywords: human resource management, talent attraction, Samsung, Vietnam

1. Introduction are having good, thoughtful, dynamic and bright human

Gone are the days of the "Sage giving to the nation". Now, resources. As the leader of an organization, you have
if leaders do not know how to attract, employ and retain probably asked yourself many times: How to recruit a good
talented employees, they will probably "fly" to other employee? In fact, it is difficult to recruit good employees,
potential companies, the problem is only sooner or later. it is even more difficult to retain them. Whether they leave
Talent is the national spirit. The stronger the air is, the after training or have solid experience is what makes most
stronger and bigger the water is; the weaker the air, the business leaders headache. Many people believe that the
lower the water. Today, in the era of knowledge economy only strategy of retaining employees is to clearly express
and globalization, the attraction and employment of talented their rights and responsibilities in labor contracts. But that is
people in state management in general, and the operation of not the only way. Performance, motivation for commitment
state administrative agencies in particular. Over the past and determination to perform well the work of employees
time, our Party and State have always affirmed the depends on the working conditions they enjoy. Attracting
importance and issued a number of policies to attract and people is the top goal of businesses, where human resource
respect talented people, initially achieving some remarkable management is always focused. In fact, it is not like that,
results. However, in reality these policies have not been after recruiting talents and enterprises that do not have
effective as expected, have not detected properly and methods to keep them, they have no meaning (Cuong, 2010;
attracted many capable and qualified people to work in the Dung, 2005; Hang, 2015; Hanh, 2015) [2, 3, 4]. In order to
civil service. At the same time, a part of cadres and civil contribute to solving the above problems and meeting the
servants with high qualifications and capacity in state requirements, it is necessary to have a systematic study of
agencies resigned to move to the private sector. That theory and practice, on which basis, propose suitable
situation is due to many objective and subjective reasons, practical solutions to Vietnam's specific conditions and
such as: working environment and mechanisms and policies, circumstances in attracting and appreciating talented people
inadequate remuneration; shortcomings in the recruitment, in state administrative agencies (Loc, 2012; Thinh, 2005) [8,
11]
appointment and employment of cadres and civil servants, . Therefore, we chose studying the topic "Strategy of
etc. At present, the competitive advantages of the companies attracting talents of Samsung Vietnam".

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International Journal of Advanced Research and Development www.advancedjournal.com

2. Theoretical framework organization will have attractive values.

2.1 Fundamental concepts Minimize training costs
Human resources As mentioned above, talented people are people with values,
Human resources is one of the important factors qualities and competencies suitable for the business.
determining the success and development of each Therefore, when businesses attract talents, the enterprise has
organization and every country. Therefore, all organizations recruited people who meet the requirements of the business.
and countries in the world are very interested, focusing on Besides, the talents themselves contain the available values,
human resources. Human resources are not merely the the competencies suitable for the job. So businesses do not
workforce that has been and will be, but also the strength of need to spend a lot of training costs on talented people.
the physical, mental and spiritual strength of individuals in a Low personnel volatility
community or a given country that have the ability to put When attracting talents, businesses will have to build good
into use in the process of social development. Thus, this policies, regimes on compensation, development training,
study will focus on considering human resources from the etc., which are conditions that meet the wishes of workers
perspective of the overall labor potential of officials and and are always created for people. Labor challenges,
employees in the organization. These labor potentials are opportunities to develop yourself. Therefore, the process of
factors that need to be discovered and promoted to bring building attractive factors to attract financial talents is to
about certain successes for the organization (Tien, 2017; bring the employees' commitment and commitment to the
Tien et al, 2019a; Tien & Anh, 2017). enterprise. When the cohesion of employees to the business
Talent increases, it means that the rate of employees leaving the
Talents are people who are intellectually, physically and company will decrease. Thus, the fluctuations in human
more productive than others and make significant resources will be significantly reduced.
contributions to the field in which they are involved. In a Increase the productivity of workers
broad sense, talented people can also understand that they In many respects, attracting talent obviously contributes to
are passionate, have the will to contribute and contribute to increasing productivity of workers. Firstly, workers with the
society with all their talents, they have or will surpass other right skills, experience and knowledge will quickly catch up
people intellectually, physically and in terms of working with the job. They not only have professional knowledge,
efficiency. In fact, each enterprise with different specific but also a good sense and attitude. They always know how
types has different views, perspectives on talent. Talents to set goals for themselves at work, this is an important
will be studied from the perspective that people are not only factor contributing to increased efficiency. In addition,
competent, able to work but also suitable to the culture, competent and professional people also contribute to work
specific characteristics of the business, work ethic and improvement initiatives that increase job productivity. The
dedication to the business (Tien, 2013; Tien, 2019; Tien, working environment where employees are concerned,
2019a). encouraged and they are highly appreciated for their
Attracting talents policies contributions. Therefore, it increases the enthusiasm and
In human resource management, attraction is to provide dedication of employees to the work, contributing to
employees with a quality working environment, improving work performance.
opportunities and competitive benefits. And according to Increase operational efficiency of the business
Jane Kennelly, attracting talent today is not just recruiting Thanks to the policies and activities of attracting talents,
ads, but building employer brands to appeal to talented businesses will easily recruit quality human resources and
people. As such, attracting talents is an activity in managing recruit large numbers. This is essential to meet the
talents, which uses appropriate measures to attract people manpower for the project. For each project, human resource
with excellent experience and skills to work in a suitable is an important factor, so businesses will not waste business
position in business. Karma. More specifically, the policy to opportunities due to lack of human resources. In addition,
attract talents is referred to as the development of recruiting and retaining competent people suitable for the
mechanisms and policies on salaries, development training, business is an essential element for the development and
building an attractive working environment and corporate maintenance of competitiveness of the business. With a
culture to meet the expectations of the workers. At the same team of good, professional employees, the business will
time, building communication policies to promote these increase customer satisfaction on the quality of products and
attractive elements, recruitment policies to easily recruit associated services. Therefore, not only increase sales of
suitable and talented employees who are devoted to businesses but also increase competition in the market
organization and its businesss (Tien, 2015; Tien & Anh, (Tien, 2012; Tien, 2012a; That, 2008; Cuong, Huyen, &
2019). Mai, 2004; Thuy, 2010) [1].

2.2. The role of attracting talents 2.3. Factors affecting the attraction of talents in the
Reduce the cost of recruiting business
Attracting talent means promoting business image, Internal factors
implementing policies, remuneration, building culture, Attracting talent in the business is influenced by many
working environment, creating businesses to become an different factors, both within the enterprise itself and the
ideal workplace, as Workplaces deserve the dream of impact of external factors. Therefore, in order to attract
workers. Once a good mechanism has been developed to talents, businesses need to carefully study such factors as
meet the needs of workers, it will inevitably benefit the (Tram, 2012; Hoa, 2011; Nham, 2015; Hieu, 2016):
organization. Firstly, it will bring a position for businesses - Prestige and position of the business.
in the battle of talent competition. Besides, talented people - Viewpoints of the employer.
are also the factor that attracts talented people. Talents in the - Financial capacity.

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International Journal of Advanced Research and Development www.advancedjournal.com

External factors housing allowance. In Vietnam, the company also

-Legal policy supports 20 USD of living allowance to support
-Social and economic conditions employees to rent houses, petrol and cars. For
-Professional position employees who have to find accommodation to stay in,
-The development of education and training system the Company has a department in charge of surveying
-Competitors lodging rooms and will take employees to the rooming
area to rent. Currently, Samsung has completed the
3. Research results construction of 09 dormitories (each building has 5
Current situation of talent attraction policy floors), with a capacity of 7,800 employees has been
Attracting talents is the concern of many businesses. At arranged in all rooms and is continuing to build more
Samsung Vietnam, attracting talents is also one of the new buildings for households.
important issues in human resource management. However,  Insurance: Samsung has also implemented well the
attracting talented people is not merely developing policies insurance policies for employees (Social Insurance,
to attract employees, it is also the implementation of Health Insurance and Unemployment Insurance) in
activities to promote those values to the outside and inside accordance with the Labor Law and the State Social
of businesses to be known better, aware of the company's Insurance Law right from the start of the first month of
policies and regimes. These activities have also been partly employment at the company.
mentioned in Samsung's talent attraction strategy, but there  Other welfare regimes: Welfare benefits for employees
have been no specific investments and plans. are also very interested by Samsung leaders, with many
Actual recruitment policy status initiatives in improving the quality of bus services for
Samsung does not have a well-established recruitment factory employees; improve the management of the
policy. Therefore, there is no plan to recruit by year, mainly cafeteria with a comfortable, friendly atmosphere,
irregular recruiting at the proposal of the departments. The delicious meals and safety in the factory, ensuring the
recruitment process of Samsung Vietnam consists of a health of workers. In addition, Samsung employees are
profile step, and two rounds of interviews, first round with also provided free mid-day meals, employees at
HR department, second round with direct management and dormitories or boarding houses if staying in the
company leaders. The company has also had candidates' company, they will receive 50% of the meals.
evaluation forms with all criteria on appearance, skills,
knowledge, expertise, experience. However, there are no Advantages
specific provisions on welcoming candidates as invitation It can be seen that in the process of formation and
letters to interview, answer results. Especially in Samsung's development of Samsung Vietnam, in addition to constantly
recruitment policy, there are no clear regulations on striving to promote business activities, has also focused on
determining recruitment sources and recruitment costs. promoting to consolidate human resources. From
Actual situation of salary, bonus and welfare policy understanding the most basic needs and desires of
 Salary: Samsung always has a clear salary and bonus. employees, Samsung Vietnam has built for the enterprise
The salary of the employee will be calculated based on the most basic foundation in human resource management,
the time he / she works in the employee's company. The initially focusing on development policies to attract talents,
long-term association with the company, the higher the specifically:
fixed salary of the employee, the basic salary will + Develop policies to attract talented people the salary,
increase according to working year to a certain extent. monthly income to meet the majority of workers
(Particularly for Samsung branch in Vietnam, the + Implement activities to attract talents
average salary for a direct production employee is about
300 USD / month). In addition to the basic salary, the Disadvantages
employee also has an overtime wage. When working, Besides the achieved results, Samsung Vietnam still has
employees working overtime in the day will be certain limitations in attracting talents. The company has not
increased 150% of the hourly wage. If overtime on really invested in building policies and regimes to retain and
Saturday, Sunday increase will be 200%. attract talents. Especially not focused on promoting the
 Bonus: Samsung workers are always encouraged to business image to potential candidates, talented business
come up with useful ideas for the company. If the idea people are looking for. The new policies on salaries,
is adopted and applied, the worker will receive a bonus. bonuses and training partly meet some basic human needs
Samsung always has a pretty generous bonus regime. that are not really competitive, and do not touch the
When the department achieves a high result, everyone psychology of excellent talents - labor, management
will get a corresponding bonus. Lunar New Year positions because with talent, their needs will be higher than
bonuses 100% salary; Tet holidays have gifts to their basic basic needs. In particular, offline communication
motivate employees; reward seniority, reward channels have not yet been exploited such as participating in
employees for achieving excellent results in the events, recruitment days and job fairs. With the forms of
quarters and in the year. attracting talents with scholarships, the company has never
 Allowances and subsidies: Samsung always provides exploited it. Therefore, businesses have not attracted many
allowances for employees. In Korea, to create talents interested in joining their businesses.
accommodation for employees, Samsung built a
dormitory with full amenities: dining room, gym, 4. Discussion
library, and bar. Coffee is very popular in Korea, the To attract talented people, there are many components from
cafe here even has its own roasting box, and employees salary, bonus, welfare to training and development
who do not live in the dormitory will have a separate opportunities as well as the working environment, but not

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International Journal of Advanced Research and Development www.advancedjournal.com

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