Why Training is the Secret to Employee Retention in Vietnam
Retention of employees isn't just a buzzword—it’s a strategic necessity for companies in Vietnam today. With increasing competition for skilled labor, rising turnover rates (especially in labor-intensive sectors like manufacturing), and evolving expectations among younger workers, businesses can’t rely only on salary increases or perks. One of the most powerful levers companies have is training and development. Training does more than just sharpen skills—it signals that a company values its people, offers growth paths, and cares about long-term investment in their careers. In Vietnam, where many employees (especially Millennials and Gen Z) are looking for meaningful work, learning opportunities, and clear routes to promotion, training is no longer optional—it’s a secret weapon for retention.
The Vietnam Context: Turnover, Expectations, and Gaps
- Vietnamese manufacturing companies are facing turnover rates of ~24%, and worse in more labor-intensive areas.
- In surveys, “opportunities for training & development” consistently show up as among the top non-financial factors that influence whether employees stay or leave. For example, a study at Techcombank in HCMC found “suitable training & development opportunities” was one of the key factors impacting talent retention.
- Soft skills are increasingly in demand: many Vietnamese employers now consider them essential when hiring—and when deciding how to keep staff.
- Government policy also supports training: during COVID-19 and beyond, there have been programs to help employees maintain their jobs via upskilling / vocational training.
So in Vietnam, the need for training is real, immediate, and recognized both by workers and by institutions.
How Training Drives Retention: Key Mechanisms
Below are the primary ways in which training leads to higher employee retention, both globally and in the Vietnamese context.
| Mechanism | What It Does | Why It Matters in Vietnam |
|---|---|---|
| Growth & Career Progression | Employees see a future in your organization; they know they can upskill, change roles, get promoted. | Younger Vietnamese employees often prioritize long-term development over short-term pay boosts. Offering learning paths can help you keep them. |
| Job Satisfaction & Engagement | Training empowers employees, builds confidence, reduces mistakes, helps them feel more capable and valued. | Vietnamese workers tend to stay longer when they feel appreciated and see that their employer is investing in them. |
| Skills Relevance & Adaptability | As industries evolve (automation, digital tools, global integration), employees need updated skills. Training keeps them current. | Many firms in Vietnam are upgrading operations (e.g. “connected worker” approaches in factories). Employees who can adapt are more valuable—and more likely to stick around. |
| Culture & Loyalty | A culture of continuous learning shows care, nurtures loyalty, builds trust. | Vietnamese employees tend to value relationships, respect, and trust. A company that provides structured training often strengthens loyalty. |
| Cost & Risk Reduction | Reduces costs associated with turnover: recruitment, onboarding, lost productivity, etc. | With high turnover, those costs can really add up in Vietnam, especially in sectors with frequent hiring cycles. |
What Kinds of Training Work Best in Vietnam
Not all training is equal. To maximize retention, companies should consider and/or implement:
- Soft Skills & Leadership Training: Communication, conflict resolution, teamwork, emotional intelligence. These are often undervalued but make a big difference in engagement.
- Technical & On-the-Job Skills: Skills specific to the role. For example, factories may need training in new technologies or safety. In finance / banking, upskilling in digital tools, customer experience, etc.
- Personalised Learning Paths: Different employees have different goals. Offering varied training options helps — some may want to go into management, others to deepen technical mastery.
- Continuous & Ongoing Training: Not just one-off workshops, but regular refreshers, growth opportunities, mentorship. Learning culture matters.
- Using Digital & Blended Learning: Online courses, mobile learning, virtual trainings to complement in-person ones. These allow flexibility and scalability. Especially useful in Vietnam where geography or infrastructure might make frequent in-person training harder.
- Feedback + Alignment with Employee Goals: Ask employees what they want to learn; align training with both business needs and their aspirations. Keeps training relevant, reduces wasted effort.
Challenges & How to Overcome Them
While training is powerful, there are pitfalls. If done wrong, it may fail to strengthen retention. Here are common challenges and suggestions:
| Challenge | Risk | How to Mitigate |
|---|---|---|
| One-size-fits-all training | Employees don’t see usefulness, feel time wasted | Segment training by role, career aspirations; use assessments to tailor content |
| Lack of reinforcement / follow-up | Learning not applied; skills decay | Use refresher sessions; supervisors/coaches to mentor; embed learning into daily work |
| Poor alignment with business goals | Training seems irrelevant; no measurable impact on performance or retention | Network between L&D and business leads; set metrics to track impact (turnover in trained vs untrained, satisfaction, etc.) |
| Low perceived support from leadership | Employees think training is “lip service” | Leaders must visibly support and participate; communicate training’s value; give employees time and space to learn |
| Cost constraints | Budget limits; concern about ROI; fear that trained employee will leave for competitor | Start with cost-effective methods (online, peer training, internal mentoring); track ROI; build retention via culture so that leaving is less attractive |
Practical Steps for Companies in Vietnam (and for Invest Talent JSC clients)
To leverage training for retention, companies (and recruitment or HR partners like us) can:
- Conduct a Skills Audit – Find current gaps, future needs, and employee aspirations.
- Design Training Pathways – Map out clear development paths: what skills or experience someone needs to move up or shift roles.
- Mix Modes – Use a mix of in-house training, external courses, online modules, workshops, mentoring.
- Support Soft Skill & Leadership Training – Especially for mid-level and leadership positions.
- Build Feedback Loops – Survey employees about what training works, where they want to grow; monitor retention among those who receive training vs those who don’t.
- Involve Managers – They should coach, follow up, allocate time for learning, reward progress.
- Measure & Communicate ROI – Turnover rates, employee satisfaction, performance: measure before and after training programs. Share success stories.
Conclusion
In Vietnam’s competitive labour market, offering competitive salaries and benefits is necessary—but no longer sufficient. What often makes the difference between an employee staying or leaving is whether they feel they are growing, learning, and being invested in. Training and development do just that.
For employers, training boosts job satisfaction, builds loyalty, lowers turnover costs, and fosters a culture where people want to stay. For employees, it provides agency, skills, and a sense of purpose. For us, at Invest Talent JSC, we believe helping companies design and deliver meaningful training programs is a core part of recruitment and retention.
If your company is ready to build training pathways that retain talent, let us help you shape them—so you don’t just hire, but keep the best.
FAQs
Q1. How much does investing in employee training really cost vs the cost of high turnover?
Costs vary by company and role, but the financial burden of turnover includes recruitment, onboarding, lost productivity, mistakes, and sometimes damage to customer experience. Training is an investment that spreads out, especially if reused, and often yields savings greater than its upfront cost.
Q2. What is the typical time frame to see retention benefits from training?
It depends, but many companies report seeing noticeable improvements in retention within 6-12 months if training is continuous and well-aligned with business goals and employee aspirations.
Q3. Can small or medium enterprises in Vietnam implement effective training programs without large budgets?
Absolutely. SMEs can use peer mentoring, online courses, internal knowledge sharing, flexible scheduling, micro-learning, and low-cost external courses. Key is to be strategic and use resources wisely.
Q4. What role do managers and supervisors play in retention via training?
They are crucial: they help support employees, give feedback, reinforce learning, coach, and ensure training is applied. Without managerial support, training often fails to deliver long-term benefits.
Q5. Are Vietnamese employees more interested in soft skills or technical skills training?
Both are important. Technical skills are needed to do the job well; soft skills often determine the quality of work, communication, advancement, and job satisfaction. Many surveys show soft skills are increasingly demanded by Vietnamese employers.
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