HR Planning of Vietnam - Russia Joint Venture Bank

3. Current human resources of Vietnam - Russia Joint Venture Bank

VRB always focuses on investing in recruiting, training, and developing human
resources, creating conditions for employees to learn, develop and promote internally.
Human resources at VRB fluctuate from year to year and are shown in the table of
labor recruitment results as follows:

In recent years, the number of employees in enterprises has increased in both quantity
and quality. Analysis of the table above shows that:

The number of employees of enterprises tends to increase slightly from year to year.
668 people in 2020 - 713 people in 2021 - 770 people in 2022. Due to many factors
affecting both inside and outside the organization, leading to a change in the number
of employees inside the team.

The disparity in the number of male and female cadres is quite large. Due to the
specificity of the industry, the number of women make up the majority of the total
number of employees in the enterprise. Specifically: in 2020, the number of female
employees will be 433 people, accounting for 64.8% of the total number of officials,
in 2021 the number of female employees will be 470 people, accounting for 65.9% of
the total number of officers, in 2022 the number of female employees will is 522
people, accounting for 67.7% of the total number of staff. Meanwhile, the number of
male employees working at the Bank is less (mainly in departments such as
Technology, Driving).

Labor by education level has not changed much over the years and tends to increase
slightly. Most employees in enterprises work in offices, so they need a high level of
education and experience. Education level below university accounts for a low
percentage, the workers at this top are the main drivers because, for this position, it is
not necessary to have a high education level but at least a high level. class. The
majority of employees have a university education, while graduate degrees account for
a lower proportion than university graduates.

Experienced employees make up the majority of the total number of employees

working at the enterprise. The longer they work in the enterprise, the more
experience, knowledge, and expertise they have accumulated in the enterprise; they
know how to apply accurately and flexibly in work. For good employees with
professional qualifications in the profession to stick with the enterprise, the enterprise
needs to have a salary and remuneration commensurate with what they have spent.
With the development in terms of quantity and quality, VRB has made strides in the
economy as well as human resource needs to ensure effective business operations.

4. Human Resources plan of Ngân hàng Liên doanh Việt - Nga (VRB)
Development goals for the period of 2020-2022: VRB Bank's goal in the period of
2020-2022 is to develop effectively and sustainably, and become a bank with a
modern digital technology platform, one of the leading banks in terms of profitability
in the group of banks with the same capital size.
4.1. Forecasting Human Resource Requirements
VRB's human resource management department forecasts that their workforce needs
to be capable to meet the development goals that the bank has set for 2021-2022. VRB
has mainly used the Bottom-Up Forecast technique to forecast staffing needs.
The bottom-up approach to analyzing human resource needs starts at the lowest level
of the organizational structure. VRB's human resource management objective for this
approach is to ensure that all levels of the organization are staffed based on frontline
staffing needs. The company began forecasting the staffing needs of frontline
employees. VRB's HR managers then conduct an analysis of personnel needs at
the next higher level of the organizational structure based on the development
goals that the organization has set for the period 2020-2022. This human resource
management approach ensures that all human resource needs at the lowest levels of
VRB's organizational structure are supported through the right number of employees
at the higher levels of the organizational structure.

Based on the data, it can be seen that, in the period 2017-2019, VRB's personnel
demand is quite high and increases year by year, spreading from 52-99 people. This is
a period of strong development for this bank, so the demand for personnel also grows
significantly. Especially in positions of technology and customer care are the two
departments with the highest demand in all 3 years. The number of employees
recruited in all 3 years met the needs of VRB. Specifically, in 2017, 50/52 people
were recruited based on the recruitment demand, this figure was 68/72 in 2018 and
82/99 in 2019. Although no year has met the set targets, the number of selected
personnel are all people with good qualifications, experience, and skills. It can be seen
that VRB always focuses on service quality and customer experience in recruitment.
In addition, this bank also pays great attention to promoting the digital transformation
of banks.

Due to the impact of the Covid-19 pandemic, the economic situation slowed down,
and the economy became more gloomy, leading to a significant decrease in the
demand for personnel. The period 2020-2022 is the period when the Vietnamese
economy gradually recovers from the heavy impacts of the Covid-19 pandemic. The
business situation of enterprises in general and the banking industry in particular
gradually returned to the growth trajectory, but the speed was still quite slow
compared to the previous period. VRB is also one of the banks that is gradually
regaining its recovery momentum. Based on the comparison of the level of demand
response and job performance in the period 2017-2019 and the economic situation in
2020, VRB's departments have forecasted the human resource demand in the period of
2020-2022 using bottom-up forecasting techniques. It can be seen that the positions
with high requirements for human resources in previous years are still forecast to have
the highest number of vacancies. Not only that, from 2020 to 2022, the number of
VRB's key positions tends to increase gradually. Besides customer care, technology
following the general trend has also emerged in recent years, so the number of
employees in this position is expected to grow strongly in the coming years.

From these forecasts of each department, human resource managers have analyzed
and aggregated the next higher level of human resource needs to come up with needs
in line with the organization's 2020-2022 goals. As shown in the table, VRB's total
personnel demand in 2020 decreased significantly, to 48 people, 51 people lower than
in 2019. However, because the epidemic situation has been controlled and the
economy is gradually recovering, the demand for personnel in the following years is
likely forecasted to grow steadily, with 60 and 76 people, respectively for the years
2021 and 2022. Among them, highly qualified human resources are forecasted to have
superior demand to adapt to the situation of the business environment and the
development goals of the organization. With the goal of sustainable development,
efficiency, and promotion of digital technology, VRB forecasts the demand for
personnel with a university degree or higher, accounting for 96-98% of the
recruitment demand. Notably, the Customer Service and Technology divisions
outperformed the rest of the divisions, hovering around 45% and 25% respectively. In
which positions recruited in the Technology department, it is required to have
experience and skills in programming, software development, and quick access to the
latest technologies. Personnel recruited for positions in the Customer Service
department are required to have a certain understanding of banking processes, in
addition, good communication and listening skills, under pressure are also
recommended for direct customer contact positions. Besides, the Risk Management
department is also extremely important to this bank, so the vacancies require
personnel with in-depth knowledge and skills in risk assessment and analysis credit,
market risk, and proficient use of risk management tools and software.
4.2. Forecasting Human Resource Availability
4.2.1. Forecasting the Supply of Inside Candidates
Table 1 below presents the current human resource status of VRB by different
departments in the period of 2020 - 2022. This table is intended to provide an
overview of the allocation and number of available staff relative to the bank's human
resource needs.
Based on the above table, we can see some remarkable points about VRB's human
resource status as of 2022.
First, the Customer Service department has enough manpower to meet the
requirements. This department requires not too much expertise, so the recruitment
always meets the target compared to expectations. The Accounting and Auditing
Department has a high workload, but always ensuring human resources has helped the
bank control the workload.
Second, the Technology, Legal, and Capital departments are facing a shortage of
human resources. This may indicate a shortage of manpower in specific areas with
important jobs. A lack of human resources in the Technology department can make it
difficult to develop, manage and maintain the bank's information technology systems,
affecting the customer experience. A lack of human resources in the Legal department
can make it difficult to ensure compliance with legal regulations and manage legal
risks, affecting the bank's reputation and reputation. A lack of human resources in the
Finance department can affect the effective management and utilization of capital of
the bank, reduce the ability to provide financial services, and limit the ability to meet
the capital needs of customers.
Finally, in the Office, Risk Management, Retail, and Network departments, there was
a surplus of human resources. However, this excess of human resources still affects
the bank due to excess quantity but lack of really qualified and skilled human
resources.
To ensure a balanced and appropriate human resource situation, VRB needs to
consider adjusting human resource allocation, while focusing on attracting, training,
and developing employees in the necessary departments. This will help enhance
competitiveness, improve service quality, and meet customer needs in the best way.
4.2.2. Forecasting the Supply of Outside Candidates
Regarding the number of external human resources capable of meeting the banking
industry in general, it is forecasted to increase by 20% per year between 2020 and
2022 in terms of the demand for high-level human resources for the Banking and
Finance industry. Particularly in big cities like Ho Chi Minh City, the recruitment
demand of this industry group accounts for 5% (about 15,000 employees) of the total
number of jobs to be recruited annually. In which, workers with university and college
degrees account for more than 80% of recruitment demand.
The demand for human resources in the Banking and Finance industry is always at the
top due to the broad nature of this industry including many different fields such as
banking, corporate finance, insurance finance, tax finance,... However, the high
demand for recruitment does not mean that every student with a university degree can
easily apply for a job. According to many surveys, only one in 30 new graduates can
successfully apply to this industry. According to the Annual Statistical Report made
by the Personnel and Organization Department, the State Bank of Vietnam (SBV), as
of June 1, 2021, the entire banking industry is estimated to have 346,614 people, with
a submission structure degrees as follows: Doctor: 569 people, accounting for 0.16%;
Master: 20,286 people, accounting for 5.85%; University: 263,927 people, accounting
for 76.16%; College: 23,453 people, accounting for 6.77%; Intermediate: 20,054
people, accounting for 5.79%; The rest (primary or untrained): 18,325 people,
accounting for 5.29%. The above data shows that the majority of human resources
with professional training with college degrees or higher in the banking industry are;
compared to other industries quite high.
As for the number of external human resources of VRB in particular, it is estimated to
have increased from 30% to 32% per year from 2020 to 2022. With the number of
candidates applying to the Bank depends on the time of change but basically, most
new positions are recruited by external candidates, and a few want to change their
current position. The number of applications for positions in enterprises is increasing,
the screening rate is increasing. That shows that the vacancies in enterprises are more
and more attractive to applicants. Only in 2021, according to VRB's plan, the bank
received more than 1050 job applications from outside human resources, but only 98
people were accepted. That is, if 100 people apply for a job, only nearly 10 people
will be accepted to work, so the number of outside human resources that cannot meet
the needs of the bank is very high.
4.3. Comparing Requirements and Availability
Based on Table 5 above, it can be seen that VRB has an excess of two to four
employees in the Office, Risk Management, and Retail - Network departments. Along
with that, the Technology, Legal, and Capital departments lack human resources,
especially the Technology department, which lacks 25 employees.
4.3.1. Shortage
First, recruit good human resources from top universities: Can recruit human
resources from leading universities in technology, legal and banking, financial
experts, and private investors. It is necessary to create favorable conditions for
talented, dynamic, and experienced people to participate in the work.
Second, enhancing online recruitment programs: Online recruitment programs, using
social media and professional websites, can help companies find the right candidates
and speed up hiring.
Third, strengthen cooperation with business partners: It is necessary to strengthen
cooperation with business partners, especially entrants in the technology and banking
industries. This cooperation will help bring in human resources to meet the company's
work needs, as well as optimize available financial resources.
Finally, building partnerships with universities: The company can build partnerships
with universities to find and recruit high-quality human resources. These activities
may include holding consulting sessions, internships, tours, or seminars to introduce
the company to students and generate interest in learning about the company.
4.3.2. Surplus
First, transfer or restructure existing personnel: Reassign tasks to employees or
restructure departments to effectively use human resources. This should be done
carefully, ensuring that it does not affect the business operations of the bank.
Second, workflow optimization: Reassess processes, workflows, and processes to
ensure they are efficient and no longer wasted.
Third, encourage changes in human resource thinking: To solve the situation of
human excess, the human resources department needs to encourage employees to
change their thinking and working methods to make the most of available human
resources.
Finally, strengthen staff training and development: Strengthen staff training and
development to improve the skills, knowledge, and working capacity of employees in
the bank. Improving the expertise of key departments helps to enhance the
responsiveness of those employees.