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Recruitment & HR
Mar 6th 2024

How to Draft an Effective Performance Improvement Plan [+ FAQs]

As a business owner, you should constantly be seeking ways to improve workflow, efficiency, and returns on your investments. Thus, it is critical for employers to constantly monitor and maintain the performance level of their employees. But what happens when an employee is falling short of the mark? It is not always the best idea to simply fire and rehire. A great way to maintain and guide the performance level of employees is through a performance improvement plan! Performance improvement plans are a customized and detailed guide that is tailored to an employee. Performance improvement plans consider the causes of underperformance, and highlight short, medium, and long-term goals that an employee should meet to stay on track in terms of their performance. Performance improvement plans may sound like bad news to an employee, as it may make them think they are on the verge of termination. However, many employers use performance improvement plans to proactively correct mistakes and underperformance to give employees a fair chance to improve. A well-structured and thoughtful performance improvement plan is great for company morale and efficiency, as it keeps performance up and shows your employees you care about them and their improvement within your company. This article will discuss everything you need to know about crafting the perfect performance improvement plan for any occasion and will provide tips, samples, and much more to take your PIP to the next level! Table of Contents:What Is a Performance Improvement Plan?How to Create a Performance Improvement PlanHow to Write a Performance Improvement PlanPerformance Improvement Plan ExamplesPerformance Improvement Plans FAQs What Is a Performance Improvement Plan? A performance improvement plan is an official document that provides a comprehensive and detailed explanation of changes an employee needs to make to their workflow to avoid getting fired. Performance improvement plans typically delineate milestones that an employee should reach within 30, 60, and 90 days after the meeting. Performance improvement plans and performance reviews are sometimes conflated with each other but are slightly different. Whereas performance reviews are great at tracking the performance of an employee, it does not offer recommendations and ways that an employee can improve. A performance improvement plan will incorporate features of a performance review to set a foundation upon which improvements can be made. Therefore, it can be argued that a performance improvement plan is a more effective way to not only track the performance of an employee but to ensure that they are staying on track! Performance improvement plans are beneficial in several ways; here are a few. 1. Creates a healthier company culture Sometimes, employees need goals to work towards to motivate higher performance levels. A strong performance improvement plan is a great way to relay these target goals! Instead of cultivating a workplace culture of fear of underperformance, performance improvement plans create a healthy company culture where employees understand that they are not alone and that they will not be arbitrarily fired if they are unknowingly underperforming. 2. Saves the company resources (time, money, etc.) The termination and hiring of new employees is a lengthy and expensive process. Not only will you need to pay a severance package to a terminated employee per their contract, but time and money will need to be spent scouting, interviewing, and onboarding a new employee. A performance improvement plan takes your current workforce and sets them on the right track, mitigating the need to fire and hire when an employee underperforms. 3. Effective Oftentimes, an employee is unaware they are underperforming. Falling into routine is easy, and bad habits are those that often go unnoticed. Instead of reprimanding and taking aggressive action against an underperforming employee, a performance improvement plan can be used to notify an employee about their underperformance. In many cases, receiving a performance improvement plan is enough of a wake-up call for that employee to make changes to their work style and perform at the level you want them to!How to Create a Performance Improvement Plan Creating a strong performance improvement plan is a multi-step process that considers many factors. Here are the most important steps to creating a well-structured and comprehensive performance improvement plan. Identify the problems with the manager employee The first step to drafting a performance improvement plan is to recognize the need for one. Sit down and consult with the manager or supervisor of the employee in question and single in on the areas in which they are underperforming. Set measurable achievable goals Once you have narrowed down the issue, begin to find solutions or ways that the employee can improve. Make goals for several time markers; a typical performance improvement plan will have target goals for 30, 60, and 90 days. This will form the meat and potatoes of your performance improvement plan. These goals will largely depend on the position of the employee, but here are some examples of goals that could be considered for the following positions.PIP for sales: Reaching X amount of sales in a week, month, and quarter.PIP for customer service: Improve customer satisfaction by X% in 1, 2, and 3 months.PIP for behavior/attitude: report to HR for remedial courses on office culture and workplace behavior, receiving less than 2 complaints in the second month, receiving 0 complaints in the third month.PIP for managers: take a management course in the first month, manage a small team under supervision, and resume the previous management position in the third month.PIP for poor leadership: take a leadership course in the first month, submit a project outline in the second month, and execute the project in the third month.PIP for attendance: maintain a 90% attendance rate in the first month, 95% in the second month, and 100% in the third month. Define the support resources that the employee will receive A large part of a performance improvement plan is making sure that the employee knows that they are not alone. Ensure that you provide and clearly outline the support that an employee will receive throughout executing their performance improvement plan. Some common examples of resources provided for employees under a performance improvement plan include CoursesSeminars/Training1-on-1 mentoring/supervision Create a timeframe or schedule to track progress Determine the timeline you wish your performance improvement plan to follow. This varies on a case-by-case basis, but general performance improvement plans are set over a 2-3 month period. For instance, if an employee is underperforming in their duties, their performance improvement plan can detail a 3-month process to get them back to speed. This may include lightening their workload and progressively adding more as they grow accustomed to it. Define the actions that will be taken for different outcomes Finally, figure out what consequences and measures are in place should the employee not improve during their performance improvement place or if they revert to their previous ways following the conclusion of the plan. For instance, if an employee is set on a performance improvement plan to correct bad behavior and they do not improve, make it clear that failure to comply will result in immediate termination or a demotion.How to Write a Performance Improvement Plan This section will provide a breakdown of the different components of a performance improvement plan. Be sure to include these sections in yours to ensure that your plan addresses everything it needs to! The employee’s information Ensure that your employee performance plan contains the employee’s information, including their full name, job title, and department they work under. Date For the sake of record keeping, as well as to accurately track the performance of the employee, ensure you include the date on an employee performance plan. Metrics that need to be improved Identify the areas that require improvement. A good way to structure this section of the performance improvement plan is through a list or a table! Activities planned to improve performance Map out the activities/events that are in place to assist the employee in improving their performance. Similar to the metrics of improvements, this section of your performance improvement plan should be listed or tabulated to mitigate any confusion that could arise. Targets/goals deadlines Create a timeline for the employee to follow your performance improvement plan. Set target goals for your time intervals and make sure that you clearly describe the nature of each goal and how you would like to see them achieved. Final date for completing the PIP Your performance improvement plan should have a projected date of completion. This places a physical deadline on the employee and, in many cases, is effective in triggering a rapid change! Results Every performance improvement plan should indicate the metrics of success. This helps employees greatly in determining whether they are following the plan correctly. Progress review meeting schedules Comprehensive performance improvement plans will state pre-scheduled progress review meetings with the employee to ensure that they are on the right track or if the plan needs further adjustments to better align with the employee’s needs. Fields for outcomes of progress review meetings Employee improvement plans should also state when the results of the aforementioned progress review meetings will be shared with the employee. This feedback is essential for the employee to fully understand if what they are doing aligns with their employer's expectations. Final review results Finally, the performance improvement plan should indicate when a final meeting will be held to discuss the results of the plan and the steps to be taken moving forward. Ensure that the employee understands the gravity of the situation and that they should work hard towards performing at the level you require them to.Performance Improvement Plan Examples Here are some examples of performance improvement plans for different layouts. Performance Improvement Plan for Attitude Sample Sample of Performance Improvement Plan for Attitude Performance Improvement Plan for Sales Sample Performance Improvement Plan for Sales HR Improvement PlanExample of HRImprovement Plan Performance Improvement Plans FAQs These are some commonly asked questions about performance improvement plans. We hope that the answers to these questions will shed some more light and clarify the functions and benefits of a well-structured performance improvement plan. 1. When should a performance improvement plan be used? A performance improvement plan should be used in cases where an employee is underperforming or misbehaving in the workplace (this, of course, excludes more severe issues such as abuse, violence, and harassment). More importantly, performance improvement plans should only be used when you, as the employer, believe that the problem can be fixed and that the employee is capable of change. Performance improvement plans should be carefully thought out and should be delivered to the employee as soon as possible to limit underperformance as quickly as possible. 2. How to ensure a PIP is effective? A PIP’s effectiveness can best be judged through regular meetings with the employee in question. Performance improvement plans can also be directly supervised during working hours, which gives an employer a closer look at the employee’s actions and allows for immediate corrections when necessary. 3. How long should a performance improvement plan last? While the length of a performance improvement plan varies on the position of the employee, general time frames of 1, 2, or 3 months are most commonly utilized. 4. What are the advantages of a PIP? The primary advantage of a performance improvement plan lies in the efficiency in employee behavior turnover, the time saved from having to scout and hire a new employee, and the financial savings from not having to pay a severance package for a terminated employee and a new compensation package for an incoming hire. 5. What are the disadvantages of a PIP? A performance improvement plan can be disadvantageous because, in some cases, employees sometimes do not take criticism well. This results in little to no improvement and makes the formulation of a performance improvement plan a waste of company time and resources. Want to read more HR blogs and recruitment news? Follow our blog for more! Cake is one of the best resume websites in the market. We also offer other HR-related services like Job Search, Job Posting, Talent Search, Recruitment Services, and Employer Branding. --- Originally written by Alexander Coye ---
Recruitment & HR
Mar 6th 2024

How to Announce an Employee is Leaving [+Examples & Writing Tips]

Whether it be for the sake of professional progression or conflict within the workplace, there are many reasons that an employee can announce their departure from a company. It is standard practice for either the company administration or the employee to announce their resignation to the staff as a matter of courtesy and respect. Announcing that an employee is leaving allows the staff to keep updated as to who their colleagues are so that work can continue as usual after the departing colleague leaves. Being around the same people day in and day out, it is of little surprise that an employee announcing their resignation to staff can bring a mix of emotions to their colleagues. In addition, if the employee announcing departure was previously engaged in a project or task, slack will need to be picked up and the workload will need to be shared while the administration seeks out a new hire. To minimize the impact of an employee departure announcement, the HR department and employer must work hand-in-hand to find a replacement for the vacant position as soon as possible. While in-house promotions are in order, the administration should also consider whether new talent should be employed to fill the gaps! Are one of your employees looking to further their career and take their next professional steps with another company? No problem! This article will cover everything you need to know about employee resignation announcements and provide tips, samples, and templates of exceptional employee departure announcements for your perusal!Table of Contents:Why Do You Need an Employee Departure Announcement?How to Announce an Employee is Leaving?How to Write a Resignation Announcement Email to Staff?Employee Leaving Announcement Email TemplateEmployee Departure Announcement SamplesWhy Do You Need an Employee Departure Announcement?From an employer’s perspective, it is essential to inform other staff members and notify the team of an employee’s resignation. Here are some reasons why a staff departure announcement is important: 1. Allowing time to say goodbye Announcing an employee’s departure gives their colleagues time to arrange their farewells. Employees announcing their resignations typically do so to the administration first, meaning that their colleagues may not be aware. Announcing the employee’s resignation to the staff notifies everyone and gives them time to arrange a farewell party, write a letter, or simply wish them well as they pass them by. 2. Preparing staff for any workload changes After an employee announces their departure, the show must go on! Having an employee resignation announcement can kick off the proceedings to arrange the offboarding of the employee and the transfer of their workload to others in the company or department. 3. Let employees know that a replacement is coming (or will be needed) After an employee resignation announcement, it becomes clear to the staff that a position needs to be filled. In this case, several things can happen. First, a staff departure announcement can signal the company’s need for a new hire. To this end, employees may seek to take advantage of the company’s referral program to source talent from people that they know are qualified for the job. This benefits the company, who gains a replacement, as well as the current employee, who will benefit financially from a successful referral! Second, a staff departure announcement may indicate the possibility of progression within the company as the administration seeks out talent in-house. After an employee departure announcement, current employees may turn to update their CVs and send applications to be considered for a new position within the company! 4. Announcing any farewell events Finally, as a gesture of goodwill, employers should announce staff departures so that there is time to organize a farewell event to thank the departing employee for their service to the company. These kinds of events go a long way in showing that the company cares about its employees and values the contributions that its employees make to the company.How to Announce an Employee is Leaving?There are two main ways that an employer/HR can announce an employee’s departure to other staff members. 1. During a company meeting/event For larger companies, announcing a staff departure is best done through a company meeting or event. Typically, employee departure announcements are made to the employee’s team or department, rather than the whole company. This is simply because the employee’s departure will only affect their immediate colleagues and not the whole company. Here are some dos and don’ts to announcing an employee’s departure in this manner.You should do these:Be directAnnounce the date of the employee’s departureOffer information on how the team should proceed after the employee’s departureYou should not do these:Provide personal/confidential reasonsMake up a reason to save faceWait too long before making the announcement2. Via email Employers also have the option of announcing an employee’s departure via email. In this case, employers should follow the same rules of the previous section, and consider the tone of the email carefully. Depending on the office culture, employers will need to choose between a formal or casual tone when announcing an employee’s departure from the company.How to Write a Resignation Announcement Email to Staff?In this section, we will explain the various sections to be included in an employee departure email. Use a clear email subject Begin your employee departure announcement with an appropriate subject line. As previously mentioned, the tone of your employee resignation announcement should factor into the office culture. Here are some subject lines that are suitable for announcing an employee’s departure in different email tones. Casual: Let’s Say Adios to Our Pal Maria Monsanto Semi-formal: Announcement of Joe Bob’s Resignation Formal: Employee Resignation Announcement Announce the news to relevant parties Consider the team/department that the departing employee is a part of. When announcing an employee’s departure in a smaller or close-knit company, a company-wide email is appropriate. However, if you are a part of a large organization, the email list for the employee resignation announcement should be limited to those who work with or are associated with the departing employee. Be direct Get to the point. Your employee resignation announcement should not beat around the bush or inflate the contents of the email with unnecessary information. An employee resignation announcement is not complicated. To this end, endeavor to balance transparency and keep your employees on a need-to-know basis. State when their last day would be One of the most critical points to include in an employee resignation announcement is stating the last day of their contractual obligation to the company. This is for a few reasons, including letting the staff know when the last day to see their colleague is, as well as notifying the relevant employees when they will need to assume the workload of their departing colleague. For the sake of brevity and conciseness of your employee departure announcement, it is generally a good idea to include the date of their departure in the first paragraph of your email! Briefly explain the reason for the departure (if appropriate) When appropriate and for the sake of transparency, your employee resignation announcement can also include (limited) information regarding the reason for the employee’s departure. This presents a clear-cut reason for the employee departure announcement and prevents the spread of unwanted and unneeded “office gossip” and the extrapolation of events that are unrelated to each other. Some of the most common reasons for an employee to announce their resignation are: Professional career progressionWanting to spend more time with familyMedical reasonsRelocationTell employees what the next steps are The next point to address in an employee departure announcement is to indicate the next steps to be taken following the departure of the employee in question. This varies depending on the company, but the typical moves are either to source new talent to fill the void left by the departing employee or to redistribute and reallocate their workload so that the workflow can continue as normal. Whatever the reason, your employee resignation announcement should clearly state it to avoid potential misunderstandings. Inform any farewell events As a gesture of appreciation for service, many companies arrange complementary events following the announcement of an employee’s departure. Whether it be a formal company event or an informal meeting of colleagues in a bar, your employee departure announcement should indicate these plans. The details of the event should be fully hashed out before writing the employee departure announcement so that they can be fully included in the email. This includes, most importantly, the time and location of the event. Show appreciation towards the departing employee Finally, close off your employee resignation announcement by publicly thanking the departing colleague for their years of service to the company. This shows the care the company has for its employees and goes a long way in showing current employees that they are respected and valued in the company.Employee Leaving Announcement Email TemplateNow that you understand what goes into an employee resignation announcement, let’s put it into practice. Here is a complete template of an email announcing an employee's departure.Employee Leaving Announcement Email TemplateEmployee Departure Announcement SamplesLet's close off with a couple of employee departure announcement email samples. Executive Departure Announcement Sample Subject: Resignation of CEO Roger Palacios Dear Bank One Employees, It is with the deepest sadness that I write to inform you of the resignation of our CEO, Dr. Roger Palacios, effective 1 December 2022. Dr. Palacios has led Bank One for the last 25 years with unparalleled professionalism, vision, and purpose. Due to medical reasons and the desire to spend more time with his family, Dr. Palacios has made the difficult decision to step down from his position. In light of his departure, arrangements have been made to process the assumption of a new CEO. To this end, all interested parties may submit an application and their CV to HR at their earliest convenience. Additionally, if you are aware of suitable candidates for the position, feel free to submit a referral to HR. We would like to give Dr. Palacios the send-off he deserves. Kindly RSVP to his farewell event, which will be held at the Radisson Hotel Banquet Hall on 30 November 2022 from 7-10 pm. If you wish to extend a personal farewell, you can contact Dr. Palacios via his company email [email protected]. Thank you, Dr. Palacios, for your years of visionary service. I speak on behalf of us all as I wish you the very best in all your future endeavors. Sincerely, Adam GardenerHuman Resource Manager Sample Announcement of Employee Leaving Company to Clients Subject: Notice of Resignation of Aaron Pearson Dear Valued Customer, We regret to inform you that your company liaison, Aaron Pearson, has tendered his resignation effective 27 November 2022. Mr. Pearson has given notice of a persistent medical condition for which he must receive extensive treatment. Thus, he has expressed his inability to continue his position at our company. In wake of his departure, all future communications between you and our company will be handled by Mrs. Angela Martinez. Mrs. Martinez is an exemplar of our company’s values and mission, and we are positive that you will find her pleasant to work with. Effective immediately, please contact Mrs. Martinez via her office email [email protected] for any matters relating to our services. We apologize for any inconveniences this transition has caused and we look forward to serving you in the future. If there are any questions regarding this change, please do not hesitate to contact our Human Resources department directly at [email protected] or via telephone at 222-345-6788. Thank you for your understanding. Respectfully, Hussain PetersDirector of Human Resources With Cake, an online resume builder, we provide you with hundreds of free professional resume templates and various resume format examples that help showcase the best you. Landing your dream job will be a piece of cake!Create Resume--- Originally written by Alexander Coye ---
Recruitment & HR
Mar 6th 2024

Complete Guide to Writing a Relieving Letter [+ Examples & Tips]

Created by CakeIn our fast-paced and ever-changing professional world, the transition between jobs can be a highly stressful endeavor. Transitioning or resigning from a job, thankfully, does not always come from a negative experience in one place of employment. In fact, moving between jobs is seen as a great way to progress up the corporate ladder and leverage prior experiences into higher-paying jobs. That said, the bureaucratic systems in place mandate some form of physical communication exchange (i.e., emails and letters) between you and your employer to confirm your smooth and professional exit from your position. How is this done? Through resignation and relieving letters! Are you thinking of the best way to go about your next career change? If you have made the decision to move on from your current job, or if you are an employer looking for the best way to write the most professional relieving letter, this article is the right one for you!Table of Contents:What Is a Relieving Letter?Importance of a Relieving LetterWhat Does a Relieving Letter Contain?When Should You Request a Relieving Letter?ConclusionWhat Is a Relieving Letter?Relieving letters are often confused with a similar type of letter, letters of resignation. While both letters are used in the event of an employee wishing to depart from a company, the key difference between them lies in the sender of the letter. A resignation letter is a mode of physical communication from an employee to their employer indicating their desire to terminate their working relationship with their place of employment. Resignation letters are ALWAYS sent by an employee (check out our easy-to-follow guide on writing the most concise and professional resignation letter). On the other hand, relieving letters are ALWAYS sent by employers and are done in response to a received letter of resignation. Relieving letters are issued as an employer’s confirmation of an employee's resignation. They detail the terms of your job position and confirm that the termination of the working relationship between the employee and employer was done on mutual and friendly terms. Relieving letters are especially important as they are a testament to your professionalism as an employee and are sometimes even part of the required documentation for applying to another job.Importance of a Relieving LetterRelieving letters can be extremely important in many cases. In this section, we outline the most common instances where a strong relieving letter can be exceedingly useful. Proof of Employment A relieving letter can serve as formal proof of your employment history with a specific company, thus verifying your role. Relieving letters will always detail your tenure at your place of employment, and indicate your final working day. This helps maintain transparency between you and the company and can act as a guide for future employers to keep track of your employment record. Credibility and Professionalism A relieving letter is also important because a well-written one acknowledges and confirms that you left your previous job on good terms and completed your responsibilities. An amicable end to your tenure at your former place of employment vis-a-vis a relieving letter shows future employers that you are professional in your proceedings and have a good track record throughout your professional career. Background Checks As part of the application and job selection process, many employers perform background checks on prospective candidates to ensure that they are of good moral standing and character, and to verify that their track record at previous places of employment are clean and without problems. Relieving letters can greatly expedite this process by cutting down the time it takes to get contact information or simply cross-check the key information that HR needs for administrative purposes. This makes you a much more attractive candidate as you come across as more prepared and organized when compared to the competition who did not have a relieving letter prepared. Future Job Prospects Relieving letters, while a courtesy or addition to many job applications, may be a base requirement for many others. The impact of a relieving letter on your future job prospects cannot be understated. Many employers and recruiters require a relieving letter as part of their hiring process as a way to confirm that your time at your last place of employment ended smoothly and without administrative or behavioral problems. Whatever the reason may be, a relieving letter will never hurt a future job application; in fact, it may mean the difference between landing and losing the job entirely! Visa and Immigration Applications If you intend on working abroad, many immigration and visa applications require some indication of employment termination in the country that you are planning on leaving. In this case, a relieving letter is almost always required, as it is the most concise way for your contract termination to be relayed.What Does a Relieving Letter Contain?As with any letter, a relieving letter has a structure that should be followed to ensure maximal professionalism. Your relieving letter format should have the following parts: 1. Date of issue Indicate the date that the relieving letter was sent at the top left-hand corner of your relieving letter. The date format may vary depending on where you live; double-check the rules before sending the letter. 2. Employee information Beneath the date, provide the information of the employee for whom you are writing the relieving letter such as name, ID, title, department, etc. This is to transparently indicate the recipient of the letter and to provide an extra level of authenticity. 3. Company name To keep a uniform standard, all communication from your company should include your company name on the letter. 4. Subject line In the subject line of the letter, indicate that you are writing a “relieving letter”. 5. Greeting or salutation As the relieving letter is a form of formal documentation, be sure to include a formal salutation. The most popular formal salutation is “Dear”. Avoid casual salutations at all costs; these include ones like “Hey”, “Hi”, and “What’s up”, to name a few.📚Further reading:How to Write The Best Cover Letter Salutations [+Examples]6. Information about the employee's resignation Begin the relieving letter with all the most vital information. State the date that the resignation letter of the employee was received and state, in clear terms, that the resignation notice was accepted. Follow this up by stating the last day of contractual work for the employee and provide a specific time or range within which the final compensation will be paid out to the employee.7. Expression of gratitude Maintain a high level of professionalism for your relieving letter by thanking the employee for their service. If you like, you can include a short sentence praising their most significant accomplishments and/or impacts that they have left at the office. This extra addition takes no time to write, but can greatly help the departing employee in their future job applications! 8. Signature End the relieving letter with a closing remark and signature. The signature can be wet-inked or digitally signed. Underneath your signature, include your name in print and your position in the company. While exact relieving letter formats may vary, you should now have a general understanding of the key information that needs to be included. Now that we have covered the basic parts of a relieving letter, here are all the pieces put into action. The following is a brief relieving letter sample that depicts what one should look like. A Relieving Letter Example 12 October 2023 To: John MarioSocial Media ManagerF348604Pomelo International Subject: Relieving letter Dear Mr. Mario, This letter serves as the indication of the receipt of your letter of resignation on 1 October 2023. Your resignation notice has been reviewed and accepted. We have updated our records to reflect that your final contractual working day will be 31 October 2023, as per your request. We deeply thank you for your work at Pomelo International for the last three years. Your service and dedication to your position have not gone unnoticed, and we are grateful for the time that you have spent with us. Your final monthly compensation will be transferred to your account within 30 days of your final contractual working day. Once again, we would like to take the time to thank you for your years of work with us. We wish you the very best in all your future personal and professional endeavors. Best regards, Paula MoralesHR ManagerPomelo International When Should You Request a Relieving Letter?The timing of the request for a relieving letter plays a crucial role, both for the employer and the employee. Pay attention to this section as we outline the temporal considerations that must be made when writing and/or submitting a request for a relieving letter. After Submitting Your Resignation In the case of a voluntary resignation, it is generally a good idea to submit the request for a relieving letter as soon as your resignation has been accepted. As you may need a relieving letter as part of future job applications, it is better to have one prepared as you begin the job hunt once more! Before Your Last Working Day When resigning and moving on to another job, it is always best to depart from your position gracefully and professionally. Maintain your professionalism by giving your employer due notice for your relieving letter. As with every facet of business, swift and early communication almost always ensures a smoother process and a friendlier response. For more tips on how to gracefully depart from your current place of employment, check out another one of our great articles! In Case of Layoff or Termination In the event that you have been laid off or have been terminated from your place of employment, it is crucial to submit a request for a relieving letter as soon as you can. You have been thrust into the job hunt once more, and you will need all the necessary documents for job applications as soon as possible. Relieving letters, while typically short, can take some time to process, so make sure you file your request as soon as you receive notice that your days at your job are numbered. Avoiding Last-Minute Rush It is generally not courteous or professional to submit a request for documentation late and then pester your employer to expedite the process for your sake. Avoid the consequences of any unforeseen hiccups or delays in the processing of your relieving letter by filing the request as soon as you can. This ensures that your employer has ample time to reflect on your time at their company, and to write you the best relieving letter they can!ConclusionTransitioning between jobs can be a scary and daunting task, which is why having all the necessary documents prepared is all the more important! Relieving letters, while lesser-known, can nevertheless be a game changer in the job hunt and job application process for many positions. Relieving letters are generally written by employers or by the Human Resources (HR) department of larger companies, and are a confirmation of an accepted resignation letter submitted by an employee. Are you seeking ways to level up your career and deepen your professionalism to adapt to the world’s ever-changing work culture? Look no further than Cake! Our curated libraries of articles and tools are designed with one purpose in mind: to help aspiring and seasoned professionals, like yourself, be the very best they can be! If you have any questions about career development, resume/CV writing, and the job hunt and application process, check us out today! With Cake, an online resume builder, we provide you with hundreds of free professional resume templates and various resume format examples that help showcase the best you. Landing your dream job will be a piece of cake!Create Resume--- Originally written by Alexander Coye ---
Recruitment & HR
Apr 24th 2023

10 Types of Leaves In Company For Better Employees Retention [+ Examples]

10 Types of CompanyLeaves In this article, you'll read about:Why You Should Have Leave Policies10 Types of Leaves - Definition ExamplesIncluding paid leaves in working policies is a must for many employers to grow their business and drive the workforce. If team members know they have access to their proper leave entitlements, they will have more confidence and trust in the business. An employee-friendly leave policy helps drive employee satisfaction and loyalty, thus leading to higher productivity and better results in the workplace. There are different types of leaves that can be included in a leave policy address different leaving demands of employees in an organization. In this article, we'll be looking at the 10 most common types of leaves that every company includes in their policy.Why You Should Have Leave Policies Leave policies are the right of employees and a statutory obligation of employers. For employers, work leaves allow them to retain valuable workers. It is an essential factor in situations where employees may resign or seek alternative employment if there is no transparent leave policy. Having a defined policy for employees and implementing it consistently also help signal the professionalism of the company. With clear rules and transparency on different types of leave, companies and organizations can foster employee trust, satisfaction, and productivity. Eventually, businesses can only grow if they can ensure the well-being of their workforce. A good leave policy must consist of the following elements: ObjectiveScopeEligibilityProcedureGuidelinesExceptions These factors help identify clearly how your leave policy can be applied, and to whom it is valid. A good leave policy is not entirely about granting leaves, but rather it is about helping employees get easy access to their entitlements and avail them effectively. Without further ado, let's discover 10 common leaves to include in your leave policy. For each type of employee leaves, we'll be providing you with the legal requirements and cases where these types of leaves can be applied.10 Types of Leaves - Definition Examples 1. Annual leave This company leave type is not required by federal law in the United States; however, the specific law can vary among states. Regardless of the law, most firms and companies do give paid annual leave to their employees. Annual leave is designed to allow employees to take time off work while still being paid. For example, they can use their annual leaves for whatever matters they prefer including but not limited to relaxation, travel, and personal matters. Companies and businesses often deploy annual leaves in three ways: Unlimited paid time off: Employees have an endless amount of days off;Accrual bank: Employees receive accrued leaves on a monthly or quarterly basis;Annual allocation: Employees have a maximum number of days off per year (8-15 days on average). 2. Casual leave Casual leaves are called upon occasions when employees need time off work for travel, family events, and personal matters. For example, employees can avail of these types of leave to handle things like appointments, health checkups, attending events (i.e conferences, weddings, birthdays, etc.), or anything that doesn’t fall under sick or vacation time. More than often, casual doesn’t have to be used on anything specific and employees can use such work leaves without counting in their vacation days. Most companies allow up to 15 days of casual leave for their workers. 3. Sick leave Sick leaves are among the most essential types of employee leaves. Employees use sick leaves to take time off the office for health matters. For example, your employees can request sick leave when they are sick, have flu, or go through treatments for any diseases. Such leaves allow them to get the rest they need while worrying nothing about losing pay. On average, companies must provide 15 days of sick leaves annually. In certain cases where your employees are facing severe health issues, you must also be flexible and allow them to take longer time off. It's commonly seen that unused sick leaves can be carried forward to the next year. Nevertheless, you should ask your employees to take a rest if they are having health problems. This is for the benefit of both sides regarding the work quality. In many countries, sick leaves are mandatory enforcement to ensure the well-being of employees. Depending on where your business is located, you must check the national or local laws to comply accordingly. In the US, you must check your state's regulations and make sure your company is following mandatory sick leave laws. 4. Marriage leave Marriage leave is one of the special leave types that some companies may provide for their employees when they get marriage or organize a wedding. Depending on your location, this might be a legal entitlement to working policies. It's best to contact your local authorities to double-check the requirement. The marriage leaves can grant up to 15 days off for marriage matters. Nevertheless, most companies allow a 3-day leave as a norm. If workers use up days off allowance for weddings and honeymoons, they may have to use other eligible leaves or accept leaves without being paid. To avail of this type of leave, employees must be able to provide a copy of their marriage certificate. Such documents will be used for approving the leave. In some countries where a marriage leave is part of employers' legal obligations, days off are only allowed for the first legal marriage. 5. Maternity leave Maternity leave is part of the leave policy for women in motherhood to take care of the newborn and recover from the delivery. A mother can take maternity leave when it's close to her delivery day and continue forwards several weeks after giving birth. You should consider including this in your listed types of employee leaves to help employees take some time off caring for their newborns. Maternity leave is commonly provided to mothers for a period of 7 to 17 weeks, depending on the norm where your business is located. Ideally, a time allowance of 14 weeks off work is considered reasonable for a mother to take care of her baby during the first three months. Nevertheless, you should be open to allow extra time for any possible postnatal complications. Many companies across different states are not legally obliged to provide paid maternity leave. However, the FMLA (Family and Medical Leave Act) does provide women with the right to take a maximum of 12 unpaid absent weeks for this purpose (including adoption). 6. Paternity leave Paternity leave is granted to fathers, husbands, or partners of pregnant women, surrogate parents, or anyone adopting a child. This leave policy allows employees to have time to cater to their newborns without any worry. Usually, fathers of infants can get up to 2 weeks of company leave to take care of their babies and support their partners post-delivery. Some companies do not provide paid paternity leave for their employees since this is not a mandatory requirement by the law. Nevertheless, it is essential that employers acknowledge the stress of being parents to newborns and offer paid days off. In the US, there are only eight states that provide dads and mothers with partially compensated parental leave. The list includes the following states: California, New York, New Jersey, Washington, Rhode Island, Oregon, Massachusetts, and Connecticut.7. Unpaid leave If your employees have used up all types of leaves in the office and are still in need of a break, they can still take days off with a pay deduction. This leave policy applies for reasons that do not fall under any listed eave categories in your policy, such as paternity, maternity, vacation, sick, etc. Unpaid leave is unlike other types of leaves, where employers take full responsibility for allowing employees to take days off work. When employees decide to take unpaid leaves, they should be aware that there will be a pay deduction. Any absences under unpaid leaves will result in a salary cut-off for the employees. You should be clear and transparent about how many days off in total your employees can have and how their salaries are counted with days off outside of leaves allowance. 8. Public holidays Public holidays or national holidays are types of leaves nationally recognized and regulated by the government. A few examples of public holidays include Independence Day, Memorial Day, Labor Day, New Year's Day, etc. The number of public holidays can vary depending on where your company is located. It is worth noting that days off for public holidays are not counted towards employees' annual leaves. This means that the paid hours for public holidays will not be taken away from the employee's amount of accumulated paid leave. You can include such leaves for public holidays by looking into holidays listed in the country's law. You may also consider a leave policy that is specifically designed for foreign workers to take some time off to enjoy their country's national celebrations. 9. Bereavement leave Bereavement leave is an employment leave given upon situations where there are funerals in the family or the deaths of beloved ones. This is an amount of time needed for the employee to grieve and, most importantly, to recuperate from their loss. For example, employees can request bereavement leave to participate in tributes or funerals or to take care of any personal matters following the death of their family members. In the US, bereavement leave is not legally mandatory. However, many companies still design an internal leave policy, while others consider bereavement leave an unspoken rule. Bereavement leave is often available upon request for full-time contractors of the company. 10. Compensatory leave Companies and organizations often include compensatory leave (also known as comp off) in their employee leave when extra-working hours are part of their working culture. For example, your employees work more hours than required, and therefore they are eligible to receive a paid day off or extra pay for the extended working hours. It's important to note that only workers that work for additional hours or go to work on days off (i.e national holidays, weekends, etc.) are qualified for this leave policy. There is often a procedure designed for claiming and availing comp-off leave. Nevertheless, it is illegal to offer compensatory time in many cases. If you are a private and non-governmental business owner, you cannot give compensatory leave to non-exempt employees. You should follow compensatory time off rules to avoid violating Fair Labor Standards Act.🔑 Key TakeawaysA well-designed leave policy lays the ground for not only attracting skilled workers but also retaining valuable employees. By evaluating and incorporating different types of leave in your policy, your business can operate more effectively.It's also important to ensure clarity and transparency in your leave policies, since it helps set expectations and satisfy your employees' leaving needs. With a good leave policy in hand, your employees can become more productive and engaged in their jobs - a significant benefit for the sustainable growth of your company in the long run. Cake is an innovative online resume maker that empowers anyone to create professional resumes and portfolios that can also serve as personal websites. In addition, the solution also provides a comprehensive employer branding service, allowing companies to successfully establish and promote their brand across diverse talent pools on a global scale. With Cake, professionals and organizations can present themselves in a polished and professional manner, showcasing their unique skills, experiences, and offerings to the world. — Originally written by May Luong —
Recruitment & HR
Mar 11th 2026

Top 5 Recruitment Agencies in Vietnam for Foreign Companies (2026)

5 Best Recruitment Agencies in Vietnam (2025 Guide)As hiring needs become increasingly specialized and compliance requirements more complex, recruitment agencies play a crucial role in helping your company navigate Vietnam's workforce landscape . Indeed, the recruitment industry in Vietnam is not only thriving but also becoming more specialized in 2025 . Over 57% of Vietnamese businesses are now leveraging recruitment agencies / headhunting firms to close talent gaps and maintain competitive growth trajectories. In this guide, we'll examine the top 5 recruitment agencies in Vietnam that consistently deliver exceptional results for foreign companies. Cake Recruitment ConsultingAdeccoVietnamManpowerGroup VietnamMichael Page Vietnam Robert Walters VietnamFAQs about Recruitment Agencies inVietnam1.Cake Recruitment ConsultingOriginally founded in Taiwan in 2016, Cake Recruitment Consulting has rapidly expanded into a formidable player in Vietnam's recruitment landscape. With an impressive talent database exceeding 8 million individuals and partnerships with over 7,000 clients globally, this recruitment agency in Vietnam brings an innovative tech-driven approach to talent acquisition.Recruitment solutions for businesses at CakeKey Services by Cake Recruitment Consulting Executive Search: Specialized headhunting services for mid to high-level positions across multiple industries, focusing on quality matches rather than quantity.EoR/Payroll Management:Full-service employer of record and payroll administration ensuring compliance with local laws and regulations (details here).Active Sourcing: Comprehensive talent scouting services covering talent marketplace analysis and online recruitment.Cake Recruitment ConsultingFunctional Focus TechnologyManufacturing EngineeringSemiconductorFinancial ServicesMarketingHR Cake Recruitment Consulting Strengths for Foreign CompaniesAs a leader inrecruitment consulting Vietnam, Cake offers foreign companies a comprehensive advantage built on the following strengths:Industry-expert consultants: Deep knowledge across sectors, with proven success in demanding fields like IT recruitment Vietnam.Specialized talent pools: A strong track record of sourcing crucial multilingual talent (English, Mandarin, Japanese) to meet international business demands. Risk-free partnership: A placement guarantee and a transparent 6-step methodology make it a secure choice among top recruitment agencies in Vietnam. Compliance support: Backed by extensive experience in HR and recruitment, Cake’s consultants guide foreign companies in aligning with Vietnam labor laws, minimizing hiring risks. 📲 To discuss specific pricing or recruitment needs, you can contact Cake Recruitment Consulting directly:Email: [email protected]: +84979312806Address: IMC Building, 62 Tran Quang Khai Street, Tan Dinh Ward, District 1, Ho Chi Minh, Viet NamWebsite:https://www.cake.me/recruitment-service For companies concerned about navigating Vietnam's local talent market, Cake's consultants can provide valuable insights on labor laws, cultural nuances, and candidate expectations - crucial knowledge for foreign businesses establishing operations in this dynamic market.2.AdeccoVietnamEstablished in Vietnam in 2011, Adecco Vietnam stands among the most trusted headhunting firms in Vietnam, delivering comprehensive HR solutions across the country.Key Services by Adecco Vietnam Permanent Recruitment: Connecting businesses with qualified talent across various levels and specializations, from junior positions to executive roles.Mass Recruitment: Handling high-volume hiring needs with capacity to recruit hundreds of new employees simultaneously for business expansion or seasonal demands.Temporary and Contract Staffing: Providing flexible workforce solutions for short-term leaves and long-term projects that help close skill gaps while increasing productivity.Payroll Services: Managing all payroll transactions in compliance with Vietnam's labor code.Work Permit Registration: Offering hassle-free visa and work permit processing for expatriate employees, including document preparation, translation, and submission. Adecco Vietnam Industry Focus Manufacturing and ExportTechnology and Digital TransformationHealthcareSemiconductor industryMedia and MarketingFinance and BankingProfessional Services Adecco Vietnam Strengths for Foreign Companies12+ years of local market knowledge:Deep expertise in Vietnam's labor dynamics and evolving compliance regulations, providing critical support for foreign companies.Mass recruitment Workforce scaling:A dedicated team offers rapid, large-scale hiring solutions, ideal for new factory setups or major business expansions.In-house legal compliance:Features an in-house legal department that ensures all recruitment processes adhere to Vietnamese labor laws, minimizing risk for foreign clients.Proven client satisfaction:Praised for filling challenging roles, they deliver the results expected of a top headhunter company in Vietnam, backed by a high Net Promoter Score (NPS) of +51 in 2023.Expat work permit services:Provides a full-service package to manage visa and work permit processes, reducing administrative burdens for expatriate staff. 📲 For inquiries about specific service pricing, you can contact their offices directly:Address: Branch Office in Hanoi Ho Chi Minh CityEmail: [email protected]: https://adecco.com.vn/ Overall, Adecco Vietnam represents a strategic partner for foreign companies navigating Vietnam's talent landscape. Their combination of global reach with local expertise positions them as one of the most reliable recruitment agencies in Vietnam, especially for organizations requiring comprehensive HR support beyond just candidate sourcing. 3.ManpowerGroup VietnamOperating in Vietnam since 2008, ManpowerGroup Vietnam holds the distinction of being the first 100% foreign-invested company licensed to provide staffing, outsourcing, and recruitment services by the Ministry of Labor, Invalids and Social Affairs.Key Services by ManpowerGroup Vietnam Permanent Recruitment Head Hunter Service: Connecting businesses with qualified talent across various levels and specializations.Staffing Outsourcing Service: Providing flexible workforce solutions for companies requiring temporary staff or outsourced processes.Payroll Service: Managing all payroll transactions in compliance with Vietnam's labor regulations.Recruitment Process Outsourcing (RPO): Handling end-to-end recruitment processes for companies.Mass Recruitment Service: Facilitating high-volume hiring needs.HR Consulting Service:Offering expert advice on workforce strategy and management. ManpowerGroup Vietnam Industry FocusManufacturing, Processing, and ProductionHigh-Tech IndustryGreen Technology and Renewable EnergyLogistics ManpowerGroup Vietnam Strengths for Foreign CompaniesManpowerGroup is considered a top recruitment agency in Vietnam due to its pioneering history and deep market integration. Its strengths for foreign businesses include:17+ years of Vietnam market expertise:A long-standing presence provides deep insights into local labor dynamics and compliance requirements.Pioneering legal compliance expertise:As Vietnam's first licensed foreign agency, they offer expert guidance on navigating complex local labor laws.Data-driven salary benchmarking:Publishes an annual Salary Guide with benchmarks for over 700 roles, helping foreign firms set competitive compensation strategies.Strategic government partnership:Maintains a long-standing partnership with Vietnam's Ministry of Labor (MOLISA), contributing to labor market policy development.Global network Local expertise:Leverages the resources of a worldwide brand while providing deep, on-the-ground knowledge of the Vietnamese market. 📲 For specific service pricing and inquiries, you can contact their offices directly:Address: Branch Office in Hanoi Ho Chi Minh CityEmail: [email protected]: https://manpower.com.vn/ Beyond recruitment services, ManpowerGroup Vietnam regularly contributes to improving Vietnam's labor market through seminars and workshops in partnership with various local and multinational organizations, foreign chambers of commerce, and educational centers. 4.Michael Page VietnamMichael Page is a well-established international brand and one of the most recognized recruitment agencies in Vietnam. With a strong local presence and global expertise, it delivers tailored recruitment solutions across various industries.Key Services by Michael Page Vietnam Executive Search: Michael Page specializes in identifying and attracting senior-level professionals for leadership positions critical to business success. Permanent Recruitment: The firm helps clients hire full-time employees across various functions, ensuring the right long-term fit for both parties. Contract Temporary Staffing: They provide flexible hiring solutions by sourcing skilled professionals for short-term or project-based roles. Talent Mapping: Michael Page offers in-depth market insights and proactive talent pipeline building to support future recruitment planning. Michael Page Vietnam Industry Focus Finance Accounting Engineering Manufacturing Sales Marketing Technology Digital Healthcare Life Sciences Michael Page Vietnam Strengths for Foreign CompaniesLocal hiring expertise: Michael Page helps foreign companies navigate local labor laws and cultural expectations. Bilingual consultants: Their team bridges communication gaps with fluent English and Vietnamese support. Proven headhunting services: They deliver top-tier talent through focused, high-level search strategies. Diverse talent pool: Access to a wide talent base enables quick, targeted matches for global clients.📲 For inquiries about their recruitment services:Address:Unit 20.01, 20th Floor, The Hallmark Tower, 15 Tran Bach Dang Street, Thu Duc City, Ho Chi Minh, VietnamPhone: +84 28 6284 8200Email: [email protected]: https://www.michaelpage.com.vn/Michael Page Vietnam stands out for its global standards, local expertise, and strong track record across multiple industries. It’s a reliable choice for companies seeking high-quality recruitment and headhunting services in Vietnam. 5.Robert Walters VietnamRobert Walters is one of the leading recruitment companies in Vietnam, known for its professional approach and strong industry specialization. With global expertise and a local presence, the firm supports businesses in finding high-quality talent across mid to senior-level roles. Key Services by Robert Walters Vietnam Permanent Recruitment: Matches companies with full-time professionals for long-term roles. Executive Search: Sources experienced leaders for strategic positions. Contract Recruitment: Provides flexible hiring solutions for short-term or project needs. Market Intelligence: Delivers insights on salary trends, talent availability, and hiring benchmarks. Robert Walters Vietnam Industry Focus Banking Financial ServicesTechnology DigitalSales Marketing Human Resources Robert Walters Vietnam Strengths for Foreign CompaniesStrong global network: Enables seamless cross-border recruitment services in Vietnam and beyond. Deep local market knowledge: Advises foreign clients on hiring trends and compliance. Multilingual consultants: Ensure smooth communication throughout the hiring process. Proven placement track record: Trusted by multinational firms for delivering top-tier candidates. 📲 To discuss specific pricing or recruitment needs, you can contact the team directly:Email: [email protected]: +84 28 3520 7900Address: Unit 1, Level 9 and Unit 4, Level 3, The Metropolitan, 235 Dong Khoi Street, District 1, Ho Chi Minh, VietnamWebsite:https://www.robertwalters.com.vn/ Robert Walters Vietnam is a trusted partner for international companies seeking reliable, high-quality recruitment services in Vietnam.6.FAQs about Recruitment Agencies inVietnamQ1. What are the key advantages of using recruitment agencies in Vietnam for foreign companies? Recruitment agencies in Vietnam offer several benefits for foreign companies, including local market expertise, access to extensive talent networks, assistance with legal compliance,and time cost savings in the hiring process. They can also provide valuable insights into salary benchmarks and industry trends. Q2. How do recruitment agencies in Vietnam typically charge for their services? Most recruitment agencies or headhunting firms in Vietnam offer flexible pricing structures tailored to clients' specific hiring needs. Instead of a fixed model, rates may vary depending on factors such as the role's seniority, hiring volume, or the level of service required. This approach allows companies to choose fee arrangements that align with their recruitment goals and budget. Q3. What industries are currently seeing high recruitment demand in Vietnam? High-demand industries for recruitment in Vietnam include manufacturing, technology (especially IT and software development), logistics, and financial services. The semiconductor industry is also experiencing significant growth, driven by investments from global tech giants. Q4. How quickly can recruitment agencies in Vietnam typically provide suitable candidates? Turnaround times vary by agency and position, but many agencies commit to presenting qualified candidates within 5-10 business days. Some specialized agencies, particularly in IT recruitment in Vietnam, may deliver candidates in as little as 1-3 days for certain roles. Q5. Do Vietnamese recruitment agencies offer guarantees on their placements? Yes, many recruitment companies in Vietnam offer placement guarantees. These typically range from 60-90 days, during which the agency will provide a free replacement if the hired candidate leaves or doesn't meet performance expectations. The specific terms of these guarantees can vary between agencies.ConclusionChoosing the right recruitment agency in Vietnam is a critical decision. While the 5 firms we've highlighted are excellent, the best partner is one that truly understands your unique vision. At Cake, we combine the deep market knowledge of top headhunters in Vietnam with a bespoke approach tailored to your specific needs. We wrote this guide because we are experts in hiring in Vietnam, and we are ready to be your strategic partner. Contact us today to discover a better recruitment experience!(+Cake EOR) Don't just fill a position - hire the talent that will define your success in Vietnam. Our experts are ready to build the team that will drive your growth.Contact Cake
Recruitment & HR
Mar 6th 2024

Do’s and Don’ts When Dealing with Difficult Co-Workers

Created by CakeIn a typical 9-5 job, over 30% of your day is surrounded by the same people. While having a healthy and fully cooperating work environment is the best feeling ever, there are often a couple of co-workers that are difficult to deal with. Whether it be a difference in opinion, values, or personal problems, you may find yourself having to deal with difficult colleagues in the office regularly. Conflict management and having complete control over your emotions in the workplace are essential skills that every aspiring and established professional should endeavor to master. Dealing with problematic co-workers is a practically inescapable part of the workplace experience, and it should be done in a way to protect your workplace standing and personal integrity. Maintaining a good working relationship, even with difficult co-workers, is essential for you and the overall functioning of the office. Feelings aside, you are being paid to do a job, and your employer should not have to deal with incomplete work because you and a difficult co-worker cannot get along. Don’t find yourself in a pickle! If you are wondering about the best way to deal with difficult colleagues, or how to work with difficult co-workers, we’ve got your back! This article will explain everything you need to know about handling difficult co-workers and will deep dive into some ways that you can improve, even remedy, the situation!Table of Contents:Why You Need to Know How to Deal with Difficult Co-WorkersHow to Deal With Difficult Co-WorkersTips for Dealing with Difficult Co-WorkersWhy You Need to Know How to Deal with Difficult Co-WorkersKnowing how to deal with difficult people at work can mean the difference between staying at a company and leaving, whether it be on your terms or the company’s. This section will highlight reasons why it is important to know how to deal with difficult co-workers at work. Conflict can have a serious impact on your career Before lashing out aggressively against a co-worker that is especially difficult to handle, take a step back and critically analyze the situation. Consider the fact that workplace conflict can have a serious negative impact on your workplace standing, the prospect of receiving future promotions, and even jeopardize your employment entirely. When it comes to dealing with co-workers who are particularly difficult to handle, even the most decorated and seasoned employees can see their career fall to pieces in the light of a conflict that is severe enough. It is good exercise to manage your stress levels It is not healthy to work in an environment that stresses you out more than your actual job! You deserve peace of mind and the ability to perform your job without having to work in an uncomfortable environment because of a difficult co-worker. Therefore, knowing how to deal with problematic co-workers will go a long way in ensuring that you maintain a safe professional space for you to develop both personally and professionally! Conflict resolution avoids normalizing toxic behavior at work Aggressive conflict is never the answer to any situation. That said, you owe it to yourself not to sit idly by when disrespectful and difficult co-workers make your job miserable. Being passive is the quickest way for an uncooperative co-worker to normalize their bad behavior. Accordingly, the difficult co-worker will create a toxic environment that does not belong anywhere, particularly in the workplace. Therefore it is always a good idea to mitigate the problem before it becomes something greater. Learning how to deal with workplace conflict aids in personal growth Learning how to deal with difficult people is a skill that extends past the workplace and into your personal life. Learning how to deal with uncooperative and difficult co-workers aids in personal growth by giving you the space you need, to learn how to manage tricky situations and uncooperative people.How to Deal With Difficult Co-WorkersThe need to deal with difficult co-workers can present itself in many situations. Here are some tips on how to deal with difficult colleagues in different job positions. Difficult bosses Having a difficult coworker, especially if that co-worker is your boss or employer, can be finicky to navigate. Remember to maintain respect, document your interaction, and clearly explain your case! In addition, try to be proactive in addressing the situation by suggesting ways that they can be less difficult to work with/for. Awkward colleagues Sometimes difficult coworkers are not inherently difficult. Perhaps a difficult coworker is simply uncomfortable or awkward in the situation that they have found themselves in. Similarly, perhaps a difficult coworker is just new to the job or a recent addition to the company. In either case, respectfully confront them and determine the exact reason for their behavior. That way, you can take steps to create a more conducive environment to work in! Unprofessional bosses The abuse of workplace power is not to be taken lightly. If you are experiencing problems with a difficult coworker in the form of an unprofessional boss, immediately take the matter up with your direct supervisor and Human Resources after you have gathered evidence of unprofessionalism and indecorum on behalf of your boss. This is a situation that should not be handled by yourself but should be a multi-step process with the appropriate people to ensure due process is made and that a favorable result is reached. Uncooperative or lazy co-workers Uncooperative or lazy coworkers are particularly difficult to deal with and may, in some cases, require intervention by a direct supervisor or employer. If a difficult coworker is not pulling their weight, ensure that you document all interactions between you and the difficult coworker. If the situation between the two of you does not resolve itself or improve, you can take the documentation to your boss so that they can take more direct action. Problematic co-workers If you find yourself in a position dealing with a problematic coworker, you should do your best to investigate the root of the problem. Perhaps something happened in the past that troubled them, which is the reason for their behavior now. In this case, approach the difficult coworker and ascertain the root of the problem and the steps that the two of you can take to repair any damage that has been made. Stubborn co-workers Whether it be pride or arrogance, a stubborn coworker is a particularly difficult coworker. If you are wondering how to deal with a stubborn coworker, the best course of action is to figure out why they are being stubborn. That way you can determine the best approach to working and interacting with them without getting frustrated and increasing the tension between you two.Tips for Dealing with Difficult Co-WorkersHumans are emotional; it is a fact of life and is one that can dictate the most important decisions we ever make. Get ahead of difficult co-workers and master your emotions to avoid future regret! Let's close off this article with some key tips and tricks for coping and/or dealing with the emotions one faces when dealing with difficult co-workers. Don’t get personal The quickest way to lose an argument or come out on the wrong side of a conflict is to get personal; the same holds, especially when dealing with difficult co-workers. Confrontation is one thing, but directing personal insults at a difficult co-worker is the fastest way for you to come out looking like the bad guy to your employer and can have a huge negative impact on your career. Similarly, the language you use is important when confronting a difficult co-worker. Avoid personal attacks such as “you make me so mad when you laugh at me,” and instead say “I feel disrespected when I am ridiculed for my opinions.” By objectively phrasing your sentences, you ease the tension by removing direct blame. Reflect on yourself Before you lay blame on anyone, particularly a difficult co-worker, it is always good to take a step back and evaluate the position, including yourself. Consider how you have handled the situation and what you are actively doing to resolve the conflict between you and the co-worker that you are finding difficult to cooperate with. Perhaps the reason a co-worker is difficult is not because they are inherently wrong or inconsiderate, but because your perspective or attitude towards them is what is the problem. Save yourself the embarrassment and, before dealing with a difficult co-worker, ensure that you are not in the wrong and that any accusation made is justified and can be proven. Learn how to confront the situation respectfully with a clear head Conflict resolution is an invaluable skill to have, especially in the workplace. Understanding how to cope and deal with problematic or uncooperative co-workers professionally and respectfully can go a long way in both resolving the conflict and increasing your standing amongst your peers and colleagues. Respectfully confronting a difficult co-worker is also a good way to gain the respect and recognition of your employer, which can greatly benefit your career in the long run! Put yourself in their shoes show compassion Sometimes, a little perspective can go a long way. You never know what is going on in other people's lives; the same holds for difficult co-workers. Perhaps the reason that your co-worker is being so difficult to work with is that they are facing personal problems that they cannot seem to resolve, thus the negative emotions spill over into their professional life. As in every case, evaluate the situation that you and the difficult co-worker are in, and consider asking them, or finding out through other ways, the problems they may be going through. You never know when someone may need help. Limit your interactions with them Remember that in an office workspace, you are an employee. Therefore, treat your job as it is: a job! This application extends to dealing with difficult co-workers. If you ever find yourself in a situation where you need to interact with a co-worker that is challenging to work with, limit your interaction solely to the professional and work-related purpose in which they must assist you. After that, remove yourself from the situation and continue your life! This is a great way to avoid a difficult co-worker, reduce stress, and greatly improve your quality of life at work. Ask your supervisor for help When dealing with a difficult co-worker, there are times in which only upper management and administration can amicably resolve the conflict or problems that you are experiencing. In this case, approach your supervisor or direct senior, transparently explain the situation, and ask what can be done to either resolve the conflict. In many cases, your supervisor may separate you from the difficult co-worker, or will perhaps limit the interaction that you and said difficult co-worker need to have on a day-to-day basis Focus on your work Sometimes, the best thing you can do in a situation is to remove yourself from it. If you find yourself completely unable to deal with a particularly difficult co-worker, and you are receiving no help from your employer or other administrators, the best thing to do would be to completely avoid the difficult co-worker entirely and just focus on yourself and your work. After all, you are there to work and earn money not to fight with difficult co-workers and an unhelpful administration!With Cake, a free online resume builder, we provide you with hundreds of free resume templates and various great resume examples that help showcase the best you. Landing your dream job will be a piece of cake!Create Resume--- Originally written by Alexander Coye ---
Recruitment & HR
Mar 12th 2026

Entity-First vs. EOR: The Real Cost of Expansion in Vietnam

Comparison of Expansion Options in Vietnam: Entity-First vs. EOR ModelTable of Contents: The Entity-First Approach: Time, Cost ComplexityThe EOR Advantage: Faster, Smarter ExpansionCake’s EOR Solution: Powering Your Growth in VietnamVietnam’s robust economic growth and young, skilled workforce make it an ideal market for global expansion. Yet the decision to enter this market often comes down to two distinct paths: establishing a traditional legal entity in Vietnam or leveraging a modern Employer of Record (EOR) model. In this article, we’ll explore the hidden costs and complexities of a traditional legal entity setup, the strategic advantages of EOR services for bypassing legal hurdles, and how this approach can lead to more confident and compliant market entry. From time and cost savings to reducing compliance risks, this guide will provide the insights you need to hire with confidence and focus on business growth.The Entity-First Approach: Time, Cost ComplexityFor foreign companies, setting up a legal entity in Vietnam means committing to a lengthy and resource-intensive process that demands substantial time, capital, and administrative effort. While the appeal of having a direct presence is clear, it must be carefully balanced against the significant and often unpredictable challenges that arise during the establishment stage.Time Equation Establishing a foreign-invested enterprise (FIE) in Vietnam is not a single step but a sequence of administrative procedures. Businesses must first apply for an Investment Registration Certificate (IRC), followed by an Enterprise Registration Certificate (ERC). This process typically takes 3-4 months for a standard LLC or 100% foreign-owned enterprise. Even a representative office, considered a quicker option, still requires at least 6-8 weeks to set up. The timeline is not fixed and can vary depending on many factors. Large-scale investments or those in regulated sectors such as construction, energy, or areas near sensitive locations must undergo an additional pre-investment process, which can add significant time. The IRC application alone may take from 15 working days, while post-licensing tasks can add another 30 days. These requirements show that establishing a legal entity is rarely compatible with strategies that prioritize fast market entry. Financial Equation The financial burden of an entity-first approach extends far beyond the initial registration fee. Incorporation services may start at $3,500, but additional costs can quickly add up. Beyond the core incorporation fees, other add-on services include: Nominee services: If a foreign director is not a resident of Vietnam, the company must appoint a local director or legal representative, which can cost around $5,000 annually.Visas and work permits: Obtaining a work permit and a Temporary Resident Card (TRC) for foreign staff is a compulsory and costly process, averaging around $1,500.Physical presence: Even with the option of a virtual office, which costs between $400 and $1,900 per year, a physical office for a small team can range from $1,000 to $3,000 per month, not including significant renovation and fit-out costs.And other ongoing administrative costs, such as the yearly Business License Tax and annual renewal costs for outsourced services, which can exceed $16,000. While Vietnam has no universal minimum capital requirement, certain industries have legally mandated minimums. For businesses without a fixed requirement, the declared capital must be “realistic and reasonable” to cover operational expenses for the first 1-2 years, and authorities often assess its sufficiency. This capital must be paid in full within 90 days of company registration, and a failure to meet this deadline can result in fines, business suspension, or even the dissolution of the company, posing a significant risk to a traditional business owner. Compliance Equation Vietnam’s regulatory landscape is constantly evolving, with frequent updates to investment, labor, and tax laws. This creates an ongoing compliance burden where missteps can cause costly delays or even halt operations. Common legal pitfalls include: Conditional sectors: Misidentifying a business sector and missing required approvals for conditional industries can result in rejected investment certificates.Nominee arrangements: Appointing local friends as nominee shareholders or directors risks disputes, as these setups often lack legal protection.Labor law complexities: Strict labor codes require Vietnamese-language contracts, regulated working hours, proper termination procedures, and correct payroll contributions.The EOR Advantage: Faster, Smarter ExpansionAn Employer of Record (EOR) provides a faster, safer, and more cost-effective alternative to setting up a legal entity. For companies looking to hire in Vietnam without establishing a physical presence, it offers a practical way to remain compliant with local regulations.Speed-to-Market Advantage One of the strongest advantages of partnering with an EOR is the significant acceleration of market entry. Setting up a local office typically requires 3-4 months, whereas an EOR can onboard talent within days. From initial contact to a fully compliant hire, the process can be completed in as little as 10 days if talent sourcing is included. This speed enables companies to quickly test the Vietnamese market, build a small specialist team, or onboard a key employee without committing large amounts of time or capital upfront.Financial Advantage The EOR model shifts costs from unpredictable capital outlays to a simple, predictable operational expense. Instead of high setup and annual fees, companies pay a flat monthly fee per employee, typically between $199 and $599 in Vietnam. This predictable structure simplifies budgeting, reduces financial risk, and allows businesses to scale flexibly while preserving capital for core operations.Risk Mitigation Advantage By becoming the legal employer, the EOR assumes full responsibility for navigating and complying with Vietnam’s complex regulatory environment. This includes: Payroll and tax compliance: Manages salary payments in VND, ensures proper PIT withholdings, and submits all required social contributions on time.Labor law compliance: Prepares employment contracts and guarantees compliance with rules on working hours, probation, termination, and employee benefits.Liability coverage: Acts as the official employer of record, handling legal audits, back taxes, and labor disputes, protecting the client from legal exposure.Regulatory monitoring: Keeps pace with Vietnam’s changing laws (e.g., expanded CIT and unemployment insurance), removing the need for companies to dedicate in-house legal and HR teams. Cake’s EOR Solution: Powering Your Growth in VietnamCake’s Employer of Record (EOR) solution is designed to directly address the financial, time, and compliance challenges of market entry. By partnering with Cake, a business can bypass the multi-month process of navigating bureaucracy, allowing immediate and confident market entry. Cake EOR Service shifts costs from unpredictable capital expenses to simple, transparent operational expenses. There are no hidden fees, no large upfront costs, and no need to worry about capital requirements. This allows businesses to budget more accurately for their expansion and maintain financial agility. Cake also takes full legal responsibility for all employment and payroll matters, from contracts and social contributions to taxes and labor law compliance, which protects the client from the risks of non-compliance and labor disputes. With Cake, a company can tap into Vietnam’s talent pool and pursue its growth objectives while staying fully compliant from day one. ClosingThe complexity, cost, and time required to establish a legal entity in Vietnam make it a high-risk proposition for most companies seeking to test the market or hire a small, specialized team. An Employer of Record (EOR) offers a faster, safer, and more predictable path by combining speed, financial predictability, and risk mitigation. With Cake’s EOR service in Vietnam, you can focus on growth while we handle compliance, payroll, and local HR requirements.Ready to explore opportunities in Vietnam? Learn more about how Cake can support your expansion here.Contact Us
Recruitment & HR
Nov 18th 2022

How to Classify Types of Employees (Definitions & Examples)

Created by CakeIn this article, we’ll cover: Employees vs Contingent WorkersDifferent Types of EmployeesDifferent Types of Contingent WorkersWhat to Consider When HiringThe demands of an organization are ever-changing. If you’re a business owner or HR professional, you might be deciding the types of employees to hire to implement your organization’s plans and realize its potentials. You may opt to hire different types of employees on a full-time, part-time, temporary, or seasonal basis to help with primary responsibilities. Or, if you are crunching through a one-time project, you may enlist specialized help from the contingent workforce, meaning freelancers, contractors or consultants. Identifying the different employee categories is paramount to understanding the types of staff you need, managing understaffed areas, and fueling organizational growth. Additionally, understanding how to differentiate the types of employees you onboard is crucial for accuracy in tax filing and legal compliance. In this guide, we will first compare the main employee categories to understand what each entails. Next, we will explore the different types of employees and contingent workers, with examples. Lastly, we will highlight what to keep in mind—contractually and financially—when hiring.Employees vs Contingent WorkersBefore discussing the different types of employees to consider in the recruitment process, let’s first define the two main employee categories: employees and contingent workers (or contingent employees). An employee is usually salaried and on a company’s payroll. Subsequently, employees of a company have their taxes deducted from or paid for by the employer and qualify for certain benefits. Conversely, contingent workers typically receive wages, file their own taxes as a self-employed individual, and do not receive employee benefits. Employees are managed more closely by their employers; contingent workers have greater control over their time and process. For instance, whereas employees may need to work specific office hours and follow certain work protocols, contingent workers may work irregular hours and do not have their work supervised until the results stage. Pros and Cons of Hiring Employees vs Contingent Workers The key differences between permanent employees and contingent workers lay in costs and their duties.EmployeesContingent WorkersPros- Since long-term or ongoing employment is expected, employees may have a higher level of dedication to the job and team. - Employers are also more able to monitor the work performance of employees.-Since contingent workers are not permanent employees, companies are not responsible for filing their taxes or paying their benefits—alleviating administrative workload.- Contingent workers may work on a project basis rather than on a fixed day-to-day schedule. This means that companies do not have to pay for periods of time when there are lulls in business.Cons-Employers may need to consider costs from training and salary payments during off-peak periods.-Contingent workers may lack commitment and can have different expectations over work performance or deliverables. Different Types of EmployeesBelow are common employment categories that primarily differ in their number of working hours, roles, and benefits. Note that how you classify or define each employee category may vary depending on labor standards in your country. Consequently, the types of employees you decide to hire will influence the benefits or compensation you are required to provide as an employer. 🧑‍💻 Full-time employees: Hours:Full-time employees work for 40 hours per week or for the number of hours required to be full-time, according to the company.Benefits:They also typically qualify for benefits discussed in employment contracts (e.g. health insurance, pension plans, or paid holiday time).Examples: A full-time art director who overlooks the art direction of a magazine or a full-time high school math teacher. 🧑‍💻 Part-time employees: Hours:Part-time employees usually work for under 30 hours per week and may not qualify for full-time benefits.Benefits:Part-time employees who work a certain number of hours in a specified period may qualify for benefits depending on the country, despite working under 40 hours per week.Examples: A part-time editorial assistant who writes reviews for a local news outlet or a part-time customer service representative at a telecommunications company. 🧑‍💻 Temporary employees: Hours:Temporary employees can work full-time or part-time hours over a set period of time (e.g. 3-6 months).Benefits:Temporary employees may qualify for non-permanent employee benefits or even full-time benefits, if they work full-time.Examples: A temporary part-time sales specialist at an electronics store or a temporary full-time bakery manager substituting for staff on vacation. 🧑‍💻 Seasonal employees: Hours:Seasonal employees can be full-timers or part-timers who typically work for the course of a season.Benefits:Seasonal employees are similar to temporary employees in terms of the benefits they can receive and how they are hired.Examples: A retail gift-wrapper during the Christmas season at a mall or a seasonal part-time summer lifeguard. 🧑‍💻 Leased employees: Hours:Leased employees can work on a full-time, part-time, temporary, or seasonal basis over a specified period.Benefits:The benefits leased employees receive are also dependent on their role and working hours at the agency, rather than at the organization. Leased employees can work for different organizations but are under the employment of and receive payments from a staffing agency.Examples: A leased sales manager who sells software products at an engineering company or a temporary leased graphic designer who creates brand identities for clients at a design firm. Different Types of Contingent WorkersUnlike employees, contingent workers perform tasks that are not typical of the company’s services. Contingent employees may file and pay their own taxes as self-employed entities that outsource their services to a company. The following is a classification of the different types of contingent workers. 🙋 Independent contractors: Decide how they will perform their work on their own schedule for a company that typically hires them under a contract.Examples: Independent contractors may include trade professionals who work on a per need basis, such as plumbers and electricians who fix pipes or circuits for common household repairs. They could also work on a project at a time, such as an interior designer who is involved in a home renovation. 🙋 Freelancers: Are a type of self-employed independent contractor who may work multiple projects at the same time for several clients. Freelancers can work on their own time and location.Examples: An example could be a photographer who shoots photos for the duration of a wedding or concert. Another example could be a remote web designer who creates a website for a pet food business that may only need a site update every few years. 🙋 Temporary workers: Are similar to temporary employees, in that they are hired temporarily, and sometimes both names are used interchangeably. However, contingent temporary workers are not on a company’s payroll, meaning the employer doesn’t have to pay their taxes or offer benefits.Examples: A self-employed accountant who is hired by a biscuits company to work for the duration of the tax season or a warehouse associate who helps with inventory and stockpiling for a store opening. 🙋 Consultants: Differ from other contingent workers in the sense that they are hired as experts primarily to offer advice.Examples: Independent consultants could include legal consultants, strategy consultants, or marketing consultants. An example could be a UX strategy consultant who conducts user interviews to provide solutions for a company’s website goals, without changing the site itself. 🙋 Interns: Are a type of contingent worker who work to gain experience, meaning that compensation could be non-monetary in some cases. Examples of non-financial compensation could be course credits, paid travel, or training experience. Internships could span weeks to months and can prove valuable to employers who use them as trial periods to scope potential employees.Examples: Culinary students on a paid travel internship or a business student on a stipend as a corporate strategy intern.What to Consider When Hiring1. Contract Depending on the type of employment you deploy, be aware of the different employee contract types you may use, for tax filing accuracy: Permanent Employee:If you are hiring with long-term employment in mind, such as for a full-time or part-time employee, you may use a permanent contract. This type of employee contract may include benefits and terms for termination instead of a definite end date. Depending on the country, you may have to file a relevant employer-employee income tax form (e.g. W-2 in the US, T4 in Canada) and withhold necessary taxes.Temporary, Leased, and Seasonal Employees:If you are hiring a temporary, leased, or seasonal employee, the type of contract you might use is a fixed-term employee contract, which includes a clear end date and/or an extension clause. Depending on hours worked and relevant labor standards in your country, an employer may still be obligated to pay certain benefits or taxes.Contingent Workers:If you are hiring an independent contractor, a freelancer, a consultant, or a leased temporary worker from a third-party agency, you are not hiring them as an employee and would not be responsible for paying their taxes. The type of employee contract used in this case may be a fixed-term contract, which sets fixed dates and payment for a certain project or length of time. In some cases, you would issue a non-employer income tax form to the contractor or freelancer.Under certain labor standards, which vary by country, interns may or may not be considered an employee of a company. In such a case, an employer may need to consider implications in terms of finance and extent of work. 2. Salary vs Hourly Employees are typically paid monthly salaries, while contingent workers tend to be paid hourly. However, some employees (e.g. part-time) could receive hourly pay. Salaries are set in agreements and paid periodically (e.g. bimonthly, monthly), irrespective of fluctuations in working time. In the same pay period, for instance, a contingent worker who receives hourly pay could earn more or less than a salaried employee with a fixed base pay in the same week. 3. Exempt vs Nonexempt Depending on the position, hours worked, and schedule regularity, employees could be categorized as nonexempt employees receiving hourly pay or as exempt employees receiving salary pay. Since exempt employees receive a fixed salary, they may not qualify for overtime pay. Nonexempt employees may be compensated for their overtime hours since their pay is determined by hours worked. Contingent workers could be exempt or nonexempt depending on their occupation, working hours or rate, and relevant labor standards.🔑 Key Takeaways Identifying different employee categories is important for recognizing the types of staff needed to support a company’s productivity in terms of time, resources, and skills.Employers who need more control in work processes for long-term employment may consider hiring permanent employees. Recruiters who want to save costs on a one-time project may hire contingent workers who can offer an immediate specialized set of skills for selective time periods.Permanent employees and contingent workers generally differ in the kinds of tasks they perform. While permanent employees are responsible for tasks central to the company, contingent workers offer their own expertise that may not be directly representative of the company’s services.Depending on relevant labor standards, working hours, and the type of employment, how you categorize employees can have contractual implications in terms of tax payments, benefits, and overtime compensation.Hire better with less effort! With thousands of active members with their resumes on Cake, you can easily find your ideal candidates and reach out to them.Talent Search--- Originally written by Flora Lai ---
Recruitment & HR
Apr 24th 2023

How to Create an Employee Referral Program [With Examples]

In this article, we will discuss:A Quick Glance at Employee ReferralsHow to Create an Employee Referral ProgramEmployee Referral StrategiesEmployee Referral Program Examples If you have been struggling to find the right candidates, you're not alone. When it comes to hiring, many recruiters and employers encounter similar problems for various reasons, for example: The job posts fail to deliver the intended messages to the candidates, or are not posted on the right platforms.Candidates are more selective in applying for openings.Candidates fail to meet the skill-set combination or job requirements that you’re looking for.Some positions are hard to fill, especially in food service, education, childcare, elderly care, cleaning, and construction sectors.Other factors like employer branding, salary negotiation, hiring strategies, etc. If you've been experiencing these issues, employee referrals may be worth a try. As the most powerful source of finding suitable candidates, employee referral programs can give your recruitment efforts a significant boost while saving a lot of time. In this article, you will find the ultimate guide to internal referral - why it matters, how to develop an effective referral program in recruitment, and more.A Quick Glance at Employee Referrals What is an employee referral? By definition, an employee referral is when companies or organizations ask their existing employees to recommend some candidates from their existing networks. In return, these employees will get a referral bonus, typically a financial reward, if the company successfully recruits that individual. That is also how referral works. What is an employee referral program? Simply put, this is an internal recruiting method in which employers encourage current employees, through referral incentives, to refer suitable candidates for job openings in their companies. 5 benefits of employee referral programs: Time-savingOn average, external recruitment methods can take 55 days to successfully hire a candidate, whereas it takes only 22 days for the entire employee referral scheme. (source: LinkedIn Business)Better candidate qualitySince your current employees know your company culture and work environment very well, they know exactly who will be the best cultural fit. Also, they will not introduce someone who fails to meet the basic job requirements.Improving (new) employee retention The better quality of hire, the better employee retention. Employees who are referred tend to stay longer with your company compared to traditional hires. The reason is that those selected from recruitment referral programs already know quite well about you through your existing staff.Reducing (existing) employee turnover rateEmployees who make a candidate referral will feel they are part of the hiring process and that their opinions count. This in turn will make them more engaged and stay with your company long-term.Building your brandThink of it as word-of-mouth marketing. Job seekers tend to trust what your existing staff say about your company more than what you write in the job post. Hence, internal referrals can contribute to building a successful employer branding strategy.How to Create an Employee Referral Program Step 1: Understand the hiring workflow. You'll first need to learn about all the necessary steps when it comes to referring an employee, including: Announcing the vacant rolesReceiving, reviewing, and shorting applicationsInterviewing suitable candidatesMaking a final decisionSending out a job offer Typically, there's little difference between external and internal referrals, except for the referral bonus policy. Step 2: Establish clear rules and incentives. Next, figure out exactly how the referral works within your company to avoid any misunderstanding or conflicts that may come from any side. Answering the following questions can help you set up an employee referral policy: Who can refer an employee? (i.e., any specific department, job level, or everyone can join the program?)Do you want to use only candidate referrals for every open role or specific positions?What is the maximum number of people that an employee can introduce?How can employees submit their referrals for recruitment, and when is the deadline?What is the reward for those making a successful referral? (e.g., cash, gift, vacation, etc.) It's equally important to pay extra attention to the referral bonus policy because it can go a long way in motivating your staff. You'll need to make it clear, simple to understand, and valuable, so they’re more likely to recommend people from their network who are qualified for the vacant roles. Step 3: Announce the employee referral program. Now that you already have a clear idea of how the employee referral scheme will work, make sure all the employees are well-informed about this. You can send them an email, post it on the internal job board, or announce it in the meeting. It's also crucial to keep those who refer candidates up-to-date at every stage of the process. If the candidate is not selected, you should still send referrers a thank-you note for their time and suggestion.Employee Referral Strategies Now that you might already know how to develop a referral program, here're some extra tips to make it work out for the best. 💡 Keep it simple and straightforward. One of the winning tips is creating an easy referral process that encourages your colleagues to do something beyond their normal job duties. The employee referral program policy, including rules, methods and rewards, should be easy to understand and apply. Below are several ways to keep this process simple: Place a resume drop box in the HR department’s office.Use an online employee referral platform like ERIN, Boon, RolePoint, Teamable, etc.Adopt a simple employee referral template.Make an instructional video or presentation that details the employee referral program. 💡 Consider different types of incentives. One of the best ways you can do to keep employees engaged in candidate referral programs is by effectively incentivizing them. Here are 7 different types of referral incentives to boost employee engagement: Financial incentives ( cash, bonuses and raises)Gifts (gift cards, travel vouchers, etc.)Extra days off with payWellness incentives (free healthy lunches, on-site health screenings, gym membership, etc.)Recognition and awardsLearning and development stipendProfessional development opportunities 💡 Keep the employee updated. As mentioned before, communication is a critical factor in making referral bonus programs work well in your organization. You need to keep your colleagues posted about the status of their referrals, so they will feel their suggestions are valued. This is also a great way to achieve a positive employer branding. 💡 Acknowledge good referrals. Acknowledging employees' efforts to refer high-quality candidate is equally important for building a successful employee referral program. The most popular way to do so is by sending them a sincere thank-you email, no matter whether the referred candidate gets hired or not. You can refer to the email template below: Subject line: Thanks for your referral! Dear [employee name], This email is to thank you for referring a candidate(s) for the position of [vacant role]. As you know, referrals are one of our best sources of new hires, and your effort in suggesting the right candidate is extremely valuable to us. We will keep you updated on the status of your referred candidate(s). Once again, we greatly appreciate your referral. Best regards, [Signature] 💡 Make use of social media. Social media can supercharge your employee referral program in various ways. Let's say your co-workers have an average of 300 friends on Facebook, so multiplying this by only ten employees will generate about 3,000 prospects. In this way, you’ve got a solid chance of recruiting success based on how you are able to leverage your employees’ social media networks. Sample Employee Referral Form 📚 Download the Employee Referral Form (word doc) for free here!Employee Referral Program Examples 1. Accenture Employee Referral Program Among the largest management consulting company in the world, Accenture involves their employees in the recruitment process and has a separate portal for their employee referral scheme (employeereferralprogramme.accenture.com). After logging into the site, the employee needs to enter all the candidate's details, such as name, D.O.B., address, educational background, work history, and other required information. They will then receive a C.I.D. number for tracking the status of the referral as well as a notification via email. Referral rewards include cash (which depends on the level of employment and skillset of recruited employees) and other prizes like watches, shoes, gym bags, and T.V.s, also based on the number of successful referrals. 📚 Further reading: Accenture Career FAQs 2. Google Employee Referral Program At Google, their employee referral programs are supercharged by simplicity. They previously doubled the referral bonus from $2,000 to $4,000, but this strategy did not work. Instead, HR leaders at Google encourage their current staff to look through their networks and identify professionals by asking simple questions such as: Who is the best (coder/engineer/marketing specialist/etc.) you have ever worked with?Who are 5-10 people you would want to work with again? By making the process simple and easy to apply, their new internal referral strategy has proved to be successful. 3. Salesforce Employee Referral Program The cloud-based software company takes a different route by organizing a get-together where employees invite friends or families who could be a good fit. The event, called “Recruitment Happy Hours”, serves as an informal introduction to the workplace and puts candidates at ease compared with formal interviews as usual. Another factor that makes their referral program achieve success is the reward system. Besides a cash bonus of 2.000 USD for every successful referral, Salesforce's employees also receive thoughtful gifts. 📚 Further reading: A path to Salesforce - How we hire 4. Other companies with the best employee referral programs Still looking for other ways to supercharge your employee referral program? Check out the following companies that have the most genius ideas: InMobiIntelPUREEnterpriseGoDaddy Cake is a cutting-edge free online resume builder that allows professionals to build and maintain their online presence. Besides personal branding, Cake also offers an employer branding solution that helps businesses establish and promote their brand across various talent pools globally. Want to know more about developing your employee referral employer or need employer branding consultation? Talk to one of our representatives for more information! — Originally written by May Luong —
Recruitment & HR
Mar 12th 2026

How to Hire Employees in Vietnam: A Complete Guide for Foreign Companies (2025)

Top reasons businesses choose EORTable of Content:Top 5 Reasons to Hire Teams in VietnamWhat to Know Before Hiring in VietnamWhy do many companies choose EOR services? VietnamFAQs on Hiring in Vietnam (2025)In 2025, Vietnam has emerged as one of the most attractive destinations for global businesses seeking to expand their teams. For foreign companies, knowing how to hire employees in Vietnam is no longer just an advantage; in fact, tapping into the country’s fast-growing economy and highly skilled talent pool is becoming essential. This guide covers everything you need to know about building a team here, from understanding the Vietnam Labor Law and tax requirements to exploring cost-effective hiring options like Employer of Record (EOR) services. With practical insights on employment contracts, compliance, and the local hiring landscape, you will be better equipped to recruit confidently and scale your business in one of Southeast Asia’s most promising markets.Top 5 Reasons to Hire Teams in VietnamVietnam's growing economy and strategic location have made it an ideal destination for foreign investment and talent acquisition. For companies considering global expansion or planning to open a company in Vietnam, the benefits of hiring teams here extend well beyond cost savings. Businesses gain access to a dynamic talent pool, a supportive business environment, and an economy that continues to show strong, sustainable growth. 1. Lower Labor Costs than Thailand and the Philippines One of the most significant advantages of hiring teams in Vietnam is the considerable cost efficiency compared to neighboring markets like Thailand and the Philippines.In 2025, the average monthly net salary in Ho Chi Minh City is about USD 502.90, lower than Bangkok’s USD 839.84 and Manila’s USD 531.63, according to Talentnet Group. 2. Abundant and Educated Workforce Vietnam is home to a large, young, and increasingly well-educated workforce. With a population of over 100 million and a median age of just 33.4, the country adds millions of graduates annually from universities and vocational schools. Moreover, a strong focus on STEM education has created a growing pool of skilled professionals in IT, engineering, and manufacturing. As a result, this demographic strength provides businesses with a steady stream of eager, adaptable talent, making the cost of hiring in Vietnam even more attractive when balanced against the quality of the workforce. 3. Strong Government Support and Favorable Business Environment Vietnam’s government actively attracts foreign investment through stable policies, streamlined business regulations, and tax incentives. The country has also signed numerous Free Trade Agreements (FTAs), strengthening its position as a regional manufacturing and trade hub. Furthermore, recent policy shifts focus on high-tech industries and sustainable development. 4. Rapidly Advancing Digital Infrastructure Vietnam is making substantial investments in its digital ecosystem. By 2025, it aims to achieve 99% high-speed internet coverage, a nationwide rollout of 5G, and the development of state-of-the-art data centers. This strong digital backbone fuels remote work, digital transformation, and the expansion of tech-driven sectors, creating an ideal environment for modern businesses. 5. Strategic Location and Economic Growth Centrally located within ASEAN, Vietnam offers excellent access to major global markets via well-connected shipping routes. Its economy continues to post impressive GDP growth, ranking among the fastest-growing worldwide. This stable and dynamic economic climate provides fertile ground for business expansion and long-term investment.🔎 Not planning to set up a local entity? Here are your 3 options for hiring in Vietnam. What to Know Before Hiring in VietnamFor foreign companies, understanding the Vietnam Labor Law is essential for hiring successfully and staying compliant. Before building a team or setting up a company in Vietnam, it’s necessary to be familiar with the rules around employment contracts, taxes, payroll, working hours, and social insurance to ensure a smooth and lawful hiring process. 1. Employment contracts There are only two types of labor contracts as per the new Labor Code, which took effect in January 2021. Indefinite-term contracts: These contracts do not specify an end date and are common for long-term employment.Definite-term contracts: These contracts have a precise expiration date, typically up to 36 months. After two consecutive definite-term agreements, if the employee continues to work, an indefinite-term contract must be signed. 2. Tax obligation In Vietnam, employers are responsible for reconciling and finalizing Personal Income Tax (PIT) for their employees annually. This annual tax finalization for income earned in the previous calendar year is typically due by March 31 of the following year (e.g., March 31, 2025, for 2024 income). Individuals who directly finalize their taxes generally have until April 30 of the following year. However, this deadline can be extended if it falls on a weekend or public holiday (e.g., to May 5, 2025, for 2024 income, due to upcoming holidays).Tax residents are subject to personal income tax (PIT) on their worldwide income at progressive rates from 5% to 35%, while non-residents are taxed at a flat 20% on Vietnam-sourced employment income. PIT can be settled via bank transfer, with monthly filings generally due by the 20th day of the following month, and quarterly filings by the last day of the first month following the reporting quarter. 3. Payroll cost The cost of hiring an employee in Vietnam goes far beyond base salary. Employers must also account for mandatory contributions and common benefits. Payroll requirements include payments toward social insurance, health insurance, unemployment insurance, and trade union fees, all of which must be calculated carefully to ensure compliance. 4. Overtime pay working hour limits The Vietnam Labor Law for foreign companies strictly regulates working hours and overtime. Regular Working Hours: Standard working hours are typically 8 hours a day or 48 hours a week. Some specific industries may have different regulations.Overtime Limits: Overtime hours are capped at 4 hours per day, 40 hours per month, and 200 hours per year. However, in certain specific cases (e.g., manufacturing, electricity production), the annual limit can be extended to 300 hours with prior approval from the Ministry of Labor, Invalids and Social Affairs.Overtime Pay Rates: Overtime compensation is mandated at higher rates:Weekday overtime: at least 150% of the normal hourly wage.Weekend overtime: at least 200% of the normal hourly wage.Holiday/public holiday overtime: at least 300% of the normal hourly wage (plus the normal daily wage). 5. Social insurance Mandatory social insurance in Vietnam is critical to employee compensation and employer obligations. Both employers and employees contribute to three main funds: Social Insurance (SI), Health Insurance (HI), and Unemployment Insurance (UI). Social Insurance (SI): Covers sickness, maternity, occupational diseases, accidents, retirement, and death benefits.Health Insurance (HI): Provides access to medical examination and treatment.Unemployment Insurance (UI): Offers unemployment benefits and vocational training support. 📗 For further details, download our Vietnam Market Entry Pack.Why do many companies choose EOR services?When foreign companies look to hire employees in Vietnam, they generally choose between two main approaches: setting up a local entity to hire directly or working through an Employer of Record (EOR) service. The right option depends on the company’s long-term goals, how much control they want over operations, and how much administrative complexity it is willing to manage. Many companies are increasingly turning to Employer of Record (EOR) services to navigate the complexities of hiring and setting up operations in Vietnam. This choice is driven by several clear advantages that align with the realities of the Vietnamese market. 1. Faster, more cost-effective entry into Vietnam Setting up a legal entity in Vietnam, whether a wholly foreign-owned enterprise or a joint venture, can take months and require significant time, money, and effort. The process often involves navigating legal registrations, obtaining licenses, opening bank accounts, and dealing with extensive paperwork. EORs already have established entities and deep local expertise, allowing foreign companies to hire employees in Vietnam within days or weeks. This speed is invaluable for businesses that want to test the market, secure top talent quickly, or launch projects without committing to heavy upfront investments. 2. Guaranteed compliance with the Vietnam Labor Law Vietnam’s labor regulations are detailed, frequently updated, and can be challenging for newcomers. Companies risk fines, legal disputes, or reputational issues without expert guidance if they fail to comply with wage standards, tax obligations (including personal income tax and mandatory social, health, and unemployment contributions), or termination rules. An EOR assumes full legal responsibility for employment, ensuring compliance with payroll, tax withholdings, statutory benefits, and even managing work permits and visas for foreign hires, removing major legal and HR headaches. 3. Streamlined hiring and workforce management EORs simplify the entire employment process in Vietnam. They draft compliant contracts, manage payroll in VND, oversee benefits, and handle leave management and employee concerns. Their scale and local know-how often allow them to offer better benefit packages than a foreign company could arrange alone. This support helps businesses focus on strategy and growth while creating a smooth, compliant experience for their Vietnamese employees, leading to higher retention in a competitive talent market. 4. Financial predictability and reduced risk EOR services typically bundle all employment costs into a transparent, all-in-one monthly fee per employee. This makes budgeting for Vietnam straightforward and avoids hidden costs or unexpected liabilities. More importantly, EORs help companies avoid costly mistakes like employee misclassification under Vietnamese law, protecting finances and reputation.Need fast, compliant, low-risk hiring in Vietnam?Partner with Cake to quickly build your team in Vietnam with full confidence! Request a consultation FAQs on Hiring in Vietnam (2025)1. What is the minimum wage in Vietnam? As of July 2025, the minimum wage in Vietnam varies by region. The country is divided into four areas, each with a different minimum wage rate to reflect the cost of living and economic conditions. Region I (e.g., Hanoi, Ho Chi Minh City): Expected to be around 4,960,000 VND monthly (approx. USD 195).Region II (e.g., Da Nang, Can Tho): Expected to be around 4,410,000 VND monthly (approx. USD 173).Region III (e.g., smaller cities): Expected to be around 3,860,000 VND monthly (approx. USD 152).Region IV (e.g., rural areas): Expected to be around 3,450,000 VND monthly (approx. USD 135). 2. Can a foreign company legally hire in Vietnam without a local entity? Yes, a foreign company can legally hire employees in Vietnam without establishing a local entity. However, it requires working with an Employer of Record (EOR) or engaging independent contractors. 3. How do you pay a Vietnamese remote employee? A straightforward way for foreign companies to handle payroll for remote employees in Vietnam is to work with an Employer of Record (EOR) service, such as Cake. These services manage everything from salary payments and tax filings to ensuring compliance with the Vietnam Labor Law, which removes a significant administrative burden for employers. Unlike some countries, Vietnam does not impose a rigid payroll schedule. Instead, employers and employees can agree on whether salaries will be paid monthly or twice a month, as long as the arrangement is clearly outlined. In rare situations involving force majeure events where immediate payment is impossible, salaries may be deferred for up to one month. However, if payment is delayed by over 15 days, the employer must pay interest on the overdue wages. That interest is calculated based on the amount owed, using the ceiling interest rate for one‑month deposits set by the State Bank of Vietnam (SBV) at the time the payment is eventually made. 4. What are the mandatory benefits employers must provide? 13th-month salary or Tet bonus: Although it isn’t legally required, giving a Tet bonus is a long-standing tradition in Vietnam, and most Vietnamese employees will expect it.Annual leave: After completing a full year of service, employees in Vietnam become eligible for paid annual leave in addition to public holidays. The number of days depends on their role and working conditions, and they receive one extra day for every five years of service. There are no strict rules on how unused leave should be handled. Some employers allow it to roll over into the following year, while others pay it in cash.Sick leave: Sick leave benefits come from the national social insurance fund rather than the employer. Employees usually submit a medical certificate to confirm their absence when taking time off. The length of paid sick leave depends on how long the employee has contributed to the system.Maternity leave: Female employees are entitled to six months of maternity leave, plus an extra month for each additional child in the case of twins or multiples. The social insurance fund covers maternity benefits, and women also receive five paid prenatal check-ups, which can be extended to 12 paid days if the fetus is unstable.Paternity leave: A male employee whose wife has given birth can take 5-14 days of paid leave, depending on certain factors.Other leaves: Vietnamese employees are also entitled to other leaves at the discretion of the employee and employer, including:3 days for marriage leave1 day leave for the child’s marriage3 days of personal leave (including leave for the death of family members)Insurance and social security contributions: Under the Vietnam Labor Law, employees and employers must contribute to the social, health, and unemployment insurance funds.The employer contributes 23.5% of the employee’s base salary.The employee contributes 10.5% of the employee’s base salary 5. How do you terminate an employee in Vietnam? Ending an employment contract in Vietnam is possible, but it follows strict regulations. Employers can terminate staff if the contract has expired, the employee retires, repeatedly fails to meet duties, suffers from long-term illness, or if the business downsizes or closes. Likewise, employees may also resign if the contract ends, they retire, the employer breaches agreed terms, or they face harassment or mistreatment. Notice periods depend on the contract type: 30 days for definite-term contracts;45 days for indefinite-term contracts. Closing: Hiring teams in Vietnam offers vast potential, but navigating the complex Vietnam Labor Law for foreign companies and payroll requirements can be challenging. An Employer of Record (EOR) service streamlines compliance with mandatory social insurance in Vietnam, Vietnam's personal income tax (PIT), and more, providing a fast, risk-mitigated solution. This lets your business focus on growth and confidently unlock Vietnam's full potential.Don't just fill a position - hire the talent that will define your success in Vietnam. Our experts are ready to build the team that will drive your growth.Contact Cake

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