Is Delaying Pay Rises Leading to Staff Turnover or Disengagement? 93% of Employers Say Yes

• Nearly 6 in 10 employers surveyed reduced or postponed pay rises
• Close to 20% of employers reduced or postponed pay raises this year, while another 50% considered it but chose not to implement any increases.
• 60% of professionals indicate that they are actively hunting for jobs after not receiving their expected pay raise.
• 64% of professionals who received pay rises shared that the increase was lower than what they expected.
• Close to 60% of professionals perceive that they are either significantly or somewhat underpaid for their current roles, in relation to the market rate

Business leaders in Vietnam are aware of the impact of monetary compensation to engage or retain talent. Nine out of ten employers in Vietnam have seen an increase in employee turnover or disengagement after delaying pay rises to professionals. This is among the findings from a new poll of 200 professionals and employers in Vietnam from global talent solutions business Robert Walters.

With an evolving economic landscape, many employers are facing difficult financial decisions. Controlling overheads has become a priority - and in many cases, that has meant deferring or scaling back salary reviews. While this approach may offer short-term savings, the research shows that over time, this could have wider implications for morale, employee retention, and company culture.

With businesses facing mounting pressure to control costs, many have found salary increases unfeasible this year. According to Phuc Pham, Country Manager at Robert Walters Vietnam, nearly half of business leaders identified business performance as the key factor behind delaying or reducing pay rises, followed by market uncertainty (32%). The remaining decisions were driven by budget constraints or no specific reason at all.

“Our research highlights that while these cost-saving measures may be necessary, they are not without repercussions,” says Phuc. “From increased employee turnover to declining morale, companies are beginning to experience the long-term impact of these decisions.

The survey also reveals a widening disconnect between employer decisions and employee expectations. Among employees who didn’t receive a pay rise this year, 60% said they are now actively looking for a new job. Even among those who did receive an increase, 64% said it was lower than expected.

“The takeaway is clear: while employees may recognise the challenges businesses face, unmet expectations are still driving them to explore other opportunities. With AI tools simplifying job applications, it’s easier than ever for professionals to seek new roles," says Phuc. "This underscores the importance of salary benchmarking and market insights. Employees who haven’t received a pay increase may become disengaged or set higher demands during their next performance review. To address this, employers must rely on market data to communicate transparently, ensure fairness, and effectively manage expectations.

“In Vietnam, more employers are asking how they can retain top talent when salary increases are off the table. My advice is to think beyond pay and explore creative alternatives, such as offering meaningful career development opportunities, flexible work arrangements, or clear pathways for internal mobility," says Phuc.

When budgets are tight, fostering a strong workplace culture and maintaining open communication become even more critical. The organisations that thrive will be those that strike a balance between cost management and a strategic, market-driven approach to employee engagement.

To help business leaders make more informed decisions, the Robert Walters 2025 Salary Survey provides up-to-date insights into pay levels and hiring trends. The guide is designed to help leaders have transparent, evidence-based conversations with their teams about compensation and expectations. To find out more about salary benchmarking, click here.

ENDS