Mobile World wants to give Tet bonuses to employees with an average of 28 million VND

During the third quarter business meeting of Mobile World Investment Joint Stock Company (MWG), an investor asked about the sudden increase in employee bonuses. According to the consolidated financial report, MWG’s employee bonus expense is nearly VND 1,689.4 billion at the end of September, 2.5 times higher than the same period last year.

Mr. Vu Dang Linh – Chief Financial Officer – said that this is an advance payment to reward employees on an annual basis and will be paid at the end of the year. Previously in 2023, business results were not favorable so the company only awarded one month’s salary, the lowest level in the past 15 years. This year, business results are more positive, so the board of directors wants to increase the bonus fund to encourage employees.

“This is something that needs to be done and should be done so that the company can develop sustainably,” Mr. Linh stated.

As of the end of September, the entire Mobile World system had 60,258 employees. Thus, the average Tet bonus per person will be more than 28 million VND. Last year, MWG had a bonus fund of 671.6 billion for 65,414 employees, on average each person received 10.3 million. Thus, the bonus at the end of this year is nearly 3 times that of 2023, possibly equivalent to 3 months’ salary.

The above number is higher than the average bonus of the previous two years and 2019. However, this level is still significantly lower than 2018, 2020 or 2021. MWG Finance Director also said that this year’s bonus is not much. compared to a business with more than 60,000 employees.

28 million VND is not the average bonus for the whole year because there is still the last business quarter. The above number will depend on the number of employees remaining at the end of the year as well as whether MWG deducts more or reduces the bonus fund or not.

In 9 months, this retail “empire” has cut 5,156 workers. This is one of the heaviest layoffs in Mobile World’s history. The number of people losing their jobs this period is equivalent to 60% of the whole year 2023. Last year, they cut 8,594 jobs.

However, this mainly takes place in the first quarter of the year. The rate of staff reduction in the next two quarters slowed down. The Board of Directors also announced the basic completion of the restructuring process. Therefore, in the fourth quarter, there will be fewer closures and they are also confident that the current staff has good quality and high working efficiency.

Human resources is one of the main driving forces for Mobile World’s development strategy. When answering the question about the challenge to maintain double-digit growth in the future, Mr. Nguyen Duc Tai – Chairman of the Board of Directors – said that the answer lies in whether the team can keep the “fire” or not.

“The biggest fear of a leader is looking back and not seeing anyone. We will keep our spirit, even though we have done very well, we must still strive to do better no matter how far away we are from our opponents,” he said. speak.

The professional staff also helps Mr. Tai feel confident when competing with e-commerce platforms. According to MWG leaders, high-value products that require installation and after-sales service will be a very difficult playground for small online units to access.

“No one, in order to save a few hundred thousand, would risk tens of millions when it is not clear who will install it for them, and if an incident occurs, they also do not know who is responsible,” he commented.

MWG Chairman said it is not simple to train a team of thousands of employees ready to install, and if there is a problem, they can quickly return to repair it for customers. This entails “huge” costs. Therefore, for small stores to bring valuable products to the online platform to sell and have good after-sales service, “it will probably take another 10 years”.