Factors affecting the management of human resources at small and medium enterprises during Covid-19 pandemic in Vietnam

Hang, Nga Phan Thi Article Factors affecting the management of human resources at small and medium enterprises during Covid-19 pandemic in Vietnam Cogent Business & Management Provided in Cooperation with: Taylor & Francis Group Suggested Citation: Hang, Nga Phan Thi (2024) : Factors affecting the management of human resources at small and medium enterprises during Covid-19 pandemic in Vietnam, Cogent Business & Management, ISSN 2331-1975, Taylor & Francis, Abingdon, Vol. 11, Iss. 1, pp. 1-21, https://doi.org/10.1080/23311975.2024.2352884 This Version is available at: https://hdl.handle.net/10419/326282 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. 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If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. https://creativecommons.org/licenses/by/4.0/ Cogent Business & Management ISSN: 2331-1975 (Online) Journal homepage: www.tandfonline.com/journals/oabm20 Factors affecting the management of human resources at small and medium enterprises during Covid-19 pandemic in Vietnam Nga Phan Thi Hang To cite this article: Nga Phan Thi Hang (2024) Factors affecting the management of human resources at small and medium enterprises during Covid-19 pandemic in Vietnam, Cogent Business & Management, 11:1, 2352884, DOI: 10.1080/23311975.2024.2352884 To link to this article: https://doi.org/10.1080/23311975.2024.2352884 © 2024 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group Published online: 14 May 2024. Submit your article to this journal Article views: 2624 View related articles View Crossmark data Citing articles: 1 View citing articles Full Terms & Conditions of access and use can be found at https://www.tandfonline.com/action/journalInformation?journalCode=oabm20 ManageMent | ReseaRch aRticle Cogent Business & ManageMent 2024, VoL. 11, no. 1, 2352884 Factors affecting the management of human resources at small and medium enterprises during Covid-19 pandemic in Vietnam nga Phan thi hang university of Finance - Marketing (uFM), Ho Chi Minh City, Vietnam ABSTRACT During the past pandemic, digital business activities have developed enormously, and many businesses have undergone a significant transformation to participate in the digital revolution. however, for the digital transformation to take place successfully, industry 4.0 comes from breakthroughs in many fields, including the digital wave of the manufacturing sector. Many countries have paid attention to and concretized priorities for developing a digital economy. Vietnam also faces challenges that the digital trend brings, including the risk of competition for small and medium enterprises, especially high-quality human resources in today’s businesses. this article analyzed the current situation and applied descriptive statistics to summarize and apply the structural equation model (seM) from a set of data, a research sample in numbers, and visual charts that surveyed 850 enterprise managers. human resource management is a multifaceted process that has wide-ranging effects. Presently, several variables are influencing the field of human resource management. these elements often undergo changes and can be categorized into fundamental influencing factors: the attributes of the external factors, including the economy, people, legislation, culture, rivals, science, and technology. the internal environment encompasses several variables: the working environment, labor recruitment and selection, training and development, remuneration, bonuses, and welfare. the article’s goal is to explore factors that influence human resource management. Based on the results, the article’s contributions had several policy recommendations for developing human resources at small and medium enterprises for Vietnam’s post-covid-19 pandemic. the application of the research is to strengthen and build a cultural working environment and create conditions and opportunities for human resources to develop; business leaders must be exemplary in words and deeds. human resource development strategies must be implemented in an environment of fairness, discipline, ethics, and respect for the law as standards; create a cultural environment, leading the development of human resources. 1. Introduction the digital economy is a long-term development process, digital transformation on the national level at different levels. Digital technology can do their jobs better and even have a breakthrough to bring outstanding productivity and efficiency. the studies defined the digital economy as primarily reliant on digital technologies, particularly electronic transactions carried out over the internet. the digital economy encompasses all areas, including industry, agriculture, services, production, distribution, product circulation, transportation, logistics, finance, and banking, where digital technology is utilized (adeyi et al., 2018; Zacher & Rudolph, 2022). the digital economy is characterized by integrating three basic processing processes: material processing, energy processing, and information processing. information processing is the most crucial and most accessible area of digitization (iqbal & ahmad, 2020). the advancements in information technology and the internet have facilitated connectedness and hyperconnectivity between entities and economic cycles. this has resulted in the efficient connection of resources, the elimination of middlemen, and increased access chances for the global value chain. © 2024 the author(s). Published by informa uK Limited, trading as taylor & Francis group CONTACT nga Phan thi Hang [email protected] university of Finance - Marketing (uFM), Ho Chi Minh City, Vietnam https://doi.org/10.1080/23311975.2024.2352884 this is an open access article distributed under the terms of the Creative Commons attribution License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. the terms on which this article has been published allow the posting of the accepted Manuscript in a repository by the author(s) or with their consent. ARTICLE HISTORY Received 24 February 2022 Revised 23 February 2024 accepted 29 april 2024 KEYWORDS human resource management; enterprises; covid-19 pandemic; policy implications; Vietnam REVIEWING EDITOR huifen (helen) cai, Middlesex University Business school, United Kingdom SUBJECTS human resource management; heritage management & conservation; administration and management; management & organization 2 nga Phan thi hang each economy requires a corresponding production force regarding its level, especially human resources. therefore, digital human resources must be deployed, organized, and operated in the digital economy. consequently, we can understand that digital human resources are the total quantity and quality of human beings with a combination of intellect, physical strength, and moral-spiritual attributes. this factor creates the capacity for the digital economy and will be needed to mobilize labor and creativity. the current situation of Vietnam’s human resources is that they are making breakthroughs and progress. however, Vietnam’s labor productivity is still very different from the world’s, even in southeast asia and read the following article to learn more about this issue. Regarding the human resources quantity, Vietnam now possesses a plentiful workforce compared to many places in the area and globally. Vietnam’s population in 2020 stands at 97,757,118 individuals, positioning it as the third most populated nation in southeast asia. among this population, 54.56 million people, comprising around 58%, are of working age. the labor force participation rate is most significant among those aged 25-29. Vietnam’s position on the worldwide capability ladder is relatively poor concerning the quality of human resources. there is a scarcity of proficient laborers and highly trained technical personnel. Vietnamese labor has demonstrated that the caliber of Vietnamese human resources ranks low on the worldwide capability ladder, characterized by a scarcity of competent and highly proficient technical professionals. Only 11.39 million workers, equivalent to 20.87% of the workforce, possess professional and technical credentials. these qualifications include degrees and certifications at various levels, ranging from elementary to graduate education. Over the last decade, there has been a significant rise in the percentage of workers who have undergone formal training. however, a substantial 76.9% of individuals in the labor market have yet to obtain any form of specialized training. Regarding geographical features, the number of individuals in metropolitan regions who possess degrees and certifications, starting from elementary level and beyond, is 2.5 times more than that in rural areas. the Red River Delta has the most significant proportion of the qualified workforce with degrees and certificates, at 31.8%, followed by the southeast region at 27.5%. in contrast, the Mekong River Delta has the lowest percentage at 13.6%. the Ministry of Planning and investment’s 2019 figures reveal that Vietnam’s labor productivity is just 7.6% of singapore’s, 19.5% of Malaysia’s, 37.9% of thailand’s, 45.6% of indonesia’s, 56.9% of the Philippines, and 68.9% of Brunei’s. When comparing Myanmar, Vietnam is just 90%, and laos is only 88.7%. according to a study by anlesinya and susomrith (2020), Vietnam’s labor productivity surpasses only that of cambodia among southeast asian countries. the paradox is an excess of unsuitable labor for industries in the development orientation but a shortage of high-quality human resources in the initiatives necessary to develop the economy. More than 70% of graduates lack professional and soft foreign language skills to approach work. in addition, an advanced degree does not determine whether it is difficult or easy to apply for a job but whether the human resource can meet the employer’s requirements. even many companies say they are having difficulty recruiting high-quality human resources. every year, the company has to spend hundreds of thousands of dollars to send workers for retraining because the recruited human resources do not meet the job requirements. in 2021, the city’s labor market needed to recruit 20,000 jobs, in which the recruitment needs of enterprises in industrial parks - export processing zones is 5,000 seats. according to employers, human resource demand continues to follow the market for many high-quality human resources. however, recruiting this force is difficult because the labor supply has not yet met the needs of employers. Many industries and fields, such as financial business, banking, auditing, information technology, electronics, telecommunications, mechanical engineering, etc., are always severely short of high-quality human resources. Finally, the source of high-quality labor in Vietnam is still limited. specifically, according to the Ministry of labor, War invalids, and social affairs, by the end of 2020, only 23.14% of workers have degrees and certificates from elementary or higher. this rate only increased to 25.82% in 2021. however, businesses increasingly recognize the human factor as the center of development. however, focusing on personnel issues, attracting talents, and developing people parallel to the organization’s growth only happens in large enterprises. Most Vietnamese enterprises are not taking this and have not cOgent BUsiness & ManageMent 3 considered people to be assets, contributing to the value of the business, a key factor for development and society. the author supposes the essence of the digital economy is an economy based on applying digital technologies. the economy develops on a knowledge base, where knowledge is considered a resource for developing the economy. Digital human resources must be well-trained, professional, ethical, capable of mastering technology, creative, and adapting quickly to the change of technology in the economy (al-haddad & Kotnour, 2015; cunningham et al., 2006). the human factor is the most critical in enterprises’ digital transformation process. therefore, the author had some policy recommendations for developing enterprises’ human resources based on small and medium during the covid-19 pandemic in Vietnam. 2. Literature review 2.1. Human resources management (HR) human resources management is a strategic endeavor focused on cultivating a skilled and capable workforce that can effectively support the firm’s growth objectives. it also emphasizes the personal development and growth of each worker inside the organization (aktar, 2012; Katou, 2009). human resources management involves the facilitation and promotion of human capabilities within an organization via activities such as organizational management, training, and personal development. the goal is to enhance performance and execution. human resources management encompasses various processes and activities aimed at enhancing the knowledge, skills, productivity, and job satisfaction of individuals or groups within an organization, particularly in a business context (Martin & coetzee, 2007; Minbaeva & navrbjerg, 2023; stuart et al., 2021). the field of human resources management is concerned with the study and application of theories and practices linked to training, development, and learning within organizations. it emphasizes the role of humans and their impact on influencing corporate strategy and enhancing organizational competitiveness (Frank & Mridula, 2018; Zhang & edgar, 2021). the implementation of human resources management aims to expedite commercial processes and enhance operational efficiency for organizations. however, it is important to enhance the workers’ functional capacity while ensuring alignment with the corporate growth strategy (Dobrovič & timková, 2017; iqbal etal., 2014). Management of human resources is the ideal combination of the workforce, training level, ethics, and employees’ skills to support the development of business plans for enterprises. Businesses operate effectively and contribute to socio-economic development in the best way. Based on the above analysis, the author had the following human resources management (hR) scales: hR1: the current workforce is very stable. hR2: Professional qualifications of employees. hR3: ethics and behavior of employees and ability to handle work (aktar, 2012; ererdi et al., 2021). 2.2. Working environment (WE) the comfortable, open, and transparent working environment allows employees to work with peace of mind and help enterprises achieve expected business results (Butali & njoroge, 2017; Ram et al., 2022). the working environment also has a significant influence on job seekers and people going to work. currently, employees are more interested in the working environment, especially those who have experience and are "jumping jobs." however, there are also evaluation criteria such as company culture, working space, leadership, career development opportunities, remuneration regime, reward, and effort for employees’ work (cooke et al., 2020; Katarzyna, 2019). this factor will motivate them to work more actively. On the other hand, the working environment can balance work and life to feel more satisfied and upbeat. if employees achieve their goals in life, such as family, friends, career, etc., they can feel more confident about themselves and perform more diligent and creative work at the workplace (anlesinya & susomrith, 2020; Basil & helen, 2013). a good working environment created conditions for employees to work comfortably and stably, significantly affecting the development of enterprises’ human resources. a good working environment is full 4 nga Phan thi hang of positive energy, giving employees excitement and motivation to work at total capacity (ikinci, 2014). Moreover, a professional and friendly working environment is an excellent opportunity for employees to affirm and maximize their working capacity, study and improve their qualifications to serve practical goals (Kyndt etal., 2009). therefore, it is an essential need in developing human resources at enterprises. the working environment is indispensable without development opportunities for employees. Businesses need to have appropriate training programs and promotion roadmaps to know where they can grow. good development opportunities will make employees stick with the company for a long time (appelbaum etal., 2017; Ke etal., 2006). Based on the above analysis, the author had the working environment (We) scales following: We1: employees work professionally and seriously. We2: the workplace has all the necessary equipment for employees. We3: employees are pleasant and comfortable talking to each other to perform their jobs. We4: Business owners helped and supported employees with difficulties at work and were treated fairly (anlesinya & susomrith, 2020; collings et al., 2021). thus, the author gave hypothesis h1 the following: Hypothesis H1: The working environment (WE) positively affects enterprises’ human resource management. 2.3. Recruitment and selection of labor (RL) Recruitment and selection of labor: businesses need a labor recruitment strategy that must be consistent with the company’s goals to have a successor team when training, transferring, and promoting (asfaw et al., 2015; Fee & Mcgrath-champ, 2017) Or arranging for the number of employees to retire or quit their jobs; recruitment sources from various sources, job placement websites, contracts with training units, selection may require a process by which the enterprise determines what needs (harney & alkhalaf, 2021). Potential candidates must ensure the basic knowledge, capacity, attitude, skills, and other issues to help them achieve their goals. this factor is considered the responsibility of the human resources department. it is responsible for recruiting the right people for the right jobs following the job description to find good employees to serve the development of the business in the future (hasler etal., 2006; Mohanad & ibrahim, 2019). For enterprises, labor recruitment is one of the crucial stages. Recruiting qualified and specialized workers suitable for recruitment needs will help businesses save money, costs, and time and bring results as expected, especially in the current development context (Karia & asaari, 2006; Kotey & Folker, 2007). Recruiting human resources is one factor that retains good employees because these workers can support the enterprise in implementing its plans, so interested businesses always appreciate the recruitment of employees. the recruitment of human resources has a highly significant meaning, which is decisive to the success or failure of each enterprise. Personnel recruitment directly impacts businesses, employees, and the country’s socio-economic development (lim et al., 2020; Zeqir & Ymer, 2019). thus, recruiting personnel is finding and selecting personnel to satisfy the needs and add the necessary workforce to realize the enterprise’s objectives. Based on the above analysis, the author had the recruitment and selection of labor (Rl) scales following: Rl1: enterprises announce recruitment information widely. Rl2: the recruitment system of the enterprise is guaranteed high science. Rl3: a clear job description for employees and provide complete job information to employees right from the moment they had recruited. Rl4: employees recruited entirely based on power (chang et al., 2022; Zeqir & Ymer, 2019). therefore, the author gave hypothesis h2 following: Hypothesis H2: The recruitment and selection of labor (RL) positively affect enterprises’ human resource management. 2.4. Training and development (TD) training and development are core issues that have a direct and vital impact on the management of human resources at enterprises to improve human resource quality comprehensively. this factor had considered essential to develop human resources in enterprises (Mclean, 2006). to achieve long-term cOgent BUsiness & ManageMent 5 results, it is also necessary to pay attention to the training of the successor labor force, so training and professional improvement for the enterprise’s employees is a common and essential issue. training and development of labor: training fosters professional knowledge and skills to perform a specific assigned job (Rani & Khan, 2014). the purpose of training is to demonstrate the capacity of job requirements and improve the efficiency and quality of their labor. currently, there are many types of training in many fields, such as short-term refresher training, vocational training, and job performance training according to the needs of enterprises. training is one of the most common interventions to human resources challenges. Practical training and development of employees make them actively participate in the industry’s growth. the potential for career growth promotes personal motivation to participate in an activity (Okoye & ezejiofor, 2013). skills training must be transferred to the workplace, maintained over time, and generalized across different contexts to improve productivity (carnevale & hatak, 2020; Pakdel, 2016). Both formal and informal training opportunities had seen as providing a forum for talent development. training and developing human resources are essential activities in an organization that has a significant role and significance in developing the business and the enterprise’s competition in the market (Rein et al., 2012). creating and developing human resources helps firms. thus, the ultimate purpose of human resource training and development is to make the most of the existing human resources and improve the organization’s efficiency by helping them better understand the job. Based on the above analysis, the author had the training and development (tD) scales: tD1: employees have many opportunities to develop and advance their work. tD2: employees have the opportunity to study and create at the enterprise. tD3: the business helps employees develop the skills to get the job done. tD4: Businesses encourage learning to apply to work and train the skills necessary to do the job well (Okoye & ezejiofor, 2013; Rein et al., 2012). thus, the author gave hypothesis h3 following: Hypothesis H3: Training and development (TD) positively affects enterprises’ human resource management. 2.5. Salary, bonus, and welfare (SB) help businesses achieve business results. Paying is one of the necessary forms of human resource management policy, and salary is a significant issue; it helps employees improve their lives and always devote their labors (Rosenberg & Mosca, 2011). in addition, to receive an appropriate and accurate salary for their time and labor, businesses must know how to motivate them physically and mentally to give them a firm belief to work for a long time for business (Mcclean & collins, 2019). in case their work exceeds the salary or rewards from the enterprise, especially the unfair salary and bonus regime, dissatisfaction may occur. salaries, bonuses, and other benefits of employees are accounted for in their operating expenses by the enterprise. therefore, enterprises that want to maintain their labor resources or attract good workers from other businesses must create all conditions for payment reasonably with the needs of the job (Uraon, 2017). however, there are still workers who sometimes work unsatisfactorily despite having high professional qualifications and skills. For these workers, it is necessary to encourage them to help them develop their forte - steps to achieve the efficiency of the assigned work (Butterick & charlwood, 2021; sanyal & hisam, 2018). and benefits are allowances covered by the business; allowances for employees with difficult circumstances; corporate gifts for employees on weddings, birthdays to motivate employees to work with peace of mind. Based on the above analysis, the author had the salary, bonus, and welfare (sB) scales following: sB1: the salary payment in the enterprise is consistent with the performance of the company’s working rate. sB2: the employee’s salary is commensurate with the work and duties. sB3: enterprises implement reward regimes and are accurate to the commitment to the employee. sB4: Policy on rewards and benefits clear notice to employees and reward and recognition based on enterprise results (sanyal & hisam, 2018; Uraon, 2017). thus, the author gave hypothesis h4 the following: Hypothesis H4: The salary, bonus, and welfare (SB) positively affect enterprises’ human resource management. 6 nga Phan thi hang 2.6. Evaluation of work results (EW) evaluation of work results: For any business enterprise, it also depends on the working capacity of employees and always exists, including three main steps: Determining goals, evaluating the performance of the plans, and providing relevant content for feedback. Business owners can observe and comment on employees’ attitudes and behaviors with assessment tools set by the business (Kyndt et al., 2009). however, often evaluate work periodically and follow the process. after evaluating work results to improve productivity, work quality, increase salary, transfer, promote to a higher position, terminate labor contract. therefore, assessing work results is a priority for a modern operating enterprise to improve work productivity for all employees. the assessment serves as a basis to encourage and improve the efficiency of the enterprise’s employees. Job performance evaluation can help employees recognize deficiencies in the enterprise’s work that did not complete on schedule. in addition, employees are very interested in evaluating their performance from the employer through the job (Karia & asaari, 2006). the employee’s assessment by the employer had intended to help the employee reassess his working capacity in the past to have a way to overcome these weaknesses (Rani & Khan, 2014). Besides, evaluating the employee’s work performance helps the business owner have a more macroscopic vision of managing the human resource. in addition, the element of job performance evaluation provides feedback so that employees know what level they are to promptly correct mistakes to complete the job well. and the assessment evaluation of job performance is a stepping stone for business owners to consider and promote employees to higher positions (Branicki et al., 2022; Zeqir & Ymer, 2019). Based on the above analysis, the author evaluated work results (eW) scales following: eW1: evaluation criteria associated with work and results of employees. eW2: the enterprise has a straightforward job evaluation process for employees and is fair and objective. Based on the capacity assessment as the basis for decisions. eW3: the enterprise has promotions and salary increases. eW4: Job evaluation stimulates employees to improve their working capacity (adikaram etal., 2021; Mohanad & ibrahim, 2019; Zeqir & Ymer, 2019). thus, the author gave hypothesis h5, h6 and h7 following: Hypothesis H5: The evaluation of work results (EW) positively affects enterprises’ human resource management. Hypothesis H6: The evaluation of work results (EW) positively affects enterprises’ training and development. Hypothesis H7: The evaluation of work results (EW) positively affects enterprises’ salary, bonus, and welfare. the author has built the research hypothesis, and the research model is presented in Figure 1. Based on the original theory of management of human resources and the overview results of previous studies, the author finds that many factors affect enterprises’ management of human resources. the author needs to focus on research - in-depth analysis of 5 elements in the economic context of international integration. 3. Methods of research to solve the problems posed by the above theory and model. the author continues to present the research method of the results mentioned in the following contents: qualitative research; preliminary quantitative research; evaluate the reliability coefficient cronbach’s alpha; discovery factor (eFa); confirmatory factor (cFa); structural equation model (seM); Bootstrap test; preliminary research steps; build a draft scale; preliminary quantitative research results; conclusions about the results of the initial study. Preliminary quantitative research results will continue eliminating incompatible observed variables before the official survey. the author presents the research contents of the article according to the research process in Figure 2 as follows (hair et al., 2018). this study had mainly based on two main research methods: qualitative research and quantitative analysis. the qualitative method had carried out according to the following process: the author reviews the overview documents related to the paper to find the gaps of previous studies. and the author proposed a theoretical research model; at the same time, the author discussed with 11 experts who are 11 business owners with many years of experience to complete the preliminary research scale. the main goal cOgent BUsiness & ManageMent 7 of the qualitative research is to build a model of factors affecting human resource management. Qualitative research also plays an exploratory role and builds a foundation to achieve the remaining two goals through the proposed theoretical framework based on the evidence discovered. Based on theory and logical reasoning, a path model is built showing the relationship between research concepts (variables) in which research hypotheses will be presented visually to serve the needs of the research inspection. in addition, in the qualitative research phase, the method discussed 11 experts in business management. in this study, the process of summarizing theory is through studying previously published research topics and understanding background theories. the research also inherits the measurement scales applied in past studies abroad. however, the author conducted discussions with experts to ensure that the scale suits the Vietnamese context and culture. the discussion participants are researchers with experience in practice and published human resource management research. the group of experts participating in the discussion includes 11 people, all highly specialized and knowledgeable about human resource management and have many years of experience in business management. During the debate, the author records all discussion content. through discussion, the scales were adjusted to suit the research objectives. Online discussions were carried out from May 2021 to september 2021 at large enterprises operating in hcMc. the applied components measure related concepts from foreign or domestic studies, and the research content does not overlap with previous studies. therefore, discussion with experts is a crucial issue to recalibrate the scale. the discussion is mainly for preliminary research; quantitative preliminary research Figure 1. the research model for the factors affecting the management of human resources of enterprises. Source: the author proposed. Figure 2. the research process for the factors affecting the management of human resources of enterprises. Source: author’s process. 14 nga Phan thi hang the results presented in Figure 8 indicate that the evaluation of the magnitude of variables influencing human resource management comprises the following components: cMin/DF = 3.485 (less than 5.0), gFi = 0.933 (more than 0.8), tli = 0.969 (greater than 0.9), cFi = 0.975 (greater than 0.9), and RMsea = 0.055 (less than 0.08). the seM evaluation revealed that all five factors significantly influenced the management of human resources at a significance level of 1%. 4.4. Testing Bootstrap 20.000 sample for factors affecting management of human resources table 8 demonstrates that the Bootstrap approach is implemented by taking n repeated samples. the average of n samples (20,000 samples) provides an estimate that is typically in close proximity to the population estimate. the author’s belief in the model estimates increases as the discrepancy between the mean calculated by Bootstrap and the model estimate using the original sample decreases. 5. Conclusions and policy implications 5.1. Conclusions industry 4.0 is vigorously promoting the transition from a resource-based economy to a knowledge-based one with the internet and digital pillars as the main pillars. the digital economy was born to replace the traditional economy. therefore, there is a need to change the labor structure in which digital human resources have focused and developed. the article clarifies digital human resources’ concept, content, and characteristics. the results showed that five components are significant to managing enterprises’ Figure 8. testing factors affecting management of human resources. Source: Data processed from sPss 20.0 and amos. Table 8. testing Bootstrap 20.000 sample for factors affecting management of human resources. Parameter se se-se Mean Bias se-Bias sB <--- tD 0.051 0.000 0.121 0.002 0.001 RL <--- tD 0.038 0.000 0.164 −0.002 0.000 HR <--- RL 0.025 0.000 0.102 0.002 0.000 HR <--- We 0.048 0.000 0.141 0.003 0.001 HR <--- tD 0.038 0.000 0.539 0.000 0.000 HR <--- sB 0.036 0.000 0.127 −0.005 0.000 HR <--- eW 0.036 0.000 0.210 0.002 0.000 Source: Data processed from sPss 20.0 and amos. cOgent BUsiness & ManageMent 15 human resources in Vietnam based on surveying 850 managers to test the seM model. Five factors affect the management of human resources with a significance level of 1.0 percent. however, to own digital human resources, it is necessary to implement a triangle of digital control of human resources, including a critical role in leading the enterprises in terms of mechanisms, policies, and environment. the result of digital technology is the central factor of enterprises in investment, transformation, and adaptation to digital technology in all production, business, and service activities. training institutions and each human resource must be proactive, integrated, capable of mastering digital technologies, and quickly adapt to technology changes. thus, to develop human resources in the context of integration, digital economy, and sustainable development, it is necessary to maximize resources to create motivation for the development and overcome weaknesses in factors affecting the specific human resources of the enterprise. 5.2. Policy implications human resources increasingly occupy a more important position in every small and medium enterprise. human resource development for sMes can only be successful through reasonable corporate policies. in Vietnam, in recent times, the issue of human resource development policies for sMes has always been the focus, and a series of human resource development policies for sMes need to be introduced with the goal of solutions and roadmaps. appropriate development aims to build human resources for sMes with reasonable structure, quantity, and quality, sufficient capacity, professional qualifications, and ethical qualities to meet the requirements and tasks of industrialization, modernizing the country, and integrating and developing the international economy. therefore, the author had the following policy recommendations mentioned below. 1. improve (tD): training and development, this factor has an average value of 3.0863; the standardized estimate is 0.537 with sig. 0.0001 (tables 3 and 7). the research result showed that training and development affect the management of human resources with a significance of 1%, which is the same result as that of many studies (carnevale & hatak, 2020; Pakdel, 2016). the training and management of human resources is an essential task because it contributes to its development. however, enterprises must find the proper training and management of the human resources process. On-the- job training is the direct training and management of human resources in the workplace. learners will absorb the knowledge and practical experience imparted and guided by longtime staff. the advantage of this training solution is that the training content is attached to the job, so students can easily absorb and master the necessary skills for the job. enterprises can also save maximum training costs. internship: this is a popular method of training and developing human resources that almost every business applies. the internship method is usually for fresh graduates who do not have much experience. When participating in an internship in an enterprise, interns will have a more practical understanding of the job and accumulate the necessary skills. enterprises organize training classes: human resource training and development courses held internally by businesses for their employees are a common form of training that almost every industry applies. training content is usually specialized knowledge for the job. each enterprise builds a process of training and developing human resources following specific characteristics. lecturers can be senior leaders of enterprises or lecturers from universities invited by enterprises. Online training is considered the most optimal human resource training and development solution in the current digital technology era. With just a smartphone, laptop, or ipad, learners can join the course of their business anytime, anywhere. the online training model brings many benefits to companies and employees. enterprises set up a human resource apparatus adapted to high technology. enterprises must set up a human resource apparatus, especially the management level, to adapt to the high-tech era. thus, the internal communication of enterprises needs to focus on so that employees understand and master the skills to meet the high requirements of the 4.0 period. 2. improve (eW): evaluation of work results, this factor has an average value of 3.3824; the standardized estimate is 0.210 with sig. 0.0001 (tables 5 and 7). the research result showed that evaluation of work results affects the management of human resources with a significance of 1%, which is the same result as that of many studies (adikaram etal., 2021; Mohanad & ibrahim, 2019; Zeqir & Ymer, 16 nga Phan thi hang 2019). effective performance evaluation method is one of the critical factors to help enterprises encourage and motivate their employees and improve the working quality of the workforce. it is not only the best way to know the performance of employees, but also a way to collect feedback on the activities in the company evaluate whether employees are working actively towards the goal themselves and what the business can do to increase employee engagement. Management by objectives (MBO): this is the simplest performance appraisal method. in this method, managers will set expected target metrics then track and compare employee results. sales quotas are a form of MBO. this method is excellent because it is easy to follow and can identify cause-and-effect relationships in employee performance. self-assessment is an important activity to make your performance appraisal process more effective. When done correctly, it can provide many essential inputs to the organization. this performance appraisal method offers an opportunity for employees to take an active role in their evaluation process. thus, employees did give a voice instead of simply being the recipients of management feedback. When self-assessment did develop as an integral part of the evaluation process, it encouraged employees to continuously evaluate themselves throughout the year resulting in the maximum achievement of company goals. check job performance. the suitable form of testing enhances consolidation and allows everyone to operate new knowledge. Written or multiple-choice tests help employees reinforce job theories while testing practical skills that demonstrate employee proficiency. the person who assesses this test must be an expert in these jobs and skilled enough to communicate the meaning of the results to upper management. collecting data and seeing the right metrics allows you to continuously improve your employee performance review processes and ensure employees can stay on course. enterprises can use six methods combined with management software to design a solid set of assessment and management tools for you. 3. improve (sB): salary, bonus, and welfare, this factor has an average value of 3.0514; the standardized estimate is 0.129 with sig. 0.0001 (tables 4 and 7). the research result showed that salary, bonus, and welfare affect the management of human resources with a significance of 1%, which is the same result as that of many studies (Butterick & charlwood, 2021; sanyal & hisam, 2018). employees had attracted by the salary and benefits policies they receive when working as a worthy reward for their efforts. the more will make them happier. Particularly for business administrators, the budget for these two items is considered an investment, which, once invested, must be profitable. so, investing in salary or benefits for employees. salary is widely regarded as the primary determinant for workers when selecting a job. if employee perks are seen as an indicator of a reputable organization, remuneration is regarded as an indicator of an individual’s worth in the workforce, as it is often based on their abilities. allocating funds towards compensation for roles, particularly those requiring highly skilled personnel, is seen an essential investment for the firm to acquire exceptional individuals who can enhance its operations. employee wellbeing is a primary issue for employees and serves as a powerful incentive to recruit talented individuals to the company. certain anticipated discretionary employee perks, such as additional paid and unpaid time off, profit-based dividend sharing, top-tier medical insurance coverage, food allowances, and the provision of state-of-the-art work equipment, have progressively become customary and nearly essential advantages for highly skilled employees. they were building a business system with the distance coefficient: a group of titles according to the criteria of jobs with the exact nature and job qualifications and responsibilities. therefore, it is necessary to prepare a specific job description about training qualifications, professional knowledge, experience, skills, attitudes, etc. On that basis, the business owner will determine the number of points corresponding to each title and position. and importantly, the distance coefficient between tags must be appropriate. enterprises observe the nature of work, and each employee must apply the proper forms of payment. For example, administrative positions paid a fixed salary; positions that directly generated revenue delivered flat wages. Businesses use a combination of these two types of payment methods. enterprises should specify an appropriate rate or fixed price to create conditions and ensure income for employees. in addition, they were achieving different job completion conditions with additional bonus rates to maximize the capacity of employees. 4. improve (Rl): recruitment and selection of labor, this factor has an average value of 3.0650; the standardized estimate is 0.105 with sig. 0.0001 (tables 2 and 7). the research result showed that cOgent BUsiness & ManageMent 17 recruitment and selection of labor affect the management of human resources with a significance of 1%, which is the same result as that of many studies (lim et al., 2020; Zeqir & Ymer, 2019). in the current highly competitive job market, the task of locating competent people who fulfill the desired standards is a multifaceted challenge, requiring significant investment of time and resources for organizations. nevertheless, there exist strategies to assist companies in attaining their objectives while simultaneously reducing costs and saving time. create an elaborate and comprehensive recruitment procedure: the recruiting process will have a substantial impact on the efficiency of the enterprise’s human resources since it is a critical stage in identifying and selecting highly skilled individuals who are well-suited for the company’s employment positions. Developing a meticulous and comprehensive recruitment procedure can enable you to prevent errors while hiring staff. the recruitment process of organizations and enterprises can vary significantly, contingent upon the organizational structure and regulatory framework of the recruiting entity. however, the fundamental aspect is that recruiters must consistently and thoroughly plan for every phase of the recruiting process, with the objective of efficiently evaluating and identifying highly qualified individuals - through the use of concise and precise job descriptions. the job description is a crucial component of the job posting. an effective job description should include the assigned duties for each position, the requisite professional abilities, the desired personality traits, and the essential attributes necessary for successfully fulfilling the job responsibilities and working circumstances. Writing a vague and ambiguous description might result in the candidate lacking comprehension of the specific requirements for the job you are seeking to fill. the more the clarity and level of detail in the report, the higher the likelihood of successfully recruiting competent staff and effectively filtering out inappropriate individuals. internet-based hiring process: the advancement of the internet and information technology enables employers to access a rapid and extensive channel of information. the majority of employers concur that internet recruiting is the swiftest and most cost-effective method for selecting workers for their organization. Recruitment websites provide the option for users to actively select from candidate profiles. conduct the interview list in a more efficient manner by utilizing online platforms. this aspect facilitates cost and labor efficiency in the recruiting process. 5. improve (We): working environment, this factor has an average value of 2.3833; the standardized estimate is 0.092 with sig. 0.008 (tables 1 and 7). the research result showed that working environment affect the management of human resources with a significance of 1%, which is the same result as that of many studies (anlesinya & susomrith, 2020; collings et al., 2021). each employee consistently seeks and desires to encounter the optimal working atmosphere within the organization. the working environment refers to the physical and non-physical factors that affect the organization and functioning of the operational system within a company. excellent facility: the primary consideration that firms must not overlook is the establishment of appropriate infrastructure. Facilities, in essence, refer to office equipment that is fully equipped to satisfy the functional requirements of employees, including computers, printers, fax machines, and so on. indispensable for any firm, regardless of the industry. in addition, an optimal working environment fosters a positive work ethic among employees. subsequently, individuals have the liberty to generate, demonstrate their abilities, and fulfill the expectations of supervisors. interactions between leaders and employees: it enhances the rapport between leaders and employees. an effective leader is meticulous and motivates people to meet deadlines, resulting in enhanced productivity. the leader must possess the ability to comprehend the desires of their subordinates, swiftly assume the appropriate course of action, and guide the implementation of the correct strategy. employees are required to demonstrate both respect and devotion towards the company. establishing and fostering a strong connection is crucial for the development of this relationship. a strong correlation exists between the proximity of the connection between leaders and employees and the level of job excellence. the firm will transform into an organization characterized by a positive and cohesive culture, establishing a strong basis for achieving success. create a collaborative and inclusive work environment: cultivating a tranquil ambiance is crucial in the contemporary, constantly changing culture. a conducive work atmosphere allows people to openly express their personal opinions, so enabling them to showcase their full potential. every individual can express their viewpoint in a sincere manner. an open working environment is a receptive and adaptable space that fosters organizational growth by 18 nga Phan thi hang embracing change. creating a pleasant work environment will motivate employees to generate more value for the firm. Following the epidemic season, the shift towards working online in a digital environment is an unavoidable and prevailing tendency. When the covid-19 pandemic is spreading rapidly with complicated developments, most people’s concern is the safety of themselves and their loved ones, limiting going out and limiting contact. Most businesses have built online working plans for their staff to maintain work performance. this recommendation also makes it necessary for companies to create a digital working environment, helping businesses build a more effective remote working strategy. 6. Limitations limitations of the study and directions for further research: it will contribute to businesses and serve as a premise for policymakers to have a more comprehensive vision of the context of human resources management, especially the factors that affect the management of human resources. Management of human resources of enterprises in Vietnam in the digital economy; besides the successful contributions, the study also has the following limitations: Due to restrictions of time, conditions, funding, and research capacity, this study only focuses on the scope of enterprises, in general, did not separate from state-owned or private enterprises. For this study, we only focus on analyzing 05 factors from the test results that affect enterprises’ management of human resources. however, there are still many other factors influencing the growth of enterprises. human resources, so further research is needed to supplement and perfect it. this study currently only approaches business owners, and there are many other approaches, such as the direct approach to employees or researchers who make policies for businesses to obtain information. More positive results on managing human resources are also a limitation for further research. there is the contribution of business owners, the attention and support from state management agencies, and the proposed functions policy ideas. additional research will need to add more factors affecting the management of human resources in the new period. Acknowledgments the author would like to thank managers and the Rector of the University of Finance - Marketing (UFM), hcMc, Vietnam. Disclosure statement no potential conflict of interest was reported by the author. Funding this work was supported by the University of Finance - Marketing (UFM), grant no. 2217/QĐ-ĐhtcM, Date 03-12- 2021, Vietnam. About the author Nga Phan Thi Hang is an associate Professor, Dean of science Management Department, University of Finance - Marketing (UFM), Vietnam. i graduated Doctor in Finance and Banking from the Banking University of ho chi Minh city. i am teaching banking financial subjects and have published many international papers on credit risk management. i also serve as a reviewer for several accredited and highly-ranked international journals. Moreover, i focus more intensely on improving the competitiveness of tourism enterprises and the management of human resources. email: phannga@ ufm.edu.vn cOgent BUsiness & ManageMent 19 ORCID nga Phan thi hang http://orcid.org/0000-0003-1143-2741 References adeyi, a. O., apansile, e. K., Okere, W., & Okafor, l. i. (2018). training and development and organizational performance: standpoint from Private tertiary institutions in nigeria. 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Factors affecting enterprises’ human resource management 5-point Likert scale (1) (2) (3) (4) (5) We1: employees work professionally and seriously (1) (2) (3) (4) (5) We2: the workplace has all the necessary equipment for employees (1) (2) (3) (4) (5) We3: employees are pleasant and comfortable talking to each other to perform their jobs (1) (2) (3) (4) (5) We4: Business owners helped and supported employees with difficulties at work and were treated fairly (1) (2) (3) (4) (5) RL1: enterprises announce recruitment information widely (1) (2) (3) (4) (5) RL2: the recruitment system of the enterprise is guaranteed high science (1) (2) (3) (4) (5) RL3: a clear job description for employees and provide complete job information to employees right from the moment they had recruited (1) (2) (3) (4) (5) RL4: employees recruited entirely based on power (1) (2) (3) (4) (5) tD1: employees have many opportunities to develop and advance their work (1) (2) (3) (4) (5) tD2: employees have the opportunity to study and create at the enterprise (1) (2) (3) (4) (5) tD3: the business helps employees develop the skills to get the job done (1) (2) (3) (4) (5) tD4: Businesses encourage learning to apply to work and train the skills necessary to do the job well (1) (2) (3) (4) (5) sB1: the salary payment in the enterprise is consistent with the performance of the company’s working rate (1) (2) (3) (4) (5) sB2: the employee’s salary is commensurate with the work and duties (1) (2) (3) (4) (5) sB3: enterprises implement reward regimes and are accurate to the commitment to the employee (1) (2) (3) (4) (5) sB4: Policy on rewards and benefits clear notice to employees and reward and recognition based on enterprise results (1) (2) (3) (4) (5) eW1: evaluation criteria associated with work and results of employees (1) (2) (3) (4) (5) eW2: the enterprise has a straightforward job evaluation process for employees and is fair and objective. Based on the capacity assessment as the basis for decisions (1) (2) (3) (4) (5) eW3: the enterprise has promotions and salary increases (1) (2) (3) (4) (5) eW4: Job evaluation stimulates employees to improve their working capacity (1) (2) (3) (4) (5) HR1: the current workforce is very stable (1) (2) (3) (4) (5) HR2: Professional qualifications of employees (1) (2) (3) (4) (5) HR3: ethics and behavior of employees and ability to handle work (1) (2) (3) (4) (5) Note: a 5-point Likert scale states the level of agreement in five points. the 5-point Likert scale consists of the below points – (1) strongly Disagree; (2) Disagree; (3) neither agree nor Disagree; (4) agree; (5) strongly agree.