Navigating HR Challenges in the Happiest Nation on Earth

This year, Vanuatu proudly claimed the top spot on the Happy Planet Index for the second time since its inception in 2006, surpassing 149 other countries. This ranking reflects our nation’s commitment to well-being, sustainable living, and harmony within our communities. While Vanuatu is undeniably a place of happiness and contentment, the business sector, particularly in HR, faces ongoing challenges.

A recent Vanuatu Chamber of Commerce and Industry’s (VCCI) Private Sector Economic Update published earlier this year, and a more recent VCCI Business Sentiment survey which explores the impacts of the Air Vanuatu crisis, paint a different picture. They highlight the strain on businesses and companies (and their HR practitioners) who are working harder than ever to ensure their organisations have the skilled workforce needed to meet their goals. The demand for talent is particularly high as businesses grapple with workforce shortages, largely due to national labour migration policies.

While these policies contribute significantly to Vanuatu’s economy by bringing in remittances, they have downstream effects. Thousands of workers participate in seasonal work programs, which exacerbates shortages in key industries such as tourism and construction. The legislated two-week notice period often leaves employers with little time to find replacements, leading to disruptions and added costs for businesses that may already be understaffed.

In addition, the evolving landscape of labour laws presents further challenges. Despite efforts by Vanuatu’s Department of Labour to consolidate employment legislation, small yet impactful changes introduced via the Statute Law (Miscellaneous Provisions) Act make it difficult for employers to stay compliant. Businesses often struggle to keep up with these updates which complicates budgeting for personnel costs and maintaining legal compliance.

The rapid rise of AI tools, such as ChatGPT, has further transformed the HR landscape. While these platforms have made drafting communications and accessing data easier, their growing use in job applications has made it harder to accurately assess candidates’ true skills and experiences. As more applicants use AI to enhance their résumés and cover letters, HR professionals are facing additional challenges in shortlisting and evaluation.

To compound these difficulties, Vanuatu does not yet have a formal HR association. Although the VCCI and the Tripartite Labour Advisory Council (which includes representatives from trade unions, the Department of Labour, and the VCCI) offer excellent advocacy, there remains a gap in professional support for HR practitioners. This lack of a centralised HR network leaves professionals to navigate complex issues on their own, without the benefit of a shared knowledge base or unified voice.

However, change is on the horizon. Link Personnel Services is committed to establishing a core network of HR professionals in Vanuatu. Our vision is to foster collaboration, share best practices, and advocate for stronger HR development across the country. By building this community, we aim to enhance productivity, promote workforce sustainability, and ensure that Vanuatu remains not just the happiest nation, but also one where organisations and their employees can thrive.

We are actively seeking champions to support this initiative. If you’re passionate about HR and want to make a difference, reach out to us! Your involvement can help pave the way for a more structured and supportive HR environment in Vanuatu.

Join us as we take the next step in Vanuatu’s HR evolution—because together, we can achieve great things!