PROBLEM IDENTIFICATION
Introduction about the Company and the central problem
Founded in 2001, RSM DTL Auditing Company ranks among the top ten accounting and advisory firms in Vietnam, employing over 140 professionals who cater to mid to large public-listed, multinational, and private companies across diverse industries The firm specializes in two primary areas: Auditing and Tax Consulting Committed to being a valuable business partner, RSM DTL Auditing aims to deliver innovative, value-added solutions that contribute to the success of clients in both local and global markets.
In 2014, DTL committed to delivering professional services that align with international quality standards tailored to the Vietnamese business landscape The company prioritizes the development of a skilled workforce to enhance operational effectiveness and meet growing customer demands, while also fostering a strong organizational culture However, the implementation of these strategies has been slow, leaving employees anticipating meaningful changes.
This article examines the Tax Consulting Department, which consists of 43 employees and significantly contributes to the company's financial success, generating 70% of total revenue Supported by the Management of the Tax Department, this department is organized into eight specialized groups, each focusing on a primary business line, including tax advisory, tax compliance, and accounting services, to effectively meet diverse customer needs.
The Human Resource Department reports a significant increase in employee turnover, rising from 14.8% in 2013 to 19% in the first half of 2015 This rate exceeds the industry average of approximately 15% during the same period Notably, RSM DTL experienced a 3% increase in turnover in the first half of 2015, continuing a trend of rising turnover rates since 2013 Alarmingly, 70% of employees leaving the company are in senior positions with over three years of experience, indicating a concerning pattern that may persist in the future.
The high staff turnover rate has contributed to a noticeable decline in employee performance, as highlighted by the Managing Partner of the Tax Department The quality of work submitted to managers has fallen short of expectations, with an increase in errors during calculations and reporting Additionally, employees are showing a lack of commitment to maximizing productivity, evidenced by rising instances of tardiness, absenteeism, and poor-quality output, alongside inappropriate socializing during work hours Various factors have led to these issues, and discussions with DTL members, including Mr Le Khanh Lam, have identified critical areas needing attention, such as work quality, employee appraisal, and engagement This analysis aims to address the current challenges faced by the company.
Figure 1.1: The initial cause – effect map
Since late 2014, the company has experienced a significant increase in customer volume, leading to heightened work pressure However, the distribution of workload among teams has been uneven, with varying job complexities Despite a stable workforce, the company has struggled to quickly recruit additional staff to handle new tasks Moreover, while new clients often present complex challenges, the anticipated revenue from these accounts has not met expectations.
To attract the potential customers, the fee charge for services provided was competitive
Decreasing work quality and productivity
Unequal work sharing between groups
Lacking of attention to work
Salary/ bonus based on level of position instead of performance
The appraisal form offered essential insights into market entities, highlighting that new clients required more attention from employees, which negatively impacted work quality and productivity The Tax Partner recognized this as a critical issue that needed resolution However, addressing this problem is time-consuming and involves various factors, including human resource management, business strategies, and cost and revenue estimation, necessitating a comprehensive approach for effective resolution.
The employee appraisal process at DTL has been identified as a significant issue, as it currently relies on job position rather than individual performance Each employee in the same role has different assignments based on their capabilities and the complexity of their tasks, which the existing appraisal form fails to adequately capture To address these shortcomings, DTL is developing a new appraisal system that will include detailed assessments for each job at mid-year and a comprehensive evaluation at year-end.
The recent rise in employee disengagement is evident, with turnover rates escalating from 14.8% in 2013 to 19% in the first half of 2015, according to Human Resource Department data Additionally, the increase in late arrivals among employees highlights a concerning trend in attendance, further emphasizing the need for improved engagement strategies.
Administrative manager The enthusiasm of staff has the sign of depression
The Tax Partner noted a concerning lack of employee engagement, as many staff members, including those with less than a year of experience, frequently diverted work time for personal activities such as browsing the internet, social networking, and reading online news Instead of utilizing free time for professional development, employees neglected to stay updated on regulations and customer documents, which is critical in the ever-evolving tax advisory industry Statistics from the IT Department revealed that approximately 30% of employees spend over an hour daily on personal internet use during work hours, leading to diminished focus on primary tasks and overall work inefficiency Consequently, the quality of submissions for final review has declined, with more products missing deadlines and failing to meet expectations, highlighting significant issues with employee engagement within the company.
Based on data collected from the Company and employee interviews, the limited time, resources, and Board of Directors' acceptance highlight that low employee engagement is the most critical issue requiring immediate analysis.
Justify the existence of the problem
Understanding the concept of "employee engagement" is crucial, as it involves individuals expressing themselves cognitively, physically, and emotionally in their work roles, as highlighted by Kahn (1990).
Engagement in the workplace is driven by various job resources, including the ability to exercise job control, access to learning opportunities, availability of essential materials, involvement in decision-making, positive reinforcement, and support from colleagues.
According to the Gallup Organization, engaged employees are characterized by their passion and deep connection to their company, which drives innovation and propels the organization forward Employee engagement is defined as a psychological state where individuals feel a vested interest in the success of the company, leading them to perform at high standards that often exceed job requirements.
Schaufeli and Salanova (2012) highlight that the research community predominantly defines engagement as a positive and fulfilling state of mind related to work This definition emphasizes engagement as a beneficial psychological experience during work activities, characterized by feelings of vigor, which includes energy, and dedication, reflecting enthusiasm.
Employee engagement encompasses three key dimensions: vigor, dedication, and absorption Vigor reflects high energy levels and a strong willingness to invest effort in work, even when faced with challenges Dedication involves a deep commitment to one’s tasks, fostering feelings of significance, enthusiasm, and pride Absorption describes a state of complete concentration where individuals are so engrossed in their work that time seems to fly by, making it hard to detach from their tasks To effectively measure this multifaceted engagement, the Utrecht Work Engagement Scale (UWES) was developed, featuring a reliable nine-item questionnaire that captures these essential components of employee engagement.
The Gallup Organization's extensive research using the Q12 instrument has provided significant insights into employee engagement, defining it as "the individual's involvement and satisfaction with as well as enthusiasm for work" (Harter et al., 2009) The Q12 questionnaire identifies "actionable issues" that predict employee attitudes and measure engagement levels Gallup categorizes employees into three types: engaged, not engaged, and actively disengaged Engaged employees excel and contribute positively, while not engaged employees merely fulfill their assigned tasks without aligning with organizational goals Actively disengaged employees, on the other hand, not only underperform but also negatively impact their colleagues' motivation.
The ISA Engagement Scale, developed by Soane et al (2012), is grounded in Kahn's 1990 framework on personal engagement at work and assesses three key dimensions of work engagement: intellectual, affective, and social engagement, each represented by a 9-item index Intellectual engagement reflects the extent to which employees are cognitively immersed in their tasks and seek improvement, while affective engagement measures the positive emotions employees derive from their work Social engagement pertains to the sense of connection employees feel within their workplace and their alignment with colleagues' values Notably, the first and third dimensions align with absorption and vigor, respectively, while the second dimension introduces a previously unexamined aspect of engagement.
We developed questionnaires based on relevant theories, incorporating scales for "vigor/affective engagement," "dedication," "absorption/intellectual engagement," "social engagement," "involvement," "satisfaction," and "enthusiasm." This was achieved through the use of the Utrecht Work Engagement Scale (9 items), the ISA Engagement Scale (9 items), and 12 questions from the Gallup survey.
Please see the list of detailed scale items at Point 5.2, Chapter 5 page 57
In response to the anticipated issue, in-depth one-on-one interviews were conducted to assess employee engagement The information gathered during these discussions was treated with confidentiality Initially, ten interviewees were invited, but ultimately, eight participants agreed to share their insights, comprising one partner, one manager, and six staff members with three to six years of experience.
In a recent discussion with Ms Truc Phuong, the manager of Group Six, she emphasized the importance of her role as a leader She stated, "As the leader of my team, I serve as a source of inspiration and must ignite passion for work among my team members while also encouraging and motivating them."
Despite having ten years of managerial experience, she struggles to find enthusiasm and creativity in her work, which hinders her ability to inspire her team effectively She recognizes the need for evaluation from higher-level positions, such as Tax Partner or Managing Partner, to assess her performance and progress; however, she has yet to receive any feedback on this matter.
In an interview, Ms Thuy Ly, a consultant with over five years of experience, expressed her dissatisfaction with her current job due to several factors She reported a heavy workload that often requires her to work late, leaving her with only about twelve hours a day for work and little time to spend with her family Ms Ly stated, “I often feel so tired after a long working day and do not want to go to the company every morning.” Additionally, she highlighted issues with her laptop, which is covered in plaster and struggles to process data efficiently Despite bringing these concerns to her leader and the IT department, she noted that no changes have been made.
Three out of six colleagues reported a significant decline in their work enthusiasm and satisfaction, often feeling bored with their current roles Ms Kieu Duong, a senior staff member with three years of experience, expressed her exhaustion, stating, “I feel so tired and really I do not want to go to work I just want to quit my job now.” This sentiment was echoed by other team members who struggled to find motivation and considered seeking new employment They prioritized completing tasks out of obligation rather than passion One staff member even submitted their resume on recruitment websites in search of new opportunities Ms Giang Huong, who has been with RSM for nearly three years, shared her perspective on the situation.
In my group, the lack of encouragement from our leader has been evident, as I receive minimal support despite handling numerous tasks My contributions often go unrecognized, with no acknowledgment from my manager over the past six months, even after delivering strong results Additionally, I frequently find myself working late, highlighting the unequal distribution of workload within the team These factors collectively indicate a downward trend in our engagement.
Please see the interview questions and interview transcript for this part at Point 5.3 and 5.4 Chapter 5 Page 59, 60
A questionnaire consisting of 20 questions was administered to 43 employees at the Tax Department of RSM DTL Company to assess the prevalence of low employee engagement, yielding a response rate of approximately 86% with 37 surveys returned The respondents utilized a 5-point scale, ranging from "strongly disagree" to "strongly agree," to express their degree of agreement or disagreement with each item The mean score of 2.3 indicated a lower level of employee engagement at RSM DTL compared to the average rate of 2.5, suggesting room for improvement in employee engagement.
In addition, the above questionnaire was also sent to the Tax Department ofGrant
Justify the importance of the problem
Engaged employees tend to exhibit a stronger connection to their organization and are less likely to consider leaving, as highlighted by Schaufeli and Bakker (2004) Turnover intention, defined as an individual's subjective assessment of the likelihood of quitting their job in the near future, plays a crucial role in employee retention (Carmeli, 2006).
Employee turnover intention is a strong indicator of future behaviors, as highlighted by Carmeli (2006) Research shows that engagement plays a crucial role in influencing various outcomes, including employee commitment, health, turnover intentions, and overall performance.
The annual turnover rate at RSM DTL has shown a consistent upward trend from 2013 to the present, starting at 14.8% in 2013, increasing to 16% in 2014, and reaching 19% in 2015 Employees who left the company typically had between three to eight years of experience Recent interviews with two departing staff members revealed that a significant factor in their decision to resign was a lack of engagement in their work.
Low employee engagement can significantly hinder performance, as highlighted by Maslach (2001) Research by Anitha (2014) emphasizes that fostering employee engagement is crucial for enhancing performance, creating a positive feedback loop Furthermore, Mone and London (2010) suggest that effective performance management strategies can help organizations cultivate and maintain high employee engagement, ultimately leading to improved performance outcomes.
“It is often recognized that engagement is predictive of employee outcomes, success, and financial performance of organizations” (Macey, 2009; Saks, 2006)
The decline in engagement among assistants and seniors has resulted in output that frequently falls short of leaders' expectations, as highlighted by the Manager of Group Six She noted a steady decrease in work quality, with staff often submitting results that do not meet her requirements, necessitating additional time for her to review and finalize projects before client delivery Furthermore, employees are slow to respond to work requests and fail to complete assignments on time, leading to decreased productivity When faced with new customer requests for one-off services, such as accounting policy checks or tax compliance guidance, staff exhibit signs of unhappiness and reluctance to take on new tasks, demonstrating a lack of flexibility in addressing unexpected challenges.
Mr Le Khanh Lam, the Managing Partner of the Tax Department, has observed a decline in work quality, noting that the effectiveness of eight groups is inconsistent He pointed out an increase in final products that fail to meet quality standards and deadlines Although the company typically receives few client complaints, recent feedback has highlighted issues related to missed report deadlines and inaccuracies in calculations.
There is an affirmative relationship between employee engagement and affective emotional (Richardsen, 2006; Hakanen, 2006; Saks, 2006; Demerouti, 2001; Maslach, 2001; & Brown, 1996)
Research by Schaufeli (2007) indicates that higher levels of work engagement lead to increased organizational commitment While engagement reflects an employee's involvement and enthusiasm, organizational commitment pertains to their attitude and emotional attachment to the organization (Saks, 2006) Schaufeli and Bakker (2004) further emphasize that engaged employees demonstrate a stronger connection to their organization.
Ms Hoa, a tax consulting senior with over three years of experience, expressed her dissatisfaction with her current job, stating that she never envisioned a long-term future there She felt a lack of support from both her direct manager and team members, leading to feelings of emotional detachment and disconnection from the enterprise.
Early warning signs of employee disengagement include absenteeism, tardiness, and behaviors reflecting withdrawal or heightened negativity (Branham, 2005) Research by Hoxsey (2010) indicates a negative correlation between employee engagement and absenteeism; as engagement levels drop, absenteeism tends to rise.
Recent data from the HR Department indicates a significant rise in the number of employees arriving late to work, with instances exceeding five times per month reaching 50%, 60%, and 76% in April, May, and June 2015, respectively Despite weekly email reminders from the HR Officer emphasizing the importance of punctuality, the trend of tardiness continues to escalate.
Please see the detailed scale items and the interview transcript of this part at Point 5.7 and 5.8 Chapter 5 Page 65, 67.
CAUSE VALIDATION
Potential causes of the problem
Studies by Miles (2001); Harter (2002); Holbeche (2003); May (2004) and Rich (2010) show that employee engagement is the result of various aspects of the workplace Deci
In 1987, it was established that effective management creates a supportive work environment by prioritizing employee needs and feelings, offering positive feedback, and encouraging open communication This nurturing atmosphere fosters skill development and problem-solving, making a meaningful workplace crucial for promoting employee engagement and enhancing interpersonal harmony.
The work environment can be measured via the following scale items: a) Job aid
A job aid serves as a valuable resource in a self-service workplace, empowering employees to learn independently on the job (Van Dam, 2005) It is a written tool that offers guidance to employees within an organization, exemplified by instructions for completing an appraisal form.
A job aid serves as a valuable resource for employees, providing clear directions and procedures to enhance their performance It outlines a sequence of actions, detailing the necessary steps for specific tasks By defining the actions, order, and expected results, a well-structured job aid effectively guides employees through their responsibilities, ensuring consistency and efficiency in the workplace.
A supervisor, often regarded as an experienced leader and problem solver, serves as a role model at the initial level of organizational management (Adair, 1988; Nijman, 2004) Their primary responsibilities include guiding subordinates in group tasks and overseeing the overall functioning of teams within the organization, while also ensuring a conducive physical work environment.
The physical work environment significantly influences an individual's compatibility with the workplace, as highlighted by Amir (2010) Key elements of this environment include the office layout and overall comfort Amir (2010) emphasizes that a well-organized physical workplace is essential for achieving organizational goals.
Effective leadership is a complex and multi-faceted concept that includes self-awareness, balanced information processing, relational transparency, and strong moral standards Research indicates that inspiring leaders naturally foster employee engagement, as they communicate the significance of their team members' contributions to overall business success When employees perceive their work as meaningful, it enhances their interest and commitment Furthermore, authentic and supportive leadership is believed to significantly boost employee engagement by increasing their involvement, job satisfaction, and enthusiasm for their work.
2.1.3 Team and co-worker relationship
Kahn (1990) discovered that fostering supportive and trusting relationships within teams enhances employee engagement Creating an open and nurturing work environment is crucial for employees to feel safe and fully commit to their responsibilities.
Taylor (1990) emphasized the importance of relatedness needs in individuals, suggesting that positive interpersonal interactions with co-workers enhance the meaning they derive from their work Consequently, employees who foster strong relationships with their colleagues are likely to experience higher levels of work engagement.
To measure the level of co-worker relationship, Sias (2008) used the scale items including trust, intimacy, emotional support, and self-disclosure
Employee training and development programs significantly enhance confidence, leading to increased job engagement Improved service accuracy as a result of training positively influences overall service performance and boosts employee engagement (Paradise, 2008).
Alderfer (1972) proposed that providing employees with growth opportunities acts as a form of reward, highlighting that fulfilling growth needs relies on individuals realizing their full potential Therefore, management should prioritize career advancement through training and development, as this fosters timely growth opportunities and enhances employee engagement.
The training program involves several key steps, including setting clear objectives, choosing a qualified trainer, and developing comprehensive lesson plans It also encompasses selecting appropriate methods and techniques, preparing necessary materials, scheduling the training sessions, and conducting a thorough training needs analysis (Adair, 1988; Elangovan, 1999).
Organizational career development, as defined by King (2005), refers to the opportunities offered by an organization to enhance an individual's career prospects, including challenging assignments, career counseling, and access to vital information Supporting employees in their career growth is essential, as it helps retain high-potential staff Research indicates that organizations provide various activities to foster career development, such as engaging work assignments, new learning opportunities (Kinnie N, 2005), career counseling (Leung, 2002), and access to information about the organization and industry (Gubbins, 2005).
Attractive compensation comprises a combination of pay, bonuses, other financial rewards as well as non-financial rewards like extra holiday and voucher schemes
A study by Saks (2006) found that rewards play a crucial role in fostering employee engagement The research indicated that when employees are recognized and rewarded by their organization, they are more likely to demonstrate increased levels of engagement in their work.
Kahn (1990) highlighted that an employee's engagement level is influenced by their perceptions of the benefits they receive Consequently, it is not merely the quantity or type of rewards that matters, but rather how employees perceive these rewards, which ultimately shapes their job satisfaction and engagement This underscores the significance of extrinsic rewards in fostering a motivated workforce.
Extrinsic rewards, primarily financial in nature, include pay raises, bonuses, and benefits provided to employees, and are considered "extrinsic" because they are controlled by external factors rather than the work itself In contrast, intrinsic rewards are psychological benefits derived from meaningful work and a sense of accomplishment While extrinsic rewards are important, they tend to have a more significant impact in organizations characterized by routine and bureaucratic structures.
According to Thomas (2009), there are four types of intrinsic rewards comprising of:
Cause justification
The potential causes for engagement issues at RSM DTL Auditing were analyzed through in-depth interviews with five key personnel, including the Deputy General Director of the Tax Department, the HR Director, a Group Leader, and two Team Leaders Each interviewee was briefed on the definitions and measurement scales to ensure clarity and relevance in their responses Selected for their extensive experience and understanding of the company's situation, these respondents provided valuable insights while maintaining confidentiality The findings, detailed in Table 5.9.2 of Chapter 5, indicate a strong connection between the training program, physical work environment, reward system, and leadership with employee engagement levels Conversely, factors such as team relationships, career development, and company policies were deemed less significant in contributing to the current low engagement levels at RSM DTL, with interviewees suggesting no clear relationship between these elements and the central issue.
The quality of the physical work environment significantly influences employee engagement, as revealed by interview results Participants overwhelmingly agreed that employees who are highly satisfied with their workplace tend to exhibit higher levels of engagement.
Most individuals spend about fifty percent of their lives in indoor environments, which significantly impact their mental well-being, actions, and productivity (Sundstrom, 1994) A conducive workplace environment is linked to enhanced employee outcomes and productivity, as comfort at work, influenced by physical conditions, is crucial for measuring productivity (Peach, 2006) Organizations are increasingly investing in innovative office designs to boost employee engagement and attract talent Research indicates that the physical layout of workspaces and effective management practices are vital for improving productivity and overall organizational performance (Uzee, 1999; Leaman and Bordass, 1993) A study by ASID (1999) also highlighted that workplace design is among the top three factors affecting performance Employee experiences, like Ms Thuy Ly's frustrations with inadequate IT support and uncomfortable climate control, exemplify how poor workplace conditions can disrupt productivity and lead to missed deadlines Ensuring a comfortable temperature and providing clean air are essential for maintaining focus and efficiency at work.
As mentioned at Point 3.1 above, the work environment can be measured from three (03) dimensions including physical work environment, job aid and supervisor supports
The interview results revealed that the physical work environment significantly impacts employee engagement at RSM DTL, while the factors of job aid and supervisor support do not play a crucial role in influencing engagement levels.
The interview revealed that the training program significantly contributes to the low level of engagement at RSM DTL Auditing Company Research by Sajuyigbe (2012) indicates that training and development enhance employee engagement, while Grund (2001) supports this by stating that training improves employee performance, leading to increased productivity, higher retention rates, and elevated levels of engagement.
At RSM DTL, the Manager prioritizes employee skill development through training; however, there are significant issues with the current procedures Ms Thuy highlighted that the training schedule fails to align with employee demands and working hours.
The training program faced significant challenges as it coincided with employees' business trips, leading to frequent absences The Director appointed someone to oversee the training without considering staff schedules, resulting in complaints about participation Additionally, the training content was overly general and did not align with the specific needs of the employees According to Ms Phuong, while the program emphasized technical knowledge, it lacked depth, failing to equip staff with the necessary skills to address complex customer cases Therefore, the training subjects must be tailored to meet the actual needs of the team.
Management and employees often overlook the importance of timely training materials, which are frequently distributed too late for adequate preparation Additionally, the training programs tend to focus primarily on hard skills, neglecting essential soft skills such as communication, teamwork, interpersonal relationships, and presentation abilities To foster comprehensive human resource development, the company should reassess its training procedures and establish a professional training program, adhering to the principle of "First who, then what," as highlighted by Ms Kim Ngan.
All participants in our discussion unanimously agreed that rewards significantly influence employee engagement levels Beyond work characteristics, environment, and career progression, employees prioritize salary, bonuses, and reward policies Rewards represent the comprehensive value proposition that employers provide, encompassing compensation (including base pay, short-term, and long-term incentives) and benefits (such as health, retirement, and work/life balance) When evaluating new opportunities, employees carefully consider the total rewards offered Moreover, rewards can be categorized into extrinsic and intrinsic types, with extrinsic rewards being tangible, primarily financial incentives like pay raises, bonuses, and benefits.
For the current situation of RSM DTL, the salary and bonus are calculated based on the level of position instead of the performance Understanding clearly about that, Ms
Phuong highlighted that the current method of estimating salaries and bonuses could diminish employee motivation, as it creates a perception that there is no distinction in compensation between high-performing and average employees This leads to a mindset focused solely on meeting basic requirements Additionally, the management's lack of attention to intrinsic rewards significantly contributes to low employee engagement When competitors offer higher salaries, bonuses, and appealing non-financial benefits, the likelihood of employee turnover increases.
Leadership behaviors significantly influence workforce productivity and employee vitality, as highlighted by Kaplan and Kaiser (2009) Interview findings reveal that four out of five participants emphasized the connection between leadership and employee engagement Mr Khanh Lam suggests that RSM DTL should focus on enhancing the leadership skills of group and team leaders At DTL Company, group leaders possess decision-making authority and bear responsibility, yet their authoritarian approach to task delegation limits subordinates' understanding of group objectives, leading to a lack of cohesion and performance Furthermore, inadequate communication between leaders and subordinates, stemming from a lack of team meetings, exacerbates the issue Leaders' exclusive decision-making role stifles subordinates' initiative, fostering a culture of dependency and submission, as noted by Mr Khanh Lam.
ALTERNATIVE ANALYSIS and ALTERNATIVE CHOICE
Training program
Developing an effective training procedure is essential for enhancing employees' understanding and skill application (Muhammad, 2012) Training is a deliberate activity aimed at improving individual task proficiency, and it positively impacts employee engagement levels (Alfes, 2013) Furthermore, training not only boosts employee performance but also fosters motivation and strengthens their relationship with the organization (Muhammad, 2012).
Training is defined as the systematic development of the knowledge, skills, and attitudes necessary for effective job performance (Bakare, 2012) This essential activity occurs across various sectors, including industry, commerce, government, healthcare, and the military Within organizations, training is implemented at all personnel levels, catering to a diverse range of trainees differing in age, work experience, disability, educational background, ethnic origin, and skill level.
In light of the Company's current situation, the proposed training procedure, based on Furjanic's 2000 study, involves four key steps: assessing training needs, designing a training program, delivering the training, and evaluating its effectiveness.
The first stage – determine the training needs, how much and what kind – will generally depend on the task to be performed
Analyzing training needs is essential for organizations to effectively invest in their workforce, as highlighted by Baldwin (1994) Similarly, Bee (2003) emphasized that aligning training solutions with business needs is crucial for addressing performance gaps.
Research highlights that training needs analysis should prioritize business requirements through effective communication However, individuals may have their own aspirations for acquiring different knowledge and skills that differ from organizational mandates It is important to address both organizational and personal development needs for a comprehensive training approach.
The second stage of training process is the training design
Training design involves creating a structured program that includes defining learning objectives and developing relevant content areas To effectively design a training program, it is crucial to gather accurate information about the job, which can be achieved through job analysis This systematic process identifies essential tasks, the necessary knowledge, skills, abilities, and other characteristics required for job performance, as well as the job's context and environment By analyzing job competencies, organizations can enhance their competitive advantage and improve overall performance through unified HR practices, such as targeted training programs.
Learning objectives are essential for effective training design, serving as guiding tools that outline the necessary content and procedures for successful instruction They assist in managing the instructional process and in developing assessment methods to evaluate the effectiveness of the training By clearly defining the topic and content, learning objectives also shape the learning and teaching processes involved.
Delineate what trainees are expected to know when they begin the training
Specify the nature and quantity of new information to be provided by the training program
Specify the desired results (the behavior that is to occur once training has been completed successfully)
Indicate the time and conditions needed to carry out the training program and implement the behavioral changes
To effectively measure behavioral change, it is essential to outline the specific conditions under which the outcomes will be evaluated Additionally, a clear statement regarding the minimum acceptable performance must be established, detailing the expected quality and speed of task execution This structured approach ensures accurate assessment and accountability in tracking progress.
Include caveats, restrictions, and limitations related to any of the above
An effective training objective will ensure that trainees enhance their skills through the coordination of cognitive processes and physical activities Additionally, it will clarify that the training aims to equip trainees with the knowledge or understanding of specific concepts By the end of the session, trainees will be able to identify, describe, recognize, or define these key concepts.
The third stage is training delivery
Choosing and implementing an effective training program requires careful consideration of the company's specific circumstances Training methods can be categorized into on-the-job and off-the-job approaches On-the-job training is particularly beneficial when supervisors or experienced instructors guide employees within the actual work environment In contrast, off-the-job training—such as lectures, simulations, and case studies—allows for skill development without disrupting daily operations.
The last stage is traning evaluation/ feedback
Trainees require constructive feedback to understand their progress and performance This feedback can range from simple explanations of correct or incorrect answers to in-depth discussions about their overall performance and test results.
Timely feedback is crucial, as it significantly enhances its value and effectiveness Providing feedback early helps prevent a decline in self-confidence, which in turn maintains motivation.
Feedback to trainers answers the following questions:
Are trainees receiving and understanding the information?
Do trainees have doubts or questions?
Are all trainees paying attention?
Would trainees benefit by using more techniques during this session?
Two-way communication is critical to feedback‟s effectiveness
For the cases of RSM DTL, the neccessary actions should be taken for the year 2016 as follows:
Step 1: The training department should pay attention to analyze the training needs of both employees and the managers‟ requirement by discussing with the Management (i.e The Tax Partner, Directors, Managers and the Group leaders) and collecting the information from employees through email, survey or interview After that, the data will be summarized and arranged orderly It can be take around one and a half (1.5) months
Step 2: Making the training design including defining the topic, the content, materials, schedule It can be take another two and a half (2.5) months
The training program will be tailored based on the results of a training needs analysis, ensuring it meets the requirements of both employers and employees Currently, the Tax Department's training offerings are deficient in essential soft skills development, including effective communication, negotiation, problem-solving, and risk management skills Addressing these gaps is crucial for enhancing staff competencies and overall performance.
The training program primarily emphasizes technical knowledge in tax and accounting, neglecting the essential balance of both soft and hard skills necessary for holistic staff development.
Step 3: Training delivery will begin from August 2016 to December 2016 after peak season – the specific characteristic of Audit firm with two topics per months and will be on working days
Step 4: Training evaluation/ feedback will be performed after each couse
The total budget of training program for 43 employees can be roughly VND 350 million per year
Training cost estimation for the year 2016 is as follow:
No Item Cost/ unit No of attendances
Investigation fee (finding the training needs, building the contents, preparing the materials, etc.)
1 ACCA (annual fee, exam fee, tuition fee) 25,000,000 5 125,000,000
Internal (tuition fee and materials) 40,000,000
1 Special knowledge (tax, accounting, finance, etc.) 1,000,000 20-30 20,000,000
Soft skills (e.g communication skills, presentation skill, writing skills, time management skills, negotiation skills, etc.)
Figure 3.1: Estimated cost for training strategy
The benefits of this strategy are estimated as follows:
Increasing the employees‟ knowledge as well as the qualification
Increasing efficiencies in processes, innovation in strategies and output
Increasing the contribution to the business and building the self-esteem
Increased employee motivation and reducing employee turnover
Improving physical work environment
HR consulting firms and academic researchers offer various interpretations of employee engagement, highlighting its significance in fostering strong connections between employees, their managers, and the organization They agree that an engaging work environment cultivates a positive attitude towards work, motivating employees to perform at high quality and contribute effectively to their teams.
Research indicates that enhancing employee engagement and creating a supportive work environment can greatly boost a company's success (Harter, 2002) Engaged employees not only fulfill their job responsibilities but also adapt their roles to align with the evolving workplace demands (Bakker, 2010).
(2006) suggest that the changing workplace environment brings changes in the relationship between workers and their employers and the level of employee engagement.
Creating a comfortable work environment is essential for employee well-being, with optimal air temperatures ranging from 20 to 26 degrees Celsius for sedentary tasks Extreme temperatures can lead to fatigue and health issues, influenced by factors such as humidity, clothing, and physical activity levels Employees engaged in physical work typically prefer cooler conditions Maintaining thermal comfort can be achieved through various methods, including air conditioning, fans, open windows, and managing sunlight exposure, tailored to the specific working environment and seasonal weather.
At RSM DTL, the hot environment frequently leads to discomfort among employees To address this issue, two effective solutions can be implemented: enhancing air circulation with fans and ensuring proper maintenance of the air conditioning units.
To enhance workplace safety and comfort, it is advisable to implement additional control measures alongside primary strategies These include reducing the work pace when feasible, ensuring a steady supply of cool and high-quality drinking water, and creating a designated area for employees to take restorative breaks.
An adequate supply of clean and higher quality drinking water must be provided free of charge for staff at all times
To enhance employee performance and achieve organizational goals, it is essential to provide the right materials, equipment, and managerial support Employees require flexible tools that empower them in their roles However, many staff members face challenges due to slow laptops, which hinder productivity and result in wasted time.
Currently, the Company lacks a designated meal room for employees during lunchtime It is essential to establish a dedicated space that offers reasonable shelter and comfort for staff to enjoy their meals during work hours This meal room should be specifically set apart for dining, equipped with tables, chairs, and a suitable method for boiling water Additionally, all facilities must be well-maintained, kept clean, and not utilized for storing materials or goods.
To enhance the quality of the physical work environment, the company should prioritize upgrading work materials for staff by maintaining and replacing old laptops, sourcing higher quality drinking water for employees, and ensuring the air-conditioning system is well-maintained or replaced to maintain a comfortable working temperature.
In the coming year, RSM DTL plans to invest in establishing a lunchroom equipped with essential amenities, including a microwave oven, coffee makers, and a refrigerator The project is expected to take three to five months to complete, with an estimated cost of VND.
440,700,000 The cost to improve the physical working environment is estimated below:
No Item Cost/ unit Number Total estimated cost (VND)
1.1 Initial deposit (03 months) 400000/m2 x 25m2 3 30,000,000 1.2 Renting fee (12 months) 400000/m2 x 25m2 12 120,000,000
2.5 Washing system (sink, water system, etc.) 20,000,000 1 20,000,000
Vinh Hao (12 months) 35,000/bottle-20 liters
Figure 3.2: The estimated cost for improving physical work environment strategy
The estimated benefits are as follows:
Investing in employee well-being significantly enhances job satisfaction by creating a more convenient work environment When employees recognize that the company prioritizes their welfare, they are more likely to engage deeply with their work and foster stronger relationships with their colleagues.
Enhancing employee engagement can significantly lower turnover rates by 5% to 7%, while simultaneously boosting productivity and revenue by 10% compared to 2015 This increase in engagement not only fosters a more committed workforce but also translates into an estimated additional revenue of several million VND.
Rewards
Research indicates that employees appreciate being uniquely recognized and rewarded for their exceptional contributions, as highlighted by Ologbo (2011) This implies that the level of rewards and recognition can significantly enhance employee engagement.
Research indicates that a lack of rewards and recognition can lead to burnout, highlighting their importance for employee engagement (Maslach, 2001) Studies by Koyuncu (2006) and Ologbo (2011) further emphasize that the level of rewards and recognition significantly impacts work experience and serves as a strong predictor of job engagement However, Robinson (2007) suggests that other factors may play a more critical role in fostering engagement beyond just rewards.
Employees prioritize salary when considering new job opportunities, with potential candidates focusing on compensation and training options However, for current employees, factors such as job recognition play a crucial role in loyalty, often outweighing the importance of higher pay, promotions, or challenging tasks Research indicates that recognition is a key element in retaining employee commitment (Moskal, 1993).
RSM DTL offers a comprehensive rewards package that includes bonuses, allowances, and various benefits such as insurance for employees with over five years of service, annual vacations, and health check-ups Non-financial rewards and allowances are available to all employees, with increased benefits correlating to longer tenure Additionally, bonuses are primarily determined by an employee's hierarchical position and years of service rather than individual performance.
The rewards system of RSM DTL requires attention to two key areas: first, the non-financial rewards lack focus and diversity; second, bonuses are determined by organizational hierarchy rather than team or group performance.
Research highlights the significance of non-financial rewards over financial ones in enhancing employee engagement and team effectiveness According to Poe (1994), praise and recognition are crucial, with 47% of executives noting their importance in maintaining employee engagement Shaw (1995) further emphasizes that effective teams are primarily motivated by non-financial rewards, indicating that these rewards are essential for employee satisfaction To boost team effectiveness, organizations like RSM should prioritize non-financial rewards, which can include team events, non-work training, additional holidays, reduced hours, and vouchers.
To enhance fairness in bonus distribution, it's essential to shift from a position-based bonus calculation to one that reflects actual employee performance This change will ensure that bonuses are aligned with the results employees deliver to the company, promoting motivation and accountability.
The estimated expense for this strategy is approximately VND 400 million for the fiscal year of 2016
No Item Cost/ unit No of employee
Investigation fee (building the method to calculate bonus based on performance instead of position)
2.1 Overseas travelling with family 30,000,000 5 150,000,000 2.2 Additional holidays/ reduced hours 5,000,000 10 50,000,000
Figure 3.3: The cost estimated for reward strategy
The benefits for this strategy are estimated as follows:
Recognizing employees as valuable members of the organization fosters a positive self-image and enhances their sense of worth This appreciation not only makes them feel like winners but also motivates them to improve their work effectiveness.
Enhancing employee engagement can significantly reduce turnover rates by 6% to 8%, while simultaneously boosting productivity and revenue by 12% compared to 2015 This increase in engagement not only fosters a more committed workforce but also translates into substantial financial gains, with additional revenue estimated in VND.
Leadership
Effective leadership significantly influences employee engagement, as employees must feel confident in their organization This confidence is fostered by reliable leadership, which has been shown to enhance trust and confidence in senior leaders Studies indicate that a high level of trust correlates with increased organizational engagement, highlighting the essential role of trust in cultivating strong workplace relationships.
The Tax Department at RSM DTL is organized into various groups and teams, with authority delegated by the Tax Partner, who serves as the Deputy General Director This delegation is based on the specific work characteristics, empowering group leaders to oversee the performance of their respective groups, which includes managing both team leaders and team members effectively.
The leadership dynamic between the Tax Partner and group leaders is characterized by participative leadership, where decisions emerge from collaborative discussions The group leader plays a crucial role in supporting the Tax Partner's decision-making process while also influencing the entire department by promoting shared values, visions, and missions Additionally, the group leader fosters innovation and creativity among middle managers and team members, encouraging a culture of collaboration and forward-thinking within the organization.
Participative leadership emphasizes collaborative decision-making, valuing group input and fostering a culture of trust and mutual respect This leadership style encourages employee involvement in production needs, strategic planning, and establishing work conditions By promoting critical thinking and healthy relationships among colleagues and superiors, participative leaders align team objectives with organizational goals, ultimately enhancing productivity and cooperation within the workplace.
Authoritarian leadership at the lower management level, particularly among group and team leaders, presents several challenges Team leaders often impose work assignments based on their own principles, leading subordinates to execute tasks without a clear understanding of the group's objectives This lack of cohesion hampers overall performance Furthermore, limited communication between leaders and subordinates, exacerbated by the absence of regular team meetings, restricts collaboration Consequently, the authoritarian approach can result in a disconnect between leadership decisions and team engagement, ultimately affecting productivity and morale.
Limiting the activity and spontaneity of the subordinates;
Creating the tendency of deserting the own responsibility to the leaders;
The lack almost entirely of initiative from subordinates, they having the tendency of submission, closeness to the leaders or to draw their attention;
Creating the apathy in subordinates, at one extremity, or the feeling of frustration accompanied by a dose of aggressively against the leaders or other members, at the other extremity;
Inducing the subordinates dependency to the leaders, the proof being the group inactivity in the absence of the leaders;
Increasing the forms of irritability and aggressiveness towards the group colleagues, and emerging interpersonal tensions and the scapegoat phenomenon;
Creating the tendency of group disintegration
To address the challenges faced by the Tax Department, it is proposed to implement a participative leadership style at lower management levels, specifically among group and team leaders This approach aims to reduce authoritarianism and enhance team communication by involving both leaders and subordinates in decision-making processes Participative leaders will receive comprehensive training in both their specific fields and management skills, enabling them to collaboratively tackle issues with employees and colleagues effectively While this leadership style offers potential advantages, it may also present challenges related to participation.
Participation enlarges the motivation of the subordinated people to contribute to the settling of the objectives and taking decisions;
Involving subordinates in decision-making can significantly enhance the quality of outcomes, especially when they possess specialized knowledge in their field This is particularly beneficial when the decision-maker lacks expertise in certain areas or relies on outdated information.
Participation in decision-making, even when it does not enhance motivation or improve decision quality, can still foster acceptance of those decisions among subordinates.
Participation in decision-making can be time-consuming and energy-draining, which may hinder the ability to make quick choices However, while group decisions tend to take longer, they offer benefits such as fostering discussions that can reshape members' ideas and attitudes This process of persuasion ultimately leads to greater acceptance of decisions and reduces resistance during implementation.
Participation can make some leaders feel they lose power and influence;
The reduced efficiency of the decisions as a consequence of the lack of receptivity or knowledge from the part of the subordinates
Participative leadership effectively addresses issues related to authoritarianism and communication between leaders and their subordinates To enhance team cohesion and performance, transformational leadership is also highly effective This leadership style not only sets clear objectives and resources for the group but also fosters an environment of freedom (Lippitt, 2001) Transformational leaders inspire and stimulate their subordinates intellectually, challenging and motivating them to evolve into leaders themselves By establishing a clear mission, values, and objectives, transformational leaders empower their teams to achieve optimal performance.
This long-term strategy, spanning three to five years, aims to gradually change management styles with the support of both management and employees, requiring an estimated annual cost of VND 200 million However, given the current circumstances, implementing this strategy poses significant challenges, making it difficult to accurately assess costs and potentially impacting workplace culture and leadership styles Therefore, this strategy will not be utilized for this research.
Strategy evaluation
Training Improving physical work environment Reward/Recognition Leadership
- Resolves issue of quality of training program
- Resolves issue of physical work environment Increases employee motivation and engagement
- Increases employee motivation and engagement
- Improve the effectiveness in work
- Increases employee motivation and engagement
Most the staffs are young and thus, can learn quickly They love the system
-.All employees - All employees - Tax Partner
Spend on more human resources
- It also depends on the business performance,
- The investment in physical work environment (i.e
Transforming current workplace habits, such as implementing a profit-sharing system, promoting hydration, and enhancing lunchroom facilities, is challenging yet essential These changes should prioritize staff convenience to boost productivity and engagement, rather than merely catering to employee enjoyment.
- Existence of potential difficulties of participation
- Takes one year to accomplish the project
- The cost is roughly VND 350,000,000
- The benefits is estimated roughly VND 2,962,080,000
- Takes from six months to one year to accomplish the - The cost is roughly VND 440,700,000
- The benefits is estimated roughly VND 1,974,720,000
- Takes from one to two years to accomplish the project
- The cost is roughly VND from 400,000,000
- The benefits is estimated roughly VND 2,369,664,000
- Takes from three to five years to accomplish the project
The cost is roughly VND 200,000,000 million and is just an estimation
- This strategy will not be implemented for this research
Recommendation
To enhance employee engagement, RSM DTL should implement an effective training program and improve the physical work environment within the next year Additionally, developing a robust reward and recognition system over the next two years will further boost employee morale By combining these strategies, the company can mitigate the impacts of low employee engagement in the initial two years and foster a more engaged workforce in the years to come.