Problem background
RSM Vietnam, a prominent mid-tier accounting and advisory firm, employs over 140 professionals dedicated to providing high-quality, personalized services With a mission to be the preferred partner for growing businesses, RSM Vietnam supports clients in reaching their objectives through a comprehensive range of services, including audit, tax, advisory, and outsourcing solutions.
RSM Vietnam is a leading independent member of the RSM network, one of the top seven global accounting networks, boasting over 35,000 professionals and 718 offices across more than 110 countries With extensive experience and expertise gained from collaborating with major international and local accounting firms, RSM Vietnam delivers high-quality services to clients at competitive professional fees.
RSM Vietnam may not rank among the top four global firms, but it is dedicated to becoming a leading company in Vietnam, following the Big Four—KPMG, EY, PwC, and Deloitte Each year, the senior management team convenes to evaluate the company’s recent performance and establish a strategic development plan for future growth.
During this year's meeting, all participants acknowledged that while the Company has achieved significant milestones and established a strong market position, it is currently facing unprecedented challenges.
Firstly, there are over 200 companies in this industry and they are willing to provide services with low fees with the purpose of taking up the market
Retaining existing clients is challenging, and acquiring new ones is even more difficult, especially for outsourcing companies that rely heavily on the financial health of their clients The profitability of our company is directly linked to our clients' success With the global economy still recovering from the crisis, businesses are increasingly focused on cost-saving measures and optimizing internal resources to achieve competitive advantages To succeed in this endeavor, having high-quality human resources is essential.
Currently, the demand for high-quality Vietnamese employees exceeds supply, leading to intensified competition for talent In this environment, employee retention has become a critical priority According to a Human Resource report, turnover rates have risen significantly, resulting in a decline in revenue per employee, which has decreased from approximately 300 million VND per staff member.
Between October 2014 and June 2015, the company's turnover rate increased significantly, reaching 20%, well above the industry average of 12% to 15% The most challenging aspect is that the departing employees had between three to eight years of experience Additionally, fierce competition in the job market contributed to half of the resignations during this period, as many staff members received better offers elsewhere.
Turnover rate of experienced employees (%) Other offer (%)
Source: RSM Vietnam Human resource Report There are many reasons for this problem As the interview with Partner of the
Company, Mr Le Khanh Lam, who is responsible for the quality of delivering perfect service to clients, there are some items as below
Figure 1.1: The initial Cause and effect map
In mid-2014, RSM Vietnam faced challenges in business operations, prompting major clients to initiate cost reduction plans This resulted in a decreased corporate scope and led to the layoff of one-third of the company's employees.
Moreover, since revenue decrease, it is needed to figure out the way to keep the business continue running, the senior management board has decided to freeze some benefits for
Big client has ineffectively operated business, so they decided to narrow corporate scope
Employees feel that it is hard to be promoted and recognized (performance appraisal)
Cannot attract high quality candidates
So many companies are willing to directly compete by reducing service fees
Less competitive compare with rival companies
Low level of job satisfaction
Brain drain to rival companies
Employees do not put many efforts in daily work and project (achievement)
Employees do not agree with company policies (salary, benefits, …)
Rival companies, especially the Big 4 and prominent Vietnamese firms, are easily attracting employees due to competitive salaries and strong brand identities This trend has made our company less competitive, leading to a steady increase in the departure of high-performing talent each month Consequently, each department is now focusing on acquiring new clients and enhancing the company's brand visibility.
To offset lost revenue, companies must consider expanding into new markets, including foreign direct investment (FDI), banking, insurance, and real estate However, this mission is challenging and requires significant time and effort to achieve tangible results.
Secondly, performance appraisal of the Company is not clear and informative
Many employees feel that their contributions go unrecognized, making promotions seem unattainable and leading to lower job performance This lack of acknowledgment results in minimal effort, as they tend to work merely out of responsibility rather than motivation Additionally, dissatisfaction with the company's salary and benefit policies exacerbates the issue, particularly during a challenging year marked by declining revenue The average compensation and benefits offered fall short compared to other second-tier companies, making it a significant concern for employee morale and retention.
Local brand identity significantly influences the turnover rate at RSM Vietnam, as the company struggles to attract major clients due to intense competition This challenge may also lead to the risk of losing talent, who might be more easily recruited by rival firms.
Evidence suggests that RSM Vietnam is facing human resource management challenges It is crucial to identify the specific issues at hand Based on internal company data and interviews, low job satisfaction and employee commitment are key factors that require thorough analysis and improvement.
Justify the existence of the problem
To justifying the existence of the job satisfaction, must understand sufficiently the meaning of “job satisfaction” and what are the scale items to measure its
Job satisfaction, as defined by Hoppock (1935), encompasses a blend of psychological, physiological, and environmental factors that lead an individual to genuinely express satisfaction with their job This perspective highlights that, while external influences play a role, job satisfaction is fundamentally an internal experience linked to the employee's feelings It involves a variety of elements that contribute to an overall sense of fulfillment in the workplace.
To assess job satisfaction within the Company, a survey was conducted with ten experienced employees being groomed for senior positions They responded to a series of statements reflecting their feelings about the organization.
The interview questions are partly based on the previous research named Vocational Psychology Research, Manual for the Minnesota satisfaction questionnaire by (Weiss,
In 1967, open-ended questions were developed to gather essential information regarding job dissatisfaction, focusing on various aspects of employment such as opportunities for diverse tasks, job security, and individual workload Interviewees were assured of their confidentiality, ensuring that their responses were objective and free from bias.
Many interviewees reported frequently missing deadlines and feeling constantly busy at work They struggle to find time for relaxation, social outings, or gym sessions, often working over 10 hours a day to complete their tasks without any overtime compensation.
The Partner acknowledges that napping during lunchtime is not essential in the workplace; instead, employees can enhance their skills by engaging in reading or researching relevant topics related to their careers However, half of the interviewees expressed a preference for taking a brief 10 to 15-minute rest to avoid fatigue and maintain productivity for the remainder of the afternoon.
Employees often feel undervalued by the company, as they seldom receive recognition for their contributions and are quick to be blamed for mistakes This lack of appreciation leads to dissatisfaction with their intrinsic motivation and relationships with supervisors.
Many professionals consider tax and consulting jobs to be among the most challenging due to the inherent stress associated with them A key characteristic of these roles is the constant evolution of rules and laws, which requires staff to continuously enhance their knowledge by staying updated on regulations and reviewing client documents to gain practical experience However, four interviewees admitted that they prefer to unwind by reading news or chatting on Skype, as these activities help them alleviate stress and improve their overall well-being.
Many employees feel that their salaries do not reflect their workload or align with what peers in similar positions earn at other organizations Long working hours, often exceeding 10 hours a day, contribute to this sentiment Additionally, a lack of recognition or promotion from direct managers, despite their efforts to deliver quality results, fuels dissatisfaction and prompts them to seek better opportunities elsewhere.
Based on the above, there are some initial evidences to prove that RSM Vietnam has a problem with employee’s satisfaction in their work (job satisfaction)
A literature review highlights that low job satisfaction is closely linked to employee loyalty, resulting in high turnover intentions and absenteeism In 2015, RSM Vietnam experienced a turnover rate of 16.3%, a significant increase from 4% in 2014, with 27.8% of senior staff leaving This rise in turnover is primarily attributed to employees receiving higher offers from competitors, such as the Big Four firms (PWC, EY, KPMG, and Deloitte) The loss of core employees to competitors makes it challenging for the company to find qualified candidates externally Turnover incurs substantial costs for organizations across all sectors, including expenses related to selection, training, and development of personnel (Meyer, Becker, & Vandenberghe, 2004).
Justify the importance of the problem
Job satisfaction plays a crucial role in shaping employees' attitudes toward their work and its various components It reflects the degree to which individuals feel positively or negatively about their jobs Ultimately, job satisfaction encompasses a worker's feelings of achievement and success in their professional role.
Job satisfaction is closely tied to both productivity and personal well-being, reflecting the enjoyment and fulfillment derived from one's work It encompasses performing tasks effectively and receiving appropriate recognition for efforts, ultimately fostering enthusiasm and happiness in the workplace.
Spector (1997) listed three important features of job satisfaction:
Organizations should prioritize human values, ensuring that employees are treated fairly and with respect Assessing job satisfaction can be a valuable indicator of employee effectiveness, as high levels of job satisfaction often reflect a positive emotional and mental state among workers.
Job satisfaction significantly influences employee behavior, directly impacting the overall functioning and activities of an organization High levels of job satisfaction lead to positive behaviors among workers, while dissatisfaction can result in negative actions, ultimately affecting business performance.
Job satisfaction is a key indicator of organizational performance, as it allows for the assessment of satisfaction levels across various units By evaluating job satisfaction, organizations can identify specific areas that require changes to enhance overall performance.
Job satisfaction significantly impacts multiple facets of organizational life, influencing employee productivity, loyalty, commitment, and absenteeism.
Job satisfaction significantly influences productivity and performance, leading to reduced withdrawal and counterproductive behaviors (Morrison, 2008) A key moderating factor in this relationship is the perception of equitable rewards; when individuals perceive their rewards as fair, it enhances their job satisfaction and motivates them to exert greater performance effort.
Employee loyalty is a crucial consideration for human resource managers, as it significantly impacts organizational success It is often assessed through a Loyalty Questionnaire, and low levels of employee loyalty can lead to serious negative consequences for the company.
Employee loyalty can be categorized into three distinct types: affective loyalty, normative loyalty, and continuity loyalty Affective loyalty arises when an employee develops a strong emotional bond with the company In contrast, normative loyalty occurs when an employee feels a sense of obligation or indebtedness to the organization Lastly, continuity loyalty is characterized by an employee's lack of alternative job opportunities, leading them to remain with the company out of necessity.
Research conducted by (Vandenberg & Lance, 1992) during which they surveyed
A study involving 100 professionals in the information services sector over five months revealed a significant correlation between job satisfaction and employee loyalty The findings indicate that increased job satisfaction directly leads to higher levels of employee loyalty.
Research indicates a strong positive relationship between job satisfaction and organizational commitment, particularly in terms of affective commitment (Mathieu & Zajac, 1990) Employees who experience job satisfaction are likely to form emotional bonds and exhibit higher levels of affective commitment to their organizations (Ketchand & Strawser, 2001).
Employee absenteeism significantly impacts companies' costs, prompting managers to seek effective strategies for its reduction One of the most effective methods to minimize absenteeism is by enhancing employee satisfaction The core principle is that increased job satisfaction leads to lower rates of absenteeism, creating a more engaged and committed workforce.
Job satisfaction plays a significant role in reducing employee absenteeism, making it an important factor for employers to address, as it is often within their control However, company policies can inadvertently promote absenteeism; for instance, if employees are incentivized to use their sick days or risk losing them, it can foster a culture of absenteeism that undermines the positive effects of job satisfaction Therefore, while enhancing job satisfaction is crucial, it is equally important to evaluate and adjust workplace policies to prevent encouraging absenteeism.
High job satisfaction is generally associated with low absenteeism, while low job satisfaction often leads to increased absenteeism However, factors such as employees' perception of their job importance can influence this relationship It's crucial to note that while high satisfaction doesn't guarantee low absenteeism, low satisfaction is a strong predictor of higher absenteeism rates.
Overall, the poor of job satisfaction is a significant problem/issue in RSM Vietnam, which needs to be control with effective HR strategies.
List the potential causes of the problem
Job satisfaction is the key ingredient that leads to recognition, income, promotion, and the achievement of other goals that lead to a feeling of fulfillment (Kaliski &
Job satisfaction is a crucial factor influencing the efficiency and effectiveness of business organizations The modern managerial approach emphasizes treating employees as individuals with their own wants and needs, highlighting the significance of job satisfaction in today's companies This perspective reinforces the idea that a satisfied employee is not only happier but also more successful in their role.
(Swathi, 2014) suggested that there is a positive relation between organizational culture and employee satisfaction, and using a survey of 100 employees to study the relationship between organization culture and employee satisfaction
Employee benefits significantly influence job satisfaction, as noted by Williams (1995) It's important to distinguish between job satisfaction, which reflects the employee's viewpoint, and employee satisfaction, which is more aligned with the organization's perspective.
Literature has been proved that there are variety of factors affect to job satisfaction, they are:
Table 3.1: The description of nine facets of job satisfaction
Pay Satisfaction with pay and pay raises
Promotion Satisfaction with promotion opportunities
Supervision Satisfaction with person’s immediate supervision
Fringe benefits Satisfaction with monetary and non-monetary fringe benefits
Satisfaction with appreciation, recognition and rewards for good work
Satisfaction with operating policies and procedures Co-workers Satisfaction with co-workers
Nature of work Satisfaction with type of work done
Communication Satisfaction with communication within the organization
Table 3.2: The potential causes of Low level of Organizational Commitment
No Attendances Definition Relationship Scale Item Example Question
Recognition within an organization is essential as it serves as a significant reward for employees This acknowledgment helps address key aspects of an individual's identity, including their talents, roles, and contributions By recognizing accomplishments, organizations not only affirm the value of their employees but also enhance their engagement and alignment with the organization's goals and overall success.
+ - Influence (recognition of the employee’s judgment and role within the organization through giving employees opportunities to influence the organization)
- Skill-utilization (recognition of the individual’s skills and abilities through utilization of skills)
- Approval (recognition of employees’ accomplishments through approval of these)
- Does your company currently offer an employee recognition program?
- How valuable is peer-to- peer recognition at your company?
- When you do a good job, do you receive the recognition for it that you should receive?
- Do your company have these form of recognition: (i) Coworker recognition for a good job
(ii) Collection of points to redeem for gifts
(iii) Monetary compensation (iv) Paid time off (v) Certificate of achievement (vi) Recognition at all- company public function
2 Income/ pay “satisfaction depends on income relative to a comparison or reference level”
+ - Income level and satisfaction with compensation
Being paid fairly for the work that you do is important to your
“Satisfaction with pay is the most obvious component of job satisfaction through which workers would express dissatisfaction with rising income inequality”
Job satisfaction is significantly influenced by salary levels, with employees earning lower wages reporting decreased satisfaction In contrast, those with higher pay tend to experience greater job satisfaction Therefore, compensation plays a crucial role in determining overall job satisfaction.
- Income Level and Satisfaction with Work (Itself)
- Income Level and Satisfaction with Promotion
- Income Level and Satisfaction with Supervisor satisfaction on the job, isn’t it?
Reward “Promotion is a shifting of employee for a job of higher significance and higher compensation”
“The movement of an employee upward in the hierarchy of the organization, typically that leads to enhancement of responsibility and rank and an improved compensation package is a promotion”
“The reassignment of an employee to a higher-rank of job”
“Promotion is said to be happened when an employee makes a shift in the upward direction in organizational
+ - Promoting to a place of greater authority and control
- Significant change in the wage package of an employee
- Productive employees and effective distributor in the organization (Naveed et al., 2011)
- Does your Company have reward/promotion policy?
- Is it easy to get a higher position in your Company?
- Which are requirement to get that?
- Is the reward amount high? hierarchy and moves to a place of greater responsibility”
Achievement goals are defined as the objectives that guide individuals' engagement in tasks, shaping how they interpret and experience their pursuit of success The type of goal adopted plays a crucial role in influencing one's actions and overall approach to achieving their aspirations.
(developing their competence and acquiring new skills)
- Mastery-Approach (Mastery-orientated individuals are assumed to be motivated to either focus on the development of competence through task mastery)
- Mastery-Avoidance (Mastery-orientated individuals are assumed to be motivated to strive to avoid deterioration/leaving the task incomplete)
- Performance- orientation (demonstration and verification of their ability)
- Performance- Approach (Performance- orientated individuals
- It is important for me to understand things as thoroughly as possible (Mastery-Approach)
- I worry that I may not learn all that I possibly could (Mastery-Avoidance)
- It is important for me to do better than others (Performance-Approach)
- My fear of performing poorly is often what motivates me
- I am satisfied with my overall job performance at present
- I often set goals that are difficult to reach
- I try to avoid failure at all costs
(Elliot & Church, 1997) can be motivated either to demonstrate superior competence relative to others)
- Performance- Avoidance (Performance- orientated individuals can be motivated either to avoid demonstrating inferior competence relative to others) (Avery, Smillie, &
Organizational culture encompasses the fundamental beliefs and values that a group develops to address challenges related to external adaptation and internal cohesion These established norms are deemed effective and are passed on to new members as the appropriate framework for understanding, thinking, and responding to various issues.
“Organizational culture is a set of values, symbols and rituals, shared by the members of a specific firm, which describes the way things are done in an organization in
- Mission culture (It emphasizes organizations are featured with clear goals and versions
Members can take responsibility to efficiently finish the assigned tasks
Organizations assure employees of the special award)
- Adaptive culture (The features of the said culture can satisfy
- The coherent power of my company is high emphasis on work performance and targeted achievement
- All company members can pay close attention to work performance and achievement orientation
- All company members are vested with the spirit of innovation and adventure
- My company aggressively makes R&D effort for novel products and strategies in the hope of order to solve both internal management problems and those related to customers, suppliers and environment”
“Organizational culture is a combination of value system and assumptions which lead an organization to run its business”
(Belias et al., 2015) customers’ demands by means of the strategy focus on external environment)
- Clan culture (The emphasis lies in the involvement of members and the expectation on the quick changes of external environment
The said culture emphasizes that members shall play the role with high efficiency and they shall express the strong responsibility sense of involvement and show more organizational commitment)
- Bureaucratic Culture (The said organizational culture can provide a systematic method to perform commercial activities Also, by means of the high consistency, obedience becoming the innovator among peering industries
- My company highly emphasizes humanity and respect to every member just like a large family
- My company highly emphasizes development of human resource, being kind to employees and encouraging teamwork cooperation
- The coherent power of my company is employees’ loyalty and devotion to my company and high emphasis on teamwork cooperation
- My company is well regulated and all members severely obey work codes for daily tasks
Enhancing organizational coherence is crucial for improving work efficiency and overall activities within a company This can be achieved by emphasizing organizational codes, policies, and maintaining smooth administrative operations and collaboration among team members (Chang & Lee, 2007).
“Firstly, Fringe benefits stand as an important component of worker compensation Secondly, Fringe benefits can act as substitutes for wages”
In general, indirect and non-cash compensation paid to an employee
Employee benefits can be categorized into those mandated by law, such as social security, unemployment compensation, and workers' compensation, and those that differ by company or industry, including health insurance, life insurance, medical plans, paid vacation, pensions, and gratuities.
- Does your Company have trip annually?
- Do you think your Company should add more benefits?
- Does your current benefit make you satisfied?
Figure 3.1: Potential cause and effect of low level of job satisfaction
Low level of Job satisfaction
Cause justification
This research involved a focus group of five employees at RSM Vietnam to assess the key factors influencing job satisfaction Data was gathered through a questionnaire featuring eight questions related to six potential causes, including Recognition, Income/Pay, Promotion, Achievement, Organizational Culture, and Employee Benefits The study encompassed a diverse range of employee positions, from new hires to senior management To enhance understanding and encourage open discussion, the survey included both main and sub-questions, facilitating a deeper exploration of the root causes that significantly impact job satisfaction levels at RSM Vietnam.
Section 5.4 – Supporting Information presents a detailed table of interview results from five interviewees, exploring the causes that influence job satisfaction at RSM Vietnam The focus group identified four key factors affecting job satisfaction, ranked in order of importance: Income/Pay, Promotion/Reward, Achievement, and Recognition.
Income plays a crucial role in enhancing employees' job satisfaction, as higher earnings often motivate individuals to perform better in their roles Many employees report increased levels of satisfaction due to the financial rewards associated with their work A key factor in choosing a particular job is the promise of a decent income, reflecting the belief that everyone deserves a fair wage and a standard of living that meets their needs.
When applying for a job, the primary concern for most employees is the monthly salary and whether it meets their essential living needs.
Income is often viewed as a recognition of an employee's contributions within an organization When individuals work diligently and invest significant effort, they expect their compensation to reflect their contributions For example, one employee took on a major project that required immense time and energy, ultimately securing a significant contract from competitors Despite this achievement, he was disappointed to find that his salary did not increase the following year, highlighting the disconnect between effort and reward.
Higher income is directly linked to increased productivity in the workplace When employees are satisfied with their earnings, they are more likely to concentrate fully on their jobs Conversely, if their income does not meet their needs, they may seek employment elsewhere for better benefits Additionally, some workers opt for side jobs, such as online trading or ride-sharing, to supplement their income.
The promotion and reward system within an organization is a significant factor influencing employee satisfaction While every company has its own policies regarding promotions and rewards, it is essential to evaluate their effectiveness and impact on employee morale.
The Company's promotion policy stipulates that only exceptional employees who have demonstrated over-performance in the previous year are eligible for advancement to higher positions with increased responsibilities However, the limited number of promotions and the subjective nature of performance appraisals create challenges for employees, leading to a lack of motivation and discouragement in their efforts to contribute value to the Company.
The effectiveness of a company's monetary reward policy significantly impacts employee satisfaction and motivation While employees receive quarterly and yearly bonuses, if these amounts are minimal, it can lead to decreased happiness and engagement Additionally, the practice of awarding the same bonus to all employees, regardless of their position, may discourage them from striving for excellence or seeking advancement within the organization To foster a sense of contribution and satisfaction, it's essential to implement a reward system that recognizes individual performance Ultimately, respecting and valuing employees can enhance their commitment, loyalty, and focus within the company.
An empirical interview reveals a clear connection between employee recognition and job satisfaction, highlighting recognition's vital role in fostering happiness and motivation for improved performance All interviewees acknowledged the company's recognition policy, which occurs annually at year-end, where outstanding employees receive a "Certificate of Excellent Performance" along with a monetary reward However, a common concern among employees is the lack of clarity regarding the evaluation process and the criteria used to select deserving candidates.
Many interviewees emphasize that a simple "thank you" or asking, "How are things going?" holds more significance than monetary bonuses Employees desire recognition that their efforts contribute to a larger purpose and play a crucial role in advancing their career paths.
Recognition programs are essential for demonstrating respect for employees, as they value their efforts and acknowledge their contributions Implementing a meaningful employee appreciation program can prevent organizational decline while boosting productivity and revenue Effectively expressing gratitude and providing recognition can significantly impact an employee's career and the company's long-term success Consequently, a well-structured recognition program enhances employee motivation and job satisfaction.
Achievement significantly influences employees' job satisfaction by shaping how they engage with tasks and set goals Employees often face complex jobs with tight deadlines and high pressure, yet leaders may overlook these challenges, pushing for quick results While employees desire to expand their knowledge and gain experience from their work, the relentless pressure can lead to burnout and a potential loss of motivation.
The spirit of achievement within the Company appears to be lower than that of other Big4 firms, as employees tend to focus solely on their daily assigned tasks without seeking additional responsibilities, despite having available time This lack of initiative is attributed to an unclear vision and absence of personal career planning among staff.
Achieving career goals is crucial for personal satisfaction and confidence, as it empowers individuals to feel accomplished and motivated to continue progressing in their professional lives.
Potential solutions development
When promoting job satisfaction amongst social workers, a question of which key elements is important in helping to create and maintain job satisfaction
The author explores potential solutions to enhance job satisfaction at RSM Vietnam, drawing on insights from prior research and focus group interviews.
To provide an attractive income/pay policy to employees in RSM Vietnam, the
Companies should conduct market research to determine average salaries within their industry, as discrepancies may exist between their compensation packages and those of competitors Notably, the company's fixed monthly salary and annual pay raise may be lower than industry standards To address these issues, it is crucial for the company to consider implementing strategic changes and take prompt action to align their compensation with market expectations.
To retain employees and prevent them from being lured away by competitors, the Company should explore enhancements to its income and pay policy Investing in salary increases is often more cost-effective than the expenses associated with recruiting and training new staff.
Many employees at the company receive annual pay raises based on their performance appraisals; however, some do not, leading to dissatisfaction among those affected The lack of a clear and publicized policy regarding these appraisals fosters an environment of doubt and jealousy, ultimately impacting overall productivity Therefore, it is essential to establish a transparent performance appraisal policy to ensure fairness and improve employee morale.
In addition to monetary compensation, implementing non-monetary incentives is essential for enhancing employee satisfaction Examples of such incentives include meal allowances, cell phone allowances, company-sponsored travel, team-building activities, and comprehensive health insurance for employees' families.
The low value of promotions and rewards offered to employees currently fails to enhance their commitment to the Company Increasing the monetary rewards and introducing additional incentives, such as trips or extended annual leave, could significantly motivate employees to contribute more to the Company's success and help reduce turnover rates.
In addition to physical rewards, companies should focus on recognizing employee achievements through timely acknowledgments This can be done during team meetings, through thank-you emails, or by sharing success stories on bulletin boards for everyone to see The key is to ensure that employees receive recognition promptly, as timely encouragement and rewards motivate them to strive for greater contributions and value for the company.
Employee appraisal processes often raise concerns regarding fairness and objectivity, with many employees feeling that promotions and rewards are influenced by subjective opinions and personal relationships To address these issues, it is crucial for companies to establish a transparent appraisal framework that incorporates both qualitative and quantitative analysis methods By implementing a structured and integrity-driven evaluation system, organizations can ensure that all employees are assessed in a fair and professional manner Communicating these changes effectively will enhance employee satisfaction and foster a workplace free from discriminatory practices.
Supervisor recognition significantly impacts employee job satisfaction by validating their contributions to the company Various forms of recognition can enhance this feeling, including a simple thank-you email, public praise during meetings, or spontaneous expressions of gratitude.
Creating opportunities for employees to express their opinions and ideas is a positive response to their feedback Quarterly meetings provide a valuable platform for top management to engage directly with the entire company, allowing employees to inquire about business plans, company services, and operational suggestions, such as addressing parking shortages, expanding workspaces, or redesigning the company website.
Regular support from leaders is crucial for employees to feel valued and acknowledged for their contributions Goodwin and Griffith (2008) highlight various techniques in their book, "Supervisor's Survival Kit," that assist supervisors in fostering strong relationships with their team members, ultimately leading to enhanced perceptions of supervisor support.
To ensure project success, project managers must conduct a kick-off meeting with the entire team at the project's outset This meeting should clearly outline the project scope based on client requirements, define individual responsibilities, and finalize processes, ensuring all team members are aligned and understand their roles.
Providing employees with regular feedback on their performance is essential for their growth and development Project leads should acknowledge when team members excel, encouraging them to maintain their high standards Conversely, if an employee is not meeting expectations, it is crucial for the lead to offer guidance or consider reassigning them to roles that better align with their skills.
Recognizing employees' contributions is essential for fostering continuous improvement and motivation Managers should provide acknowledgment either privately or publicly, ensuring it occurs at the appropriate time Given the company's current financial constraints, it is crucial to emphasize non-monetary incentives Effective methods include sending recognition emails, highlighting achievements on the bulletin board, and nominating employees for features in the company newsletter's "Get to Know" section.
Involving employees in departmental decision-making offers several key benefits, as highlighted by Goodwin and Griffith (2008) Firstly, it prepares employees for future promotions by enhancing their understanding of departmental operations Secondly, it boosts their confidence and productivity by providing valuable decision-making opportunities Lastly, it fosters better relationships among team members, reducing friction and misunderstandings Overall, employee involvement cultivates a sense of importance, challenge, and stimulation within the workplace.
(v) Create a harmony-working environment and positive relationship with employees through activities, such as: happy hour on every Friday, internal English club, birthday event for team member, etc
Potential solution evaluation
To address the low job satisfaction at RSM Vietnam, a comprehensive evaluation table has been created, outlining specific criteria to identify the most effective solution.
Provide an attractive income/pay policy Promotion/ reward Recognition Achievement
- Increase level of job satisfaction by providing performance based pay
- Provide the clear and transparent policy of performance appraisal
- Provide non-monetary incentives (meal allowance, cell-phone allowance, company travel, team – building, health insurance for whole family, etc.)
- Encourage and reward employees’ achievements timely
- Provide the clear and transparent policy of performance appraisal
- Give employees opportunities to influence the Company
- Create a relationship based on trust between employer and employees
- Increase level of job satisfaction by providing effective training programs
- Boosts communication frequency and collaboration via new software tool
-HR department is required to identify the average salary range in the market Then,
- The top manager (Partner, Head of Department and all Group leaders) should work
-All management levels are required to build and
The training team must collaborate with the Finance department and the Head of Function department to prepare essential resources, including trainers and training facilities Together, they will design a new salary structure that encompasses both base salary and a competitive benefits package, ensuring it remains attractive yet within the company's budget Additionally, they will work to establish a new employee appraisal structure that aligns with these changes.
- The top manager (Partner, and all Group leaders) should encourage and reward employees’ achievements timely maintain a good relationship with their members
- All employees are encouraged to give their opinions to improve company policy or process, which is related directly to them
The HR department has established a bulletin board to celebrate employees' achievements and enhance workplace morale Additionally, they collaborate with department heads to design impactful training courses that align with the company's strategic objectives and support employees' professional development plans.
Group leaders must consult the development plan for their team members, ensuring it aligns with the company's strategy and each employee's career path They are then expected to commit to executing and completing this plan effectively.
- All employees are encouraged to boosting productivity through applying project management tool - Trello
- Not easy to know exactly the range from another competitor
- Motivating by money is not the long-term solution
- Lengthen a duration of decision-making process
- Required managers to spend a lot of time to take care their members
-It may not realistic for managers, who are managing a big group with more than
- All managers are required to implement company’s training plan seriously No any of exceptional cases
- Individual development plan can differ from company strategy
-Due to job requirements, employees cannot spend time for training as planned
- using Trello tool requires IT advancements
- Takes time to train staff and encourage them to use the new software tool
- Monetary reward is not a long-term strategy
- Takes one year to accomplish the project (for rebuilding employee appraisal structure and implementation)
- Lengthen a duration of decision-making process
- Requires a separate team to work on the project (i.e training team)
- Requires a separate team to work on the project
- Individual development plan can differ from company strategy
- Trello is free, however, it takes time to setup and implement in the whole company
The analysis indicates that implementing an attractive income/pay policy is a costly endeavor for RSM Vietnam compared to other strategies In contrast, the Recognition strategy offers quick and cost-effective solutions that do not require a dedicated team for implementation Additionally, while the Promotion/Reward and Achievement strategies are more resource-intensive and time-consuming, they provide valuable long-term support for the company's future growth and should be taken into account despite their higher demands.
Change plan design
To enhance its strategic approach, RSM Vietnam should prioritize an appealing income and recognition policy in the short term, while focusing on the development of promotion, rewards, and achievements for long-term growth.
Company can manage their staff well to allocate key persons to be in charge of these strategies while still being able to do their daily jobs
Jan 2017 Feb 2017 Mar 2017 Apr 2017 May 2017 Jun 2017 Jul 2017 Aug 2017 Sep 2017 Oct 2017 Nov 2017 Dec 2017
Provide an attractive income/pay policy
HR Department research and find out the average salary in the market
The HR Department will collaborate with the Finance Department and the Head of Function to create a new salary structure that includes a competitive base salary and an appealing benefits package, all while adhering to the company's budget constraints.
Announce the revised salary structure to all staff
Conduct survey to check the feedback of the feasibility of the new salary structure and make further correction if possible
- The top manager (Partner, Head of Department and all Group leaders) should work together to create a new employee appraisal structure
- The top manager encourages and reward employees’ achievements timely
- After consideration, the top manager will work together to design a new employee appraisal structure (under integrity procedure and clearly scale including qualitative and quantitative analysis method)
- The top manager encourages and reward employees’ achievements timely
- The top manager has to immediately announce to all employees making sure that they will be assessed reasonably and professionally under new structure
- The top manager encourages and reward employees’ achievements timely
- Conduct survey to check the feedback of the feasibility of the new employee appraisal structure and make further correction if possible
- The top manager encourages and reward employees’ achievements timely
Recognition - All management levels are required to build and maintain a good relationship with their members
- HR department creates bulletin board to recognize employees’ accomplishments
Establish quarterly meetings for the top management team to engage directly with all employees, allowing them to inquire about the company's business plan, services, and operational suggestions This initiative encourages open communication regarding issues such as limited parking, the need for expanded work cubicles, and potential redesigns of the company website.
- All employees are encouraged to give their opinions to improve company policy or process
- the Company creates a relationship based on trust between employer and employees
- the Company creates a harmony- working environment
Conduct survey to check the feedback and make further correction if possible
Achievement - Training team prepare resources
(trainers), training facilities (room, equipment); and work with Head of Department to design effective courses, which are matched with company strategy and employees’ development plan
- Group leaders are required to consult development plan for their member, which is match with company strategy and employees’ career path
- Training team contact the HR Department to organize the training program as planned
- For applying project management tool, implement usability testing, collect recommendations, audit content in one or two group
- Conduct survey to check the feedback of the feasibility of the training plan and make further correction if possible
- Create guidelines on using Trello, promote the tool and provide training to users to get familiar with the new software tool
- Conduct survey to check the feedback of the new software tool on boosting productivity and make further correction if possible
In conclusion, low job satisfaction is a critical issue at RSM Vietnam, leading to increased turnover intentions and absenteeism, which undermines organizational goals and employee commitment Research indicates that this problem stems from factors such as low income, an unattractive reward system, insufficient recognition, and challenging achievement levels The paper proposes solutions aimed at addressing these root causes, which are expected to lower turnover rates and enhance the company’s competitive advantage in the Vietnamese market.
This paper primarily examines issues within the Tax and Consulting Departments, but it is essential to also consider employee commitment across the entire organization, including the Operations Department, which encompasses IT and Human Resources.
Administration) Therefore, for further research, it is suggested to do this project for all employees, to have the overview picture of the level of job satisfaction in the company.
List of potential clues affecting job dissatisfaction existence in the Company
1 My current job keeps me busy all the time, hence the chance to do different things rarely happens, if any
2 My pay is average compared with my same-age friends in other organizations
3 We always work in-group, not alone
4 I consider this job as a steady one for long time
5 I have to take over lots of work from boss and other co-workers; therefore, I seem to be in stress condition in consecutive days
6 Employees in my company barely take a nap in lunchtime
7 I will make every effort in work in hope that I will get a higher position or even jump to higher level
8 The environment is very friendly and co-workers easily get along with one another However, work is not much flexible due to the nature of career
9 No praise or gifts I get when doing a good job, so I just work with the spirit of responsibility, not much effort
10 I often relax by surfing the internet whenever stressed in work time
11 The chance to be “somebody” in the community or company rarely happens.
Open-interview transcript to identify the existence of the problem
Question 01 Does your job keep your busy all the time? Can you have any chance to do different things outside the job?
A: Of course, busy all the time Because I am working as an auditor, in order to meet the clients’ need, I must do and issue reports for them in a limited short time The time of going to office’s clients for auditing is just about 3 days Therefore, co-workers and I have to work until late night, even continuing working at home for not over deadline
B: I take over 02 roles, which are accountant and auditor Hence, handling over one- work at one time usually happens, especially when I go through “auditing season” To solve this problem, I must go work trying to accomplish uncompleted work This easily makes us stressed and tired
C: My Company has plenty of clients; however, there is a problem of lacking human resources involving these pending jobs One person is in charge of work’s over 2-person I cannot work effectively if not having enough time Especially in tax department
Question 02 Is your pay in average compared with your same-age friends in other organization?
A: I totally agree I, in particular as well as my co-workers, in general, realize that we work a lot, but salary we get every moth is not commensurate with Even though, we still receive travelling and accommodation allowance when going on business in other provinces, we consider these amounts are not equivalent to what we bring to the company
B: Yes Apparently, there is one disadvantage in our company That is so-called overtime salary I know that in this auditing sector, some companies such as Big 4,…or even my average-ranking company’s friend have an extra amount equivalent to the time out of working hours This is considered as encouragement for employees, so if I do not receive any,
I am not willing to working overtime
C: I have no comment about this Just because I think that the auditing sector can be clarified into a special one, salary can be lower than other sectors However, job promotion,
I believe, is very huge if you realize and take the opportunity in time Actually, salary is not all-important in some cases
Question 03 Do your often get stressed from taking over lots of works from boss and other co-workers?
A: Yes, may be Yet it depends on which position you hold in your company If you are a senior, manager or even experiences employees, I can make sure that you will take over lots of work from higher co-workers After that, you assign tasks to your subordinates But, if employees don't complete tasks or complete them poorly, your reputation as a manager might suffer and even worse, your work may not run smoothly resulting in over workload
B: This problem often happens to me, even in consecutive days As a group leader in a small-scale group, just only 4 members, under pressure of receiving many projects from senior partner as well as monthly sales target, I almost get stressed at the end of the day after going out of office I cannot create more value for company if not having enough human resources supporting me
C: Yes Because of dealing with many clients all at once, deadlines and service quality
I have to provide to clients make me overloaded
Question 4 What do you think about employees in my company cannot taking a nap in lunchtime?
A: In “auditing season”, we work at office’s clients, due to the limitation of time; we cannot take a short rest after having lunch Although their employees still turn off lights for napping, we have to be stay awake working for ensuring the job is on good progress More importantly, when they return to work after lunchtime, we can discuss effectively together The simple reason is that if your client out of work, you cannot work or discuss problem with them Therefore, time is precious in these cases
B: I am currently working in Tax department I often stay in my company working rather than in office’s clients However, in my department, senior partner is a bit strict about
Napping during lunchtime is often debated in the workplace, with some arguing it detracts from productivity, suggesting that employees should instead focus on enhancing their knowledge through reading or research However, taking a brief nap of about 10 to 15 minutes can be beneficial, helping to prevent afternoon fatigue and ensuring smoother business operations Balancing the pros and cons of napping can lead to improved overall performance at work.
Question 5 Do you like your job? Does job characteristic affect you much? What about the environment, is it friendly?
A: For some people, this kind of job may be a bit boring due to working with lots of numbers, fractions and calculations just stay fixed at the chair almost time, not usually go here and there for communication In my opinion, whether flexibility in work and environment existing or not depends on every perspective as well as the way they work For me, my job is still flexible somehow and I love this job
B: The environment between same-level co-workers is sociable, but not in different- level people, specifically managers or bosses and employees I find it very hard to communicate with them I recommend that company should hold more team building or simply more lunch/dinner to closely understand together
C: The nature of career is known as stressed and strictly competitive among internal and external staff If anyone has not enough ambition and determination, he/she will be dropped by himself/herself
Question 6 Do you often receive any gifts or praise when doing a good job at that time? If not, what do you feel and do next?
A: I think that in any organization, encouragement for employees by gifts, money or any other forms when they make extraordinary contribution for company’s success even though it is small If no recognition or praise, I will make much effort to create more value for the company, just for responsibility
B: No praise or promotion is given to us when doing a good job But being easily blamed for mistakes in work is much worse than that For me, no recognition, no effort
Question 7 Are you allowed to get relaxed by surfing the internet whenever being stressed in work time?
A: Under pressure in work, the only one thing we can do is to listening music or go online in the internet Of course, the company policy don’t encourage staff do extra things in working hours like suffering internet, chatting in Skype or Facebook, readings news…But we have to use this way to get out of stress and feel better
Question 8 It is difficult to jump higher position compared with your same-level co- workers, isn’t it?
A: Yes Extremely difficult This is strict environment.
The list of question in mini focus group to justify the root causes
1 In your opinion, is “Recognition” one of key factors that affect your level of job satisfaction? How is it important?
2 Do you think your income/pay is suitable for your work/position? And what do you think about low income/pay resulting in low job satisfaction?
3 Are there any promotion/reward policy for those with high performance in your working environment? How does it affect job satisfaction?
4 Do you think that “Achievement” affects job satisfaction? At which level?
5 In your organization, does “Organization culture” play a virtal role in employee’s job satisfaction?
6 In your opinion, does “Employee benefit” affect job satisfaction? If yes, please give me more specific details
7 Beside the above factors, do you think there are any other factors affecting job satisfaction in other industries?
8 Which factor does affect at highest level and lowest level?
Interview transcript in mini-focus group session
Table 5.4: Interview transcript in mini focus group session
Question Interviewee A Interviewee B Interviewee C Interviewee D Interviewee E
“Recognition” one of key factors that affect your level of job satisfaction?
Yes My company currently offer an employee recognition program at the end of the year
Those who had good performance during the year will receive a Certificate of excellent performace employee and a
Yes Our leader often recognizes employees’ performance by observing them as well as evaluting through the quanlity of accomplished work For instance, she takes around saying “Good job!
Of course I believe that wherever you are working, all of you consider
“Recognition” as an important factor for your career In order to improve and develop the organization’s efficiency, your talent
I totally agree with that opinion
Recognition is virtal in our environment, especially in this auditing and consulting industry
This benefits for both strong and weak employees For strong employees, they know
When I do a good job, I make an impression for leader and other colleagues And I often receive the recognition for it, I feel excited and feel confident in accomplishing the coming tasks I will show them that their recognition is totally right I believe that jump-up in position, of course So recognition is important because it recognizes employees’ capacility as well as their contribution, this actually makes them feel more happier and satisfied
Recognizing and acknowledging the contributions of employees is essential for motivating them and enhancing their job satisfaction Continuous recognition fosters a sense of worth and happiness, encouraging employees to excel in their roles While strong performers thrive on acknowledgment and strive for further improvement, those who may struggle are likely to reflect on their shortcomings and increase their efforts Ultimately, a culture of recognition is vital, as it resonates with many employees who believe that acknowledgment is necessary for a fulfilling work environment.
Do you think your income/pay is suitable for
In this industry, basic salary is low, just on average when compared to other
Frankly speaking, my salary is not as high as my friends, I mean besides this auditing
Yes Low income will leads to low job satisfaction For instance, my
Of course Income has an important effect on your satisfaction As we know, income of
One of factors that affect employee performance is the amount of money you receive every month If your work/position?
Low income significantly impacts job satisfaction across various industries When employees receive inadequate compensation, their engagement with the organization diminishes It is challenging to feel fulfilled in a role when the financial rewards do not align with the effort and contributions made.
Feeling undervalued in the consulting industry can lead to disappointment and potential resignation Each industry has unique characteristics, and while my monthly salary is acceptable considering my knowledge and experience, it often feels inadequate compared to my contributions The disparity in income levels among employees highlights that pay is subjective; what seems low to one may be high to another Despite my dedication and effort, both at work and home, I frequently find myself overwhelmed by workload If my salary isn't adjusted soon, I may have to reconsider my position within the company A consistent monthly salary increase, separate from quarterly or yearly bonuses, is essential to maintain motivation and engagement Low pay can hinder focus and productivity, prompting employees like myself to seek additional work or even explore opportunities elsewhere for better compensation.
Are there any promotion/ reward ard policy for those with high performance in your working environment?
Our company implements a promotion policy that rewards recognized performance at the end of the year, allowing employees to advance in their careers ahead of their peers.
The amount of reward, so-called bonus, is not significant, just a small amount
Compared with the workload we incur and what we contribute, it is not fair Little
Despite the small reward I currently receive, I believe that with my existing knowledge and experience, I could earn a higher salary by moving to another company This situation has left me feeling somewhat disappointed and bored in my current role.
Despite our hard work and the stress we endure, the promotion and reward policies in place are overly stringent and challenging to navigate We contribute significant value to our company, yet the recognition and rewards we receive are minimal.
Many employees in our company share my concern that our performance bonuses are significantly lower than those offered by other firms in the auditing and consulting industry It raises the question of whether management understands the impact this has on job satisfaction Despite receiving quarterly and yearly bonuses, the disparity remains a challenge for motivation and morale.
Working hard without receiving appropriate rewards from your company can lead to disappointment and a lack of motivation When promotions and recognition are scarce, employee satisfaction diminishes, resulting in decreased effort and engagement.
I think my company should re-consider this issue and change policy as soon as possible that or not, why they keep us disappointed about that
Yes I agree with you I am currently satisfied with my
Yes May be Let’s imagine this case
In this company, the spritit of achievement in job is not very high
Yes, of course For me, setting goal and achieve it in career is
I think achivement leads to high job satisfaction and vice versa If you hold affects job satisfaction? At which level? overall performance
I have a strong passion for my work and actively seek out challenging tasks to enhance my skills and achieve greater job satisfaction While I thrive under pressure and enjoy tackling complex assignments, I often find that my leader is unaware of my desire for more responsibility, leading to a focus on quick completion rather than personal growth Many employees share a common goal of expanding their knowledge and gaining valuable experience; however, in comparison to larger firms like KPMG, PWC, and E&Y, they tend to stick to their assigned duties and rarely request additional tasks, even when time permits.
Employees who actively engage in their roles rather than simply performing tasks passively are crucial for a company's success Achieving personal and professional goals fosters self-satisfaction and confidence, which in turn motivates individuals to contribute positively to the organization When employees consistently meet their objectives, they not only enhance their enthusiasm for their work but also earn the admiration of their colleagues This engagement can lead to long-term commitment to the company, which is essential for maintaining competitiveness in the industry Without this proactive involvement, a company risks stagnation and may struggle to keep pace with its peers.
“Organization culture” play a virtal role in employee’s job satisfaction?
An organization's culture significantly impacts employee morale and performance A strict or uncomfortable working environment can dampen enthusiasm and motivation among employees, ultimately affecting their productivity.
Organizational culture is a crucial factor that influences employee satisfaction, second only to salary Considering that individuals spend around eight hours a day at work, the relationships with colleagues become significant, as they often feel like a second family A positive work environment fosters collaboration and enhances overall productivity.
In our organization, teams/groups revise their thinking as a result of group discussions or information collected in my organization
Besides, people give open and onest feedback to each other, spend time building trust with
No comment Maybe but not very important for me motivation in their wok It’s so terrible second family
To foster personal development, it is essential to be in an inspiring environment that encourages collaboration and the sharing of ideas When individuals express their viewpoints, they invite feedback, creating a culture of mutual learning and support This organized approach not only enhances teamwork but also boosts employee confidence and satisfaction, leading to more effective work outcomes.
Yes As income or reward, benefit is
Yes In my opinion, next to salary,
I can say that it does
Yes, I would like add other comments
Yes, I always conside about this factor when
Employee benefits significantly influence job satisfaction by providing essential cash and non-cash incentives that enhance overall employee well-being For instance, my company offers annual leave, training programs, allowances, and insurance, which contribute to a positive work environment By ensuring adequate benefits, organizations can maintain employee happiness, making these offerings a crucial strategy for attracting and retaining top talent while also minimizing turnover rates.