Low employee engagement at RSM DTL auditing company

PROBLEM IDENTIFICATION

Introduction about the Company and the central problem

Founded in 2001, RSM DTL Auditing Company ranks among Vietnam's top ten accounting and advisory firms, employing over 140 professionals to serve mid to large public-listed, multinational, and private companies across diverse industries The firm specializes in two key areas: Auditing and Tax Consulting Committed to its mission, RSM DTL aims to be a valuable business partner by delivering innovative solutions that enhance success in both local and global markets.

In 2014, DTL aimed to deliver professional services that align with international quality standards tailored to the Vietnamese business environment The company prioritized building a skilled team to enhance work effectiveness, meet growing customer demands, and foster a strong organizational culture, rather than solely focusing on acquiring new clients However, the implementation of this approach has been slow, leaving employees anticipating positive changes.

The Tax Consulting Department, consisting of 43 employees, plays a crucial role in the company's financial success, contributing to 70% of the total annual revenue Supported by the Management of the Tax Department, this department is organized into eight specialized groups, each focused on a distinct business line, including tax advisory, tax compliance, and accounting, to effectively meet diverse customer needs.

The Human Resource Department reports a significant rise in employee turnover, with rates escalating from 14.8% in 2013 to 19% in the first half of 2015, surpassing the industry's average turnover rate of around 15% This upward trend indicates a 3% increase in turnover during the first six months of 2015, and it shows no signs of abating Notably, 70% of departing employees hold senior positions with over three years of experience, highlighting a concerning pattern in staff retention.

The high staff turnover rate has contributed to a noticeable decline in employee performance, as highlighted by the Managing Partner of the Tax Department Managers reported unsatisfactory results from staff, with an increase in errors in calculations and reporting Additionally, employees exhibited a lack of effort towards maximizing productivity, evidenced by rising instances of tardiness, absenteeism, rework, and poor-quality output, along with excessive socializing during work hours and a general disinterest in their roles Various factors have led to these issues, but insights from interviews with DTL members, including Mr Le Khanh Lam, the Managing Partner of the Tax and Consulting Department, indicate that it is crucial to analyze the underlying problems related to declining work quality, employee appraisal, and engagement to address the current situation effectively.

Lacking of attention to work

Salary/ bonus based on level of position instead of performance Unequal work sharing between groups

Appraisal form provided general information

Increasing absenteeism Increasing work pressure Decreasing work quality and productivity

Figure 1.1: The initial cause – effect map

Firstly, from the last three months of the year 2014 until now, due to considerably increasing number of customers, the work volume as well as the pressure has also risen

The workload assigned to each group was uneven, with varying levels of complexity for each task Additionally, the number of employees remained constant during this period.

The company faced challenges in swiftly recruiting additional staff to manage new projects, which often involved complex issues presented by clients Despite these complexities, the anticipated revenue from these new clients fell short of expectations.

To attract potential customers, service fees were set competitively with market standards New clients required additional time from employees, which negatively impacted work quality and productivity—a critical issue recognized by the Tax Partner Addressing this problem is complex and time-consuming, as it involves various factors including human resource management, business strategies, and cost and revenue estimation.

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 faces different assignments based on their capabilities and the complexity of their tasks Furthermore, the existing appraisal form fails to adequately capture the nuances of employee performance To address these shortcomings, DTL is developing a new appraisal system that will include detailed assessments for each role at mid-year and a comprehensive evaluation at the end of the year.

Employee engagement has become a critical issue, as evidenced by data from the Human Resource Department indicating a significant rise in employee turnover, with rates escalating from 14.8% in 2013 to 19% in the first half of 2015 Additionally, there has been a notable increase in tardiness among workers, as reflected in the weekly attendance reports.

Administrative manager The enthusiasm of staff has the sign of depression.

The Tax Partner noted a concerning lack of employee engagement, with many staff members, including those new to the company, frequently using work hours for personal activities such as browsing the internet and socializing online This behavior has resulted in a significant portion—approximately 30%—of employees spending over an hour daily on non-work-related tasks, which detracts from their focus on essential responsibilities The tax advisory industry requires continuous learning due to frequently changing regulations, yet many employees neglect to enhance their knowledge during free time Consequently, the quality of work submitted for review has declined, with more products missing deadlines and failing to meet expectations, indicating a troubling trend in employee commitment and productivity.

Based on the data collected from the Company and employee interviews, the low level of employee engagement emerges as the most critical issue to analyze, given the current constraints of time, resources, and Board of Directors' acceptance.

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 (Kahn, 1990).

Engagement is influenced by various job resources, including job control, access to learning opportunities, availability of essential materials, involvement in decision-making, positive reinforcement, and support from colleagues.

Employee engagement is a crucial psychological state where individuals feel a strong connection to their organization, driving innovation and progress According to Gallup, engaged employees work passionately and contribute significantly to their company's success, often exceeding job expectations (Harter et al., 2009) Schaufeli (2013) emphasizes that this engagement reflects a vested interest in the organization's achievements, leading to high-performance standards.

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 that engagement is a positive psychological experience during work activities, characterized by feelings of vigor, energy, dedication, and enthusiasm.

Employee engagement is characterized by three key components: 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 involvement in one’s tasks, accompanied by feelings of significance, enthusiasm, and pride Absorption describes a state of complete concentration and enjoyment in work, making it difficult to detach from tasks as time seems to fly by To effectively measure these aspects of employee engagement, the Utrecht Work Engagement Scale (UWES) was developed, consisting of a valid and reliable nine-item questionnaire that assesses the interplay of vigor, dedication, and absorption in the workplace.

The Gallup Organization's extensive research using the Q12 instrument has provided significant insights into employee engagement Defined by Harter et al (2009) as "the individual's involvement and satisfaction with as well as enthusiasm for work," employee engagement is measured through the Q12 questionnaire, which identifies actionable issues and engagement conditions According to Gallup (2002), employees fall into three categories: engaged, not engaged, and actively disengaged Engaged employees are high achievers who consistently seek excellence, while not engaged employees merely complete assigned tasks without alignment to organizational goals Actively disengaged employees pose a risk to workplace morale, as they not only underperform but also demotivate their colleagues.

The ISA Engagement Scale, developed by Soane et al (2012) and rooted in Kahn's 1990 framework, assesses three key dimensions of work engagement: intellectual, affective, and social engagement, each measured by a 9-item index Intellectual engagement reflects employees' cognitive immersion and their efforts to enhance their work, while affective engagement gauges the positive emotions employees derive from their tasks Social engagement evaluates the sense of community and shared values among colleagues in the workplace Notably, the first and third dimensions align with concepts of absorption and vigor, respectively, while the second dimension introduces a previously unconsidered aspect of employee engagement.

We developed questionnaires based on established theories that incorporate key scales such as vigor, dedication, absorption, social engagement, involvement, satisfaction, and enthusiasm These questionnaires utilize the Utrecht Work Engagement Scale with nine items, the ISA Engagement Scale with nine items, and twelve questions from the Gallup survey to effectively measure engagement levels.

Please see the list of detailed scale items at Point 5.2, Chapter 5 page 57.

To investigate employee engagement, in-depth one-on-one interviews were conducted, ensuring the confidentiality of all shared information Initially, ten interviewees were invited, but ultimately, eight individuals participated, comprising one partner, one manager, and six staff members with three to six years of experience.

In a discussion with Ms Truc Phuong, manager of Group Six, which consists of eight members, she emphasized her role as a leader She stated, "As the leader of my team, I aim to inspire my team members, ignite their passion for work, and provide encouragement and motivation."

Despite having a decade 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, yet she has not received any feedback in this regard.

In an interview with Ms Thuy Ly, a consultant with over five years of experience, she expressed her dissatisfaction with her current job due to several factors The demanding workload often requires her to work late, returning home around 8 to 9 PM, which translates to approximately twelve hours a day dedicated to work She lamented, “I do not have time for myself to enjoy with my family,” and frequently feels exhausted, making her reluctant to return to the office each morning Additionally, she highlighted issues with her laptop, stating, “Please see my laptop; it is covered with a lot of plaster at the corners and is running very slowly for processing data.” Despite bringing these concerns to the attention of her leader and the IT department, no improvements have been made.

Three out of six colleagues reported a significant decline in 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 fatigue and desire to quit, stating, “I feel so tired and really I do not want to go to work.” This sentiment was echoed by others who contemplated leaving their jobs in search of new opportunities Their focus shifted from passion for their work to merely completing tasks out of obligation One employee even submitted a resume on recruitment websites to explore new prospects Ms Giang Huong, who has been with RSM for nearly three years, also shared her insights 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, and in the past six months, I have not received any acknowledgment from my direct manager, even after delivering strong results Additionally, I frequently stay late, highlighting the unequal distribution of workload within the team These factors clearly indicate a downward trend in 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 comprising twenty questions was distributed to thirty-three employees at the Tax Department of RSM DTL Company to assess employee engagement levels Out of the distributed surveys, thirty-seven were returned, resulting in a response rate of approximately 86% Respondents rated their agreement on a five-point scale, where 1 represented "strongly disagree" and 5 indicated "strongly agree." The average rating from the responses was around 2.3, indicating that employee engagement at RSM DTL is below the average benchmark of 2.5.

In addition, the above questionnaire was also sent to the Tax Department of Grant

Justify the importance of the problem

Engaged employees, as highlighted by Schaufeli and Bakker (2004), tend to exhibit a stronger attachment to their organizations and are less likely to consider leaving Turnover intention, defined by Carmeli (2006), reflects an individual's personal assessment of the likelihood of quitting their job in the near future.

Employee turnover intention serves as a strong indicator of future behavior (Carmeli, 2006) Research indicates that engagement is closely linked to various outcomes, such as organizational commitment, employee 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 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 reciprocal relationship between the two Furthermore, Mone and London (2010) assert that by improving performance management strategies, organizations can cultivate and maintain high employee engagement levels, ultimately leading to superior performance outcomes.

“It is often recognized that engagement is predictive of employee outcomes, success, and financial performance of organizations” (Macey, 2009; Saks, 2006).

Due to a decline in engagement, the output of assistants and seniors often falls short of leadership expectations across most groups The Manager of Group Six highlighted a steady reduction in work quality, with staff frequently submitting results that do not meet her requirements, necessitating additional time for review before client delivery Additionally, slow responses to work requests and untimely completion of assignments have contributed to decreased productivity When faced with new clients requiring one-off services, such as checking accounting policies or addressing complex issues, staff have displayed signs of dissatisfaction and a reluctance to accept new tasks, demonstrating a lack of flexibility in problem-solving.

Mr Le Khanh Lam, the Managing Partner of the Tax Department, has observed a decline in work quality, noting discrepancies in the effectiveness among eight groups He highlighted an increase in final products failing to meet quality standards and deadlines While the company typically receives few client complaints, there have recently been customer feedback concerning missed report deadlines and inaccuracies in computations.

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 is linked to an employee's involvement, organizational commitment reflects their attitude and emotional attachment to the organization (Saks, 2006) Schaufeli and Bakker (2004) further emphasize that engaged employees exhibit 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 she never envisioned a long-term future there She felt a lack of support from her direct manager and team members, leading to feelings of emotional detachment from the organization.

Early signs of employee disengagement include absenteeism, tardiness, and behaviors indicative of withdrawal or increased negativity (Branham, 2005) Research by Hoxsey (2010) highlights an inverse relationship between employee engagement and absenteeism, suggesting that as engagement declines, absenteeism rates rise.

Recent data from the HR Department indicates a significant rise in the number of employees arriving late to work, with over 50% in April, 60% in May, and 76% in June 2015 Despite weekly reminders about punctuality sent via email to all employees, 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 prioritizes a supportive work environment by addressing employees' needs and feelings, offering positive feedback, and encouraging open communication This approach not only fosters skill development but also empowers employees to tackle work-related challenges Consequently, a meaningful workplace that promotes focused work and interpersonal harmony is a crucial factor in enhancing employee engagement.

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, enabling employees to learn independently on the job (Van Dam, 2005) It is a written tool designed to guide employees within an organization, offering clear instructions and support For instance, a job aid might include step-by-step directions for completing an appraisal form, ensuring that employees have the necessary information to perform their tasks effectively.

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 necessary to complete specific tasks, detailing the required steps, order of operations, and expected outcomes (Pipe, 1986) Additionally, supervisors play a crucial role in supporting employees by ensuring they have access to these job aids and guidance throughout their work processes.

A supervisor, often regarded as an experienced leader, plays a crucial role in organizational management by solving problems and serving as a role model (Adair, 1988; Nijman, 2004) They are responsible for guiding their subordinates in group tasks and ensuring effective collaboration within the organization Additionally, the physical work environment significantly impacts a supervisor's ability to lead and support their team effectively.

The physical work environment plays a crucial role in determining whether an individual fits or misfits within the workplace According to Amir (2010), two key elements influence this environment: the office layout plan and office comfort Additionally, Amir emphasizes that a well-arranged physical workplace is essential for achieving organizational goals.

Effective leadership is a complex, multi-dimensional concept that includes self-awareness, balanced information processing, relational transparency, and strong moral standards Research indicates that inspiring leaders naturally foster employee engagement When employees perceive their work as significant and impactful, it enhances their interest and involvement Authentic and supportive leadership is believed to boost employee engagement by increasing their satisfaction and enthusiasm for their roles.

2.1.3 Team and co-worker relationship

Kahn (1990) discovered that fostering supportive and trusting interpersonal relationships, along with a collaborative team atmosphere, significantly enhances employee engagement Creating an open and encouraging environment is crucial for employees to feel secure in the workplace, enabling them to 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 of work Consequently, employees who cultivate 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.

Training and development programs enhance employee confidence, leading to increased job engagement Improved service accuracy resulting from training positively influences overall service performance and boosts employee engagement (Paradise, 2008).

Alderfer (1972) proposed that providing employees with opportunities for growth is akin to rewarding them He highlighted that fulfilling growth needs relies on individuals discovering avenues to reach their full potential Therefore, management must prioritize career advancement through training and development, which will create timely growth opportunities and enhance employee engagement.

The training program involves several key steps, including defining objectives, choosing an appropriate trainer, creating lesson plans, selecting effective methods and techniques, preparing necessary materials, scheduling sessions, and conducting a training needs analysis (Adair, 1988; Elangovan, 1999).

Organizational career development, as defined by King (2005), encompasses opportunities such as challenging assignments, career counseling, and access to vital information that enhance an individual's career prospects Supporting career development is crucial for retaining high-potential staff Research indicates that organizations offer various activities to foster this growth, including challenging work assignments, new learning opportunities (Kinnie, 2005), career counseling (Leung, 2002), and essential information about both the organization and the 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 driving employee engagement The research indicated that when employees are rewarded by their organization, they are more likely to exhibit increased levels of engagement in their work.

Kahn (1990) found that an employee's engagement level is influenced by their perception of the benefits they receive Consequently, it is not merely the quantity or type of rewards that matter; rather, it is how employees perceive these rewards that shapes their job satisfaction and engagement This highlights 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 termed "extrinsic" because they are controlled by external factors rather than the work itself In contrast, intrinsic rewards are psychological benefits that employees derive from engaging in meaningful work and excelling in their performance While extrinsic rewards are important, they tend to be more prevalent in organizations characterized by routine and bureaucratic structures, highlighting the balance between external incentives and the personal fulfillment gained from meaningful contributions.

According to Thomas (2009), there are four types of intrinsic rewards comprising of:

Cause justification

In-depth interviews were conducted with five key individuals from the Tax Department at RSM DTL, including Mr Khanh Lam (Deputy General Director), Ms Kim Ngan (Director of Human Resources), Ms Truc Phuong (Group Leader), and Team Leaders Ms Thanh Kieu and Ms Thuy Ly Each interviewee was briefed on the potential causes of low engagement, ensuring clarity in definitions and measurement scales for accurate responses Selected for their extensive experience and understanding of the company's current situation, the respondents provided insights under the assurance of confidentiality Results indicated a strong correlation between the training program, physical work environment, reward system, and leadership with employee engagement levels Conversely, factors like team dynamics, career development, and company policies were not seen as significantly linked to the engagement issues at RSM DTL, suggesting a more complex relationship that requires further exploration.

The results from the interviews indicate that the quality of the physical work environment significantly influences employee engagement Participants overwhelmingly agreed that employees who are satisfied with their workplaces tend to exhibit higher levels of engagement.

According to Sundstrom (1994), individuals spend about fifty percent of their lives in indoor environments, significantly impacting their mental well-being, actions, and performance A conducive workplace environment is linked to enhanced productivity and employee engagement, as highlighted by Peach (2006), who notes that the physical working environment is a crucial factor in employee engagement Comfort at work, influenced by workplace conditions, is vital for productivity measurement Consequently, many organizations are adopting innovative designs to create office spaces that foster productivity and attract talent Research by Uzee (1999) and Leaman and Bordass (1993) emphasizes that the physical layout and effective management practices are essential for enhancing employee productivity and overall organizational performance An independent study by ASID (1999) also identified workplace design as a top factor affecting performance Employee experiences, such as those shared by Ms Thuy Ly, reveal that inadequate IT support and uncomfortable environmental conditions, like poor air conditioning, can disrupt work and lead to missed deadlines, underscoring the need for organizations to prioritize a comfortable and efficient workplace atmosphere.

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.

Interview results revealed that the physical work environment significantly impacts employee engagement levels at RSM DTL, while job aid and supervisor support do not play a crucial role in influencing engagement.

The interview revealed that the training program is a key factor contributing to low employee engagement at RSM DTL Auditing Company Research by Sajuyigbe (2012) indicates that effective training and development significantly enhance employee engagement, while Grund (2001) supports this by noting that training leads to improved employee performance, 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 highlights that the training schedule fails to align with employees' demands and working hours.

Ly frequently missed the training program due to scheduling conflicts with her business trips The Director appointed someone to oversee the training, but failed to consider staff work schedules, resulting in employee complaints about their inability to participate Additionally, the training content was overly general and did not align with the specific needs of the staff Ms Phuong noted that while the training focused on technical knowledge, it lacked depth, leaving employees ill-equipped to address complex customer cases The training subjects should be tailored to meet the actual needs of both the staff and the organization.

The training process often fails to meet the needs of both management and employees, as materials are frequently distributed too late for adequate preparation Additionally, the training content primarily focuses on hard skills, neglecting essential soft skills such as communication, teamwork, interpersonal relationships, and presentation abilities To enhance human resource development, the company should reassess its training procedures and establish a comprehensive professional training program, adhering to the principle of "First who, then what," as highlighted by Ms Kim Ngan.

All participants acknowledged that rewards significantly influence employee engagement, alongside factors like work characteristics, environment, and career progression Employees prioritize salary, bonuses, and reward policies as part of the overall value proposition offered by employers This value proposition encompasses a comprehensive package that includes compensation—such as base pay and various incentives—and benefits like health care and retirement plans When evaluating new opportunities, employees assess these rewards over time Additionally, rewards can be categorized into extrinsic and intrinsic types, with extrinsic rewards being tangible financial incentives, including pay raises and bonuses.

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 noted that the method used to estimate employee salaries and bonuses could diminish motivation, as it may create a perception that there is no distinction in compensation between high-performing and average employees This mindset fosters a culture of merely meeting basic requirements Additionally, the management's lack of focus on intrinsic rewards significantly contributes to low employee engagement When competitors offer higher salaries, bonuses, and appealing non-financial rewards, the likelihood of employee turnover increases.

Leadership behaviors significantly influence workforce productivity and employee vitality, as highlighted by Kaplan & Kaiser (2009) Interview findings indicate that four out of five participants recognize the connection between leadership and employee engagement Mr Khanh Lam emphasizes the need for RSM DTL to enhance the leadership skills of group and team leaders At DTL Company, group leaders have the authority to make final decisions and bear responsibility, but their authoritarian approach to task assignments limits subordinates' understanding of group objectives, resulting in a lack of cohesion and performance Communication barriers exist due to infrequent team meetings, with leaders solely responsible for decision-making This dynamic stifles subordinates' initiative, fosters dependency on leaders, and encourages a tendency to seek approval rather than take ownership of responsibilities.

ALTERNATIVE ANALYSIS and ALTERNATIVE CHOICE

Training program

Developing a comprehensive training procedure is essential for enhancing employees' understanding and skill application (Muhammad, 2012) Training is a targeted effort to improve an individual's abilities in specific tasks, and it significantly boosts employee engagement (Alfes, 2013) Furthermore, effective training not only improves 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) It is a widespread activity across various sectors, including industry, commerce, government, healthcare, and the military Within organizations, training is conducted at all personnel levels, accommodating a diverse range of trainees in terms of age, experience, disability, education, ethnicity, and skill level.

In light of the Company's current circumstances, the proposed training procedure, based on Furjanic's 2000 study, consists of 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 as it directs their investment in employee development (Baldwin, 1994) Additionally, business requirements should guide the selection of training solutions to effectively address performance gaps (Bee, 2003).

Research highlights that business needs should be the primary focus of training needs analysis, emphasizing the importance of clear communication However, individuals may seek to acquire different knowledge and skills than those mandated by their organization It is essential to consider both organizational and individual needs to create a comprehensive training approach.

The second stage of training process is the training design.

Training design involves creating a structured program that includes developing learning objectives and relevant content areas To effectively design a training program, it's essential to gather accurate job-related information to identify these learning objectives One effective method for collecting this data is through job analysis, which systematically identifies the required tasks, necessary knowledge, skills, and abilities, as well as the job's context Conducting job analysis not only clarifies the competencies needed for task performance but also enhances an organization's competitive advantage By aligning HR practices, such as training, with the competencies essential for job performance, organizations can significantly improve their overall performance.

Learning objectives are essential for effective training design, serving as guiding tools that outline the necessary content and procedures for successful instruction They facilitate the management of the instructional process and aid in developing assessment methods to evaluate the effectiveness of the teaching By clearly defining the topic and content, learning objectives also influence 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 crucial to define the specific circumstances in which outcomes will be assessed This includes establishing clear criteria for evaluation and identifying the minimum acceptable performance standards, which outline the expected efficiency and speed of task execution.

Include caveats, restrictions, and limitations related to any of the above

An effective training objective will outline that participants will enhance their skills through the integration of mental coordination with physical activities Additionally, it will emphasize that the training aims to foster understanding and knowledge among trainees By the end of the session, trainees will be equipped to identify, describe, recognize, or define the key concepts covered.

The third stage is training delivery

Selecting 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 proves beneficial when supervisors or experienced instructors are present in the work environment, while 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 assess their progress and performance effectively This feedback can range from simple explanations of the correctness of answers to more comprehensive evaluations of their overall performance and test results.

Timely feedback is crucial for maintaining self-confidence and motivation The sooner feedback is provided, the more valuable it becomes, regardless of its complexity Immediate responses help prevent a decline in self-esteem, ultimately fostering a more motivated mindset.

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 addresses the requirements of both employers and employees Currently, the Tax Department's training program lacks essential topics aimed at enhancing soft skills, including effective communication, negotiation, problem-solving, and risk management skills.

The training program primarily emphasizes technical knowledge in tax and accounting, neglecting the importance of developing both soft and hard skills for a well-rounded staff development experience.

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 Total estimated cost (VND)

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, managers, and the organization They concur that a positive work environment enhances employee attitudes, encouraging them to perform at high quality and remain committed to their roles.

Research shows that enhancing employee engagement and cultivating a supportive environment can greatly boost a company's success (Harter, 2002) Engaged employees not only fulfill their job roles but also adapt their work to align with evolving workplace dynamics (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, as air temperatures that are too high or low can lead to fatigue and related illnesses Thermal comfort is influenced by various factors, including air temperature, movement, humidity, clothing, and physical exertion levels For sedentary tasks, the ideal temperature range is between 20 and 26 degrees Celsius, while those engaged in physical work may prefer cooler conditions To maintain optimal temperatures, employers can utilize air conditioning, fans, open windows, sunlight control, and airflow management, adapting strategies based on the specific work environment and weather conditions.

At RSM DTL, the hot environment frequently leads to discomfort for employees To address this issue, two effective solutions are proposed: enhancing air circulation with fans and performing regular maintenance on the air conditioning units.

To enhance employee well-being, it's important to implement additional control measures, although they may be less effective when used in isolation These measures include reducing the work pace when feasible, ensuring access to cool and high-quality drinking water, and creating a comfortable space for employees to take regular rest 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 goal achievement, it is essential to provide them with the necessary materials, equipment, and managerial support Insufficiently powered laptops often lead to decreased productivity, as employees spend excessive time dealing with slow technology Ensuring that staff have access to efficient tools and flexible support is crucial for fostering a productive work environment.

Currently, the Company lacks a designated lunchroom for employees It is essential to establish a meal room or a comfortable area for staff to enjoy their meals during work hours This space should be specifically allocated for dining and equipped with tables, chairs, and a suitable method for boiling water Additionally, all facilities must be well-maintained, kept clean, and should not serve as storage for materials or goods.

To enhance the quality of the physical work environment, the company should prioritize upgrading work materials for employees by maintaining and replacing old laptops, ensuring access to high-quality drinking water, and improving the air-conditioning system through regular maintenance and the purchase of new units to maintain a comfortable working temperature.

In the coming year, RSM DTL plans to invest in establishing a lunchroom equipped with essential facilities, including a microwave oven, coffee makers, and a refrigerator This project is expected to take approximately 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)

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:

Enhancing employee satisfaction with the work environment fosters a sense of convenience and well-being When employees recognize that the company prioritizes their welfare, it motivates them to engage more deeply with their work and collaborate effectively with colleagues.

Increasing employee engagement can significantly reduce turnover rates by 5% to 7%, while boosting productivity and revenue by 10% compared to 2015 This enhanced engagement not only fosters a more committed workforce but also translates into substantial financial gains, estimated to add considerable revenue in VND.

Rewards

Research indicates that employees often prefer unique rewards and recognition for their exceptional performance, which can enhance their engagement levels.

Research indicates that a lack of rewards and recognition can lead to burnout, highlighting the importance of these factors for employee engagement (Maslach, 2001) Supporting this, Koyuncu (2006) found that the level of rewards and recognition significantly impacts work experience and serves as a strong predictor of engagement Ologbo (2011) further reinforces this conclusion, demonstrating that rewards and recognition directly influence job engagement However, Robinson (2007) notes that while rewards are crucial, other factors may play a more significant role in fostering engagement.

Employees prioritize salary when considering job opportunities, particularly in competitive job markets While potential candidates focus on salary and training opportunities as key factors in their decision-making, existing employees value a broader range of rewards from their companies Notably, research indicates that job recognition plays a crucial role in fostering employee loyalty, often outweighing the importance of higher pay, promotions, or challenging work (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 awarded for longer tenure Financial 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 lack of focus and diversity in non-financial rewards; and second, the current bonus structure, which is based on organizational hierarchy rather than team or group performance.

Research highlights the significance of non-financial rewards in enhancing team effectiveness and employee engagement According to Poe (1994), praise, rather than monetary compensation, is crucial for maintaining employee motivation, with 47% of executives emphasizing recognition as a key factor Additionally, Shaw (1995) found that effective teams are primarily rewarded through non-financial means, underscoring the importance of these rewards for employee satisfaction To boost team performance, organizations like RSM should prioritize non-financial incentives, which can include team-building events, educational opportunities, additional time off, and vouchers.

To ensure fair compensation, it's essential to revise the bonus calculation method, moving away from a position-based approach to one that reflects actual employee performance By aligning bonuses with the results employees deliver to the company, we can foster a more motivated workforce and drive better outcomes.

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 appreciation for their contributions, making them feel like winners This acknowledgment not only enhances their morale but also motivates them to improve their work effectiveness.

Enhancing employee engagement significantly reduces turnover rates, decreasing them by 6% to 8% This increase in engagement also boosts productivity and revenue by 12% compared to 2015, resulting in an estimated additional revenue of VND.

Leadership

Effective leadership significantly influences employee engagement, as individuals need to feel confident in their organization This confidence is cultivated through reliable leadership, which fosters trust Research indicates that a strong sense of trust in senior leaders correlates with higher levels of organizational engagement, highlighting the importance of trust in relationship-building within the workplace.

The Tax Department, as outlined in RSM DTL, is structured into various groups and teams, with authority delegated by the Tax Partner, typically the Deputy General Director This allocation is based on the specific work characteristics, ensuring that group leaders oversee the performance of their respective groups, which includes both team leaders and team members.

The leadership dynamic between the Tax Partner and group leaders exemplifies participative leadership, where decisions emerge from collaborative discussions Group leaders play 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 They inspire innovation and creativity among middle managers and team members, fostering a culture of collaboration and growth.

Participative leadership emphasizes collaborative decision-making, where leaders engage in discussions that value group input This approach fosters responsible work relationships built on trust and mutual respect Leaders who adopt this style encourage employee involvement in production demands, strategy formulation, and work conditions By empowering individuals to think critically and cultivate healthy relationships with colleagues and superiors, participative leadership aligns everyone towards a common organizational objective and the means to achieve it.

Authoritarian leadership in lower management, particularly among group and team leaders, presents several challenges Firstly, team leaders often assign tasks in a top-down manner, disregarding the principles of collaboration and input from subordinates Consequently, team members may execute tasks without understanding the group's overall objectives, leading to a lack of cohesion in work and performance Additionally, limited communication due to infrequent team meetings hinders effective interaction between leaders and subordinates, placing the burden of decision-making solely on the leader This leadership style can ultimately result in negative outcomes for team dynamics and productivity.

• 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 enhance leadership within the Tax Department, a shift towards a participative leadership style is recommended, particularly among lower management, such as group and team leaders This approach emphasizes collaboration, where decisions are made collectively by leaders and their subordinates Participative leaders should receive comprehensive training in both their specific fields and management skills, enabling them to confidently address issues alongside their employees and colleagues While this leadership style offers significant benefits, 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 that the responsible person may lack or when the leader's information is outdated.

Participation in decision-making may not always enhance motivation or improve decision quality, but it can foster acceptance of those decisions among subordinates.

Participating in group decision-making can be time-consuming and energy-intensive, which may hinder quick decision-making However, despite the slower pace, group discussions offer significant advantages, as they help reshape members' ideas and attitudes through persuasion This process 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 an excellent approach This style not only defines the group's objectives and resources but also empowers members with freedom (Lippitt, 2001) Transformational leaders inspire and motivate their subordinates, fostering intellectual growth and turning each individual into a leader By establishing a clear mission, values, and objectives, transformational leaders encourage their team to achieve optimal performance.

This long-term strategy, spanning three to five years, involves a gradual change in management style that requires support from both management and employees, with an estimated annual cost of approximately VND 200 million However, given the current circumstances, implementing this strategy poses significant challenges, making it difficult to accurately assess costs and impacting workplace culture and leadership styles Consequently, this strategy will not be utilized in 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 year, the prospective

- The investment in physical work environment (i.e materials, air conditioner

- It is difficult to change the current style as habit to apply

To enhance staff productivity and engagement, the systems for drinking water and lunchrooms should prioritize convenience over mere enjoyment, focusing on improving working capabilities rather than simply satisfying employee needs.

- 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 elevate employee engagement levels By combining these strategies, the company aims to mitigate the impacts of low employee engagement in the initial two years and foster a more engaged workforce in the years to come.

ACTION PLAN

Analyze the training needs of both employees and the managers‟ requirement

Making the training design including define the topic, the content, materials, schedule.

Training delivery to employees Training evaluation/ feedback will be performed after each course.

Apply knowledge from training to work

+ Maintain the air-conditional system;

+ Contact the building management for renting new room (dealing

+ Change the new supplier for drinking water + Design the lunchroom

+ Begin using the lunch room

+ Collect the feedbacks of employees for using the new lunchroom and make the suitable reparation.

54 price, sign the contract, etc.)

Rewards + Analyze and building the method to calculate the bonus based on the real performance;

+ Finding the appropriate types of non- financial reward to apply for employees;

+ Discuss with the Manager for approval

+ Trial test this method for the working results of the first six months of 2016

Rewards + Finding more the appropriate non-financial rewards to apply

+ Apply totally the new method for calculating the bonus for the fiscal year 2016-2017 (Oct 2016 toSep 2017)

SUPPORTING INFORMATION

Interview transcript to explore the potential problems and central problem

(supporting for Point 1.1, Chapter 1 at Page 4)

5.1.1 The Managing Partner of Tax Department (Mr Le Khanh Lam)

The staff turnover rate in our department has surged to an alarming 18% to 20% in 2015, significantly higher than in previous years, coinciding with a noticeable decline in employee performance This troubling trend raises critical questions about the underlying issues we must address.

Managing Director, DTL can face the problems relating to the quality of service, employee appraisal and employee engagement.

The increasing number of customers resulted in a higher workload and pressure on existing employees, as the company struggled to recruit additional staff quickly New clients often presented complex issues, leading to lower-than-expected revenue and requiring employees to invest more time in addressing their needs This situation negatively impacted work quality and productivity, highlighting a critical issue that needed resolution Furthermore, the employee appraisal process was flawed, as it focused on job titles rather than actual performance Each staff member's assignments varied based on individual capabilities and job complexity, while the appraisal forms failed to adequately capture the nuances of their work processes.

56 employee However, at present, DTL is preparing the new appraisal system and there will be significant changes in near future.

The recent increase in late arrivals among laborers, as noted by Ms Lan, the Administrative Manager, highlights a concerning trend of declining employee enthusiasm and engagement Many staff members, particularly those with less than a year of experience, are reportedly spending work hours on personal activities such as browsing the internet, using social media, and reading online news, which detracts from their focus on primary responsibilities This lack of attention has led to a noticeable decline in work efficiency, evidenced by a rise in the number of subpar products submitted for final review and an increase in missed deadlines These issues indicate that the company is facing significant challenges related to employee engagement.

Based on data collected from the Company and interviews with employees, the low level of employee engagement emerges as the most critical issue to analyze, given the constraints of time, resources, and the Board of Directors' acceptance.

5.5.2 The administrative Manager (Ms To Lan)

Recent attendance reports indicate that the Tax Department has the highest number of employees arriving late and leaving early, as well as taking more days off over the past three months Despite sending bi-weekly reminders to encourage punctuality, the situation has not improved Additionally, there has been a notable increase in employee turnover, with signs of declining enthusiasm and engagement among staff This may stem from dissatisfaction with current employee appraisals or a broader decline in workplace morale.

5.5.3 The Deputy Manager of Tax Department – Ms Lien Huong

According to statistics from the IT Department, approximately 30% of employees spend over an hour each day on personal issues during work hours, leading to decreased focus and effectiveness in their tasks This lack of concentration is reflected in the rising number of employees requesting day-offs, indicating a decline in employee engagement Additionally, there is an urgent need to revise the employee appraisal system to better align with current needs and challenges.

5.5.4 sultant with five-year working experience – Ms Thu Trang

The performance of my team has been declining due to a significant increase in workload from a growing number of new customers, who tend to present more issues than existing clients This has led to heightened pressure on team members, resulting in overtime work to meet deadlines Consequently, both work quality and productivity are suffering, and staff members are expressing a lack of enthusiasm and interest in their tasks Two team members have voiced their concerns about the current situation, which I believe is linked to employee engagement levels.

Scale items to justify the existence of the problem

5.2.1 Gallup Questions (Harter, Killan & Agrawal, 2002)

1 Do you know what is expected of you at work?

2 Do you have the materials and equipment you need to do your work right?

3 At work, do you have the opportunity to do what you do best every day?

4 In the last seven days, have you received recognition or praise for doing good work?

5 Does your supervisor, or someone at work, seems to care about you as a person?

6 Is there someone at work who encourages your development?

7 At work, do your opinions seem to count?

8 Does the mission/purpose of your company make you feel your job is important?

9 Are your associates (fellow employees) committed to doing quality work?

10 Do you have a best friend at work?

11 In the last six months, has someone at work talked to you about your progress?

12 In the last year, have you had opportunities at work to learn and grow?

5.2.2 Items details of UWES-09 Dimensions (Schaufeli, Bakker & Salanova, 2006) Vigor

At my work, I feel bursting with energy.

When I get up in the morning, I feel like going to work.

I can continue working for very long periods at a time.

I find the work that I do full of meaning and purpose

To me, my job is challenging.

When I am working, I forget everything else around me.

I feel happy when I am working intensely.

It is difficult to detach myself from my job.

5.2.3 The ISA Engagement Scale (Soane et al., 2012)

I focus hard on my work

I pay a lot of attention to my work

I share the same work values as my colleagues

I share the same work goals as my colleagues

I share the same work attitudes as my colleagues

I feel positive about my work

I feel energetic in my work

I am enthusiastic in my work

Questions for Interview at RSM DTL Company to test the existence of the problem 59

problem (support for Point 1.2, Chapter 1 Page 10)

1 Do you know what is expected of you at work?

2 Do you have the materials and equipment you need to do your work right?

3 At work, do you have the opportunity to do what you do best every day?

4 In the last seven days, have you received recognition or praise for doing good work?

5 Does your supervisor, or someone at work, seems to care about you as a person?

6 Is there someone at work who encourages your development?

7 At work, do your opinions seem to count?

8 Does the mission/purpose of your company make you feel your job is important?

9 Are your associates (fellow employees) committed to doing quality work?

10 Do you have a best friend at work?

11 In the last six months, has someone at work talked to you about your progress?

12 In the last year, have you had opportunities at work to learn and grow?

13 Do you like to go to work everyday morning? Do you intend to work here stably for a long time?

14 Do you feel the current job is meaning and challenging? Does your work now inspire you?

15 Do your focus hard/ concentrate highly on your work? What is the level of intention you spend on work?

16 Do you feel happy/ energetic and enthusiasm to work here? Do you believe that the positive perspectives at this Company?

17 Do you think that you share the equivalence of work value/ work goals and work attitudes with your colleagues?

18 Have you ever thought of leaving your job? Why do you want to leave your job?

19 How can you evaluate the staff performance? Are you satisfied with your staff performance?

20 Do you suppose that the Company has the problem with employee engagement? What can be the causes and effects of this issue?

Interview transcript for testing the existence of the problem

5.4.1The Managing Partner of Tax Department

Employees are exhibiting signs of decreased focus at work, with many, including new staff members with less than a year of experience, frequently using work hours for personal activities such as browsing the internet, accessing Facebook, and chatting on Skype Instead of utilizing their free time for self-improvement, approximately 30% of employees spend over an hour daily on personal matters online, according to IT statistics.

Recent activities within the department have resulted in decreased focus on primary tasks, leading to work inefficiency There has been a noticeable increase in the number of products submitted for final review that fall short of quality expectations and miss deadlines compared to previous periods This trend may indicate underlying issues with employee engagement within the company.

5.4.2 The Manager of Group Six

Despite being the leader, she struggled to find enthusiasm and creativity in her work, which hindered her ability to effectively inspire her staff.

With a decade of managerial experience, she seeks evaluation for advancement to higher-level positions, such as Tax Partner or Managing Partner, to assess her performance and professional growth.

The recent decline in work quality has become increasingly evident, with staff frequently submitting results that fall short of expectations, necessitating additional time for review and completion before client delivery Their slow response to work requests and untimely completion of assignments have contributed to decreased productivity Furthermore, when faced with new clients, the staff has exhibited signs of dissatisfaction and reluctance to take on additional tasks, demonstrating a lack of flexibility in addressing emerging challenges.

5.4.3 taff 1 - Consultant with more than five-year working experience

She often felt dissatisfied with her job due to a heavy workload that required her to work long hours, often returning home around eight or nine PM This left her with little time for herself or her family, leading to feelings of exhaustion each day She expressed her frustration, stating, “I do not have time for myself to enjoy with my family,” and highlighted the toll it took on her, saying, “I often feel so tired after a long working day and do not want to go to the company every morning.” Additionally, she pointed out the state of her laptop, which was covered in plaster at the corners, symbolizing the stress and weariness associated with her work environment.

Moreover, it is running so low for processing data Although I noticed this situation to the leader and the IT department, no change has done until now.

5.4.4 taff 2 – Senior with more than three-year working experience

Her enthusiasm and job satisfaction have significantly diminished, leading to feelings of boredom with her current role She expressed her fatigue, stating, “I feel so tired and really I do not want to go to work I just want to quit my job now.” Rather than pursuing her tasks with passion, she is focused on completing them quickly due to a sense of obligation.

5.4.5 taff 3 – Senior with nearly three-year working experience

In her experience, she noted a lack of encouragement from her leader, stating that despite being assigned numerous tasks, she received minimal support She expressed feeling undervalued, as her efforts went unrecognized by her direct manager over the past six months, despite her commitment to achieving positive results Additionally, she mentioned often being the last to leave work and observed an unequal distribution of workload within her group.

5.4.6 taff 4 – Senior with more than three-year of experience

She expressed her unhappiness and never anticipated a long-term future at the company Lacking support from her direct manager and team members left her feeling emotionally detached and disconnected from the organization.

5.4.7 taff 5 – Senior with four years working experience

He experienced a lack of enthusiasm in his work due to insufficient support from both his leader and colleagues when facing challenges with urgent customer issues Additionally, he felt isolated, lacking close friendships within the company Although he occasionally received compliments from his direct manager for good performance, the overall lack of support contributed to his disengagement.

5.4.8 taff 6 – Senior with five-year working experience

Since graduating from university, she has been employed at RSM DTL Auditing, but recently, she has lost interest and enthusiasm for her work The slow processing speed of her work laptop adds to her frustrations, and obtaining support from the IT Department has proven challenging Additionally, her group leader has not communicated with her regarding her progress or areas for improvement in the past six months.

Survey Questionnaire to justify the existence of the problem sent to RSM DTL, Grant

Auditing, Grant Thornton and BOD Vietnam with five point scale used from 1 =

"Totally disagree" to 5 = "Totally agree" ( Support for Point 1.1, Chapter 1 at Page

No Item Totally disagree Disagree Neutral Agree Totally agree

1 I know what is expected of me at work

I have enough the materials and equipment I need to do my work right

3 I have the opportunity to do what

In the last seven days, I have you received recognition or praise for doing good work

5 My supervisor, or someone at work, seems to care about me

6 There is someone at work who encourages my development

7 At work, my opinions seem to be counted

The mission/purpose of my company make me feel your job is important

My associates (fellow employees) committed to doing quality work

10 I have a best friend at work

In the last six months, there is someone at work talked to me about my progress

In the last year, I had opportunities at work to learn and grow

13 I like to work every morning

14 I intend to work here stably for a long time

15 I feel the current job is meaning challenging and it inspires me

16 I feel happy/ energetic and enthusiasm to work here

17 I share the equivalence of work value/ work goals and work attitudes with my colleagues

18 I have thought of leaving your job

19 I satisfied with my work performance

Do you suppose that the

Company has the problem with employee engagement?

Survey to justify the existence of the problem at Grant Thornton and BOD

Companies ( support for Point 1.1, Chapter 1, Page 13)

Table 5.6.1 - The detailed comparison of demographics characteristic between respondents and non-respondents at Grant Thornton and BDO Companies

No material difference of demographic characteristics between respondents and non- respondents

32% male 68% female Age 66.67% =< 30 year old

BOD (47 survey) 29 Respondents 18 Non-respondents Notes

No material difference of demographics characteristic between respondents and non- respondents

38.89% male 61.11% female Age 75.86% =< 30 year old

In short, due to no material difference of demographic characteristics between respondents and non-respondents the sample testing at Grant Thornton and BOD could be presented to popular.

Scale items to justify the importance of the problem

I often think of leaving my job.

I am planning to look for a new job during the next 12 months

If I am allowed to do it my way, I will be committed to work for this organization one year from now

I would be happy to work at my organization until I retire.

Working at my organization has a great deal of personal meaning to me.

I really feel that problems faced by my organization are also my problems

I feel personally attached to my work organization.

I am proud to tell others I work at my organization I feel a strong sense of belonging to my organization

JOB (doing things specifically related to one's job description)

4 Customer service provided (internal and external).

CAREER (obtaining the necessary skills to progress through one's organization)

6 Developing skills needed for his/her future career.

7 Making progress in his/her career.

INNOVATOR (creativity and innovation in one's job and the organization as a whole)

9 Coming up with new ideas.

10 Working to implement new ideas.

11 Finding improved ways to do things.

12 Creating better processes and routines.

TEAM (working with coworkers and team members, toward success of the firm)

13 Working as part of a team or work group.

14 Seeking information from others in his/her work group.

15 Making sure his/her work group succeeds.

16 Responding to the needs of others in his/her work group

ORGANIZATION (going above the call of duty in one's concern for the firm)

17 Doing things that helps others when it's not part of his/her job.

18 Working for the overall good of the company.

19 Doing things to promote the company.

20 Helping so that the company is a good place to be.

Interview transcript to justify the importance of the problem

5.8.1anaging Partner of Tax Department (Mr Le Khanh Lam)

Mr Le Khanh Lam, the Managing Partner of the Tax Department, noted a decline in work quality, highlighting inconsistencies in outcomes among eight groups He reported an increase in final products failing to meet quality standards and exceeding deadlines Although the company usually receives few client complaints, recent feedback indicates concerns regarding missed report deadlines and inaccuracies in computations.

5.8.2 The Manager of Group Six (Ms Truc Phuong)

Due to declining engagement levels, the output quality from assistants and seniors often falls short of leadership expectations Ms Phuong noted a steady decrease in work quality, with her team frequently submitting results that do not meet her standards, requiring her to invest extra time in reviewing and finalizing their work before client delivery Additionally, the staff's slow response to work requests and untimely completion of assignments have contributed to reduced productivity When faced with new clients requiring one-off services—such as reviewing accounting policies, ensuring tax compliance, or drafting official letters to the local Tax Authority—the staff displayed signs of dissatisfaction and reluctance to take on new tasks, demonstrating a lack of flexibility in addressing unexpected challenges.

5.8.3 old consultant with more than five-year working experience and one senior with four-year working experience (resigned)

Recent interviews with members who have resigned revealed key reasons for their departure, primarily citing a lack of engagement in their work They expressed that their level of engagement had significantly declined, prompting them to seek new job opportunities.

5.8.3 Senior with more than three years of experience (Ms Hoa)

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 her direct manager and team members, leading to feelings of emotional detachment from the company.

Cause justification

Table 5.9.1 – List of Potential causes with scale items based on theories

Antecedence Definition Author Relationship Scales

A supportive working environment prioritizes employees' needs and emotions, fosters positive feedback, and encourages open communication It empowers individuals to express their concerns, develop new skills, and collaboratively address work-related challenges.

(+) 1 Job aid (Van Dam, 2005) a written tool which provides guidance to the employees in an organization.

(Nijman, 2004) leading the subordinates in their group task and the groups in the organizations.

1996) Environmental design (lighting, air quality, surface, atmosphere, facility cleanliness)

Facilities (restroom; reaction; eating size, cleanliness, pleasantness)

Work organization (schedule, work amount, activity, pace flexibility, work system design, time to complete work, information quality, information move and store)

Equipment and tools (numbers of tools, efficiency of tools, effectiveness of tools)

Healthy and safety (accident avoidance, accident reporting, safety training received, safety training available, fine prevention systems)

Leadership Effective leadership is a higher-order, multi- dimensional construct comprising self- awareness, balanced processing of information, relational transparency, and internalized moral standards.

2010) behaviors that maintain a high level of team performance and ongoing development, including helping team members develop their potential, promoting team pride, and encouraging a superior customer service role

(Jessica, 2010) leaders‟ effective problem solving, and good management of time and priorities

3 Displays integrity respectively (Jessica, 2010) behaviors that demonstrate high stands of ethics and honesty, as well as good interpersonal skills Please see the detailed items below (*)

 Takes a genuine interest in the personal development of his/her team members

 Helps his/her team members identify and develop their skills and potential

 Celebrates his/her team‟s successes

 Encourages commitment to organization objectives

 Ensures his/her team members are sufficiently trained to do their jobs

 Promotes a sense of loyalty and pride within his/her team

 Encourages other to deliver superior levels of customer service

 Approaches tasks with enthusiasm and energy

 Personally strives to excel in all activities

 Supports team decisions, even if they differ from his/ her own view

 Seeks opportunities to improve the quality of service to customers

 Builds positive, long-term internal working relationships

 Willingly shares own knowledge and ideas with others

 Makes timely decisions, without unnecessary delay or haste

 Provides timely responses to requests, phone calls, or problem situations

 Deals effectively with multiple demands and conflicting priorities

 Anticipates workload and plans accordingly

 Is readily accessible to discuss progress or assist with delegated tasks

 Can be trusted with confidential information.

Team and co-worker relationship

It is the relationship between employees at the same hierarchical level who have no formal authority over one another.

It can refer to any individual with whom one works (including supervisors and subordinate employees)

The training program involves establishing clear objectives, selecting qualified trainers, developing comprehensive lesson plans, and choosing effective methods and techniques for program delivery.

4.Selecting the program method and techniques

7.Conduct a training needs analysis preparing the materials, scheduling the program and also conduct a training needs analysis

The opportunities provided by the organization to advance an individual‟s career prospects, such as challenging assignments, career counseling and being kept informed.

3 Career counseling (Leung, 2002) about the organization (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.

(+) 1 Extrinsic rewards Tangible rewards pay raises, bonuses, and benefits, given to employees

Sense of meaningfulness: You feel that you are on a path that is worth your time and energy, giving you a strong sense of purpose or direction.

Sense of choice: You feel ownership of your work, believe in the approach you are taking, and feel responsible for making it work.

A sense of competence arises when you effectively manage your work activities, meeting or surpassing your personal standards This feeling of accomplishment fosters satisfaction and pride in your high-quality performance, often leading to a sense of artistry in your approach to tasks.

A sense of progress instills encouragement as you recognize that your efforts are yielding tangible results Feeling that your work is on track and advancing positively, you observe clear indications of success that bolster your confidence in both your decisions and the future ahead.

Organization al policies The policies should provide guidance to employees and partners as to how they should act and behave to be in line with management's wishes.

(+) 1 Consistence with the values of the organization

2 Compliance with employment and other associated legislation

3 Ensure uniformity and consistency in decision- making and operational procedures

4 Save time when a new problem can be handled quickly and effectively through an existing policy

5 Maintain the direction of the organization even during periods of change

6 Provide the framework for business planning

Table 5.9.2 Interview transcript for Cause justification ( support for Point 3.2,

1 Is there any relationship between the training program and the level of employee engagement

Good training program focuses on teaching the skills which are needed to do this effectively

Yes, learning and development provides a way to address all of these human needs and greatly

Yes, learning will then provide the means to motivate and engage employees People will feel valued for

Yes, training can provide the knowledge for staff to handle the task better

Agreed Employees would like to feel valued and that they are recognized for a job well done In

? Why/ Why not? training and development can greatly enhance employee engagement by nurturing talent and helping people to learn new things and improve their performance.

Most people want to feel that they are doing a good job and that they are valued by their organization for the part they play. improves employee engagement

Investing in employee training and development fosters a positive perception among staff, as they feel valued and supported by their organization This support enhances their confidence in work processes, leading to more effective results Additionally, providing opportunities for learning and growth through education and experiences is essential Engaged employees are more productive, directly benefiting the company's bottom line Therefore, offering robust training and development opportunities is one of the most effective strategies to maintain employee engagement.

2 Is there any relationship between the work

Yes, a good work environment can lead to higher engagement and

Of course, the comfortable and profesional

Yes, when I come to office everyday, the convinient work

Yes, there is a clear relationship between them.

Yes, a healthy and safety work enviroment can lead to environment and the level of employee engagement?

Improving the physical work environment at our company is essential for enhancing employee satisfaction and productivity Feedback from staff has highlighted concerns regarding the quality of drinking water, the air-conditioning system, and the availability of essential materials such as laptops and scanners By addressing these issues, we can create a more convenient and motivating atmosphere that fosters enthusiasm for work.

Employee can find that it is happy to go to work everyday. environment bring me the interest for a new day to work effectively.

A positive work environment fosters employee engagement and boosts morale, leading to increased concentration and comfort in the workplace.

3 Is there any relationship between the reward, recognition and the level of employee engagement?

Yes, reward is an important component of effective employee engagement strategies If the Company want employees to

Agreed Pay people well and you get good performance, high engagement

Yes, employers need to develop and operate such a strategy, giving due weight to the pay and incentive

Obviously, pay is vital for motivation and incentive, but a total rewards approach is essential for

Recognition from supervisors and managers significantly boosts employee engagement, leading to enhanced productivity It's crucial for employees to feel valued and appreciated for their efforts, ensuring a balance between their contributions and the rewards they receive from the organization.

Employee engagement goes beyond merely motivating individuals to reach performance goals; it encompasses a genuine connection to the long-term objectives of the employer Companies that prioritize engagement not only focus on key elements but also provide a comprehensive work experience that fosters employee involvement and sets them apart from competitors, ultimately enhancing both engagement and performance.

4 Is there any relationship between the leadership and the level of employee engagement?

Yes, there is a strong relationship between the leadership and employee engagement

The leaders are playing the important roles in development of both organization and

It is clear about that

There is a natural tendency to lift people up to a place of leadership, within a highly engaged organization

As I know, employee engagement is a positive emotional connection to the work they do and a

"thinking connection" to the belief in the goals, purpose and

Yes, leaders can support and encourage employees to grow in their career paths

When leaders move toward improving their observable behaviors,

May be yes, I am not sure about that. However, in order to maintain our competitive position and continue to be successful as an organization,employee employees

Engaged people make for the best leaders.

Their actions will demonstrate their level of engagement, inspiring others to remain involved and setting a standard for how tasks can and should be accomplished.

– true leadership. key drivers of employee engagement is providing opportunity to grow and providing challenging work And the leaders are in charge of providing them. mission of that work

Employees seek pride, enjoyment, and support in their work, but they also desire a sense of purpose They want to believe that their contributions are meaningful and align with their personal values.

Effective leaders demonstrate the significance of work and foster innovation by actively listening to employees' perspectives, soliciting feedback, and providing choices This approach empowers leaders to positively influence their team, encouraging employees to engage willingly and enthusiastically in their roles.

Investing in employee development yields significant returns by fostering talent and positively impacting the organization's financial performance Engagement is essential, as leaders play a vital role in promoting innovative ideas and improving job execution Furthermore, acknowledging and rewarding staff for their contributions enhances motivation and productivity.

5 Is there any relationship between the team and co- worker relationship and the level of employee engagement?

Maybe yes but not too much

Despite a high turnover rate, employees report a supportive and friendly relationship among coworkers; however, this camaraderie does not guarantee long-term commitment or engagement with the company.

Supporting relationship between employees at RSM DTL can affect the level of engagement but not much.

No I do not think like that.

The kind relationship between the colleagues can help you feel more happy at work.

Nevertheless, it not affect level of employee engagement at our Company.

Good relationship with other employees does not mean that I will working here for long time as well as increasing my level of engagement.

The relationship between team dynamics and employee engagement is complex and not entirely clear While having good colleagues can enhance the workplace experience, it does not necessarily lead to increased engagement with the company.

No I did not see the strong

May be yes but not too much The

No There is not clear relationship

No Good career development between the career development and the level of employee engagement?