Job satisfaction in RSM vietnam

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Hoang Manh Quang JOB SATISFACTION IN RSM VIETNAM Master of Business Administration UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Hoang Manh Quang JOB SATISFACTION IN RSM VIETNAM ID: 22140071 Master of Business Administration SUPERVISOR: Dr Nguyen Phong Nguyen TABLE OF CONTENTS CHAPTER PROBLEM IDENTIFICATION 1.1 Problem background CHAPTER BUSINESS PROBLEM JUSTIFICATION 2.1 Justify the existence of the problem 2.2 Justify the importance of the problem CHAPTER 11 CAUSE VALIDATION 11 3.1 List the potential causes of the problem 11 3.2 Cause justification 20 CHAPTER 26 SOLUTION INDENTIFICATION .26 4.1 Potential solutions development 26 4.2 Potential solution evaluation 31 4.3 Change plan design 35 CONCLUSION 38 CHAPTER 39 SUPPORTING INFORMATION .39 5.1 List of potential clues affecting job dissatisfaction existence in the Company 39 5.2 Open-interview transcript to identify the existence of the problem .39 5.3 The list of question in mini focus group to justify the root causes .43 5.4 Interview transcript in mini-focus group session 45 REFERENCE 56 i JOB SATISFACTION IN RSM VIETNAM TABLE OF FIGURES Figure 1.1: The initial Cause and Effect map Figure 3.1: Potential cause and effect of low level of job satisfaction Figure 3.2: The final Causes and Effect map TABLE OF TABLES Table 1.1: Turnover rate from 2011-2015 Table 3.1: The description of nine facets of job satisfaction Table 3.2: The potential causes of Low level of job satisfaction Table 4.2: Potential solution evaluation Table 4.3: Detailed implementation plan Table 5.4: Interview transcript in mini focus group session ii CHAPTER PROBLEM IDENTIFICATION 1.1 Problem background RSM Vietnam with over 140 employees is one of the leading mid-tier accounting and advisory firms in Vietnam Under its core purpose of being the firm of choice for growing businesses looking for high quality and personalized services, RSM Vietnam assists clients in achieving their goals through audit, tax, advisory and outsourcing services RSM Vietnam serves clients worldwide as an independent and highly integrated member of the RSM network, which is ranked among the top seven global accounting networks with more than 35,000 minds, 718 offices in over 110 countries around the world With the practical experience and knowledge built up over working years with largest international and local accounting firms, RSM Vietnam can provide high quality services to clients with competitive professional fees Although RSM Vietnam does not belong to top four biggest companies over the world, becoming one of the giant companies in Vietnam after Big (i.e KPMG, EY, PWC, Deloite) is the leading mission of the Company all the time Each year, the senior management board has a meeting with all the management team to review, assess what the Company has done in recent years and define the development plan for the next stage Within that meeting this year, all of them have agreed that although the Company has gained lots of achievement as well as certain position in the market, but the challenges has never been seriously like this time 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 Secondly, everyone knows that retaining current clients is difficult and seeking new one even harder Especially, with the outsourcing company like ours, the work depends too much on clients’ business health Clients earn profit; the Company also gets profit too, and vice versa So far, the world economy has not recovered completely after the crisis, it has required all companies to consider carefully about cost saving and use all internal resources to gain the competitive advantage and differentiation from competitor To gain that entire mission, the prerequisite is high-quality resources or human resources in particular In the time being, the number of high quality Vietnamese employees cannot meet market demand; the competition to attract those resources has increased day by day In that context, the retention is recognized as the top action right now Based on the Human resource report, the turnover rate has been increased significantly and it also shows that the revenue per employees drop down from time to time [from around 300 million per staff to 200 million per staff] In the period of time form October 2014 to June 2015, the turnover rate of the Company has been on uptrend and reaches speak as 20% (in comparison with the general rate of industry as 12% - 15%) The most difficult thing is that the staffs who left job have from three to eight years of work experience Moreover, on the evidence of fierce competition in human resources market, receiving other offer has accounted for half of leaving reasons in both 2014 and 2015 Table 1.1: Turnover rate from 2011 - 2015 Turnover rate Turnover rate of (%) experienced employees (%) 2011 14.3 10.4 2012 18.6 10.9 31 Year Other offer (%) 2013 25.6 10.6 12.7 2014 28.3 12.5 49.4 2015 22.3 27.8 55.7 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 Big client has So many ineffectively companies operated are willing business, to directly so theyEmployees compete decided by tofeel narrow reducing service that itcorporate is hard fees toscope be promoted and recognized (performance appraisal) Employees not put many efforts in daily work and project (achievement) Decrease revenue Employees are easy to be approache Increase cost (Brand identity) Employees not agree with company policies (salary, benefits, …) Less competitive compare with rival companies Low level of job satisfaction Cannot attract high quality Brain drain to rival companies High turnover rate Figure 1.1: The initial Cause and effect map Firstly, started from the middle of 2014, due to ineffective business operation, some biggest clients has implemented cost reduction plan This leads to decrease the business corporate scope with RSM Vietnam, and so one-third employee has been laid off 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 optimizing operation expenses, for instance: Quarterly Bonus, Year-end Bonus, decrease JOB SATISFACTION IN RSM VIETNAM 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 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 is to listening music or go online in the internet Of course, the company policy don’t encourage staff 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 It is difficult to jump higher position compared with your same-level coworkers, isn’t it? A: Yes Extremely difficult This is strict environment 5.3 The list of question in mini focus group to justify the root causes In your opinion, is “Recognition” one of key factors that affect your level of job satisfaction? How is it important? Do you think your income/pay is suitable for your work/position? And what you think about low income/pay resulting in low job satisfaction? Are there any promotion/reward policy for those with high performance in your working environment? How does it affect job satisfaction? Do you think that “Achievement” affects job satisfaction? At which level? In your organization, does “Organization culture” play a virtal role in employee’s job satisfaction? JOB SATISFACTION IN RSM VIETNAM In your opinion, does “Employee benefit” affect job satisfaction? If yes, please give me more specific details Beside the above factors, you think there are any other factors affecting job satisfaction in other industries? Which factor does affect at highest level and lowest level? JOB SATISFACTION IN RSM VIETNAM 5.4 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 In your Yes My company Yes Our leader often Of course I believe I totally agree with When I a good job, I opinion, is currently offer an recognizes that wherever you are that opinion make an impression for “Recognition” employee recognition employees’ working, all of you Recognition is virtal leader and other one of key program at performance by consider in our environment, colleagues And I often factors that the end of the year observing them as “Recognition” as an especially in this receive the recognition for affect your Those who had good well as evaluting important factor for auditing and it, I feel excited and feel level of job performance during through the quanlity your career In order consulting industry confident in satisfaction? the year will receive of accomplished to improve and This benefits for both accomplishing the coming How is it a Certificate of work For instance, develop the strong and weak tasks I will show them important? excellent performace she takes around organization’s employees For strong that their recognition is employee and a saying “Good job! efficiency, your talent employees, they know totally right I believe that 55 jump-up in position, Keep going” This must be discovered exactly how excellent other employees also of course So recognizes what and recognized they are and will keep think like me as recognition is employees actually constantly Because moving forward In recognition is necessary important because it have done for the you’re deserved it and contrast, for weak recognizes organization and this will make you ones, they may admit employees’ therefore that is happier and more their fault and focus capacility as well as exactly what motives satisfied more on job and put their contribution, them more efforts as well this actually makes them feel more happier and satisfied Do you think In this industry, basic Frankly speaking, my Yes Low income will Of course Income has One of factors that affect your salary is low, just on salary is not as high leads to low job an important effect on employee performance is income/pay is average when as my friends, I mean satisfaction For your satisfaction As the amount of money you suitable for compared to other besides this auditing instance, my we know, income of receive every month If your industries The and consulting work/position? mount of money I And what receive monthly is income/pay monthly our company monthly your pay is low, you can industry I think every is not fair, not is low Our company not focus completely in industry has its own matched with what should raise salary your job, and sooner or you think about low Job satisfaction features, therefore contribution I have monthly, I mean, after, you will resign I am low is affected by low compared with what I made for this excluding bonus in the same situation, income/pay income/pay, of get, for example, company I always put quarterly/ yearly And resulting in low course You can not knowledge, lots of effort in job, of course, I feel job on weekend, for job engage in an experience, , my not only in the disappointed very example, for extra money satisfaction? organization if what monthly salary is workplace, but also at much If it prolongs, I you receive does not acceptable I think the home Therefore, I will not engage in this match with what you level of income/pay usually fall in over Company anymore contribute depends on each workload situation If You may get employee (for this this amount will not disappointed or even person, it can be low be raised in the worse, resign but another it’s high), coming time, I intend maybe I will seek extra so as long as you can to move to another accept it, excluding company for higher it’s too low to meet pay your basic living conditions Are there any Yes Our company The amount of It is just a small Although we work I think any employee in promotion/ has an promotion reward, so-called amount of reward If I hard and often get this company has the same reward ard policy It means at bonus, is not move to another stressed, the idea as mine Bonus for policy for those the end of the year, if significant, just a company, with current promotion or reward our over-preformance is with high your performance is small amount knowledge as well as policy is very extreme low compared to other performance in recognized, you will Compared with the experience, I believe and difficult to peer companies in your working jump up level workload we incur that I can earn more achieve We create auditing and consulting environment? compared to your and what we money I am a little bit lots of value for my industry How does it colleagues However, contribute, it is not disappointed and company but what we whether employers realize it is extremely bored receive is really small fair Little I not know affect job difficult to get that, promotion/reward, I think my company that or not, why they keep satisfaction? even though I still low satisfaction should re-consider us disappointed about that receive bonus this issue and change quarterly and yearly policy as soon as So if you work hard, possible but what you receive form company is not equivalent, I mean reward, you may get disappointed and not want to put efforts anymore Do you think Yes I agree with Yes May be Let’s In this company, the Yes, of course For I think achivement leads that you I am currently imagine this case spritit of achievement me, setting goal and to high job satisfaction “Achievement” satisfied with my There are lots of in job is not very high achieve it in career is and vice versa If you hold affects job overall performance complicated jobs that if compared with other really important for senior or high position in satisfaction? At I really enjoy work I you must accomplish Big4 companies like anyone Because once a company, if you always which level? always want to under short time and KPMG, PWC, they reach to that, reach goals you set up, challenge myself by pressure However, E&Y,… Employees they will be satisfied you will get excited with aksing to be assigned your leader is not here just their daily with themselves and job, with the company what they have done And getting admiration more difficult tasks I aware of that, she /he assigned tasks from think high often presses you to the leader, not actively and feel confident in from other colleagues achievement will accomplish soon I ask for other tasks to keeping things going And possibly you will lead to high job can not deny that all more, even though forward engage in this company satisfaction employees want to they have free time broaden knowledge Therefore, if all as well as get employees in a experience from company just their those jobs, however if job passively, I can they are in pressure like make sure that the for longer that, they may give up company can not one day develop and compete with other peer ones In your Yes I think every I think that In our organization, organization, organization culture organization culture teams/groups revise does has an important is the second their thinking as a “Organization effect on employees’ important factor result of group culture” play a spirit as well as followed by discussions or virtal role in employees’s income/pay Imagine information collected employee’s job performance If the that you spend in my organization satisfaction? working environment hours in an Besides, people give is so strict or organization, you’re open and onest uncomfortable, they alomost work with feedback to each will lose their colleagues They can other, spend time enthusiam and be considered as your building trust with No comment Maybe but not very important for me motivation in their second family each other, whenever wok It’s so terrible Therefore, you only people state their can develop yourself view, they also ask as long as that what others think and environment makes people always help you inspired and each other learn It is passes you inspiration well-organized and for work connects people together for working more effectively This makes employees feel more confident and satisfied In your Yes As income or Yes In my opinion, I can say that it does Yes, I would like add Yes, I always conside opinion, does reward, benefit is next to salary, It can boost other comments about this factor when “Employee really important for employee benefit is employees morale and Firstly, I would like to receive any offer beside benefit” affect all employees It is the most important increase their loyalty work in an safety the basic salary The job considered as an tool in attracting and and often to get their environment, clean Health insurance for me satisfaction? If extra amount in cash retaining key staff In best work in return and clear as well, one and my family, meal yes, please give or non cash For my addition, this also of the inconvenience alllowance, Aeon me more minimize your in my work place is insurance, financial turnover rate the poor facilities (e.g support for household is program, allowance, Because it is difficult cafeteria, refrigerator, considered as the good insurance,… By for a business to microwave for staff’s way to keep key person providing adequate make serious progress meal, the WC is so and attrac goood resources benefits, you can when employees are dirty…) Secondly, I also help keep your constantly coming also like to work in a employees happy and going high and modern company, annual specific details leave, training building (e.g Bitexco, Shinwa, Pear Plaza…), because I can to gym at California Fitness or go to CJV Cinema after work Beside the above factors, you think there are any other factors affecting job satisfaction in other industries? No comment No comment No comment No comment Yes Age, Marriage status Please arrange Income/ pay Income/ pay the factors that Promotion/ affects level of reward Income/ Pay Income/ pay Promotion/ reward Promotion/ reward Employee benefit Promotion/ reward Recognition Promotion/ reward Achievement job satisfaction Achievement Achievement in order of Organization Employee benefit Organization importance culture Recognition Employee benefit culture Income/ pay Organization Achievement Employee benefit Recognition Recognition Recognition Employee benefit Organization Organization culture culture Achievement culture JOB SATISFACTION IN RSM VIETNAM REFERENCE Artz, B (2010) Fringe benefits and job satisfaction International Journal of Manpower, 31(6), 626-644 Avery, R E., Smillie, L D., & Fife-Schaw, C R (2015) Employee achievement orientations and personality as predictors of job satisfaction facets Personality and Individual Differences, 76, 56-61 Belias, D., Koustelios, A., & Gkolia, A (2015) Leadership style and job satisfaction of greek banking institutions International Journal of Management and Business Research, 5(3), 237-248 Bjarnason, T (2009) Social Recognition and Employees' Organizational Support: Department of Sociology; Sociologiska institutionen Chang, S.-C., & Lee, M.-S (2007) A study on relationship among leadership, organizational culture, the operation of learning organization and employees' job satisfaction The learning organization, 14(2), 155-185 Elliot, A J., & Church, M A (1997) A hierarchical model of approach and avoidance achievement motivation Journal of personality and social psychology, 72(1), 218 Goodwin, C., & Griffith, D (2008) Supervisor's survival kit Columbus, Ohio: Prentice Hall Hoppock, R (1935) Job satisfaction, by Robert Hoppock New York and London: Harper and Brothers Kaliski, B S., & Macmillan Reference, U S A (2007) Encyclopedia of business and finance Detroit: Macmillan Reference USA Ketchand, A A., & Strawser, J R (2001) Multiple dimensions of organizational commitment: Implications for future accounting research Behavioral Research in Accounting, 13(1), 221-251 Malik, M E., Danish, R Q., & Munir, Y (2012) The impact of pay and promotion on job satisfaction: Evidence from higher education institutes of Pakistan American Journal of economics, 2(4), 6-9 Mathieu, J E., & Zajac, D M (1990) A review and meta-analysis of the antecedents, correlates, and consequences of organizational commitment Psychological bulletin, 108(2), 171 66 Meyer, J P., Becker, T E., & Vandenberghe, C (2004) Employee commitment and motivation: a conceptual analysis and integrative model Journal of Applied Psychology, 89(6), 991 Morrison, R L (2008) Negative relationships in the workplace: Associations with organisational commitment, cohesion, job satisfaction and intention to turnover Journal of Management & Organization, 14(04), 330-344 Naveed, A., Ahmad, U., & Bushra, F (2011) Promotion: A predictor of job satisfaction a study of glass industry of Lahore (Pakistan) International Journal of Business and Social Science, 2(16), 301-305 Spector, P E (1997) Job satisfaction : aplication, assessment, cause, and consequences Thousand Oaks: Sage Publications Swathi, B (2014) Impact of organization culture on employee's job satisfaction: a study of public and private sector Sumedha Journal of Management, 3(4), Sweeney, P D., & McFarlin, D B (2002) Organizational behavior: solutions for management Boston: McGraw-Hill Irwin Vandenberg, R J., & Lance, C E (1992) Examining the causal order of job satisfaction and organizational commitment Journal of Management, 18(1), 153-167 Weiss, D J (1967) Manual for the Minnesota satisfaction questionnaire Minneapolis: Work Adjustment Project, Industrial Relations Center, University of Minnesota Wenshu, G., & Smyth, R (2010) Job satisfaction and relative income in economic transition: Status or signal?: The case of urban China China Economic Review, 21(3), 442-455 Williams, M L (1995) Antecedents of employee benefit level satisfaction: A test of a model Journal of Management, 21(6), 1097-1128 ... they have done and feel confident in keeping things going forward 31 JOB SATISFACTION IN RSM VIETNAM The final opinion is that the achievement leads to high job satisfaction and vice versa Take... at a training plan, which match with employee ‘s development plan; (ii) Organizing on job training; (iii) Committing to training plan, in case of delaying or changing it must be hold instead... to your JOB SATISFACTION IN RSM VIETNAM ? ?Satisfaction with pay is the most obvious component of job satisfaction through which workers would express dissatisfaction with rising income inequality”