Company introduction
Company background
South Tax Consulting Co., Ltd (STC), established in July 2011 and located in Phu Nhuan District, Ho Chi Minh City, specializes in providing accounting services for small and medium-sized enterprises (SMEs) in the area Led by CEO Mr Vuong, who brings over 10 years of experience in the accounting sector, the company features a straightforward organizational structure.
The company consists of 11 employees, with 10 in the Accounting department, including 4 senior accountants (2 with over 3 years of experience and 2 with more than 2 years) and 6 junior accountants with up to 1 year of experience Additionally, there is 1 delivery man responsible for transporting accounting documents between the company and its clients The CEO, Mr Vuong, oversees general management, develops new customer relationships, maintains existing client care, and supervises the accounting department The structure of the company is organized to ensure efficient service delivery to customers.
Figure 1 Company structure of South Tax Consulting Co., Ltd – March 2019 (Source: South Tax Consulting Co., Ltd)
As of the end of 2018, STC served a total of 182 customers across four primary business sectors: service, manufacturing, construction, and trading Additionally, the customer base is categorized by size, including those with annual revenues under 10 billion VND, those earning between 10 and 50 billion VND, and those exceeding 50 billion VND.
As of the end of 2018, South Tax Consulting Co., Ltd primarily serves corporate clients engaged in trading, with 65 out of 182 customers generating annual revenues of less than 10 billion VND This client base is significant as it reflects the company's focus on smaller businesses within the trading sector, in accordance with Clause 1, Article 6 of Decree 39/2018/ND-CP, enacted on March 11.
2018 about Determining Small and Medium-sized Enterprises, this group of customer is determining as micro enterprises Thus the main group of customers of STC is micro enterprises in trading.
Figure 2 Number of customers in each group of business of South Tax Consulting Co., Ltd at the end of 2018 (Source: South Tax Consulting Co., Ltd)
Customers prioritize reliability as a key measure of accounting service quality, often influenced by recommendations from their partners In this context, the ability to deliver promised services consistently and accurately is paramount STC's competitive advantage lies in its strong relationships with the tax authority in Phu Nhuan, Binh Thanh, Tan Binh, and Go Vap Districts, which benefits its clients operating in these areas Additionally, STC offers its services at competitive prices As a micro-enterprise, STC has achieved a revenue of 3.7 billion VND.
In 2018, accounting service providers in Phu Nhuan District, Ho Chi Minh City, captured only a small portion of the market share The services and pricing among these providers are largely similar, leading to intense competition Mr Vuong identified three key competitors within the area that pose a challenge to his company.
In the district, various corporations offer identical services to customers, with their pricing structures being comparable In terms of company size, their revenue in 2018 ranged from approximately 3.3 to 5 billion VND.
Name of company Year of establishing Revenue in 2018
(VND) - in rounded Price (VND/issuer client/month)
Bo Cong Anh Co., Ltd 2010 4,500,000,000 1,000,000 - 5,500,000
South Tax Consulting Co., Ltd 2011 3,703,273,200 1,000,000 - 4,000,000
Table 1 Fundamental information about competitors of South Tax Consulting Co., Ltd – March 2019 (Source: South Tax Consulting Co., Ltd)
According to Table 1, the monthly pricing for issuer clients from four companies ranges between 800,000 and 6,000,000 VND Mr Vuong noted that this pricing is influenced by the client's revenue and the volume of invoices or documents processed in their accounting reports The pricing among competitors is relatively similar, making their offers highly competitive in the market.
Services are offered by the company as follows:
Supplementary service − Classifying, arranging and documents storing accounting
Table 2 Categories of service provided by South Tax Consulting Co., Ltd – March
2019 (Source: South Tax Consulting Co., Ltd)
STC offers two primary types of services to its customers: core services and supplementary services The core service encompasses essential accounting functions, such as preparing tax reports, maintaining accounting books, and generating financial reports, which serve as the main revenue driver for the company In addition, STC provides supplementary services at no extra cost, which involve the organization, classification, and storage of accounting documents for clients.
The process for main accounting service such as preparing tax reports, financial reports and accounting books for customers at STC is presented as below diagram.
Figure 3 Process in accounting service of South Tax Consulting Co., Ltd – March
2019 (Source: South Tax Consulting Co., Ltd)
The accounting service process at STC involves several key steps, as illustrated in Figure 3 It begins with the collection of accounting documents from clients and culminates in the preparation of tax reports, financial reports, and accounting books Upon completion, these reports are submitted to the tax authority, while the comprehensive accounting books and documents for the entire calendar year are returned to the customers.
Business performance
From 2014 to 2018, the company's revenue exhibited a consistent upward trend, culminating in a significant increase of 554 million VND in 2018, which represents a growth rate of 17.6% compared to 2014 Specifically, revenue rose from 3.15 billion VND in 2014 to 3.75 billion VND in 2017, demonstrating a steady growth trajectory during this period.
19%) In 2018, the revenue decreases slightly from 3.75 billion VND to 3.7 billion VND (equivalent to the growth rate of -1.22%).
Figure 4 Revenue and profit from 2014 to 2018 of South Tax Consulting Co., Ltd (Source: South Tax Consulting Co., Ltd)
The growth rate of revenue tends to decrease from 10.57% in 2015 down to minus 1.22% in 2018 The revenue growth rate tends to decrease continuously from 2015 to
In 2018, South Tax Consulting Co., Ltd faced significant challenges, highlighting the urgent need to identify underlying issues and implement appropriate solutions to prevent further deterioration of the business.
Based on data that the company provided, revenue in each group of customer is listed as follows:
> 50 billion VND/year Total (VND)
Table 3 Revenue in each group of customer at South Tax Consulting Co., Ltd in 2018 (Source: South Tax Consulting Co., Ltd)
From Table 3, group of trading customer contribute the most in revenue of South Tax Consulting Co., Ltd in 2018, with the value of 1.99 billion VND in sales, equivalent to
The article categorizes businesses based on their annual sales, highlighting various sectors such as service, manufacturing, construction, and trading For services, companies are segmented into three groups: those with sales under 10 billion VND, those between 10 billion and 50 billion VND, and those exceeding 50 billion VND Similarly, manufacturing and construction sectors are divided into the same sales brackets, while trading businesses follow the same classification criteria This structured approach provides a clear understanding of the sales performance across different industries.
53.7% over total sales Particularly, the group of micro trading customer takes 65.8% sales in trading group This is the one that contributes the most in total revenue at STC.
Figure 5 Revenue in each group of customer of South Tax Consulting Co., Ltd in 2018
(Source: South Tax Consulting Co., Ltd)
According to company data presented in Figure 5, three key customer groups significantly contribute to revenue: trading customers with sales under 10 billion VND per year (35.29%), trading customers with sales between 10 to 50 billion VND per year (16.93%), and construction customers with sales under 10 billion VND per year (12.83%) Notably, the primary customer group for STC is trading customers with sales under 10 billion VND annually, making micro trading customers the focal point of this study The subsequent chart illustrates the revenue growth rate of micro trading customers from 2015 to 2018.
Figure 6 The revenue growth rate of micro trading customers at South Tax Consulting
Co., Ltd from 2015 to 2018 (Source: South Tax Consulting Co., Ltd)
Number of micro trading customers
Between 2015 and 2018, the revenue growth rate for the micro trading customer group showed a consistent decline, starting at 9.52% in 2015 and falling to -1.79% by 2018.
2018 In the next part, the symptom that links to sequential decrease in revenue growth rate of this group of customer will be figured out.
Symptoms
As interview with Mr Vuong – CEO:
In recent years, my company has experienced a decline in performance, with a slowing revenue growth rate primarily affecting our core customer base of micro trading clients We are witnessing an increase in customer attrition, as more existing customers leave than new ones join, which significantly impacts our overall revenue.
Mr Vuong highlighted a recent slowdown in revenue growth, attributing it to a decline in existing customers that has outpaced the influx of new clients, ultimately affecting the company's revenue The accompanying chart illustrates the year-end number of micro trading customers at STC over the specified period.
Figure 7 Number of micro trading customers at the year end in the period of 2014 –
2018 (Source: South Tax Consulting Co., Ltd)
In general, the number of micro trading customers increase in the period of 2014 –
2018, in particularly, there were from 53 customers in 2014 up to 64 customers in
2018 However, the growth rate of customer of the firm tends to decrease in this period We can see that the increment in number of customers each year from 2014 to
2018 has decreased continuously in this period of time In 2018, number of micro trading customers in STC is 64, decreased 2 customers compared to the one in 2017.
Between 2014 and 2018, STC experienced a decline in its customer base, with the number of clients discontinuing their services surpassing the influx of new customers This trend was particularly evident in 2018, when the firm saw a significant drop in micro customers utilizing its accounting services.
During this period, 23 firms represent 29.87% of STC's total ex-customers, making them the primary customer group that significantly influences STC's overall revenue.
At the beginning of year 47 53 61 65 66
At the end of year 53 61 65 66 64
Table 4 Fluctuation in number of micro trading customer of South Tax Consulting Co., Ltd in the period of 2014 - 2018 (Source: South Tax Consulting Co., Ltd)
From 2014 to 2018, the number of customers leaving increased steadily, rising from 2 to 8, with a significant spike between 2016 and 2018 Specifically, there were 5 customers who left in 2016, followed by 7 in 2017, and 8 in 2018 Conversely, the number of new customers declined during the same period, decreasing from 9 in 2016 to just 6 in 2018.
From 2014 to 2018, there was a significant decline in customer numbers, particularly among micro trading enterprises, reflecting a broader downturn in the company's overall customer portfolio This trend suggests that the challenges faced by micro trading enterprises may be indicative of issues affecting the entire customer base Additionally, the period experienced notable fluctuations, highlighting the volatility in customer engagement during these years.
Between 2016 and 2018, STC experienced a decline in new customers and a loss of existing customers within its micro trading segment, which significantly impacted overall sales growth.
STC's revenue relies on both existing and new customers, making the decline in total customer numbers a significant concern To address this issue, we must investigate two key factors: the increasing departure of existing customers and the decrease in new customer acquisition Applying the Pareto Principle, which suggests that a small percentage of inputs often leads to a large portion of outputs, we will concentrate on micro trading customers, as they may reflect broader customer trends at STC Understanding the challenges faced by this segment could reveal underlying issues affecting the entire business Moreover, research highlights the importance of nurturing long-term relationships with existing customers to enhance profitability Consequently, this study will prioritize understanding the reasons behind the growing number of existing micro trading customers leaving STC.
Why number of existing micro trading customers leaving the company increase?
As responses of Mr Sang – CEO of Minh Sang Co., Ltd:
Mr Sang, the 38-year-old CEO of Minh Sang Co., Ltd, expressed his dissatisfaction with STC's accounting services, citing inaccuracies in his company's tax reports that led to fines imposed by the tax authority.
Minh Sang Co., Ltd faced penalties from the tax authority due to South Tax Consulting Co., Ltd's preparation of tax reports that inaccurately reflected their corporate tax value As a result, customers were required to submit supplementary taxes and pay fines, leading to financial losses and a decline in trust regarding the quality of accounting services provided by South Tax Consulting Co., Ltd.
As interview Mr Vuong – CEO of South Tax Consulting Co., Ltd:
To meet customer expectations, it is essential to ensure both accuracy in tax report preparation and timely delivery of these reports Recently, STC has faced several issues, particularly concerning inaccurate calculations of clients' corporate income tax, highlighting the need for improvement in these areas.
As responses of Mr Vuong, in accounting service, customers require for accuracy in preparing tax reports and timeliness in delivery tax reports from accounting service
Recent interviews with Mr Vuong and data from South Tax Consulting Co., Ltd reveal a significant issue: inaccurate calculations of clients' corporate income tax Following the 2018 tax finalization, 25 customers were affected, leading to the loss of 8 micro trading clients—highlighting a critical challenge for the firm.
According to responses from Mr Vuong:
In corporate tax finalization, companies often face penalties from tax authorities due to underreported corporate tax submissions When a firm submits insufficient tax, it must pay supplementary tax along with fines for the late submission of that amount.
Mr Vuong highlighted that if his company prepares customer tax reports reflecting a deficit in corporate tax value, it results in customers submitting insufficient corporate taxes to the tax authority During tax finalization, the tax authority identifies this shortfall and requests the corporate to submit supplementary taxes along with fines for late submission Consequently, customers face penalties for inadequate tax submissions, leading to dissatisfaction with the quality of accounting services provided by STC, ultimately resulting in the termination of their accounting service contracts Specific cases of inaccuracies in corporate tax values in tax reports are detailed below.
No Name of customer Year of report Missing tax (VND) Total fine (VND)
Table 5 Details about cases that inaccurate in tax reports in micro trading group – announced by tax authority in 2018 (Source: South Tax Consulting Co., Ltd)
In 2018, STC inaccurately prepared tax reports for eight micro trading customers, leading to their termination of accounting services with the company The tax authority imposed a total fine of 103,012,137 VND on these clients due to discrepancies in corporate tax values reported Consequently, customers were required to pay corporate taxes based on STC's erroneous calculations Upon review, the tax authority identified these inaccuracies, resulting in penalties for the firms, which included submitting corrected tax reports and fines for late submissions.
Problem analysis
Problem identification
In accounting process in STC, there are four elements that participate in the process to make tax reports such as customers, accountants of STC, accounting supervisor in
Mr Vuong's company, STC, utilizes CeAC accounting software, which may contribute to errors in clients' corporate income tax reports To identify the specific factors leading to these mistakes, an interview was conducted to analyze the elements affecting the accuracy of the tax reports prepared by STC for its customers.
„After reviewing inaccurate cases that announced by tax authority, I figured out that faults came from my company.‟ (Mr Vuong, CEO of STC, 34 years old)
In an interview with Mr Vuong, it was revealed that inaccuracies in customer tax reports, particularly deficits in reported tax values, result in fines from tax authorities If STC prepares incorrect corporate tax values in these reports, customers may inadvertently submit incorrect tax amounts, leading to complications during tax finalization when authorities identify these discrepancies To address this issue, an in-depth interview with Mr Vuong and his accounting team was conducted to uncover the underlying causes of these mistakes in tax report preparation The following section will present an initial cause-and-effect map summarizing the findings from the interview.
3.1.1 Initial cause and effect map
An in-depth interview with STC's CEO, Mr Vuong, and ten accountants from the Accounting department revealed key issues impacting corporate tax reporting Three primary symptoms emerged: a deficit in corporate tax values reported by clients, inadequate tax submissions to the tax authority, and subsequent penalties for insufficient submissions The root cause of the tax value deficit lies in discrepancies in reported sales or costs Accountants identified several contributing factors, including inaccurate invoice entries in accounting software, insufficient invoice documentation, inadequate manipulation of accounting software, and incorrect account classifications.
Symptoms supervisor, insufficient manager‟s supervision that results in hidden mistakes in client‟s tax reports leads to discrepancy in sales or costs value in client‟s tax reports.
Figure 8: Initial cause and effect map (Author synthesis)
Discrepancy in sales or costs value in client’s tax reports
South Tax Consulting Co., Ltd has identified discrepancies in client sales and costs that impact corporate tax values, as noted by Mr Vuong and his accountants These discrepancies arise from occasional oversights in software processes and incorrect account determinations made by accountants Each of these issues will be detailed further.
Inserting inaccurate invoice value to accounting software
When preparing tax reports at STC, customers submit their accounting documents to the service provider Upon receiving these invoices, STC accountants input the information into their accounting software However, it is common for STC accountants to make mistakes by entering inaccurate invoice values into the system.
As response from Ms Oanh – accountant in STC:
Accurate input of invoice values is crucial for maintaining precise customer sales records and ensuring correct tax reporting Inaccuracies in these figures can lead to significant discrepancies, impacting financial assessments and compliance.
Inaccurate invoice values input by STC's accountants lead to discrepancies in revenue and expenses for customer firms, ultimately affecting their corporate tax submissions Consequently, many STC clients find themselves submitting insufficient tax amounts, resulting in the need for supplementary tax payments and fines for late submissions to the tax authority.
In 2018, following tax finalization, several instances arose where my accountants entered inadequate output invoices from customers into the accounting software, resulting in a lower reported revenue in our tax filings - Mr Vuong, CEO of STC, 34 years old.
Mr Vuong emphasized that inadequate input of invoices affects the corporate tax obligations that businesses must report to the tax authority During corporate tax finalization, the tax authority can verify the output invoices submitted by the business By reviewing the accounting documents and tax reports, they can identify discrepancies in the number of invoices reported If a corporation submits fewer output invoices, it leads to a reported revenue that is lower than the actual revenue, resulting in a negative discrepancy in corporate tax Consequently, the tax amount initially submitted by the firm is insufficient, necessitating the submission of supplementary taxes and incurring fines for late tax submissions.
Insufficient manipulation on accounting software; Wrong account determination
In an interview, Mr Vuong highlighted the crucial importance of accounting software in his business operations He noted that appropriate accounting software significantly reduces manual data manipulation and minimizes input errors Currently, his company utilizes the basic package of CeAC accounting software, which has been effective in supporting his tasks However, Mr Vuong pointed out several inconveniences with the software that could potentially affect the accuracy of customer tax reports.
Despite advancements in software, key functions like account determination, account closing, and the handling of coincident codes remain manual processes This reliance on manual checks by accountants can lead to inaccuracies in tax reporting, as highlighted by Mr Vuong, CEO of STC.
In an interview with Ms Nga, an accountant at STC, it was revealed that she overlooked a critical step in the accounting software while preparing tax reports for T&F Co., Ltd Specifically, she failed to close and forward the revenue account for May 2017, resulting in a revenue shortfall of 527 million VND This discrepancy adversely affected T&F Co., Ltd's revenue for the second quarter of 2017, leading to a corresponding decrease of 105 million VND in the income tax owed to the tax authority Consequently, T&F Co., Ltd is required to submit supplementary tax and face penalties for the late submission Additionally, errors in account determination by accountants can result in inaccuracies in clients' tax reports, as highlighted by Ms Thanh, another accountant at STC.
„Account determination is very important However, with inexperienced accountants, it is difficult for them to accurately determinate account in complex case.‟ (Phan Thanh Thanh, STC accountant, 24 years old)
Inexperienced accountants, as explained by Ms Thanh, often struggle with account determination, especially when using current accounting software at STC, which requires manual input and increases the likelihood of errors Each account serves a specific purpose, and selecting the wrong account for an expense can compromise the accuracy of a client's tax reports Ms Tuyet also shared her experience with Hanh Ngan Co., Ltd, acknowledging that her lack of experience and knowledge led to frequent mistakes in account selection while preparing tax reports Consequently, inadequate handling of accounting software and incorrect account determination can significantly affect the precision of the tax reports prepared by STC for its clients.
Insufficient manager’s supervision; Hidden mistakes in client’s tax reports
According to responses from Mr Vuong and his accountants, they mentioned about lacking prompt supervision from manager, in specific:
Currently, there is insufficient oversight from manager Mr Vuong to effectively review the work outcomes of the accounting team or to provide timely support.
In the accounting process, the manager, Mr Vuong, is responsible for overseeing three key stages: after accountants input data into the accounting software, following the export of draft tax declarations, and after draft tax reports are generated However, due to his multiple roles—such as developing new clients, managing existing ones, supervising accounting, and general management—he struggles to dedicate adequate attention to supervising the accounting team's output This lack of focus has led to numerous undetected mistakes, compromising the accuracy of client tax reports Additionally, Mr Vuong sometimes assigns supervision of junior employees to senior staff without proper cross-checking, further exacerbating the issue, as these senior employees also lack the time and capacity to effectively manage both their own tasks and the oversight of junior accountants Consequently, the absence of sufficient managerial supervision results in significant inaccuracies in client tax reports, highlighting the critical importance of Mr Vuong's role in ensuring the quality of accounting work in his company.
Problem validation
Analysis reveals key potential issues including work overload, employees lacking necessary skills, insufficient supervisory support, and low motivation Specifically, work overload is a significant concern, particularly during the first quarter of the year, commonly referred to as the "busy season" in the accounting field, when work demands peak.
During tax season, accounting professionals face significant challenges such as work overload, time pressure, and the necessity for overtime Mr Vuong highlighted that his company experiences a high workload during this period, a common scenario shared by other accounting firms He views working under tight deadlines and the need for overtime to submit clients' tax reports to authorities as standard practice in the industry, indicating that these issues are typically managed and expected by employees.
Mr Vuong faces challenges in recruiting qualified employees due to his company's small size, which leads to high turnover as workers often leave for better opportunities within two years Consequently, he hires fresh graduates in accounting, resulting in inexperience and mistakes Acknowledging this issue, Mr Vuong believes that training is essential for employee development Research supports that training plays a crucial role in enhancing employee skills and overall corporate performance Accepting the realities of his situation, Mr Vuong has committed to training and guiding his employees to mitigate these challenges.
Insufficient supervisor support significantly impacts employee performance, as highlighted by research emphasizing the supervisor's role in maintaining work standards Mr Vuong of STC acknowledged that his extensive managerial responsibilities limited his ability to support his employees adequately Literature describes the chaotic and fragmented nature of a small manager's workday, which aligns with STC's challenges Mr Vuong believes he must directly oversee key functions to mitigate potential issues Additionally, he admitted to neglecting employee motivation, focusing instead on maintaining customer relationships for the company's survival This short-term perspective reflects a common trend among small business owners who prioritize basic needs over long-term employee investment However, recognizing the importance of motivating employees is essential for effective management Mr Vuong is now inclined to explore factors that could enhance employee motivation, identifying it as a critical issue to address for improving STC's business performance.
Main problem definition and consequences
Main problem definition
The term "motivation" originates from the Latin word "movere," meaning "to move or stimulate." It is defined as the desire and willingness to exert effort to achieve corporate goals, driven by individual expectations, needs, or desires Motivation is an intangible concept that propels individuals to take action There are two types of motivation: intrinsic and extrinsic Intrinsic motivation stems from internal desires and is self-driven, while extrinsic motivation involves external factors, where organizations implement intentional actions and programs to encourage their employees.
Organizational performance is the ultimate objective guiding all strategies within a firm, reflecting its capacity to achieve stated goals through effective operations and governance Key factors influencing this performance include financial performance, operational efficiency, and employee attitudes and behavior Among these, employee motivation plays a crucial role in shaping attitudes and behaviors, ultimately impacting overall organizational performance.
Work motivation encompasses internal and external urges that enhance work-related behaviors, shaping their intensity and duration Key factors influencing employee motivation include salary, healthy relationships with colleagues, responsibility, career advancement, job security, recognition, favorable working conditions, company policy, engaging tasks, and autonomy Research indicates that motivation fosters a positive employee attitude, commitment, collaboration, and a sense of belonging, ultimately enhancing performance and work quality while reducing stress, errors, job dissatisfaction, and turnover Consequently, this drives overall company success.
Main problem consequences
According to an interview with South Tax Consulting Co., Ltd, the firm’s inaccurate preparation of tax reports has resulted in clients submitting insufficient corporate tax filings, leading to fines from the tax authority This has caused dissatisfaction with the accounting services provided by STC, prompting clients to terminate their contracts Consequently, there has been a notable increase in customer defections within the micro trading sector during this period.
From 2014 to 2018, the micro trading group experienced a slower increase in new customers compared to the rate of customer defections, which negatively affected the company's revenue Analyzing the overall data for the entire company reveals similar trends, as both new customer acquisitions and customer defections were recorded across all customer groups.
At the beginning of year 152 170 185 189 190
At the end of year 170 185 189 190 182
Table 12 Fluctuation in number of customers at South Tax Consulting Co., Ltd in
2014 – 2018 (Source: South Tax Consulting Co., Ltd)
Refer to Table 12, the number of customers cut accounting service contract with STC dramatically increase in the period of 2014 – 2018, in specific, 25 customers leaving in
Between 2014 and 2018, STC experienced a significant increase in customer attrition, with the number of customers leaving rising to 25 in 2018, marking a 3.56-fold increase from just 7 in 2014 Additionally, the company saw a 32% decline in new customers in 2018 compared to 2014 This dual decrease in both new and existing customers has adversely affected STC's revenue The accompanying chart illustrates the revenue growth rate trend for STC from 2015 to 2018.
Figure 10 The growth rate of revenue from 2015 to 2018 of South Tax Consulting Co., Ltd (Source: South Tax Consulting Co., Ltd)
Refer to Figure 10, the growth rate of revenue decreases consecutively from 2015 to
From 2015 to 2018, South Tax Consulting Co., Ltd experienced a significant decline in revenue growth, dropping from 10.57% to -1.22% This downward trend indicates a deterioration in the company's business performance, which is further exacerbated by the issue of inaccurately prepared tax reports for customers.
Service quality is primarily assessed through two key factors: promptness and accuracy in service delivery Low perceived service quality adversely affects customer satisfaction, which in turn diminishes the quality of the relationship between customers and service providers A weakened relationship reduces the likelihood of repeat business and the chances of customers recommending the service provider to others Consequently, this decline in relationship quality negatively impacts the overall performance of the service provider.
Working office impacted by so much noise
No promotion and career advancement for current employee
No appreciation for job well done
Unqualified for mid level supervisor position
The lack of recognition from management for an outstanding employee at STC, coupled with errors in customer tax reports that resulted in fines, has significantly impacted the company's performance This situation has led to an increase in clients terminating their accounting service contracts due to the unacceptable quality of service provided Additionally, it has strained relationships between STC and its customers, making them reluctant to recommend STC's services to others Consequently, addressing this issue promptly is crucial for the overall performance and reputation of STC.
Cause analysis
Potential causes
Based on the information collected from interview, main ideas are summarized in the following fish bone diagram.
Figure 11 Fish bone diagram of main problem in South Tax Consulting Co., Ltd(Author synthesis)
The primary issue identified is low employee motivation, which negatively affects the accuracy of customer tax reports prepared by accountants at STC To explore the factors influencing employee motivation within STC, in-depth interviews were conducted with Mr Vuong and his accounting team.
5.1.1 No appreciation for job well done
As Mr Vuong mentioned in the interview:
Mr Vuong, the 34-year-old CEO of STC, believes that a performance appraisal system is unnecessary for his small company, which consists of just 10 accountants.
Mr Vuong, managing a small company with 10 employees, has not established a performance appraisal system to assess his accountants' performance Consequently, he does not categorize employees as high or low performers, believing that fulfilling assigned tasks within deadlines is simply part of their job responsibilities.
Accountants at STC reported that the absence of a performance appraisal system leads to equal evaluation of their work results, which negatively affects their motivation to perform at their best.
Phan Thanh Thanh, a 24-year-old accountant at STC, expresses that the lack of employee performance evaluations leads to indifference towards work results, as there is no distinction between high and low performance.
Accountants at STC perceive their responsibilities as merely meeting deadlines for customer tax reports, regardless of the quality of their work This perspective leads to a uniform outcome in the eyes of Mr Vuong, as they prioritize timely completion over the effectiveness of their performance.
Mr Vuong takes responsibility for identifying and correcting errors in customer tax reports, guiding accountants in the process When tasks are performed correctly, no issues arise, highlighting a lack of intrinsic motivation among accountants due to the absence of a performance appraisal system This situation reflects the need for a structured evaluation to enhance accountability and motivation in their work.
A performance appraisal system is a crucial factor in enhancing employee motivation, significantly influencing both intrinsic and extrinsic motivation levels within an organization The absence of such a system can negatively affect employee motivation at STC, highlighting its importance in fostering a productive work environment.
5.1.1.2 No compliment from manager for outstanding employee
„I do not think that a compliment is important.‟ (Mr Vuong, CEO of STC, 34 years old)
Mr Vuong believes that praising employees holds little significance, viewing their salary as the primary reward for their work He feels that since employees are paid for their efforts, there is no need for additional compliments As a result, he seldom acknowledges the accomplishments of his accountants, even when they perform their duties exceptionally well.
As responses of accountants in STC:
Mr Vuong seldom offers praise to his team, leading to a perception that he is indifferent to their need for acknowledgment from leadership, as expressed by Tran Thi Lan, a 24-year-old accountant at STC.
Accountants at STC express dissatisfaction with their manager's lack of praise and appreciation for their work, leading to a monotonous work environment where motivation is low Employees feel that their primary source of happiness is their monthly salary, rather than encouragement from management Research indicates that public recognition, such as a simple "thank you," significantly boosts employee morale and motivation The absence of compliments from managers can negatively impact employee motivation, suggesting that STC's lack of recognition may contribute to decreased job performance and overall enthusiasm among staff.
5.1.2 No promotion and career advancement for current employee
5.1.2.1 Unqualified for mid level supervisor position
As accountants‟ responses, they feel hesitate to commit for long working at STC due to lacking of promotion and career development In specific, Ms Oanh stated as follows:
„It is a pity that even if I work for STC for a long time, I still have no promotion or career developing here.‟ (Bui Thi My Oanh, STC accountant, 25 years old)
Mr Vuong acknowledges that the small size of STC limits career advancement opportunities for even the most outstanding employees, which can negatively affect their long-term motivation to stay with the company Consequently, some employees may opt to transition to larger firms after two years at STC.
Mr Vuong, the 34-year-old CEO of STC, is seeking a mid-level supervisor to effectively manage his accounting team, but unfortunately, he cannot promote any current employees as they do not meet his qualifications.
Mr Vuong is unable to select any of his current accountants for the Chef Accountant position at STC due to a lack of necessary experience, knowledge, skills, and abilities This situation creates a perception among employees that there is no future for career growth at STC, ultimately diminishing their motivation to work for the company According to Maslow's hierarchy of needs, self-actualization represents the highest level of fulfillment, which is currently unattainable for the staff.
Research indicates that employees do not anticipate staying in the same role indefinitely; when companies offer advancement opportunities, it can significantly enhance motivation and meet employees' career aspirations In the context of STC, the lack of qualification for mid-level supervisor positions has led to stagnation in promotions and career growth, contributing to low motivation among accountants at the firm.
As accountants‟ responses, they stated that they did not feel trust form manager, in details:
Cause validation
Mr Vuong identified key factors affecting employee motivation in his company, including a lack of appreciation for good work, limited promotion opportunities, and an unpleasant workspace He noted that the small size of the company makes a performance appraisal system impractical, preventing him from recognizing employee achievements or providing monetary incentives Additionally, the absence of mid-level management roles complicates career advancement, as current employees lack the necessary qualifications and Mr Vuong has reservations about their long-term commitment Consequently, the main issue affecting motivation is the unpleasant work environment Research indicates that a positive workspace significantly enhances employee productivity and satisfaction, ultimately impacting work quality.
Main cause and sub causes Main problem Symptoms
Deficit in corporate tax value in client‟s tax reports Poorly designed office
Working office impacted by so much noise Insufficient in customer‟s tax submission to tax authority
Decrease work quality Poorly equipped office
Tax authority‟s punishment for insufficient tax submission
Decrease organizational performance performance (40, 41, 58) Moreover, as Moodle et al concluded in their study, good working condition has positive impact on employee working motivation (40).
Therefore, solving the element of unpleasant work space can help enhance employee work motivation in STC.
In general, final cause and effect map in the case of STC is presented as follows:
Figure 12 Final cause and effect map (Author synthesis)
Poorly designed and equipped offices, along with excessive noise, create an unpleasant work environment that lowers employee motivation This decline in motivation negatively affects the quality of work performed by accountants at STC, resulting in frequent mistakes in customer tax reports Such errors lead to a deficit in corporate tax values, causing clients to submit insufficient taxes to the tax authority Consequently, clients face fines for these discrepancies, leading to dissatisfaction with the accounting services provided by STC and prompting them to withdraw their business, ultimately impacting STC's revenue.
Alternative solutions
Alternative solution 1: Investing in necessary equipment for working
Recent research highlights that the Internet has significantly transformed the business landscape, with cloud computing emerging as a key technological advancement This innovation has notably impacted the accounting sector, leading to a rise in the adoption of cloud accounting software Benefits of this software include enhanced convenience, ample data storage capacity, and improved data processing capabilities Essential tools for accountants, such as computers and accounting software, are crucial for boosting work motivation Therefore, investing in 10 new computers and cloud accounting software is recommended as a viable solution The associated costs and benefits of this investment will be detailed in Table 16.
Types of enterprise Price for software
Price for installing, training, consulting (VND)
Total cost for accounting software (2) 47,400,000
Table 16 Costs for alternative solution 1 (Author synthesis)
Besides monetary cost for investing in cloud accounting software, there are several disadvantages that STC should consider in advanced such as customer information security and high initial investment (63).
Cloud accounting software offers numerous advantages, including automatic data updates, rapid data processing, and ample storage capacity By transitioning to cloud-based solutions, companies like STC can significantly reduce costs associated with system upgrades, maintenance, and server errors, which currently total 500,000 VND per month This shift can lead to annual savings of up to 6,000,000 VND Additionally, cloud accounting minimizes unnecessary manual tasks, reducing the likelihood of errors in data entry It also consolidates various reporting functions, allowing accountants to generate comprehensive reports without the need for separate Excel preparations, thereby ensuring data consistency and accuracy.
The new computers at STC offer significant advantages over the old models, featuring a robust configuration that reduces crashes and enhances data processing speed According to information from Phong Vu, the HP Slimline 270-P013L is equipped with an Intel Core i5 7400T processor, operating at 2.40 GHz and boosting up to 3.00 GHz, along with two RAM slots supporting speeds of up to 4GB In contrast, the outdated computers utilize a Core 2 Duo processor with a lower speed of 1.87 GHz This improved configuration not only minimizes system crashes but also ensures seamless compatibility with cloud accounting software, making it a valuable upgrade for STC.
Alternative solution 2: Redecorating the current office
The current office design is inadequate, prompting the recommendation to redecorate Mr Vuong's house, spanning 60 m² across two floors, will be repurposed, with the first floor designated as office space and the second for family living The accounting team’s area will be expanded to 35 m² and feature soundproofed walls to minimize noise disruptions Research indicates that an appropriate office design can significantly enhance both work quality and employee motivation Additionally, effective soundproofing is crucial for reducing noise pollution, particularly in urban settings Studies also highlight the importance of proper arrangement and furnishing in the workplace, which can positively influence employee performance and attitudes Furthermore, incorporating green spaces in urban offices is beneficial for health and boosts motivation among workers.
To enhance employee satisfaction and health, the company should consider redesigning their office by incorporating green spaces and soundproof walls Research indicates that a well-designed workspace significantly contributes to employee well-being Therefore, investing in appropriate furniture and a professional aesthetic will create a more conducive working environment The costs and benefits of this proposed solution are detailed below.
Cost for contractors (work package contract) 160,000,000
Table 17 Cost for alternative solution 2 (Author synthesis)
Redecorating the office offers numerous advantages, including increased employee satisfaction and motivation, which can lead to enhanced productivity It also minimizes unexpected noise distractions, contributing to a better working environment Additionally, a well-designed office layout supports employees' health and well-being Feedback from STC accountants indicates that a revamped office can effectively separate workspaces from home life, creating a more professional atmosphere that fosters focus and concentration.
Alternative solution 3: Renting new office
Renting a new office can significantly enhance employee satisfaction and motivation, as highlighted in various studies The right office environment not only fosters a positive workplace culture but also plays a crucial role in business growth and development.
STC's current office location is unsuitable due to excessive noise, negatively impacting accountants' productivity As the company grows, Mr Vuong's private residence will no longer suffice as an office space Therefore, STC should consider renting a new office in a quieter, more appropriate location with ample space Research indicates that a well-designed workspace enhances employee performance and motivation, making it essential for STC to redecorate and optimize their office environment Additionally, effective soundproofing can mitigate noise pollution, especially in street-adjacent offices Proper furniture arrangement and professional decor are also crucial for improving employee attitudes and performance In summary, STC should prioritize renting a suitable office that allows for thoughtful design and furnishing to foster a professional working atmosphere.
Costs for renting and office decoration are as follows:
Renting price for 2 first year (VND/year) 216,000,000
Renting price for next 3 years (VND/year) 237,600,000
Length of renting contract 5 years
Table 18 Cost for renting – alternative solution 3 (Author synthesis)
Cost for contractors (work package contract) 160,000,000
Table 19 Costs for office decoration – alternative solution (Author synthesis)
Renting a new office offers numerous advantages, as highlighted by STC accountants It effectively separates the workspace from the manager's private home, fostering a professional environment that allows employees to concentrate better This dedicated office space minimizes distractions from unexpected noises, leading to increased employee satisfaction and motivation Furthermore, it enhances work quality and productivity while promoting good health among employees.
Solution justification
As discussion with Mr Vuong about the budget for best solution, Mr Vuong said that:
„With net profit of 1,156,360,479 VND in 2018, I can spend around 400,000,000 VND for this investment.‟ (Mr Vuong, STC CEO, 34 years old)
After evaluating the costs and benefits of three alternative solutions, a discussion with Mr Vuong was held to determine the most suitable option for his company He concluded that renting a dedicated office space, rather than operating from his home, aligns better with his long-term vision Additionally, he recognizes the importance of investing in new computers and accounting software, which are both affordable and essential for his business operations.
Mr Vuong advocates for a combination of alternative solutions 1 and 3 to enhance working conditions for accountants at STC, emphasizing that improved environments can significantly boost employee motivation Research highlights the critical role of favorable working conditions in motivating employees, particularly among female workers Given that all accountants at STC are female, it is evident that their work motivation is influenced by the quality of their working environment, as supported by existing literature.
Accountants at STC expressed that having a new professional office equipped with modern technology and free from noise pollution could significantly enhance their motivation and productivity at work.
The excitement surrounding the company's new office and upgraded equipment is palpable, as it signifies a positive shift in the work environment Improved working conditions are likely to enhance employee motivation and satisfaction, making the office a more appealing place to be.
Accountants express a strong desire for a new office equipped with high-quality tools to enhance their daily work experience The transition to a new workspace will also eliminate disruptive noises, fostering a more focused environment By improving working conditions, the company can significantly boost employee motivation and encourage them to return to the office.
Types of enterprise Price for software
Price for installing, training, consulting (VND)
Total cost for accounting software 47,400,000
Cost for contractors (work package contract) 160,000,000
Renting price for 2 first year (VND/year) 216,000,000
Renting price for next 3 years (VND/year) 237,600,000
Length of renting contract 5 years
Renting price for 2 first year (VND/year) 216,000,000
Renting price for next 3 years (VND/year) 237,600,000
Table 20 Costs for best solution (Author synthesis)
The optimal solution involves combining alternative solution 1 and alternative solution 3, focusing on investing in essential equipment and renting a new office space The total initial investment amounts to 380,000,000 VND, which includes 326,000,000 VND for purchasing 10 new computers and office decoration, along with the first-month rent of 18,000,000 VND and a deposit of 36,000,000 VND This investment is within the budget allocated by STC, making it a feasible option for implementation.
Change plan design
Objectives
The objectives to implement the selected solution are:
− Providing necessary equipment that qualifies for accountant‟s work
− Creating professional working office for employees at STC
− Limiting noise pollution that can impact accountant‟s work
Targeted outcomes
An in-depth interview was conducted with Mr Vuong and his accountants to understand their anticipated outcomes regarding the proposed change plan.
− Number of mistakes that happen in accountants‟ daily job that related to customer‟s tax reports will decrease at least 70% after 6 months working in new office with appropriate equipment.
After six months of relocating their office, accountants can expect a reduction of at least 10% in the time spent on daily tasks This change will effectively shorten their workday from 10 hours to 9 hours, enhancing overall productivity.
− Feedback from employees about new office: 100% positive feedback from employee that their motivation increases after working in new office.
After 6 months working in new office, the work quality and feedback of accountants inSTC will be recorded for later check whether the aforesaid action plan positively impacts their working motivation or not.
Action plan implementation
The action plan, based on the selected optimal solution, encompasses 12 key tasks set to be executed over a duration of 53 days, from July 1, 2019, to September 11, 2019 Mr Vuong and his accountant will be responsible for implementing this plan Further details, including a Gantt chart, are provided for clarity.
No Task Duration Start date Personnel involved
1 Purchasing computer 3 days 1-Jul-19 Mr Vuong
2 Purchasing - installing accounting software 3 days 4-Jul-19 Mr Vuong
3 Learning new accounting software 5 days 9-Jul-19 Mr Vuong + all accountants
4 Finding suited location and contact for renting office 7 days 16-Jul-19 Mr Vuong
5 Negotiating and signing renting contract 1 day 25-Jul-19 Mr Vuong
6 Contact for designer 3 days 26-Jul-19 Mr Vuong
7 Discuss for decorating the office 7 days 30-July-19 Mr Vuong
8 Negotiating and signing decoration contract 1 day 8-Aug-19 Mr Vuong
9 Decoration time 15 days 9-Aug-19 Outsource
10 Moving furniture to new office 2 days 30-Aug-19 Mr Vuong + all accountants
11 Announce to customers about changing office address 7 days 12-Aug-19 Mr Vuong + all accountants
12 Changing company address in The
Department of Planning and Investment 7 days 3-Sep-19 Mr Vuong
Table 21 Action plan (Author synthesis)
Figure 13 Gantt-chart for action plan (Author synthesis)
Detailed description and objective for specific task are listed as follows:
Finding computer with strong configuration to fit new accounting system
Going to electronic supermarket to check and compare price and model of computer that is most suitable (For example: Dien May Xanh, Nguyen Kim, FPT…)
Purchasing and installing new accounting software
Contact accounting system firm to purchase cloud accounting software
Contacting to the firm that has most suited accounting system – Fast Accounting Co., Ltd Dealing and purchasing necessary cloud accounting software
Training for using new accounting software
Mr Vuong and all accountants will join in training course to learn how to use new accounting software
The training course takes 5 days
Finding suited location and contact for renting office
Finding suited location Contacting for renting office
Finding suited location It needs to meet the requirements: located in Phu Nhuan District, square around 60 – 80 m 2 , airy space, soundproof wall and suitable price.
Contacting to building owner for renting
5 Negotiating and signing renting contract
Negotiating for suitable price, length and other condition in the contract and signing renting contract
Finding con contacting for design corporation for decoration consulting
Discuss for decorating the office
Discuss the idea with designer and finding the best decoration style for the office
Discuss with designer about the idea for an office with open and green space in order to help the employee feel comfortable when they work in the office
Negotiating and signing decoration contract
Negotiating for suitable price and other condition in the contract and signing decoration contract
9 Decoration time Waiting for designer to decorate the office
Waiting for designer to decorate the office Follow the timeline of decorating
Acceptance for completing decoration contract 10
Moving furniture to new office
Moving to new office Moving furniture to new office
Announce to customers about changing office address
Aware customers with company address changing in order to contact in case needed
Announcing to customers about company address changing by email/letter/direct call
Changing company address in The
Announcing to The Department of Planning and Investment about changing company address
Announcing to The Department of Planning and Investment for changing company address
Waiting for The Department of Planning and Investment process document for updating company address
Table 22 Detailed description and objective for specific task (Author synthesis)
Conclusion
South Tax Consulting Co., Ltd has faced a decline in revenue primarily due to customer attrition linked to dissatisfaction with service quality, particularly inaccuracies in accounting reports Investigations revealed that low employee motivation is a significant underlying issue, driven by a lack of appreciation, limited career advancement opportunities, and an unpleasant work environment To address the core problem of an unsatisfactory workspace, the company plans to invest in new equipment for accountants and rent a new office This strategic move aims to enhance employee productivity by creating a focused, professional environment free from distractions, ultimately improving customer satisfaction and revitalizing the company's growth trajectory.
Supporting information
Methodology
This study aims to identify the primary issues and root causes contributing to inaccuracies in accounting reports for STC, while considering time and cost constraints It will also propose effective solutions to address these challenges.
− Primary data: Qualitative research and quantitative research
− Secondary data: STC‟s company structure, accounting process, financial statements reports, customer statistics, literatures in journals and researches. Type of research tools to collect primary data:
− Qualitative research: in-depth interview and focus group (CEO – Mr Vuong, STC accountants and micro trading customers)
− Quantitative research: survey for accountants at STC
Interview guide
The primary objective of this research is to investigate the key issues leading to inaccuracies in customers' tax reports, which subsequently result in penalties imposed by tax authorities By identifying the root causes of these inaccuracies, the study aims to propose effective solutions to address the underlying problems.
− Mr Vuong – CEO of STC
No Main session Objective Timing
1 Overall information Approaching to the current situation of the business at STC 2 – 3 minutes
2 Identifying main problem and main cause
Identifying main problem that leads to the symptom Identifying main cause that leads to main problem 5 – 10 minutes
Identifying best solution amongst potential alternative solutions 3 – 7 minutes
No Question CEO of STC STC accountants
1 Can you please introduce a little bit about your self? (name, age, working experience…) x x
2 Can you please tell me about your company? (company background, business performance, groups of customer…) x
3 Can you please share about the reasons that customer were fined by tax authority? x x
4 What happen with STC in case customers were fined by tax authority? x x
5 What are potential problems that lead to the issue that was identified? x x
6 What is the main problem that leads to the issue of STC? x x
7 What are potential causes that lead to main problem? x x
8 What is the main cause that leads to main problem? x x
9 Do you have any suggestion to solve that main cause of STC? x x
10 In your opinion, which is the best solution for the problem that
Transcripts
Time for interviewing: 8 AM – 28 January 2019
Duration for each respondent: 10 – 20 minutes
Location: STC office, Phu Nhuan District, Ho Chi Minh City
− Title: CEO of South Tax Consulting Co., Ltd
− Working experience: over 10 years in accounting service
Good morning, Mr Vuong Thank you for meeting with me today I am here to learn about your company and the challenges it is currently facing Please rest assured that the information you provide will solely be used for my thesis and will remain confidential I encourage you to share any relevant details about your company.
Mr Vuong: Of course, you can ask me about what you concern.
Trang: Can you please tell me a little bit about your company?
Mr Vuong, the founder of South Tax Consulting Co., Ltd., established the company in July 2011 in Phu Nhuan District, Ho Chi Minh City The firm specializes in providing accounting services tailored for small and medium-sized enterprises in the area With three years of prior experience in the accounting sector, Mr Vuong successfully launched his business, which now employs a dedicated team of 11 professionals.
The accounting department consists of 10 employees, including 2 with over 3 years of experience, 2 with more than 2 years, and 6 with around 1 year of experience, along with 1 delivery man My role encompasses general management, customer development, and oversight of the accounting team, leading to a current client base of over 182 customers These customers are categorized into four business sectors: service, manufacturing, construction, and trading, and by size into three revenue groups: under 10 billion VND, 10 to 50 billion VND, and over 50 billion VND annually Our primary clientele consists of trading corporations with annual revenues under 10 billion VND Our competitive advantage lies in strong relationships with the tax authorities in Phu Nhuan, Binh Thanh, Tan Binh, and Go Vap Districts, coupled with the provision of competitively priced services In 2018, our revenue reached approximately 3.7 billion VND.
Trang: How about your business recently?
In recent years, Mr Vuong has observed a decline in his company's performance, with revenue growth slowing down While the number of new customers continues to rise by approximately 10-15% annually, the increasing rate of existing customers leaving has negatively affected overall revenue.
Trang: In your business, what is the thing that customers expect from your service?
Mr Vuong emphasizes that in the service industry, service quality is crucial for fostering customer loyalty and generating positive word-of-mouth referrals Satisfied customers are likely to recommend the company to new clients, while poor service can lead to dissatisfaction and loss of business to competitors In the accounting sector, meeting customer expectations hinges on two key factors: the accuracy of financial reports and the timeliness of their delivery Prioritizing these elements is essential for maintaining client trust and satisfaction.
Our company has encountered issues with the accuracy and timeliness of our accounting reports, impacting customer satisfaction We have prepared 69 accounting reports, but some have been delivered late and contain inaccuracies Addressing these challenges is crucial to enhance our service quality and maintain client trust.
Trang: Between inaccuracy and timeliness, which is the issue that impacts the most to customer in case mistakes happen?
Mr Vuong emphasizes that inaccuracies in accounting reports are more critical than delays in report delivery Tax authorities require tax finalization only once every few years, meaning that any mistakes made in past reports can lead to significant financial repercussions for customers, including supplementary taxes and hefty fines.
Trang: What impacts to the accuracy in customer‟s tax reports?
Mr Vuong: Perhaps, it is due to insufficient input data, inaccuracy in inserting invoice value, insufficient manipulation on accounting software or wrong account determination.
Trang: In your opinion, what is the possible problems that lead to the issue that your accountants prepare customer‟s tax reports inaccurately?
Mr Vuong identifies four key challenges: excessive workload, inadequate qualifications and skills among accountants, insufficient supervision from management, and a lack of motivation among staff.
Trang: Why do you think that workload is the problem?
Mr Vuong emphasizes the critical importance of timely tax report preparation to avoid penalties from tax authorities He believes that employees must complete their assigned tasks on schedule to ensure clients' tax reports are submitted punctually If accountants fall behind, he encourages them to work extra hours, including late nights or weekends, especially during the busy tax season, to meet deadlines and fulfill their responsibilities effectively.
Trang: Why do you think that unqualified knowledge, skill and abilities of your accountants are the problem?
Mr Vuong: My company is small thus it is very difficult for me to recruit high level accountants Thus in recruiting, most of my accountants are fresh and inexperienced.
To excel in accounting services, professionals must possess a degree in accounting, proficiency in accounting software, and a solid understanding of accounting and auditing principles Effective communication skills are essential for collaborating with clients and colleagues, along with a positive attitude to navigate challenges in the field Inexperienced employees often struggle with tasks due to their limited experience, necessitating additional support from supervisors and senior staff However, the demands of managing various responsibilities within the company can hinder my ability to closely monitor junior employees, which may lead to undetected mistakes in their work.
Trang: Why do think that insufficient support from you is the problem?
Mr Vuong emphasizes the importance of providing support and guidance to new employees, as they often require assistance when facing challenges in their roles However, due to his numerous responsibilities within the company, he is unable to monitor junior employees closely on a daily basis, which can lead to overlooking some of their mistakes.
Mr Vuong acknowledges that the small size of his company may contribute to a lack of motivation among his employees He understands that working for a smaller firm may not inspire strong dedication, particularly for accountants who receive only a basic salary During the busy tax finalization season, they often work overtime, including Saturdays, and he provides an additional 500,000 VND per month as a form of encouragement Despite this effort, he recognizes that it may not be sufficient to significantly boost their motivation while working at his company.
Trang: In your opinion, what is the main problem?
Mr Vuong acknowledges that his company faces high workloads, especially during tax season, a challenge common in the accounting industry The pressure to meet client deadlines often leads to overtime, and the difficulty in recruiting qualified employees is exacerbated by the company's small size, resulting in high turnover as staff seek better opportunities This necessitates hiring recent graduates, which can lead to inexperience and mistakes Mr Vuong recognizes that inadequate supervisory support stems from his management of multiple functions, leaving little time for employee guidance He admits to underestimating the importance of employee motivation, focusing instead on maintaining customer relationships for the company's immediate survival To enhance performance and address current challenges, he aims to identify and implement strategies that boost employee motivation.
Trang: In your opinion, what are potential causes that lead to low working motivation of your staff?
Mr Vuong: Perhaps, it is due to lacking of my encouragement for staff, not good workspace and no promotion for staff.
Trang: Why do you think lacking of your encouragement for staff is the cause?
Mr Vuong believes that a performance appraisal system is unnecessary for his small company, which employs only 10 accountants He does not categorize employees based on their performance, as he views completing assigned tasks on time as a fundamental duty and responsibility Consequently, he does not consider compliments or expressions of appreciation important, viewing them as unnecessary for fulfilling compulsory responsibilities.
Trang: Why do you think that no promotion is the cause?
Mr Vuong is currently seeking a mid-level supervisor to assist in managing his accounting team but is unable to promote anyone from within due to their lack of qualifications As a small company, there are no higher positions available for existing staff, and Mr Vuong feels uncertain about their long-term commitment to STC Consequently, he finds it necessary to oversee operations personally, especially when critical tasks arise.
Trang: Why do you think that working condition in STC is the cause?