COMPANY INTRODUCTION
Company overview
Imperial Tobacco, a subsidiary of Imperial Brands, is a major player in the global tobacco industry, producing a variety of products including cigarettes, cigars, and accessories Established in 1995, the Imperial Tobacco Vietnam Representative Office (ITVN) in Ho Chi Minh City serves as a liaison for the UK-based headquarters, focusing on market research and identifying trade opportunities in Vietnam While ITVN cannot engage in direct sales activities, it plays a crucial role in supporting the Head Office's efforts to increase product sales in the Vietnamese market, ultimately driving profits for the parent company.
ITVN's flagship product, Bastos cigarettes, is manufactured locally under a licensing agreement with Imperial Tobacco International Limited in the United Kingdom With nearly 25 years in the Vietnamese market, Bastos has established itself as one of the top ten selling cigarette brands, capturing approximately 5% market share according to AC Nielsen data from 2018 Positioned in the mainstream segment, Bastos cigarettes are priced between 10,000 to 12,000 dong per pack of 20 Key competitors in this price range include Thang Long and Sai Gon cigarettes, produced by the state-owned corporation Vinataba.
The operation diagram of Imperial Tobacco in Vietnam market can be described in the Figure 1 as below:
Company in United Kingdom (Head Office) Supply materials based on licensing contract
Earnings profits on material supplied and Royalty fees on products sold
Dong Nai Food Industrial Corporation (Manufacturer)
Distribution channel of Bastos products in Vietnam market
Investment to distribution channel to boost sales
Imperial Tobacco Vietnam Representative Office embraces six core values from Imperial Brands: "we can," "I own," "I am," "we surprise," "I engage," and "we enjoy." These values emphasize enhancing employee competency, performance, motivation, and retention Additionally, Imperial Brands has established Leadership Expectations that empower both leaders and employees to drive performance, take accountability, build capabilities, lead by example, foster continuous improvement, and create high-performing teams.
Organizational structure
As of the end of 2019, ITVN employs 20 direct staff across six key departments: Operation Support, Human Resources, Finance, Marketing, Sales, and Business Intelligence In addition, there are 12 indirect employees in the Data Analysis Team, who report to the Business Intelligence Manager These indirect employees are contracted through Humidor Company, a labor supply agency, while their salaries are processed by ITVN via Humidor.
Labor contract signed with ITVN
Labor contract signed with Agency
Company, the recruitment process of Data Analysis Team is done by Human Resource
The Department of ITVN oversees the recruitment, training, appraisal, and salary payment for both direct and indirect employees While both groups work in the same office, direct employees—those with labor contracts signed with the Representative Office—enjoy additional benefits such as annual performance bonuses and family healthcare insurance In contrast, indirect employees, who have contracts with a labor agency, do not receive these benefits, highlighting a significant disparity in employee advantages within the organization.
ITVN's direct employees are officially counted as part of Imperial Brands, possessing employee codes that enable them to log into the intranet and access Imperial Brands' online resources The organizational structure of ITVN is outlined in detail.
Since its establishment in 2015, the Data Analysis team at ITVN has focused on collecting and analyzing market data related to the tobacco industry and its competitors in Vietnam Their daily responsibilities include inputting market data into the internal system, monitoring sell-in and sell-out volumes of Bastos cigarettes, and tracking inventory levels among distributors and wholesalers The reports generated by the team provide valuable insights that assist the Business Intelligence Manager in understanding the overall tobacco market landscape, thereby enabling the Director to make informed decisions and develop strategies for ITVN's future growth.
Before 2015, without Data Analysis team, ITVN had to buy the market data of tobacco industry and ITVN’s competitors in Vietnam market from AC Nielsen, which costs about
In 2015, the Director of ITVN established a Data Analysis Team to efficiently collate and analyze market data, which has proven to be a cost-effective solution The annual employment costs for this team amount to approximately 2 billion dongs, while the expenditure for collecting raw market data is around 1 billion dongs By implementing this team, ITVN successfully saves 2 billion dongs each year, while still maintaining comprehensive reports on the tobacco industry and its competitors in the Vietnamese market.
PROBLEM CONTEXT
Symptoms
Despite having a robust strategy for attracting, motivating, and retaining talent, Imperial Tobacco Vietnam has experienced a notably high voluntary turnover rate over the past two years, with a significant increase in 2019 This trend indicates underlying issues that require thorough validation and analysis to identify the root causes To address this challenge, it is essential to diagnose the problems and develop effective solutions along with implementation plans to enhance the company's employee retention and overall workplace environment.
Based on the data collected from Human Resource Department of ITVN, the voluntary turnover rate of total direct and indirect employees at ITVN is showed in Table 1 as below:
Table 1 Total employee turnover rate at ITVN
Total number of employee (at the year- 34 35 35 32 31
(Source: ITVN Human Resource Department)
The turnover rate represents the percentage of employees who leave an organization within a specific timeframe It is calculated by dividing the total number of employees who departed during the month by the average number of employees for that same month, as defined by Phillips and referenced by Hernández et al.
In 2019, ITVN experienced a total employee turnover rate of 30%, marking a significant increase compared to the rates in 2017 and 2018, which indicates a concerning upward trend Additionally, a post-survey seminar report from Talentnet-Mercer in October 2018 revealed that the voluntary turnover rate for multinational corporations (MNCs) rose from 15.1% in 2017 to 15.6% in 2018, further highlighting the growing challenge of employee retention in the industry.
Figure 3 Turnover trend - Talentnet – Mercer post survey report 2018
Over the past four years, a comparison of employee turnover rates reveals that ITVN experienced notably high turnover in 2018 and 2019, especially when contrasted with local companies and multinational corporations.
ITVN, as the representative office of Imperial Tobacco International Limited in the United Kingdom and a subsidiary of the global corporation Imperial Brands, embodies the characteristics of a multinational corporation Due to the unique nature of the cigarette and tobacco industry, which is subject to stringent regulations by the Vietnamese Government, Imperial Tobacco International is restricted from operating freely in Vietnam.
In the United Kingdom, a limited company can establish a representative office in Vietnam Despite holding a business license as a representative office, ITVN is recognized as a multinational corporation, similar to competitors like British American Tobacco (BAT), Philip Morris International (PMI), and Japan Tobacco International (JTI) Consequently, the employee turnover rate at ITVN can be compared to that of other multinational corporations.
The turnover rate data from ITVN's Human Resource Department for 2018 and 2019 reveals a significant disparity between direct and indirect employees While the turnover rate for direct employees remained below 10% during these years, the indirect employee turnover rate, particularly for the Data Analysis team, was alarmingly high at 50% in 2018 and 64% in 2019 This high turnover among indirect employees contributed to an overall increase in ITVN's total turnover rate, which rose from 23% in 2018 to 30% in 2019.
Table 2 Breakdown employee turnover rate at ITVN in 2018 and 2019
Yearly turnover rate in ITVN, breakdown by department
(Source: ITVN Human Resource Department)
Besides, the post survey seminar report from Talentnet-Mercer in October 2018 ( 2 ) also showed that the highest turnover rate in 2018 is 37.6% belongs to Retail industry in Vietnam market (see Figure 4).
Figure 4 Top 3 & Bottom 3 Turnover - Talentnet – Mercer post survey report 2018
ITVN is actively involved in the annual Talentnet-Mercer surveys focusing on human resources topics, including compensation, benefits trends, and voluntary staff turnover in the retail and tobacco industries The 2018 post-survey report from Talentnet-Mercer analyzed data from 602 organizations across 16 industries, revealing significant trends in voluntary staff turnover rates within these sectors.
In 2018, the turnover rate of the Data Analysis Team at ITVN reached an alarming 50%, significantly surpassing the staff turnover rates of multinational corporations (15.6%) and local companies (20.2%), and even exceeding the highest turnover rate in the retail industry (37.6%) By 2019, this rate escalated to 64%, highlighting an urgent need to investigate the underlying issues contributing to this trend.
The Data Analysis Team operates as indirect employees of ITVN, with their employment contracts signed through the labor supply agency, Humidor Although contracted with the agency, the team adheres to ITVN's recruitment and training protocols, works within ITVN's office, and reports directly to the Business Intelligence Manager.
The Data Analysis team, consisting of 11 indirect employees whose recruitment, training, and salaries are funded by ITVN through an agency, contributes to the company’s overall employment costs Consequently, fluctuations in both direct and indirect staffing directly impact ITVN's employment expenses To enhance performance, it is essential for ITVN to effectively manage its workforce and minimize these costs The high voluntary turnover rate within the Data Analysis team indicates a pressing need for management to explore the underlying causes and develop strategies to address this challenge.
Symptom validation and justification
According to the data from the Human Resource Department of ITVN, the Data Analysis team has experienced the highest turnover rate among all departments over the past four years, exceeding the overall turnover rate of ITVN by more than twofold, as illustrated in Table 3.
Table 3 Turnover rate of Data Analysis Team
Number of Data Analysis employee (at the year-end) 10 11 13 12 11
Turnover rate of Data Analysis Team
Turnover rate of other Departments
Total Turnover rate of ITVN 15% 17% 23% 30% 6%
(Source: ITVN Human Resource Department)
The data from Table 3 showed that the turnover rate of Data Analysis team in 2019 is significantly higher than 2018, 64% versus 50%, and it is more than two times higher than
Since 2017, the turnover rate of the Data Analysis team at ITVN has consistently been the highest among all departments, reaching 29% in 2017 and showing an upward trend since 2018 This rate significantly exceeds the turnover figures observed in the retail industry.
Total turnover rate of ITVN is illustrated by the chart below (Figure 5)
Turnover rate of Indirect employee Total turnover rate of ITVN Turnover rate of Direct employee
Figure 5 Turnover rate at ITVN
Though the interview, Ms Tran Hanh – HR Manager of ITVN, said that:
Hiring new employees incurs significant costs, including recruitment fees that can amount to twice the monthly salary Additionally, organizations must invest time in induction and training, which typically takes around two months for newcomers to acclimate to their roles During this period, overtime wages are necessary for existing staff to meet task deadlines, and managers also dedicate valuable time to conducting interviews and training sessions.
Mr Tran Son – Business Intelligence Manager of ITVN, shared his opinions:
The resignation of my team members significantly impacts me, as I must redistribute tasks among remaining staff until we find suitable replacements This process consumes my time with interviews, training, coaching, and evaluating new hires Typically, it takes a new employee 2-3 months to become fully acclimated to their responsibilities.
Mr Andrew Wang, Director of ITVN, attributes the company's declining performance to significant expenses related to recruitment and training He emphasizes that a higher turnover rate negatively impacts employee productivity.
Recruitment and training expenses are inevitable, and during this transition, overall team productivity often declines New employees require time to acclimate to their roles, build rapport with their colleagues, and effectively collaborate on team tasks Additionally, existing team members must invest time in mentoring newcomers, which can further hinder the team's efficiency.
According to data from the Human Resource Department of ITVN, the replacement costs incurred for recruitment and training, overtime wages for team members assisting with timely report completion, and expenses for facilities like uniforms and working tools for the Data Analysis Team were analyzed for the years 2018 and 2019.
Table 4 Replacement costs of Data Analysis Team
Replacement cost of Data Analysis team
Year 2018 Year 2019 Increasing % of cost YoY
Total replacement cost of Data Analysis team 170 301 177%
Total Employee costs of Data Analysis team 1,872 1,950
Percentage of replacement cost in total cost of Data Analysis team 9.1% 15.4%
(Source: ITVN Human Resource Department)
Table 4 showed the replacement cost of Data Analysis team in 2019 increases 177% versus
In 2019, ITVN experienced a significant increase in the replacement costs of its Data Analysis team, rising from 9.1% of total employee costs in 2018 to 15.4% This indicates that the company invested more in covering the expenses associated with replacing team members in the Data Analysis department.
Labor costs play a crucial role in a company's performance, and unnecessary employee turnover can lead to significant loss of human capital, as highlighted by Michael et al (4).
Employee turnover incurs both tangible and intangible costs, as highlighted by Lashley and Chaplain (cited by Michael et al.) Tangible costs include termination, recruitment, and training expenses, while hidden costs encompass the loss of skills, disruption of customer relations, and decreased morale among remaining staff Additionally, the time it takes for new employees to reach full efficiency further compounds these hidden costs, emphasizing the significant impact of turnover on organizational effectiveness.
The interview results and data from the Human Resource Department at ITVN reveal the tangible replacement costs of the Data Analysis team, while also highlighting the hidden costs associated with low employee productivity and management time loss, which are difficult to quantify Given that the turnover rate for the Data Analysis team is the highest among all departments at ITVN and is on the rise, further investigations are warranted to address the underlying causes of this high turnover rate.
PROBLEM IDENTIFICATION
Problem mess
To investigate the high turnover rate in the Data Analysis team at ITVN, qualitative research methods were employed, including in-depth interviews with three distinct groups The initial group comprised three individuals in managerial positions.
Ms Tran Hanh, the HR Manager, Mr Tran Son, the Business Intelligence Manager, and Mr Andrew Wang, the Director of ITVN, lead the first group The second group consists of current employees in the Data Analysis team, while the third group includes former employees from the same team.
Ms Tran Hanh, the HR Manager, revealed that exit interviews indicate employees are leaving the Data Analysis team for better job opportunities, higher salaries, and improved benefits She believes that the primary reasons for this turnover are the low salaries and unequal benefits offered, which contribute to employee dissatisfaction.
In an interview with Mr Tran Son, the Business Intelligence Manager, it was highlighted that employees are leaving the company primarily due to low salaries, lack of career advancement opportunities, and job instability Mr Tran emphasized that members of the Data Analysis team are particularly affected by job insecurity and the absence of a retention strategy, leading to a sense of disengagement from the company.
High turnover rate of employee
The opinion from the Director, Mr Andrew Wang, that workplace condition makes Data
Analysis team unconnected with other people in the company According to Mr Andrew
The Data Analysis team, led by Wang, often requires a quiet working environment to concentrate on their tasks, which may result in lower engagement with other departments within the company.
Interviews with current and former members of the Data Analysis team reveal key reasons for their job dissatisfaction, including low salaries, inequitable benefits, feelings of isolation from other departments, job insecurity, lack of retention strategies, and limited career growth and development opportunities.
With all the information collected from the first round interviews with the HR Manager, the Business Intelligence Manager, the Director, the existing staff and the staff who left Data
The analysis team, drawing from the insights in "Problem Solving in Organizations" by Joan Van Aken and Hans Berends (3rd edition, 2018, pp 55-58), has identified potential issues illustrated in the preliminary cause and effect tree outlined below.
Unstable jobs Increase recruitment and training costs
Figure 6 Preliminary cause and effect tree
Potential Problems and validate the main problem
The interviews conducted revealed three key issues contributing to the high turnover rate in the Data Analysis team at ITVN: income dissatisfaction, a poor working environment, and low motivation levels A thorough analysis of the interview results, alongside relevant literature, will assist in identifying the primary factors driving this turnover.
Salary is a fixed compensation paid to employees, typically measured on a monthly or yearly basis, and is crucial for job satisfaction and organizational commitment (Mercy et al., 7; Schuck et al., 8) Research indicates that both salary and satisfaction with salary play vital roles in attracting and retaining talent (Carraher, 9) Furthermore, salary and benefits significantly influence pay satisfaction, with a positive correlation between income and overall job satisfaction (Luna-Arocas et al., 10) Consequently, low salaries and inadequate benefits can lead to employee dissatisfaction, prompting them to seek better-paying opportunities elsewhere.
In an interview with Ms Tran Hanh, the HR Manager, it was revealed that income dissatisfaction is a key reason behind the turnover in the Data Analysis team.
In conducting exit interviews, I've found that many employees leave the company for better job offers that provide higher salaries, while others express dissatisfaction with their current benefits.
An employee who is currently working in Data Analysis team – Mr Nguyen Tung, shared his opinion about the salary:
“My salary is not very attractive I know that the salary will be reviewed and increased every year, but the percentage of increasing is not much”.
The results from interviews with another employee – Mr Nguyen Thien, who already leftData Analysis team, indicated that he did not happy with his salary and benefits He shared:
“The salary there is lower than my current job In addition, benefits are not attractive We don’t have annual performance bonus, except for the thirteenth month salary.”
In addition, Mr Tran Son – Business Intelligence Manager, shared his view on the reason that leads to the high turnover rate in Data Analysis team:
“Data Analysis team has the highest turnover rate When leaving, people usually told me that they have a better job with higher salary”.
Higher salary levels are linked to reduced voluntary turnover, as noted by Schuck et al (8) Additionally, Mercy et al (7) found that competitive salaries significantly enhance employee satisfaction and happiness, leading to improved efficiency and better retention rates.
The analysis of interview results indicates that low salaries and insufficient benefits have led to significant income dissatisfaction among employees in the Data Analysis team at ITVN, ultimately driving them to resign from their positions.
ITVN implements a structured process for salary appraisal, review, and increases, supported by annual salary surveys conducted in collaboration with Talentnet-Mercer These surveys gather comprehensive salary data across various industries, including tobacco, to create a detailed database of salary rates for different job codes ITVN utilizes this database to benchmark salaries, allowing them to make informed decisions regarding employee compensation based on industry standards.
Ms Tran Hanh – HR Manager, stated that:
Our organization conducts an annual performance review for all employees, both direct and indirect, to evaluate their contributions and assess salary adjustments Salary increases are determined by individual performance and are aligned with market standards, utilizing salary survey reports from Mercer-Talentnet for benchmarking.
Besides, Mr Andrew Wang – Director, shared his opinion that when employees agree to join the company, it means they accept their salary He said:
We understand employees' concerns about low pay compared to others; however, we have conducted a thorough benchmarking of all salaries against market and industry standards By accepting their offer letters to join our organization, employees acknowledged and agreed to the established salary rates.
In addition, the interviews with two employees who are currently working in Data Analysis team disclosed that they are quite happy with their salary.
Ms Nguyen Truc – who has been working in Data Analysis team for three years, shared her thought:
“I have yearly salary reviewed and increased, so I think my salary is acceptable”.
Sharing by Mr Phan Nhan, who has joined Data Analysis team for six months:
Having recently graduated a year ago, I am pleased with the salary offered by my company I recognize the importance of gaining more experience to enhance my career prospects in the future.
Ms Doan Hang – employee has left Data Analysis team, revealed that:
“The salary there is higher than my current salary, but I am happy with my current job”.
Furthermore, Mr Andrew Wang – Director, shared his view:
It is essential to adhere to our Group's policies regarding the employee performance evaluation process, as all salary information is submitted to the Group Compliance with these policies is crucial to avoid any issues.
In addition, Ms Tran Hanh – HR Manager, stated:
Our company’s salary rates align with market standards, as indicated by recent salary surveys It’s understandable that some employees may feel dissatisfied with their compensation, possibly due to a lack of awareness about market rates and having elevated salary expectations.
The in-depth interviews reveal a conflict in salary perceptions among employees in the Data Analysis team at ITVN Additionally, according to the HR Manager and Director, ITVN's salary appraisal and pay raise processes are determined by the Group, making salary issues beyond the scope of this report.
The working environment significantly impacts employee turnover rates, as it encompasses the conditions surrounding workers that influence their ability to perform tasks effectively Research by Rứssberg et al highlights that a positive working environment is closely linked to employee satisfaction, which is crucial for retaining talent within a company.
A poor work environment is a significant factor contributing to high employee turnover rates, leading organizations to focus on improving these conditions to retain their workforce Research by Setiyani et al highlights that a positive working environment enhances employee motivation and engagement, ultimately benefiting the company Additionally, Sofyan, as referenced by Riyanto et al., emphasizes that fostering good working conditions can effectively motivate employees to perform better.
Updated preliminary cause and effect map
From the interview results and combined with literature review, the preliminary cause and effect map is updated as below:
Figure 7 Updated preliminary cause and effect map
Problem justification
The high voluntary turnover rate in the Data Analysis team at ITVN can be attributed to income dissatisfaction, a poor working environment, and low motivation levels Notably, there is a divide among employees regarding salary satisfaction, with some feeling dissatisfied while others are content The Director and HR Manager have indicated that ITVN has established procedures for annual performance evaluations and salary increases, but must adhere to Group policies, limiting their ability to address income dissatisfaction directly In contrast, employees report satisfaction with their tasks, working conditions, and relationships with colleagues, suggesting that the perceived issues in the working environment may stem from the Director's perspective rather than actual employee sentiment.
Interviews with the Data Analysis team at ITVN highlighted that inequitable benefits, a lack of career development plans, and job insecurity significantly contribute to employee dissatisfaction and an increased intention to leave the company These factors have been identified as key motivators that diminish their work motivation.
Mr Nguyen Thien – left employee, shared his thought:
“I feel unhappy that the benefits of our team is lower than the others in the same office”.
Ms Nguyen Truc – existing employee, shared her concerns:
“I am worried about my future since I have unsecure job and no career development plan, that makes me demotivated”.
Mr Nguyen Tung – existing employee working in Data Analysis team, stated:
“There is no career development, no career growth opportunity here No career development plans reduces my working inspiration and demotivates me”.
Besides, the interview result with Ms Tran Hanh - HR Manager, revealed the important factors that cause high turnover rate in Data Analysis team She stated:
The lack of equitable benefits and the absence of a retention plan have led to demotivation among the Data Analysis team, significantly contributing to their high turnover rate It is essential to identify solutions that can boost their morale and enhance job satisfaction, ultimately reducing employee turnover in this team.
According to Keighley as cited by Joshua-Amadi ( 20 ), employee working spirit and the ability to work happily in difficult situations depend on motivation In other words, Joshua-Amadi
Employee demotivation leads to unproductive behavior, frustration, and negative attitudes, ultimately increasing staff turnover and operational costs According to Tokarz-Kocik, the effectiveness of employee engagement is heavily influenced by the motivational strategies implemented by the company Poor motivational choices can significantly contribute to high turnover rates Consequently, a lack of motivation is a critical factor driving elevated turnover rates within organizations, particularly within the Data Analysis team at ITVN, which adversely affects financial performance.
Research indicates a significant connection between employee turnover rates and various organizational factors, including productivity, retention, work quality, and overall company strategy Higher turnover rates lead to decreased employee productivity, ultimately jeopardizing the company's success As highlighted by Ali Shah et al., employees are essential to an organization’s foundation; thus, fostering motivation and engagement is crucial for maintaining a competitive edge When employees lack motivation and choose to leave, it not only threatens the organization's success but also diminishes overall productivity and negatively impacts the morale of remaining staff.
High turnover rates in the Data Analysis team have significant consequences for ITVN, according to Mr Andrew Wang, the Director The company has seen replacement costs rise dramatically, from 170 million Vietnam dongs in 2018 to 301 million Vietnam dongs in 2019 This increase not only strains financial resources but also negatively impacts the work performance and morale of remaining employees, ultimately leading to higher overall investment spending for ITVN.
A high turnover rate not only elevates replacement costs but also diminishes work quality and negatively impacts team morale Our reliance on accurate reports for investment decisions aimed at expanding our market share in Vietnam means that any delays or errors can lead to costly mistakes and reduced profits It is crucial to identify the root causes of this issue, and I am fully committed to improving the turnover rate within my approval boundaries.
Therefore, in order to maintain a stable workforce and sustain the company performance,ITVN should find ways to motivate Data Analysis team.
CAUSE VALIDATION
Potential causes
Herzberg et al., as cited by Tietjen et al., identified two categories of motivation factors: job factors, which include recognition, achievement, growth opportunities, responsibility, and the work itself, and extra-job factors, encompassing income, interpersonal relations, company policies, working conditions, and job security Tietjen et al categorize job factors as intrinsic motivation and extra-job factors as extrinsic motivation Ryan and Deci, as cited by Jungin, describe intrinsic motivation as engaging in an activity for its inherent satisfaction, while extrinsic motivation involves performing an action for a separable outcome Joshua-Amadi further distinguishes tangible extrinsic motivators, such as pay and job security, from intangible intrinsic motivators, like personal growth and recognition Additionally, Marco et al found that career growth opportunities enhance intrinsic motivation by fostering enjoyable future tasks, while perceived fairness in compensation significantly influences extrinsic motivation Jungin measured intrinsic motivation through employees' perceptions of future workplace possibilities and job satisfaction, and extrinsic motivation through salary, benefits, and work-life balance Ultimately, intrinsic motivation is derived from the enjoyment of the job itself, whereas extrinsic motivation is driven by external rewards.
Motivation can be categorized into two primary types: intrinsic and extrinsic At ITVN, intrinsic motivation is influenced by the absence of career development plans and limited opportunities for career growth Conversely, extrinsic motivation is affected by inequitable benefits and job insecurity.
Intrinsic motivation, as defined by Ryan et al (26), refers to the intangible rewards derived from an individual's inherent interest in their work, driving them to pursue personal benefits Twenge et al (27) emphasize that organizations seek to attract talent by offering intrinsic rewards such as meaningful job roles, career advancement, and opportunities for impactful contributions However, findings from interviews indicate that the Data Analysis team at ITVN lacks career development plans and growth opportunities, resulting in employee dissatisfaction.
Ms Doan Hang – left employee, shared her opinion on the worst point makes her dissatisfied when working at ITVN:
“No career development No future growth We are unequally treated, this makes me feel unhappy and disappointed”.
She also said about the benefits and career growth opportunities in her new company:
“I am an official staff of my current company, I receive all benefits as other people here If I work well, I will have opportunities for my career growth”.
Ms Nguyen Truc – existing employee, shared her concerns:
I feel stagnant in my career, as I have been performing the same tasks for the past two years without any clear development plan While my line manager provides valuable guidance, I do not perceive any opportunities for career advancement in my current role.
Further interviews with the managers at ITVN has revealed some information about the intrinsic motivation in the company.
Ms Tran Hanh - HR manager, stated about career development at ITVN:
“We currently have no development plans for indirect employees as they are considered as short- term workforce”.
Besides, Mr Tran Son – Business Intelligence Manager, gave his opinion about retention plan for Data Analysis team in ITVN:
“In my opinion, there is no retention plan for Data Analysis team that makes them feel unengaged with the company”.
Tokarz-Kocik (16) emphasizes that providing employees with opportunities for professional development is a key motivator for engagement and retention He notes that aside from low salaries, limited promotion and career advancement prospects are significant factors driving employees to leave a company Conversely, organizations that offer avenues for knowledge enhancement foster employee motivation and loyalty Supporting this, Abdul Kadar et al (18) highlight that career growth opportunities and development plans are crucial for retaining talent within organizations.
The findings from interviews and literature reviews indicate that a lack of intrinsic motivation, stemming from the absence of career development plans and growth opportunities, significantly contributes to the turnover of employees in the Data Analysis team at ITVN.
4.1.2 Low level of Extrinsic motivation:
Interviews with the Data Analysis team at ITVN highlighted a low level of extrinsic motivation, primarily due to perceived inequities in benefits and job insecurity The disparity in policies between direct and indirect employees contributes to this inequity, while the one-year contract terms for agency workers foster a sense of instability, ultimately diminishing their motivation and work spirit.
Mr Nguyen Tung – existing employee working in Data Analysis team, shared his thought about the inequity in benefits at ITVN:
“Our team don’t have some benefits that others have, this makes us feel unequally treated and demotivated”.
Ms Doan Hang – employee has left Data Analysis team, stated that:
“We know that our team has less benefits than others although we are working in the same office”.
Besides, Ms Nguyen Truc – existing employee, shared her concerns about the job insecurity:
“I really don’t know what I will be in the next three years And I am not sure if the company wants to maintain this team for long term”.
Mr Nguyen Tung – existing employee working in Data Analysis team, gave his thought:
The uncertainty surrounding the future of our team is concerning, as it appears the company may be shifting its strategy, potentially rendering our group unnecessary This situation leaves me feeling uneasy and unmotivated.
Furthermore, the interviews with Managers showed that Data Analysis team at ITVN has benefits inequity and job insecurity.
Ms Tran Hanh – HR Manager, said:
The Data Analysis team, being indirect employees, does not receive the same benefits as direct employees in the representative office, including family healthcare insurance and various allowances exclusive to direct staff.
Mr Tran Son – Business Intelligence Manager of ITVN, shared his thoughts:
The one-year labor contracts create a sense of job insecurity among my team members, leading to feelings of instability in their careers This lack of security is a significant factor driving employees to leave the company.
Dissatisfaction with equity in the workplace can significantly demotivate employees, prompting them to consider leaving the company Unequal benefits contribute to this dissatisfaction, ultimately increasing employee turnover rates Additionally, research by Ashford et al., as referenced by Holm et al., indicates that job insecurity drives staff to seek better career opportunities elsewhere.
Interviews and literature reviews indicate that low extrinsic motivation, driven by perceived inequity in benefits and job insecurity, significantly contributes to the turnover of employees in the Data Analysis team at ITVN.
From the interview results with three group of managers and employees of ITVN, together with motivation theories, the cause and effect map is drawn as below:
Rate of Data Analysis team
IncreaseInvestment spending andReduce CompanyProfitFigure 8 Cause and effect map
Cause justification
In summary, the interview results and literature review indicate that the high turnover rate in the Data Analysis team at ITVN is primarily driven by two factors: a lack of intrinsic motivation and low levels of extrinsic motivation According to Mafini et al (28), Herzberg's Two-Factor Theory posits that intrinsic factors serve as motivators, while extrinsic factors are essential for achieving external goals.
Pay, encompassing salaries, bonuses, and benefits, serves as a significant motivator for employees, as highlighted by Joshua-Amadi (20) Financial rewards can transform mundane tasks into worthwhile endeavors, suggesting that extrinsic motivators are essential for maintaining motivation before intrinsic rewards take effect Additionally, Lazaroiu (17) references Maslow’s hierarchy of needs, indicating that employees prioritize external needs, including physiological requirements and job security Furthermore, Lazaroiu notes that Adams’ Equity Theory suggests that perceived inequities can lead to reduced work effort among employees Interviews at ITVN revealed that the Data Analysis team experiences low extrinsic motivation due to inequities in benefits and job insecurity, contributing to demotivation and higher turnover rates Thus, it is vital for ITVN to address these issues by enhancing employee benefits and fostering a sense of job security within the Data Analysis team.
Interviews with the Manager at ITVN indicated that intrinsic motivation falls outside the Management Team's responsibilities, as any indirect employee development plans necessitate approval from the Group.
Ms Tran Hanh – HR Manager of ITVN, shared her opinion when being asked for the career development plan and career growth opportunity for Data Analysis team She said:
Currently, we have established development plans for representative office employees, but not for agency employees, who are classified as indirect employees Our Group's focus does not extend to investing in indirect employees, making it challenging to include them in our career development plans unless they are directly employed by the representative office.
According to Mr Tran Son - Business Intelligence Manager, it is necessary to have a long term strategy for employee growth, but difficult in this situation He shared:
In this context, it's challenging to establish a definitive career path for my team; however, it's essential to develop a long-term strategy focused on employee growth to enhance their engagement with the company.
Moreover, Mr Andrew Wang – Director, shared his thought:
Currently, I am not looking to increase direct employees without Group approval for additional headcounts However, I will include a long-term strategy in the Business Plan for the next five years, which outlines our plans to expand both our business and organizational structure Once we receive Group approval for this Business Plan, we will ensure that the development plans for all employees are addressed.
ITVN's career development plans and growth opportunities for employees are integral long-term strategies embedded in the company's Business Plan, requiring Group approval The Director has indicated that the company's expansion strategy includes initiatives for employee career advancement To address the issue of low intrinsic motivation, solutions have been incorporated into ITVN's Business Plan Consequently, ITVN Management should prioritize enhancing extrinsic motivation to effectively motivate and retain members of the Data Analysis team.
ALTERNATIVE SOLUTIONS
Alternative solution 1: Eliminate benefits inequality
At ITVN, inequitable benefits significantly diminish motivation among employees in the Data Analysis team When employees perceive inequity, they may lower their contributions to align with their perceived rewards, negotiate for better compensation, or choose to leave the organization, as suggested by Lazaroiu According to Adams’ Equity Theory, employees assess their reward-to-contribution ratios, and when they find disparities compared to their peers, they may respond by reducing their work efforts or resigning, as noted by Bing et al This inequity can lead to decreased productivity and increased turnover intentions Furthermore, benefits are closely linked to job satisfaction, which directly influences employee performance and commitment, according to Odunlade Therefore, ITVN should enhance the benefits for its Data Analysis team to address inequity and boost employee motivation.
Ms Tran Hanh, the HR Manager, revealed that exit interviews with departing employees indicated dissatisfaction with benefits as a key reason for their decision to leave the company Notably, members of the Data Analysis team, classified as indirect employees, receive different benefits compared to direct employees.
The Data Analysis team, being indirect employees, does not receive the same benefits as direct employees at the representative office This includes the absence of comprehensive healthcare insurance for their families and other allowances that are available to direct staff.
Mr Phan Nhan – existing staff working in Data Analysis team, gave his opinion when being asked for giving suggestions to improve job satisfaction:
The company should revise its policies to ensure they apply equally to all employees, regardless of whether they are based in the representative office or are agency staff, as everyone contributes to ITVN's success Additionally, we encourage the implementation of more collaborative activities to foster a sense of unity and teamwork among all staff members.
Besides, Mr Nguyen Thien – left employee, shared his thought about the benefits inequity:
“Some benefit policies are applied for only representative office people and that is unfair for us since we are working for the same organization in the same office place”.
In addition, Mr Nguyen Tung – who is working in Data Analysis team for a year, gave his opinion:
I am interested in understanding the company's strategies to identify potential growth opportunities While the development plan is implemented for the representatives in the office, it does not extend to our team, leaving me uncertain about our future prospects.
Addressing benefits inequality requires not only policy changes but also a shift in employee mindset regarding equal treatment To foster a more inclusive environment, companies should implement regular engagement activities for both direct and indirect employees, such as monthly meetings focused on experience sharing and strategic updates By transparently communicating the Business Expansion Plan, employees can gain confidence in their job security and feel valued in the company's future, ultimately motivating them to enhance their contributions.
To address benefits inequality, the company must revise its policies to ensure that all direct and indirect employees receive equal benefits and allowances Additionally, organizing regular activities, such as monthly meetings, will boost employee engagement and communicate the company's future growth strategies This approach will foster a sense of fairness and job security among the Data Analysis team, ultimately enhancing their motivation.
□ Create a climate of trust, and fairness in the company
□ Increase performance and commitment of employees to the company
□ Encourage the willingness of employees to help each other
□ Improve the benefits inequality gap to increase employees motivation
□ Increase interactions and engagements among office staffs and managers
□ Knowing about the company future plans to contribute their best efforts to the company’s success
□ Reduce voluntary turnover and absenteeism
Ms Tran Hanh, the HR Manager, highlighted that indirect employees at ITVN lack certain benefits, including annual health checkups, family healthcare insurance, and various allowances that direct employees receive To address this disparity, she has outlined the costs necessary to enhance benefits for indirect employees, ensuring they align with those of direct employees, along with expenses for engagement meetings.
Table 5 Costs to implement solution 1
No Description Unit Quantity Cost per unit
Estimated cost per year (Vnd)
1 Annual Healthcare Insurance for family members
3 Annual allowances (birthday gift, New Year gifts)
(Source: ITVN Human Resource Department) additional headcounts Thus, the solution to ensure job security for the employees working in the36
Alternative solution 2: Ensure the employees’ job security
Job insecurity can significantly impact employee performance and productivity When employees feel their positions are at risk, they often reduce their efforts, make more mistakes, and experience increased stress According to Holm et al., this insecurity can lead employees to seek alternative job opportunities, as they may perceive a lack of commitment from their employer to retain them Consequently, this mindset can result in lower productivity, ultimately affecting the overall performance of the company.
( 19 ) Therefore, the company needs to improve job insecurity so that the employees feel assured and guaranteed in their jobs.
At ITVN, employees in the Data Analysis team are currently on one-year contracts with an agency, leading to feelings of job insecurity In interviews, these employees expressed a strong desire for long-term employment contracts, as such stability would significantly enhance their sense of security and commitment to their careers.
When being asked to give suggestion to improve job satisfaction, Ms Nguyen Truc – existing employee in Data Analysis team, shared her thought:
I am eager to leverage my expertise to make a lasting impact within the company To ensure my commitment and focus on the future, I seek a long-term employment contract that provides stability and security in my professional journey.
Ms Tran Hanh, the HR Manager, suggested that to enhance the turnover rate in the Data Analysis team, employees who meet the necessary criteria should be offered permanent employment contracts.
Mr Tran Son, the Business Intelligence Manager, recommends that the company improve the turnover rate of the Data Analysis team by offering permanent labor contracts to its members.
I am collaborating with the management team to develop strategies for the next five years, and we require a data analysis team for an additional three years Therefore, I recommend establishing permanent labor contracts for my team to ensure stability and continuity in our efforts.
To enhance job security and stability for the Data Analysis team at ITVN, it is essential to finalize long-term employment contracts with the employees This approach will not only foster a sense of assurance among the team members but also address the need for additional headcounts effectively.
Mr Andrew Wang, the Director of ITVN, has stated that he does not intend to increase the number of direct employees at this time, as he requires approval from the Group to proceed with any staffing changes.
The Data Analysis team at ITVN is finalizing permanent or indefinite-term employment contracts, which are characterized by the absence of a set termination date, as noted by Kozjek et al (31) This type of contract is perceived as more secure and stable compared to other employment agreements, leading employees with permanent contracts to rate their job security higher than those with temporary arrangements Consequently, securing permanent contracts not only boosts employees' job security but also enhances their engagement and commitment to the company Moreover, job security is a key motivator for employees and significantly influences job performance, as highlighted by Muhammad et al (32).
Improving employability is a key strategy for enhancing job security, as employees actively pursue training opportunities that prepare them for better positions (Vilde Hoff et al 33) Employers are more inclined to invest in training and development for permanent staff, anticipating a longer tenure with the company (Forrier and Sels, as cited by Vilde Hoff et al 33) By offering training programs that boost employee competencies and competitiveness, organizations can significantly increase employability and mitigate job insecurity Specifically, providing training for Data Analysis staff can help bridge the benefit gap between direct and indirect employees at ITVN.
□ Reinforce the feeling of job security of the indirect employees to reduce their spending time search for alternative jobs.
□ Improve employees skills which benefits for employees and enhance their employability
□ Reduce benefits inequality between indirect and direct employees
□ Enhance employees motivation, increase their productivities
According to Ms Tran Hanh, the HR Manager, the agency plans to raise its annual fees by half a month's salary for the responsibility of signing permanent labor contracts with employees Additionally, ITVN is prepared to invest in external software solutions to enhance their operations.
Explore 38 essential skills training courses designed for indirect employees, with an annual budget capped at 5 million As these employees lack access to the Imperial Brand e-learning platform, investing in agency contracts is crucial for their skill enhancement These courses aim to elevate the capabilities of indirect staff, ensuring they remain competitive and effective in their roles.
Table 6 Costs to implement solution 2
No Description Unit Quantity Cost per unit
Estimated cost per year (Vnd)
1 Agency fee for signing permanent contracts
Solution justification
(Source: ITVN Human Resource Department)
To enhance employee extrinsic motivation, it is effective to address benefits inequality by revising current policies and implementing monthly engagement meetings These meetings will facilitate the sharing of company strategies with all employees, fostering a more inclusive workplace environment.
- Increasing the benefits for employees working in Data Analysis team makes them feel equally treated same as others.
Communicating the company's long-term strategies and expansion plans fosters employee engagement and security, as it provides them with insight into the organization's future growth and their own career development.
Signing permanent labor contracts enhances job security for employees As the company gears up for an expansion plan that aims to increase its workforce, ITVN is preparing to transition Data Analysis staff from agency contracts to direct employment Once the business plan receives approval, this shift will incur costs for ITVN as it terminates existing agency contracts.
Providing skill training courses enhances employee competency and addresses current inequality in benefit policies Employees in the Data Analysis team may still evaluate their benefits against those of direct employees Furthermore, when indirect employees can sign contracts directly with ITVN, they gain access to the e-learning platforms utilized by direct employees at Imperial Brands, promoting equitable benefits for all staff members.
Ms Tran Hanh - HR Manager, gave her opinions on the priority of the suggestions to improve the turnover rate:
To address the inequality gap, it is essential to enhance the benefits for indirect employees Once we receive Group approval to increase our workforce, we can directly sign labor contracts with new hires, eliminating the need for agency involvement.
Mr Andrew Wang, the Director, expressed his preference for Solution 1 to address benefits inequality, highlighting its ease of control and monitoring of costs for the company.
To foster a positive work environment, it is essential to treat employees fairly and avoid comparisons among them Enhancing benefits for indirect employees can boost their satisfaction and motivation, while the costs associated with this approach are lower and more justifiable compared to altering labor contract terms or managing employee training expenditures.
A survey was conducted among the Data Analysis team at ITVN, involving twelve employees who provided feedback on four statements related to proposed solutions using a five-point Likert scale The statements were crafted from various theories to align with the research goals of identifying effective implementation strategies The first statement was adapted from the Pay Satisfaction Questionnaire and the Attitudes Towards Benefits Scale, while the second focused on employee engagement to boost job satisfaction and motivation The third statement was based on the Psychological Contract theory, which addresses mutual agreements between employees and the organization Lastly, the fourth statement was developed to assess employer-supported training aimed at improving employability and job security The complete questionnaire is presented in the following table.
No Code Statement Adapted from
1 S1 Increasing benefits makes you satisfied and motivated at work
Carraher ( 34 ) and Carraher et al ( 35 )
2 S2 Enhancing engagement increases your job satisfaction and makes you motivated to work
3 S3 Signing a permanent labor contract enhances your job security and increases your motivation to work
4 S4 Providing skills training courses to enhance your employability makes you feel safe in your job and increases your motivation to work
The survey results indicate that the first statement received the highest average score of 4.42, reflecting a consensus among employees that they agree to strongly agree with it The second statement also garnered a favorable average score of 3.92, suggesting that nearly all employees expressed agreement Both statements pertain to the proposed solution of eliminating benefits inequality, highlighting a clear preference among employees for this approach.
No Statement Code Mean Standard
Revising company benefits policies and sharing strategies through engagement meetings can effectively reduce benefits inequality between direct and indirect employees, ensuring job security for those in the Data Analysis team This approach fosters a sense of fairness and security in their careers, ultimately boosting motivation and decreasing turnover intentions.
ORGANIZATION OF ACTIONS
Contents of organization of action
Critical path Content Person in charge
1 List out all current benefits for direct and indirect employees
2 Compare all benefits for direct and indirect employees and show the gap
3 Define the additional benefits for indirect employees
II Prepare revised benefits policies
1 Define the content of the revised policies
2 Calculate budget for new benefit policies
3 Define expected timeline for implementation
HR Manager Finance Manager Management team
III Plan for engagement meeting
1 Define objective of the meeting
2 Prepare the contents, information to be shared to all the employees
3 Assign person in charge and arrangement
5 Communicate and get confirmation for meeting schedule
HR Manager Business Intelligence Manager Director
IV Implementation 1 Roll out revised benefit policies to all employees
2 Hold the meeting for sharing and discussion
HR Manager Director All employees
2 Collect feedbacks from all employees
3 Review and evaluate the feedbacks
HR Manager Business Intelligence Manager Management team
VI Adjusting actions 1 Propose corresponding actions based on the feedbacks
Timeline of implementation
The ITVN management team has outlined a timeline for reviewing and preparing an action plan, which will take approximately four weeks Following this review period, the implementation of the plan is expected to commence one month later The proposed schedule for the organization of actions is detailed in the table below.
Recruiting and retaining staff is crucial for organizations, as high turnover rates present significant challenges Employees seek not only competitive salaries and a positive work environment but also fair treatment and equality Furthermore, job security and a clear development plan are essential for motivating employees and enhancing productivity When their expectations are unmet, employees are more likely to explore other opportunities, leading to increased turnover rates At ITVN, the high turnover rate within the Data Analysis team highlights the urgent need to address these issues.
Firstly, high turnover rate at Data Analysis team has been indicated through the analysis of data collected from HR Department at ITVN and other surveys.
An analysis of interviews with ITVN employees and managers, along with relevant literature, reveals several key factors contributing to the high turnover rate in the Data Analysis team These factors include income dissatisfaction, a poor working environment, and low motivation levels Notably, the primary issue identified is the low level of extrinsic motivation, driven by inequitable benefits and job insecurity.
To enhance extrinsic motivation, the company has developed and justified alternative solutions, allowing for the selection of the most effective option The primary solution focuses on addressing benefits inequality and increasing employee engagement by transparently sharing the company’s long-term strategies, thus fostering awareness of future growth Additionally, job security is emphasized through permanent labor contracts and external skills training to boost employability After a thorough evaluation of costs, benefits, and input from managers and employees, the first solution has been endorsed by ITVN’s Director A detailed action plan is now prepared for prompt implementation to mitigate the company's turnover rate.
This report utilizes both secondary and primary data sources The secondary data was gathered from the Human Resources Department of ITVN, including various tables and documents from HR seminars, surveys, management literature, and academic journals In addition, primary data was collected through qualitative research via in-depth interviews and quantitative research using questionnaires to gather responses.
The respondents are categorized into three groups as follows:
□ First group: the Managers and the Director of ITVN
□ Second group: the employees who are currently working in Data Analysis team at ITVN
□ Third group: the employees who had worked in Data Analysis team and already left ITVN.
The interviews aimed to gather insights on the turnover rate within ITVN's Data Analysis team, exploring its causes and potential solutions Conducted in two rounds, the first round focused on identifying symptoms and underlying issues, while the second round sought opinions on solutions and action plans A questionnaire was distributed to twelve employees in the Data Analysis team to collect their feedback on proposed solutions, which was subsequently analyzed in Excel to determine the mean and standard deviation of each statement, aiding in the evaluation of the suggested strategies.
The information of the interviewees and the interviews are showed in the below table:
Name Position Working experience at ITVN
Group 1: Manager and Director Level
Mr Andrew Wang Director 1 year December 2019
Ms Tran Hanh HR Manager 10 years December 2019
Group 2: Employees who are currently working in Data Analysis team at ITVN
Ms Nguyen Truc Staff 3 years December 2019
Mr Phan Nhan Staff 6 months January 2020
Mr Nguyen Tung Staff 1 year January 2020
Group 3: Employees had worked in Data Analysis team and left ITVN
Mr Nguyen Thien Staff 1 year and 6 months December 2019 Coffee shop
Ms Doan Hang Staff 1 year January 2020 Coffee shop
Respondent Interview time Interview place
12 All employees working in Data
Interview Guide
8.1.1 Group 1: HR Manager / Business Intelligence Manager/ Director of Imperial
1 Introduce name, position, purpose of the interview
1 Could you pls introduce a little bit about your position and your responsibilities?
2 How long have you been working for the company?
1 Could you pls share some information about the turnover rate of the company in this year? PROBE: How much turnover rate percentage? Comparing to previous years?
2 Which department has the highest turnover rate? PROBE: Do you know the reason?
3 Can you share your opinions on which reasons caused high turnover? PROBE: Any change in working environment, management, policies?
4 Do you think what the most important factor which makes the employee decided to leave the company?
5 Please give your thoughts on the difficulties you have to face with on high turnover rate?
6 Magic wand Imaginary that you have a magic wand What would you do to improve the turnover rate?
7 Can you give your opinion for the priority of your suggestions to improve the turnover rate? If possible, how soon the company can have detailed action plan and implement it?
8 In your opinion, do you think the company should have clear career development plans to motivate the employees?
9 Can you share some information regarding the business plan for the next 3 years?
Do you have any plans to expand the business and recruit more people?
8.1.2Group 2: Employees who are currently working in Data Analysis team at
1 How are you? How is your current job?
2 How long have you been working for the company?
1 How is your daily tasks? How do you feel about your daily tasks? PROBE: Do you like your job? Are you happy with your tasks?
2 Do you have any difficulty in your daily tasks? PROBE: working environment, income, colleagues, line manager?
3 How do you think about working environment?
4 What do you think about your salary? How is your opinion on HR policies?
5 What is the worst point makes you dissatisfied in your job?
6 Do you have any suggestions to improve your job satisfaction?
7 Do you have intention to find another job?
8.1.3Group 3: Employees who used to work in Data Analysis team and has left
1 How are you? How is your current job?
2 How many years you have been worked for the company?
3 When did you leave the company?
1 Can you share the reason why you leave the company?
2 What is the worst point makes you dissatisfied working in ITVN? PROBE: working environment, income, colleagues, line manager?
3 What do you think about your salary at ITVN? How is your opinion on HR policies?
4 Can you provide your suggestions to help us in improving our employees’ job satisfaction?
Questionnaire
Please give me your opinion for the below statements according to the level of consent from
1 = Strongly disagree; 2 = Disagree; 3 = Neutral; 4 = Agree; 5 = Strongly Agreed
1 Increasing benefits makes you satisfied and motivated at work
2 Enhancing engagement increases your job satisfaction and makes you motivated to work
3 Signing a permanent labor contract enhances your job security and increases your motivation to work
4 Providing skills training courses to enhance your employability makes you feel safe in your job and increases your motivation to work
Thank you for your answers
Summary of transcripts
8.3.1Group 1: HR Manager / Business Intelligence Manager/ Director of Imperial
Thank you for taking the time to meet with me today As outlined in the invitation, I will begin our discussion to ensure we make the most of your time.
+ Could you please introduce a little bit about your position and your responsibilities?
+ How long have you been working for the company?
As the current head of the HR Department, I am fulfilling the role of HR Manager following the departure of the previous manager I am currently in my probation period for a promotion to the HR Manager position.
I have been working in this company for about
10 years I started as a receptionist and has been promoted to HR executive, and then HR
As the Business Intelligence Manager, I oversee the collection and analysis of data to deliver critical insights for informed management decision-making My department is the largest within the company, and by transitioning from purchasing expensive external data to leveraging our internal resources, my team has significantly reduced costs for the organization.
I joined this company in 2015, spending almost
I am in charge of Vietnam market for more than
Q1 Could you pls share some information about the turnover rate of the company in this year? PROBE: How much turnover rate percentage? Comparing to previous years?
This year we faced with the high turnover rate, and mostly that came from Data analysis team More than 50% people in this team resigned during the year.
50% turnover rate in Data Analysis team Q2 Which department has the highest turnover rate? PROBE: Do you know the reason?
We have only one or two people resigned in all other departments, but Data Analysis team has the highest number of quitting.
In my experience conducting exit interviews, many departing employees cite higher salary offers as a key reason for leaving the company Additionally, some express dissatisfaction with the benefits provided, highlighting the need for improved employee satisfaction and retention strategies.
Data Analysis team has the highest turnover rate
Exit interviews result the reasons of leaving are having better salary, unhappy with income
We understand that employees have expressed concerns about their salaries being lower than those of others; however, we have conducted a thorough benchmarking of all employees' salaries against market and industry standards It is important to note that when employees accepted their offer letters to join our organization, they agreed to the specified salary rates.
Company salary is benchmarking with industry and market
Q3 Can you share your opinions on which reasons caused high turnover? PROBE: Any change in working environment, management, policies?
Our organization conducts an annual performance review process for both direct and indirect employees to evaluate their performance and assess salary adjustments Salary increases are determined by individual contributions and are aligned with market standards, utilizing salary survey reports from Mercer-Talentnet for benchmarking.
In 2015, we established a Data Analysis team with the initial plan for short-term contracts, utilizing an agency for recruitment and contract signing However, due to the team's valuable contributions, our management decided to extend their contracts annually, leading to the ongoing partnership with the agency.
At present, we do not have development plans for indirect employees, as they are classified as short-term workforce Additionally, indirect employees do not have access to our resources, including e-learning systems, which are exclusively available to direct employees with the Group's approval.
Annual individual performance review and increase process;
Short-term labor contract for Data Analysis team
No development plans for Data Analysis team
Have salary review and increase process Have salary survey reports
Data Analysis team has the highest turnover rate When leaving, people usually told me that they have a better job with higher salary.
Some people told me that there is no career growth working here.
Since the labor contracts of Data Analysis team are signed for one year period, so they may feel unstable as they consider their jobs are short-term jobs.
The Data Analysis team has a dedicated workspace that allows them to focus on data and numbers, minimizing the risk of errors in their reports This arrangement reduces their opportunities for interaction with other office staff.
Unstable job Short-term jobs
Q4 Do you think what the most important factor which makes the employee decided to leave the company?
The Data Analysis team, classified as indirect employees, lacks the same benefits afforded to direct employees in the representative office, including comprehensive healthcare insurance for their families and additional allowances.
We prioritize providing top-notch office facilities to ensure our employees feel comfortable while performing their tasks Our working conditions are excellent, and we foster a positive work environment Additionally, we organize monthly lunch activities that encourage team bonding, which everyone thoroughly enjoys.
Have activities for all employees
Don’t have some benefits as other teams in the same office
Knowing that the unequal benefits and no retention plan makes the people in Data
The analysis team is experiencing low morale, which significantly contributes to a high turnover rate To address this issue, it's essential to develop strategies that inspire and motivate team members, ultimately reducing turnover Additionally, addressing the unequal benefits and implementing a robust retention plan will be crucial in fostering a more engaged and committed workforce.
Main reason causes high turnover rate
In my opinion, there is no retention plan for
The Data Analysis team often feels disengaged from the company, perceiving their one-year labor contracts as a temporary arrangement This short-term outlook leads them to seek other opportunities, resulting in frequent turnover when better offers arise.
The presence of one-year labor contracts creates a sense of job insecurity among my team members, leading them to feel unsafe in their careers This uncertainty is a significant factor contributing to their decision to leave the company.
The data analysis team appears to be less engaged with their colleagues, often working in isolation despite my efforts to encourage communication It remains unclear whether their tasks demand a quiet environment for concentration on numerical data or if a lack of confidence in interacting with others contributes to their disengagement.
Or they may think that they are not directly employed by ITVN, that made them feel unengaged and uncertain about their future career plans.
Not directly employed by ITVN
Due to the nature of works, Data Analysis team is less engaged with other teams Personal traits Job uncertainty
Q5 Please give your thoughts on the difficulties you have to face with on high turnover rate?