(Luận văn) front line staff turnover retention at majestic saigon hotel

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business t to ng hi ep w n lo ad ju y th yi pl al n ua Huynh Minh Phuong n va ll fu oi m FRONT LINE STAFF TURNOVER nh at & RETENTION AT MAJESTIC z z vb ht SAIGON HOTEL k jm om l.c gm MASTER OF BUSINESS ADMINISTRATION n a Lu n va y te re Ho Chi Minh City - 2019 UNIVERSITY OF ECONOMICS HO CHI MINH CITY t to International School of Business ng hi ep w n lo ad ju y th yi pl Huynh Minh Phuong n ua al n va ll fu FRONT LINE STAFF TURNOVER oi m at nh AND RENTENTION AT MAJESTIC z z SAIGON HOTEL ht vb k jm om l.c gm MASTER OF BUSINESS ADMINISTRATION n a Lu SUPERVISOR: Dr NGUYEN THI MAI TRANG n va y te re Ho Chi Minh City - 2019 EXECUTIVE SUMMARY t to ng hi ep The most important feature of the hospitality sector is that it is based on human w element and it is labor intensive Since one of the competitive advantages of a hotel n lo business is the customer service, it is crucial to manage its people assets The ad y th customer satisfaction in hotel accommodation will be greatly depend on the success ju of the personnel Nevertheless, there is a rising problem of staff leaving as opposed to yi the ongoing growth of tourism industry and important extension of job possibilities in pl ua al Ho Chi Minh City It is demanding for hotel itself to attract and retain qualified n experts Reducing the rate of staff leaving and keeping them involved in activities is n va the option to lessen economic losses and maintain competitiveness fu ll This thesis aims at investigating the causes of Majestic hotel’s present changes in m oi front office personnel A qualitative research methods via in-depth interviews with nh at the objective of gaining preliminary perception of human resource management at z Majestic hotel The goal was to gather more comprehensive data in order to get a z ht vb further idea of their work jm k The findings are discussed in details in the research along with some om l.c hotel gm recommendations for the hotel and management board to improve turnover rate in the n a Lu n va y te re t to ACKNOWLEDGEMENT ng hi ep w n lo A completed study would not be done without any assistance Therefore, I gratefully ad ju research y th give acknowledgement to all who supported me during the time of doing this yi pl First of all, a special thanks to my supervisor – Professor Nguyen Thi Mai Trang for al n ua all valuable guidance, without her advice this could not have been possible va I also would like to show my gratitude to my colleagues at work and my friends for a n continuous support I also send my sincere thankfulness to my parents for their care ll fu oi m and love at nh z z ht vb k jm om l.c gm n a Lu n va y te re TABLE OF CONTENTS EXECUTIVE SUMMARY t to ACKNOWLEDGEMENT ng LIST OF TABLES hi LIST OF FIGURES ep INTRODUCTION w 1.1 Saigontourist holding company background n 1.2 Majestic Saigon Hotel lo ad PROBLEM CONTEXT y th 2.1 Overview of the operation of the hotel for years: ju 2.2 The turnover rate status in hospitality industry 12 yi 2.3 The turnover status in hotel 13 pl 3.1 Policies on working hours 16 ua al 3.2 Bonuses and benefits 18 n 3.3 Working environment 19 n va 3.4 Supervisor support 20 fu 3.5 Cause –and –effect tree 21 ll CAUSE VALIDATION 23 m oi ALTERNATIVE SOLUTIONS 25 at nh 5.1 Alternative solution 1: 25 z the line manager assign or reallocate the appropriate tasks to staffs 25 z 5.2 Alternative solution 2: 27 vb ht Reorganize training sessions on time management and task leadership 27 jm ORGANIZATION OF ACTIONS 29 k CONCLUSION 32 gm SUPPORTING INFORMATION 32 om l.c APPENDIX 54 REFERENCES 55 n a Lu n va y te re LIST OF TABLES Table 1: Business Performance of the Hotel 2016 - 2018 t to Table Quantity and income/month of hotel in 2018 ng Table -4 Training costs for management hi Table Action plan ep LIST OF FIGURES w n lo ad y th Figure –Organization Chart (2018) ju Figure – Business results of Majestic Saigon Hotel from 2016 to 2018 yi pl Figure – Annual revenue breakdown of Majestic Saigon Hotel from 2016 -2018 ua al Figure – Analytics of each function ‘s turnover rate Figure 5– The turnover rate of other hotels 2017-2018 n n Figure - Cause –and –effect tree va Figure - Recruitment cost 2018 ll fu oi m at nh z z ht vb k jm om l.c gm n a Lu n va y te re INTRODUCTION 1.1 Saigontourist holding company background t to Saigontourist was founded 44 years ago since starting from 1975 in Ho Chi Minh city ng hi originated from the travel industry Saigontourist has diversified its company, and ep now manages travel agents, hotels, resorts and restaurants fully equipped It will w actively grow its branches overseas to guarantee a continuous development in a variety n of fields lo ad ju y th 1.2 Majestic Saigon Hotel yi Majestic Saigon Hotel is a member of Saigontourist Corporation A star hotel with pl al French architecture located next to Bach Dang wharf, in the center of city The richest n ua Vietnamese American merchant of Saigon - Gia Dinh built a hotel named Majestic at n va the corner of the Catinat It was renamed Cuu Long, but the name was still Majestic, ll fu under the leadership of the department of tourism It continued with the upgrade to oi m floors and expanded further to Ton Duc Thang Street until 2000s On February 27 nh 2007, this hotel was recognized star standard by the Vietnam National at Administration of Tourism Majestic is also the first five-star hotel by the Vietnamese z self-investment and management The Majestic Hotel was awarded the "Green Hotel" z ht vb by the Asean of Asia Association and includes 175 rooms k jm In addition, Majestic also has restaurants: gm Cyclo Restaurant specializes exclusively in serving food bearing Vietnamese identity - Catinat Lounge serves Majestic's signature tea, coffee, fruit, and cocktails - Breeze Sky Bar opens 24/24 and serves breakfast, lunch, seafood buffet in the evening - Serenade specializes in serving European dishes - Prime hall: accommodating 500 guests, fully equipped with the facilities of an om l.c - n n va M bar: serve the food, favorite drink is prepared in Majestic style Especially the y presence of the band Flamenco - te re - a Lu international meeting room F & B (food and beverage) restaurants are responsible for catering to guests when they come to the hotel The customers to the hotel are businessmen, high class tourists, tourists in the form of t to MICE (a type of tourism combining conferences, seminars, exhibitions, corporate ng travel for employees ) and international visitors hi ep w n lo ad ju y th yi GM pl al n ua Asst.GM n va fu ll DGM oi m at nh F&B Dept Housekeeping Dept Front Office Dept Energy & Mineral Dept ht vb Sales & Marketing Dept z Accounting Dept z HR Dept k jm om l.c gm Figure Majestic hotel’s organizational structure a Lu (Source: Majestic’s Human Resource Department) n n va y te re This thesis focuses on the research of front line staffs who make a direct interaction t to ng with guests Therefore , it is easy to see that they are valuable assets and play key roles hi in the hotel and their contribution are important in hotel growth ep According to the statistics shown in the hotel report, the number of employees leaving w has dramatically increased in the past years from 2016 to 2018 Especially in front n lo office area, this number of staffs quitted their jobs are even more surprising ad This will be done through the use of qualitative research Specifically, it will be an y th ju analysis of reviews by employees and managerial responses The outcome provides a yi guidance tool to management, and it relates to turnover levels has to be reduced and pl minimized by applying possible methods al n ua PROBLEM CONTEXT va n 2.1 Overview of the operation of the hotel for years: ll fu oi m This is reflected in the targets of total revenue, profit of the business activities of at nh Majestic Saigon hotel over the years as follows: z z ht vb k jm om l.c gm n a Lu n va y te re Table Business Performance of the Hotel 2016 – 2018 2016 t to Category 2017 ng % Bil.VND 2018 % Bil.VND % Bil.VND 269 100 266 100 253.422 100 147.95 55 149.758 56.3 141.41 55.8 F&B 94.957 35.33 92.568 34.8 87.177 34.4 Other services 26.093 9.67 23.674 8.9 24.835 9.8 150.57 55.97 142.748 53.6 132.112 52.13 84.46977 56.10 82.22 57.6 74.776 56.6 56.237895 37.35 51.53 36.1 48.089 36.4 9.862335 6.55 8.99 6.3 9.247 118.43 44.03 123.252 46.4 121.31 47.87 63.48023 53.60 67.538 54.80 66.634 54.93 hi I Revenue ep Accomodation w n lo ad II Cost F&B yi Other services ju y th Accomodation n ua al Accomodation pl III Profit before tax 38.719105 32.69 41.038 33.29 39.088 32.22 Other services 16.230665 13.71 14.684 11.91 15.588 12.85 n va F&B ll fu m oi (Source: Accounting Division of Majestic Saigon Hotel) at nh z The chart below shows the business results of the hotel over the past few years : z ht vb 300 jm 250 k gm 200 l.c om 150 n a Lu 100 n va 50 Revenue Cost Profit 2017 y 2016 te re 2018 Figure Business results of Majestic Saigon Hotel from 2016 to 2018 10 quite inflexible and often time-consuming In order to have a space with a personnel price it is required to give a document and permission of other hotel departments, which is a bit frustrated In other places, an operation like this could be computer automated, therefore it generally doesn’t t to waste much time Uniform is prepared well, staffs don’t need to take care by themselves Annual ng team building are comfortable therefore staffs felt great with their peers hi ep Do you believe that your work is stressful ? How does it work ? w 2D Certainly Our job is to interact with different people therefore their demands are different too n Combined with a five star hotel scale, an amount of work is huge as well lo ad y th How about your relationships with peers ? ju 2D : Yeah, we’ve had a powerful connection Semi-formal at times yi pl al Do you have excellent manager relationships? n ua 2D : Not everybody Some of them lacked sufficient experience and strong skills va n Can you be creative at job and speak your thoughts ? ll fu 2D: Yes, mostly oi m at 2D : It’s been enough nh Do you believe that every shift has enough staffs ? z z vb What is the range of career progression ? ht 2D: I did not want to build a career in Majestic Due to the experience , I regarded it to be the brief jm om Do your executives get enough competencies and skills? l.c gm career k time job Trainings have organized , but not very well structured There is a chance to go further in a 2D: FO manager I trusted his skills, but I can’t say that for the remainder Some of the staffs have a Lu been biased FO manager personally recruited prospective candidates That’s why, some managers n hired couldn’t behave as they should or were too emotional in complex circumtances n va y 2D: Sure, however it would be good to get a bonus or prize te re Do you believe that executives appreciate your contribution and commitment to the job process How about a FO management attention for staff ? 2D : There are staffs that managers give a priority A scenario is demonstrated with continous back 43 office talks that supervisors continued to discuss staff about behavior Tell me an reason that you chose a hotel work ? t to 2D : There’s certainly a large space for improvements Majestic hotel is a perfect location for a brief ng job I used to work in a vibrant team experience, our staffs were able to contribute their job hi ep knowledge With distinct backgrounds, we were totally different, so approaches to services also varied I’ve learnt a lot at the end w n Why did you choose to work here ? lo ad 2D: Since I am still young and any hospitality specialist would like to work in such place y th ju Is a real job like as your anticipation ? yi 2D : There has a bit unalike It was fair enough at the start phases but with too many duties with the pl al same wage after I was allocated And my line management wasn’t helpful either I believe that most n ua of my additional duties have been moved from management n va In-depth interview 6: Interviewer (H): Huynh Minh Phuong • Interviewee (3B): Nguyen Thi Binh • Title: HR Manager • Date of interview: 12 August 2018 • Duration : 25 minutes • Address: Majestic hotel ll fu • oi m at nh z z ht vb k jm What you believe about hotel working hours ? 3B :Yes, I have a nice timetable in common I operate hours per day n a Lu Do you have a good balance in your work life? om l.c they should feel comfortable gm 3B : I believe it conforms to the –star hotel norms Our staffs are experts, so with assigned duties n va Do you believe that your job shifts are intended for the benefit of employees and employers y te re 3B : We tried to design it for the benefit of both Does your employer ask for additional working hours ? 3B : Sometimes yes, particularly when it peaks But of course staffs have been paid extra 44 Are your present wages better than a prior job? 3B : My wage now is a bit greater t to ng Have you got a monthly income on time? hi ep 3B : Sure w Does hotel give a scheme of bonuses and benefits ? n 3B : As back office staff, we don’t get a bonus, but there is always 13th wage lo ad 3B : yeah, it is ju y th Do you believe your wages are commensurate with your duties ? yi pl al What are your opinions about hotel benefit package ? n ua 3B : Yes, health take care fee is ok as other places The uniform is beautiful quality We are n of “family” at work va constantly organizing activities that can improve peer working relationship We want to build a sense ll fu oi m Do you believe that your work is stressful ? How does it work ? at is so hard to discover nh 3B Yes, because the turnover of staff is very high Every time an appropriate candidate to fill the role z ht vb 3B : Yes, certainly z Are you with your peers in good relationships ? Do you believe you’re involved in decision making ? om l.c gm 3B : Sure k jm Do you have excellent manager relationships? a Lu 3B : We have to be involved in decision making with the HR department But it is not a distinct unit n of hotel We this with the hotel vision n va te re Can you be creative at job and speak your thoughts ? y 3B : For sure Do you believe that every shift has enough staffs ? 3B : Yes, we are following the Saigontourist standard brand The need for this amount of individuals 45 to stay at this workplace How about a range of job progression ? t to 3B : We set up training on a weekly basis, which is essential In general, promotions should be every ng 1-1,5 years hi ep Do you believe that your executives have enough experience and skills in their employment ? w 3B : Yes n lo y th process ad Do you believe that executives appreciate your contribution and commitment to the job ju 3B : Sure, absolutely yi pl al How about a FO management attention for staff ? ua 3B : I totally agree with that This is always a crucial for hotel organization to consider their staffs n fairly n va ll fu Why you like your hotel work ? oi m 3B : I like the options of gaining as many skills as I can for my profession at nh Why did you choose to work here? z 3B : My experience is the most important for my career later on , so a completely fresh hotel team z ht vb would be great k om l.c gm 3B : Absolutely, it is a good workplace jm Was the real job the same as you anticipated ? In-depth interview 7: • Date of interview: 12 August 2018 • Duration : 25 minutes • Address: Majestic hotel - Current line employee y Title: FO staff te re • n Interviewee (1A): Dang Nha Thanh va • n Interviewer (H): Huynh Minh Phuong a Lu • 46 Could you please introduce about yourself and your position in the hotel ? 1A: I am FO staff in the hotel t to What you believe about hotel working hours ? ng 1A : A working hours are arranged proportional with duties , however they still could improve more hi ep Have you get a strong combination between work and personal life ? w 1A: Not yet,however in the future it could be n lo ad Are job shifts intended for a benefit between employees or employers? y th 1A: I see they are for guests’ benefits more Since our duties are done , we still remain at work to ju solve and complete a request for our guest yi pl al Does your employer ask for additional working hours ? n ua 1A: My executives are seriously opposed to it At work, they don’t like burning outs I’ve got to n va work extra,though, just because it’s logically necessary ll fu Is a present wages better than your prior job? oi m 1A: A little bit, however extended duties with rigid rules this payment goes with z 1A: Yes, there were never any issues with it at nh Do you get your payment in time? z ht vb Does hotel have a scheme of bonuses and benefits ? jm 1A: Yes, bonuses should be forthcoming quickly Now there was merely no time for it because of k 1A: No, never I’ m doing a lot too much But sadly, it is the same in any hotel n a Lu Tell us about hotel indirect bonuses ? om Do you believe your wages are commensurate with your duties ? l.c gm other problems, so this may alter in the near future y te re however it is time consuming for preparing documents n va 1A: Health insurance is the same as before, so there’s nothing luxury I booked a unique price space, Is your work stressful ? How does it work ? 1A: It’s not an office work because of individuals, the environment and curcumstances can differ 47 Tell me your opinions about the job here compared to another private hotel ? 1A: Managers here believe we ought to live in the workplace, therefore it becomes a working family I see in private hotels have more freedom I don’t care about late job,however a balanced t to working hours are better ng hi ep Are you with your peers in good relationships ? 1A: Yes w n lo Do you have excellent manager relationships? ad 1A: Sure y th ju Can you be creative at job and speak your thoughts ? yi pl 1A: Yes ,with guests in particular , I’m attempting to exceed expectations al n va 1A: It is n ua Does a hotel have an adequacy number of staff ? ll fu How about a range of job progression ? oi m 1A: As hotel requirements, a promotion will be given for top performs every two years I used to nh work in other hotels, so I created a plan by myself at Did your executives have enough experience and skills ? z z 1A: They did vb ht Did executives appreciate your contribution and commitment to the job process ? om l.c a Lu Why you like your hotel work and choose to be here ? 1A: Naturally, everyone is equal If not , how we operate the hotel gm What you think about FO management attention towards staff ? k jm 1A: I think they did n 1A: I like my peers, I like to interact and share the experience with global visitors I like working y te re work with someone you already understand n va with individuals I like to organize parties I also knew my managers before, so it is more glad to Was the real job the same as you anticipated ? 1A: No it’s a lot harder Because it is a center hotel in most crowded city 48 In-depth interview 8: t to ng hi ep • Interviewer (H): Huynh Minh Phuong • Interviewee (1B): Nguyen Phuong Thao • Title: FO staff- Ex-line • Date of interview: 08 August 2018 • Duration : 25 minutes w Could you please introduce about yourself and your position in the hotel ? n lo 1B: I am a frontline staff In the task area it covers the front office, call center, club lounge The guest ad service suite includes the concierge , bellboys and the Guest Relations Department, which takes the ju y th first contact with the guest looking for during their stay These are basically heavyweight yi pl Have you worked in any hotels before Majestic ? n ua al 1B: No, there are only internships It’s my first place of job va What you believe about hotel working hours ? n 1B: It’s too stressful After the change, I feel so tired Can’t imagine how individuals in this field have fu ll been working here for more than a decade I believe I would travel more frequently when I joined oi m nh What is your opinion about a balance between time allocated for work and personal interests? at 1B : At present , I see just work relates However, a scenario could be quickly altered z z ht k jm 1B : Naturally in the employer’s favor vb Do you believe that your job shifts are intended for the benefit of employees and employers? 1B :You don’t expect any higher wage when you are an intern n a Lu How would you compare your present payments to the prior job? om l.c 1B : When we had to prepare for peak season, it wasn’t gm Does your employer ask for additional working hours ? n va Do you get your payment in time? y te re 1B :Yes Does hotel have a scheme of bonuses and benefits ? 1B :Sometimes I get suggestions from the guest for assistance or to prepare a particular space 49 Do you believe your wages are commensurate with your duties ? 1B Though a wage is little higher than other place but a lot of norms and guidelines are in place t to ng How about other benefits for staffs at Majestic ? hi ep 1B :In general, normal benefits have been nice Is your work stressful ? How does it work ? w 1B : It is because of different guests with so many demandings n lo ju y th 1B Yes ad Are you with your peers in good relationships ? yi Do you have excellent manager relationships? pl ua al 1B I think I n Are you involved in a choice making ? va n 1B Not often I’m going to say it during the meeting if I have an idea ll fu at z Do you believe that every shift has enough staffs ? nh 1B Yes , I can be oi m Can you be creative at job and speak your thoughts ? z ht vb 1B Yes, according to hotel k jm What is the range of career progression ? om l.c good adaptation for staffs , therefore that is a nice chance to build a career gm 1B : Trainings are fundamental but they are useful to repeat frequently A hotel is known for having a Do you believe that your executives have enough experience and skills in their employment ? n a Lu 1B : Some of them not at all y te re 1B : I think they n va Do you believe that executives appreciate your contribution and commitment to the job process What you think about FO management towards staff ? 1B : I disagree For sure, there’s an individual that leaders like 50 Why you like your hotel work and choose here at Majestic? 1B : My interest is travel and hospitality sector in specific After school, I find a job and see an opportunity here t to Was the real job the same as you anticipated ? ng 1B : For now , it’s hard, but I might just have to get used to it hi ep In-depth interview 9: w Interviewer (H): Huynh Minh Phuong lo Interviewee (1C): Ma Quoc Hung ad • n • Title: Current HR staff • Date of interview: 08 August 2018 • Duration : 25 minutes • Address: Majestic hotel ju y th • yi pl ua al n Could you please introduce about yourself and your position in the hotel ? va 1C: I'm responsible for training and apprentices, for both line staff and leaders in the hotel and also n to implement any projects,make sure all standards are in line and new employee are well trained ll fu oi m Is there sufficient staff in hotel for planning ? at it needs a big supporting from supervisors nh 1C Yes , it is Specially, in a peak season, there is always more than a number of normal tasks and z z ht vb What is the range of career progression ? gm Do executives own enough competencies and skills ? k jm 1C : A promotion is supposed to be after two years at first and lately a wage rise is given om l.c 1C: That’s right, yes But they ought to be more relaxed I’m scared of their approach 1C : I think I believe it is n a Lu Do you believe that executives appreciate your contribution and commitment to the job process? va n What is your opinion about FO management attention towards staffs ? te re 1C: Well, frankly , I don’t understand I believe so y Why you like your hotel work ? 1C : Our colleagues now are like a second family My job gives me a chance to meet new people 51 worldwide I can learn different things from other cultures Why did you choose to work here at Majestic ? t to 1C : My desire is to have an experience for working in this standard of hotel ng hi ep Do you think your current position matched with your anticipation ? 1C : It might be better It is supposed that most of my duties are fixed but it doesn’t work like this w in reality n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z ht vb k jm om l.c gm n a Lu n va y te re 52 ad ju y th yi pl ua al Data collected after the interview: n 2A 2B Too many duties Poor functioning reward system 2C Payments not in line with responsibilities & workload No involvement in decision making oi m ll at nh z Stress factors Poor work life balance Payments not in line with duties fu Unbalance worklife Payments not in line with responsibilities & workload Low trust level in middle management 1B n What are the reasons why front line staffs in hotel decided to leave soon? 1A Findings va Question 2D Workload Leadership Unclear tasks 3A 3B z Low trust Inability of level in management to implement hotel middle management policies into practice Lack of supervising experience and competencies Low trust level in middle management Middle Train in time Recruit trainees to Inability of combine work with studies Leadership Stress factors om l.c gm Supervising support Too many duties , Inability of combine not combined with work with studies studies k What is the key main reason lead to the issue? jm ht vb Lack of financial rewards and bonuses Poor management Biased attitude task trainings to managers Flexible policy Manager assigns the should have a the best and the team members communicate and taken first? coaching balance the management workload for the workload for team team coaching ac th receive the training increase manage the and task y te should be management re mentor to handle guests, n suitable workload to understand how to va which works Train managers to an solution Every individuals Conduct leadership and Lu What is the si eg cd 53 jg hg APPENDIX t to ng hi ep Staff Executive X X X X X X X X X X X X X X X X X X X X X X X Current KPIs Report from Human Resources Department in 2018 Performance indicators I Per shift Number of failures at work Number of required tasks II Efficiency Efficiency of employees in service delivery Time used Schedule roaster III Quality Percent of mistakes, which not meet quality criteria Number of complains Quality of internal and external services IV Service plan tracking Percent of service requests finished ahead Percent of service requests finished late V People Management Compliance with regulations and attitude at work Lost workdays due to illness/personal issues Ensure an effective interaction is maintained with other teams and w n lo ad ju y th yi pl n ua al va departments X X X X X Evaluation results from the HR department Complete job satisfaction Turnover rate Employee‟s proposals for innovations Provide support and input to continuous improvement activities within the n ll fu oi m at team nh X X z Ensure quality of training course for services and processes within the team z vb X X ht Deal with personnel issues in line with hotel policy and agreements Feedback to the Management team to share ideas and improve operation k jm om l.c gm n a Lu n va y te re 54 REFERENCES UNWTO Tourism Highlights: 2018 Edition | World Tourism Organization [cited 2019Jul24] Available from: t to ng https://www.e-unwto.org/doi/book/10.18111/9789284419876 hi Hotel Survey 2018 [Internet] Grant Thornton Vietnam | Audit | Tax | Advisory | ep Outsourcing [cited 2019Jul24] Available from: w https://www.grantthornton.com.vn/insights/articles/thought-leadership/travel- n lo tourism-leisure/hotel-survey-2018/ ad Koushan D Vietnam’s Tourism Industry Continues its Growth in 2018 [document y th from https://www.vietnam-briefing.com/news/vietnams-tourism- yi Available ju on the internet] The Vietnam Tourism Association;2019[cited 2019 July 25] pl al industry-continues-growth-2018.html/ of psychological contract and affective commitment World Applied n va effect n ua Mohamad H.A, 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