(Luận văn) factors impact employer attractiveness among it engineers in ho chi minh city , luận văn thạc sĩ

MINISTRY OF EDUCATION AND TRAINING t to UNIVERSITY OF ECONOMICS HO CHI MINH CITY ng hi ep w n lo ad ju y th yi pl n ua al LE TIEN THANH n va ll fu m oi FACTORS IMPACT EMPLOYER ATTRACTIVENESS nh at AMONG IT ENGINEERS IN HO CHI MINH CITY z z k jm ht vb l.c gm om MASTER OF BUSINESS ADMINISTRATION THESIS an Lu n va ey t re HO CHI MINH CITY- 2011 MINISTRY OF EDUCATION AND TRAINING t to UNIVERSITY OF ECONOMICS HO CHI MINH CITY ng hi ep w n lo ad ju y th yi pl n ua al LE TIEN THANH n va ll fu m oi FACTORS IMPACT EMPLOYER ATTRACTIVENESS nh at AMONG IT ENGINEERS IN HO CHI MINH CITY z z ht vb k jm MAJOR: BUSINESS ADMINISTRATION 60.34.05 l.c gm MAJOR CODE: om MASTER OF BUSINESS ADMINISTRATION THESIS n va MSc TA THI BICH THUY an Lu SUPERVISOR: DR HO TIEN DUNG ey t re HO CHI MINH CITY- 2011 i ACKNOWLEDGEMENT t to I would like to thank my supervisors Dr Ho Tien Dung and MSc Ta Thi Bich Thuy ng hi for their intensive guidance and encouragement during the course of my study ep I would like to express my sincere thanks to Dr Pham Quoc Hung and Dr Nguyen w Thi Nguyet Que for their reviews and constructive suggestions n lo ad I would like to extend my sincere thanks to Professor Nguyen Dinh Tho, Dr Tran y th Ha Minh Quan, Dr Nguyen Thi Mai Trang, members of the proposal examination ju yi committee, for their valuable comments and feedbacks pl ua al I would like to express my sincere gratitude to all of my teachers at Faculty of n Business Administration and Postgraduate Faculty, University of Economics Ho va Chi Minh City for their teaching and guidance during my MBA course n fu ll Finally, I would like to specially express my thanks to my wife, my family, all of m oi my classmates and my friends and for their support and encouragement at nh Ho Chi Minh City, 10th December 2011 z z k jm ht vb Le Tien Thanh om l.c gm an Lu n va ey t re ii Abstract t to ng Master Thesis in Business Administration, Summer 2011 hi ep Economics University Ho Chi Minh City Attracting and selecting the right types of employees, especially high quality w n resources have always been a challenge for organization But recruiting qualified lo ad applicants may become increasingly difficult over the next 15 years as demographic y th and economic factors are expected to create a “war for talent” A recent global ju survey from McKinsey in 2006 revealed that managers ranked “finding talented yi pl people” as the single most important managerial preoccupation for the rest of the ua al century Therefore, talented and skilled person will become rare and precious in the n labor market Thus, knowing what these candidates value in an organization and ll fu recruitment activities n va what attracts them to a company is an important prerequisite for successful oi m Both qualitative and quantitative approaches were considered in this research First, nh the qualitative research is conducted through making in-depth interview with eight at managers of IT/Telecommunication companies to check the content and meanings z z of words using in the measurement scales Then the main research is quantitative ht vb with 258 engineers who currently work in IT sector The Cronbach’s alpha is used jm to measure reliability, the Exploratory Factor Analysis attempts to identify k underlying variables and regression analysis is used to test the research model and l.c gm hypotheses om The result confirms that Interest value, Social value, Economic factors, Development value, and Application value have positive impacts on Employer an Lu Attractiveness among IT engineers in Ho Chi Minh City Therefore, the benefit of value, economic value ey Key words: Employer Attractiveness, interest value, social value, development t re to enhance their attraction and attract talented IT engineers n va this study will help IT companies to prioritize these critical factors when they want iii Contents Page t to CHAPTER 1: INTRODUCTION ng hi ep w n 1.1 The problem statement 1.2 Research questions 1.3 Research objectives 1.4 Research methodology lo Scope and delimitations of the study 1.6 Structure of the study ad 1.5 y th ju CHAPTER 2: REVIEW OF RELEVANT LITERATURE yi Concepts pl 2.1 Job choice and uncertainty 2.1.2 Job choice determinants 2.1.3 Employer knowledge 2.1.4 Instrumental and Symbolic attributes 2.1.5 Employer Attractiveness from employee perspective 10 n ua al 2.1.1 n va ll fu oi m Research Model 11 at nh 2.2 Variables and Hypotheses 11 2.2.2 Research model 12 z 2.2.1 z vb jm ht CHAPTER 3: RESEARCH METHODOLOGY 13 Research process 13 3.2 The pilot research 14 3.3 The main research 14 k 3.1 l.c gm The scales 15 3.3.2 The questionnaire 18 3.3.3 Measurement 18 3.3.4 Data collection 18 3.3.5 Population and sampling 19 om 3.3.1 an Lu n va Descriptive statistics 20 ey 4.1 t re CHAPTER 4: RESULTS AND DISCUSSION OF THE FINDINGS 20 iv t to ng hi ep 4.2 Cronbach’s Alpha Analysis 24 4.3 EFA Analysis 27 4.4 Correlation analysis 31 4.5 Regression analysis 31 CHAPTER 5: CONCLUSIONS AND IMPLICATIONS 37 w n 5.1 Conclusions of the research 37 lo Implications of the research 37 5.3 Limitations and suggestion for further researches 38 ad 5.2 y th ju REFERENCES 40 yi pl APPENDIX i n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re v LIST OF TABLES & FIGURES t to Table 4.1: Demographic statistics of the respondents 21 ng Table 4.2: Descriptive statistics 22 hi ep Table 4.3: Cronbach’s Alpha of all variables 25 Table 4.4: Cronbach’s Alpha of Employer Attractiveness after removing variable V53 26 w Table 4.5: KMO and Bartlett’s Test 27 n lo Table 4.6: Total Variance Explained 28 ad Table 4.7: Rotated Component Matrix 29 y th Table 4.8: The final measurement scale 30 ju yi Table 4.9: Mean, Standard Deviation and Correlation Coefficient 31 pl Table 4.10: Regression analysis on data of 258 responses 33 al n ua Table 4.11: Results 36 n va ll fu oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re CHAPTER 1: INTRODUCTION t to ng 1.1 The problem statement hi ep Organizations have always been concerned with attracting and selecting the right types of employees, Schneider (1987) Yet, recruiting qualified applicants may w n become increasingly difficult over the next 15 years as demographic and economic lo ad factors are expected to create a “war for talent”, Axelrod et al (2001) Two recent y th global surveys from McKinsey Quarterly strongly support this view While the first, ju in 2006, found that managers ranked “finding talented people” as the single most yi pl important managerial preoccupation for the rest of the century, the second, in 2007, al ua revealed that nearly half of the respondents expect intensifying competition for n talent to have a major effect on their companies over the next five years, Guthridge, va n Komm & Lawson (2008) Therefore, talented and skilled person will become rare fu ll and precious in the labor market Consequently, knowing what these candidates m oi value in an organization and what attracts them to a company is an important at nh prerequisite for successful recruitment activities z Due to the above mentioned cause, it has become increasingly important for z ht vb organizations to make themselves stand out from their competitors so that they are jm seen as attractive employers for prospective applicants Undoubtedly, this is a k challenge because jobs and organizations within the same industry are often very gm similar, Maurer, Howe, & Lee (1992); Taylor & Collins (2000); Thomas & Wise l.c (1999) According to Barber (1998), early recruitment stages are characterized by om an extensive search and screening, the gathering of rudimentary information about an Lu multiple opportunities, and little or no personal contact between the parties (2001); Highhouse & Hoffman (2001); Rynes (1991); Lievens, Highhouse, (2003); Lievens at al (2005) were exploring the content or basis of these impressions As in ey employers, research by Barber (1998); Cable & Graham (2000); Cable & Turban t re Considering the importance of applicants’ early impressions of organizations as n va involved Lievens, Highhouse (2003), organizational attraction was influenced by applicants' t to perceptions of job and organizational characteristics such as pay, opportunities for ng advancement, location, career programs, or organizational structure (Cable & hi ep Graham, 2000; Highhouse, Zickar, Thorsteinson, Stierwalt, & Slaughter, 1999; Honeycutt & Rosen, 1997; Lievens, Decaesteker, Coetsier, & Geirnaert, 2001; w n Turban & Keon, 1993) lo ad Besides that, in the early stages of the recruitment process, prospective applicants y th ascribed traits to organizations (Slaughter, Zickar, Highhouse, Mohr, Steinbrenner, ju yi & O'Connor, 2001) For example, people referred to some employing organizations pl as trendy, whereas other employing organizations were seen as prestigious These al n ua studies also discovered that these trait inferences about organizations were related to va the image of organizations as employers, with applicants being more attracted to n employing organizations having traits similar to their own personality For a better fu ll refinement from employee perspective, Berthon, Ewing and Hah (2005) suggest m oi five items of Interest value, Social value, Economic value, Development value and nh Application value to evaluate how an organization is attractive as an employer to at z potential employees z vb Vietnam is now one of the 10 most attractive global services locations in the world ht jm (A.T Kearney, 2009) and the IT (Information Technology) industry is estimated to k grow at a compound annual growth rate of 16% over the period of 2011-2015 With gm om (Ministry of Information and Communication, 2011) l.c around 10,000 licensed firms to provide services, with around 2000,000 resources an Lu On May 2011, German-based Bosch Group, a leading global supplier of IT services, opened a center focusing on embedded software and mechanical engineering va services in Ho Chi Minh City This US$4.5-million center, located at the Saigon n ey 2015 t re High-tech Park in District 9, is expected to employ around 500 local engineers by This recently setup, together with the rising presence of other big IT names like HP, t to Aricent, Sigma Designs, Texas Instruments, and Simax Global Services in Vietnam ng lead to competition with local entrepreneurs in terms of human resources hi ep Although many researches in the field of employer attractiveness have been conducted so far, few researches are available in the local context, especially for IT w n industry For this reason, it is necessary to conduct research on factors impacting lo ad employer attractiveness among IT engineers in Ho Chi Minh City, especially with y th factors such as Interest, Social, Development, Economic, Application From this ju yi study, companies can make suitable plans in order to enhance themselves and pl become more attractive to qualified candidates al n ua 1.2 Research questions n va This paper attempts to determine “What major factors impact employer ll fu attractiveness among IT engineers in Ho Chi Minh City?” oi m 1.3 Research objectives nh at The objective of the research is to identify critical factors that affect Employer z Attractiveness among IT engineers in Ho Chi Minh City The lessons learned from z k gm 1.4 Research methodology jm candidates available in the market ht vb this study would be useful for IT companies in their efforts to attract the best l.c The purpose of this research is to identify the factors impacting employer an Lu hence both pilot research and quantitative research are considered om attractiveness among IT engineers in Ho Chi Minh City by using the EFA method, The pilot research is conducted by making an in-depth interview with eight comments gathered from the interviews ey questionnaires The questionnaire is adapted from the literature as well as the t re about employer attractiveness factors and meaning of words using in the n va managers of four IT companies in Ho Chi Minh City in order to get their ideas 35 The results of the multi-linear regression in Table 4.10 showed that the standardized t to coefficient beta between Economic and Employer Attractiveness was positive, and ng significant (β =0.365, t =5.047, sig =0), meaning that hypothesis was accepted by hi ep the data In conclusion, there was significant impact of Economic value on Employer Attractiveness among IT engineers in Ho Chi Minh City And it is shown w n that Economic value has the highest impact on Employer Attractiveness among IT lo ad engineers in Ho Chi Minh City with Standardized Coefficients Beta =0.365 y th H4: Development has a positive impact on Employer Attractiveness among IT ju yi engineers in Ho Chi Minh City pl This hypothesis suggested that IT engineers in Ho Chi Minh City would find an al n ua employer attractive if they had a positive Development value in that firm va The results of the multi-linear regression in Table 4.10 showed that the standardized n ll fu coefficient beta between Development and Employer Attractiveness was positive, oi m and significant (β =0.241, t =4.526, sig =0), meaning that hypothesis was nh accepted by the data In conclusion, there was significant impact of Development at value on Employer Attractiveness among IT engineers in Ho Chi Minh City And z z Development value has the second most impact Employer Attractiveness among IT vb jm ht engineers in Ho Chi Minh City with Standardized Coefficients Beta =0.241 k H5: Application has a positive impact on Employer Attractiveness among IT l.c gm engineers in Ho Chi Minh City This hypothesis supposed that IT engineers in Ho Chi Minh City would find an om employer attractive if they had a positive Application value in that firm an Lu The results of the multi-linear regression in Table 4.10 showed that the standardized value on Employer Attractiveness among IT engineers in Ho Chi Minh City ey accepted by the data In conclusion, there was significant impact of Application t re significant (β =0.122, t =4.804, sig =0.005), meaning that hypothesis was n va coefficient beta between Application and Employer Attractiveness was positive, and 36 So the author has conclusion about the hypotheses test of the research model as t to shown in the Table 4.11 ng hi ep Table 4.11: Results w Hypothesis Result n lo Interest has a positive impact on Employer ad Attractiveness among IT engineers in Ho Chi Accepted y th H1 ju Minh City yi Social has a positive impact on Employer pl Attractiveness among IT engineers in Ho Chi Accepted n Minh City ua al H2 va Economic has a positive impact on Employer n Attractiveness among IT engineers in Ho Chi Accepted ll fu H3 oi m Minh City H4 at nh Development has a positive impact on Employer Attractiveness among IT engineers Accepted z z in Ho Chi Minh City vb H5 Attractiveness among IT engineers in Ho Chi jm ht Application has a positive impact on Employer Accepted k om l.c gm Minh City an Lu n va ey t re 37 CHAPTER 5: CONCLUSIONS AND IMPLICATIONS t to 5.1 Conclusions of the research ng hi This research makes a theoretical contribution to verify the construct measurement ep scales of Employer Attractiveness among IT engineers and relevant factors from w employee perspective within Ho Chi Minh City context The testing results of the n lo measurement scales using Cronbach alpha and Exploratory Factor Analysis (EFA), ad which show that they meet the reliability and validity criteria y th ju The aim of this research was to explore factors impact on Employer Attractiveness yi pl among IT engineers in Ho Chi Minh City Five independent variables such as ua al Interest value, Social value, Economic value, Development value and Application n value, are examined in this research The findings of the research will help local va n enterprises, especially IT enterprises on spending effort and attention to appropriate fu ll factor, in order to attract more talented employee and be the winner in the at nh 5.2 Implications of the research oi m increasingly competitive labor market z z The finding of the study has implications for local enterprises, especially IT vb ht enterprises, to anticipate and allocate resources and effort across those factors in l.c gm mind of potential applicants as the best place to work k jm order to create an attractive image as employer and positioned themselves in the This study provide evidence to confirm Interest value, Social value, Economic om value, Development value and Application value are positively impact Employer an Lu Attractiveness among IT engineers in Ho Chi Minh City But Economic value has the highest influence than the other factors, following by the Development value further their career ey opportunities or providing potential employee opportunities to gain experience to t re above-average salary, a good compensation package and equipped with promotional n va Therefore, enterprises need to in this factor is to review and consider to provide 38 In the IT industry, Interest value, which highlight the ability to create innovative t to and high quality products and services play a rather important role to employee So ng in the effort to attract skilled and proficient workforce, IT companies would need to hi ep send the clear message to potential employee of this difference to make itself more attractive to IT engineers w n Application value, which represents the attraction to employee of the opportunity to lo ad apply the knowledge they have studies, or share what they known with the other and y th giving back to society was proved to be less important than the above-mentioned ju yi factors The similar result is observed from the research that Social value, which pl represents the organization’s working environment, in terms of relaxed, fun al n ua collegial relationships and a team atmosphere are well less important than n va Economic, Development and Interest value ll fu 5.3 Limitations and suggestion for further researches m oi The limitations of this study are restrictions in the research scope nh Firstly, the research is limited to IT engineers in Ho Chi Minh City context If it is at z conducted at different contexts, the results might be different Thus, future research z ht vb should attempt to examine the impact of factors Employer Attractiveness but on jm different places would make the research more representative k Secondly, a limitation of this research is the survey subjects were limited by ability gm l.c to use computer and internet The questionnaire itself was designed to answer on the internet under the support of the software Google Docs - Forms and sent via om email/social network Although, IT engineers are considered to be computer and an Lu internet proficient, but including the more traditional approach such as mail or site n va visit would help to create a more representative sample Ho Chi Minh City But little is known on the causes of difference between these ey Development value are stronger on Employer Attractiveness among IT engineers in t re Thirdly, this research finds out that the impact of the factors such as Economic and 39 two factors with the remaining three (Interest value, Social value and Application t to value), further research may examine in more detail to clear this suggestion ng Finally, this research just studies about the factors from the employee perspective hi ep From literature, Employer Attractiveness may be influenced by other factors such as: employer reputation, employer image, trait preferences, corporate social w n responsibility, word of mouth; or else, in the context of recruitment which includes lo ad factors of: source of job advertisement, employer website, etc These may serve as y th ideas for future research ju yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re 40 REFERENCES t to ng Awang, Z.H and K Jusoff, 2009 “The Effects of Corporate Reputation on the hi Competitiveness of 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tốt nghiệp Cao học, chuyên ngành Quản Trị Kinh Doanh trường Đại học Kinh n lo Tế Tp Hồ Chí Minh Mục đích đề tài nghiên cứu Các yếu tố tác ad y th động tới Sự hấp dẫn công ty Kỹ sư Cơng nghệ thơng tin Tp Hồ Chí ju Minh (Factors impact Employer Attractiveness among IT engineers in Ho Chi Minh yi pl City) Tôi xin cam kết thông tin từ bảng câu hỏi sử dụng cho ua al mục đích nghiên cứu phạm vi luận văn nêu Rất mong quý anh chị dành n phút hỗ trợ việc hồn thành phiếu khảo sát Chúc anh chị nhiều sức khoẻ, thành va n công công việc sống fu ll Xin chân thành cảm ơn quý anh chị oi m at nh Lê Tiến Thành z * Required z vb k jm ht 1.1 Tôi tin công ty X tạo sản phẩm dịch vụ sáng tạo * gm Hồn tồn đồng ý om l.c Hồn tồn khơng đồng ý an Lu 1.2 Tôi tin công ty X doanh nghiệp sáng tạo, có tư cấp tiến cách làm việc mẻ* n va Hoàn toàn đồng ý ey t re Hồn tồn khơng đồng ý ii 1.3 Tơi tin công ty X đánh giá cao sử dụng khả sáng tạo * t to ng hi ep Hoàn toàn khơng đồng ý Hồn tồn đồng ý w n 1.4 Tôi tin công ty X tạo sản phẩm dịch vụ chất lượng cao * lo ad ju y th Hoàn toàn đồng ý yi Hồn tồn khơng đồng ý pl n ua al 1.5 Tơi tin cơng ty X có môi trường làm việc hứng thú * n va fu Hoàn toàn đồng ý ll Hồn tồn khơng đồng ý oi m at nh 2.1 Tơi tin có mối quan hệ tốt với đồng nghiệp công ty X * z z ht vb Hoàn toàn đồng ý k jm Hồn tồn khơng đồng ý gm 2.2 Tơi tin có mối quan hệ tốt với quản lý công ty X * Hồn tồn đồng ý an Lu Hồn tồn khơng đồng ý om l.c ey t re n va 2.3 Tôi tin đồng nghiệp công ty X hỗ trợ động viên cần thiết * iii Hoàn tồn khơng đồng ý Hồn tồn đồng ý t to ng 2.4 Tôi tin môi trường làm việc công ty X vui vẻ thân thiện * hi ep w Hoàn tồn đồng ý n Hồn tồn khơng đồng ý lo ad ju y th 3.1 Tơi tin có nhiều hội thăng tiến công ty X * yi pl al Hoàn toàn đồng ý n ua Hồn tồn khơng đồng ý va n 3.2 Tôi tin công việc công ty X ổn định * ll fu oi m nh at Hồn tồn khơng đồng ý Hoàn toàn đồng ý z z jm ht vb 3.3 Tôi tin công ty X trả lương cao mức trung bình ngành * k gm Hồn tồn đồng ý 3.4 Tơi tin cơng ty X có mức đãi ngộ hấp dẫn * an Lu om l.c Hồn tồn khơng đồng ý ey t re Hồn tồn đồng ý n va Hồn tồn khơng đồng ý 3.5 Tơi tin cơng ty X có nhiều trải nghiệm cơng việc từ phận khác nhau* iv t to ng Hồn tồn khơng đồng ý Hồn tồn đồng ý hi ep 4.1 Tơi tin có nhiều hội việc làm công ty X * w n lo ad Hoàn tồn đồng ý ju y th Hồn tồn khơng đồng ý yi 4.2 Tơi tin cảm thấy tự tin thành viên công ty X * pl al n ua va Hồn tồn đồng ý n Hồn tồn khơng đồng ý ll fu oi m 4.3 Tôi cảm thấy tự hào thân thành viên công ty X * nh at z Hồn tồn đồng ý z Hồn tồn khơng đồng ý jm ht vb 4.4 Tôi tin công ty X, tơi có nhiều kinh nghiệm để phát triển nghề k om l.c gm nghiệp * Hoàn toàn đồng ý an Lu Hồn tồn khơng đồng ý ey t re lý * n va 4.5 Tôi tin công ty X, nhân viên có ghi nhận động viên từ cấp quản v Hồn tồn khơng đồng ý Hồn tồn đồng ý t to ng 5.1 Tôi tin công ty X, tơi có hội để dẫn cho người khác kiến hi ep thức học * w n lo Hoàn tồn đồng ý ad Hồn tồn khơng đồng ý ju y th pl chuyên môn * yi 5.2 Tôi tin cơng ty X, tơi có hội để áp dụng kiến thức đào tạo ua al n va Hoàn tồn đồng ý n Hồn tồn khơng đồng ý ll fu m oi 5.3 Tôi tin công ty X doanh nghiệp hướng khách hàng * at nh z z Hoàn toàn đồng ý an Lu Hoàn toàn đồng ý om Hoàn tồn khơng đồng ý l.c gm k 5.4 Tơi tin cơng ty X có đóng góp/chia sẻ cho xã hội * jm ht vb Hồn tồn khơng đồng ý n va 5.5 Tơi tin chấp nhận có cảm giác thành viên công ty X * ey t re vi Hồn tồn khơng đồng ý Hồn tồn đồng ý t to ng 6.1 Với tôi, X công ty tốt * hi ep w Hoàn toàn đồng ý n Hoàn toàn không đồng ý lo ad ju y th 6.2 Công ty X hấp dẫn mặt công việc * yi pl al Hoàn toàn đồng ý n ua Hồn tồn khơng đồng ý va n 6.3 Tơi có hứng thú tìm hiểu thêm công ty X * ll fu oi m nh at Hồn tồn khơng đồng ý Hoàn toàn đồng ý z z k jm ht vb 6.4 Một vị trí cơng việc công ty X điều hấp dẫn với tơi * gm Hồn tồn đồng ý om l.c Hồn tồn khơng đồng ý Cuối cùng, vui lịng cho biết vài thông tin thân Anh/ Chị: an Lu Xin vui lịng cho biết giới tính anh/chị * n va ey t re Nam Nữ vii Xin vui lòng cho biết độ tuổi anh/chị * t to ng Dưới 25 (