(Luận văn) low engagement of production team in kimberly clark vietnam

t to ng UNIVERSITY OF ECONOMICS HO CHI MINH CITY hi ep International School of Business w n lo ad ju y th yi pl ua al n PHAN THUY LOAN n va ll fu oi m nh at LOW ENGAGEMENT OF PRODUCTION TEAM IN KIMBERLY CLARK VIETNAM z z k jm ht vb n a Lu SUPERVISOR: DR TRAN PHUONG THAO om l.c gm MASTER OF BUSINESS ADMINISTRATION n va y te re th Ho Chi Minh City – Year 2018 t to Table of Contents ng List of acronyms hi ep List of Figures List of Tables w CHAPTER 1: PROBLEM IDENTIFICATION n Industrial overview and Company overview lo 1.1 ad Industrial overview y th Company overview ju 1.2 Problem mess yi Symptoms 1.2.2 Situation analysis 10 1.2.3 Initial Cause-effect map 14 n ua al Problem identification 18 n va 1.3 pl 1.2.1 Heavy workload 18 1.3.2 Ineffective recruitment process 19 1.3.3 Low employee engagement 20 1.3.4 Consequence 21 ll fu 1.3.1 oi m at nh z CHAPTER 2: SUGGESTED SOLUTION 26 z 2.1 Cause validation 26 vb ht Reward & Recognition 27 jm Development Opportunities 28 k Team Leader Relations 29 gm Pay 29 2.2.1 om l.c 2.2 Alternative solution 32 Apply evaluation process for the payment structure 33 a Lu 2.2.2 Apply Market-based compensation system for the payment structure 39 n 2.3 Action plan in an organization 44 va CHAPTER 3: SUPPORTING INFORMATION 48 n th References 60 y 3.2 Interview transcript 48 te re 3.1 Methodology 48 t to List of acronyms ng KC: Kimberly Clark hi ep KCV: Kimberly Clark Viet Nam w FMCG: Fast moving consumer goods n lo EHS: Environment, Health and Safety ad IT: Information Technology y th ju HR: Human Resource yi OT: Ovetime pl n Unfav: Unfavorite ua al Fav: Favorite va n KPIs: Key performance indicators at nh z IDP: Individual development plan oi Lead OP: Lead production operator m OP: production operator ll fu BD: Binh Duong z n n va C&B: Compensation and benefit a Lu JERF: Job Evaluation Review Form om PO: Purchase Order l.c PR: Purchase requisition gm JEC: Job Evaluation Committee k jm ETQ: Excellence through quality ht JD: Job description vb ISO: International Organization for Standardization te re SAP: Systems, Applications and Products in Data Processing y th t to List of Figures ng hi Figure 1: FMCG growth nationwide in quarter 1/2018 (Source: Market Pulse Report Q1/2018Nielsen) ep Figure 2: Structure of Kimberly Clark Viet Nam w Figure 3: Number of leaving staff in person (Source: Human Resource Department) n lo Figure 4: Number of leaving staff in percentage (Source: Human Resource Department) ad Figure 5: Average Voluntary Attrition Rate 2016-2017 10 y th Figure 6: Initial cause and effect map 18 ju yi Figure 7: Number of leaving staff by experience (Source: Human Resource Department) 20 pl Figure 8: Overtime reasons Jan-Jun 2018 (Source: Human resource department) 22 al ua Figure 9: Performance of machines (first months in 2018) 24 n Figure 10: Waste of machines (first months in 2018) 24 va n Figure 11: Updated cause and effect map 25 fu ll Figure 12: The result of an employee engagement survey in 2017 26 m oi Figure 13: Fish bone map 31 at nh Figure 14: Final map 32 Figure 15: Market-based compensation process 43 z z Figure 16: Summary of manager's perspective 58 vb ht Figure 17: Summary of the leader's perspective 58 k jm Figure 18: Summary of employees’ perspective 58 l.c gm List of Tables om Table 1: Voluntary/ Involuntary turnover ratio in 2016-2018 (first months) 10 a Lu Table 2: Turnover ratio by department 2017-2018 (first months) 11 Table 3: Turnover ratio by position 2016-2018 (first months) 12 n n va Table 4: Working experience at KC of leaving staff in 2016-2018 (first months) 13 Table 6: Average Overtime per person Jan-Jun 2018 in percentage 22 y te re Table 5: Performance at KC of leaving staff 2017-2018 (first months) 14 Table 8: List of promotion of production (Source: Human Resource Department) 28 Table 9: summary of two solutions 44 th Table 7: Hiring cost in 2018 (Source: Human resource department) 23 t to EXECUTIVE SUMMARY ng Human is an important asset in the organization in general and production operators are hi ep the heart of manufacturing Production operators are direct labor who participate in the process to make product and account for more than 50 percentage headcount of the mill w n In 2018, the turn-over rate is increasing sharply and 85% falls into production team lo ad The high turnover rate in this group has a negative effect such as low skill workers, high y th demand for training, high overtime payment and high hiring-cost which is around more ju than 10 million VND each new comer Attracting people is hard but retaining talent is yi pl harder things The turnover ratio or attrition rate is one of the most essential ratios to ua al show how the efficiency of manage people of the company The higher turnover rate the n higher risk in the organization The main purpose of the thesis is to explore the causes of va n the high turnover rate of production operator in Kimberly Clark Viet Nam The thesis ll fu using theory-informed to group possible problem based on interviews and theory- oi m confirmed combined with depth-interview to figure out the main problem The finding of nh the thesis revealed that salary package is not attractive and it is one of factor of employee at engagement The solution for this is “Apply Market-based compensation system for the z z payment structure” to see that as if the salary for production team is competitive or not k jm ht vb om l.c gm n a Lu n va y te re th t to CHAPTER 1: PROBLEM IDENTIFICATION ng 1.1 Industrial overview and Company overview hi ep Industrial overview According to Market Pulse Report Survey quarter 1/2018 released by Nielsen Viet Nam- w n a global measurement and data company, fast moving consumer goods in traditional trade lo ad drop down significantly to -1% and modern trade drop to 2.7% (1) y th According to the Recruitment market overview 2017 released by Faro- an international ju staffing solutions company, manufacturing takes lead in recruitment with 82% Retail & yi pl FMCG (79%) and Tech & Telecom (73%) follow the lead (2) In addition, we should ua al understand the “vicious circle” of labor turnover When turnover increase, it start circle n process include decreasing average length of service, entry standards are relaxed cause va n deadline of recruitment, spending a lot of time to search candidates, losing a caring fu ll current employee and they start to leave due to isolation from leader or manager and oi m turnover keep increasing (3) at nh Overall, the market is slowing down and FMCG companies jump to a fierce battle to gain market share and high demand in recruitment will be one of the hard things for enterprises z z in general for Kimberly Clark Viet Nam in specific k jm ht vb om l.c gm n a Lu n va te re Figure 1: FMCG growth nationwide in quarter 1/2018 (Source: Market Pulse Report Q1/2018-Nielsen) y th t to Company overview ng Kimberly Clark Corporation (KC) was established in 1872, the United State Nowadays, hi ep KC’s headquartered is in Texas, USA and are proud that nearly one-quarter of the World’s population use our products every day We have a number or number w n position in more than 80 countries and there are 175 countries where our leading brands lo ad are sold With the mission that is to create new value for our customers through products ju world y th and services of superior quality, and to contribute towards a better and more sustainable yi pl Kimberly Clark Viet Nam has established in 2000 with three distributions in South, n fu Feminine Care: Kotex Kotex is one of the leading Vietnam brands within the ll • va Consumer brands: n through Viet Nam ua al Middle of Viet Nam and North From this, KC product can reach out to every family oi Baby child care: Huggies Huggies nappies and related products are developed and manufactured with the best quality at nh • m feminine hygiene category z z Industry: Fast moving consumer goods industry vb Kimberly Clark Viet Nam structure k jm ht Competitors: The main competitor is Unicharm Company with Diana and Bobby branch gm Kimberly Clark Viet Nam has two sites which are head office and mill There are six l.c departments with more than 200 employees in head office such as Sales Department, om Finance Department, Marketing Department, Customer Supply Chain Department, a Lu Procurement Department, and Human Resource + IT Department There are five n departments with more than 400 employees in a mill such as the Production Department, n va Engineering Department, Quality Department, Logistics Department and Environment, te re Health and Safety (EHS) Department Head office and Binh Duong mill have separately y th key performance indicator In this research, we only focus on the Binh Duong mill t to Sales Department ng Finance Department hi ep Marketing Department Head office Customer Supply Chain Department w n Procurement Department lo ad HR + IT Kimberly Clark Viet Nam ju y th Production Department Engineering Department yi pl Binh Duong Mill Quality Department al ua Logistics Department n EHS Department n va Figure 2: Structure of Kimberly Clark Viet Nam fu ll (Source: Human Resource Department) at nh 1.2.1 Symptoms oi Problem mess m 1.2 z In the year-end party which organized at Adora convention center (198 Hoang Van Thu z vb Street, Ward 9, Phu Nhuan District) in 1st December 2017, Mr Praneeth Yendamuri, jm ht Managing Director of KCV said in the opening of the party: k “In Vietnam, as one of the leaders in the categories we play in – over the years, Kimberly gm Clark Viet Nam has ensured millions of babies are kept comfortable and thrive through om l.c our Huggies brand and similarly millions of women are ensured of superior comfortable protection for their feminine intimate care needs through our Kotex brand Moreover, Viet a Lu Nam has many competitive advantages and one of that is the workforce with high skill n n comes true.” va So that there is no reason to stop us to be the pride of Asia Together, we will make it te re To achieve that vision, KCV needs to focus on people, operation, and working y th environment And the most important thing is about human Based on turnover data provided by Tran Xuan Binh- Human Resource Manager in the weekly meeting which organized with attendance of function head such as Production Department, Engineering t to Department, Logistics Department, Quality Department at Binh Duong Mill every ng Monday of March, he raised concern related to turnover rate keep going up and need hi ep support from other head of department to talk with their team member to figure out problem Yet all managers did not set priority on that because they still have other key w n performance indicators need to deliver In the other hands, they might think that the trend lo ad is always high after Tet is a normal thing And the number is increasing next two month y th raise big concern from Mill manager- Mr Duong Minh Hoai This is a big issue related to ju the workforce He stated in that meeting: yi pl “The turnover rate is increasing sharply over months, especially in production It impacts ua al strongly on the mill performance and we are losing talent HR and all function heads need n to figure out reasons and take action as soon as possible to avoid impact to the business.” va n According to data provided by the HR department at the end of June 2018, turn-over rate fu ll has been increasing sharply in the quarter I of 2018 (Figure 3) It was nearly double the m oi number of last year from 16 to 30 persons resigned The rate has a continuous increase in at nh the next quarter with 36 persons resigned and still higher than the same period last year The total leaving employees in first month of 2018 is nearly equal to the amount of total z z turnover number of 2017 (66/72) The number is unusual and need to be focused on by vb 36 30 24 om 21 l.c gm 16 11 n a Lu quarter I quarter II quarter IV te re 2017 leaving staff (person) quarter III n va 40 35 30 25 20 15 10 k Leaving staff in number jm ht the management team y 2018 leaving staff (person) (first months) th Figure 3: Number of leaving staff in person (Source: Human Resource Department) t to The chart below (Figure 4) is about leaving staff in percentage It makes data easier to ng understand The number of turnovers will be used to divide the total number of hi ep employees which are 426 to get the percentage The target of turnover rate in 2018 is 13% but the number hits to 7% in the only quarter I 2018 and 8% in quarter II 2018 It means w n the turnover target fails with 15% in June 2018 High turn-over will be a big problem of lo ad human resources in efficiency In the quarterly meeting, the management team requires to ju y th find reasons and action plans to reduce the ratio of turn-over yi Leaving staf in percentage pl 10% al ua va 4% 6% 5% n 6% 4% 8% 7% 8% 3% n fu 2% ll 0% quarter II quarter III oi m quarter I 2018 leaving staff (%) (first months) at nh 2017 leaving staff (%) quarter IV z z Figure 4: Number of leaving staff in percentage (Source: Human Resource Department) ht vb k jm To ensure that it is the issue happened in the company not the problem of the industry, it gm necessary to compare data with numbers of consumer goods industry Based on data from 2017 Asia Pacific Market Pulse Survey (Figure 5), the voluntary attrition rate of l.c om consumer goods decreases from 17.1% (2016) to 12.8% (September 2017) while end of June It is too high compared with the number of the industry Therefore, it is n va possible to believe that a high turnover rate is an issue need to be solved n a Lu Kimberly Clark Viet Nam 2017 attrition rate is 18% and 2018 attrition rate is 15% at the y te re th t to Gantt chart ng hi ep w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th 47 t to CHAPTER 3: SUPPORTING INFORMATION ng 3.1 Methodology hi ep The research was carried out for using the quantitative method and use the interview to gather data For manager level, there is an interview with production manager- Mr Vu Minh who work at the company for 25 years For leader level, there is an interview with Asset leader- Mr Ha Van Dien who is work for the company for 10 years For employee level, there are interviews with production operators who submitted resignation letterMr Vo Huynh Quang Hung (3 months), Pham Ngoc Tu (6 years), Bui Nhut Qui (8 years) and Phan Quoc Viet (3 years) Besides, the data was also collected from the management team’s meeting, engagement survey’s result of more than 400 employees in 2017 and HR’s statistics w n lo ad ju y th yi pl ua al 3.2 Interview transcript Interview n n va Introduction I would like to thank you for taking your valuable time to join meeting today I would like to listen to your fu ll thought about the reason effected on the turnover situation The interview should take a half hour Your m oi responses are confidential and anonymous There is no such thing as a correct answer, so please feel free at nh to respond Background Information z z Interview Start Time: 15:00 HR meeting room I = Interviewer jm Meeting place for interview: ht vb Interview End Time: 15:25 k R= Respondent Questions om l.c Q: How you feel about your experience working at KC? gm Date/month/year: 09/07/2018 A: I attended an operator trainee program for months and passed the program to be a permanent n va Q: What is the thing you like most at KC? a Lu employee for year I think KC environment is very good and I learn many things from here n A: I had learned many things from the company Firstly, I join KC as a trainee and then I am an employee te re I attend Presentation course, a technical course such as a belt, bearing… It is very useful y Question 3: What is the thing you dislike or think that KC should change? th A: I not have any idea about this I think everything is ok Q: What did your leader said when you told that you leave KC? 48 t to A: My leader and colleagues told me that they ready to support me to study They also told me that there ng is some colleague still that but after many days of thinking I still keep my decision I want to get a hi higher education and get a better job as an engineer ep Q: How about income when you leave KC? How could you pay the tuition fee and living? A: Actually, I also get a new job as an electrical engineer with a higher income and working time is w n suitable for my study lo ad Q: wow it is a good job Yet don’t they require university certification? At KC if you want to be an y th engineer you have to graduate from university, not college and have English certification ju A: No, they not need it I think this is a good chance for me The only thing I don’t like that I have to yi work at construction far from home pl Q: ok, I had read your Exit interview paper, and now I want to verify some point to make sure I al ua understand something to make you not comfortable when working at KC How you think about the n commuting distance between your place and company? va A: there is a company bus near my place but I cannot use that car because it is full of people so that I have n ll fu to go to the company by myself oi m Q: why don’t you tell me or any person in the HR team? A: I think it is not big deal I can go to work by myself nh Q: How you think about career opportunities for your position- Production Operator? at z A: There is an opportunity for OP position I will rotate through positions on the machine (OP1,2,3,4) z and after that, I can promote to OP level I→Lead OP→Lead OP level My leader also shares with me k jm ht A: Q: How you think about your wage? vb about that and I think it is good A: I am a freshman and my salary is very good at this time The workload that I have is not too much but gm it is not allocated for a whole month Some weeks are over workload make me feel tired and some weeks very much y te re We would like to express our respectfulness to your sharing today Wish you have a nice day Thank you n va Department: Production n Position: Operator a Lu Name: Vo Huynh Quang Hung om Personal information l.c are not busy like that th 49 t to Interview ng Introduction hi I would like to thank you for taking your valuable time to join meeting today I would like to listen to your ep thought about the reason effected on the turnover situation The interview should take a half hour Your responses are confidential and anonymous There is no such thing as a correct answer, so please feel free w n to respond lo ad Background Information y th Interview Start Time: 10:15 ju Interview End Time: 10:40 HR meeting room yi Meeting place for interview: I = Interviewer pl R= Respondent n Questions ua al Date/month/year: 30/07/2018 va Q: How you feel about your experience working at KC? For example type of work, workload, n ll fu environment… oi m A: I had worked at KC for years so that I felt ok with the workload It is not too much with me but it might be difficult for a newcomer Moreover, phase B had been set-up refrigerator so I think it is better z Q: What is the thing you like most at KC? at nh than previous years z I think KC has good benefit such as health check, health insurance, sport-activities, team building trip, a vb ideas leader to listen and consider, I think it is good k Q: What is the thing you dislike or think that KC should change? jm ht baby gift for newborn baby and wedding gift, especially safety environment When an employee raises gm A: for me, there is nothing Yet co-workers told me that they felt hard when following the reimbursement Q: could you tell me more detail? Are they newcomers? om l.c process of an insurance agency n But I think it is ok for me because I didn’t have a problem when claim medical expense a Lu A: they are working at KC 2-3 years They said that the time of approval is longer than previous years n te re A: I think my salary is it ok for now Yet, for an employee who is working for 2-3 years feel the va Q: How about your salary? Do you feel it enough for your work? percentage increase in wages is the low cause of inflation y th Q: How they compare to think it is low? A: They told me that workload is the same but work in nightshift will be affected their living life so that it should be more allowance In other companies, basic wages general is not higher than KC but there is 50 t to more allowance The benefit at KC is good for example insurance, annual health check Yet employee ng wants to receive a salary in money monthly more than that hi Q: How about a co-worker? ep A: my team is teamwork I think it is ok We organized a farewell party together, it is fun Q: How about your team leader? Does he has a meeting with the team and deliver a performance w n assessment? lo ad A: the current leader is new so there is nothing to say The previous leader is very good I like the thing y th that leader meet each team member to performance assessment They easily feedback for each person ju But Asset leader manages machines so that they manage triple the number of employees compared to yi the previous years-1 machine and they not have time to meet each person pl Q: Could you share with me your opinion about what KC can to make it better? al ua A: the target is increasing year-by-year will make newcomers fell stressful The current employee with n more experience at KC may be used to it In my opinion, it takes time for them to get acquainted with it va Besides that, Asset Leader and leader OP should have met and chosen enthusiast Lead OP to take care of n oi m newcomers and make them hurt ll fu newcomer In fact, there are some Lead Ops not have the enthusiasm to have, sometimes they scream In addition, when there is a new vacancy, everyone is happy to apply but actually, the manager has their nh decision So, the interview is just documented validation It is not necessary at z Q: I will note that There is anything you want to share? z A: I think it is enough I like KC environment but I have my own business so that I want to focus to vb jm ht develop it Personal information k Name: Pham Ngoc Tu gm Position: Operator om l.c Department: Production We would like to express our respectfulness to your sharing today Wish you have a nice day Thank you n va Introduction n Interview a Lu very much thought about the reason effected on the turnover situation The interview should take a half hour Your Background Information 51 th to respond y responses are confidential and anonymous There is no such thing as a correct answer, so please feel free te re I would like to thank you for taking your valuable time to join meeting today I would like to listen to your t to Interview Start Time: 16:30 ng Interview End Time: 17:00 hi Meeting place for interview: HR meeting room I = Interviewer ep R= Respondent Date/month/year: 09/07/2018 w n Questions lo ad Q: How you feel about your experience working at KC? y th A: KC environment is good, teamwork, safety But the target is going to increase make people stressful yi but equal salary ju With the same position, I can work comfortably more than at KC The operator at KC desired more skill pl Q: which company you compare with? al ua A: My friend work at A company as an operator This job is the same as me but he doesn’t work as much n as me When the problem happens, the operator has to solve right away if not waste ratio will be affected va by the performance of the shift Besides, there are many newcomers so that they not have the n ll fu experience to solve the problem Some even not dare to fix the issue oi m Q: Why don’t you raise to team leader to get support? A: How can he support? Asset leader manages machines now and there are many newcomers to each nh machine Therefore, he cannot move a person from this machine to support that machine at z Q: if you were leader what will you do? z A: I think that we have to minimum projects to have time to train newcomers or increase salary for an Q: How you think about your career opportunity? k jm ht vb operator position A: I have worked for years at KC and got promotion recently to operator level I think it is too long gm for the promotion Recently, there is a lot of promotion for the operator from level to level but they om l.c not know the reason I think it may come from the high turnover rate Q: I think your leader does not communicate clearly to his team member and make you all misunderstand n the factors affecting your decision to leave? a Lu about the process I will note and inform the manager level to make clear this for everyone So, what are te re opportunity for my career n va A: Actually, I got a new job as an electrical technician I will work daytime and a higher salary This is an Personal information y th Name: Bui Nhut Qui Position: Production Operator level I Department: Production 52 t to We would like to express our respectfulness to your sharing today Wish you have a nice day Thank you ng very much hi Interview ep Introduction I would like to thank you for taking your valuable time to join meeting today I would like to listen to your w n thought about the reason effected on the turnover situation The interview should take a half hour Your lo ad responses are confidential and anonymous There is no such thing as a correct answer, so please feel free y th to respond ju Background Information yi Interview Start Time: 16:00 pl Interview End Time: 16:25 al HR meeting room I = Interviewer ua Meeting place for interview: n R= Respondent n va Date/month/year: 10/07/2018 ll fu Questions oi m Q: How you feel about your experience working at KC? A: KC is the first company I work after graduated from college I have to think so much to make the z Q: What is the thing you like most at KC? at nh decision to leave z A: people are friendly, teamwork Safety is the most important thing and there is a safety person walk vb jm ht around to check Sometimes, I felt not comfortable but I think it is a good thing to keep everything safe Besides that, I learn many things from KC When I graduate I did not have any concept about real work gm Q: How about co-workers? k Joining KC is a chance for me at first step om l.c A: They support me in the beginning and now I can any position on my machine But each person has their own personality, some people are friendly but some are aggressive Overall, it is ok a Lu Q: What is the thing you dislike or think that KC should change? n A: I not have any ideas Yet I heard my experience co-workers said that the target is higher much more n A: Actually, KC has a career ladder but it is not clear about the promotion process There is a rumor already In the other hands, I want to look for a new job with a higher salary Because KC has system 53 th related to the interview process for internal transfer is just document validation Managers choose persons y te re Q: What are the factors affecting your decision to leave? va than the previous year They work comfortably in past time t to clearly, we just have a one-time increasing salary in a year If the starting point is low, it will be low for ng the future hi Q: Which position and have you apply to that position? ep A: electrical technician, Operator level I I just work for years I see that some person who work longer than me but they not have a chance to I w n Q: How about your wage? lo ad A: I work overtime so much so that I think it is enough for me but I not have time to relax I think I y th should take new opportunities ju Q: Have you got an offer from any company? yi A: I had an interview and waiting result pl Q: why don’t you wait until you get a result and leave KC? al n va Name: Phan Quoc Viet n Personal information ua A: I know that resignation letter should be submitted 30 days before the last working day ll oi m Department: Production fu Position: Operator We would like to express our respectfulness to your sharing today Wish you have a nice day Thank you nh very much at z z Interview vb jm ht Introduction I would like to thank you for taking your valuable time to join meeting today I would like to listen to your k thought about the reason effected on the turnover situation The interview should take a half hour Your gm responses are confidential and anonymous There is no such thing as a correct answer, so please feel free om l.c to respond Background Information a Lu Interview Start Time: 11:00 HR meeting room I = Interviewer n te re R= Respondent va Meeting place for interview: n Interview End Time: 11:25 Date/month/year: 10/07/2018 y th Questions Q: How you you think about the high turnover rate recently, especially in your function? 54 t to A: Last year, Binh Duong mill received Dream project which is overwhelming to the team and it fails to ng lead to low performance at the mill Moreover, KC faced challenging from a competitor so that our 2017 hi bonus result is not good It may reason make turnover rate too high this year ep Q: How the result of BD03 can effect on mill result? A: this is a very big project in which there is no KC manufacturing dare to Our management team w n thinks that we can achieve but it is the wrong decision It impacts the supply chain to Asia with our current lo ad product line All workforce focus on this project It made people feel exhausted months 2018? ju y th Q: That is the result of 2017 Do you think is there any reason impact to a high turnover during the first yi A: Operator think simple Their nature behaviors will look for another job when they got a lower bonus pl Q: The highest turnover falls into you function most so that you think any factors may impact? How ua al about the workload? n A: This year still have many projects to run Yet, regional workforce strategy is to keep headcount and va may reduce in the next several years It affected the workload and stability of work It may make the n ll fu employee feel worried and look for a new job oi m Q: What you think we should to change this situation? A: It is a big question I think we should focus on the quality of recruitment and engagement Recruitment nh will have to choose the right candidate and engagement program will have an employee connected to each at z other z Q: What you think about performance management in your team? vb jm ht A: KC has a performance management system strongly Every step of the process was guided very detail by document and HR support So that leaders just follow guide If they something wrong the system k will send an alert gm Personal information om l.c Name: Vu Minh Position: Production Manager a Lu Department: Production n We would like to express our respectfulness to your sharing today Wish you have a nice day Thank you n va very much te re Interview y th Introduction I would like to thank you for taking your valuable time to join meeting today I would like to listen you thought about the reason effected on the turnover situation The interview should take a half hour Your 55 t to responses are confidential and anonymous There is no such thing as a correct answer, so please feel free ng to respond hi Background Information ep Interview Start Time: 11:00 Interview End Time: 11:20 w HR meeting room n Meeting place for interview: I = Interviewer lo ad R= Respondent ju Questions y th Date/month/year: 11/07/2018 yi Q: How you think about the high turnover rate recently? pl A: The higher turnover rate the higher workload for a current employee They have to run a machine and al ua train for a newcomer at the same time Lack of human resource is the cause of high overtime n Q: Could you talk more detail about the cause of high turnover in the operator? va A: I think because they have a good offer from another company It is good for the employee But we have n ll fu to look back as if our policy is reasonable On the other hand, the quality and adaptability of candidate oi m recently are low HR should review source to get a higher quality candidate They easily quit the job KC employee worked under high pressure of target such as time, waste, productivities, minor stop, time of nh change-over Therefore, newcomers will be hard to follow at the beginning at z Q: How you think about control headcount? z A: It may because, too After automation packing installation, this is separate and specific part of the vb works on that It is hard for rotation k Q: What you think we should to change this situation? jm ht machine It means that there is no operator understand about this equipment cluster except the person who gm A: I think HR should review compensation as if it is competitive compared with others companies, focus because that is a regional strategy n va Position: Asset Leader n Name: Ha Van Dien a Lu Personal information om l.c on sourcing the right person for the right job About headcount control, I think we cannot anything We would like to express our respectfulness to your sharing today Wish you have a nice day Thank you y te re Department: Production th very much 56 t to Interview ng Introduction hi I would like to thank you for taking your valuable time to join meeting today I would like to listen you ep thought about the solution to solve high turnover The interview should take maximum a half hour Your responses are confidential and anonymous Please feel free to respond w n Background Information lo ad Interview Start Time: 11:00 y th Interview End Time: 11:15 Mill manager room ju Meeting place for interview: I = Interviewer yi R= Respondent pl Date/month/year: 15/10/2018 ua al Questions n Q: How you think about the suggested solutions? va A: there is one solution for the long term and the others for the short term with a different budget n ll fu Q: What you think about solution 1? oi m A: Solution is “Apply evaluation process for payment structure” It requires the investment about human resources and cost for a long time It should be considered next year when we add to the forecast plan Yet nh this is not suitable for this time when the year is ending and we need to stop loosing talent at z Q: How about solution 2? z Solution is “Apply Market-based compensation system for the payment structure” It will take less time vb jm ht to get the result to make sure that our package better the market or not and we will plan adjustment right now fo some key position Besised, the cost is the most important thing at this time when cost saving gm Q: so, you mean that the solution is the best way at this time? k objective is what we have to achieve this year om l.c A: for this time, yes, it is a suitable option to solve the situation But it is not enough, the HR department will make a plan for next year to review all the position to make sure our package is competitive with the n a Lu market n va Personal information te re Name: Duong Minh Hoai Position: Mill Manager y th Department: Mill general We would like to express our respectfulness to your sharing today Wish you have a nice day Thank you very much 57 t to ng hi ep low performnace of project low bonus low motivation unstable work reduce headcount heavy workload low employee engagement high turnover w n lo ad y th Figure 16: Summary of manager's perspective ju yi pl uncompetitive compensation package low engagement a lot of changeover a lot of project heavy workload low quality of candidate shortage resource of candidates ineffective recruitment process ua al low motivation n high pressure on job va n high turnover ll fu poor adaptability of candidate oi m external factor at nh new job with higher salary z z low incomes low allowance/ salary unclear evaluate unclear assessment high pressure on job a lot of changeover a lot of project heavy workload nightshift work unsuitable for study get higher education personal factor new opportunities with higher salary fierce compensation in recruitment low motivation low engagement k om l.c gm n a Lu high turnover jm ht vb Figure 17: Summary of the leader's perspective n va te re y external factor th Figure 18: Summary of employees’ perspective 58 t to ng hi Quotation of Project Position Evaluation ep w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th 59 t to References ng hi ep