(Tiểu luận) topic research on the issue of employee turnover rate in 3 agencies in hanoi

MINISTRY OF EDUCATION AND TRAINING NATIONAL ECONOMIC UNIVERSITY GROUP ASSIGNMENT AGENCY MANAGEMENT Topic: Research on the issue of employee turnover rate in agencies in Ha Noi Group: CLASS : POHE - TT MKT 62 Members: Bùi Hoàng Yến Nhi 11202963 Lê Thảo Nguyên 11202901 Tào Thiên Trang 11208152 Vũ Hồng Quân 11203282 Nguyễn Ngọc Huyền My 11202631 Lecturer : ThS Lê Phạm Khánh Hoà Ha Noi, 2023 TABLE OF CONTENTS: I OVERVIEW OF THE AGENCY MARKET IN HANOI II INTRODUCTION ABOUT AGENCIES III ORGANIZATIONAL STRUCTURE OF AGENCIES IV ISSUE OF EMPLOYEE TURNOVER RATE IN AGENCIES V PROPOSED SOLUTION VI CONCLUSION - LESSONS FOR AGENCIES I OVERVIEW OF THE AGENCY MARKET IN HANOI: The communication and marketing industry is increasingly developing due to the wide market and high customer demand Because Hanoi is one of Vietnam's leading economic and cultural centers, the widespread and strong development of agencies is inevitable The agency market in Hanoi is extremely diverse with many types: Research Agencies, Event agencies, Digital agencies, Strategy & Branding agencies, and Creative agencies To ensure the effective and successful operation of agencies, retaining personnel is a major concern Therefore, our group surveyed the turnover rate issue at agencies, which are ADT Creative, 5S Consulting & Media, and Simple Team, identified the causes, and proposed solutions for this issue II INTRODUCTION ABOUT AGENCIES: 1, ADT Creative: a, About the company: ADT Creative is a professional communication and marketing agency that combines new technology platforms to deliver successful campaigns for many large brands in Vietnam b, Services: - Strategy: They offer services such as brand strategy consulting, marketing planning, and advertising planning suitable for the client's budget and achieving the desired objectives - Production: + Interactive Website/ Landing Page + Viral Clip/ iTVC/ TVC + Photography, 2D, and 3D illustrations + Event planning - Creative: + Interactive content: Facebook/Instagram) Playable ads, AR ads (TikTok/ + Interactive website + Interactive OOH - Management: + Campaign coordination and management to achieve KPIs + Advertising effectiveness reporting + Customer engagement and broad dissemination of brand messages c, Achievements : - World Coffee Museum (Client: Trung Nguyen Group): 360˚ virtual museum space displayed on the website platform, utilizing 3D digital technology to transform exhibits into 3D models and showcase them in a virtual museum - VINCITY (Client: Vingroup): VinCity app with outstanding features such as introducing images, videos, and information about the typical apartments and floor plans of the VinCity project The app provides information about the project data including subdivisions, buildings, and associated utilities 2, 5S Consulting & Media: a About the company: 5S Media is a company that accompanies and provides creative and effective communication solutions for businesses to enhance their brand image, attract public attention and affection, and achieve efficient business operations in the Vietnamese market b Services : - Integrated marketing communication: + Integrated Marketing Communication Campaign + Social Media Marketing + KOL Marketing + Public Relations + Corporate Social Responsibility (CSR) + Measurement of Communication Effectiveness - Event organization: + + + + + Important corporate events Marketing and sales events Brand launching events Product experience events Team building events - Creative Studio: + Advertising design + Product photography + Packaging design + Website design + Communication design + Video production c, Achievements : - The community-oriented and integrated communication campaign named "My Way” was conducted and implemented to enhance the brand recognition of OWEN - The 5K Dance campaign - Lifebuoy brand x Ministry of Health (Slides 52-62): introduced a song and dance called 5K, calling on people to strictly comply with and protect the community's health in Vietnam 3, Simple Team - Online Advertising Team: a About the company: Simple Team was established in November 2019 with a focus on digital marketing services Simple Team's initial clients were small and medium-sized businesses that needed to run advertising b Services: - Advertising: With expertise in setting up and operating online advertising channels such as Facebook, Google, Instagram, Tiktok, Zalo, and Cốc Cốc, mainly on Facebook, Google, and Instagram Simple Team strives to generate as much quality data as possible to convert into the most effective orders - Content package: Simple Team provides creative content creation and image design services Specifically, Simple Team provides customers with two advertising content packages for their page with 30 and 60 posts per month, respectively, in which customers will be provided with detailed post plans and post content with accompanying images for their store With this service package, Simple Team takes care of writing advertising posts, managing fan pages, designing banners, and creating highly attractive and engaging posters - Landing Page Service: Realizing the effectiveness of Conversion Advertising, Simple Team always encourages its customers to run ads by building a landing page that can introduce the business and sell products, create the best user experience, and collect customer information to make highly effective sales - Rented marketing department: Simple Team provides full-service marketing solutions for business owners, encompassing all the tasks of an in-house marketing team at only one-third of the cost Additionally, the company is preparing to offer two new services, Simple Academy (marketing courses) and Simple Jobs, although these plans have been temporarily delayed due to the pandemic c, Achievements: Simple Team has achieved significant milestones by collaborating and providing digital marketing services for large businesses in various industries, including: - Fashion: Gugee, Parttime, Navi - Telecommunications: Viettel, MobiFone - Finance: F88, BIDV - Real Estate: Xanh Villa, CenLand, An Cựu - Education: Du học Ưu Việt, Mầm non Linh Đàm - Gym/Yoga: Level Fitness - Cosmetics: V Shine Thái Hà, Laura Sunshine, M.O.I III ORGANIZATIONAL STRUCTURE OF AGENCIES: 1, ADT Creative: a Departments: include Administration, Account, Creative, and BOD Specifically, the functions of each department are: - Administration: Manage the entire internal operations of the company - Account (Client Service): + Search for new and potential customers for the company Document continues below Discover more from: thông Truyền Marketing MarComNEU Đại học Kinh tế… 69 documents Go to course 17 Dior - chiến lược truyền thông của… Truyền 100% (1) + Work as an intermediary between clients and thông… the agency, with the task of attending meetings and receiving briefs from clients, managing work progress, and deadlines, ensuring that the client payment process complies with regulations, and ensuring that the Ahg hđ quảng cáo products delivered by the Creative department the mua client'shàng tớimeet ý định 19 requirements Truyền thông None Marketing - Business Development: + Find new partners + Implement projects and communication campaigns Plan Overview + Along with that is monitoring and supervising the progress and Truyền thông None effectiveness of the project Marketing - Creative: + Develop ideas and execution plans for campaigns Content review mỹ + Provide creative solutions to meet customer requirements phẩm Truyền thông None b Personnel structure - levels: Marketing - On the first rank is the CEO, who performs the task of managing all activities of all departments - Next are the leaders of each department who will assist in directing, Tlaaaaaaaaaaaaaaaâ managing, supervising, and encouraging the activities of their department Truyền thông according to the prescribed procedures and regulations None Marketing - Then come the regular employees in each department and finally, the interns Assignment Brief - 2, 5S Consulting & Media: a, Departments : A1 - Mar 2022-3 Truyền thông - Finance: Manage the company's revenue and expenses as well as None Marketing employee salaries and bonuses - BD: Develop business strategies for 5S, build brand image, and establish relationships with customers - Event: Responsible for implementing event services for customers (Important corporate events, Marketing and sales events, Brand promotion events, Product experience events, and Team bonding events) - Marcom + Studio: Manage integrated marketing communication campaigns (Social media marketing, KOL marketing, Public relations, Corporate social responsibility (CSR), Communication effectiveness measurement) and creative studio services (Advertising design, Product photography, Packaging design, Website design, Communication material design, Video production) b, Personnel structure - levels: - At the top of 5S Media is CEO Hang Pham - Next, the Finance Advisor, BD Director, Virtual Event Advisor, and COO will be the general supervisors of departments: Finance, BD, Event, and Marcom - After that, in each department, there will be Heads of the services that 5S provides Especially in the Marcom department, which has the most services, there will be Heads: Head of Marcom (responsible for IMC projects), Growth Manager (responsible for marketing development and management projects), and Head of Studio (responsible for image projects) - Then comes the Executive staff and finally, the Freelancers and Trainees will be at the lowest level 3, Simple Team: a, Departments: - Strategy Team (Plan + Account): Specializes in researching and planning marketing strategies for projects - Advertising Team (Ads Management): Specializes in implementing advertising campaigns on various channels such as Facebook, Instagram, Google, Zalo, TikTok, etc - Content Team (Content + Design): Specializes in creating content and designing images and videos to take care of the fan page and Website b, Personnel structure - levels : - At the top is the Director who is responsible for managing all the activities of the company and making important decisions within the company - Next are two Deputy Directors One manages the company's external affairs, seeks customers, and the other manages the professional activities of the teams - After that are the Lead Teams who are divided into three main tasks, and finally, the employees The Simple Team also has contractors but they are not included in the official personnel IV ISSUE OF EMPLOYEE TURNOVER RATE IN AGENCIES: 1, Situation: The question raised: - Is the employee turnover rate at [agency name] high and what positions they usually hold? Interview responses: a ADT Creative: - Mr Thang Phan - Designer: “I see a high employee turnover rate in all positions at ADT, creative is 50-50, often having to recruit interns to help out This is not only the case at ADT but also at most agencies At ADT, we can keep interns for 1-2 years, while other agencies have more frequent turnovers.” - Ms Phuong Linh - Creative: “Based on my work experience at various agencies and my observation during my time here, ADT staff tend to stay for a while, but only for about years for core positions and months-1 year for interns I have been here for over years and have seen significant personnel changes in various departments; most of the people who joined the company at the same time with me have been replaced by new faces.” b 5S Consulting & Media: - Ms Trang Nguyen - COO 5S Media: "Executive-level employees at 5S usually resign after about 2-3 years, when the personnel system has stabilized and they have received a considerable amount of company training Freelancers and trainees who perform crucial tasks on projects also tend to resign after 3-6 months This creates difficulty for the company in finding replacement personnel, who need to have both professional competence and the ability to adapt quickly to the company's culture and receive and maintain the projects left behind by former staff in a short period.” c Simple Team: - Ms Bich Ngoc - Strategy team leader: “Simple Team currently has about 20 staff members and some collaborators, with 50% being part-time student workers and the remaining 50% being full-time employees Simple Team staff is all young people who are either students or have just graduated within months to year They tend to change jobs frequently, as they learn new skills from the company and gain more experience, they then want to develop their careers at other companies to learn more I see this turnover rate happening in all departments of the company.” => CONCLUSION: The employee turnover rate in agencies is currently quite high, and this has become characteristic of the fragmented industry with intense competition Specifically: - For positions such as Fresher and Intern, employees not have a strong commitment to the company, and the turnover rate after months to year is as high as 80-90% Only a few cases are promoted to higher positions, such as official employees tend to stay for a longer period of time - Regarding Mid-level positions, the turnover rate is also considerable, at around 50% - This phenomenon happens in every department in an agency 2, Reasons: The question raised by the group is : - What you think causes this situation? Interview responses: a, ADT Creative: - Mr Thang Phan - Designer: "The reasons I usually see for quitting a job are pressure, finding a better job, and poor health Some people also experience psychological problems and lose interest in their current jobs due to a large workload and undesirable salaries." - Ms Phuong Linh - Creative: "There is a lot of demanding work while the job itself is not well-paid Students often take more time off because they cannot balance a heavy workload with their studies." b, 5S Consulting & Media: - Ms Trang Nguyen - COO 5S Media: "I think the first reason is the characteristics of the mid-level position These are people with experience and knowledge who have been trained and have experienced many jobs with large customers During the waiting period for promotion to a senior position, they are easily persuaded by headhunters or invitations from other companies with better benefits and working environments The second reason is that employees may feel unsuitable for the work environment After a period of bonding, they may become bored with the work environment and want to change to another company or position to learn more and experience something new The third reason is a lack of recognition They can the work of a senior position, but the recognition they receive is at the junior level Without recognition for their contributions or opportunities for advancement, they will not have the motivation to work, leading to reduced productivity and loss of motivation Finally, the employees at 5S are currently handling a large workload They have to take on the tasks assigned by seniors, guide freelancers, trainees, and even juniors who are just joining the team Too much work and expectations from bosses and colleagues can create mental stress for them As for freelancers and trainees, the main problem that I see is that they receive low salaries, have no career advancement plan, and have to take on many tasks compared to a part-time job Sometimes, they are forced to work overtime without pay and find it difficult to balance work and study.” c, Simple Team: - Ms Bich Ngoc - Strategy team leader: "For students who work as part-time employees who usually join the company with the expectation of improving their practical skills, accumulating experience and skills for their future jobs Some of them want to earn extra income for living Therefore, when they have a certain amount of experience, they intend to change jobs, seeking a new job to learn new experiences or a job with a higher salary In addition, the dense academic schedule is also one of the main reasons for this group of employees to request to leave their jobs Nowadays, there are also many new opportunities for students such as freelance online jobs that provide high salaries and flexible time suitable for their school schedules For full-time employees, their loyalty to the company often depends on their salary level Objectively evaluating the human resources strategy of Simple Team shows that the remuneration and bonus policies for employees are not high: part-time employees (1.5 million VND basic salary + 10% commission), full-time employees (3 million VND basic salary + 10% commission) In addition, there are other objective reasons such as employees being attracted by agencies with better compensation packages." => CONCLUSION: There are many reasons that lead to high turnover rates at agencies Among them are some reasons that agencies can take measures to improve, including: - For Fresher and Intern positions: + Heavy workloads, low-paid salaries, and part-time work regulations make employees feel exploited and quit when they cannot balance their time, emotions, and incentives + The main purpose is to learn but they feel that the company does not have many activities to develop their expertise + The company does not provide a clear career path or specific development opportunities, causing frustration and a lack of motivation to work and contribute to the company + There is no long-term commitment because the purpose of working is to learn, and gain experience Besides, many of the interns, and freshers are simply not yet qualified for taking on heavy workloads in the agency - For Mid-Level and above positions: + Salary, benefits, and rewards not match the level of competency (upgraded during the working process but salary tends to remain the same) and are not competitive enough compared to other companies + There is no adequate recognition from higher management + The company does not provide a clear career path or specific development opportunities, causing frustration and a lack of motivation to work and contribute to the company V PROPOSED SOLUTION: Rebuilding Personnel Structure: - Currently, many agencies hire numerous part-time staff and only have 1-2 team leaders and executives to supervise them in order to cut costs for personnel salaries However, according to surveys, employee students face difficulties in balancing work and study, and have a low level of commitment to the company, causing difficulties in the agency's operations => Agencies should consider reducing the ratio of interns and part-time employees while increasing the number of full-time interns With this solution, agencies can still utilize a team of enthusiastic and sharp young employees Besides, it will also help the company to reduce the shortage of human resources, as full-time employees will have a higher level of commitment and concentration while working Increasing the efficiency of job assignments: - Consider outsourcing or hiring freelancers for projects to reduce workload for the core team - Research and apply a more effective job assignment model such as RACI to improve work flow In case employees have to undertake many projects, they may feel tired and unmotivated A good job assignment system will ensure the productivity and enthusiasm of employees in their work Carrying out appropriate, competitive levels of salaries and benefits: - Establish a commission-based salary system for projects and work performance to increase competition among employees in the agency, and avoid situations where some employees are paid less than they deserve - Have a salary bonus policy for overtime hours worked that is clearly defined - Refer to the common salary range in the industry and the specific salary range at other agencies to develop the best salary and bonus policy - Flexible hiring of freelancers and outsourcing for projects to reduce workload/human resources or design an effective job assignment system to increase productivity and interest in work - Design a working environment/entertainment activities in the workplace to enhance the work-life balance of employees - Organize award ceremonies for individuals with high contributions to the company Provide clear career advancement opportunities: - For interns and freshers, a specific career advancement plan needs to be outlined for them from the beginning when they join the company, along with the necessary conditions for promotion to higher positions during their work period - Consider promoting hard-working employees to small team leaders during the company's project implementation With this solution, full-time employees will have a sense of responsibility and feel valued in their work, thereby having a higher level of loyalty to the company Increase opportunities for personal and professional development: - Breaking down the specialized department into smaller teams (for example: break down the Content Team into specific projects) and implementing personalized 1-1 orientation activities - Enhancing coaching through a format of higher-level personnel teaching lower-level employees - Organizing in-house training sessions and leveraging leadership connections to invite experienced speakers to share their expertise VI CONCLUSION - LESSONS FOR AGENCIES: Personnel fluctuations are a common issue in agencies, including the three agencies surveyed After evaluation and analysis, the team drew the following conclusions and lessons: In terms of conclusions, major personnel fluctuations in an agency are largely due to issues such as inadequate salary and benefits, limited opportunities for development and advancement, and overwhelming workloads These are unavoidable issues in the fragmented market of this industry However, agency managers can mitigate these issues through various means As for the lessons learned, agency managers must always be deeply involved in operational and managerial activities in order to quickly grasp the market situation, as well as that of their business and personnel From there, they can develop effective and timely solutions to reduce staff turnover in the company