Chuyên đề thực tập: Some measures to improve the situation of personnel fluctuation in Truong Thanh VietNam group joint stock company

ly ch‘Se NGUYEN THANH HUYEN SOME MEASURES TO IMPROVE THE SITUATION OF PERSONNEL FLUCTUATION IN TRUONG THANH VIETNAM GROUP JOINT STOCK COMPANY Hanoi, May 2020... Nguyen Thanh Huyen — 1116

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ly ch

‘Se

NGUYEN THANH HUYEN

SOME MEASURES TO IMPROVE THE SITUATION

OF PERSONNEL FLUCTUATION IN TRUONG

THANH VIETNAM GROUP JOINT STOCK

COMPANY

Hanoi, May 2020

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NATIONAL ECONOMICS UNIVERSITYFACULTY OF FOREIGN LANGUAGESENGLISH FOR BUSINESS DEPARTMENT

NGUYEN THANH HUYEN

SOME MEASURES TO IMPROVE THE SITUATION

OF PERSONNEL FLUCTUATION IN TRUONG

Supervisor : Pham Thi Quynh Hoa, MA

Hanoi, May 2020

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Nguyen Thanh Huyen — 11162433 — Business English 58B

ACKNOWLEDGMENTS

First and foremost, I would like to express my sincere gratitude to my supervisor,Ms Pham Thi Quynh Hoa for the continuous support of my research, for her motivation,

enthusiasm and immense knowledge Based on her invaluable guidance, I can carry out

and present the research works as clearly as possible During the writing of the final report,I received much insightful comments and encouragement from her, thus continuously

improving my research

My thanks additionally go to my manager and employees of Truong Thanh Vietnam

Group Joint Stock Company, who give me the internship opportunities in their groups and

lead me to work on diverse exciting projects

I am extending my thanks to all lecturers of the Faculty of Foreign Language of

National Economics University who taught me many valuable lessons They have assisted

a lot throughout the learning process so that I have enough background in both professionalknowledge and practical skills to complete the graduation thesis

Finally, I am extremely grateful to my parents for their love, prayers, caring and

sacrifices for educating and preparing me for my future Besides, my thanks go to all thepeople who have supported me to complete the research work directly or indirectly

Author,

Nguyen Thanh Huyen

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LIST OF ABBREVIATIONS

HR Human Resource

HRM Human Resource Management

TTVN Truong Thanh VietNam

TEG Truong Thanh Real Estate And

Construction

TTG Truong Thanh Green Technology

TTP Truong Thanh Power and High

Technology

TTJ Truong Thanh Japan

TTI Truong Thanh Infrastructure

VND Vietnamese Dong

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LIST OF TABLES AND FIGURES

LIST OF TABLES

Table 1.1: Major revenue of TTVN Group for the period of 2018 - 2019 oo eee 4

Table 1.2: Number of employees at TTVN during the period of 2018 — 2019 5

Table 3.1: Personnel structure by #Ø€rIđeT - <5 11191191 k ng kg ket 16

Table 3.2: Personnel structure by educational ÏeVeÌS -ssss*++s*sveesseeeeeeres 17

Figure 2.1: Maslow's Hierarchy of neeS - - «c1 vn ng 10

Figure 3.1: Personnel structure by Øð€II€T - 1 S1 E911 nen kg 16

Figure 3.2: Personnel structure by job ÏŒV€Ì§ - S3 111 1 ng ng rrg 17

Figure 3.3: Personnel structure Dy aØ© - - cv ng ng He 18

Figure 3.4: Personnel structure by monthly income levels - «5< << << <2 19

Figure 3.5: Personnel structure by S€TOTIẨY - <1 1322111111131 11111 1 8111 ng về 20

Figure 3.6: Survey results of factors "Nature Of WOT” -c + xxx veeeseeeree 21

Figure 3.7: Survey results of factors "Salary, Bonus, BenefIt” +-<<<c<c+2 22

Figure 3.8: Survey results of factors "Working environment/condiflon”" 24

Figure 3.9: Survey results of factors "Training, coaching, assessment” - 25

Figure 3.10: Survey results of factors "Working relationship” c::ccccsesseeeeeeeneees 27

Figure 3.11: Survey results of factors "Brand and corporate cuÏture” «« 28

Figure 3.12: Survey results of factors "Labor retenIOI”” - «<< «scs++sersssees 29

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EXECUTIVE SUMMARY

This research provides an analysis and evaluation of the current situation of

personnel fluctuations in Truong Thanh Vietnam Group Joint Stock Company from findingfactors of work that affect employee's leaving decisions The idea for this topic comes from

the fact that the turnover rate of employees in the group has been alarmingly high in the

recent 2018 - 2019 period, raising many concerns for the management and HumanResources Department of the group Therefore, with the analysis and evaluation strategy

of the Human Resources Department, the author participated in the research to find out the

causes and solutions for this situation of personnel fluctuation

By researching from the online resources and previous studies about the reasons for

the employees' leave as well as applying it to the company, the author tends to approach

and research this topic The analysis method is a method of surveying and investigating

over 150 samples with job factors affecting the decision to leave the job of TTVN Group

employees Moreover, the author also takes advantage of the data collected from theHuman Resources Department of the company to synthesize and analyze more visually

The results of the initial data collection and analysis show that the existence of a group of

factors has a direct impact on employee satisfaction and their decision to quit

The results of the analysis indicate that some of the current factor groups are well

controlled and implemented by the company and have a positive impact on employees such

as "Nature of work; Working environment/condition; Brand and corporate culture"

Besides, other factor groups such as "Salary, bonus, and benefit; Training, coaching,assessment; Working relationships" are facing many problems in the working environment

of TTVN Group This group of factors has seriously affected employee dissatisfaction,

leading to an uncontrolled leaving from work at the company

In general, the analysis results only come from the author's perspective in the

process of recognizing and assessing the status of personnel fluctuations of the company

The need for further studies is underpinned by the fact that the results of this report are

limited by small survey sample sizes on the total number of employees of TTVN Group

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JOINT STOCK COMPAINNYY oGG Ọ ọ Ọ c H Họ 00 00000040000 1

1.1 Overview of Truong Thanh Vietnam Group Joint Stock Company 1

1.1.1 General information - - s11 SH nh ky 1

1.1.2 Visions & ITISSIOTNS 5G S0 và 1

1.1.3 Key development milestones - - - 5 2111133339101 11 18319 1111 1 81111 ng vớ 2

1.1.4 The organizational structure of the COMPANY - <5 s + S*sskessssses 2

2.1 The definition of Human Resource o5 5 55 <5 5< 9E 999900 1900 8850068856 7

2.2 Human Resource ManagØ€ITIIIÍ << G5 5 5 9 9994 004.00 8094096080880906 7

2.2.1 The definition of Human Resource Managemei( -« «sex 7

2.2.2 The importance of Human Resource Management « «55+ <+++ 7

2.2.3 The function of Human Resource ManagøemeI( - - - «+ +<<sssss+++ssxx 8

2.3 The satisfaction of employee With WOFFK o s9 0609896 9

2.3.1 The definition of satisfaction with WOTK chen vn 9

2.3.2 The relationship between employee satisfaction and their leaving decision 9

2.4 Personnel FIUCtUatiOn cscccsscsssssssssssssssesesssevsssssssscsessssssscesssssssssssesssseessesses 11

2.4.1 The definition of Personnel FÏucfuation - + c< << << <<sszs+cccs 11

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2.4.2 The effect of personnel flucfUatiOT - s11 kg vs ke 12

2.4.3 Factors influencing personnel fÏucfUat1OII - - - s55 +ssseeeereesss 13

CHAPTER 3: ANALYSIS AND FINDINGS: FACTORS THAT AFFECT THE

SITUATION OF PERSONNEL FLUCTUATION IN THE COMPANY 16

3.1 Personnel structure in TT VN GTOUDD o5 G5 SH HH n0 080 16

3.1.1 Personnel structure by Ø€TIC€T - - - - <5 1111133111111 39 11111 ve, 16

3.1.2 Personnel structure by education levels «<5 cSSS +ssseeeereesse 17

3.1.3 Personnel structure DY aØ© - ng ngư 18

3.1.4 Personnel structure by monthly income levels - «+ «+ + <£+sse+s 19

3.1.5 The seniority of eậDÏOY€€S 11111290111 vn ng key 20

3.2 Survey results about employee satisfaction with jobs at TTVN Group 21

3.2.2 Salary, Bonus, B€nefT( - - - - c1 1111 111 ng ng rưy 22

3.2.3 Working environmenft/COnđ1fIONI - c1 113332111111 3951111 net 24

3.2.4 Training, coaching, aSS€SSITIII 5G 1113199911111 9 vn key 25

PERSONNEL FLUCTUATION IN TRUONG THANH VIETNAM GROUP JOINT

4.1 For factors of salary, bonus, and benefit at WOrK co 5c <5 5555556555556 33

4.2 For leadership ÍACẨOIF o2 <5 5 G S9 9.9 0 0 000.0000004 00060000 35

4.3 For training, coaching, assessment factors 55 << s S9 9 930 6 5 09 37

4.4 Other reCcommenn(AfÏOIIS 5 5< s5 5 5 94.9 9904.20.9000 0004.0009 6040060996 38 CONCLUSIƠN G0 cọc c0 0 00000.000.000 04.10009000 0009 000408 40 REEERENCES Go cỌ Lọ cọ 0 c0 00 10 00.10001004 000.9.08.04.000.9 8019.080900 41APPENDIX G9 THỌ 1000000100010 0010001000009108080908600080986 42

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INTRODUCTION

1 Rationale

Since ancient times, people have been considered a decisive factor in all activities

For many countries nowadays, caring about people is not only socially important but also

affirmed as a solid and long-term investment strategy for the future That also happens to

businesses, focusing on human resources is one of the factors that help businesses grow

and compete in the market The Human Resources Department is established to take on the

role of recruiting, training, and maintaining the employees while building the corporate

culture with a unique identity to attract talents

However, how to build and maintain the company's staff so that they can stay in theorientation of the business, which is always the concern of the leadership and the Human

Resources Department Especially in the context of a competitive economy, there are more

and more good opportunities for workers, making them more likely to change jobs Truong

Thanh Vietnam Group Joint Stock Company was operating in this open-market situation

so that they realized the importance of taking care of their human resource as well as found

out continuous strategies to build their orientation of the business

To ensure the company's employees are satisfied with the working environment andready to contribute most effectively, the Human Resource Department needs to constantly

improve the quality of personnel stably as well as retain talent to stay at the company

Understanding the urgency of building and devising a strategy to retain quality personnel,

from which employees are satisfied with long-term to follow the company's business plan,

I chose the topic "Some measures to improve the situation of personnel fluctuation inTruong Thanh Vietnam Group Joint Stock Company" in the situation that the rate of

employees leaving the company is very high today.2 Research Objectives

The main objective of the report is to produce associate degree enhanced analysison an overall unit of time observers of TTVN This report can reveal the problem of whypersonnel fluctuation situations are happening with reality respondents from employees at

the company The research builds on the following specific objectives:

e Studying the current personnel situation in Truong Thanh Vietnam Group Joint

Stock Company

e Identifying and clarifying the causes as well as factors affecting the personnel

fluctuation of the company

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e Offering some suggestions to improve the rate of personnel fluctuation in the

The scope of this study issues on the current personnel fluctuation situation inTruong Thanh Vietnam Group Joint Stock Company This study is based on data andanalysis from the Human Resource Department, which is accompanied by personaljudgment and observation and assessments from the survey on employees here

5 Research Methodology5.1 Research process

Literature Review

Theory of Human Resource Management

The study will be mainly based on some data collected from both primary data andsecondary data

First of all, the primary data from the company’s annual personnel report will becollected from the Human Resources Administration Department Besides, othercompanies’ reports data in this field, as well as the research of personnel fluctuation, will

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be collected from the library together with the internet to provide more accurate analysisfor this situation

Secondary, formal employees of the company will participate in an online surveyassessing their satisfaction with the factors working at the company to get the main data.Based on this survey, participants can give their feedback, their wishes, and suggestions toimprove company policies, which helps them be willing to be engaged with work for thelong term

e Survey respondents: People who have worked at TTVN Group.

e Sample size: 150 users@ Questionnaire design: There are three main parts They are respondents'

information; the questionnaire assessing staff satisfaction with the factors workingat TTVN Group; some suggestions for improving the status of employees leaving.After collecting all the necessary data, both qualitative and quantitative methodswill be used to clarify the current problems Based on these discoveries, the author willdraw-up some recommendations helping the company reduce the rate of personnelfluctuation and improve the company's competitive advantages

5.3 Data analysis

The author collected data from the survey, and the data will be entered into the Excelsoftware to analyze

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CHAPTER 1

INTRODUCTION ABOUT TRUONG THANH VIETNAM

GROUP JOINT STOCK COMPANY

1.1 Overview of Truong Thanh Vietnam Group Joint Stock Company1.1.1 General information

e Name: Truong Thanh Vietnam Group Joint Stock Company (TTVN Group)

Representative office in Ho Chi Minh City: No 22, Street 63, Quarter 1, Thanh My

Loi Ward, District 2, Ho Chi Minh City

e Tax code: 0106064772 e Chairman: Mr Dang Trung Kien

e Founding: 2012-12-19

Truong Thanh Vietnam Group Joint Stock Company (TT VN Group) is a industry enterprise, which focuses on the main areas: Real estate, Renewable energy, Hightechnology, and Infrastructure development With the philosophy of "Gathering talents,connecting people's hearts, improving intelligence and sharing success", TTVN Groupgathered a team of highly qualified, experienced, creative, and spirited staff Responsibilityis an important premise for sustainable development and the breakthroughs in productionand business activities of the Group

multi-1.1.2 Visions & missions

e Vision

With the light of “Tri Hue”, TTVN Group has always been a pioneer in the new

field, breaking through in the traditional field with a strategy of fast and sustainable

development; strive to become one of the top 50 enterprises in Vietnam and gradually reach

out to the region

e Mission

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Truong Thanh Vietnam believes in the philosophy of "Gathering talents, connecting

people's hearts, improving intelligence and sharing success"

1.1.3 Key development milestones

e 2012

The company officially founded on December 19th, 2012, with the charter capital

of VND 30 billion, and operated in the field of manufacturing and developing real estateprojects

e 2017

In October 2017, the company changed from a one-member limited liabilitycompany to a joint-stock company with a new name: Truong Thanh Vietnam Joint StockCompany The company also increased its charter capital to VND 600 billion andrestructured the business vertically into corporations corresponding to the main areas ofoperation

e 2018

The company increased its charter capital to VND 800 billion and invested in 3 solar

power projects in Quang Ngai, Binh Dinh, and Phu Yen provinces

e 2019

The company continues to increase its charter capital to VND 1,000 billion, makingTTVN one of the top three enterprises in Vietnam, accounting for 80% of the country'srenewable electricity market share

1.1.4 The organizational structure of the company

The model of the organizational structure of the TTVN Group Joint Stock Company

is a functional style All those who relate to functional operations are classified as the samedepartment Each department undertakes its professional duties The organizationalstructure of TTVN includes the Management Board, Control Unit, Director Board,Departments of Head Office, subsidiary companies

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TTVN GROUP’S HIERARCHY

Board of Directors

Board of Managent

Division

xã Architect Truong Thanh |itecj Sytvicul

Truong Thanh viviculture | Project

Green Technology: 4 _ ¬ Develapment

Truong Thanh _ Truong Thanh Department Accounting

| Quy Nhon Dai Nam | | Departrnent

ad h P———_- „ ` = Ð Manager

KH ‘ee j TIP Truong Thanh | | Bamboo Broad

Figure 1.1: TTVN Group's Hierarchy

Source: Human Resources Department TTVN Group

Operation

Division

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1.1.5 Major revenue

Table 1.1: Major revenue of TTVN Group for the period of 2018 - 2019

Revenue Profit before

Source: Finance Department TTVN Group

In general, in 2019 both revenue and profit before tax of the Company increased

dramatically compared to 2018 In particular, the parent company and its subsidiaries TEG,

TTP, and TTI had a very high speed of development, contributing significantly to the

growth of the group However, in the period of 2018 - 2019, TTJ company, which was in

the initial stage of investment in two main products: Sen Point Sharepoint application and

Sencoinex cryptocurrency exchange platform, had not yet made a profit It is expected thatin 2019, once the company has created a particular position in the accumulation application

market, TTJ will take the charge to partner stores and generate revenue, contributing to the

overall growth of TTVN Group

1.2 Human Resource Department in Truong Thanh Vietnam Group Joint StockCompany

The Human Resources Department of the company includes Administrations and

Public Relations Department The whole department has 10 people, including the Human

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Resources Manager, 2 Recruiters, 2 Public Relations Officers and 5 Administration and

HR staff working in subsidiaries

1.2.1 Functions

This department is responsible for advising and assisting the Director in terms of

organization, personnel, administration, legislation, communication, and public relations

of the company, as well as all internal and external activities of the Company.1.2.2 Personnel structure

The labor situation at Truong Thanh Vietnam Group Joint Stock Company during

the period of 2018 - 2019 is demonstrated in Table 1.2

Table 1.2: Number of employees at TTVN during the period of 2018 — 2019

Unit: Number of employees

2018

Project Development E——S———

TE m.=.ua TT mu

rr 1mm đa

a

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Figure 1.2: The number of employees of TTVN Group from 2018 to 2019

Source: Human Resources Department TTVN Group

Overall, the total number of employees at TTVN Group in 2019 increased slightly

compared to 2018, in which, two member companies were Truong Thanh Urban

Infrastructure Joint Stock Company (TTI) and Truong Thanh Joint Stock Company (TTS).) has a three-fold increase in the number of employees in 2019 This data shows the trend

and growth rate to expand the size and market of the two companies, especially the event

of TTJ opening more branches in Ho Chi Minh City to deploy the application of Sen Point

and Sencoinex cryptocurrency exchange

The rest of the TTVN Group maintains slight personnel change Some departmentseven keep the number of employees and no department needs to reduce their staff

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2.1 The definition of Human Resource

Human resources are understood as all the physical and mental abilities of thehuman being shown in the production labor process It is also considered human labor - themost valuable resource in the production factors of businesses In the context that societyis developing towards the knowledge economy, the factor of human knowledge is

increasingly important Therefore, knowing how to exploit this resource properly will help

businesses develop sustainably; increasingly create more material wealth for society, andmeet the increasing needs of people (Source: Assoc.Prof Dr Tran Kim Dung, HumanResource Management, page 4, Statistical Publishing House, 2006)

2.2 Human Resource Management2.2.1 The definition of Human Resource Management

There are many ways to understand human resource management However, in anyaspect, human resources management is still an activity of an organization to attract, build,develop, use, evaluate and preserve a workforce following public requirements of the

organization both in terms of quality and quantity

The object of human resource management is employees as individuals, officials,and employees in the organization and issues related to them such as work, rights,obligations in the organization

2.2.2 The importance of Human Resource Management

Any business carrying out production and business activities must meet two factors,namely human and material resources In particular, human resources play an extremelyimportant and decisive role in the existence and development of enterprises Professor Dr

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C C Thow, Economist as well as Administrator of the MasSachusett Institute ofTechnology (MIT), said: “The key to the company's survival and development is its people.They are highly educated, well-trained, ethical, cultured, and knowledgeable people whoknow how to work effectively”.

Human resource management creates the adjustment and harmony of people in thecollective, thereby forming the cultural face of the company, which contributes todetermining the success of the company Human resource management research helpsmanagers learn how to deal with others, know how to ask questions, listen, find a commonlanguage with employees, and evaluate employees well Moreover, they also know how toentice staff to be passionate about their work, improve organizational efficiency

2.2.3 The function of Human Resource Management

For Vietnam, a country with a transforming economy with low technological levels,

an unstable situation, the State's policy is that "the development process must be done bypeople and for human resources" Therefore, human resource management is a system ofphilosophies, policies, functional activities about attracting, training - developing, andmaintaining people of an organization to achieve maximum results for both organizationsand employees

The functions of human resources management are divided as follows:

e Attracting human resources: is to ensure a sufficient number of employees with

appropriate qualifications for the work of the business

e Training and developing human resources: is improving the necessary capacity

or skills to complete the work of the employees and create conditions for theemployees to maximize their capacity Besides, HRM has to retrain activities foremployees when there is a change in production and business needs or technologicalprocesses and innovative technologies

e Maintaining human resources: is focusing on stimulating and motivating

employees to maintain and effectively use human resources in the organization,including activities: job performance evaluation, labor remuneration andmaintenance, development of good labor relations in the enterprise

e Stimulating, motivating, and expressing in activities: is building and managing

the system of wage scales and payrolls, Establishing and applying policies onsalaries, benefits, promotions, discipline These are effective measures to attract and

maintain a skilled workforce for businesses

e Building and strengthening labor relations: is related to activities to improve the

working environment and working relationships such as signing labor contracts,

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settling complaints or labor disputes, improving the workplace, health insurance,and labor safety

If the business can deal with the labor relations functions successfully, it will helpthem create a collective atmosphere and good traditional values, as well as make employeessatisfied with their jobs and businesses (Source: Tran Kim Dung (2006), Human ResourceManagement, Statistical Publishing House, Ho Chi Minh City)

2.3 The satisfaction of employee with work2.3.1 The definition of satisfaction with work

Employee satisfaction is "the extent to which employees have a positive sense of

direction in organizational employment" (Source: James L Price, 1997, p.470)

Staff satisfaction is one of the criteria for assessing the success of a business Onceemployees feel satisfied with the job, they will work more effectively and more closely

with the company On the other hand, improving employee satisfaction will maintain thestability of human resources, reduce operating costs, and increase business productivity

Employee satisfaction with work is defined as measuring in both aspects: generaljob satisfaction and satisfaction with component elements at work Improving employeesatisfaction is not just about raising wages Many simple, low-cost measures help managersimprove employee satisfaction and increase employee commitment

2.3.2 The relationship between employee satisfaction and their leaving decision

There are many theories about the satisfaction of employees with work and beapproached in many different forms However, the doctrines all have the same conclusion,that improving employee satisfaction will result in employee loyalty and the efficiency of

the organization's human resources maintenance

2.3.2.1, Abraham Maslow's Hierarchy of needs

Maslow's theory states that people have five desires that are satisfied and arrangedin a certain order The satisfaction of the needs for individuals will go in a hierarchy fromlow to high, and when each of these needs is met, the next needs become more important.Therefore, Maslow believes that managers need to understand which rank the employeerequires to improve their exact satisfaction

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morality,

creativity, spontaneity, problem solving, lack of prejudice,

2.3.2.2 The two-factor theory of Frederick Herzberg

Herzberg said that an individual's relationship to the job is a fundamental elementand a person's attitude toward work is most likely to determine the success or failure of anorganization Herzberg has scrutinized the question "What do people want from their job?"and through research, he divided the factors of job satisfaction and job dissatisfaction into

two groups:

e Group 1: includes the key elements to create job satisfaction such as success,

recognition of achievement, the inner nature of the job, labor responsibility,promotion Those are factors that belong to the job and the staff's personal needs.When these needs are satisfied, it will create job satisfaction

e Group 2: includes elements of the organizational environment such as policies and

management regimes of the company, job supervision, wages, human relations,working conditions If these factors are positive, they will help prevent jobdissatisfaction but not enough to create satisfaction

From the research and theories of the previous scientists, it can be seen that twotrends are formed from the satisfaction factor in the work of employees as follows:

e Trend 1: if employees are satisfied with the work as well as other elements of the

company, they will work effectively and have long-term attachment with the

company.

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e Trend 2: if employees lack satisfaction with factors at work and the company, they

will be discouraged and work ineffectively, leading to the decision to leave the

company.

2.4 Personnel Fluctuation2.4.1 The definition of Personnel Fluctuation

Personnel fluctuation is defined by the ability of the organization to attract newemployees, to maintain and retain members effectively

Personnel fluctuation numerically expresses a natural phenomenon of employee

dynamics within an organization by periodically calculating the number of staff departures(layoffs, resignations, transfers, promotions) relative to the number of necessary employees

for certain departments or the entire organization or jobs, within a certain timeframe(usually annually but also monthly or quarterly)

Severance is a decision to terminate the labor relationship between the employeeand the organization Severance decisions may have come from causes such as discipline,production economics of the enterprise, or personal reasons

There are three types of job severance: downsizing payroll, layoff, and voluntaryresignation

e Downsizing payroll: is the termination of labor relations between workers and

businesses due to the impact of business results such as reducing production scale,over-staffing, reorganizing the company, and so on

e Layoff: is the employee who is fired for a job discipline or does not meet the health

condition needed for the job requirement.e Voluntary resignation: is the form of severance due to the individual cause of the

employee Reasons for resignation often come from dissatisfaction with the factors

in the work and business environment

In the study of company personnel fluctuations, we focus on analyzing employeeswho voluntarily resign because of personal reasons This is the most fluctuating personnelforce based on the impact of many factors that will be analyzed in the following section

For any enterprise or organization, an overall staff turnover rate can be calculated.It is expressed by a so-called “fluctuation index” (Chraif, 2013):

1s the number of employees who left during the year x 100%

` the average number of employees during the year '

Conclusion by Dr John Sullivan said that the index of personnel fluctuations will

represent problems that businesses are facing, as follows:

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® Above 10%

Normally, if the obtained index is of high value, the fluctuation will have a negativemeaning of "lost" of human resources, which signally indicates an error in the managementof human resources

e About 10%

This index shows the level of stability in the personnel structure of the company.This shows that the company is well controlled in recruiting as well as maintaining afriendly working environment for its employees Besides, the rate of employee renewal isnot much and necessary to suit the development of the business

e Below 10%

A very low index is not favorable either, as turnover has some notable

disadvantages: offering the difficulties of replacing low-performing employees, makingdecrease innovation and diversification by attracting young or highly specialized

personnel, etc

2.4.2 The effect of personnel fluctuation

It can even be stated that a low level of personnel fluctuation is necessary withinany organization, as excessive stability of the workforce can lead to negative effects, suchas methodological immobility and resistance to modernization However, if the index istoo high, this is considered an undesirable impact that is causing useless losses to thebusiness :

e Human resources difficulties

The unexpected leave of employees will take the "gaps" in the business, especially

when the company is developing, which will put a lot of pressure on the business At the

same time, the business must quickly recruit new employees to continue the work Thisaction will make the company costly and they may have to pay higher salaries but notguarantee the quality of employees

e Brand influence

If personnel fluctuations occur frequently, it will cause many inadequacies instorage, updating, records management, etc At the same time, the company will take a lotof effort and time to rebuild welfare policies and salaries for the positions

Besides, it also causes negative effects, causing unpredictable consequences as wellas adversely affecting the production and business activities of the company Moredangerous is that the business can be losing customers, losing technology secrets tocompetitors, or creating bad images for businesses in the market

e Stagnant business activities

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Many businesses are afraid of personnel changes, most of them are manufacturingcompanies Because there will be times when you need to develop more chain stores, needa lot of employees but not have options, you have to accept the shortage of both quantityand quality This will reduce business efficiency, service quality, and customer satisfaction.Product quality declines while high prices affect the company's profits

2.4.3 Factors influencing personnel fluctuation

From the concept of employee satisfaction, the analysis of the relationship betweenemployee satisfaction and employee resignation decisions, it can be seen that the study offactors affecting personnel fluctuations of businesses means studying the factors that affecttheir satisfaction at work

According to Tran Kim Dung's study, on "Measuring job satisfaction in Vietnamese

conditions", job satisfaction depends on factors such as job nature, training opportunities,promotions, leadership, colleagues, salaries, benefits, and working conditions

According to research by Nguyen Ngoc Khanh on "Factors affecting the satisfactionof engineers’ decision to work at companies in high-tech parks" that the satisfaction of thedecision of the assistant engineer to work Factors include a job change, pay rates,allowances, benefits, work environment, workplace relationships, promotion/ training, anddevelopment opportunities, company branding

Therefore, based on the above arguments, combined with the actualacknowledgment of the personnel situation at Truong Thanh Vietnam Group Joint Stock

Company during the internship and the consult with the leaders and several employees of

the company; at the same time, with the consent of the instructor, Mrs Pham Thi QuynhHoa, the author has built and proposed some main factors affecting the satisfaction of

1 Nature of work

Factors affecting the 2 Salary, bonus, and benefit

satisfaction of employeesemployees as follows:

3 Working environment/condition

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® Nature of work

The nature of the job is usually perceived by five factors: the level of diversity of

skills, the degree of clarity and completeness of the tasks, the meaning level of the tasks,

the autonomy at work, and the feedback level at work

e Salary, bonus, and benefit

Direct financial amounts: including salaries received in the form of salaries, bonuses

and commissions that are paid periodically

Indirect financing: a part of a social contract between the employer and the employee

such as benefits, number of leave days, retirement plans, training and employee services

e Working environment/condition

The working environment is a broad concept covering everything relevant, directly

affecting operations and development, improving the work capacity of each employee A

qualified working environment is a place with adequate equipment to ensure safety and

health for workers both physiologically and physically Business policies also contribute

to building good working conditions for employees

e Training, coaching, assessment

Training, coaching, or assessment are necessary interactive activities for employees

Based on this, managers and supervisors will detect shortcomings, solve performance

issues, and develop the ability of employees, which is enabling employees to constantly

update suitable and specialized knowledge for their work This process is necessary to

enhance the capacity of employees to cope with the changing and developing economy

e Working relationships

The working relationships are expressed in relationships with two groups of

subjects: superiors (managers, supervisors, ) and colleagues (subordinates)

e Brand and corporate culture

Corporate culture is the values, beliefs, and forms that everyone in the enterprise

recognizes, thinks, and acts with, including vision, mission, and core values

The brand is the overall perception of the quality, environment, prestige, and core

values of a business It helps create emotions, associations in the eyes of consumers about

the business and the products/ services it provides

In terms of identification, a brand is a name or a mark (logo, trademark) that can be

identified visually

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The above analysis of factors affecting the employee's job satisfaction will be used

by the author to analyze in chapter 3 So at TTVN Group, which factors are the company

doing well? And which ones are needed to improve to meet the satisfaction and loyalty of

employees, making them a long-term attachment to the company? The results of the online

survey collected from the employees of the corporation will be clarified by the author in

the next chapter

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CHAPTER 3

ANALYSIS AND FINDINGS: FACTORS THAT AFFECT

THE SITUATION OF PERSONNEL FLUCTUATION IN

Table 3.1: Personnel structure by gender

Gender Number of respondents Percentage (%)

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Based on the statistics from the online survey, the number of male employees in the

company is 92, accounting for about 61% and female is 58, accounting for about 39% of

the total employees It can be seen that the number of male employees dominates in the

company's personnel structure According to the group's business activities, personnel areconcentrated in companies operating in the field of real estate, design, construction of

works or high-tech products Therefore, personnel must be required to have specific

expertise and health to go on local field visits These factors make male employees performbetter than female employees For female employees, they are mainly allocated in market

development, marketing or back-office, etc In summary, although the ratio of men to

women at the company is uneven, they are distributed reasonably following thecharacteristics and work requirements of the company

3.1.2 Personnel structure by education levels

Table 3.2: Personnel structure by educational levels

Educational levels Number Percentage (%)

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According to Table 3.2, the number of employees with university degrees accounts

for 72% (108 people), postgraduate degrees account for 22% (33 people), and other degrees

account for 6% (9 people) This allocation shows that the company has concentrated on the

quality of the employees with a high education level, especially for positions that requireexpertise Besides, other employees with undergraduate levels are designed in the customer

care, business development, and marketing department, which requires excellent

communication skills and the ability to negotiate with the partners

Moreover, Figure 1.3 also shows that in the TTVN Group, it is about one-third of

employees who work as managers It also means that the focus on building a senior

management team with the expertise to take on key positions is the top goal and along withthe company's mission

3.1.3 Personnel structure by age

Survey results show that employees over the age of 40 dominate the largest

proportion of personnel structure according to the company's age (59 people, account for

39.3%) Meanwhile, employees from 21 to 30 years old accounted for about 32% of the

personnel structure, about 3% more than employees between the ages of 31 and 40.Especially, there are no employees below 20 years old working at Truong Thanh Vietnam

The diversity of working age is also consistent with the business model of the company,

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allocating appropriate personnel in working experience (expressed by age) into important

professional departments such as Truong Thanh Infrastructure, Truong Thanh Power &

Hi-Technology, Truong Thanh Real Estate, or Investment Division

Besides Truong Thanh Japan, which accounts for the largest number of employeesamong the group's subsidiaries and focuses on project development, the employees here

are mostly young people from the age of 21 to 30 with the responsibilities of marketing,

customer care and developing the market

3.1.4 Personnel structure by monthly income levels

level of income comes from some positions such as the board of directors, managers, team

leaders, technology engineers, and so on Meanwhile, the group of employees with VND

4.000.000 - 10.000.000 also accounts for a significant percentage of 36 Besides the

positions which require management and specialized skills that are mentioned above, otherpositions such as office work, human resource, marketing, and sales are just received the

salary level of VND 4.000.000 - 10.000.000 Moreover, the rest participants belong to the

group with a monthly income of less than VND 4 million is 12 people, accounting for 8%

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of the total employees They are mostly junior and senior students at universities

participating as customer service collaborators of TTJ or interns at some positions

3.1.5 The seniority of employees

Survey results show that at TTVN Group, the majority of employees have short

working seniority from 1 to 3 years This proportion accounted for 46.7% of the total 150

attendees, mostly young people aged 21-30 years, evenly distributed in positions of new

companies Also, senior staff working from 3 to 5 years account for a relatively high

proportion of about 35.5% of the total They are the leaders, managers who have held an

important position and have been with the company since its establishment The group ofemployees less than 1-year working accounts for about 15% (23 people) mainly due to thefluctuation of employees in specific positions on Sale and IT

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3.2 Survey results about employee satisfaction with jobs at TTVN Group 3.2.1 Nature of work

@ Strongly disagree §§ Disagree |) Notsure {§§ Agree { Strongly agree

Your current job is

suitable for your

You are passionate

about your work Time and workload

is right for you The labor contract is

very clear

0% 25% 50% 75% 100%

Figure 3.6: Survey results of factors ''Nature of work"

Source: Appendix

According to the results from Chart 3.5, factors such as "the employee is working

in the right major"; "the job is suitable for the ability"; "the job is suitable for individual

target"; "the time and the workload are suitable" is highly appreciated by employees of

TTVN Group At some of Renewable Energy & High technology, InfrastructureDevelopment, and Real Estate subsidiaries, most employees will be carefully recruited

from the beginning by requiring a job-related diploma or certificate Moreover, job

requirements are also focused during the recruitment and interview process to identifysubjects that suit the needs of the position The Human Resources Department has built

and performed quite well in the process of developing standards on recruitment criteria,

thereby restricting the recruitment of people who are not suitable for important positions

that need professional skills

In the company, most employees only work according to the company's regular

working hours from 8:10 to 17:30 daily The employee is entitled to Saturday and

Sunday-off, and for those who need to work overtime, they will receive a corresponding allowance

Moreover, collaborators or salesmen are allowed to flexibly work outside hours under thecontrol of the head of the department

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Tiêu đề	Some Measures to Improve the Situation of Personnel Fluctuation in Truong Thanh Vietnam Group Joint Stock Company
Tác giả	Nguyen Thanh Huyen
Người hướng dẫn	Pham Thi Quynh Hoa, MA.
Trường học	National Economics University
Chuyên ngành	Business English
Thể loại	Graduation Thesis
Năm xuất bản	2020
Thành phố	Hanoi

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Số trang	65
Dung lượng	15,97 MB