Attractingand retaining the talents in Vietnam Bank for Agriculture and Rural Development – Soc Son branch

i TABLE OF CONTENT TABLE OF CONTENT i LIST OF TABLES AND FIGURES iv LIST OF ABBREVIATIONS v PREFACE CHAPTER 1: INTRODUCTION 1.1 Rationale of the research 1.2 Research scope 1.3 Research questions 1.4 Research objective 1.5 Research method 1.6 Structure of the research CHAPTER 2: LITERATURE REVIEW .7 2.1 General knowledge about human resource management 2.1.1 Definitions of human resource and human resource management 2.1.2 Core functions of human resource management 2.2 Attracting and retaining the talents 2.2.1 Attracting the talents 2.2.2 Retaining the talents 9 2.2.3 Important role of attracting and retaining the talents in a company 10 2.3 Factors affecting attraction and retention process 2.3.1 Recruitment and selection process 11 11 2.3.2 Compensation scheme 16 2.3.3 Leadership skills 25 2.3.4 Corporate culture 26 2.4 Link between talent management and business outcome 26 CHAPTER 3: RESEARCH METHODOLOGY 29 ii 3.1 Research philosophy 3.2 Case study 29 29 3.3 Data collection methods 30 3.3.1 Qualitative and quantitative methods 30 3.3.2 Sources of data 32 3.4 Data analysis 36 CHAPTER 4: EMPIRICAL FINDINGS ON ACTIVITIES OF ATTRACTING AND RETAINING THE TALENTS AT AGRIBANK SOC SON 38 4.1 Introduction to Agribank Vietnam and Agibank Soc Son 4.1.1 Agribank Vietnam 38 4.1.2 Agribank Soc Son 39 38 4.2 Characteristics of current workforce at Agribank Soc Son 41 4.2.1 Labor structure by gender 43 4.2.2 Labor structure by qualification 44 4.2.3 Labor structure by foreign language level 45 4.2.4 Labor structure by age 46 4.2.5 Change in labor force 46 4.3 Recruitment and selection at Agribank Soc Son 48 4.3.1 Job description 48 4.3.2 Recruitment policies 49 4.3.3 Recruitment process 51 4.3.4 Selection methods 52 4.3.5 Labor contract 53 4.4 Compensation scheme at Agribank Soc Son 53 4.5 Corporate culture 58 4.6 Result of survey 59 CHAPTER 5: DISCUSSION AND RECOMMENDATION FOR AGRIBANK SOC SON AND AGRIBANK VIETNAM 66 5.1 Evaluation on activities of attracting and retaining talents at Agribank Soc Son 66 5.1.1 Strengths and weaknesses 66 iii 5.1.2 Opportunities and challenges of Agribank Soc Son in attracting and retaining the talents 68 5.2 Development plan of Agribank Soc Son 69 5.2.1 Business plan 69 5.2.2 Human resource plan 71 5.3 Recommendation and suggested solutions to improve the effectiveness of attracting and retaining the talents at Agribank Soc Son 72 5.3.1 Improving employee satisfaction with Pay 5.3.2 Diversifying forms of compensation 72 73 5.3.3 Improving employee satisfaction with Opportunities for promotion and training 74 5.3.4 Completing job description 75 5.3.5 Diversifying recruitment sources 76 5.3.6 Innovating selection criteria 77 5.3.7 Improving selection methods 77 5.3.8 Evaluating recruitment results 79 CHAPTER 6: CONCLUSION 81 REFERENCES 84 APPENDIX .88 APPENDIX .90 APPENDIX .96 APPENDIX .97 APPENDIX .98 APPENDIX .99 APPENDIX 100 iv LIST OF TABLES AND FIGURES Figure 2.1 Human resource management practices Figure 2.2 Human resource planning .12 Figure 2.3 Selection process 16 Figure 2.4 Maslow’s hierarchy of needs 23 Figure 4.1 Organisation structure 41 Figure 4.2 Labor structure by gender 44 Figure 4.3 Labor structure by qualifications 44 Figure 4.4 Labor structure by foreign language level 45 Figure 4.5 Labor structure by age 46 Table 2.1 Financial and non-financial compensation .17 Table 3.1 Qualitative and Quantitative method .30 Table 4.1 Report in June, 2014 40 Table 4.2 Change in labor force .47 Table 4.3 Recruitment criteria .50 Table 4.4 Satisfaction level with “Pay” 60 Table 4.5 Satisfaction level with “Co-worker” 61 Table 4.6 Satisfaction level with “Training and Promotion” 61 Table 4.7 Satisfaction level with “Supervision” 62 Table 4.8 Satisfaction with “Work” .63 Table 4.9 Testing on Job satisfaction level 64 Table 4.10 Adjusted model 65 v LIST OF ABBREVIATIONS HRM HR Agribank Vietnam Agribank Soc Son Human resource management Human resource Vietnam Bank for Agriculture and rural development Vietnam Bank for Agriculture and rural development – JDI SPSS Soc Son branch Job descriptive index Statistical Package for the Social Sciences PREFACE One of the most important things which contribute to the success of an organisation is human resource An organisation cannot build a good team of working professionals without good human resources People always plays an important role in planning, operating and controlling almost all activities of a company It can only function effectively when its employees perform their job well, constantly develop their ability to work and try their best for overall development of the company To have a high quality workforce, the organization must ensure the implementation of good human resource management, organizatinal strategy from reasonable recruitment, work assignment, performance evaluation and remuneration policies The key functions of the Human Resources Management (HRM) department include recruiting people, training them, performance appraisals, motivating employees as well as workplace communication, workplace safety, etc In which, the very first step deciding who will be selected to fill in vacancies is recruitment How to attract excellent candidates, select the right people and retain them, this depends on the recruitment process, compensation policies and the way a company motivates its employees Hiring exceptional talent is critical to company’s business success Whether the position is the executive who offers visionary leadership, the manager who decides on business plans, or just the worker who operates the machines, a business needs great people to thrive Why attracting and retaining the talents in a company becomes more and more important? Today, the competitive advantage not only comes from cheap materials or labor but also the highly-skilled employees who create differentiated products with high quality, good design, whole-hearted service which leads to customer loyalty Moreover, the talents know how to take advantage of strengths and overcome obstacles of a company in right way, which is very critical for long-term development Seemingly, the excellent people hold the key to define success or failure of a company In fact, many enterprises, especially state-owned companies, have not been fully aware of the important role of human resource as well as recruitment and retention activities, which lead to lack of effectiveness and efficiency in human resource management and lost of talents They not go in the right direction or they are reluctant to change the policies which is no longer appropriate Normally this problem is ignored when the enterprise just focus some key areas such as accouting, credit or customer service The case I want to discuss here is about a state-owned bank called Vietnam Bank for Agriculture and Rural Development which think little of the role of human resource and have the imbalance of human resource among branches This issue inspires me to choose the topic: “Attracting and retaining the talents in Vietnam Bank for Agriculture and Rural Development – Soc Son branch” In this thesis, I want to tackle two main problems Firstly, I will review general knowledge about some basic definitions and theories of recruitment and retention process to provide an overview for readers Secondly, I will focus on the case of Agribank – Soc Son branch to describe and analyse the policies of attracting and retaining the talents in this branch After that, I hope to make a small contribution to find out some solutions for future development of Agribank in general and Soc Son branch in particular I am greatly indebted to Ms Tran Minh Thu, MA who has inspired me to choose this topic and encouraged me from the first step of this work Because of my limited knowledge and experience, the shortcoming is unavoidable Therefore, I sincerely appreciate all the comments and adjustment from teachers to help me fulfill this thesis CHAPTER 1: INTRODUCTION 1.1 Rationale of the research Human resource can be valued as one kind of capital which brings competitive advantage to a company’s bottom line Although information technology increasingly grows day by day and machines gradually replace postions of people in many aspects, we cannot deny the irreplaceable role of human resource in any organization due to the fact that a company can only start with at least one member or a group of members, more or less, it is inevitable There is nothing which can take on the role of people in managing all activities of a company and dealing with company’s problems which are unavoidable Human resources conducts needs assessments for the organization's current workforce to determine the type of skills training and employee development necessary for improving skills and qualifications An efficiently run human resources department can provide an organization with structure and the ability to meet business needs through managing the company's most valuable resources - its employees While human resource is known as essential capital of a company, the talents in that workforce can be seen as core value of this capital source Attracting and retaining the talent is becoming increasingly critical to an organization’s bottom line and future success The economic slowdown is one of main factors responsible for placing a new level of importance on talent management programs as they exist within an organization Globalization is another factor; with many organizations viewing the entire world (not just a single country or region) as the situation in which they conduct business, it requires them to learn how to optimally manage talent on a global level Today, a strong emphasis on effective talent management can produce the right supply of quality talent and future leadership It can also improve productivity, increase retention and link workforce plans to the organization’s strategic directions And research shows that organizations with leading talent management have significantly outperformed other organizations across four key financial metrics: return on assets; return on equity; net profit margin; and earnings before interest, taxes, depreciation and amortization The stories about failure in attracting and retaining the talents of Vietnam Airlines Corporation when talented pilots quit their job and move to other companies because of poor compensation scheme, or many talents not come back to contribute to Vietnamese enterprises after going abroad for further study tell us the fact that if we have poor talent management practises, we are losers in business world For many state-owned companies, especially state banks where human resource department is placed after other departments like credit and accounting, talent retention seems to be ignored because of stagnant policies and reliance on support from state Actually, I have just had a chance to research on a state bank named Vietnam Bank for Agriculture and Rural Development (Agribank Viet Nam) – Soc Son branch and I realized that this bank in general, and Soc Son branch in particular, not care about attracting and retaining the talents, which leads them to the lag behind other banks Some actions should be taken to improve effectiveness and efficiency of the bank and this branch And this problem inspired me a lot to a profound research on actual situation of attraction and retention process at Soc Son branch The analysis on recruitment process and motivation policies will be basis for this issue and further suggestions 1.2 Research scope In theory, the author has studied some textbooks and materials which directly relate to human resource management, recruitment and selection policies, compensation scheme, especially some theories about attracting and retaining talents or talent management of a company to build a basis for the whole research In reality, the author has focused on the history, the operation scope, the business results as well as characteristics of workforce of Agribank Soc Son in 2014 At the same time, the author has mentioned the business and human resource plan of this branch up to 2020 along with data from reports and internal materials which are collected by the author during the period of doing this research through survey and interview 1.3 Research questions The findings of this thesis aim at answering the main question: What should Agribank Soc Son to improve attracting and retaining the talents To find out a profound answer for this big question, the author intends to answer other questions:     What is talent management and its important role? What are factors that affect attraction and retention activities? What is the status of attraction and retention of talents in Agribank Soc Son? What are the most important factors that encourage employees to continue their jobs in Agribank Soc Son? 1.4 Research objective The main objective of this thesis is to find out the way suitable for Agribank Soc Son to improve its talent management However, this purpose is reached only when the case of this branch is analysed deeply Therefore, this work also aims at defining actual status of recruitment process, compensation scheme and forms of work motivation at Agribank Soc Son After that, the author hope to find some key factors which can attract and retain the talented staff so that the author can give some recommendations as a small contribution to future development of this bank This thesis is expected to be helpful not only for Agribank Soc Son but also Agribank Vietnam in general 1.5 Research method The study uses both qualitative and quantitative methods, as well as a theoretical study where empirical findings and theories has been compared The intention of investigating and using Vietnam Bank for Agriculture and Rural Development (Agribank Viet Nam) – Soc Son branch as a case company, is to make the information from the theories more detailed and valid, also the interest in how attraction and retention management works in practice An in-depth interview and online survey will be conducted to collect both quanlitative and quantitative data The detail of research methodology will be deeply mentioned in chapter 84 key-to-attracting-and-retaining-highly-skilled-people-in-your-industry/>, accessed on 26th March 2015 Jonah Levey, Attracting & Retaining Top Talent, , accessed on 17th March 2015 Smriti Chand, 2015, Sources of Recruitment of Employees: Internal and External Sources, < http://www.yourarticlelibrary.com/recruitment/sources-of-recruitmentof-employees-internal-and-external-sources-recruitment/25954/>, accessed on 23rd March 2015 Susan M Healthfield, Base pay: Understanding your job offer, < http://humanresources.about.com/od/glossaryb/g/base_salary.htm>, accessed on 26th March 2015 Tim Wright, 2014, Links Between Talent Management And Employee Engagement, < http://www.talentculture.com/talent-management/5-links-betweentalent-management-and-employee-engagement/>, accessed on 27th 2015 William M.K, 2006, Research methods: Sampling, , accessed on 1st April 2015 Cẩm nang Kinh doanh Harvard – Harvard Business Essentials, , accessed on 1st April 2015 85 APPENDIX QUESTIONNAIRE Dear Sir/ Madam, I am conducting a survey about employee’s job satisfaction in Vietnam Bank for Agriculture and Rural development, Soc Son branch to support for my graduation thesis at Foreign Trade University To complete this study I need your favor by answering the questions below I would like to say that your answers will be very useful for the research and be processed with synthetic statistics, so your personal information will not appear in the report Please read carefully and put a tick (✔) into the box corresponding to the points stated below (1 - Totally disagree, - Disagree, - Neutral, - Agree, - Strongly Agree) Content Pay Pay Base pay fits with characteristics of tasks required Pay Employees satisfy with current base Pay Salary is based on contribution Pay Reasonable allowance Pay Fair reward You are satisfied with your pay Work Work Job is interesting Work Job requires creativeness Work Job fits employee’s capacity and expertise Work Job improves personal skills and knowledge Work Employee can make use of personal capacity in job You are satisfied with your work Supervision Agree level 86 Sup Courteous style of work Sup Good leadership skills Sup Sup Superiors treat their staff fairly Superiors respect talents and contributions of staffs You are satisfied with your superiors Co-worker Co Co-workers are Co Co-workers support each Co Coworkers are trustworthy at work You are satisfied with your co-workers Training and Promotion Pr There are many opportunities for personal development Pr Pr The promotion policy is fair There are professional training programs to upgrade Pr expertise Employees are allowed to participate in the work evaluation and promotion You are satisfied with your opportunities for training and promation In general, you are satisfied with your job Sincerely thank you for your help! APPENDIX Results of survey 87 88 89 90 91 92 93 APPENDIX Report on quality of labor workforce at Agribank Soc Son 94 APPENDIX Recruitment scheme of Agribank Soc Son 95 APPENDIX Application form 96 APPENDIX Salary formula 97 APPENDIX 98