LV Thạc sỹ_Evaluation of the effectiveness of human resource training and development at Deloitte vietnam

NATIONAL ECONOMICS UNIVERSITY FACULTY OF FOREIGN LANGUAGES ENGLISH FOR BUSINESS DEPARTMENT EVALUATION OF THE EFFECTIVENESS OF HUMAN RESOURCE TRAINING AND DEVELOPMENT AT DELOITTE VIETNAM NATIONAL ECONOMICS UNIVERSITY FACULTY OF FOREIGN LANGUAGES ENGLISH FOR BUSINESS DEPARTMENT EVALUATION OF THE EFFECTIVENESS OF HUMAN RESOURCE TRAINING AND DEVELOPMENT AT DELOITTE VIETNAM Acknowledgement I have taken efforts in this research However, it would not have been possible without the kind support and help of many individuals and organizations I would like to extend my sincere thanks to all of them I am deeply grateful to my supervisor, Ms … for her continuous instructions and her useful advice on the report I could never have completed and improved my writing without her valuable comments and feedbacks I am also highly indebted to CMBD team and HR Department of Deloitte Vietnam Company Limited for spending time explaining and sharing with me realistic experience at work and precious opinions over my research topic Especially, I would like to express my special gratitude to Ms…, Ms … from HR Department for providing necessary information regarding the project Last but not least, an honorable mention goes to my family and friends for their understandings and supports during my internship Table of Contents Acknowledgement Abbreviation i List of Figures .ii Executive Summary iii INTRODUCTION .1 CHAPTER I : INTRODUCTION OF DELOITTE VIETNAM COMPANY LIMITED 1.1 Overview of the company 1.1.1 History of Deloitte Vietnam 1.1.2 Vision Statement and Values 1.1.3 Major services 1.1.4 Organization Chart 1.2 Key terms definition CHAPTER II: THEORETICAL BACKGROUND .8 2.1 Overview of Human Resource Management and Human Resource Training and Development 2.1.1 Definition of Human Resource Management 2.1.2 Human Resource Training and Development .10 2.2 Importance of Human Resource Training and Development in business 11 2.3 Methods of Human Resource Training and Development in business 12 2.4 Process of Human Resource Training and Development in business .13 2.4.1 Human Resource Training process model 13 2.4.2 Kirkpatrick’s four level evaluation model 14 CHAPTER : HUMAN RESOURCE TRAINING AND DEVELOPMENT AT DELOITTE VIETNAM 16 3.1 Current Human Resource Training and Development programs at Deloitte Vietnam 16 3.1.1 General Training and Development programs 16 3.1.2 Functional Training programs .17 3.1.3 Policy to support employees achieve professional certificates .17 3.2 Process of Training courses at Deloitte Vietnam 18 3.3 Evaluation of Human Resource Training and Development at Deloitte Vietnam 18 3.3.1 The effectiveness of Human Resource Training and Development on employees 19 3.3.2 The effectiveness of Human Resource Training and Development on the company 23 3.3.3 Some shortcomings of HR Training and Development at Deloitte Vietnam 26 CHAPTER IV: RECOMMENDATIONS .29 4.1 Planning and responsibilities of functions 29 4.2 Time and schedules 29 4.3 Training evaluation 31 CONCLUSION 32 APPENDIX REFERENCES Abbreviation HR Human Resources HRM Human Resource Management HR T&D Human Resource Training and Development CEO Chief Executive Officer CFO Chief Financial Officer CPA Certified Public Accountant ACCA Association of Chartered Certified Accountants MINTA Master of International Accounting i List of Figures Figure 1: Organization Chart Figure : Advantages and disadvantages of On-the-job Training and Off-the-job Training 12 Figure : Number of training courses employees have enrolled at Deloitte .19 Figure : Employees’ evaluation of their compatibility to the job’s requirements20 Figure : Data of professional certificates at Deloitte Vietnam 22 Figure : Employees’ evaluation of Deloitte HR Training and Development policy 23 Figure : Business results from 2009-2011 23 Figure : Deloitte Vietnam’s turnover rates 25 Figure : Factors of training courses that need improvement .27 Figure 10 : Diagram of responsibilities and authorities 29 ii Executive Summary Deloitte Vietnam is the first Vietnamese independent auditing company Together with its reputation and prestige in the financial service sector, the company has put great effort to improve the development policy for employees This research presents a brief introduction of Training and Development policy of Deloitte Vietnam, with the aim of evaluating the effectiveness of Training and Development activities of Deloitte By appropriate method of analyzing figures and information collected from questionnaires, interviews and company’s data, it can be concluded that the Human Resources Training and Development policy at Deloitte Vietnam is quite successful First, thanks to the development policy, employees are very confident in their profession, shown by their attitude toward the training courses and the superiors’ remarks over their working performance The second benefit that employees gain from Deloitte’s policy is the support in obtaining professional certificates which are very useful in their long-term career Regarding the company, Training and Development policy affects positively to the business results over years Because of the development prospect at Deloitte, employees are more loyal to the company resulting in reduced turnover rates Finally, the opportunity to attract talents is expanded when people know more about the Training and Development policy of Deloitte However, this research has found out some drawbacks of the training courses at Deloitte including the lack of evaluation steps, the illogical time setting for training courses and some shortcomings in the planning process On the basis of these findings, it is recommended that Deloitte Vietnam should focus more on the evaluation of training results The company needs to establish a more specific and appropriate schedule so that all employees can take full advantage of training courses that Deloitte offers them iii Turnover rate is computed as the sum of the number of people employed and resigned during the year divided by total employees at the beginning of the year One of the most significant challenges facing the auditing profession is the declining attractiveness of auditing career, as evidenced by firms' difficulty in retaining professional personnel The reasons for high turnover rate in Big companies (PwC, Deloitte, KPMG and E&Y) are the pressure of the job and the hard work load According to some statistics, turnover rates at the Big have historically been high— roughly 15-20% leave each year, compared with as few as 5% in some other industries Below is the situation of turnover rates at Deloitte Vietnam, for the year 2010 and 2011 Figure 8: Deloitte Vietnam’s turnover rates Year Junior Senior Manager Partner 2010 52.16% 34.49% 15.54% 5.14% 2011 46.22% 40.49% 13.4% 0% ( Source : HR Department, Deloitte Vietnam ) The table shows that turnover rates have experienced a decline over years In general, the lower levels of employees have the higher turnover rates In 2010, over 52% of the staffs and 34 % of the senior leaved their work, while the rates are only more than 15% and 5% for managers and partners respectively .However, in 2011, turnover rates at all levels decreased remarkably The staff’s turnover rates dropped to approximately 46%, managers’ turnover rates dropped to 13.4% and at partner’s level, no one leaved their positions 2011 was the year of financial difficulties after the global crisis in 2010, and Vietnam is not an exception Despite the labor market in Vietnam fluctuated seriously, the turnover rates at Deloitte showed a good signal for the company’s performance This indicates that Deloitte is a safe workplace for employees in bad situations, evidenced by higher revenue and a good Training and Development policy, so fewer people wanted to leave the company 25 Achievements and reputation The effectiveness of Training and Development policy results in many achievements of the company However, this research will only mention some of them Firstly, in 2011, Deloitte Vietnam is ranked in FAST500 (http://fast500.vn/) - the ranking of 500 fastest growing enterprises which officially launched in 2011, based on the research and independent evaluation in compliance with International criteria of Vietnam Report Company Secondly, on 5th March 2012, the Ministry of Finance (MOF) delegation led by Minister Vuong Dinh Hue had a working meeting with leaders of Deloitte Asia Pacific In this meeting, the Minister affirmed Deloitte as an MOF’s potential partner; therefore, MOF would facilitate Deloitte to take part in the restructuring of SOEs in Vietnam He suggested Deloitte cooperating with Vietnam MOF to host international conference on risk management and business administration in Vietnam in the soonest time Last but not least, the success of Training and d development policy of the company has a great impact in recruitment By observation and short interviews with Deloitte staff, as well as students in economic universities, it can be concluded that Training and Development policy is one of the most concern factors when a person chooses Deloitte for the start of their career Many students shared that they want to work for Deloitte because this company offers a good development policy, which encourages and supports employees to learn further and obtain many recognized certificates The more candidates want to be recruited means that the possibility to select employees is expanded, thus the quality of labor force is increased Therefore, it is clear that the HR Training and Development has brought a great efficiency in attracting talents to the company 3.3.3 Some shortcomings of HR Training and Development at Deloitte Vietnam Beside the contribution of HR Training and Development to the company, this research will deal with some shortcomings that were found out from interviews and observations The first shortcoming is resulted from the planning of training courses “Sometimes we are very confused when organizing training courses Many courses are compulsory in accordance with Deloitte Global ‘s policy and I personally think they are very useful, but some employees and even the Functional Leaders 26 claimed that they are irrelevant and very few people came to those courses.” said Mr Bui Ngoc Tuan, Learning Leader According to HR Training and Development policy, the responsibility of each management level is defined clearly However, in the real situation, there exist many problems in the process of setting up Training courses Sometimes, there is inconsistency between the Functional Leader and National Learning Leader in the number of courses, schedule or content, which leads to conflicts Furthermore, in some particular cases, Finance and Accounting Function did not support the Learning Department, due to disagreement in the budget and other controversial issues Secondly, a few employees chosen to enroll courses did not take full advantage of the Training and Development policy that Deloitte offers them In detail, some spend the time allowed to go to class on their personal businesses Besides, many missed the training courses because they were too busy with their jobs and with clients, considering the jobs and clients are more important than studying Sometimes the deadlines of Audit Reports are two close to training courses, which makes employees unable to complete both their training courses and their works Employee’s opinion when surveyed about different components of training courses is also very important to indicate that time and schedules of training courses need to be improved Figure 9: Factors of training courses that need improvement 27 (Source: Survey) As can be seen from the above chart, employees concern the most about the time of the courses 30% of the respondents claimed that there should be an adjustment in the time of the courses, since some courses are too long or too short, and the others were held in inappropriate period of time (e.g in busy season or at weekends) The matter of time affects largely to the personal schedule of each person and if the time of the courses is not carefully designed, it may bring about many other problems in employees’ life This problem requires more reasonable schedules from the managers The last problem involves Training and Development evaluation “At Deloitte Vietnam, the Training and Development policy is often set up in accordance with Deloitte Global and Deloitte SEA’s policy, while Evaluation of Training courses at Deloitte Vietnam is only for reference.”, said Mrs Tran Thuy Trang, HR Manager At the end of some courses, employees have to submit reports, reflections, or evaluation forms to their managers and HR Department However, Ms Trang shared that, this post- training works are scarce and often considered unimportant and be ignored The fulfillment depends on the seriousness of the learners, whether they evaluate the courses important or not From my observation, many employees copied the evaluation 28 forms of each other and sent them to the managers from time to time without any criticism Accordingly, this research recognizes that the Board of Management hasn’t paid much attention to the evaluations of training courses because of time constraints, limited budget or point of views Evaluations are mainly based on the results of tests for some courses, i.e the marks, which is only Level in Kirkpatrick’s Levels model while there are only a small number of courses having tests at the end of them Statistics pointed out that 85% of training courses only use Level in Kirkpatrick model Levels and are very difficult to implement, therefore those levels are included in only 10% of training courses This is a remarkable drawback in a Training and Development system, especially in an international environment like Deloitte CHAPTER IV: RECOMMENDATIONS 4.1 Planning and responsibilities of functions To avoid misunderstanding and disagreements between functions in establishing the Training plan, it is necessary to set up a clear diagram of responsibilities The following diagram is proposed for Deloitte Vietnam to improve the efficiency of its HR Training and Development Figure 10: Diagram of responsibilities and authorities FUNCTIONAL LEADERS 1.Set up the Training programs 2.Outline the proposal plan for training courses of each function ( technical or non-technical training courses) 3.Make the list/ Nominate employees for each technical course CEO 1.Approves of the Comprehensive plan of Training Budget Approves of courses over budget ( by official documents or by emails) 29 LEARNING LEADER 1.Generalizes and approves of non-technical courses based on the plan of functions and company’s plan 2.Generalizes the Training plan and Training Budget and submit to the CEO 3.Approves of the decisions to send employees to courses and informs Functional Leaders, Finance & Accountant, HR, Admin and individuals,… 4.Control the General Training programs 5.Approves of the courses exceed the budget, as authorized by the CEO ( courses worth under USD 1.000) CFO 1.Keeps track of the real cost of each training course 2.Makes report of the monthly and yearly real cost and inform Learning Leader and Functional Leaders In the proposed diagram, the role of Learning Leader is very important He will be responsible for all issues related to training activities, from planning training courses to setting up the budget However, the other leaders have to actively contribute to the planning process by giving comments and directly share their ideas with other functions/leaders For example, if the CFO disagrees with the budget for a training course that was approved by Learning Leader before, he/she can report to the CEO and a discussion will be held among CEO, CFO and Learning Leader to address the problem and find the best solution The key value of this diagram is to boost coordination among different functions in the company 4.2 Time and schedules Time management is of the utmost importance to business success, especially in modern society today If the Board of Management and functions not pay much attention in time and schedules of training courses so as to create the most favorable conditions for employees to participate, the courses may end with no result Therefore, this research proposes some options to increase the effectiveness of training courses at Deloitte Vietnam 30  Enhancing the training needs assessment Needs assessment should be carried out more frequently to find out the practical needs at all levels of employees After a careful analysis of needs, the establishment of appropriate courses for employees in different functions is no longer a difficult task Needs assessment will help to reduce irrelevant courses, which is time-consuming, but not cost-effective This research proposes to conduct training needs assessment twice a year: in March (after the Busy Season of auditors, so that people will be more available to participate) and in September (after the new graduate’s recruitment) The methods for training needs assessment ranges from observations, interviews, questionnaires, problem solving conferences to appraisal reviews  Setting up specific training time In an auditing company, there are particular months called “Busy Season” or “Audit Season”, i.e from January to March every year From October to December is also another busy period, though there is not as much pressure as in “Busy Season” At this period of time, auditors are extremely busy with financial reports and deadlines of Audit reports submission, so they can not concentrate on anything except their jobs Hence, for the convenience of the whole company, I suggest organizing training courses for employees in Audit Function and also for other non- client functions in the period from May to September 4.3 Training evaluation As training evaluation plays an important role in the process of training, it is highly recommended that training courses at Deloitte needs to be implemented in levels of Kirkpatrick’s evaluation model, especially Level 4: Work Results Additionally, Deloitte should consider using Level in the evaluation model (Jack Phillips, 2002) As an example, let’s assume that the benefits of a project management training program at Deloitte are $350,000 Let’s also assume that the total cost of the program is $125,000 The net program benefits are $350,000 – $125,000 = $225,000 Following the formula above: 31 ROI = $225,000/$125,000 x 100 ROI = 180%; thus for every $1.00 invested, $1.80 is returned after the costs of the project management training program are recovered This method enables Deloitte to take the effectiveness measurement of training program to a higher level – converting the benefits of the training to a monetary value, thereby demonstrating its value to the bottom line CONCLUSION In general, Deloitte Vietnam has achieved praiseworthy outcome in the field of auditing and consulting The combination of an international management system and professional expertise with thorough understanding about domestic market has led to the success of the company However, in the process of integration to the global economy, financial consulting companies are developing strongly in Vietnam market It creates both opportunities and challenges for Deloitte At the mission of bringing the best values to clients as well as contributing to the transparency of Vietnam’s financial sector, it is necessary for Deloitte Vietnam to ensure that its employees are performing to their maximum potential With a long term strategy, Deloitte Vietnam can retain and develop the potential ability of each employee Training and Development activities may increase 32 the cost of the company, but in return for this, the loyalty of employees will be strengthened It is expected that this study will help not only Deloitte Vietnam but also other companies in improving their Training and Development activities, thus enhancing the employee motivation Due to limited time and ability, this report is inevitable to be present of mistakes and inappropriate aspects As the report’s author, I am looking forward to all comments from readers to improve my writing and point of view 33 APPENDIX Appendix - Headcount of Deloitte Vietnam Partners Client service Audit 402 Non-client service 13 ERS 88 94 Financial Advisory 16 18 Tax 21 25 Other Total 18 527 47 67 51 612 Service Line Total 424 (Source: HR Department, Deloitte Vietnam) Appendix - Training process model Assessment Design/Implementation Evaluation Assess needs Prioritize d needs Define objectives Select Trainers Develop Lesson plan Select methods and techniques Develop/Acquire material Schedule the program/intervention programprogram/interventiongian biểu Implementation Select evaluation criteria criteriọn tiêu chuẩn đánh giá Determine evaluation design Conduct evaluation Interpret Results (Source : David M.Harris & Randy L.DeSimone 2002) Appendix – Questionnaires (conducted on 50 employees) Human Resource Training and Development Evaluation Form Full name : Function : Position : Years of experience: Years of experience at Deloitte : How many training courses of Deloitte ( both in Vietnam and overseas) have you enrolled ?  Less than  to  10 and above At the start of your career as an auditor/ tax consultant, how would you rate your compatibility to the job’s requirements?  Very good  Good  Normal  Poor At present, how would you rate your compatibility to the job’s requirements?  Very good  Good  Normal  Poor Please choose your reasons for attending Deloitte training courses      I find the courses useful and provide essential knowledge to my job I was required to attend I need additional points to be promoted I want to share and learn from my colleagues Other reasons (please clarify): ………………………… Regarding the people attended overseas training courses in your function, please evaluate their contribution :     They facilitate company’s training courses and help co-workers They achieve better work performance They contribute good ideas to the development of the company They don’t have any improvement after the courses  Others ( please clarify) :……………………………………… In your opinion, what aspects of training courses at Deloitte need improvement? ( you can choose more than one option)       Subjects of the courses Content of the courses Instructors / facilitators Location, equipments Time (courses are too long or too short) Others ( please clarify) :……………………………………… In your opinion, are the Training and Development programs suitable with Deloitte’s business strategy?  Suitable  Not suitable In the scale of to 5, please rate the effectiveness of Deloitte Training and Development programs? ( circle your answer) Very effective < | -| -| -| -| > Not effective at all Among the courses you have attended, please name the most effective one to you: ……………………………………………………………………………………… What is the key value/benefit that the course brings to you? ……………………………………………………………………………………… ……………………………………………………………………………………… Appendix – Interview questions ( for 10 managers, partners ) Full name: Function : Years of experience: Years of experience at Deloitte: How many subordinates you have in your function? How would you assess their ability and compatibility to the company’s requirements? Have you ever work as an instructor/facilitator in a training course of Deloitte? If yes, how you evaluate the attitude and the participation of the attendances? Are the working performances of employees improved after Training courses? Can you give some examples? What are some shortcomings of Training &Development policy of Deloitte? How you suggest improving them? REFERENCES Vietnamese Nguyễn Văn Điềm & Nguyễn Ngọc Quân (2007) Giáo trình quản trị nhân lực, NXB Đại học Kinh tế Quốc dân, Hà Nội Báo cáo tài hợp cho năm tài kết thúc ngày 30 tháng năm 2011 – Công ty TNHH Deloitte Việt Nam Báo cáo tài hợp kiểm tốn cho năm tài kết thúc ngày 30 tháng năm 2010 – Công ty TNHH Deloitte Việt Nam English Maslow,A (1970) Motivation and Personality, 2nd ed., Harper & Row, New York Harris, D.M & DeSimone, R.L.(2002) Human Resources Development & Training, Rhode Island College, Rhode Island KirkPatrick, D.L & KirkPatrick, J.D.(2006) Evaluating Training Programs: The Four Levels, 3rd ed., Berrett-Koehler Publishers, San Francisco K Aswathappa (2005) Human Resource And Personnel Management, Tata McGraw-Hill Education Mathis, R.L & Jackson, J.H (2011) Human Resource Management: Essential Perspectives, Cengage Learning Websites Priyadharshini.B, A study on effectiveness of Training and Development in Whirlpool company of India Ltd Pondicherry, Chennai, retrieved on 20th April, 2012 URL : http://www.slideshare.net/arunspeaker/human-resource-trainingdevelopment 10 www deloitte.com ... courses at Deloitte Vietnam 18 3.3 Evaluation of Human Resource Training and Development at Deloitte Vietnam 18 3.3.1 The effectiveness of Human Resource Training and Development. .. contribute to the development of a company? The research titled “Evaluation of the effectiveness of Human Resource Training and Development at Deloitte Vietnam? ?? with useful sources of information would... CHAPTER 3: HUMAN RESOURCE TRAINING AND DEVELOPMENT AT DELOITTE VIETNAM 3.1 Current Human Resource Training and Development programs at Deloitte Vietnam 3.1.1 General Training and Development