Job satisfaction in RSM vietnam

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Hoang Manh Quang JOB SATISFACTION IN RSM VIETNAM Master of Business Administration Ho Chi Minh City – Year 2016 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Hoang Manh Quang JOB SATISFACTION IN RSM VIETNAM ID: 22140071 Master of Business Administration SUPERVISOR: Dr Nguyen Phong Nguyen Ho Chi Minh City – Year 2016 TABLE OF CONTENTS CHAPTER PROBLEM IDENTIFICATION 1.1 Problem background CHAPTER BUSINESS PROBLEM JUSTIFICATION 2.1 Justify the existence of the problem 2.2 Justify the importance of the problem .7 CHAPTER 11 CAUSE VALIDATION .11 3.1 List the potential causes of the problem 11 3.2 Cause justification 20 CHAPTER 26 SOLUTION INDENTIFICATION 26 4.1 Potential solutions development .26 4.2 Potential solution evaluation 31 4.3 Change plan design 35 CONCLUSION 38 CHAPTER 39 SUPPORTING INFORMATION 39 5.1 List of potential clues affecting job dissatisfaction existence in the Company 39 5.2 Open-interview transcript to identify the existence of the problem 39 5.3 The list of question in mini focus group to justify the root causes 43 5.4 Interview transcript in mini-focus group session 45 REFERENCE .56 i JOB SATISFACTION IN RSM VIETNAM TABLE OF FIGURES Figure 1.1: The initial Cause and Effect map Figure 3.1: Potential cause and effect of low level of job satisfaction Figure 3.2: The final Causes and Effect map TABLE OF TABLES Table 1.1: Turnover rate from 2011-2015 Table 3.1: The description of nine facets of job satisfaction Table 3.2: The potential causes of Low level of job satisfaction Table 4.2: Potential solution evaluation Table 4.3: Detailed implementation plan Table 5.4: Interview transcript in mini focus group session ii JOB SATISFACTION IN RSM VIETNAM CHAPTER PROBLEM IDENTIFICATION 1.1 Problem background RSM Vietnam with over 140 employees is one of the leading mid-tier accounting and advisory firms in Vietnam Under its core purpose of being the firm of choice for growing businesses looking for high quality and personalized services, RSM Vietnam assists clients in achieving their goals through audit, tax, advisory and outsourcing services RSM Vietnam serves clients worldwide as an independent and highly integrated member of the RSM network, which is ranked among the top seven global accounting networks with more than 35,000 minds, 718 offices in over 110 countries around the world With the practical experience and knowledge built up over working years with largest international and local accounting firms, RSM Vietnam can provide high quality services to clients with competitive professional fees Although RSM Vietnam does not belong to top four biggest companies over the world, becoming one of the giant companies in Vietnam after Big (i.e KPMG, EY, PWC, Deloite) is the leading mission of the Company all the time Each year, the senior management board has a meeting with all the management team to review, assess what the Company has done in recent years and define the development plan for the next stage Within that meeting this year, all of them have agreed that although the Company has gained lots of achievement as well as certain position in the market, but the challenges has never been seriously like this time Firstly, there are over 200 companies in this industry and they are willing to provide services with low fees with the purpose of taking up the market JOB SATISFACTION IN RSM VIETNAM Secondly, everyone knows that retaining current clients is difficult and seeking new one even harder Especially, with the outsourcing company like ours, the work depends too much on clients’ business health Clients earn profit; the Company also gets profit too, and vice versa So far, the world economy has not recovered completely after the crisis, it has required all companies to consider carefully about cost saving and use all internal resources to gain the competitive advantage and differentiation from competitor To gain that entire mission, the prerequisite is high-quality resources or human resources in particular In the time being, the number of high quality Vietnamese employees cannot meet market demand; the competition to attract those resources has increased day by day In that context, the retention is recognized as the top action right now Based on the Human resource report, the turnover rate has been increased significantly and it also shows that the revenue per employees drop down from time to time [from around 300 million per staff to 200 million per staff] In the period of time form October 2014 to June 2015, the turnover rate of the Company has been on uptrend and reaches speak as 20% (in comparison with the general rate of industry as 12% - 15%) The most difficult thing is that the staffs who left job have from three to eight years of work experience Moreover, on the evidence of fierce competition in human resources market, receiving other offer has accounted for half of leaving reasons in both 2014 and 2015 Table 1.1: Turnover rate from 2011 - 2015 Turnover rate Turnover rate of (%) experienced employees (%) 2011 14.3 10.4 2012 18.6 10.9 31 2013 25.6 10.6 12.7 2014 28.3 12.5 49.4 Year Other offer (%) JOB SATISFACTION IN RSM VIETNAM 2015 22.3 27.8 55.7 Source: RSM Vietnam Human resource Report There are many reasons for this problem As the interview with Partner of the Company, Mr Le Khanh Lam, who is responsible for the quality of delivering perfect service to clients, there are some items as below Big client has ineffectively operated business, so they decided to narrow corporate scope Decrease revenue So many companies are willing to directly compete by reducing service fees Employees feel that it is hard to be promoted and recognized (performance appraisal) Employees not put many efforts in daily work and project (achievement) Increase cost Employees not agree with company policies (salary, benefits, …) Less competitive compare with rival companies Low level of job satisfaction Employees are easy to be approached by rival companies (Brand identity) Cannot attract high quality candidates Brain drain to rival companies High turnover rate Figure 1.1: The initial Cause and effect map Firstly, started from the middle of 2014, due to ineffective business operation, some biggest clients has implemented cost reduction plan This leads to decrease the business corporate scope with RSM Vietnam, and so one-third employee has been laid off Moreover, since revenue decrease, it is needed to figure out the way to keep the business continue running, the senior management board has decided to freeze some benefits for optimizing operation expenses, for instance: Quarterly Bonus, Year-end Bonus, decrease JOB SATISFACTION IN RSM VIETNAM salary rising rate, etc These things make the Company becomes less competitive compared with other rival companies, particularly Big and Vietnamese giants As the effect of that, a number of high-performance resources leaving continue rising month by month At their best, each department has concentrated on finding new clients, marketing brand of the Company as well as expand business to other potential markets (FDI, Foreign companies, bank, Insurance, Real estate, etc.) in order to offset the lost revenue, but this mission is not easy at all and takes time until the certain result is gained Secondly, performance appraisal of the Company is not clear and informative Employees not feel that their contribution is discovered and recognized at right time, therefore for them; promotion is too difficult to get This also partly leads to low achievement for any job or project They not put many efforts; just mainly work in the spirit of responsibility day by day Another related problem is about dissatisfaction of the Company’s polices, chiefly in salary and benefit policies An unattractive salary package is considered as one of the critical problems, especially during this year when the Company is struggling to overcome the influences of decreasing revenue Total average salary and benefit is not as high as other second-tier companies Last but not least, local brand identity plays an important role in affecting turnover rate in the Company RSM Vietnam does not attract giant clients as fierce competitors are doing and probably talents will be easily approached by other companies, not the Company Therefore, these evidences may show that there is a business problem related to human resource management in RSM Vietnam The necessary action at the present is to find exactly the important problem In line with the internal data from the Company and the interview, the poor of job satisfaction, the employee’s commitment to organization is the factors needed to be analyzed and improved JOB SATISFACTION IN RSM VIETNAM CHAPTER BUSINESS PROBLEM JUSTIFICATION 2.1 Justify the existence of the problem To justifying the existence of the job satisfaction, must understand sufficiently the meaning of “job satisfaction” and what are the scale items to measure its Hoppock (1935) defined job satisfaction as any combination of psychological, physiological and environmental circumstances that cause a person truthfully to say I am satisfied with my job According to this approach although job satisfaction is under the influence of many external factors, it remains something internal that has to with the way of how the employee feels That job satisfaction presents a set of factors that cause a feeling of satisfaction In order to initially investigate the level of job satisfaction in the Company, a group of 10 (ten) employees, who are being developed into senior position (experienced), were invited to answer a list of statements that represent possible feelings that they have about the Company The interview questions are partly based on the previous research named Vocational Psychology Research, Manual for the Minnesota satisfaction questionnaire by (Weiss, 1967), however those are opened-questions to collect as many necessary information possibly leading to the existence of job dissatisfaction These questions comprise some items describing various aspects of people’s jobs (e.g “The chance to different things from time to time”, “The way my job provides for steady employment”, “The workload each employee takes over”, etc) All the interviewees aware that their identities are kept JOB SATISFACTION IN RSM VIETNAM confidential, and there is not any judgment for their answers Therefore, the interview result is objective and not bias Most of the interviewees said that they usually miss the deadline and their current job busy all the time They not have time for relaxing, go out with friends or take gym because they must spend more 10 hours per working day to finish daily job but never received Overtime policy In addition, the Partner acknowledge the “taking a nap in lunchtime”, means that napping is not necessary at workplace; instead, workers can improve their knowledge by reading something useful or research new issued relating to their career For half interviewees, in negative side, they prefer to take a short rest for approximately 10 to 15 minutes in order not to doze off in the rest afternoon or stay tired In order side, employees feel that the Company not care about their contributions for the Company, i.e they rarely received the appropriate praise after they a good job, but easy to be blamed when has a mistake in work In addition, the behavior make they not satisfaction with the intrinsic motivation and their supervisors When being asked about the job characteristic, most of them think that the tax and consulting job is one of most challenging job and usually due to stress in work As a characteristic of this job was that the rules, the laws could change and supplement day by day and the professional staff must be improving the knowledge by themselves through reading the updated regulations, and maintain the habit to study the customers’ documents to broaden the experience on treating the real situations However, there are 04 interviewees confess that they like to reading news or chatting via Skype instead that with the reason is they have to use this way to get out of stress and feel better JOB SATISFACTION IN RSM VIETNAM though it is small If no recognition or praise, I will make much effort to create more value for the company, just for responsibility B: No praise or promotion is given to us when doing a good job But being easily blamed for mistakes in work is much worse than that For me, no recognition, no effort Question Are you allowed to get relaxed by surfing the internet whenever being stressed in work time? A: Under pressure in work, the only one thing we can is to listening music or go online in the internet Of course, the company policy don’t encourage staff extra things in working hours like suffering internet, chatting in Skype or Facebook, readings news…But we have to use this way to get out of stress and feel better Question It is difficult to jump higher position compared with your same-level coworkers, isn’t it? A: Yes Extremely difficult This is strict environment 5.3 The list of question in mini focus group to justify the root causes In your opinion, is “Recognition” one of key factors that affect your level of job satisfaction? How is it important? Do you think your income/pay is suitable for your work/position? And what you think about low income/pay resulting in low job satisfaction? Are there any promotion/reward policy for those with high performance in your working environment? How does it affect job satisfaction? Do you think that “Achievement” affects job satisfaction? At which level? In your organization, does “Organization culture” play a virtal role in employee’s job satisfaction? 43 JOB SATISFACTION IN RSM VIETNAM In your opinion, does “Employee benefit” affect job satisfaction? If yes, please give me more specific details Beside the above factors, you think there are any other factors affecting job satisfaction in other industries? Which factor does affect at highest level and lowest level? 44 JOB SATISFACTION IN RSM VIETNAM 5.4 Interview transcript in mini-focus group session Table 5.4: Interview transcript in mini focus group session Question Interviewee A Interviewee B Interviewee C Interviewee D Interviewee E In your Yes My company Yes Our leader often Of course I believe I totally agree with When I a good job, I opinion, is currently offer an recognizes that wherever you are that opinion make an impression for “Recognition” employee employees’ working, all of you Recognition is virtal leader and other one of key recognition program performance by consider in our environment, colleagues And I often factors that at the end of the year observing them as “Recognition” as an especially in this receive the recognition for affect your Those who had good well as evaluting important factor for auditing and it, I feel excited and feel level of job performance during through the quanlity your career In order consulting industry confident in satisfaction? the year will receive of accomplished to improve and This benefits for both accomplishing the coming How is it a Certificate of work For instance, develop the strong and weak tasks I will show them important? excellent performace she takes around organization’s employees For strong that their recognition is employee and a saying “Good job! efficiency, your talent employees, they know totally right I believe that 45 JOB SATISFACTION IN RSM VIETNAM jump-up in position, Keep going” This must be discovered exactly how excellent other employees also of course So recognizes what and recognized they are and will keep think like me as recognition is employees actually constantly Because moving forward In recognition is necessary important because it have done for the you’re deserved it and contrast, for weak recognizes organization and this will make you ones, they may admit employees’ therefore that is happier and more their fault and focus capacility as well as exactly what motives satisfied more on job and put their contribution, them more efforts as well this actually makes them feel more happier and satisfied Do you think In this industry, basic Frankly speaking, my Yes Low income will Of course Income has One of factors that affect your salary is low, just on salary is not as high leads to low job an important effect on employee performance is income/pay is average when as my friends, I mean satisfaction For your satisfaction As the amount of money you suitable for compared to other besides this auditing instance, my we know, income of receive every month If 46 JOB SATISFACTION IN RSM VIETNAM your industries The and consulting work/position? mount of money I And what receive monthly is income/pay monthly our company monthly your pay is low, you can industry I think every is not fair, not is low Our company not focus completely in industry has its own matched with what should raise salary your job, and sooner or you think about low Job satisfaction features, therefore contribution I have monthly, I mean, after, you will resign I am low is affected by low compared with what I made for this excluding bonus in the same situation, income/pay income/pay, of get, for example, company I always put quarterly/ yearly And maybe I will seek extra resulting in low course You can not knowledge, lots of effort in job, of course, I feel job on weekend, for job engage in an experience, , my not only in the disappointed very example, for extra money satisfaction? organization if what monthly salary is workplace, but also at much If it prolongs, I you receive does not acceptable I think the home Therefore, I will not engage in this match with what you level of income/pay usually fall in over Company anymore contribute depends on each workload situation If You may get employee (for this this amount will not disappointed or even person, it can be low be raised in the worse, resign but another it’s high), coming time, I intend 47 JOB SATISFACTION IN RSM VIETNAM so as long as you can to move to another accept it, excluding company for higher it’s too low to meet pay your basic living conditions Are there any Yes Our company The amount of It is just a small Although we work I think any employee in promotion/ has an promotion reward, so-called amount of reward If I hard and often get this company has the same reward ard policy It means at bonus, is not move to another stressed, the idea as mine Bonus for policy for those the end of the year, if significant, just a company, with current promotion or reward with high your performance is small amount knowledge as well as policy is very extreme low compared to other performance in recognized, you will Compared with the experience, I believe and difficult to peer companies in your working jump up level workload we incur that I can earn more achieve We create auditing and consulting environment? compared to your and what we money I am a little bit lots of value for my industry I not know How does it colleagues However, contribute, it is not disappointed and company but what we whether employers realize it is extremely bored receive is really small fair Little 48 our over-preformance is JOB SATISFACTION IN RSM VIETNAM affect job difficult to get that, promotion/reward, I think my company that or not, why they keep satisfaction? even though I still low satisfaction should re-consider us disappointed about that receive bonus this issue and change quarterly and yearly policy as soon as So if you work hard, possible but what you receive form company is not equivalent, I mean reward, you may get disappointed and not want to put efforts anymore Do you think Yes I agree with Yes May be Let’s In this company, the Yes, of course For I think achivement leads that you I am currently imagine this case spritit of achievement me, setting goal and to high job satisfaction There are lots of in job is not very high achieve it in career is and vice versa If you hold “Achievement” satisfied with my 49 JOB SATISFACTION IN RSM VIETNAM affects job overall performance complicated jobs that if compared with other really important for senior or high position in satisfaction? At I really enjoy work I you must accomplish Big4 companies like anyone Because once a company, if you always which level? always want to under short time and KPMG, PWC, they reach to that, reach goals you set up, challenge myself by pressure However, E&Y,… Employees they will be satisfied you will get excited with aksing to be assigned your leader is not here just their daily with themselves and job, with the company more difficult tasks I aware of that, she /he assigned tasks from And getting admiration think high often presses you to the leader, not actively and feel confident in from other colleagues achievement will accomplish soon I ask for other tasks to keeping things going And possibly you will lead to high job can not deny that all more, even though forward engage in this company satisfaction employees want to they have free time broaden knowledge Therefore, if all as well as get employees in a experience from those company just their jobs, however if they job passively, I can are in pressure like make sure that the 50 what they have done for longer JOB SATISFACTION IN RSM VIETNAM that, they may give up company can not one day develop and compete with other peer ones In your Yes I think every I think that In our organization, organization, organization culture organization culture teams/groups revise does has an important is the second their thinking as a “Organization effect on employees’ important factor result of group culture” play a spirit as well as followed by discussions or virtal role in employees’s income/pay Imagine information collected employee’s job performance If the that you spend in my organization satisfaction? working environment hours in an Besides, people give is so strict or organization, you’re open and onest uncomfortable, they alomost work with feedback to each will lose their colleagues They can other, spend time enthusiam and be considered as your building trust with 51 No comment Maybe but not very important for me JOB SATISFACTION IN RSM VIETNAM motivation in their second family each other, whenever wok It’s so terrible Therefore, you only people state their can develop yourself view, they also ask as long as that what others think and environment makes people always help you inspired and each other learn It is passes you inspiration well-organized and for work connects people together for working more effectively This makes employees feel more confident and satisfied In your Yes As income or Yes In my opinion, I can say that it does Yes, I would like add Yes, I always conside opinion, does reward, benefit is next to salary, It can boost other comments about this factor when 52 JOB SATISFACTION IN RSM VIETNAM “Employee really important for employee benefit is employees morale and Firstly, I would like to receive any offer beside benefit” affect all employees It is the most important increase their loyalty work in an safety the basic salary The job considered as an tool in attracting and and often to get their environment, clean Health insurance for me satisfaction? If extra amount in cash retaining key staff In best work in return and clear as well, one and my family, meal yes, please give or non cash For my addition, this also of the inconvenience alllowance, Aeon me more minimize your in my work place is insurance, financial turnover rate the poor facilities (e.g support for household is program, allowance, Because it is difficult cafeteria, refrigerator, considered as the good insurance,… By for a business to microwave for staff’s way to keep key person providing adequate make serious progress meal, the WC is so and attrac goood resources benefits, you can when employees are dirty…) Secondly, I also help keep your constantly coming also like to work in a employees happy and going high and modern company, annual specific details leave, training building (e.g Bitexco, Shinwa, Pear 53 JOB SATISFACTION IN RSM VIETNAM Plaza…), because I can to gym at California Fitness or go to CJV Cinema after work Beside the No comment No comment No comment above factors, you think there are any other factors affecting job satisfaction in other industries? 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