High turnover rate in skilled and experienced sale staffs at PVIS Company

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business DANG NGO BAO YEN HIGH TURNOVER RATE IN SKILLED AND EXPERIENCED SALE STAFFS AT PVIS COMPANY MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City – Year 2017 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business DANG NGO BAO YEN HIGH TURNOVER RATE IN SKILLED AND EXPERIENCED SALE STAFFS AT PVIS COMPANY MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: Dr Phan Thi Minh Thu Ho Chi Minh City – Year 2017 TABLE OF CONTENTS I Company background…………………………………….2 General overview of PVI South Company…………… 2 Organizational structure………………………………… II Symptom……………………………………………………5 III The consequences of problem…………………………….11 IV Problem identification…………………………………… 12  Initial cause-effect map……………………………… 15 V Central problem identification……………………………16  Final cause-effect map………………………………….24 VI The importance of central problem……………………… 25 VII Solution………………………………………………… 27 VIII References……………………………………………… 36 IX Appendix…………………………………………………… 39 EXECUTIVE SUMMARY This thesis focuses on finding and identifying the problem that PVIS Company is facing and after that suggesting some adequate solutions in order to help company overcome that issue Through the methods of observation and data collection, researcher has a holistic and objective view in order to make a proper comment of the problem the company is facing in terms of human resources With four symptoms such as: significant fluctuation in human resource to sale staffs, high proportion of young sale staffs, increasing in qualification mismatch in insurance industry, and high working seniority from 1-5 years, the author pointed out a conclusion that the problem PVIS Company is truly facing now is high turnover rate in skilled and experienced sale staffs There are many causes explain the problem that company faces The first cause is the appearance of many insurance companies which lead to the situation of business dragging people of each other The second reason is poor management and then low compensation and low promotion opportunities are also the causes lead to high turnover rate in skilled and experienced sale staffs Moreover, besides some causes the author got from the interviews with sales staffs and managers at the company, there are other causes mentioned in the literature like poor working environment, and poor training and development However, after conducting in-depth interview as well as making the research and identifying carefully, the researcher realized that there are only one central problem lead to high turnover rate in skilled and experienced sales staffs at PVIS company, that is low compensation and benefit packages and any other cause be ignored From that, the researcher only concentrate to find out the solution related to compensation and benefit packages in order to help the company reduce the high turnover rate There are two solution suggested to solve this problem The first one is about direct compensation (or monetary solution), increase basic salary and build incentives and bonus scheme The second solution is about other supports and benefits include leaves, allowance, company trip, or birthday party organization However, through the interview and survey of researcher, nearly 100% of employees in the company have the desire of increasing salary and receiving an adequate commission or bonus Therefore, the solution related to build a base salary increase policy and performance bonus seems to be the best choice for PVIS in keeping the talents staying with company for a long time and reduce the high turnover rate situation I COMPANY BACKGROUND General overview of PVI South Company  The process of formation and development PVI South - formerly known as the Southern Insurance Sales Division and the Southern Representative Office of Petro Vietnam Insurance Joint Stock Corporation (now PVI Holdings), now a subsidiary of the PVI Insurance Corporation (100 % owned by PVI Holdings) PVI South was established on December 30, 2009, operates in non-life insurance sector, and with the purpose of developing major insurance services in the oil and gas sector, and expands insurance services to industrial customers in the large-wage market segment in the southern Less than a year since its inception, PVI South has earned VND 1.2 billion, accounting for 104 % of yearly plan, contributing significantly to PVI’s revenue November 2010, PVI South received ISO 9001:2008 certification PVI South has successfully arranged energy insurance programs with multi-billion dollar insurance coverage for Petro Vietnam Exploration production Corporation (PVEP), Vietsovpetro (VSP), joint-run oil companies JOC; operating insurance for GAS, Phu My Fertilizer, asset system of joint ventures such as Nam Con Son Pipelines Company; insurance for key projects like: Hai Su Trang, Te Giac Trang, Dragon-Turtle, Ca Mau Gas - Power Fertilizer, PVPower Nhon Trach and 2, marine insurance for fleet of VSP, PTSC, PV Trans… After nearly 08 years of establishment and operation, PVI South has achieved very encouraging results, contributing to the realization of the policy of the PVI Holdings and PVI Insurance to representative unit, a brand of PVI Insurance in the southern insurance market At present, PVI South is proud to be one of the biggest subsidiaries and bring the highest revenue for PVI Insurance Full name of company: PVI Insurance South Company Abbreviation: PVI South Address: Room No 8-9, 09th Floor, Vincom Center 47 Ly Tu Trong Street, Ben Nghe Ward, Dist.1, HCMC Tell: 84-8 39111666 Fax: 84-8 39107032 Website: www.pvi.cpm.vn Tax code: 0105402531-025 Business: Non-life insurance service At the current, there are 62 people working at PVIS Company Besides the Board of Directors, the structure of the company is divided into two individual components: Management department includes Human Resource Department, Claim Department, Finance & Account Department and Underwriting managing Department The other component is Sales Department, it is split off five small departments based on the nature of each type of insurance package and client portfolio Specifically, there are five sales departments such as: Exploration & Production, Energy & Oil Field Service, Engineering Property, Broker Business, and Planning Department Organizational structure Director Structure of PVI South Company: Vice Director Vice Director Vice Director Management Department HR Department Manager Finance & Account Department Manager Sales Department Claim Department Manager Underwriting managing Department Manager Exploration & Production Department Energy & Oil Field Service Department Engineering Property Department Broker Business Department Planning Department II SYMPTOM In order to assess the current status of human resources at the PVI South (PVIS) Company, the researcher uses a methods of observation and data collection to analyze the activities of the company’s human resources management, and at the same time discussed with human resources manager as well as interview some staffs who are currently working at the company and someone have quit their jobs Through that researcher has a holistic and objective view in order to make a proper comment of the problem the company is facing in terms of human resources At the present, there are 62 people working at PVIS Except Broad of Director, the company structure is split into two sectors: management department (include: HR department, Finance & Account department, Claim department and Underwriting managing department) and sales department (include: Exploration & Production Department, Energy & Oil Field Service Department, Engineering Property Department, Broker Business Department and Planning Department) The most occupied sector is sales department of 32 people (accounting for 51.6%) divided into main insurance business areas Due to the characteristic of the company is non-life insurance business unit, sales department plays an important role in the development of the company Therefore, the company is very attaches great importance to sales department as well as interested in sales staffs Table 1.Number and Structure staff in first haft of 2017 No Department Number Proportion (people) (%) Board of Director 6.4 Administration & HR Department 14.5 Finance & Account Department 9.7 Claim Department 9.7 8.1 Underwriting managing Department Sales Department 32 51.6 Total 62 100 Source: Administration & HR Department However, as observed by the researcher, it is realized that in recent years the number of sales staffs continuously heavy decrease from 2014 to the first six months of 2017 Not only that, the quality of human resources is also worse than before In order to clarify the human resources fluctuation in PVIS Company, the researcher discussed and obtained data from the Human Resource (HR) Department as follow: Table 2.Human Resources fluctuations Department 2014 2015 2016 2017 Board of Director 5 4 Human Resources Department 11 10 9 Department 8 Claim Department 10 Department 0 5 Sales Department 52 47 40 32 Total 86 78 72 62 Finance & Underwriting Accounting managing Source: Administration & HR Department Based on the table of changes in human resources, we can see that the labor situation in the company always fluctuates over years However, the number of staffs worked in management department like HR or Finance & Account Department are nearly stable and have less change while the high turnover rate is belongs to the staffs who work in Sales Department In detail, from 2014 until now the number of HR, Finance & Account or Claim staffs left the job is very small, only or people In the contrast, Sales Department have a significant fluctuation in human resource This department plays an important part of the company, but the employees continuously dropped from 52 to 32 people in 2014 and the first six months of 2017 Moreover, Mrs Hanh (HR manager) confirmed that most of staffs left the job are very expert and have much experience in insurance industry Based on the initial symptom of high turnover rate to sales staffs at PVIS, the researcher continuously conducted interview with HR manager with the purpose of understanding deeply about the human resource problem that company is facing Through short discussion with Ms Hanh (HR manager), it is know that the company has a young structure of workers, specially, the group of age from 22-30 significantly increased from 2014 to 2017 and accounted for 47% of the total workforce in Sales Department in the first six months of 2017, and this is the highest proportion of sales staffs With the characteristics of young labor structure is an advantage of the company because young labor is dynamic, creative and enthusiastic, and long-term contribution to the development of the company However, this is also a disadvantage for the company because workers under the age of 30 usually have less work experience Table 3.Age structure of PVIS sales staff from 2014 - 2017 Year Age 2014 Number 2015 Proportion Number (%) (People) 2016 Proportion Number (%) (People) months 2017 Proportion Number Proportion (%) (People) (%) (People) 22 - 30 14 27 17 36 18 45 15 47 31 - 45 29 56 22 47 16 40 12 38 46 - 65 17 17 15 16 APPENDIX WHICH BENEFITS DO YOU THINK COMPANY NEED TO IMPROVE? No Factors Score Proportion Annual leave 265 91.38 Sick leave 245 84.48 Stock bonus plan 60 20.69 Employee support programs (work management training course, skill training cource…) 120 41.38 Housing allowance 90 31.03 Program support development of employee education 162 55.86 Other allowance (petro gas, telephone…) 235 81.03 45 APPENDIX Insurance package products and key clients of PVIS Company Oil and Gas Insurance PVI Insurance is the only insurance company in Vietnam with experience and capacity to provide comprehensive Energy insurance services With extensive professional experience in oil and gas exploration and exploration insurance, PVI Insurance has become a reliable and trusted choice not only locally invested projects but also for foreign investors and contractors for all of their onshore and offshore oil - and gas related projects in Vietnam In addition, PVI Insurance has expanded the oil and gas insurance services to many foreign markets such as Russia, ASEAN region, North Africa, Central Asia, Cuba, Peru and Venezuela Product  Oils and Gas Well Control Insurance;  Offshore Contruction & Erection Insurance;  Mobile Barge and Drilling Rigs insurance;  Drilling Equipment and Rigs insurance ;  Energy Package Insurance Key clients  PetroVietnam, Vietsovpetro, PVEP, PV Drilling, Rusvietpetro, Vietgazprom;  Cuu Long JOC, Hoang Long Hoan Vu JOC, JVPC;  Petronas, Chevron, TNK, Exxon Mobil, KNOC, Talisman;  Seadrill, Diamond Offshore, Songa offshore, Transocean etc  Modec, Omni Offshore, Bumi Armada Berhad, Emas Offshore etc Hull and P&I Insurance As a leading marine insurer, PVI Insurance is a trusted partner of Vietnam’s largest marine fleets operating both on in-land waterways and international ocean shipping routes Furthermore, PVI Insurance has wide experience in providing insurance services 46 in the fields of shipbuilding, ship repair, operation of ocean vessels, mobile drilling units, floating storage units and floating production storage units Product:  Hull insurance;  P&I insurance;  Crew Personal Accident insurance;  Key clients:  Fleets of VSP, PTSC, PV Trans,  Ships repair and building projects of Dung Quat Ship Building Industry Company;  60 metre jack-up drilling rigs building projects;  Floating production storage and offloading (FPSO) building projects, Ruby II, ROV, FPSO Chim Sao etc Property - Engineering Insurance As the leading insurer in providing insurance service for construction, installation and operation of industrial projects in Vietnam, PVI Insurance has become a significant partner of investors and contractors to bring forth the most effective risk management solutions and insurance services for their projects and investments With its teams of dedicated professional experts and strong financial capability, PVI Insurance remains a trusted partner for key national projects Products:  Property insurance: Fire, explosion and special risks insurance; Property all risks insurance; Business Interruption insurance;  Engineering insurance: Construction and erection all risks insurance; Contractor's plan and Machinery insurance; Delay and start - up / Advanced Lost of Profit Key clients:  Ca Mau Gas-Power-Fertilizer Project; 47  Nhon Trach 1& Power Plant, Vung Ang thermal power plants, Thai Binh thermal power plants, Long Phu - Song Hau power plants, Phu My (BOT) power plant,  The largest alumin factory of the Southeast Asia in Lam Dong province; Cargo Insurance Worldwide connections and a comprehensive scope of insurance services capabilities have brought benefits to PVI Insurance’s clients with respect to providing cargo insurance both inside and outside of Vietnam Our clients whether small or large have expressed satisfaction with our technical assistance and claim settlement services for damaged and lost cargo for every type of conveyance Product:  Export-import cargo Insurance;  Inland transit cargo Insurance; Key clients:  PV Oil, PV Gas, PETEC;  Petrovietnam Fertilizer and Chemicals Corporation (Phu My Fertilizer),  Petrovietnam Ca Mau Fertilizer Company (Ca Mau Fertilizer); 48 Transcript Interviewer: Yen Dang Interviewee: Bui Van Hanh Day of Interview: August 15th, 2017 Time: 8:30 - 9:00 pm Location of Interview: PVIS Office (Start of Interview) Interviewer: Could you please introduce about yourself? Interviewee: My name is Hanh I’m 32 years old I am working as HR manager at PVIS Interviewer: How long have you been working here? Interviewee: I have been working here for years Interviewer: Oh, it seems that you also stick with the company for a long time Please tell me more details about your job? Interviewee: Yes My job is directly responsible for the overall administration, coordination and evaluation of the human resource function For example, conducting recruitment, works with supervisors to screen and interview candidates; conducts reference checking; extends job offers; conducts new-employee orientations; implementing and annually updates the compensation program; rewrites job descriptions as necessary; conducting annual salary surveys and develops merit pool (salary budget); analyzing compensation; monitoring the performance evaluation program and revises as necessary… and so on Interviewer: Ok, I see Have you got any comments on the your current company’s human resources situation? Interviewee: Uhm Let me see I think that the HR situation in recent years has been fluctuated The turnover rate is quite high 49 Interviewer: Why you said the high turnover rate? Can you give me some statistic to prove that? Interviewee: I can give you the specific data about the number of company’s staffs through each year in order to make the comparison later But I remember, there were 82 people working at PVIS in 2014, but in the first six months of 2017, that number has been decreased to 62 Interviewer: Sorry Can you tell me the structure of the company? Interviewee: Except Broad of Director, the company structure is split into sectors: management department (include: HR department, Finance & Account department, Claim Department and Underwriting managing department) and Sales department (include: Exploration & Production Department, Energy & Oil Field Service Department, Engineering Property Department, Broker Business Department and Planning Department) Interviewer: Which kind of staffs leave the job most? Interviewee: The number of staffs worked in management department like HR or Finance & Account department are nearly stable and have less change while the high turnover rate is belongs to the staffs who work in Sales department Interviewer: So you mean that the high turnover rate in sales staffs Do you think that is problem your company has to face now? Interviewee: Yes, I think so You know, the characteristic of the company is non-life insurance business unit, sale department plays an important role in the development of the company Therefore, the company is very attaches great importance to sales department as well as interested in sales staffs The high turnover rate in sales staffs really affect much to the company operation Interviewer: Can you tell me why it affects to the company operation? Interviewee: Most of sales staffs who left the job are very professional and experienced in the insurance market They used to worked in different insurance companies before, even some of them have over ten years experienced in insurance industry Some others has foundation knowledge in insurance and graduated in course related to insurance industry While the new recruitment sales staffs are quite young, graduated in majors not related to insurance industry or have no experience and have not worked in any insurance companies before Therefore, they can not handle the work quickly, professionally as well as creativity in the work Interviewer: Do you know the reason why most of skilled and experienced sales staffs leave the job? Interviewee: There are many different reasons leads to the high turnover rate in skilled and experienced sales staffs I think one of reason is external issue, that is 50 the appearance of many insurance companies You know now many insurances companies both local and international emerged While the number of people who are well trained and experienced in the field of insurance account for a very small proportion It can be said that the human resource is in the situation of supply lower than demand This leads to the fact that companies compete together for human resource, the situation of business dragging people of each other is quite common Interviewer: As your share, skilled and experienced sales staffs were attracted by new established companies? Right? Interviewee: Yes, I think so Newly established (especial international company) are willing to pay high salaries, good treatment condition to attract the talents And skilled and experienced staff tent to jump the job to look for a new change or new promotion opportunities Interviewer: Would you mind to give me a specific example? Have this situation ever been happened in your company? Interviewee: Yes, it happened Two month ago, a sales staff worked in Engineering Property department applied for the leave the job He had worked here for years, professional expertise and experience After his leaving, I know he started to work in Tokio Marine,a leading giant insurance group in Japan Interviewer: Do you think that is the main cause leads to high turnover rate in your company? Interviewee: At this point, I don’t think so The lack of skilled and experienced sale staffs in Vietnamese insurance industry is an evident truth The situation of lower supply than demand to human resource or the competition between insurers to entice qualified and experienced employees are general situation for insurance companies in Vietnam Therefore, PVIS must accept to confront, and cannot control as well as take measures to solve and improve This is a macro cause and beyond the solvency of the company Interviewer: Have you got any solution for the high turnover rate? Interviewee: Yes I really have headache about this issue I know it is important to develop a specific strategy to retain the employees, especially the qualitative and experienced staffs According to my observation and collecting some ideas from staffs, I think the company should have some adjustments about the basic salary for the staffs Maybe increasing the basic salary Or having rewards based on their performance Of course, HR department will have obligation to build a KPI to evaluate the staff’s ability and the rewards will be followed on that KPI Interviewer: Oh, that’s sound great Have you got any ideas? 51 Interviewee: Moreover, company also offer some benefits in order to motivate the work spirit of the staff like support the petro gas and telephone fee, held birthday party or company trip Something like that Interviewer: I see Thank you for kindly answering all my questions Transcript Interviewer: Yen Dang Interviewee: Tran Tuan Anh Day of Interview: August 17th 2017 Time: 10:30 - 11:00 am Location of Interview: PVIS Office (Start of Interview) Interviewer: Hello Could you please introduce about you? Interviewee: I’m Anh I’m 24 years old I am working as sale staff in Energy & Oil Field Service department Interviewer: How long have you been PVIS Company, Anh? Interviewee: I have worked here for over year Interviewer: Before working here, have you worked anywhere else? Interviewee: Ah, yes After graduating, I had worked in a bank for years Interviewer: Work in a bank? Which major did you graduate? Does it related to insurance industry? Interviewee: My graduated major is banking finance I have never had experience as well as working in an insurance company before Interviewer: So have you got any trouble in your work? 52 Interviewee: Because I not have a basic knowledge about insurance, so I have to start at the beginning I have to both learning and practicing I was trained by other sales staffs who are expertise and experienced in insurance area Interviewer: What you think about human resource situation at current in the company? Interviewee: I see that there are many skilled and experienced staffs quit the job and move to work in another company For example, in my department, last month, a skilled sale staff quit the job He trained me before, but from his leaving, nobody train me as well as teach me I have to learn myself, so trouble Interviewer: Do you know the reason that staff leave the company? Interviewee: In my opinion, that staff left the job is due to poor management The immediate supervisor, manager or executive lacks the people skill or empathy to keep people engaged in their current positions Interviewer: What you think about work environment? Is it good? Interviewee: I think the working environment here is generally good, friendly and professional Company always create good physical conditions for employees to work effectively Interviewer: You said that you not have basic knowledge and experience in insurance field So does the company held some short training course for new employees? Interviewee: Yes, PVIS regularly organizes short course or training classes on skills and insurance major so that new sale staff deeply understand knowledge and improve professional skills Interviewer: Have you got anything dissatisfied with company? Interviewee: I think the company has inadequate salary policy and sale commission PVIS has a fixed salary policy which means that employees salary not depend on the target sales they achieved Sales staffs not receipt any bonus when they get the target sales Interviewer: So you have any idea about this issue? Interviewee: In other insurance companies, if a staff can sign a new contract and bring the revenue to the company, they will receive an amount of sales commission except the basic salary every month It encourages employees to work and dedicates their energies to the company I think PVIS should learn from this point Interviewer: Is it easy to get promotion here? 53 Interviewee: No, I don’t think so I am too new in order to think about getting higher promotion But I see many skilled and experienced staffs who have been working here for long time, but they still have not been promoted I think it is so hard to reach a higher position here Interviewer: Can you tell me which factors influence to your leaving decision (if have) the most? Interviewee: I think the compensation includes benefits, bonus and the management style will be things I consider the most to decide whether I leave the job or not Interviewer: Do you intend to work here for long? Interviewee: I don’t know But I am not interested in this work too much If I have a other changes, I am willing to leave this job Interviewer: Ok, I see Thank you for spending time on my interview Transcript Interviewer: Yen Dang Interviewee: Tran Huu Anh Day of Interview: September 3rd 2017 Time: 2:30 - 3:00 pm Location of Interview: PVIS Office (Start of Interview) Interviewer: Could you please tell me about your name? Your age? And your job? Interviewee: Hi My name is Anh I am 34 years old I am working in Broker Business department Interviewer: How long have you been working in PVIS? Interviewee: I have been working here for over years Interviewer: Before working at PVIS, which companies did you work? Interviewee: Ah, I’d worked at a brokerage insurance company Marsh for years Interviewer: So it means that you graduated the major related to insurance, right? 54 Interviewee: Yes, I graduated in insurance major from Hanoi National Economics University Interviewer: Wow, so great Please tell me more about your job? Interviewee: My job is to work with insurances brokers, through these brokerage company, we will trade our insurance service to customers like: property all risk insurance, Business interruption insurance, export-import cargo insurance or inland transit cargo insurance… Not at all, we also have to approach clients, take care for them and advise them on the appropriate packages insurance as well as deal with customer claims Interviewer: Oh What you think about the job? Interviewee: It is very interesting because I was right worked with my expertise Interviewer: Do you think PVIS is a good environment to work? Interviewee: Uhm I think the working environment at PVIS is quite good, friendly Company also provides equipment or physical facilities so that employees have good condition to work well Besides that, company also concern about life and health of employees Interviewer: As you said, I think that you are totally satisfied with your company, right? Interviewee: No, not completely right I see there are some problems which made me disappointed and dissatisfied Interviewer: Really? Can you tell me more? Which one make you not satisfied? Interviewee: Well, the sales commission and salary policy At PVIS, we have fix salary policy and no sales commission I think it is not reasonable For example, in a month, I had to work hard to find new customer and sign an insurance policy, and brought revenue to the company However, at the end of that month, the salary I received was the same as the salary of another staff who cannot sign any contracts and achieve the target sales It is really unfair And that make me disappointed and did not want to contribute to the company Interviewer: Oh, I see Do you know why the company has the policy like that? Interviewee: I don’t know Just know that policy has existed from I started to work here and everybody have to follow it Interviewer: Do you think that the reason about sales commission is cause leads to high turnover rate in skilled and experienced sale staffs in your company? Interviewee: Yes, I think so Not receiving sale commission or bonus make the staffs unhappy, it does not encourage employee to work and dedicate their energies to the company While in other insurance company, a staff can receive 55 amount of money except salary if they can sign a new contract or achieve sale target So many skilled and experienced sale staffs want to quit job here and move to work in another companies Interviewer: How about another reasons? Is poor management is cause make staffs leave the company? Interviewee: Yes, I think a little bit Some direct supervisors are conservative, always put pressure on employees, frequently create an uncomfortable work environment and sometimes conflict with staffs This makes employees (especial skilled and experience staffs) feel depressed and want to quit Interviewer: So is poor management central problem for high turnover rate? Interviewee: No, I did not say that I admit that poor management affect to the attachment of employees to company, but not too much Sales managers are responsible for both managing and guiding his staff members to work effectively and achieved the target sales the upper level assigned to him Indeed, direct sale managers are also under great pressure of sales and will be severely reprimanded if they not fulfill their assigned quotas Therefore, sometimes they not control their attitude and actions This can be understand and empathize for them Interviewer: Do you frequently conflict with your managers? Interviewee: Yes, sometimes But I think it is normal because contradiction in work is inevitable Interviewer: Do you think conflicting with manager is one of reason make you dissatisfied with your company? Interviewer: Oh, no I don’t think so Although sometimes there were some conflicts between direct manager and me, but it only happened in work, and it is also resolved thereafter After working hours, we are still friends, hanging out and drinking together Interviewer: Have you got any other reasons make sales staffs want to leave the job? Interviewee: Let me see May be the promotion opportunities I think the promotion does not follow a clear scale and are largely based on feelings Interviewer: Which one you want the company change so that it can keep you stay for long time? Interviewee: The first one is sale commission (bonus) and salary policy In my opinion, except the basic salary, the company should build a sales commission rule Through that, based on the target sales staffs achieved, they receive a worthy bonus Secondly, an unreasonable leave of absence of the company also need to change The company stipulates that employees are not allowed consecutive days off in a month If the employees off more than days in spite of still having 56 their day’s leave, they will be rated in B in that month and deducted 10% of salary Moreover, company should held twice company trips a year, or party so that people can connect together Interviewer: How about promotion? Do you want company change any promotion condition? Interviewee: To me, it is not necessary I think each company has promotion policy and the promotion is also depended on each person ability I have no desire to be promoted Just providing good compensation package, sufficient benefits, that’s enough for me Interviewer: Have you got any ideas? Interviewee: No, that’s all Interviewer: Do you indent to work at PVIS for long time? Interviewee: I think I will if the company change somethings I have mentioned above If the compensation and remuneration package are not be improved, I will leave the company for another one Interviewer: Ok Thank you for spending time on my interview See you later Transcript Interviewer: Yen Dang Interviewee: Bui Doan Quan Day of Interview: September 5th 2017 Time: 2:30 - 3:00 pm Location of Interview: Coffee shop (Start of Interview) Interviewer: Hello Could you please introduce about yourself? Interviewee: I’m Quan I’m 40 years old I am working in Petrovietnam Transportation corporation (PVTrans) Interviewer: Which department are you working in? Interviewee: I’m working in Safety and Law department Interviewer: How long have you been working there? 57 Interviewee: I have just worked at PVTrans for moth Interviewer: Oh I know before working at current company, you worked at PVIS, right? Interviewee: Yes I had worked at PVIS for years But I quit the job there month ago Interviewer: Which department did you work at PVIS? Interviewee: I worked as sale staffs in Exploration & Production department Interviewer: Would you mind if I ask you the reason make you leave the job at PVIS? Interviewee: Ah, no problem I decided to quit job because I see that I had no change to promote to higher level at PVIS although I am expert and experienced in work Interviewer: Ok Can you tell me more details? Interviewee: I started to work at PVIS in the early years of its founding and has been with the company for years With the ability and effort in work, I has repeatedly proposed myself to the higher position The Board of Director also promised to review and approve my offer; however for many years I was still a sales staffs, no promotion or no salary increase This made me feel disappointed and frustrated Interviewer: So that is the main reason make you leaving the job? Interviewee: Yes Because I see that my effort was not appreciated At that time, my current company (PVTrans) is potential customer of PVIS and I had a duty to work with them Through the process of communicating and working, the company see my ability and invited me to work for them PVTrans offered me a higher salary and they promised to promote me to higher position So I decided to leave PVIS and accepted the offer for new job Interviewer: How about another reason? Do you have any comment about management style? Interviewee: Uhm I think management is also one of reason leads to high turnover rate in sales staffs A lack of fairness on the part of managers with their staffs is the reason people leave a company Managers put pressure on employees, that will make them feel uncomfortable and depressed working However, I think putting pressure on staffs is not totally bad because it is also a way to help staffs work harder and achieve goals Besides that, being consistent with management style depends on the way employees work and adapt So it is not main reason for leaving job 58 Interviewer: Do you satisfied with salary or any compensation and remuneration package at PVIS? Interviewee: Not much…I had worked there for years but the salary did not increase much Besides that, company did not apply sale commission It means that you not receive any bonus based on the target you achieved It is a little bit unfair and unreasonable Interviewer: How about another reason like working environment? Interviewee: I think working environment is not a problem The work environment at PVIS is quite good, friendly and professional Interviewer: For all reasons you mentioned above, which main cause make you leave the job? Interviewee: I think my problem is only related to promotion opportunity I see I had no change to be promoted there, so I quit Interviewer: If the company have a clear scale for promotion, would you stick with it for long time? Interviewee: Yes, I think so Generally, PVIS is a good working place If my ability and effort are adequate appreciated, and I was promoted to a higher position, I am willing to contribute much to the company Interviewer: Ok Thank you so much for the interview Have a nice day 59 ... From the initial symptom of high turnover rate in sales staffs at the company, through date, statistic and information via collecting, interviewing, and observing, it can be concluded that the... HO CHI MINH CITY International School of Business DANG NGO BAO YEN HIGH TURNOVER RATE IN SKILLED AND EXPERIENCED SALE STAFFS AT PVIS COMPANY MASTER OF BUSINESS ADMINISTRATION SUPERVISOR:... PROBLEMS IDENTIFICATION After identifying the problem mess PVIS company facing is high turnover rate in skilled and experienced sale- staffs, the research continue conducting in- depth interview with