The factors affecting talent’s loyalty in sales department of companies in viet nam

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - PHẠM THUÝ HỒNG THE FACTORS AFFECTING TALENT’S LOYALTY IN SALES DEPARTMENT OF COMPANIES IN VIET NAM CÁC NHÂN TỐ ẢNH HƯỞNG ĐẾN LÒNG TRUNG THÀNH CỦA NHÂN TÀI TRONG BỘ PHẬN BÁN HÀNG CỦA CÁC CÔNG TY TẠI VIỆT NAM LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2020 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - PHẠM THUÝ HỒNG THE FACTORS AFFECTING TALENT’S LOYALTY IN SALES DEPARTMENT OF COMPANIES IN VIET NAM CÁC NHÂN TỐ ẢNH HƯỞNG ĐẾN LÒNG TRUNG THÀNH CỦA NHÂN TÀI TRONG BỘ PHẬN BÁN HÀNG CỦA CÁC CÔNG TY TẠI VIỆT NAM Chuyên ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: TS PHẠM ANH TUẤN HÀ NỘI - 2020 DECLARATION The author confirms that the research outcome in the thesis is the result of author’s independent work during study and research period and it is not yet published in other’s research and article The other’s research result and documentation (extraction, table, figure, formula, and other document) used in the thesis are cited properly and the permission (if required) is given The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business, and the laws for above-mentioned declaration Hanoi, 31st of August, 2019 Pham Thuy Hong i ACKNOWLEDGEMENT I have gained huge knowledge, skill and insights from my MBA course The course raises my capacity of administration and management up to the next level The study "The factors affecting talent’s loyalty in Sales Department of companies in Viet Nam" is chosen to conduct for my graduation thesis based on my experience in the industry as well as precious knowledge an I gained from MBA program at HSB after valuable months studying here I declare that this is a true copy of my thesis The content of this thesis has been approved by the committee of Vietnam National University, Hanoi – Hanoi School of Business and Management (HSB) This thesis has not been submitted for a higher degree to any other University or Institution In order to finish this project successfully, I have received many helps, supports and guidance from many people who I would like to thank sincerely First of all, I would like to express my deep gratitude for Dr Pham Hung Hiep and his research coach centre for all profression assistance during data analysis process I also would like to thank all the professors of MBA program, especially – my supervisors, Dr Pham Anh Tuan Then I would like to thank deeply to my friends, my partners, respondents and interviewees who allowed me to gather enough data for this research Finally, I would like to express my thanks to my husband, my family, my fellow friends who always stand by me during the past two years and encourages me to keep moving from the beginning of my study Hanoi, 31st of August 2019 Pham Thuy Hong ii TABLE OF CONTENTS DECLARATION i ACKNOWLEDGEMENT ii ABBREVIATION .v LIST OF TABLES vi LIST OF FIGURES vii INTRODUCTION .1 CHAPTER THEORETICAL BACKGROUND OF TALENT’S LOYALTY AND FACTORS AFFECTING TALENT’S LOYALTY 1.1 Talent’s loyalty 1.1.1 Concept of Talent 1.1.2 Talent’s loyalty 1.2 Factors affecting talent’s loyalty 11 1.2.1 Empowerment 12 1.2.2 Training 13 1.2.3 Teamwork 15 1.2.4 Appraisal System 16 1.2.5 Compensation 17 1.2.6 Job Satisfaction 17 1.3 Conceptual model .19 CHAPTER RESEARCH METHODOLOGY 21 2.1 Research process 21 2.2 Research design 23 2.2.1 Research model and Hypothesis 23 2.2.2 Data collection method 24 2.2.3 Designing Scale and Questionnaire 25 2.2.4 Data Collection Process 28 2.2.5 Data Analysis Procedure 28 iii CHAPTER RESEARCH FINDINGS 30 3.1 Data Preparation and descriptive statistics .30 3.1.1 Data Preparation 30 3.1.2 Descriptive Statistics 32 3.2 Measurement Model Evaluation 41 3.3 Composite factors calculation and validity tests
 45 3.4 Data Analysis .48 3.5 Analysis of Hypothesis conceptual talent’s loyalty model 49 CHAPTER DISCUSSIONS AND RECOMMENDATIONS 50 4.1 Discussions 50 4.2 Recommendations 52 CONCLUSIONS AND LIMITATIONS 55 REFERENCES 57 APPENDIX iv ABBREVIATION HRM Human Resource Management HR Human Resource TR Talent Retention SMEs Small and Medium Enterprises TL Talent’s Loyalty TE Talent Empowerment TT Talent Training TW Teamwork AS Appraisal System JB Job Satisfaction CFA Confirmatory Factor Analysis SEM Structural equation modeling v LIST OF TABLES Table 2.1: Hypothesis for model .24 Table 2.2: Detail and Source of Questionnaire 26 Table 3.1: Encoded Variables 30 Table 3.2: Demographic and Basic Information of Respondents .32 Table 3.3: Descriptive Analyses for Measurement Items 40 Table 3.4: Variables in the CFA Model 41 Table 3.5: Results of factor loading 42 Table 3.6: Factor loading for Confirmatory Factor Analysis 43 Table 3.7: Confirmatory factor analysis for convergent and discriminant validity 45 Table 3.8: Results of multiple fit indices 46 Table 3.9: Variables in the SEM Model 47 Table 3.10: Results of Structural Equation Model 47 Table 3.11: The summary of Hypotheses Testing 49 vi LIST OF FIGURES Figure 1: Global average turnover: overall vs sales population Figure 1.1 Jun et al (2006) Conceptual model 20 Figure 2.1 : The research process and research methodology 21 Figure 2.2 Talent’s Loyalty conceptual framework model 23 Figure 3.1: Gender distribution among 325 respondents 34 Figure 3.2: Age distribution among 325 respondents .35 Figure 3.3: Marital Status among 325 respondents 36 Figure 3.4: Marital Status among 325 respondents 37 Figure 3.5: Highest level of education among 325 respondents .37 Figure 3.6: Marital Status among 325 respondents 38 Figure 3.7: Working Experience among 325 respondents 39 Figure 3.8: Type of company among 325 respondents 39 Figure 3.9: Model of Structural Equation Model Result 48 vii INTRODUCTION Rationale ”Having the most talented people in each of our businesses is the most important thing If we don’t, we lose.” (Jack Welch, chairman and CEO of GE 1981–2001) Talent has been recognized as an important strategic resource by many organizations (Lawler, 2008; Wennberg, 2014) and Talent Management is considered as one of the most compelling challenges organizations face today and in the future (Deloitte, 2013; Dries, 2013; Thunnissen, Boselie & Fruytier, 2013; Cappelli & Keller, 2014) Employers today face a more fluid labor market than in the recent past In 2014 Global Workforce Study, a survey of over 32,000 employees worldwide, employers didn’t receive high marks from employees on their ability to get and keep talent ―Fewer than half of respondents report that their company does a good job when it comes to attracting and retaining the right workers Only 46% say their organization hires highly qualified employees, while 42% say their employer does a good job of retaining talented employees‖ Losing talent is a serious problem that many enterprises are facing When employees leave, it costs the organization time and money The total costs associated with turnover can range from 90% to 200% of annual salary (Cascio, 2006; Mitchell, Holtom, & Lee, 2001) For example, it costs the company $102,000 for a journeyman machinist, $133,000 for an HR manager at an automotive manufacturer, and $150,000 for an accounting professional That is the basic cost of losing talent! Beside the obvious direct costs associated with turnover, such as accrued paid time off and staffing costs associated with hiring a replacement, there are a several of other direct and indirect costs associated with turnover which identifies two primary types of costs associated with voluntary turnover: separation costs and replacement costs PriceWaterhouse Coopers (2006) estimates that turnover-related costs represent more than 12% of pre-tax income for the average company, and 5: Strongly agree Anh/chị vui lòng cho biết trải nghiệm đánh giá thân vấn đề theo thang điểm từ đến 5, đó: 1: Hồn tồn khơng đồng ý 2: Khơng đồng ý 3: Không đồng ý không phản đối 4: Đồng ý 5: Hoàn toàn đồng ý Code Factors Scale Mã Nhân tố Thang đo TE Empowerment Quyền tự chủ công việc I am provided with substantial autonomy and TE1 responsibility Tôi cung cấp quyền tự chủ trách nhiệm đáng kể I am not punished for quality improvement ideas that TE2 are unsuccessful Tôi không bị trừng phạt ý tưởng cải tiến chất lượng khơng thành công I am encouraged to develop new ways to provide TE3 better products and services Tơi khuyến khích phát triển phương án để cung cấp sản phẩm dịch vụ tốt I am NOT provided with sufficient information to TE4 arrive at good quality suggestions Tơi KHƠNG cung cấp đầy đủ thơng tin để đến đề xuất có chất lượng tốt TT Training Đào tạo 5 I have received sufficient training at this company to TT1 my job effectively Tôi đào tạo đầy đủ công ty để thực cơng việc cách hiệu TT2 I am trained in quality improvement skills Tôi đào tạo kỹ nâng cao chất lượng I am trained in group-discussion and communication TT3 techniques Tôi đào tạo kỹ thuật thảo luận nhóm giao tiếp TW Teamwork Làm việc nhóm Teams are used extensively at my company TW1 Hình thức làm việc nhóm áp dụng rộng rãi công ty Product and service quality teams are formed for the long run TW2 Các đội nhóm chất lượng sản phẩm dịch vụ hình thành cho phát triển lâu dài công ty I think that my teams are effective in producing TW3 quality goods/ services Tôi nghĩ đội nhóm tơi làm việc có hiệu việc cung ứng hàng hóa/dịch vụ chất lượng AS Appraisal system Hệ thống đánh giá The quality of my work is an important factor in AS1 evaluating my job performance) Chất lượng công việc yếu tố quan trọng để đánh giá hiệu công việc I am regularly given feedback AS2 on my job performance Tôi thường xuyên nhận ý kiến phản hồi lực làm việc Part of my job performance evaluation is based on AS3 how well I work with teams Một phần đánh giá kết công việc dựa mức độ làm việc với đội nhóm Part of my job performance evaluation is based on customer feedback on product and service quality AS4 Một phần đánh giá kết công việc dựa phản hồi khách hàng chất lượng sản phẩm dịch vụ TC TC1 Compensation Thu nhập I am satisfied with the pay that I receive Tơi hài lịng với mức thu nhập mà nhận I earn more than others who similar work at other TC2 companies Tôi kiếm nhiều tiền người làm công việc tương tự công ty khác My pay encourages me to improve the quality of my TC3 work Thu nhập tơi khuyến khích tơi cải thiện chất lượng công việc I will receive a reward if I something to improve TC4 product and service quality Tôi nhận phần thưởng tơi làm để cải thiện chất lượng sản phẩm dịch vụ The benefits, such as vacation time and medical insurance that I receive here are better than those I TC5 could get at similar companies Những lợi ích, thời gian nghỉ hè bảo hiểm y tế mà nhận công ty tốt lợi ích tơi nhận công ty tương tự JS JS1 Job Satisfaction Mức độ hài lịng với cơng việc 5 I very much like the type of work I am doing Tơi thích công việc làm My job performance improves from year to year JS2 Hiệu công việc cải thiện từ năm sang năm khác My job offers me a career path that I am pleased with JS3 Công việc đem đến cho lối nghiệp khiến tơi hài lịng I DO NOT feel a sense of pride and accomplishment JS4 as a result of the type of work I Tơi KHƠNG cảm thấy tự hào hãnh diện làm công việc TL Talent Loyalty Sự trung thành hành vi công việc I consider my company as my first choice to work TL1 Tôi coi công ty lựa chọn để làm việc I intend to stay with my company for the next few TL2 years Tôi dự định tiếp tục lại làm việc cho công ty vài năm tới I would NOT easily accept a job from an alternative employer that offers a better salary Tơi KHƠNG TL3 dễ dàng nhận lời mời làm công việc khác từ công ty khác, nơi đưa đề nghị lương hấp dẫn I would easily accept a job from an alternative employer that offers a better fringe benefits TL4 Tôi dễ dàng nhận lời mời làm công việc khác từ công ty khác, nơi đưa đề nghị chế độ đãi ngộ lương hấp dẫn Sincerely thanks and wish you health, success! Xin chân thành cảm ơn kính chúc anh/chị sức khỏe, thành công! APPENDIX Model Fit Summary CMIN Model Default model Saturated model Independence model NPAR CMIN DF P CMIN/DF 68 375.383 208 000 1.805 276 000 23 8469.501 253 000 33.476 RMR, GFI Model RMR GFI AGFI PGFI Default model 036 910 881 686 Saturated model 000 1.000 Independence model 904 097 015 089 Baseline Comparisons Model Default model Saturated model Independence model NFI RFI IFI TLI Delta1 rho1 Delta2 rho2 956 946 980 975 1.000 000 1.000 000 000 CFI 980 1.000 000 Parsimony-Adjusted Measures Model PRATIO PNFI PCFI Default model 822 786 805 Saturated model 000 000 000 1.000 000 000 Independence model NCP Model Default model Saturated model NCP LO 90 HI 90 167.383 117.070 225.538 000 000 000 000 Model Independence model NCP LO 90 HI 90 8216.501 7919.200 8520.145 FMIN Model FMIN F0 LO 90 HI 90 Default model 1.159 517 361 696 000 000 000 000 26.140 25.360 24.442 26.297 Saturated model Independence model RMSEA Model RMSEA LO 90 HI 90 PCLOSE Default model 050 042 058 503 Independence model 317 311 322 000 AIC Model AIC BCC BIC CAIC Default model 511.383 522.263 768.683 836.683 Saturated model 552.000 596.160 1596.336 1872.336 8515.501 8519.181 8602.529 8625.529 Independence model ECVI Model ECVI LO 90 HI 90 MECVI Default model 1.578 1.423 1.758 1.612 Saturated model 1.704 1.704 1.704 1.840 26.282 25.365 27.220 26.294 Independence model HOELTER Model Default model Independence model HOELTER HOELTER 05 01 210 224 12 12 SEM Notes for Model (Default model) Computation of degrees of freedom (Default model) Number of distinct sample moments: 276 Number of distinct parameters to be estimated: 62 Degrees of freedom (276 - 62): 214 Result (Default model) Minimum was achieved Chi-square = 416.835 Degrees of freedom = 214 Probability level = 000 Estimates (Group number - Default model) Scalar Estimates (Group number - Default model) Maximum Likelihood Estimates Regression Weights: (Group number - Default model) Estimate S.E C.R P JS < - TE 033 082 406 684 JS < - TT 017 074 233 815 JS < - TW 303 075 4.021 *** JS < - AS 088 087 1.014 310 JS < - TC 609 092 6.607 *** TL < - JS 880 039 22.448 *** TE1 < - TE 1.000 TE2 < - TE 784 049 16.128 *** TE3 < - TE 1.012 041 24.908 *** TT1 < - TT 1.000 TT2 < - TT 1.001 034 29.561 *** TT3 < - TT 954 033 29.165 *** TW1 < - TW 1.000 TW2 < - TW 1.002 034 29.392 *** TW3 < - TW 927 034 26.998 *** AS1 < - AS 1.000 AS2 < - AS 770 046 16.647 *** AS3 < - AS 946 041 22.834 *** AS4 < - AS 970 044 22.281 *** TC1 < - TC 1.000 TC2 < - TC 874 062 14.087 *** TC3 < - TC 1.175 061 19.360 *** TC4 < - TC 1.080 064 16.917 *** Label Estimate S.E C.R P JS1 < - JS 1.000 JS2 < - JS 950 033 28.842 *** JS3 < - JS 1.004 031 32.007 *** TL1 < - TL 1.000 TL2 < - TL 1.044 038 27.105 *** TL3 < - TL 948 044 21.750 *** Label Standardized Regression Weights: (Group number - Default model) Covariances: (Group number - Default model) Estimate S.E C.R P TE < > TT 1.101 104 10.621 *** TE < > TW 1.121 106 10.558 *** TE < > AS 1.069 101 10.537 *** TE < > TC 848 087 9.730 *** TT < > TW 1.152 107 10.721 *** TT < > AS 1.011 099 10.220 *** TT < > TC 856 087 9.782 *** TW < > AS 1.098 104 10.530 *** TW < > TC 831 088 9.493 *** AS < > TC 822 085 9.667 *** Label Correlations: (Group number - Default model) Estimate TE < > TT 841 TE < > TW 838 TE < > AS 858 TE < > TC 817 TT < > TW 853 Estimate TT < > AS 804 TT < > TC 817 TW < > AS 854 TW < > TC 776 AS < > TC 825 Variances: (Group number - Default model) Estimate S.E C.R P TE 1.296 122 10.644 *** TT 1.321 122 10.832 *** TW 1.381 129 10.691 *** AS 1.196 118 10.126 *** TC 831 097 8.530 *** e42 224 027 8.370 *** e39 188 027 7.019 *** e5 233 025 9.181 *** e6 211 024 8.803 *** e7 204 023 9.046 *** e8 267 028 9.429 *** e9 200 024 8.300 *** e10 255 026 9.773 *** e11 314 033 9.505 *** e12 577 049 11.711 *** e13 313 032 9.840 *** e14 363 036 10.118 *** e15 466 042 11.038 *** e16 594 051 11.727 *** Label Estimate S.E C.R P e17 234 029 7.968 *** e18 452 042 10.684 *** e19 199 021 9.616 *** e20 223 022 10.232 *** e21 159 018 8.806 *** e35 249 027 9.110 *** e36 201 026 7.883 *** e37 413 038 10.834 *** e1 238 032 7.550 *** e2 752 064 11.776 *** e3 335 037 8.941 *** Label Squared Multiple Correlations: (Group number - Default model) Estimate JS 817 TL 834 TL3 711 TL2 860 TL1 820 JS3 885 JS2 832 JS1 860 TC4 682 TC3 830 TC2 516 TC1 640 AS4 756 Estimate AS3 774 AS2 552 AS1 792 TW3 823 TW2 874 TW1 838 TT3 855 TT2 862 TT1 850 TE3 799 TE2 514 TE1 845 Model Fit Summary CMIN Model Default model Saturated model Independence model NPAR CMIN DF P CMIN/DF 62 416.835 214 000 1.948 276 000 23 8469.501 253 000 33.476 RMR, GFI Model RMR GFI AGFI PGFI Default model 044 902 873 699 Saturated model 000 1.000 Independence model 904 097 015 089 Baseline Comparisons Model Default model Saturated model Independence model NFI RFI IFI TLI Delta1 rho1 Delta2 rho2 951 942 975 971 1.000 000 1.000 000 CFI 975 1.000 000 000 000 Parsimony-Adjusted Measures Model PRATIO PNFI PCFI Default model 846 804 825 Saturated model 000 000 000 1.000 000 000 Independence model NCP Model Default model Saturated model Independence model NCP LO 90 HI 90 202.835 148.788 264.679 000 000 000 8216.501 7919.200 8520.145 FMIN Model FMIN F0 LO 90 HI 90 Default model 1.287 626 459 817 000 000 000 000 26.140 25.360 24.442 26.297 Saturated model Independence model RMSEA Model RMSEA LO 90 HI 90 PCLOSE Default model 054 046 062 188 Independence model 317 311 322 000 AIC Model AIC BCC BIC CAIC Model AIC BCC BIC CAIC Default model 540.835 550.755 775.432 837.432 Saturated model 552.000 596.160 1596.336 1872.336 8515.501 8519.181 8602.529 8625.529 Independence model ECVI Model ECVI LO 90 HI 90 MECVI Default model 1.669 1.502 1.860 1.700 Saturated model 1.704 1.704 1.704 1.840 26.282 25.365 27.220 26.294 Independence model HOELTER Model Default model Independence model HOELTER HOELTER 05 01 194 207 12 12 ... What is the role of talent in a company? - What are the factors influencing talent’s loyalty? - What is the current status of talent’s loyalty in Sales Department of companies in Viet Nam? - What... capacity of administration and management up to the next level The study "The factors affecting talent’s loyalty in Sales Department of companies in Viet Nam" is chosen to conduct for my graduation thesis... on the high-skilled workforce and manager, working for Sales Department of companies in Viet Nam Scope of research - Scope of contents: Talent’s loyalty - Scope of space: All of the companies in