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 st Hanoi, 31 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 st Hanoi, 31 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 CHAPTER THEORETICAL BACKGROUND OF TALENT’S LOYALTY AND FACTORS AFFECTING TALENT’S LOYALTY 1.1 Talent’s loyalty 1.1.1 Concept of Talent .7 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 HRM HR TR SMEs TL TE TT TW AS JB CFA SEM 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 TL2 I intend to stay with my company for the next few 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 Tôi KHƠNG TL3 dễ dàng nhận lời mời làm cơng 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! Model Fit Summary CMIN Model Default model Saturated model Independence model RMR, GFI Model Default model Saturated model Independence model Baseline Comparisons Model Default model Saturated model Independence model Parsimony-Adjusted Measures Model Default model Saturated model Independence model NCP Model Default model Saturated model Model Independence model FMIN Model Default model Saturated model Independence model RMSEA Model Default model Independence model AIC Model Default model Saturated model Independence model ECVI Model Default model Saturated model Independence model HOELTER Model Default model Independence model 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) JS JS JS JS JS TL TE1 TE2 TE3 TT1 TT2 TT3 AS1 AS2 AS3 AS4 TC1 TC2 TC3 TC4 JS1 JS2 JS3 TL1 TL2 TL3 Standardized Regression Weights: (Group number - Default model) Covariances: (Group number - Default model) TE < > TE < > TE < > TE < > TT < > TT < > TT < > TW < > TW < > AS < > Correlations: (Group number - Default model) TE TE TE TE TT TT TT TW TW AS Variances: (Group number - Default model) TE TT TW AS TC e42 e39 e5 e6 e7 e8 e9 e10 e11 e12 e13 e14 e15 e16 e17 e18 e19 e20 e21 e35 e36 e37 e1 e2 e3 Squared Multiple Correlations: (Group number - Default model) JS TL TL3 TL2 TL1 JS3 JS2 JS1 TC4 TC3 TC2 TC1 AS4 AS3 AS2 AS1 TW3 TW2 TW1 TT3 TT2 TT1 TE3 TE2 TE1 Model Fit Summary CMIN Model Default model Saturated model Independence model RMR, GFI Model Default model Saturated model Independence model Baseline Comparisons Model Default model Saturated model Independence model Parsimony-Adjusted Measures Model Default model Saturated model Independence model NCP Model Default model Saturated model Independence model FMIN Model Default model Saturated model Independence model RMSEA Model Default model Independence model AIC Model Model Default model Saturated model Independence model ECVI Model Default model Saturated model Independence model HOELTER Model Default model Independence model ... is the current status of talent’s loyalty in Sales Department of companies in Viet Nam? What are the suitable solutions to improve talent’s loyalty in Sales Department of companies in Viet Nam? ... 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