Improving employee retention at impac corporation hoàn thiện công tác giữ chân nhân viên tại công ty cổ phần IMPAC

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - NGUYỄN THÙY DƯƠNG IMPROVING EMPLOYEE RETENTION AT IMPAC CORPORATION HỒN THIỆN CƠNG TÁC GIỮ CHÂN NHÂN VIÊN TẠI CÔNG TY CỔ PHẦN IMPAC LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2019 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - NGUYỄN THÙY DƯƠNG IMPROVING EMPLOYEE RETENTION AT IMPAC CORPORATION HỒN THIỆN CƠNG TÁC GIỮ CHÂN NHÂN VIÊN TẠI CƠNG TY CỔ PHẦN IMPAC 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 TRẦN HUY PHƯƠNG HÀ NỘI - 2019 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 Management, and the laws for above-mentioned declaration Date………………………… i ACKNOWLEDGEMENTS I would like to express my deepest gratitude to all of the following people for helping me complete my thesis Firstly, I would like to express my special thanks to my company for giving favorable conditions for my study and my master thesis completion at Hanoi school of business and management (HSB) Secondly, I am extremely grateful to all of the lecturers from the Department of Business Administration - HSB for providing me with research methods and professional knowledge during the course, especially the active and creative research skills My appreciation also goes to the teachers in the thesis review committee for giving me valuable ideas during my thesis completion process My profound gratitude is also conveyed to my instructor for his helpful assistance and guidance This thesis could have never been completed without his enthusiastic counsel and support Despite the efforts during the research period, there are still many limitations in the thesis I would hope to receive valuable comments from the teachers and coworkers to make this essay more complete Thank you very much./ Ha Noi, ii TABLE OF CONTENTS DECLARATION i ACKNOWLEDGEMENTS ii LIST OF TABLES vi LIST OF CHARTS AND FIGURES vii INTRODUCTION CHAPTER THEORETICAL BASIS ON RETAINING EMPLOYEES IN ENTERPRISES AND RESEARCH DESIGN 1.1 Concept and role of retaining employees in enterprises 1.1.1 Concept 1.1.2 Role 10 1.2 Basic factors effecting employee retention 11 1.2.1 Factors belong to the enterprise 11 1.2.2 Factors belong to employees 13 1.3 Theories of working motivation to retain employees 15 1.3.1 Theories about needs 15 1.3.2 Theory of two groups of elements of F.Herzberg (1959) 19 1.3.3 Equity theory of J.Stacey Adams 20 1.3.4 Victor Vroom’s Expectancy theory of Motivation (1964) 22 1.4 Content of retaining employees 23 1.4.1 Determine the need of employees 23 1.4.2 Retain employees with material tools 24 1.4.3 Retain employees with spiritual tools 28 1.5 Experience on retaining employees in SMEs 34 1.5.1 Experience of L&A (Le&Associates –specializes in providing manpower solutions for businesses) 34 1.5.2 Experience of United education Joint Stock Company 35 1.5.3 Lessons learned for Impac Corporation 35 iii 1.6 Research design 36 1.6.1 Proposal of analytical framework 36 1.6.2 Designing questionaire 38 1.6.4 Data collection methods 39 1.6.5 Methods of processing and analyzing data 40 CHAPTER 2: CURRENT SITUATION OF EMPLOYEE RETENTION AT IMPAC CORPOTATION 42 2.1 General overview of Impac Corporation 42 2.1.1 Process of formation and development of the Company 42 2.1.2 Organizational structure of the Company 42 2.1.3 Characteristics of business activities and manpower of the company 45 2.2 Analysis of employee retention status at Impac Corporation 47 2.2.1 Current situation of determining the needs of employees at the Company 47 2.2.2 Status of retaining employees with material tools 48 2.2.3 Status of retaining employees with spiritual tools 57 2.3 Analysis of factors effecting employee retention 67 2.3.1 Factors belong to the business 67 2.3.2 Factors belong to employees 68 2.4 Overal assessment of the status of retaining employees at Impac Corporation69 2.4.1 Achieved results 69 2.4.2 Limitations and causes 70 CHAPTER PROPOSAL OF SOLUTIONS TO COMPLETE EMPLOYEE RETENTION AT IMPAC CORPORATION 74 3.1 Business development orientation of the Company until 2025 74 3.2 Perpectives of HRM of the Company 74 3.3 Proposal of solutions to employee retention at Impac Corporation 75 3.3.1 Solutions to determine the needs of employees 75 3.3.2 Solutions of employee retention with material tools 76 3.3.3 Solutions of employee retention by spiritual tools 83 CONCLUSION 96 iv REFERENCES 98 APPENDIX 100 v LIST OF TABLES Table 1.1 Detailed description of the factors affecting staff retention at Impac Corporation Table 2.1 Business records of the Company in the period of 2015-2017 Table 2.2 Labor situation of the Company in the period of 2015-2017 Table 2.3 Payroll of employees at the Company in December 2017 (quoted) Table 2.4 Results of employee survey on salary of the Company Table 2.5 Total paid bonuses of the Company in the period of 2015 - 2017 Table 2.6 Results of staff survey on bonuses of the Company Table 2.7 Forms of welfare, allowance and subsidies applied at Impac Corporation Table 2.8 Result of staff survey on the Company’s welfare Table 2.9 Results of staff survey on work assignment in the Company Table 2.10 Results of staff survey on the stability of work at the Company Table 2.11 Comparing the number of employees of the Company in the period of 2015 - 2017 59 Table 2.12 Survey results of staff on working environment and conditions at the Company Table 2.13 Survey results of employees on the assessment of work performance at the Company 62 Table 2.14 Training needs at the company in the period of 2015-2017 63 Table 2.15 The situation of using the training and development budget at the Company in the period of 2015 - 2017 65 Table 2.16 Results of staff survey on training and promotion opportunities in the Company Table 3.1 Survey form of employees’ needs at Impac Corporation Table 3.2 Sample of work performance assessment form Table 3.3 Norms of the bonus level according to the coefficient of work completion Table 3.4 Sample of job description form Table 3.5 Questionnaires identifying training needs for employees in the Company vi LIST OF CHARTS AND FIGURES Figure 1.1 A Maslow's hierarchy of Needs 16 Figure 1.2 Influence of factors 20 Figure 1.4 Analytical frameworks 37 Figure 2.1 Company organization chart 43 vii INTRODUCTION Rationale Among the resources required to create the social and economic development of the nation in general and of each enterprise in particular, Human resources are viewed as the core resource for creating material value, creating the most competitive and decisive position for other resources In addition to building a business strategy, Enterprises need to have a human development strategy commensurate with human capital as Human resource is an important factor in turning a business strategy into reality Today, retaining employees is not just an administrative issue but requires organizations to recognize the importance of coordinating policies, goals and employee retention practices which is the work of all managers and the process of combining systems, policies and governance measures to recruit, retain and develop qualified staff to meet requirements in performing the overall goal of the organization Therefore, in order to promote human resource efficiency, staff retention should be developed and implemented as part of the overall strategy of the organization However, in Vietnam, most businesses are not really aware of the importance of this work, causing "bleeding" talent became quite common At the same time, it can be seen that our high-qualified human resources market is facing serious crisis because it can not catch up with the development of the economy As a company operating in the field of investing and providing transfering technology of medical equipment, science and technology, including both specific and competitive features, Impac Corporation has identified human development as an important strategic task to build and develop the Company into an enterprise that is able to meet the increasing demands of customers, especially with health care products As a result, retaining employee is increasingly attracted by the Company's leaders in order to build and develop strong human resource in all aspects, sufficiently quantitatively with high levels of education and management capacity, creativity and application of new technology APPENDIX Appendix 1.1 SURVEY FORM To whom it may concern, I am master student in Business Administration, Hanoi National University is implementing the Thesis "Improving employee retention at Impac Corporation" to serve the analysis and provide some solutions to improve retention of employees at Impac Corporation Hope you spend some time answering the questions below All information provided by you will be kept confidential and only serve the purpose of researching the thesis Part 1: Personal information (Please mark “X” in the corresponding box) Full name: ………………… Age: Sex: Male Academic level: Master and Bachelor Working time: Less than year Working Department: ……………………………………………………… Part 2: Survey content Please indicate your level of agreement with the statements below For each statement, circle (o) into a box corresponding to your choice according to the level assessment scale as follows: - Absolutely disagree, - Disagree, - No comments, - Agree, Absolutely agree Criteria No I Salary Salary ensure the life of you and your family The salary payment method applied by the Co 100 reasonable and fair The company considers to increase the salary according to regulations Conditions for considering salary increase are II Bonuses Reasonable bonus, which encourages you to w Company gives fair evaluation and reward Rewarded employees are appropriate Company rewarded in a timely manner III 10 11 IV 12 Welfair Welfare policy for employees is diverse and a Welfare employees You are Company Working environment and conditions The work friendly and united 13 The company has good cultural values and ph 14 Communication between departments is very 15 16 V 17 You are equipment The company always has a clever and delicat policy Job assignment Current works are suitable for the capacity an of you 18 The reasonable responsibility curr 19 You are proactive in your work 20 The assigned work is challenging and interes VI Job stability 21 Jobs assigned are stable and long-term 22 The company operates stably and effectively VII Job performance assessment 23 Assessment criteria are full and reasonable 24 Assessment method is appropriate 25 VIII 26 The assessment results are fair and reflect the the work Training and promotion opportunities You are fully trained with the necessary skills your jobs The company is very interested in training an 27 favorable conditions for employees to imp professional knowledge 28 The training programs of the Company are ap with the ability of employees The company creates promotion opportunitie 29 people and you know the conditions needed t work 30 Traning and promotion opportunities are fair Thank you very much for your support and cooperation! 102 Appendix 1.2 SUMMARY OF SURVEY RESULTS The total number of votes issued is 38 votes, the total number of valid votes collected is: 38 votes Survey results are as follows: No Criteria I Salary Salary ensure the life of you and your family The salary payment method applied by the C reasonable and fair The company considers to increase the salary according to regulations Conditions for considering salary increase ar appropriate II Bonuses Reasonable bonus, which encourages you to Company gives fair evaluation and reward Rewarded employees are appropriate Company rewarded in a timely manner III 10 11 IV 12 Welfair Welfare policy for employees is diverse and Welfare policy expresses the Company's c employees You are satisfied with the welfare regime Company Working environment and conditions The working environment in the Compan friendly and united 13 The company has good cultural values and p 14 Communication between departments is very 15 You are provided with adequate and satis equipment 103 16 V 17 18 The co discipline policy Job assignment Current expertise of you The cu reasonable responsibility 19 You are proactive in your work 20 The assigned work is challenging and interes VI Job stability 21 Jobs assigned are stable and long-term 22 The company operates stably and effectively VII Job performance assessment 23 Assessment criteria are full and reasonable 24 Assessment method is appropriate 25 VIII 26 The assessment results are fair and reflect the the work Training and promotion opportunities You ar perform your jobs The company is very interested in training an 27 favorable conditions for employees to impro professional knowledge 28 The training programs of the Company are a with the ability of employees The company creates promotion opportuni 29 capable people and you know the conditions develop at work 30 Traning everyone 104 Appendix 1.3 SUMMARY OF SURVEY RESULTS No I Salary Salary ensure the life of you and your family The salary payment method applied by the Company is reasonable and fair The company considers to increase the salary properly according to regulations II III Conditions for considering salary increase are appropriate Bonuses Reasonable bonus, which encourages you to work Company gives fair evaluation and reward Rewarded appropriate Company manner Welfair Welfare policy diverse and abundant Welfare Company's concern to employees You are satisfied with the welfare IV regimes of the Company Working conditions The working Company united V The company values and philosophy Communication departments is very good You and satisfactory equipment The company always has a clever and delicate discipline policy Job assignment Current works are suitable for the capacity and expertise of you The current assigned work required a responsibility VI VII You are proactive in your work The assigned and interesting Job stability Jobs assigned are stable and longterm The company operates stably and effectively Job performance assessment Assessment reasonable clear Assessment method is appropriate The assessment results are fair and reflect the results of the work VIII Training opportunities You are necessary jobs The company is very interested in training conditions improve knowledge The Company are appropriate with the ability of employees The opportunities and you know the conditions needed to develop at work Traning opportunities are fair to everyone training programs 107 ... KINH DOANH - NGUYỄN THÙY DƯƠNG IMPROVING EMPLOYEE RETENTION AT IMPAC CORPORATION HỒN THIỆN CƠNG TÁC GIỮ CHÂN NHÂN VIÊN TẠI CÔNG TY CỔ PHẦN IMPAC Chuyên ngành: Quản trị kinh doanh Mã... employees in enterprises and research design Chapter Current situation of employee retention at Impac Corporation Chapter Proposal of solutions to complete employee retention at Impac Corporation. .. Analysis of employee retention status at Impac Corporation 47 2.2.1 Current situation of determining the needs of employees at the Company 47 2.2.2 Status of retaining employees with material