ETi = αi+β1iAi+ β2iGENi+ β3iEDUCi+ β4iSATi+ β5iEAi+ β6iVALi+εi
Where:
ET = expected turnover (1:expected turnover; 0:expected retention) A = Age (1:if 18-30; 0:otherwise)
GEN = Gender (1:male; 0=female)
EDUC = educational qualification (1:if professional; 0:if otherwise) SAT= work satisfaction (1:not satisfied; 0:if satisfied)
EA = Emotional Attachment (1:if not emotionally attached to the company;0=if otherwise)
VAL = Valuation of job title (1:if they aren’t value job title;0=if otherwise)
On Table 4.18, the result shows that the model is consistent. Looking at the regression coefficients, it is easy to see from the six (6) variables there are only three variables, SAT (Work satisfaction), EA (Emotional attachment) and VAL (Valuation of job title), that are significantly relevant. In the SAT variable (Work satisfaction), when work satisfaction has a value of one (1) (the employee is not satisfied, the ability of the employee want to leave will get higher). In the EA variable (emotional attachment) when the emotional attachment has a value of one (1) (If not emotionally attached to the company), the desire of the employee who want to leave will get higher. In the
VAL variable (valuation of job title) when valuation of job title has a value of one (1) (If they do not value job title), the ability of the employee who want to leave will get higher.
Table 4.18
Result of the Logistic Regression
Omnibus Tests of Model Coefficients
Chi-square df Sig.
Step 1 Step 209.791 6 .000
Block 209.791 6 .000
Model 209.791 6 .000
Variables in the Equation
B S.E. Wald df Sig. Exp(B)
Step 1a GEN .211 .332 .404 1 .525 1.235
A -.097 .383 .064 1 .801 .908
EDUC -.027 .393 .005 1 .944 .973
SAT -3.341 .509 43.166 1 .000 .035
EA -3.642 .517 49.592 1 .000 .026
VAL 1.088 .438 6.154 1 .013 2.968
Constant 1.082 .339 10.185 1 .001 2.952 a. Variable(s) entered on step 1: q1gt, agesmh, q3educationmh,
q6mh, q8mh, q5.
This results is similar with the study of Ramlall S. (2003) which showed that the job title of the company and its compensation package were the most common factors in remaining with the company and that compensation and lack of challenge and opportunity were the most common factors in contemplating leaving the organization.
Chapter V
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
The chapter describes the summary of findings and conclusion based on the objectives of the study including (i) determine the profile of the respondents in SMEs service businesses in Hanoi, (ii) analyze the expected turnover and retention rates in SMEs service businesses in Hanoi, (ii) ascertain the relationship between the expected turnover and retention rates in SMEs service businesses in Hanoi, (iv) determine the factor that will affect the expected turnover of the respondents, and (v) recommend workable retention strategies for SMEs service businesses in Hanoi. This chapter also provides answers to the following research questions (i) what is the profile of employee-respondents in different service oriented SMEs in Hanoi, (ii) what is the expected turnover rate and retention rate in service-oriented SMEs in Hanoi?, (iii) what is the relationship between expected employee turnover and retention strategies with personal factors?, and (iv) what are the factors that affect the expected turnover of the respondents?
Summary of Findings
1. Of the total respondents, the females out-numbered the males by 20%.
At the same time, the respondents were mostly within the age bracket of 18 to 30 years old implying that majority (63%) of the workers in Hanoi-based SMEs were still young. The respondents who are over 50 accounted for the lowest currency (6%), suggesting that working in the service industry do not fit the older workers.
2. The remaining respondents from 31 to 40 of age accounted for 16%
and respondents from 41 to 50 of age accounted for 15%. The higher education respondents have the highest rate (64%) showing that the SMEs should have policies to attract workers, who have higher levels.
3. The total number of respondents who want to leave accounted for a significant proportion of 42.8%. This means that companies have a big number of employees who are not happy and there should be some issue with companies’ people policy.
4. The portion of female respondents who want to stay with the company is 58.75% which is higher than those of male respondents with 55%.
As a result, the portion of male respondents who want to leave is higher than those of female respondents. This figure reflects that female employees want more stable job and have a tendency to stay with existing jobs than that of male employees. The significance of Chi- square is greater than 0.05 (Sig = 0.458) . This means that there is no significant relationship between genders and the expected turnover.
5. Employees with age range from 18-30 are 250, this accounted for 62.5% of the total respondents, 57.6% want to stay and 42.4% want to leave. Respondents with the age range from 31-40 and from 41-50 are 64 and 61, accounting for 16% and 15%, respectively. The respondents with age range over 50 are 25, which accounted for 6.25%. The expected retention rates for the age ranges 31-40, 41-50 and over 50 are 62.5%, 49.1% and 60%, respectively. However, the significance test of Chi-square is greater than 0.05 (Sig = 0.478). This
means that there is no significant relationship between age and the expected turnover.
6. A total of 229 respondents with 74.75% want to stay. However, the significance test of Chi-square is greater than 0.05 (Sig = 0.933). This means that there is no significant relationship between educations and the expected turnover.
7. A total of 229 respondents with 57.25% want to stay regardless if companies offer more benefits or not while the remaining 42.7% would leave. In relation to the “no satisfaction of benefits” 130 out of 256 respondents want to stay. In terms of “satisfaction of benefits”, only 99 out of 144 respondents want to stay, and the remaining still want to leave. The significance level of 0.000 is less than 0.05, meaning there is a significant relationship between valuation of job title and the satisfaction of benefits.
8. A total of 141 respondents (35.25%) are not satisfied with their job;
among which 61.7% are female and 38.7% are male. The significance level is 0.608, greater than 0.05. The figure shows that there is no significant relationship between levels of job satisfaction and gender.
9. A total of 141 respondents (35.25%) are not satisfied with their job, 90 respondents with age range from 18-30 accounted for 63.82%. The significance level is 0.359, greater than 0.05. The figure shows that there is no significant relationship between levels of job satisfaction and age.
10. A total of 141 respondents (35.25%) are not satisfied with their job, 90 respondents with graduate school degree accounted for 63.8% while
24 respondents with higher education degree accounted for 17%. The significance level is 0.961, greater than 0.05. The figure shows that there is no significant relationship between levels of job satisfaction with the education.
11. A total of 152 respondents with 38% are not satisfied with their job, 91 are female and 61 are male. The significance level is 0.966, higher than 0.05. This means that the emotional attachment has no significant relationship with gender factor.
12. A total of 152 respondents with 38% are not satisfied with their job; in which 95 fall in the age range from 18-30, 29 respondents from 31-40, and 18 respondents from 41-50. The significance level is 0.339, higher than 0.05. This means that the emotional attachment has no significant relationship with the age factor.
13. A total of 152 respondents with 38% are not satisfied with their job, 96 have graduate school degree and 28 have higher education degree.
The significance level is 0.991, higher than 0.05. This means that the emotional attachment has no significant relationship with the education factor.
14. In terms of job title, 256 respondents with 64% find no increase in satisfaction in case increasing benefit, 151 of them are female and 105 are male. The significance level is 0.306, greater than 0.05. This figure means that there is no significant relationship between the job title and the gender factor.
15. In terms of job title, 256 respondents with 64% find no increase in satisfaction in case increasing benefits, 157 of them are from the age
bracket of 18-30, 41 from the age bracket of 31-40, and 47 from the age bracket of 41-50. The significance level is 0.029, less than 0.05.
This figure means that there is a significant relationship between the job title and the age factor.
16. In terms of job title, 256 respondents with 64% find no increase in satisfaction in case increasing benefits, 167 of them have graduate school degree and 52 are have higher education degree. The significance level is 0.020, less than 0.05. This figure means that there is a significant relationship between the job title and the education factor.
17. Based on the regression coefficients, it is easy to see from the six (6) variables there are only three variables: SAT (Work satisfaction), EA (Emotional attachment) and VAL (Valuation of job title) that are significantly relevant. In the SAT variable (Work satisfaction), when work satisfaction has a value of one (1) (the employee is not satisfied, the ability of the employee who want to leave will get higher). For the EA variable (emotional attachment), when the emotional attachment has a value of one (1) (If not emotionally attached to the company), the ability of the employee who want to leave will get higher. For the VAL variable (valuation of job title), when valuation of job title has a value of one (1) (If they do not value job title), the ability of the employee who want to leave will get higher.
Conclusions
1. Of the total respondents, the female outnumbered the male by 20%. At the same time, the respondents were mostly within the age bracket of 18 to 30 years old implying that majority (63%) of the workers in Hanoi- based SMEs were still young.
2. The respondents with higher education degree have the highest rate (64%).
3. The total number of respondents who want to stay is higher than those who want to leave. However, the difference is very high. This implies that there must be some issue with companies’ people policy.
4. Female employees want more stable job and have a tendency to stay with existing jobs than that of male employees. But the difference is not much high. The significance of Chi-square is greater than 0.05 (Sig = 0.458). This means that there is no significant relationship between gender and expected turnover.
5. Employees with age range from 18-30 are 250, which accounted for 62.5% of the total respondents, 57.6% want to stay and 42.4% want to leave. The expected retention rates for the age ranges 31-40, 41-50 and over 50 are 62.5%, 49.1% and 60%, respectively. However, the significance of Chi-square is greater than 0.05 (Sig = 0.478). This means that there is no significant relationship between age and expected turnover. The significance of Chi-square is greater than 0.05 (Sig = 0.933) for education and turnover . This means that there is no significant relationship between education and expected turnover.
6. In terms of job title, the significance level of 0.000 is less than 0.05, meaning there is a significant relationship between valuation of job title and the satisfaction of benefits.
7. The significance level of 0.608 is greater than 0.05 which implies that there is no significant relationship between levels of job satisfaction and gender.
8. The significance level of 0.359 is greater than 0.05 which implies that there is no significant relationship between levels of job satisfaction and age.
9. The significance level of 0.961 is greater than 0.05 which implies that there is no significant relationship between levels of job satisfaction and education.
10. The significance level of 0.966 is greater than 0.05 which implies that the emotional attachment has no significant relationship with gender factor.
11. The significance level of 0.339 is greater than 0.05 which implies that the emotional attachment has no significant relationship with age factor.
12. The significance level of 0.991 is greater than 0.05 which implies that the emotional attachment has no significant relationship with education factor.
13. The significance level of 0.306 is greater than 0.05 which implies that there is no significant relationship between the job title and the gender factor.
14. The significance level of 0.029 is less than 0.05 which implies that there is a significant relationship between the job title and the age factor.
15. The significance level of 0.020 is less than 0.05 which implies that there is a significant relationship between the job title and the education factor.
16. From the results, it is showed that the model is consistent. The regression coefficients shows that out of the six (6) variables there is only three variables, SAT (Work satisfaction), EA (Emotional attachment) and VAL (Valuation of job title), are significantly relevant.
Recommendations
Based on the conclusions, it is recommended that companies should develop workable retention strategies that reflect all variables including work satisfaction, emotional attachment and valuation of job title.
Based on the results of this study, the general strategic management process, a set of retention strategy and recommendations were proposed:
Table 5.1
Employee Retention Strategy
Strategy categories
Factors
Job title Work satisfaction Emotional attachment Human resource
planning and selection
- Designing effective promotion
programmed.
Employees who are recruited at the starting stage should be given promotion to have a higher
position when their qualifications are met. Also, vacancies for higher job titles should be declared to every employee so that they can apply and compete equally.
- Launching job expansion and job enrichment to help workers be able to use their potential skills and knowledge effectively.
- Establishing realistic job requirements and expectations for different employees.
-Enhancing the recruitment procedure by frequent training and updating to assess the company objectives, and working conditions, thereby making sure only those who are suitable and
passionate about the job are recruited.
Training and development
-Creating chances for people to learn and develop while working. The
perception of having opportunities can derive satisfaction with job and improve work performance.
-Operating effective orientation for new employees.
-Giving employee efficient training to help them have necessary skills to cope with difficulties that might arise from works.
Compensation scheme and promotion
- Careful evaluation of staff with clear criteria for proper promotion of higher position when they deliver outstanding performance.
-Offering attractive and fair wages as well as other benefits such as insurance, accommodation or vacation for high performing employees.
-Giving staff greater rights, and authority as they have
successfully
completed their task thereby making them feel more attached to the work.
Effective communication
-Focusing on open communication for complete commitment and participation of every person in the company. This will aid in contributing to a more inspiring, creative and satisfied workforce.
-Sending positive messages to motivate employees and clearly state what should be done.
-Making sure of a transparent process with willingness of the managers to receive any complain or feedback from people at the lower level.
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