CHAPTER 3 ANALYSIS OF FACTORS INFLUENCING EMPLOYEE
3.2. Factors influencing employee turnover at Setech
3.2.2. Factors influencing employees turnover at Setech
3.2.2.3. Job training and career development factor
Career development is another leading factor that contributes to the process of forming turnover intention. Motivational factors including recognition and advancement opportunities are important in keeping employees stay loyal with the organizations they are working for. Career development programs of an organization helps an individual in the organization to identify the gap between their skill and advancement requirement and thus, devote themselves to achieve a goal they set out.
With structured and well-function advancement plan, employees are encouraged to try their best and are enabled to have equal opportunity of being promoted.
Therefore, career development plan and promotion are important factors in helping employees stay loyal to the organizations. Employees need to feel treasured, that their work bears fruit in order for them to contribute their all to the company they are working for.
3.2.2.3.1. Job training and career development:
Table 9. Response of current and former employees regarding job training and career development plan at Setech.
Subfactor Current employee Former employee SA A SA DA SDA SA A SA DA SDA Career development
program is available in my organization
0 2 7 59 5
0 0 0 5 0
0 2.74% 9.59% 80.82%6.85% 0 0 0 100% 0 Job training and career
development are given in fair manner at my company
0 5 12 51 3
0 6.85%16.44%69.86%4.11%
You believe that employees assigned on your former job perform the duties without any further training
4 1 0 0 0
80% 20% 0 0 0
There were structured career development system in the organization
0 0 0 4 1
0 0 0 80% 20%
You got knowledge or skills at your former
1 1 0 2 1
20% 20% 0 40% 20%
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organizations
Source: Data analyzed and collected by author, 2017 Regarding training program or career development at Setech, most of respondents seemed to agree that Setech is not willing to pay extra or in fact, pay for anything related to this matter. About whether career development program is available in the organization, over 90% of current employees (64 out of 73) disregarded that Setech had any programs related to training or career development, and all 5 former employees disagreed that there was available job training and career development program in Setech.
About whether job training and career development are given in fair manner, because Setech lacks job training program or career development plan, almost all of current respondents feel that the training is not given in fair manner.
Further confirming the speculation that lack of training and career development may be the main reasons former employees resigned, the survey of former employees towards the problems highlighted the reality Setech’s weakness is that the employees felt they had little no improvement in skills when working for Setech. Regarding the statement “You believe that employees assigned on your former job perform the duties without any further training”, 4 out of 5 former employees strongly agreed while 1 out of 5 agreed that they lacked training in Setech.
Towards the statement “There were structured career development system in the organization”, 20% somewhat agreed with the statement while 80% disagreed with that statement. This signifies the fact that Setech does not compose of any development system and career development is not the core competency that the company focused on..
The result from survey with current employees may point out the reality that there might be more employees leaving Setech in the future due to their dissatisfaction toward training system. From the author’s assumption, the
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dissatisfaction toward the lack of career development system has already formed turnover intention in current employees’ mind. The respondents also seem to believe that the lack of job training and career development program is the weakness of the company, and may causes doubt among employees that maybe they are the one who do not receive training while everyone else does. The correlation in answer regarding job training and career development program proves that this is the factor that causes turnover intention, and in turn, might lead to more actual turnover at Setech in the future.
During the interview with managers of the company, they point out that this is the most serious factor that lead to employee intention and employee turnover.
Even though the managers understand that employees value training and they need to feel that they acquire knowledge at Setech, the head of company is under great pressure to create a suitable job training system for every position at the company.
She also felt that creating job training system took a lot of time and financial support that the company cannot manage to provide for at that moment.
3.2.2.3.2. Promotion mechanism:
Table 10. Response of current and former employees regarding promotion mechanism at Setech.
Subfactor
Current employee Former employee
SA A SA DA SDA SA A SA DA SDA
There is a clear reward system based on performance in my organization
0 0 2 67 4 0 0 0 4 1
0 0 2.74% 91.78% 5.48% 0 0 0 80% 20%
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Source: Data analyzed and collected by author, 2017 Regarding the matter whether there is promotion and appraisal procedure or not and whether promotion is based on performance of the employees, both current employees and former employees agreed that the promotion mechanism in Setech is lacking, in fact, there is no promotion mechanism at all. In current employees’
opinions, up to 90% of respondents disagreed with the statement “There were promotion mechanisms based on performance” while 5 out of 5 former employees disagreed or strongly disagreed with that statement. The similar point of view between current employees and former employees point out that promotion mechanism is the factor leading to employee turnover at Setech.
The reality is that since the development of the company, besides the head of the company, there are 3 heads of department, all of them have been working in Setech since 2011. It may be that as the employees see that all off the manager positions have been filled up, they have no motivation to strive, and leave the company to look for better opportunities. In conclusion, the correlation in answer between both current employees and former employees point out that the lack of promotion mechanism directly influence employee turnover intention at Setech.