Turnover rate and unfair paying salary and benefit at tin nghia petrol joint stock company

UNIVERSITY OF ECONOMICS HO CHI MINH CITYInternational School of Business ---LE ĐOAN NHAN TURNOVER RATE AND UNFAIR PAYING SALARY AND BENEFIT AT TIN NGHIA PETROL JOINT STOCK COMPANY ID: 2

INTRODUCTION

Thecompanybackground

Generalinformation:TinNghiaPetrolJointStockCompanyofficiallyoperateda s aJointStockCompanyonJanuary1 st ,2009basedontheconversionfromTinNghiaP e t r o l OneMemberCompanyLimited(establishedin1999– asubsidiarycompanyofT i n NghiaCorparation)

Withtwop e t r o l st at io ns fromthebeginning st age, theoutput wasonlysome of millionlitersperyear;uptonow,thecompany hasawidedistributionnetworkinDongNai P r o v i n c e w i t h s a l e v o l u m e o f h u n d r e d s m i l l i o n l i t e r s p e r yeart u r n o v e r r e a c h e d trillionsofVNDperyearandm a n y co nsecutiveyearshavebeennameinTop5 0 0 largestenterprisesinVietnam.Apartfromcompany’ sretailsystem,alsodistributemanya g e n c i e s andindustrialcustomersinandoutofDongNaipro vince.

Petroleumt r a d i n g ist h e mainb u s i n e s s witht u r n o v e r m o r e t h a n 9 0 % o f t o t a l r ev en ue andcontinuousdevelopmentovermanyyears.

Foundationa n d d e v e l o p m e n t p r o c e s s:T h r o u g h n e a r l y 2 0 yearso f f o u n d a t i o n anddevelopment,withover350employees,TinNghia’sbrandnamegraduallyaff irmsinDongNaimarketaswellasSoutheastregion,andattractsmoreandmorecustomers.

Distributionsys te mi nc lu des 44l o c a t i o ns i n B i e n H o a a n d somet o w n s a s V i n h Cu u , C a m My,X u a n L o c , L o n g T h a n h , a n d s o o n I n a d d i t i o n , t h e c o m p a n y h a s 3 0 p e t r o l e u m a g e n c i e s , nearly2 0 0 i n d u s t r i a l c u s t o m e r s ( i n c l u d i n g f a c t o r i e s , c o m p a n i e s usin g p e t r o l e u m o i l a s f u e l ) a n d moret h a n 1 , 0 0 0 o t h e r c u s t o m e r s ( s u c h a s g a r a g e s , transportationunits…).Annualo u t p uti n c r e a s e d f r o m 7 % to1 0 % s a l e r e a c h e d o v e r 3 , 0 0 0 billionVND.

The first petrol stations area

The second petrol stations area

The third petrol stations area

The fourth petrol stations area

The fifth petrol stations area

The eleventh petrol stations area

With1 6 t a n k e r s a n d 2 t r u c k s , w e p r o v i d e t r a n s p o r t a t i o n s e r v i c e f o r a l l t r a d i n g activitiessuchasgasoline,lubricantandgastankstointernalpetrolstation andcompany’ss u p p l i e r s A n n u a l t r a n s p o r t a t i o n v o l u m e i n c r e a s e f r o m 1 0 % t o 1 5 % a n d r e a ch es 200millionlitersofgasolineandover2,000tonsofgastanks.

Companystructureandmission

PROBLEMCONTEXT

Theturnoverratestatusinthe TinNghia Company

Accordingtothestatisticsshowninthecompany’sreports,thenumberofemploy eesl e a v e a t T i n N g h i a P e t r o l h a s b e e n i n c r e a s i n g i n t h e p a s t 4 years(2013-

2 0 1 6 ) E s p e c i a l l y instaffposition,this numberofstaffsquitted theirjobs areevenmoresurprising.Thisproblemposesathreattothecompany’smissiontogrowinnexttim e.

Position Quality Rate Quality Rate Quality Rate Quality Rate

2016,thenumberofs t a f f s leavingcontinuedtoincreaseduringthisperiod(form10to35people) whileotherp o s i t i o n nearlykeepunchanged.

Itc a n bes e e n t h a t t h e numbero f w o r k e r s lefti s a l s o veryhighb u t theyarene arlythesameinperiodfrom2013to2015whilestaffleavinghavebeingincreased.W orkerpositioniseasytorecruitwithsimplerequirementstohavehighschooldiplomao r equival ent(notrequiredtograduateatcollegesoruniversity),physicalstrengthanddexterity.

Accordingt o P r i c e e t a l 1with C a us a l M o d e l o f T u r n o v e r ( v o l u n t a r y leavin g fromanorganization),turnoverisdefinedastheratioofthenumberoforganizationa lmembersw h o h a v e l e f t and d i v i d e d byt h ea v e r a ge n um be ro f p e o p l e i nt h a t org ani zat io n du ring th e period.

Themodelshowsthatintenttostayhasadirectnegativei mp a c t onturnover,whenjobsatisfact ionincreases,intenttostaywiththeorganizationwillbeincreased.

Michealetal 2indicated thatemployeeturnoverisoneofthepersisting problemsinorganizations.Arieetal 3showed thathighemployeeturnoverisrelatedtolowero rganizationperformance.

Themanagerisc a r i n g t h e numbero f staffleavingb e c a u s e o f i t s e x c e s s i v e g r o w t h in theperiodfrom2013 to2015(from 10to 35people,from24% to

53%).Staffp o s it io n hasvariousfunctioninthecompany,includingcommercialfinance,ac counting,marketing,projectappraisal,recruitment,compensation&benefitinHead office,locatedatallbranchesofthecompany.Theyareaccountants,saleman,projects taff,recruitmentstaffandC&Bstaff.Theyplayanimportantroleinbusinessoperationa n d h a v e d i r e c t c o m m u n i c a t i o n w i t h e a c h o t h e r f u n c t i o n s S t a f f p o s i t i o n i s r e q u i r e d g radu at e atcollegesoruniversity,goodatEnglishandcomputerskillforrecruitment.

Basedont h e r e p o r t ofHumanR e s o u r c e s D e p a r t m e n t s h o w n t h e numb ero f st a ff s in2016were66people(accountfor20.06%/ totalemployees).Regardingtothea v e r a g e ageasshowninFigure1,about29%

(equivalent19staffs)were22to28yearso l d , 35%staffs(equivalent23staffs)were29to35 yearsoldand36%(equivalent24s t a f f s ) hastheagerangemorethan35yearof age.Itcanbeseenthatnumberof staffsing r o u p upper35yearsoldisthemost

RegardingtotheageofstaffsleftasshowninFigure2,themostofthesestaffsw e r e 23to2 8yearsold,thenextonewere29to35yearsoldwhileupper35yearsoldisn ear ly zero.

Figure3.Result ofevaluatedperformanceofstaffpositionindetaileachgro upofageperiodfrom2013to2016

(Source:HumanResourceDepartment) Accordingtot h e r e s u l t o f e v a l u a t e d p e r f o r m a n c e o f s t a f f p o s i t i o n i n p e r i o d from2013to2016withthreegroups differentage,itcanbeseent h a t th enumberofs t a f f s areappraisedwiththehighestperformanceweregroup29-

35ofage,nextgroup2 3 - 2 8 ofage,lastgroupupper35ofagewiththelowestperformance.

Thestaffsingroupfrom23to28yearsoldwereyoungthereforealmostlacke x p e r i e n c e s Despite lackexperiencesin majorfieldofworking,theyareveryvivaciousandfullofenergy intheirmission.Addition,itiseasyforthemtokeepupthetrendofh i g h t ec h n o l o g y be ca us e o f t h e i r d y n a m i c a n d youth.Sometimes,theygivec r e a t i v e ideaslikeusingtech nicalsoftwareintheirworksothattheysolvetheirworkquicklyandeffective.Themana geroftenhasagoodevaluationaboutstaffsinthisgroup.

The staffs with high performance

Thes t a f f s i n g r o u p f r o m 2 9 t o 3 5 yearso l d w h o b e e v a l u a t e d a s h a v i n g th ehighestperformance instaffsposition bytheirexperience inmajorsubjectand flexibilityinsolvingcomplexwork.Moreover,theyarenottoooldtocatchthetre ndd e v e l o p i n g economic.Theyhavebothexperienceanddynamic.

Next,thestaffsingroupupper35yearsoldhaveworkedatthecompanyforalong timea n d theya re accustomedt o t h e i r j o b Theya l s o h a v e e x p e r i e n c e i n m a j o r subj ect.Someofthemareevaluatedwithhighperformancebutthesearenotmore.Themostof themare lackofdynamicandspiritintheirwork.Theymaynotbemotivatedtos t r i v e toworkmoreeffici entlyandtheircapacitydependsonrequirementofmanagerso r supervisors.

“Accordingtothisstatisticalnumberisposingathreattocompany,thestaffsleavingfocus onthehighperformancestaffs.It’snecessarytounderstandthecausesofturnoverrateofthestaffpos ition,whythestaffswanttoleavethecompany”,MrsPhanT hi Loi–

AccordingtoB lue do rn 4 turnover isdefinedasp ro cess didnot onlymeanan individuall e f t thecompany.Itmeanttheindividualstoppedp l a y i n g a roleinthec o m p a n y andlefttherelevantareasofthecompany.

Backgroundofthe symptom

Ani n t e r v i e w w a s p e r f o r m e d w i t h d i f f e r e n t g r o u p s o f r e s p o n d e n t , s u c h a s : staffs,leaderswhoarecurrentlyworkingforthecompany,staffsw hoalreadyleft,whointendtoleavecompanybutthendecidedtostay.Lastbutnotleast,HRmanag erwillbet h e onestandingatcompany’soverviewtoprovidetheinformationinthegener al.The qualitativequestionshavebeenusedtoinvestigatetheinterviewees’pointofviewaboutw hat the concernsexistintheorganizationare.

ITstaff,28yearsold,whohadleftcompany1yearago,sharedthat:

“Theunclearjobdescription,Ialwayswasassignedalotofworkbysupervisorandheex plantedto thatbecauseI didworkvery wellandfinished quickly.Ifeltunfairaboutthis.Addition,Ispent2yearsinthecompany,Ididnothavemoreop portunitiestoimprovemyskill.Ineedaworkingenvironmentmoredynamic,creativeandfairer

“Iworkedatthecompanyfor2years.Ididnothavemoreopportunities toimprovem y skill.IamstillyoungandIwanttotakemorechallengetoimprovemyself.Therefore,I needa workingenvironmentmoredynamicandcreative”

AnotherinterviewwaspromotionwithMrDuy- asaleman,32yearsold,whohadleftcompanyfor3year.

Hehadworkedatcompanyfor7years.Healwaystriedhisbestinworkandt akenewchallenges,takingtimetoimprovehismarketingskillforfindingapromotionop po rtu nit y Hewasastaffinthetopbeststaffsofcompanywithhighperformance.Howe ver,hehasnoanyopportunitiestogetahighpositionduringthetimehehadw o r ke d a t t h e c o m p a n y T h e r e f o r e , h e q u i t t e d h i s j o b a t c o m p a n y t o f i n d a n o t h e r c o m p a n y wherehecangetsupervisorpositioneasier.

“DespitehavingallnecessaryrequirementforgettingvicemanagerpositioninF i n a n c e andAccountingDepartment,Istillwasnotappointed.Thispositionwasgivenb y anotherp erson,MrsLinh,whohasgoodrelationshipwithGeneralDirector.Even,shewasnotenough necessaryfactorsforthisposition.Ithinkthatitisaverydifficultf ormetogethighpositio nbecausepromotionappraisalbiasandIunsatisfiedaboutthis”

Asageneralexpression,if staffsknowthattheiropportunity forapromoti ond o e s noteasilycomebybiasfactor,theywillnotsatisfyintheirwork.Thatisalsother e a s o n whytheyintendedtosearchforanotherjoboutsideofcompany.

Anothercauseforturnoverrate ofstaffp o s i t i o n iscompensation andbene fit.S al ar y payingbasesposition,educationallevelandseniority(employeehasspenttimea t thecompanymoreorless).Therefore,thestaffshaveshortseniorityispaidlowera lthoughtheyaree v a l u a t e d higherperformance It i s seenth at whythehighperfor mancestaffsoftencomparetheirsalarywithotherstaffswhogetsalaryhigherb u t lo wperformancebecauseoftheirlongseniority.Theyfeelunfairforthis.

ITstaff,28yearsold,whohadleftcompany1yearago,sharedthat:

Ihadworkedatcompanyfor2years,mysalaryislowerthan3otherstaffsinm y fu nctionalDepartment,thesestaffsspentmore6yearsatthecompanyalthoughmyworkismoreth antheirsandmyperformanceisalsohigherverymuch.

MrsLuongThiMyChi,accountant,50yearsold,hasworkedatcompanyfor2 5 yearssaidthat:

Shew a n t s t o k e e p a s t a b l e w o r k r a t h e r t h a n t a k e a n e w c h a l l e n g e t o g e t a promot io n opportunity.Sheknowscertainlythatshehasnoopportunityforhe rpromotion becauseof company’spolicy Sheis toooldto findanother jobbetter easily.Moreover,s h e h a s w o r k e d a t t h e c o m p a n y f o r 25y e a r s , s o s h e c a n g e t h i g h s a l a r y beca use company’ssalarypayingbaseonthetimeworkingforthecom panymoreorles s S h e i s s a t i s f i e d w i t h h e r c u r r e n t j o b T h e r e f o r e , s h e j u s t c o m p l e t e d h e r t a s k a s a c c e p t a b l e levelratherthantakingtimetoinvestigatethenewthings.

Addition,anothercauseaboutbenefit, thestaffsnearlyhavenoanyano p p o r t u n i t y fortheirpromotionbecauseofpromotionappraisalbiaswhilesalaryandb e n e f i t policyhaveverylargeintervalbetweenstaffpositionandsupervisorposition.

“Salaryp a y i n g b a s e s p o s i t i o n isn e c e s s a r y b e c a u s e o f s u p e r v i s o r ’ s r esponsibilitybutintervalissolargebetweenstaffsandsupervisors,5timeshighert h a t s h o u l d bec a r e A d d i t i o n , b e n e f i t i s a l s o , s u p e r v i s o r positionw i t h c o m p a n y ` s welfarestateisannualtravelingabroad(Japan,Korea,Australia)whilestaffpositi onistravelingdomestic(Dalat,MuiNe,VungTau)”

Mr.Trung– quitthejob,said“Besidethepaperworkatcompany,Imustgoouttowiththecustomeruntilt henight,goforadrinkwiththem.Idrankeveryday,feltverytiredandhadnotimeto careformyfamily.IrealizedthatIneedtochangemyjobtoprotectmyhealthandcarefor myfamily.”

“Companyw a s f a c i n g r e s o u r c e t h e h i g h p e r f o r m a n c e s t a f f s d e c i d e t o l e a v e w it h h i g h t u r n o v e r r a t e w h i l e c u r r e n t s t a f f s a r e n o t h i g h p e r f o r m a n c e a n d passivea t ti t u d e work,theyjustwanttomaintainthecurrentworkingwayrath erthanactivelyimproveandperformthenewandbetterone Theyare satisfiedwiththeircurrentjobsa n d behaviors,orinanotherway,theytendstomainta intheircurrentworkingstylewithoutanysignificantimprovement.T h i s problemposesa threattothecompany’sm i s s i o n togrowinnexttime”

10 perfectly.Theyfeelembarrassedwhentheyareassignedmoretasks,thesebehavior sma y beknownas apassiveinvolvement ingroup workas theytendedtorejectn ewta sk andprotecttheirbenefit.Addition,itishardtofindoutthesuitablecandidateto replacef or t h e s t a f f s l e f t A s a res ul t, w o rk i n g q u a l i t y o f P&Df u n c t i o n a l te am w a s decreasedduringaperiodoftime.

PROBLEMINDENTIFICATION

Unfairassignedworkloadtostaffofsupervisor

Thehighperformance staffsoftenclaimedisthattheyareassignedworkloads omuchbysupervisor.Theyhadcoveredmultipletasksbutthebenefitreceivedisu n c h a n g e d Itmeansthat otherstaffs offunctional teams cannotmeetthe requiredworke f f e c t i v e n e s s ability,fromthat,theexistingthehighperformancest affshavetocoverf o r theworkloadoftheteam.Thisisoneofthemainkeyreasonleadtot heteamspiritissueandthestaffsaredissatisfactionaboutthis.Theyalsocomplainthatsu pervisorisu n fa i r assignedtaskforthem.Addition,theyalsothinkthatsupervisorsee mlikethema s atooltohelphimcompletehisworkthanasastaff.

Addition, givingthe staff highworkload, themanagerjustassignedtothosewhomtheyt h i n k t h a t theyc a n s o l v e t h e j o b q u i c k l y a n d s h o w t h e i r t a l e n t However,e v e n talentswouldcompletethehugeworkloadwith theirefforts,butifthesituationlastedl o n g , theirspirit wouldbedownand theywouldf eeltheunfairness, then theywoulddecidetoleavethecompany.

MrNguyenT h e Anh,I T st af fs, 30 yearsold,he leftthecompany oneyeara g o shar ethat

Hehadworkedatthecompanyfor3years,duringthisperiodoftime,healwaysh a d c o v e r e d m u l t i p l e t a s k s t h a n o t h e r s s t a f f s o f t e a m b e c a u s e h e c o u l d h a d f i n i s h e d supervisor’srequirementquicklyane x a c t l y H e h a dt o s u r f h i s w o r k ’ s c h a l l e n g e s h i m s e l f withoutanyhelpofsupervisororotherstaffsofteam.Themorehedid well,themoretaskshegotbutthebenefitreceivedwasunchanged.Healsoexpected hiseffortwasr e c o g n i z e d a n d s a l a r y i s p a i d w o r t h i l y w i t h h i s p e r f o r m a n c e b u t h e d i d n o t g e t anything.

TechnologyDepartmenthasfivestaffs,onlytwoofallareevaluatedhighperf ormance.T h e s e t w o s t a f f s a r e y o u n g a n d v e r y a c t i v e , t h e y a r e e a s y toa p p r o a c h taskswithhighrequirementandoftenhavegoodideastoimprovetheirjobwhileothers taffsofteamisdotheirworkfollowtosupervisor’sinstruction Therefore,Ih a v e toa s s i g n taskstothehighperformancestaffsmorethantheotherstaffs.Ialwaysevaluatet hemverygoodbutIcannotdecidetheirsalary.

AccordingtoMinetal 5 ,lackofclosepersonalinteractionleadstolackofemotionala t t a c h m e n t a n d l o y a l t y t o t h e o r g a n i z a t i o n s , t h e r e b y i n c r e a s i n g e m p l o y e e turnover.Supervisorsn e e d t o ha v e m o r e o b j e c t i v e a s s e s s m e n t o n a s s i g n t a s k p r o c es s a n d interactwiththeirstaffsmorefrequently.

AccordingtoH a c k m a n & O l d h a m ’ s J o b C h a r a c t e r i s t i c s M o d e l 6 ,t h e r e a s o n s thattheyleavethejobsaretheylackofinternalworkmotivation,jobsatisfactionandl o w workeffectiveness.Internalworkmotivationmaycomefromcoworkers,managers,g l o b a l team,andregionalteam.Ifemployeescanfeelthemotivationthroughouttheirw o r k s everyday,itshouldbethebigmotivationforthemtocontinuecontributingtothecompany.W hentheylosethe motivation, theywouldnot satisfywith theircurrenttasksa n d jo bs, l e a d i n g t o th e l o w w o r k e ff ect iv eness A t t h es t a g e of performingn o t we ll , theyactivelyasktoleavethecompanyortheywillbefiredpassively.

Jacksonetal 7stated thattheroleo f payinattracting andretaining peopleatw ork hasbeenrecognizedformanydecadesandisincreasinglyimportantintoday’s c o m p e t i t i v e , economicenvironmentwherestrategiccompensationplanningisneeded.

 Thef i r s t c a u s e r e l a t e d t o u n f a i r payingsalarya n d b e n e f i t i s l a c k o f r e c o g n i t i o n totalentstaffsandpayingnotbasedonperformanceisreason whytalents t a f f s decidedtoleave.

MrNguyenVanThanh- technologystaff,30yearsold,whohadleftcompany1yearago,sharedthat:

“Ihadworkedatcompanyfor2years,mysalaryislowerthan3otherstaffs,w e atthesamefunctionalteam,thesameposition,thesameeducationallevelbuttheyh a v e sp entmore10yearsatthecompanywhileIspentfor2year.Despiteofmyworkismore thantheirs andmyperformance isalsohigher verymuch I thinkthat I didnotrecognizeandunfairpaying”

28ages,theythoughtthattheirperformanceish i g h e r thantheotherstaffswhiletheir salaryislowerbecausecurrentlysalarypayingp o l i c y notbasedonperformanceotherwises eniorityrelatedpay.

Interviewwith4currentstaffswhohaveworkedformorethan15years,alloft h em aremore40yearsold.Theyareconfessionsthattheydidnotfeelinterestedinw o r k an ddecreasedtheirenthusiasmwithcurrentwork.Theythinkthattheyareoldtog e t n e w c h a l l e n g e a n d t h e y h a v e a l s o l o s t m o t i v a t i o n A l t h o u g h theyj ust c o m p l e t e th ei r task asacceptablelevel,theystillkeep stable salarypaying.Addition, everyafter3 yearstheyw i l l b e i n c r e a s e d salaryl e v e l T h i s i s a keyr ea s o n c r e a t e c o m p a r i s o n betweenstaffswhohaveshortseniorityandlongseniority.

MrsLuongThiMyChi,accountant,48yearsold,hasworkedatcompanyfor20 yearssaidthat“Sheistoooldtofindanotherjobbettereasily.Moreover,shehas workedatthecompanyfor 20years,soshecangethighsalarybecausecompany

’ssalarypayingbaseon thetimeworkingfor the companymore orless Shesati sfiedwithhercurrentjob.Therefore,shejustcompletedhertaskasacceptablelevelrath erthantakingtimetoinvestigatethenewthings.

Ont h e o t h e r h a n d , thetalents t a f f s a l s o t e n d t o c o m p a r e w i t h o t h e r c o m p a n i e s paying,especialisthestaffs ingroupfromlower35agebecausetheythinkthat witht heir ability,theycanearnmorethanthecurrent one.Therefore,whentheyreceivedtheo f f e r withbettercompensationandbenefitsfromot hercompanies,theyalreadyleftthecompany.

Ifemployeesfeel thattheyarenotvaluedfortheircontributions orrewarded,theirc o m m i t m e n t maybethreatened.Carraher8p r o v i d e d thatthereisarelat ionshipbetweenp ay satisfactionandturnover.

Therearesomecommonreasonsthatthetalentstaffsleftthecompany.Promotiona p p r a i s a l favoritismisoneoffactorsthataffecttotheintentiontoquitthejobofstaffpositi on,e s p e c i a l t o t h e h i g h p e r f o r m a n c e s t a f f s T h e y alwayss t r i v e f o r e x c e l l e n t i n t h e i r w o r k tol o o k i n g f o r a promotiono p p o r t u n i t y b e c a u s e theyt h i n k t h a t a h i g h performancee v a l u a t i o n isa p o t e n t i a l f a c t o r f o r p r o m o t i o n o p p o r t u n i t y H o w e v e r , insomecases,promotionappraisalignorehighperformancefactor, onlytakingcareonef a c t o r i s w h o a r e a p p o i n t e d toh i g h p o s i t i o n h o w they h a v e g o o d r e l a t i o n s h i p w i t h G e n e r a l Directororwhohaspositioninthecompany. Gettingpromotioninjobisthemostimportantofeveryover- achievedemployee.J o b promotionshowstheachievementofsuccessincareerlifeof employee.Whenano v e r - a c h i e v e d staffispromoted,theyfeelproudofthemselfandfeelthatthecompanya c k n o w l e d g e andthankyoufortheircontributionandperformance.

MrDuy-asaleman,32yearsold, whohas workatthecompanyfor 7years.Heintendstoleavecompany,sharethat:

Hehadworkedatcompanyfor7years.Healwaystriedhisbestinworkandt akenewchallenges,takingtimetoimprovehismarketingskillforfindingapromoti onopportunity.Hewasastaffat thetopbeststaffsofcompanywithveryhighperfo rma nce However, h i s promotiono pportunitywillnever c o m e t o himb e c a u s e thissupervisorpos it io ni sd on at ed f or an ot her o n e HR ma na gere xp la ine dt o thatt h i s supervisorposition is more suitable forwho havegoodrelationship with generalDirectorandheshouldwaitforanotheropportunity.Therefore,hequittedhisj obatcompanytofindanothercompanywherehecangetsupervisorpositioneasier.

Khan 9also showedthesameresultthatemployees'satisfactionandcommitment areaffectedbythebiasandfeelingsofsomemanagers,whichthencausestoincreaseemplo yeeturnoverrate.

AnotherinterviewwithMrsTranThiSinh- accountant,32years,hasworkedfor 8years.

Sheclaimedisthatshehaslostmotivationinherjobsciencesomestaffswereap pointed tohighpositionthatwasdidnotbaseonanyevaluatedcriteria.Itisnotfa i r forstaffswhotriedtheirbesttofindoutapromotionopportunity.Therefore,shew il l notg etinvolvedinjobactivelyandacceptwithhercurrentjobs,onlyfinishhertaskataverage withoutconsideringwhichisgoodforhercareerdevelopmentornot.

Asageneralex pr ess io n, ifsta ff s knowthattheirpromotion opportunit ydoesn o t easilycomebybias,theywillnotsatisfyintheirwork.Allofstaffsareaware ofth is f act, th e b e s t sta ff sde ci ded t o fi nd a n o t h e r op po rt un it y outsideof t h e c ompanyw h i l e otherstaffsstillaccepttodotheirjobatthecompanybecausetheycann otfindanyotherbetterjobtomove.However,theywillhavepassiveattitudeintheir workb ecau se theythinkthattheireffortarenotrecognizedinthegrowthoforganizationando p p o r t u n i t y forapromotiondoesnoteasilycome.

Ryanetal 10 ,therearetwokindsofmotivation,whichareintrinsicmotivation, inwhichthepersonalefforttodosomethingsinceitisreallyinteresting,andextrinsicm o t i v a t i o n , whichreferstodosomethingbecauseofotherbenefit.

Thehighper fo rm an ce s t a f f s andthe youngsta ff s tendt o developth emse l ves whil etheyhavetodothesameworkdaybyday.Thefactisthattheyfeelboredwhenp erformingarepeatedlistofactionsintheirdailywork.Theythinkthatwiththeirskill,theycando better.Therefore,theyneedamorechallengeworkingenvironment toshowt h ei r powerorstrengthandimprovetheirweakness.Lesschancetohavepromoti onortoexpandworkingexperienceisonereasonoflowengagementofthebeststaffs.

MrNguyenHoaiNam,anelectricalengineer,26yearsoldsaidthat:“Iworkedatthecompan yfor 2 years.I did not havemoreopportunities toimprovemyskill IamstillyoungandI w a n t t o t a k e m o r e c h a l l e n g e t o i m p r o v e m y s e l f Therefore,I n e e d a w o r k i n g environmentm o r e dynamicandcreative”

Ontheotherhand,thestaffsingroupupper35yearsoldadmitthattheydid notfeelinterestedinworkastheydosimilarjobdayby day.Itdecreasedtheirenthusiasmwithc u r r e n t workandcreatedbarriertoacceptnewthing. Theythinkthatwiththeirskillandtheiroldage,theyhardtofindoutachancetogetpromotedor anotherjobbetter.Theyacceptt h e i r c u r r e n t w o r k a n d t h e y a r e n o t w i l l i n g t o t a k e t h e c h a l l e n g e t o i m p r o v e themselves.

Shef e e l c o n f u s e d w h e n w a s a s k e d a b o u t h e r p e r s o n a l g o a l d e v e l o p m e n t a n d whetheritisinlinewithcompanygoalor not.Inheropinion,shealwaysthinksthatsheis oldtoca t c h u pwithm o d e r n w orki ng style as using technological softwarefor her work.T h a t m e a n s s h e j u s t w a n t t o m a i n t a i n t h e c u r r e n t w o r k i n g w a y r a t h e r t h a n a c t i v e l y i m p r o v e a n d p e r f o r m t h e n e w a n d b e t t e r o n e A l t h o u g h s h e f e e l b o r e d w h e n repeatedlistofa c t i o n s inh e r dailywork,s h e i s n o t w i l l i n g t o t a k e t h e c h a l l e n g e t o i mproveherself.Shealsoexplainedthatshehastobalanceherwork-lifesuchas familyc a r e soshedoesn’thavemoretimeforherworkingimprovement”

Regardingtorepeatand boringwork,it isnotakeyfactorleadingtohighturnovero f staffsi n company.T h e similarj o b daybydaycanc r e a t e boringw o r k a t t i t u d e f o r s t a f f s However,thisbelongstohumanpsychologyandisp roblem formanycompanies,n o t justoneTinNghiacompanysothisissuecannotbesolvedimmediat ely.Moreover,theycana c c e p t t h i s f a c t a s a normals i t u a t i o n b e c a u s e theyhave t o e a r n m o n e y a n d supporttheirfamily.Theyalsowanta suitablejobmorethanchangetheirjobregularly.Infact,notmanybeststaffsleavejobsbeca useofrepeatedlistofactionsintheirdailyw o r k itselfonly.

Highturnoverrateofstaffsfocuson2maingroupsincluding: group23- 28ageandg r o u p 29-35age.Thesegroupshavemanystaffsareevaluatedhighperformance

(Figure4 ) Theyplayanimportantroleinbusinessoperationbecausetheysatisfyallw orkingsupervisor’srequirementperfectly,theyaregoodatmajorsubjectandtheirsoluti oninw o r k quicklyandexactlywhiletheotherstaffscannotcatchtheworkingpace.C o m p a n y wasfacingtalentstaffsdecidetoleavewhilethecurrentstaffscannotsatisfysup ervisor’sworkingrequirement.This problemcouldhaveseriousimpactoncompanyactivitiesbecauseofreducingperformancee fficiency.Inaddition,itishardtofindoutt h e suitablecandidateforthevacancy.Therefore ,functionalteamshavetofulfillb u s i n e s s corerequirementandprioritizesomeoftherequestsw hilerefusingtaskswhichtheycannottakeoverall.Thismeanisthecurrentworkloadduetolackof peopleinthefunctionalteam.Asaresult,itaffectstoproductionlineofthecompanyandleadstola tethedeadlineforworkingprogress.

Recentlyhisteamfacedthebiggestproblemisthreestaffsofhisteamhadleftwh il et h e c u r r e n t s t a f f s c a n n o t c a t c h thew o r k i n g p a c e a n d r e s p o n s e r e q u i r e m e n t perfectly.Theyfeelembarrassedwhentheyareassignedmoretasks ,thesebehaviorsma y beknownas apassiveinvolvement ingroup workas theyte ndedtorejectnewt askandprotecttheirbenefit.Addition,itishardtofindoutthesuit ablecandidatetoreplaceforthel e f t staffs.Asa result,workingqualityofP&Dfunctionalt e a m wasd e c r e a s e d duringaperiodoftime.

Simonsetal 11also foundthatturnoverdrivesoutprofits,manyofthespecified costsderivefromproductivitylossesthataredifficulttoestimate.

Addition,turnoverratecouldincreasecostofrecruitmentandtrainingnewem ployees.LashleyC12mentioned

03typesofdirectcostswhenreplacingstaffincluding:theco stofdiscontinuingofanexistinge m p l o y e e , t h e c o s t o f f i n d i n g a replacement,thecostofbringingthenewcomersintocompanyandtrainingthemtofulle f f e c t i v e n e s s Laurie13indicated thatwhenastaffquit,thereplacementcostarise.

Thec a u s e s o f h i g h t u r n o v e r r a t e i n T i n N g h i a C o m p a n y w e r e i n v e s t i g a t e d a n d confirmedt h r o u g h i n t e r v i e w s w i t h e m p l o y e e s f r o m 2 g r o u p s : f i r s t g r o u p : m a n a g e r s / s u p e r v i s o r s ; s e c o n d g r o u p : s t a f f s w ho ha d l e f t t h e company T he re is d u pl i c at io n intheircommentsandtheyarevalidatedbyavailableresearchtoconfirm th eexistenceofpotentialcausesleadingtohighturnoverrateoftalentstaffsprobleminTinNghi aCompany.Datawerecollectedfrominterviewresults:

No Question Thefirstgroup: managers/supervisors Secondgroup:staffswhohadlef tthecompany

 Payingsalarynotbasedonperf ormance.Wewereassignedalargeofw orkloadandwereevaluatedhighperfo rmancebutoursalaryandbenefitislow erthanotherstaffsbecauseoflowersen iority.

Basedo n d a t a w e r e c o l l e c t e d f r o m i n t e r v i e w r e s u l t s a n d s e c o n d a r y d a t a fromHumanR e s o u r c e s d e p a r t m e n t , i t c a n b e s e e n t h a t t h e main c a u s e s l e a d i n g t o h i g h turnoverrateofthetalents t a f f s a n d passivea t t i t u d e i n w o r k ofc u r r e n t s t a f f s a r e :p r o m o t i o n appraisalbiasandpayingsalarynotbasedo nperformance.

Basedontheimpactofproblem,mostofintervieweesrevealedthatt h e y careofdealing withperformancerelatedp a y a n d interviewresultsalsoshowedthatpayingsalaryandbenefit policynotbasedonperformanceispotentialcauseleadingt o highturnoverrateatthecompanyin severalyears,problemismajorlyresolved.

Ontheotherhand,payingsalarynotbasedonperformancebutbasedonposition,additi on,p o s i t i o n r e l a t e d payingt a k e s m o r e o f t o t a l i n c o m e w h i l e p r o m o t i o n o p p o r t u n i t y for thetalent staffwillnevercome.Therefore,thetalentstaffstendto leavethecompanyandcurrentstaffsispassiveattitudetotheirwork.

 Regardingtopromotionappraisalbias,inthisfactorhaseffectonthehigh turnoverrateoftalentstaffs,whotookpartinthein- depthinterviewstatedthatthek e y reasonleadingtoquittheirjobisrelatedonpromotionappraisa l bias.Theysaidthattheywereverygoodatin theirworkandbe valuatedhighperformancebuttheywillnoth av eanyopportunitiesfortheirpromotionbecaus etheyknowwellthatsomestaffsgeth i g h positionwithone reasonisthesepeopleha vegoodrelationshipwithDirectororan y personwhohavehighpositioninthecompany.

AccordingtoMrsTranThiNgocNgan,ageneralaccountant,35yearsold,hadleftcompany 5yearsago.SheworkedatTinNghiaCompanyfor10yearssharedthat:

Promotionopportunitywillnevercometomebybias.Supervisoralwaysassigneda l a r g e o f w o r k l o a d tot a l e n t s t a f f s I a ls o , I h a v e t o co v er n e a r l y a l l o f w or k l o a d offi nancialt e a m whichbelongtosupervisor’sresponsibilityb u t mys a l a r y i s a t 1 / 3 supe rvisor’s.Addition,benefiteveryyear,supervisorwilltravelingtoabroadKorea,J a p a n , Chi na,Australiawhilestaffst r a v e l toVungTau,DaLat,MuiNe.

Intervieww i t h 3 s t a f f s ofS a l e D e p a r t m e n t , a f u n c t i o n a l t e a m abo ut t h e i rpr omotionopportunityt og e t h i g h e r p o s i t i o n a n d a s a r e s u l t f o r t h i s i n t e r v i e w i s a n an s w e r atthesame:“Wewillneverhaveanyopportunitiestopromotehigherpositi onb e c a u s e t h i s p o s i t i o n w i l l b e p u t f o r n e p h e w o f m a r k e t i n g M a n a g e r T heya r e s h a r e more:“ifwewanttogethigherpositionwehavetofindanothercompany”

Neziree t a l 14s t a t e d t h a t f a v o r i t i s m is a n a t u r a l p h e n o m e n o n w h i c h e x i s t s i n everyc o m p a n y T h e r e f o r e , j o b p r o m o t i o n f a v o r i t i s m isveryd i f f i c u l t t o s o l v e immediately.

Thetalentstaffsoftencomplainedthattheywereassignedalargeoftaskbysuperviso r,buttheirsalaryandbenefitunchanged.Theyalsocomparewithhighsenioritys t a f f s aboutsalary ,benefitandworkloadallocation.

Currently,p a y i n g salarypolicyf o r i n d i r e c t employee( d i r e c t o r / m a n a g e r / supervisor/ staffoffunctionaldepartment)ispaidincluding3elements:position,e d u c a t i o n levelandsen iority(howlonghasemployeebeenthecompany).Positiontakesmoreoftotalincome,nextedu cationalqualification,finallyexperience workingtime,notb a s e d o n p e r f o r m a n c e T h e r e f o r e , t h e h i g h performancestaffs whoa r e l o w s e n i o r i t y alwaysfeelunfairabouttheirsalary.Thetrustis,theycomparewit hotherstaffsarepaidh i g h e r salarylevelbutlowerperformance.

(Source:HumanResourceDepartment) MrNguyenVanThanh- technologystaff,30yearsold,hadleftcompany1yeara g o , sharedthat:

“Ihadworkedatcompanyfor2years,mysalaryislowerthan3otherstaffs,w e a t t h e s a m e f u n c t i o n a l t e a m , t h e s a m e p o s i t i o n , t h e s a m e e d u c a t i o n a l l e v e l b u t t h e y havespentmore10yearsatthecompanywhileIspentfor2year.Despiteofmyw orkismorethantheirsandmyperformanceisalsohigherverymuch.IthinkthatId i d notr ecognizeandunfairpaying”

Theyfeelliketheyarepaidunfair.Theyhaveworkedsohardandcontributedtheirt i m e ande ffortsintothecurrentworks,andevencoverforlowperformancestaffs.Theyp e r f o r m muchex cessthanthepaythattheygetandtheyfeelunfairatthattime.

Mowdayetal15s t a t e d thatEmployeeTurnoveroccurswhenindividualsperceive thattheircontributions toanorganizationexceed theinducementstheyreceivedfro mt h a t organization.Accordingtothistheory,staffsarelookingfromtheorganizati ontop r o v i d e incentivethatbalance theircontribution.Whenastaffcannotgetsa tisfaction,h e / sh e quithis/herjobfromorganization.

DatawascollectedfromthestaffsareworkingatTinNghiaCompany.Thesec u r r e n t st affsfocusonwhoareup35yearsoldandsenioritymorethan10years(thethirdgroup)showedthat itlikestrongproofaboutpayingsalaryandbenefitwhichnotb a s e d onperformanceleadingtoco mpareanddecidetoleavetheTinNghiacompanyo f talentstaff.

Chi,accountant,48ye arsold,hasworkedatc ompanyfor 25years.

2.MrsNguyenThiPhuo ng,administrationstaff, 45yearsold,hasworkedf o r 20years.

MrLeVanNga,sa lema n,50yearsold,h a s work edatcompanyfor 20years.

01 1.Iknowthatyouh avespentmoreti meatTinNghiaCo mpany.Do yousa tisfyyourcurrentj ob?

Addition,Iworkedatt h e companyfor20years, mysalaryishigherwhic hIcanl o ok foranother company

Notexactly.Dailyrepeat edworkingmakemebori ngbutIcannotfindoutan otherj o b better.Moreov er,Ihaveworkedattheco mpanyfor20years,s o

Notexactly.Icannotfin danotherjobbettera nd s uitablewithmyage.

Promotion appraisalbias