The problems coca cola vietnam is facing

As a consultant on human resource management for the company, from the problem and operations of human resource management identified in question 2, evaluate the human resource situation

BỘ GIÁO DỤC & ĐÀO TẠO

TRƯỜNG ĐẠI HỌC KINH TẾ TP.HCM

MÔN HỌC: Human Resources Mangement

GVHD: Phan Quốc Tấn SV: Phan Văn Huân Lớp: ADC06 MSSV: 31201021063

Mục lục

I The problems Coca-Cola Vietnam is facing 3

II The theoretical basis of relevant human resource management operations in the case 4

1 Compensation and benefits 4

2 Employee Retention 8

3 Training and developments 11

III Solutions 14

REFERENCES 18

Đề bài:

Questions:

1.What is the problem that the company is facing? Identify human resource

management operations that affect the company's situation

2 Presenting the theoretical basis of relevant human resource management operations

in the case

3 As a consultant on human resource management for the company, from the problem and operations of human resource management identified in question 2, evaluate the human resource situation as well as the human resource management operations of the company, thereby proposing solutions

I The problems Coca-Cola Vietnam is facing

The first problem that Coca-Cola Vietnam encountered may be attributed to the whole situation as the leading cause, and that’s Coca-Cola having a hard time retaining its employees, quoted in the paragraph “the number of employees resigning the company is up to 9% per year” A number like that is quite alarming, especially for

a company with such a vast scale, if not one of the biggest names in the worldwide industry This problem arises as a consequence of bad compensation and benefits policy, which can be seen in the salary rate offered by the company (6 - 7.5 mil VND for a normal employee, 8 - 10 mil VND for professionals with 4 years of experience or more) Not only that, the benefit of being promoted to a higher position is hard to attain because Coca-Cola hasn’t focused on this aspect adequately, leading to many employees leaving the company in the hope to find themself being valued by another company The management is emotional, not complying with any managerial framework which causes a bad impression of employees toward management Also, one more bad hint can be pointed out is that leaders still think of employees as cost, not something to invest in, a conservative point of view that make employees feel like they aren’t appreciated, which is one of the causes for the high quitting job rate The relevant HRM operations, in this case, are Compensation and benefits and Retaining Employees

The second problem is business performance, as it seems, from the year 2018 to

2020, the Profit and Loss statement in these 3 different periods shows no

improvement, which affects significantly the company’s prospects, worries the shareholders, and in the verge of losing the market shares This problem comes from the departure of key members of the company, alongside their customers which pose a threat to a setback compared to other competitors, most noticeably Pepsi Co The relevant HRM operation for this case is Retaining Employees

And the final problem here is the training program It takes too many resources from the company but still doesn’t meet the expectation of managers, because new staffs adapt to their work slowly For a giant name like Coca-Cola, high demand from the customers can only be met by the professionals, which many newcomers can not afford, leading to uncertain business results and growing vulnerability to the market environment

The relevant HRM operation for this case is Training and Development

So after going through 3 problems that Coca-Cola is having, we extract 3 mains Human Resources Management activities, and those are Compensation and benefits, Retaining Employees, and Training & Development We will go into detail about all

3 categories in the next section

II The theoretical basis of relevant human

resource management operations in the

case.

1 Compensation and benefits

Compensation and benefits are the rewards that a firm delivers to its employees in exchange for their efforts As a result, compensation and benefits are a crucial component of human resource management Compensation and benefits are two separate concepts Pay is a crucial part of any profession The first thing anybody thinks about when they get a job offer is the money Whether the compensation is listed as hourly, weekly, monthly, or hourly, candidates consider it to be the most crucial part of any job offer Compensation is more than just a monthly salary Benefits apply to indirect pay This can include health insurance, stock options, or any number of other employee benefits There are essentially 3 types of compensation package that contain elements contributed to total rewards systems : non – monetary, indirect and direct

- Non-monetary compensation is any benefit received by an employee from an employer or work that does not have a monetary value Job stability, flexible hours, opportunity for growth, praise and recognition, task satisfaction, and social relationships are all examples of this

- Direct compensation would comprise an employee's base paycheck, which may be an annual salary or an hourly wage, as well as any performance-based pay, such as profit-sharing incentives

- Indirect compensation is much more diverse It includes everything from legally mandated public protection programs like Social Security to health insurance, retirement plans, paid leave, child care, and moving costs

So why compensation and benefits in HRM operations are so important ?

- Attracting talents: People are constantly attempting to place themselves in the best financial position possible Those worth a certain amount of money are often aware of their worth and will seek employment that adequately compensates them Examine the pay and benefits packages provided by your competitors To attract top candidates, a company should offer a comparable compensation package to potential employees By doing that, you give your potential candidate a sense of being valued and respected, thus increase the chance to secure wanted talents for your organization

- Employee Engagement: Paying employees fairly shows that you value them

as employees and as people When employees feel valued, they are more likely

to come to work Furthermore, improved company morale motivates people to commit more to their job, thus significantly boost the performance

- Boost productivity: Employees who are happy are more productive

Employees who feel valued are more motivated and loyal, resulting in higher productivity They are more motivated to do a good job, but also learn and become more efficient as they work for the company for a longer period of time

- Job Satisfaction: A satisfied employee is always valuable to an organization since he or she strives to do their best Every employee desires a solid

professional development and work-life balance at the company If a person is satisfied with their company and their job, they will make every attempt to contribute back to the organization

- Employee Loyalty: Employees who are well compensated are more likely to stay with a company Employees who are well compensated are more likely to stay with their companies Loyalty relieves business owners of the need to spend time, money, and energy on recruiting new employees Employers who create a well-trained workforce benefit from high employee retention and low turnover rate

All of this benefits, whether the company can gain, even magnify it or not, depend entirely on the HR Departments, who’s mainly responsible for this job So how HR can arrange and calculate Compensation and benefits for a company First and foremost, we have to consider the most important factor, and that’s not to damage the company’s overall finacial health by offer extravagant compensation package Incentive is one thing needed to be carefully calculated, as a manager have to question himself to establish the right number that sastified two sides of stakeholder : the employees and the shareholders

While governments establish a minimum wage, businesses are generally free to set their own wages However, it would be difficult to find an accountant for minimum wage Instead, you must pay the market rate

There really are market rates for each position, but finding these can be challenging because people are rarely honest about their earnings A compensation specialist will use salary surveys to assist her calculate a market rate In a wage survey, many businesses are requested to provide their compensation data for positions The information is then anonymized and resold to businesses A company can then determine that the average rate for a junior accountant is $X and the average rate for a marketing manager is $Y

Because positions differ from one another, you cannot simply look at a salary survey and base all of your salaries on the average salary for someone with that title A

marketing manager at a Fortune 500 company will have a very different job description than a marketing manager at a small business of 25 people

Compensation managers will determine not only the ideal salary for a position, but also a salary range for that position Different candidates offer different skills and value, so it doesn’t make sense to pay everyone the same amount Someone with greater experience and superior talents than another may be entitled to a higher wage

It can also be difficult to determine where someone falls within that salary range Compensation managers frequently employ statistical tools, such as regression analysis, to determine an appropriate salary package The variables that can be used in the regression include:

1 Years of experience

2 How long has the employee been with organization?

3 How long has the employee been on that position?

4 Current salary

5 Job performance ratings

6 Degree

7 Employee location

Different employees have different skills, capabilities, education, and levels of creativity Paying the same salary to all employees in the same position in the same company is now completely absurd It would demoralize a person with five years of experience who has a different level of expertise for the same profile In addition, his salary will be increased based on his experience The managers in charge of the company's compensation set the salary bracket, basic pay, and monthly take-home pay The variable components of a salary usually change based on performance The final combination model includes all other benefits such as health, life insurance, stocks, incentive structure, company pick up and drop service, company retirement benefits, and so on

2 Employee Retention

Definition: Organizations must retain their top personnel in order to grow Employee retention aims to achieve this Employee retention refers to the strategies that a company creates to reduce employee turnover risks, as well as the processes that it implements to retain important personnel Employee retention is a major issue for businesses and HR departments nowadays

People leave their occupations for a variety of reasons Some are voluntary, such as changing jobs, while others are not, such as being laid off Employee retention methods prioritize voluntary turnover that is harmful to the organization over the loss

of a poor performer It also focuses on avoidable turnover, such as an employee leaving their position to relocate out-of-state

Employee retention has become one of the most focusing aspect in HRM, as firms are

in collective movement toward an environment where employees are treated like assets, not cost With people moving out of and across industries, there are more job openings Employees who are considered to be happy and engaged may be tempted by greener pastures Which means, employers must be more thoughtful and creative than ever in retaining the talent they have already invested in hiring and training, developing skills to fill critical gaps, and attracting new people So important as it is, the benefits accompanied with employee retention are even more captivating and naming just a few like:

- Cost reduction : Replacing an employee can cost up to twice as much as the employee's annual salary Some of these expenses are incurred as a result of advertising the job opening, interviewing and screening candidates, as well as onboarding and training new employees Other costs include lost productivity, team morale, and customer service or sales issues That’s why a better approach would be to invest in employee retention and develop better management strategies Organizations can reduce costly attrition by shifting HR budgets away from recruitment and toward people and leadership development, as well

as employee satisfaction

- Boost employee motivation: Aside from the obvious costs of attrition, hidden costs such as the impact on morale are difficult to quantify but no less important The departure of good people places an unnecessary burden on remaining employees, who must absorb the additional workload Employee attrition frequently causes a ripple effect in which remaining employees question whether they, too, should leave, exacerbating the problem Employers can improve employee morale, enable greater connectedness and engagement, and create more positive workplace environments by focusing on retention and engagement strategies

- Improve customer experience and drive revenue: Retaining good employees

in customer-facing roles will improve customer relations Customers develop trust and even friendship with their primary contacts in an organization over time Hiring new employees to take their place takes time, and rebuilding customer trust takes even longer Furthermore, as they ramp up in their roles, new employees may take longer to complete tasks or be more prone to customer service errors, which can degrade the customer experience As a result, when good employees leave, customers may consider leaving as well, lowering the bottom line Worse, they may post their negative experiences online, jeopardizing the company's entire reputation

- Strengthen company culture: Culture is critical in both hiring and retaining valuable employees Organizations can build a more wholesome company culture and ultimately increase the value of their business by developing good employee retention strategies Employees who are engaged with an

organization's culture have longer tenures and help to strengthen the

organizational culture, which promotes positivity throughout the organization When aproaching to Employee Retention Strategy, we have to figure out first the reason why people left By handling employee counseling and survey form to whoever decides to quit the job, interesting information can be drawn out and one of the most common theme is money Not that suprising as according to a survey conducted by Robert Hald, 65% of workers quit their job because they feel like their current salary is not enough for their need, and they want to fill their requirement on

another company Apart from that, many reason can be named: overwhelm by the workload, stressful environment, boredom, lack of recognition, dissatify with the working culture, limited career advancement opportunity,… Having understand the causes, employers can design suitable plan to keep their employees, sastify their need

in accordance to the goals of company Here are some of renowed strategies that have been effeciently put into practice:

- Create a culture of recognition: People who believe their employer's

recognition strategy meets their needs are seven times more likely to be actively engaged at work As a result, it is clear that employees require more than just a paycheck They could get that anywhere, after all While you may be tempted to invest in a costly new platform, the solution may already be available within your intranet Many intranet software providers provide enterprise social network tools that allow team members to recognize one another Using an intranet in this manner can increase your return on investment while decreasing the need for additional software

- Transparency in leader: The best leaders inspire their employees and

communicate with them They are held accountable for both good and bad business decisions Only when the leadership team is trusted and connected to those below them can a solid business foundation be built Your internal communications strategy strengthens this relationship so that employees are reassured during organizational changes

- Work-life balance and personal well-being: Millennials are more concerned than any other generation about "flextime," or the ability to self-manage time rather than being forced to work during standard business hours Employees are drawn to the opportunity to work remotely because of the flexibility it provides Bottom line: workers want more say over when and where they work Flexible work schedules and telecommuting may result in your employees being more productive, satisfied, and experiencing less conflict between work and personal obligations Though some employers are hesitant to delegate control to their employees, studies show that flexible work schedules can result

in positive outcomes