Attractingand retaining the talents in Vietnam Bank for Agriculture and Rural Development – Soc Son branch

TABLE OF CONTENTTABLE OF CONTENT...i LIST OF TABLES AND FIGURES...iv LIST OF ABBREVIATIONS...v PREFACE...1 CHAPTER 1: INTRODUCTION...3 1.1 Rationale of the research 3 1.2 Research scope

TABLE OF CONTENT

TABLE OF CONTENT i

LIST OF TABLES AND FIGURES iv

LIST OF ABBREVIATIONS v

PREFACE 1

CHAPTER 1: INTRODUCTION 3

1.1 Rationale of the research 3 1.2 Research scope 4 1.3 Research questions 5 1.4 Research objective 5 1.5 Research method 5 1.6 Structure of the research 6 CHAPTER 2: LITERATURE REVIEW 7

2.1 General knowledge about human resource management 7 2.1.1 Definitions of human resource and human resource management 7 2.1.2 Core functions of human resource management 7 2.2 Attracting and retaining the talents 9 2.2.1 Attracting the talents 9 2.2.2 Retaining the talents 9 2.2.3 Important role of attracting and retaining the talents in a company 10 2.3 Factors affecting attraction and retention process 11 2.3.1 Recruitment and selection process 11 2.3.2 Compensation scheme 16 2.3.3 Leadership skills 25 2.3.4 Corporate culture 26 2.4 Link between talent management and business outcome 26 CHAPTER 3: RESEARCH METHODOLOGY 29

3.1 Research philosophy 29

3.2 Case study 29

3.3 Data collection methods 30

3.3.1 Qualitative and quantitative methods 30

3.3.2 Sources of data 32

3.4 Data analysis 36

CHAPTER 4: EMPIRICAL FINDINGS ON ACTIVITIES OF ATTRACTING AND RETAINING THE TALENTS AT AGRIBANK SOC SON 38 4.1 Introduction to Agribank Vietnam and Agibank Soc Son 38

4.1.1 Agribank Vietnam 38

4.1.2 Agribank Soc Son 39

4.2 Characteristics of current workforce at Agribank Soc Son 41

4.2.1 Labor structure by gender 43

4.2.2 Labor structure by qualification 44

4.2.3 Labor structure by foreign language level 45

4.2.4 Labor structure by age 46

4.2.5 Change in labor force 46

4.3 Recruitment and selection at Agribank Soc Son 48

5.1.1 Strengths and weaknesses 66

5.1.2 Opportunities and challenges of Agribank Soc Son in attracting and retaining the talents 68

5.2 Development plan of Agribank Soc Son 69

5.2.1 Business plan 69

5.2.2 Human resource plan 71

5.3 Recommendation and suggested solutions to improve the effectiveness of attracting and retaining the talents at Agribank Soc Son72

5.3.1 Improving employee satisfaction with Pay 72

5.3.2 Diversifying forms of compensation 73

5.3.3 Improving employee satisfaction with Opportunities for promotion and training 74

5.3.4 Completing job description 75

5.3.5 Diversifying recruitment sources 76

5.3.6 Innovating selection criteria 77

5.3.7 Improving selection methods 77

5.3.8 Evaluating recruitment results 79

CHAPTER 6: CONCLUSION 81

REFERENCES 84

APPENDIX 1 88

APPENDIX 2 90

APPENDIX 3 96

APPENDIX 4 97

APPENDIX 5 98

APPENDIX 6 99

APPENDIX 7 100

LIST OF TABLES AND FIGURES

Figure 2.1 Human resource management practices 8

Figure 2.2 Human resource planning 12

Figure 2.3 Selection process 16

Figure 2.4 Maslow’s hierarchy of needs 23

Figure 4.1 Organisation structure 41

Figure 4.2 Labor structure by gender 44

Figure 4.3 Labor structure by qualifications 44

Figure 4.4 Labor structure by foreign language level 45

Figure 4.5 Labor structure by age 46

Table 2.1 Financial and non-financial compensation 17

Table 3.1 Qualitative and Quantitative method 30

Table 4.1 Report in June, 2014 40

Table 4.2 Change in labor force 47

Table 4.3 Recruitment criteria 50

Table 4.4 Satisfaction level with “Pay” 60

Table 4.5 Satisfaction level with “Co-worker” 61

Table 4.6 Satisfaction level with “Training and Promotion” 61

Table 4.7 Satisfaction level with “Supervision” 62

Table 4.8 Satisfaction with “Work” 63

Table 4.9 Testing on Job satisfaction level 64

Table 4.10 Adjusted model 65

Soc Son branch

SPSS Statistical Package for the Social Sciences

One of the most important things which contribute to the success of anorganisation is human resource An organisation cannot build a good team ofworking professionals without good human resources People always plays animportant role in planning, operating and controlling almost all activities of acompany It can only function effectively when its employees perform their jobwell, constantly develop their ability to work and try their best for overalldevelopment of the company To have a high quality workforce, the organizationmust ensure the implementation of good human resource management,organizatinal strategy from reasonable recruitment, work assignment, performanceevaluation and remuneration policies

The key functions of the Human Resources Management (HRM) departmentinclude recruiting people, training them, performance appraisals, motivatingemployees as well as workplace communication, workplace safety, etc In which,the very first step deciding who will be selected to fill in vacancies is recruitment.How to attract excellent candidates, select the right people and retain them, thisdepends on the recruitment process, compensation policies and the way a companymotivates its employees Hiring exceptional talent is critical to company’s businesssuccess Whether the position is the executive who offers visionary leadership, themanager who decides on business plans, or just the worker who operates themachines, a business needs great people to thrive

Why attracting and retaining the talents in a company becomes more and moreimportant? Today, the competitive advantage not only comes from cheap materials

or labor but also the highly-skilled employees who create differentiated productswith high quality, good design, whole-hearted service which leads to customerloyalty Moreover, the talents know how to take advantage of strengths andovercome obstacles of a company in right way, which is very critical for long-termdevelopment Seemingly, the excellent people hold the key to define success orfailure of a company

In fact, many enterprises, especially state-owned companies, have not beenfully aware of the important role of human resource as well as recruitment andretention activities, which lead to lack of effectiveness and efficiency in humanresource management and lost of talents They do not go in the right direction orthey are reluctant to change the policies which is no longer appropriate Normallythis problem is ignored when the enterprise just focus some key areas such asaccouting, credit or customer service The case I want to discuss here is about astate-owned bank called Vietnam Bank for Agriculture and Rural Developmentwhich think little of the role of human resource and have the imbalance of human

resource among branches This issue inspires me to choose the topic: “Attracting and retaining the talents in Vietnam Bank for Agriculture and Rural Development – Soc Son branch”

In this thesis, I want to tackle two main problems Firstly, I will review generalknowledge about some basic definitions and theories of recruitment and retentionprocess to provide an overview for readers Secondly, I will focus on the case ofAgribank – Soc Son branch to describe and analyse the policies of attracting andretaining the talents in this branch After that, I hope to make a small contribution tofind out some solutions for future development of Agribank in general and Soc Sonbranch in particular

I am greatly indebted to Ms Tran Minh Thu, MA who has inspired me tochoose this topic and encouraged me from the first step of this work Because of mylimited knowledge and experience, the shortcoming is unavoidable Therefore, Isincerely appreciate all the comments and adjustment from teachers to help mefulfill this thesis

CHAPTER 1: INTRODUCTION 1.1 Rationale of the research

Human resource can be valued as one kind of capital which brings competitiveadvantage to a company’s bottom line Although information technologyincreasingly grows day by day and machines gradually replace postions of people inmany aspects, we cannot deny the irreplaceable role of human resource in anyorganization due to the fact that a company can only start with at least one member

or a group of members, more or less, it is inevitable There is nothing which cantake on the role of people in managing all activities of a company and dealing withcompany’s problems which are unavoidable Human resources conducts needsassessments for the organization's current workforce to determine the type of skillstraining and employee development necessary for improving skills andqualifications An efficiently run human resources department can provide anorganization with structure and the ability to meet business needs through managingthe company's most valuable resources - its employees

While human resource is known as essential capital of a company, the talents inthat workforce can be seen as core value of this capital source Attracting andretaining the talent is becoming increasingly critical to an organization’s bottom lineand future success The economic slowdown is one of main factors responsible forplacing a new level of importance on talent management programs as they existwithin an organization Globalization is another factor; with many organizationsviewing the entire world (not just a single country or region) as the situation inwhich they conduct business, it requires them to learn how to optimally managetalent on a global level

Today, a strong emphasis on effective talent management can produce the rightsupply of quality talent and future leadership It can also improve productivity,increase retention and link workforce plans to the organization’s strategicdirections And research shows that organizations with leading talent managementhave significantly outperformed other organizations across four key financialmetrics: return on assets; return on equity; net profit margin; and earnings beforeinterest, taxes, depreciation and amortization

The stories about failure in attracting and retaining the talents of VietnamAirlines Corporation when talented pilots quit their job and move to othercompanies because of poor compensation scheme, or many talents do not comeback to contribute to Vietnamese enterprises after going abroad for further study tell

us the fact that if we have poor talent management practises, we are losers inbusiness world For many state-owned companies, especially state banks wherehuman resource department is placed after other departments like credit andaccounting, talent retention seems to be ignored because of stagnant policies andreliance on support from state Actually, I have just had a chance to do research on astate bank named Vietnam Bank for Agriculture and Rural Development (AgribankViet Nam) – Soc Son branch and I realized that this bank in general, and Soc Sonbranch in particular, do not care about attracting and retaining the talents, whichleads them to the lag behind other banks Some actions should be taken to improveeffectiveness and efficiency of the bank and this branch And this problem inspired

me a lot to do a profound research on actual situation of attraction and retentionprocess at Soc Son branch The analysis on recruitment process and motivationpolicies will be basis for this issue and further suggestions

1.2 Research scope

In theory, the author has studied some textbooks and materials which directlyrelate to human resource management, recruitment and selection policies,compensation scheme, especially some theories about attracting and retainingtalents or talent management of a company to build a basis for the whole research

In reality, the author has focused on the history, the operation scope, thebusiness results as well as characteristics of workforce of Agribank Soc Son in

2014 At the same time, the author has mentioned the business and human resourceplan of this branch up to 2020 along with data from reports and internal materialswhich are collected by the author during the period of doing this research throughsurvey and interview

1.3 Research questions

The findings of this thesis aim at answering the main question: What shouldAgribank Soc Son do to improve attracting and retaining the talents To find out aprofound answer for this big question, the author intends to answer other questions:

 What is talent management and its important role?

 What are factors that affect attraction and retention activities?

 What is the status of attraction and retention of talents in Agribank Soc Son?

 What are the most important factors that encourage employees to continue their jobs in Agribank Soc Son?

1.4 Research objective

The main objective of this thesis is to find out the way suitable for AgribankSoc Son to improve its talent management However, this purpose is reached onlywhen the case of this branch is analysed deeply Therefore, this work also aims atdefining actual status of recruitment process, compensation scheme and forms ofwork motivation at Agribank Soc Son After that, the author hope to find some keyfactors which can attract and retain the talented staff so that the author can givesome recommendations as a small contribution to future development of this bank.This thesis is expected to be helpful not only for Agribank Soc Son but alsoAgribank Vietnam in general

1.5 Research method

The study uses both qualitative and quantitative methods, as well as atheoretical study where empirical findings and theories has been compared Theintention of investigating and using Vietnam Bank for Agriculture and RuralDevelopment (Agribank Viet Nam) – Soc Son branch as a case company, is tomake the information from the theories more detailed and valid, also the interest inhow attraction and retention management works in practice An in-depth interviewand online survey will be conducted to collect both quanlitative and quantitativedata The detail of research methodology will be deeply mentioned in chapter 3

1.6 Structure of the research

The thesis is broken down into six chapters: chapter 1, 2, 3, 4, 5 and 6 which arelisted below:

Chapter 1: Introduction

Chapter 2: Literature review

Chapter 3: Research methodology

Chapter 4: Empirical findings on activities of attracting and retaining the

talents at Agribank Soc Son

Chapter 5: Discussion and recommendation for Agribank Soc Son and

Agribank Vietnam

Chapter 6: Conclusion

CHAPTER 2: LITERATURE REVIEW 2.1 General knowledge about human resource management

2.1.1 Definitions of human resource and human resource management

Human resources is the set of individuals who make up the workforce of

an organization, business sector, or economy "Human capital” is sometimes usedsynonymously with human resources, although human capital typically refers to amore narrow view (Thomas O Davenport, 1999) In a company, human resources is

a department which deals with finding, screening, recruiting and training jobapplicants, as well as controlling employee-benefit programs In other words,human resource is the people who can staff and operate an organization, ascontrasted with the financial and material resources of an organization (Raymond

A Noe et al., 2011)

Human resource management is the organizational function charged with thepeople and issues related to people such as compensation, hiring, performancemanagement, and training Human resource management is also the policies,practices, and systems that influence employees’ behavior, attitudes, andperformance (Raymond A Noe et al., 2011, p 39) HRM is also a strategic andcomprehensive approach to manage people and the workplace culture andenvironment Effective HRM enables employees to contribute effectively andproductively to the overall company direction and the accomplishment of theorganization's goals and objectives

2.1.2 Core functions of human resource management

Some of the major functions of human resource management are: planning,organizing, leading and controlling To get things done through the subordinates, amanager must plan ahead Planning is necessary to determine the goals of theorganisation and lay down policies and procedures to reach the goals For a humanresource manager, planning means the determination of personnel programs thatwill contribute to the goals of the enterprise, i.e., anticipating vacancies, planningjob requirements, job descriptions and determination of the sources of recruitment.Once the human resource manager has established objectives and developed plans

and programs to reach them, he must design and develop organisation structure tocarry out the operations In other words, the manager has to put the plan into reality.

To encourage people to work effectively, the manager should guide and motivate aswell as help them to solve conflicts To make sure that subordinates go into rightway and comply with plans, the manager must keep his eyes on employees’performance to evaluate their results, give feedback and decide on performanceappraisal

Many companies refer to HRM as involving “people practices.” (RaymondA.Noe et al., 2011) These practices which give support to organisation’s stategy aregiven below:

Figure 2.1 Human resource management practices

Source: Raymond A Noe et al., 2011

Figure 2.1 indicates that HRM should begin with analysing and designingspecific work to decide how many vacancies should be filled and which specificskills and knowledge are needed (HR planning) After that, HR manager thinks ofthe way to attract potential candidates (Recruiting) and build up criteria to selectright people (Selection) Then, employees are taught how to perform their jobs well

to reach organisation’s goals HR manager also consider the way to mativateemployees and manage their performance as well as create a good relationshipamong employees, between employee and manager

2.2 Attracting and retaining the talents

2.2.1 Attracting the talents

Attracting is activities which aim at causing someone to have a liking for or

interest in something, to come to a place or participate in a venture by offeringsomething of interest, favorable conditions, or opportunities Attracting also means

making something outstanding compared to others In a company, attracting the talents is directly linked to recruitment process at which the candidates look and

evaluate to make comparison among choices (Susan M Heathfield, 2013) The jobseekers will appreciate companies with attractive recruitment policies, a well-designed website for application, explicit selection system, special corporate culture

or other good offers The company should answer the question what are reasons forwhich potential candidates should choose this company instead of others to draw aclear plan to attract people

The effectiveness of attraction process also depends on sources of recruitmentwhere employers can find out and select the talents For many state banks includingAgribank Vietnam, they often seek for candidates from leading universities andgive staffs’ offsprings priority over other applicants, which reduces opportunitiesfor talents from other sources The culture of companies can be affected by thisproblem and some negative situations may occur In short, attracting talents can beassociated with art of breaking into minds of people to create a good impression ontheir thoughts and lead them to our organizations (Susan M Heathfield, 2013)

2.2.2 Retaining the talents

If finding the best people is essential to a company’s success, keeping them is

even more important Retaining the talents is an effort of a company to maintain a

good working condition which support current staff in remaining with the company.Many employee retention policies focus on satisfying various needs of talentedemployees to enhance their performance, gain competitive advantages and reducesubstantial costs involved in hiring and training new staff (David G Allen, 2004) One of the most critical issues facing organizations today is how to retain theemployees they want to keep That is why organizations have to think of strategy to

minimize job turnover rate and absenteeism of employees There are many reasonsfor which employees leave companies Some are fed up with current position andlook for another company, some are not content with their wages, some leavebecause of retirement and some are dismissed We can divide these factors into twogroups: voluntary turnover and involuntary turnover Voluntary turnover is initiated

by the employee; for example, a worker quits to take another job Involuntaryturnover is initiated by the organization; for instance, a company dismisses anemployee due to poor performance or an organizational restructuring In fact, anorganization cannot retain all its valued employees (David G Allen, 2004), Even if

it invested heavily in keeping every key employee on board, some of thoseindividuals would still leave This is the reason why an organization has to reducethis rate and try to attract more and more talents to fill in vacancies

2.2.3 Important role of attracting and retaining the talents in a company

For most of the 20th century, the primary concerns of mangers in the workplacewere tangible resources, such as land, equipment, and money as well as intangiblessuch as brands, image, and customer loyalty (Dess & Picken, 1999) This situationseems to change now People are an increasingly valuable source of sustainablecompetitive advantage for organisations operating in a global economy Getting andkeeping the right people in the right places at the right time has never been morechallenging If a company is not prompt and sensible enough to recognise andattract the talents, it may become loser in global competition Success in attractingand retaining the talents can be regarded as a perfect beginning for any organization

to run business, especially start-up companies Talents not only work as managers

or supervisor but also highly-skilled workers who directly involve in productionprocess which create value and profits What does your organization look likewithout gifted staff? It will be stagnant and go downhill Moreover, bad managerscost businesses billions of dollars each year, and having too many of them can bringdown a company The only defense against this problem is a good offense, becausewhen companies get these decisions wrong, nothing fixes it Businesses that get it

right, however, and hire managers based on talent will thrive and gain a significantcompetitive advantage.

Finding the right people to help you get the right products to market especiallybefore your competitors is harder than ever If organisations do not transformthemselves to ensure they can attract, inspire, motivate, manage, develop andreward their people appropriately, they may lose their most valuable assets

2.3 Factors affecting attraction and retention process

2.3.1 Recruitment and selection process

The main function of human resource recruitment is to create a supply ofpotential new hires to satisfy the need of organization After that, selection beginswith the candidates recognised through recruitment and tries to find out the bestqualified individuals who are the most suitable to perform the available jobs At theend of the process, the selected individuals are placed in jobs with the organization

Recruiting consists of any practice or activity carried on by the organization

with the primary purpose of identifying and attracting potential employees And

through personnel selection, organizations make decisions about who will or will

not be allowed to join the organization (Raymond A.Noe et al., 2011)

2.3.1.1 Planning for and recruiting human resources

The first step in human resource planning is forecasting This step aims at

identifying which areas of the organization face with labor shortages or surpluses.The second step in human resource planning is goal setting and strategic planning.The objective of setting goals is to keep an eye on the problem and create a basis forevaluating and controlling the organization’s performance in finding and attractingcandidates or carrying out down-sizing The goals should come directly from theanalysis of labor supply and demand After taking all possible strategies intoconsideration, the final stage of human resource planning is implementing thestrategies and evaluating the outcomes When the HR strategy comes into reality,the organization should assign some individuals to be in charge of achieving thegoals It is also important that these people issue regular progress reports, so the

organization can be sure that all activities occur on schedule and that the earlyresults are as expected (Raymond A.Noe et al., 2011).

Figure 2.2 Human resource planning

Source: Raymond A Noe et al., 2011

One of the most important factor in this step is to plan job description whichhelps candidates know exacly which skills and abilities they need and what tasksthey should try to complete with this position The employers should giveinformation about position purposes, essential functions with minimumrequirements and preferred qualifications as well With position purposes, theemployer will indicate description of departments’s functions with role and tasksrequired Once the employer have identified the position purpose, essentialfunctions and qualifications, he needs to check, review the description and answerquestion that whether it is written to attract an individual who is a top performer ornot? The minimum requirements or “basic qualifications” are those qualifications orcriteria which was established in advance and advertised to potential applicants.These requirements must be relevant and relate to the duties and responsibilities ofthe job It can be degree in international business administration, requiredexperiences, good soft skills or a certificate of a foreign language After that, the

employers will notice preferred qualifications which are in favor of candidates tohelp them become outstanding among applicants It can be a special skill thatcandidates possess or advanced degree which candidates gain in various fields.

2.3.1.2 Recruitment sources

The finding of potential candidates and bringing them to an company is one ofthe most important factors of recruitment process The candidates may be availableinside or outside the organisation Basically, there are two sources of recruitment,internal and external sources (Raymond A.Noe et al., 2011)

Internal Sources

An employer can search for best employees within his organization When avacancy needs to be filled in the organisation, it may be given priority to anemployee who is ready for a new task Internal sources can be promotion, transferand in certain cases demotion When employees have chance to be promoted, theywill work hard and try their best to perform their tasks Organizations can notice

employees about recruitment by job posting, or communicating information about

the vacancy on company bulletin boards, in employee publications, on corporateintranets, and anywhere else the organization communicates with employees (SmritiChand, 2015) Employees from one position can be transfer to another position orpromoted to higher responsibility with better salary This source of recruitment notonly reduces the expenditure of company on recruitment but also minimize the costfor training new staff However, using internal sources can discourage talents fromother sources, limit capability of creativity and innovations

External Sources

When existing employees are not the best choice for vacancies, a company willsearch for candidates externally For entry-level positions and perhaps forspecialized upper-level positions, the organization has no internal recruits fromwhich to draw (Raymond A.Noe et al., 2011) Also, recruiting people outside thecompany can help the organization enhance its creation or innovate the way ofdoing business Actually, the company has to spend more money on this method ofrecruitment However, it can bring higher return and effectiveness

 Direct Applicants and Referrals

As defined by Raymond A.Noe et al (2011), direct applicants are people who apply for a vacancy without prompting from the organization Referrals are people

who apply because someone in the organization prompted them to do so In otherwords, referrals can come from recommendation of existing employees or managerswho undersatand the situation of their company and also the need of applicants

 Job Fairs

Before the development of social network which gets access to the internet, jobfairs were known as popular way for reaching candidates face-to-face Job fairswere used as a mean to develop organizations by spreading out the organization’simage and brand Job fairs can attract a lot of potential candidates for many fields ofwork These are not only places for job hunters but also ideal places for people whohave difficulty in choosing a suitable job because when taking part in job fair, theycan find the direction to select desired job (Smriti Chand, 2015)

in front of his computer and read the information and respont quickly by comments

or send email This can be regarded as a new approach to recruitment sources,which can save time for employers and job seekers This method require a goodpreparation for advertisement to express a good message and depict an attractiveimage of company Using adverts can attract a wide range of people However, thecosts may be higher than direct applicants and referrals due to the fact that thismethod does not focus on any specific group of people (Smriti Chand, 2015)

 Public Employment Agencies

Private agencies are companies known as link between employment need ofemployers and people who are seeking for a job Employers can register their jobvacancies with their local state employment office, and the agency will try to findsomeone suitable, using its computerized inventory of local unemployed individuals(Raymond A.Noe et al., 2011) When the agency finds out some candidates who aresuitable for the positions required, it will inform the company The employers ofcompany then carry out recuitment steps to make decision on these candidates Thismethod is not only cheap but also effective as well.

 Private Employment Agencies

In contrast to public employment agencies, which primarily serve the labormarket for manual wokers who work physically, private employment agenciesprovide much the same service for the intellectual wokers who use their intelligenceand high skills to create high-quality produtcs of wisdom Workers who are finding

a job can register with a private employment agency whether or not they arecurrently holding another job

 Colleges and Universities

Nowadays, there are a lot of colleges and universities have placement serviceswhich aims at giving their graduates chance to get a job more easily On-campusinterviewing is the most important source of recruits for entry- level professionaland managerial vacancies (Raymond A.Noe et al., 2011) Direct recruitment fromeducational institutions for certain jobs which require technical or professionalqualification has become a common way of recruitment A close cooperationbetween the company and universities or colleges bring benefit for both parties Theuniversities can help their students get a desired job from which reinforce image ofthese universities On another hand, this helps organizations find potentialcandidates more effectively

2.3.1.3 Selecting employees and placing them in jobs

After attracting targeted number of candidates, an orgaization will carry outselection process to choose right people for righ job While recruitment is seen asprocess of motivating more and more candidates, selection process will rejectcandidates with poor performance to find the best ones in a pool of applicants The

process of selecting employees can be different between companies and depends oncharacteristics of the job However, it should include five basic steps illustrated inFigure 2.3 Firstly, a recruitment commitee screen the application forms andcandidates’ resumes received to see which meet the minimum requirements of thejob After this step, candidates selected will be tested by giving work samples andthe committee will observe their performance Those with the best abilities areinvited to the organization for one or more interviews Actually, candidates in thisround can be divided into groups to make it easier for employers to evaluateperformance of each member The best candidates who pass three previous stageswill be chosen as official employees of company after the recruitment committeecheck their references and background one more time.

Figure 2.3 Selection process

Source: Raymond A Noe et al., 2004

2.3.2 Compensation scheme

Beside the important role of recruitment and selection process, compensation isanother factor that should not be ignored if a company really want to attract andretain their talented workforce According to R Wayne Mondy (2010),compensation is the total of all rewards provided to employees in return for theirservices Compensation can be defined as the total amount of the monetary and non-monetary pay provided to an employee by an organization in return for theirperformance as required Compensation scheme can be adjusted based onemployees contributions and accomplishments; the availability of employees withrequired skills in the marketplace to decide whether they are scarcie or not; theexpectation of the organization to attract and retain a particular employee for the

value they receive from employee’s contribution to reinforce the employment

relationship, and the profitability of the company or the funds available in a

non-profit or public sector setting, and thus, the ability of an employer to pay

market-rate compensation The market research may be also reference for making decision

on what and how to compensate In this section, the author will specify some

categories that directly relate to the term “compensation”: financial compensation,

non-financial compensation and work motivation In financial compensation, the

author will cover two smaller categories: direct financial compensation and indirect

financial compensation The following table will show out some kinds of

compensation included in financial compensation and non-financial compensation:

Table 2.1 Financial and non-financial compensation

POSITION

WORK ENVIRONMENT

Social SecurityBenefits:

Retirement plans,Employmentinsurance,WorkerCompensation,Educationalservices,Employee

Interesting Dutiesand ResponsibilitiesChallengesAuthorityAutonomy

Opportunity forRecognition

Feeling ofAchievement

AdvancementOpportunity

Fair and ConsistentPractices andPolicies

CompetentSupervision

Fun and EffectiveCo-workers

Comfortable andSafe WorkingEnvironmentFlexible SchedulingAlternative Working

Paid Absences:

Vacations,Holidays, SickLeave,EducationalLeave, Jury Duty,CompassionateLeave

ArrangementsModified Retirement

Source: http://hrcouncil.ca/hr-toolkit/defining-compensation.cfm

2.3.2.1 Financial compensation

 Direct financial compensation

The most well-recognized form of compensation, and probably the first type of

compensation that most workers look forward to, is direct compensation Direct compensation is the money directly paid to employees in exchange for their labor.

Direct compensation includes wages, salaries, bonuses, tips and commissionsprovided at regular and consistent intervals (Shawn Grimsley, 2014)

For many people who want to support their family or satisfy their needs ofaccomodation, vehicles or some necessities of life, the first reason why they work is

salary Salary is a fixed amount of money or compensation paid to an employee by

an employer in exchange for their work performance The salary system is included

in pay structure which can have several grades or levels, career bands, or jobfamilies with each having a minimum or maximum salary associated In Viet Nam,there are some methods for calculating the salary For example, if the salary isbased on working days, the general formula is:

Salary = (Base pay + allowances)/total workdays of a month x number of real working days

One of the most common ways to motivate employees is changing the base

pay Base pay is a fixed regular payment made to an employee in exchange for

performance of the duties and responsibilities of their role (Shawn Grimsley, 2014).When an employee receives an increase to their base pay, it is considered a payincrease There are various reasons and methods for determining an increase, butthe common factor is that the increase changes the level of ongoing base pay Whenthe cost of living increases, the company intends to increase the base pay by a set ofpercentage which accounts for this increase as a motivator for its employees.Moreover, the change in pay structure can derive from a market adjustmentfollowing a compensation review against pre-established criteria Marketadjustments are typically made following the receipt of market survey data Thisdata is usually received and evaluated towards the end of either your fiscal orcalendar year Organizations will evaluate their salaries against market data and, ifrequired, adjust base salaries for roles that are below the market Or when acompany decides on advancement of an employee to a higher position, then it iscalled a promotional increase Promotion is usually based on availability ofopportunities and preparedness of employees to advance The increase in base paycan result from a merit increase which are awarded to recognize employees’contribution and to compensate them for their high level of performance.

A direct financial compensation can take the form of bonus pay which iscompensation over and above the amount of pay specified as wages or salary and it

is only distributed as the organization is able to pay or as outlined in an employmentcontract Bonus pay is used by many organizations to improve employee morale,motivation, and productivity or as a thank you to employees who achieve asignificant goal (HR Council for the Nonprofit Sector)

When compensation is based on volume or some form of performance, this isknown as commission based remuneration Other terms used include piecework orpiecemeal Many industries used this type of remuneration to get a minimumstandard of production in exchange for compensation It is used to shift risk fromthe employer to the employee There are two methods to calculate commission.One is based on volume of services and the other is based on sales

 Indirect Financial Compensation

Another tool available to a company is indirect financial compensation.

Indirect compensation is a benefit given to an employee that has financial value,

but is not a direct monetary payment (R Wayne Mondy, 2010) It is often referred

to as a noncash benefit In certain circumstances, these noncash benefits may bemore valuable to an employee than a high salary or wage Indirect financialcompensation including all financial rewards that are not included in directcompensation and can be understood to form part of the social contract between theemployer and employee such as benefits, leaves, retirement plans, education, andemployee services Such benefits may include Insurance plans, which may in turninclude Life, Supplementary Health, Vision, Dental, etc., Indirect financialcompensation can also include Social Security benefits, Retirement Plans,Employee Insurance Workers compensations, and can also include paid absencelike vacations, sick leaves, holiday leaves, educational leave

Medical insurance coverage is often a coveted benefit Employer-sponsoredmedical insurance may be the only way an employee with a sick spouse can affordhealth insurance and offers quite an inducement to come aboard and stay with thecompany (ibid)

Retirement plans can also offer an attractive incentive If a company offers adefined benefit plan, it's promising to pay a certain amount of retirement benefits to

an employee upon the employee's retirement You can think of it like a sector social security payment - a set amount each month for life (Shawn Grimsley,2014)

private-Stock options and profit sharing programs are not only an incentive foremployees to stay but also provide an incentive for employees to be moreproductive because employees share in the gains An employee stock option is theright to buy company stock at a certain price during a certain period of time (ibid)

2.3.2.2 Non-financial compensation

The compensation scheme of a company not only cover monetary rewards Infact, to gain employees’ satisfaction and inspire them to greater efforts, anorganization need to use some intangible motivators rather than pay base.According to the McKinsey Journal, for individuals who are relatively satisfied with

their salary, it is the non-financial rewards that tend to be more effective incontributing to long-term employee engagement Non-financial rewards refer tocareer development and advancement opportunities, opportunities for recognition,

as well as work environment and conditions When the competition for talentsbecomes tougher, the emphasis on non-financial rewards should be reinforced Anorganization should find new ways to encourage its employees and retain them atwork Effective non-financial incentives for employees reach out and touch theemotions to make the employee feel welcomed, appreciated, and valued Winning apraise from boss helps an employee to realize his important role in organizationwhich results in better performance and loyalty (Robert Rimm, 2015)

Non-financial rewards can have an even more substantial impact on employeesatisfaction and motivation than traditional financial rewards An employee canchoose a company for high salary but he can leave it for other reasons such as workclimate, career development, recognition and other non-financial issues Even well-compensated employees may leave a company if dissatisfied with these aspects.Companies with excellent non-financial incentives can attract, motivate and retaintalented people (Joanne Sammer, 2011)

When a company find it difficult to increase base pay to mativate its employees,

it will consider non-financial rewards effective tools to retain its employees Theimportance of these issues to employees suggests that non-financial rewards should

be a part of any company's plan regardless of the economic situation

Gareth, work mativation is the psychological forces within a person that determine

the direction of a person’s behavior in an organization, a person’s level of effort,

and a person’s level of persistence in the face of obstacles In this section, the author

would like to review some typical theories directly related to work motivation,

including intrinsic versus extrinsic motivators, Maslow’s Hierarchy of Needs andEquity theory.

 Intrinsic versus extrinsic motivators:

For any business, motivating employees is an important factor, because itderives the inner force that creates the difference between failure and success Thatmeans, what motivates one person in business won’t necessarily work for the other.(Schater & Daniel, 2011) Motivation is the methodology that leads to a win-winsituation between the organization and the employees.(Megan & Rowe, 2001).Motivation can derive from external or internal factors, which results in intrinsicand extrinsic motivators (Joseph J Martocchio, 2013)

Intrinsic motivation is something that you have to offer yourself and is driven

by personal interest or enjoyment in the work itself (Kenneth Thomas, 2009).Because intrinsic motivation exists within the individual, achieving it does notdepend on others Some people believe that the most powerful rewards come from

inside a person In fact, Frederick Herzberg, who is one of the leading theorists

of workplace motivation, found intrinsic rewards to be much stronger than financialrewards in increasing employee motivation It does not mean that employees thinklittle of monetary rewards, it just means they need something rather than money topush themselves Intrinsic rewards include things such as: personal achievement,professional growth, sense of pleasure and accomplishment To support employeeswith intrinsic motivators, an organization should provide employees withmeaningful works, allow them to make choices through a high level of autonomy,provide opportunities for employees to show their competence in areas of expertise,offer them more opportunities to reward themselves or help them to feel like theircontribution matter

Unlike intrinsic motivation that is self-administered, extrinsic motivation

external to individual and is typically offered by a manager who has power andauthority to give rewards Extrinsic motivation which comes from outside anindividual is based on tangible rewards Extrinsic rewards are usually financial innature such as a raise in salary, a bonus for good performance or a verbal praise.These material rewards can be motivating to employees because pay, time off,

advancement and recognition are important to most workers Providing employeeswith extrinsic rewards is relatively straightforward and usually built intoperformance review or individual projects They are particularly useful in short-term for motivating employees to work toward one specific goal (Kenneth Thomas,2009)

 Maslow’s Hierarchy of Needs:

In 1943 Abraham Maslow published his theory of a hierarchy of needs Maslowidentified that as individuals we have five sets of needs as shown in the diagram:

Figure 2.4 Maslow’s hierarchy of needs

Source: Maslow, 1943

The lowest levels of the pyramid are made up of the most basic needs, while themore complex needs are located at the top of the pyramid Needs at the bottom ofthe pyramid are basic physical requirements including the need for food, water,sleep, and warmth Once these lower-level needs have been met, people can move

on to the next level of needs

Douglas McGregor (1960) indicates that “Man is a wanting animal-as soon asone of his need is satisfied, another appears in its place This process is unendingcontinue from birth to death” Human needs are organized in a series of levels – ahierarchy of importance A satisfied is not a motivator of behavior When man’s

physiological needs are satisfied and he is no longer fearful about his physicalwelfare, his social needs become important motivator of behavior.

Understanding Maslow’s Hierarchy of Needs helps an organization identifywhich levels its employees are satisfied with and which levels they desire toaccomplish From that point, the company can motivate and retain its potentialemployees as well as attract more and more talents With Maslow’s theory, anemployee’s beginning emphasis on the lower order needs of physiology andsecurity Generally, a person beginning his career will be very concerned withphysiological needs such as adequate wages and stable income and security needssuch as benefits and a safe working environment When these basic needs havealready been satisfied, the organization should motivate its employees with higherlevels like self-esteem and self-actualization which are tied to an employee’s image

of himself and his desire for the respect and recognition of others as well asopportunities for individual growth and development Employee needs change withtime This means that managers must continually adapt to employees’ changingneeds if they want to keep their workforce motivated

 Equity theory:

First developed in the early 1960s by behavioural psychologist John S Adams,equity theory is concerned with defining and measuring the relational satisfaction ofemployees Adams suggested that employees try to maintain a balance betweenwhat they give to an organisation against what they receive, and base satisfactionwith their own balance on perceptions of the same balance in colleagues Equitytheory is based on a principle that peoples' actions and motivations are guided byfairness and that discrepancies in this fairness in the workplace will spur them to tryand redress it According to Carrell and Dittrich (1978), “employees who perceiveinequity will seek to reduce it, either by distorting inputs and/or outcomes in theirown minds ("cognitive distortion"), directly altering inputs and/or outcomes, orleaving the organization.”

Equity Theory proposes that a person's motivation is based on what he or sheconsiders to be fair when compared to others (Redmond, 2010) As noted by Gogia(2010), when applied to the workplace, Equity Theory focuses on an employee's

work-compensation relationship or "exchange relationship" as well as that

employee's attempt to minimize any sense of unfairness that might result Theequity theory goes on to evaluate the outcome-to-input ratio comparison processand the cognitive and behavioral mechanisms to restore perceptions of equity(Stecher & Rosse, 2007) There is evidence that supports the theory's prediction thatpeople respond to inequity by reducing work effort or increase effort to match theoutcome (Stecher & Rosse, 2007) Over time, employees will be fed up with theirjob and they will quit it sooner or later

Therefore, equity in workplace plays an important role in retaining talents aswell as attracting people outside company In fact, many enterprises are not aware

of what equity really means It seems that they try to compensate for people in thesame position and the same job with the same amount of salary, bonus orallowance This does not really mean equity The compensation should be based oncontribution of each employee, how they perform their tasks and which level ofeffort they put into their job The equity will be assured when companies have aclear scriteria system to control and evaluate employees’ performance The authorhas chosen this theory as an useful tool for retaining the talents due to the fact thatinequity is one of the most obvious reasons for which the talents decide to quit theirjob and seek for other companies Applying this theory also helps the authorevaluate the compensation scheme of Agribank Soc Son and suggest some practicalsolutions for future development of this branch

2.3.3 Leadership skills

The most important element in retention according to Taylor (2001) is theleader Employees want a leader who knows them, understands them, care, concern,treats them fairly, and is someone whom they can trust The leader need to knowwhat their employees want and what is important to them Retention managementand retending employees is about relationships A leader not only works as a personwho give direction and lead subodinates into right way but also the person who caninspire them to greater efforts and keep them for organization It is not simple to get

along with all employees and build a long-term relationship based on honesty andloyalty That is why leadership skills are very important to retain the talents.

With effective leadership, all participants within the organization are confidentthat someone they know is working towards the greater good, both on their behalfpersonally and that of the company, as well as the larger impact created by thespecific product or service (Jennifer M George and Gareth R Jones, 2008) Andwithin this system, one of the most important factors to success is a leader in whomthey can place their trust That’s because true leadership is about taking people toplaces they would not or could not go on their own And achieving that level ofloyalty and dedication is the best way to keep talents who are inspired by trueleadership skills

2.3.4 Corporate culture

In today’s economy, creating and maintaining a great company culture isnecessary (Laurie Holsman, 2015) Having a good image on people’s mind will notonly help you to keep current employees, but it will also bring new employees toyour organization A job seeker not only expect a good position with high salary,but he also look for a company with good brand as well as distinguished culture.Company culture includes everything from the mission and values, to goals andexpectations, to the work environment itself It may also incorporate fun things,such as social events and free food Ultimately, the core of the culture should shinethrough and reflect the true meaning of what the company stands for.Characteristics of businesses with strong company cultures include opencommunication, mutual respect, integrity, positive energy, work/life balance, strongleadership, customer-focused attitude and a strong sense of trust These are thingsthat will retain employees and draw new ones to your workforce ( David Crisp &Joanne Reid, 2007)

2.4 Link between talent management and business outcome

Talent management is an organization's function to recruit, retain, and developthe most talented and excellent employees available in the job market So, talent

management is a useful term when it describes an organization's commitment tohire, manage and retain talented employees (Jonah Levey, 2015).

Today, the value of a company’s products or services is derived mainly fromknowledge-based activities such as good design, good workmanship, technologicaldevelopment, customer service, and logistics (John Hagel III, 2012) Thus, it isimperative to do everything possible to preserve and enhance the source and key toknowledge: the individuals who possess it Recruiting and retention areinterconnected When a company is trying to “retain” talent, it is in fact “attracting”talent as well

Organisations with higher revenues relative to their human capital investment(i.e people productivity) and experiencing higher rates of revenue growth versustheir competitors are better at talent attraction – they invest more in recruiting, anddisplay better performance In terms of talent management, organisations withlower rates of employee absenteeism and turnover, together with a greaterperformance-related component in their reward display stronger revenueproductivity relative to human capital investment and grow their revenues morequickly over time than competitors (Tim Wright, 2014)

It is obvious that spending a large amount of money on recruitment andretention is not an easy decision for employers However, when thinking ofstrategies for long-term development of an organization, investing on human is a anideal idea It can take an organization a period of time to get back the investment.However, talents who are specialised in their tasks will create more sales and highermargin profit in comparison with normal workers Moreover, the talents canproduce superior products which naturally satisfy customers’ needs and gain theirloyalty This positive outcome not only bring more benefit to organization but alsochallenge the competitors

In contrast, a poor talent management system results in higher rate of quittingwork and absenteeism (Way F Cascio, 2006) This problem lead to fluctuation inworkforce, increase in cost for recuiting and training new employees, also the lowerperformance of overall business outcome In addition, the remaining employeesmay gradually lose their trust in their organization which are causes for working

slackly with stagnant development Once an organization cannot keep their humanresource, nothing left.

CHAPTER 3: RESEARCH METHODOLOGY 3.1 Research philosophy

Research philosophy can be defined as the development of the researchbackground, research knowledge and its nature (Saunders and Thornhill, 2007).Research philosophy is also defined with the help of research paradigm It can also

be characterized as a precise procedure, which involves various steps through which

a researcher creates a relationship between the research objectives and questions.According to Saunders, et al (2009) research approaches are mainly based onthe research philosophies, whereby the deductive approach is commonly used byresearchers with traditional natural scientific views (positivism), while inductiveapproach is usually based on phenomenology (interpretivism)

As mentioned by Saunders, et al (2009), a researcher with positivismphilosophy will take on the philosophical instance of natural scientist Positivismaccording to Veal (2006) is a framework of research similar to the views andassumptions adopted by natural scientist, in which the researchers view the peopleand its behaviour as phenomena to be studied, using facts and observations as itsstrategy to explain the phenomena Saunders, et al., (2009) also added thatpositivism views mostly prefer working in an observable social reality and will have

an end product research similar to those produced by a natural scientist.Interpretivism on the other hand, strongly believes that it is imperative for aresearcher to understand the factors and “differences between humans in our role associal actors” (Saunders, et al., 2009)

In this research, the author intends to use deductive approach which viewsthepeople and their behaviors as actual situation to be studied With this method, theauthor can deeply investigate the facts at Agribank Soc Son The author will useactual documents collected and her observations to find out the answer for some bigquestion which are mentioned in previous section

3.2 Case study

The author decides to choose the case of Agribank Soc Son for many reasons.First of all, Agribank is a typical organization in chain of state-owned banks in Viet

Nam, which mainly operate on developing domestic agriculture and rural regions.Actually, the author now is living in Soc Son district And it will be an wise idea forthe author to carry out her research about a bank in her hometown It not only make

it easier for the author to collect data, but also help her to give a small contribution

to her native place for better development in near future Secondly, the authorherself had opportunity to work with the head of human resource department ofAgribank Soc Son in some problems related to recruitment and selection process ofthis branch from the very first dates of mid-term internship report This chanceinspires the author a lot to get further in other HR issues of Agribank Soc Son.Fortunately, the office is near author’s house, which is regarded as a favor thatsupport for the author a lot to get the data and have appoitment with head of HRdepartment of Agribank Soc Son After deeply analysing this case, the author hopethat the results will be recognised by Agribank Soc Son in particular and AgribankViet Nam in general although this firstly aims at getting a good approach forauthor’s dissertation

3.3 Data collection methods

3.3.1 Qualitative and quantitative methods

What is the difference between quantitative and qualitative research? Quantitative research generates numerical data or information that can be converted into numbers Qualitative Research on the other hand generates non-numerical data.

To make the comparison more detailed, the author has created the followingtable:

Table 3.1 Qualitative and Quantitative method

Qualitative method Quantitative method

projects

Latter part of the researchproject

detailed description of theresearch topic

+ more exploratory in

+ counting and classifyingfeatures and constructingstatistical models andfigures to explain what is

nature observed.

Data gathering tools Individual in-depth

interviews, structured andnon-structured interviews,focus groups, narratives,content or documentaryanalysis, participant observation and archival research

Questionnaires, surveys, measurements and other equipment to collect numerical or measurable data

Forms of data + Form of words (from

interviews) and images(videos) or objects (such

as artifacts)+ Figures in the form ofgraphs

Tables containing data inthe form of numbers andstatistics

Approach + primarily subjective in

approach+ understanding humanbehavior and reasons thatgovern such behavior

+ objectively separatedfrom the subject matter+ seeking precise measurements and analysis of target concepts

to answer why debateshave been ongoing,tackling which method isbetter than the other andthe reason why thisremains unresolved

Source: Created by author

In this thesis, the author makes use of both methods with an in-depth interviewand an online survey to find out dominants factors that affect human behavior,examine why it is the case and suggest the best solutions which are suitable forcurrent situation of the bank

3.3.2 Sources of data

3.3.2.1 Secondary data

Secondary data is data collected by someone else for some other purpose (but

being utilized by the investigator for another purpose) Secondary data tends to bereadily available and inexpensive to obtain (George Boykin, 2010) In addition,secondary data can be examined over a longer period of time Secondary data will

be reviewed firstly through the university library using a range of informationsources such as the academic abstracts, dissertation databases which help the author

to build a logical outline and get information for chapter of literature review At thesame time, the author also search for more information from the Internet where awide range of knowledge is available Another source of secondary data, which isreally useful for the author to find out the history of the bank, the human resourcestructure as well as the annual reports during a period of time, comes from thewebsite of company Besides, the author also ask some of her seniors for experience

of doing a thesis

3.3.2.2 Primary data

Primary data is information which is collected by researchers themselves

during their own research using research tools such as experiments, surveyquestionnaires, interviews and observation (George Boykin, 2010)

 Interview

An interview is a conversation between two or more people where

questions are asked by the interviewer toobtain information, qualities, attitudes,wishes etc from the interviewee Interviews are a standard part of qualitativeresearch (Kvale, 1996) Interview can be divided into many types which are based

on characteristics of interview It can be structured or unstructured interview, formal

or informal, focus group or in-depth interview

In this thesis, the author used an in-depth interview with Head of Humanresource department of Agribank Soc Son, Mr Ho Minh Tuan, to collect primarydata for her research An in-depth interview is an open-ended, discovery-oriented

method to obtain detailed information about a topic from a stakeholder The depth interview is useful for a qualitative method of analysis, which proceeds as aconfidential and secure conversation between an interviewer and a respondent(Carolyn Boyce, 2006) The method of the in-depth interview is appropriate if youneed to gain an insight into individual evaluations of specific material An in-depthinterview most often takes place in a private home, where the respondent is in his orhers natural surroundings In this way, the respondent is relaxed and therefore openand willing to reply to the exhaustive questions The author’s interview with Mr HoMinh Tuan was also conducted at his private home in two hours so that he canfreely answer questions of interviewer Fortunately, this interview took the authorquite little time and she could find out information for some big questions listedbelow:

in- When was Agribank Soc Son established and how does it operate till now?

 How is your branch organized and what are functions of each department?

 How does Agribank carry out recruitment and selection process to attract potential candidates? Please make it more detailed about job description, recruitment sources and seletion methods

 What is compensation scheme of Agribank Soc Son? Please make it more detailed about base pay, salary, bonus and allowance policies

 How did Agribank Soc Son build corporate culture and working condition for employees?

 How do leaders direct and motivate employees in your branch?

 Can you list some opportunities and challenges of your organization when attracting and retaining the talents?

 How did you evaluate the effectiveness of attracting and retaining the talents

in your company?

 What is business plan and human resource plan of your branch in nest period?

 Survey

There are a lot of ways to conduct research and collect information, but one

way that makes it really easy is by doing a survey A survey is defined as a brief

interview or discussion with individuals about a specific topic

Here are the three specific techniques of survey research:

 Questionnaires - a series of written questions a participant answers This

method gathers responses to questions that are essay oragree/neutral/disagree style

 Interviews - questions posed to an individual to obtain information about

him or her This type of survey is like a job interview, with one personasking another a load of questions

 Surveys - brief interviews and discussions with individuals about a specific

topic Survey is also a specific type of survey, to make things even moreconfusing A survey is a quick interview, with the surveyor asking only a fewquestions

In this thesis, the author used questionaires to test how employees in AgribankSoc Son satisfy with current policies so that the author can suggest some solutionsfor this branch to retain its talents as well as attract more potential candidates A set

of qusstionaires is based on JDI model which is widely used in testing level ofsatisfaction of emplyees The JDI was officially introduced in 1969 by Smith,Kendall, and Hulin and has since become the “gold standard” of job satisfactionscales (Landy, Shankster, & Kohler, 1994, p 271) There are five dimensions of JDIgiven by Smith et al (1969) that include work itself, pay, supervision, coworkersand promotional opportunities available within the organization to employees Theauthor will use these five dimensions to ask respondents about level of satisfactionthat they put on each For each dimension, the author also include some variables togain more detailed information The respondents will mark each dimension with 1,

2, 3, 4 or 5 points, in which, 1: totally disagree, 2: disagree, 3: neutral, 4: agree, 5:totally agree Here is the table of questionaires The detailed survey will be attached

in appendix 1

Pay

Pay 1 Base pay fits with characteristics of tasks required

Pay 2 Employees satisfy with current base

Pay 3 Salary is based on contribution

Pay 4 Reasonable allowance

Pay 5 Fair reward

Work

Work 1 Job is interesting

Work 2 Job requires creativeness

Work 3 Job fits employee’s capacity and expertise

Work 4 Job improves personal skills and knowledge

Work 5 Employee can make use of personal capacity in job

Supervision

Sup 1 Courteous style of work

Sup 2 Good leadership skills

Sup 3 Superiors treat their staff fairly

Sup 4 Superiors respect talents and contributions of staffs

Co-worker

Co 1 Co-workers are

Co 2 Co-workers support each

Co 3 Coworkers are trustworthy at work

Training and Promotion

Pr 1 There are many opportunities for personal development

Pr 2 The promotion policy is fair

Pr 3 There are professional training programs to upgrade expertise

Pr 4 Employees are allowed to participate in the work evaluation and