The organization chart in the Human resources department at Global Vietnam Aluminium has five sections with some functions as below: - Assistants who report directly to Human resources m
Trang 1UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
-DƯƠNG THỊ HỒNG NHUNG
SOLVING THE PROBLEM OF JOB DISSATISFACTION AT GLOBAL
VIETNAM ALUMINIUM CO., LTD
MASTER OF BUSINESS ADMINISTRATION
Ho Chi Minh City – Year 2020
Trang 2UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
-DƯƠNG THỊ HỒNG NHUNG
SOLVING THE PROBLEM OF JOB DISSATISFACTION AT GLOBAL
VIETNAM ALUMINIUM CO., LTD
MASTER OF BUSINESS ADMINISTRATION
SUPERVISOR: DR NGUYEN PHONG NGUYEN
Ho Chi Minh City – Year 2020
Trang 3List of Contents
Executive summary 1
1 Company background 2
1.1 Overview of Global Vietnam Aluminum Co., Ltd 3
1.2 The development of Global Vietnam Aluminum Co., Ltd 3
1.3 The main product of Global Vietnam Aluminum Co., Ltd 4
1.4 Organizational structure of Global Vietnam Aluminum Co., Ltd 4
1.5 The strategy of Global Vietnam Aluminum Co., Ltd 6
2 Symptoms 6
2.1 The high turnover rate 7
2.2 Turnover rate of engineer 9
2.3 Turnover rate by reasons 10
2.4 Initial cause-effect map 12
2.5 Updated Cause-effect map 18
3 Problem justification 19
3.1 Problem definition 19
3.2 Problem existence 19
3.3 Problem importance 21
4 Causes validation and solutions 22
4.1 Potential causes 22
4.1.1 Lack of career development 23
4.1.2 Lack of leadership 24
4.1.3 Unprofessional working environment 24
4.2 Causes existence 25
4.3 Alternative Solutions 28
4.4 Solution justifications 33
Trang 45 Action plan 33
6 Conclusion 38
7 Supporting information 39
7.1 Methodology 39
7.2 Research tool 39
7.3 Interviewees demographic 40
7.4 Interview Transcription 40
References 59
Trang 5LIST OF TABLES
Table 1: Total employee Turnover Rate in Global Vietnam Aluminium Company 8
Table 2: Employee Turnover Rate of the engineers in Global Vietnam Aluminium Company 9
Table 3: Resignation reasons for the engineer in GVA (2019) 11
Table 4: Training estimated costs 30
Table 5: Motivating estimated costs 32
Table 6: Planning schedule 35
LIST OF FIGURES Figure 1: Company structure 5
Figure 2: Human Resources structure 5
Figure 3: Employee Turnover Rate in Global Vietnam Aluminium Company 8
Figure 4: Engineer turnover rate at Global Vietnam Aluminium Company 10
Figure 5: Engineer resignation reasons in GVA 11
Figure 6: Initial cause-effect map 12
Figure 7: Updated cause-effect map 18
Figure 8: Final cause-effect map 23
Trang 6Executive summary
Nowadays, facing with high turnover rate and low recruitment are more concentrated by many corporations over the world, especially in a highly competitive market Key positions such as expertise, managers, and directors will bring too many benefits and values to the company Employees are major assets of any organization and the effective competitive advantage of many enterprises The importance of employees to an organization has been acknowledged for a long time because they have a role in creating, maintaining a competitive advantage and help the organization more development Lots
of companies in Vietnam do not pay more attention to human resources, and it is also often left to deal with employee turnover and the difficulties it brings In the market, the competition within the job market is getting fiercer and increased the number of employee turnover rates have become a concern for enterprises as well as the government Employees can leave a company for lots of reasons, when employees willingly leave a company, usually because they have other choices and they willingly go to work in another company This research study was conducted to explore the issue of employee turnover rate and retention talent employees in the manufacturing company, using Global Vietnam Aluminum Co Ltd as the context
This research was conducted to assess the impact of employee turnover on organizational performance in a manufacturing company, investigate the causes of staff turnover and finally recommend solutions that can be used to reduce the number of employee turnover
in Global Vietnam Aluminium Co Ltd
Trang 71 Company background
Nowadays, the global economy is developing day by day Vietnam's aluminum industry has continuously developed Policies to encourage foreign countries' investment in Vietnam as well as to encourage Vietnamese enterprises to export to foreign countries have made Vietnam's economy develop in a positive way At this time, in the aluminum market as well as aluminum products in the world is increasingly active while Vietnam is one of the countries attracting high foreign investment from big countries like the USA, Australia, China, Canada In a fast-moving environment, everything needs to change and enhance itself to integrate and develop There is always a chance for us to take part in this challenging business world if we are well-organized and dedicated to devoting to society Grasp that situation, the biggest factory in Vietnam and one of the biggest in Southeast Asia is Global Vietnam Aluminum Co., Ltd (GVA) is 100% Australian capital investment invested in 2011 The factory is located in My Xuan B1 Conac, industry zone, Ba Ria – Vung Tau province, which has a strategic advantage of transportation logistics and economic efficiency One of the emerging newcomers to confront this challenge and undertake this responsibility An advanced infrastructure at GVA provides customers with reliable and sustainable production and distribution New factory with all of the latest technology in the aluminum industry that can satisfy every requirement of customers With modern equipment and machinery, the company is gradually asserting its position in the aluminum industry, especially aluminum billet
Along with understanding the aluminum market and business environment of Asia in particular and of the world in general, Global Vietnam Aluminium brings suitable solutions to the business characteristics and environment of each enterprise Global Vietnam Aluminium team comprises experienced professionals and dedicated workers with all modern production techniques that enable the company to provide the best quality products in less time The company prioritizes the employment of domestic labor, ensuring the rights and interests of workers, strictly complying with the regimes prescribed by the Labor Law, respecting the right to organize trade unions under the Trade Union Law Create jobs for officials and employees, improve the average income is
Trang 8increasing Additionally, Global Vietnam Aluminum Co., Ltd often gives training sessions to all workers for the enhancement of productivity
1.1 Overview of Global Vietnam Aluminum Co., Ltd
- Address : My Xuan B1 Conac Industrial Zone, My Xuan, Ba Ria –
Vung Tau province
- General Director : Jacky Cheung
- Charter capital : 5.000 billion USD
- Company size : 63 hectares
1.2 The development of Global Vietnam Aluminum Co., Ltd
Global Vietnam Aluminum Co., Ltd was founded by two major shareholders, namely Jacky Cheung and Wang Tong, with five thousand billion dollars in capital investment and was established in 2011 In the beginning, company size was 40 hectares with around four hundred employees and expanded to 63 hectares three years later, with numerous hard working employees reaching up to approximately one thousand Since its establishment, Global Vietnam Aluminum continues to develop and remain as an outstanding organization in the manufacturing of aluminum extrusions in Southeast Asia within the last few years Producing and supplying high-quality aluminum billets with currently the production capacity has crossed a record of up to 200,000 metric tons annually and export to countries around the world, for example, Philippines, Malaysia, Indonesia, Thailand, Canada, USA, Hong Kong, China, etc to name just a few to serve and support customers' needs through the best services and products
At the very first beginning of our operation, Global Vietnam Aluminium only focuses on manufacturing and selling aluminum billet 6xxx series, among them, the core product is the primary aluminum billet 6063 which receives a great deal of recognition among customers across the domestic and international market Realizing that billet is just a
Trang 9semi-final product and does not bring us the opportunity to make this world a more beautiful and better place, at the end of 2014, Global Vietnam Aluminium decided to adjust our business strategy and headed to become the top aluminum extruders within the region With the extruded capacity of up to 80,000 MT per year sponsored by the 03 most advanced couple presses in the plant, Global Vietnam Aluminium entirely confident to supply the best aluminum profiles to serve the needs and demands of the market
1.3 The main product of Global Vietnam Aluminum Co., Ltd
GVA uses primary aluminum ingots as raw materials with five main products selected from different countries to ensure the best quality as below:
- 05 couples of smelting/furnaces (500 – 600 MT/day)
- 05 homogenization furnaces
- 03 couples of aluminum extrusion presses (2000; 2750; 3600 MT)
- Anodized facilities
- Powder coating facilities
1.4 The organizational structure of Global Vietnam Aluminum Co., Ltd
GVA has a main factory in Tan Thanh town, Ba Ria - Vung Tau province, and has around 1.000 employees from around the country come to work and 23 ex-pats who are working
in 8 departments: Human Resource, Quality Control, IT, Extrusion, Mold, Warehouse, and Painting The Board of Director who is responsible for all activities in the company and drive GVA going on the right track and strategy Each department played an essential role in supporting the company to expand and develop business in Vietnam
Trang 10Figure 1: Company structure
The organizational chart shows the internal structure of the Global Vietnam Aluminium organization Board of directors in the highest-ranking position atop the chart and followed by the following in descending vertical order:
- Chairman of the board of directors
- General director
- Head of departments
Figure 2: Human Resources structure
Trang 11The organization chart in the Human resources department at Global Vietnam Aluminium has five sections with some functions as below:
- Assistants who report directly to Human resources manager
- Recruitment and training have the responsibility to find talent candidates suitable for each position and training regulation, skills, or other development functions
- C&B – Labor relation creates happier workplaces, make reward and recognition programs to inspire peak performance, adapt the practice of transparent payment policies, determined based on experience, work skills, knowledge, performance ratings, and employee performance and market value and the relationship between employer and employee in the company
- Visa – Expat has responsibility for everything related to the foreigner
- The administration is another job required
1.5 The strategy of Global Vietnam Aluminum Co., Ltd
Global Vietnam Aluminium's strategy is cost management and endeavors to pursue appropriate products to enhance value for its customers It has crystallized an important project for the full modernization, automation, and up-gradation of the existing three presses of its plant for having a higher level of performance to make prestige is being widely speeded throughout Asia and the rest of the world Customers must set at the top
of the priority list, which always pushes the company to strive to take better care of them every single day To meet the company's goals and strategies, the company's human resource strategy focuses on developing young, dynamic, and talented staff, recruitment
of multicultural staff
2 Symptoms
Identify symptoms are the first thing to do in order to find the root causes of the problem The problem would be wrong if we cannot distinguish problems and symptoms No symptom means no problem According to Marlon (1) stated that it is significantly essential to distinguish the problem and symptom The author has carefully interviewed some members of the board of director, heads of the department and based on data from
Trang 122017 to 2019, the author found symptom that happening at GVA is high turnover rate, but
at this research, the turnover rate of engineers in 2019, which affects to the manufacturing
in the organization, was examined These symptoms will be analyzed in detail as follows:
2.1 The high turnover rate
Human resource is vital to each organization, which creating value and bring benefit to the organization According to Backer et al (2), besides traditional tools such as money and technology, human resource is the unique tool which can make the organization growth and creating a competitive advantage to cope with rivals We can imitate everything, but we cannot copy human resources It plays a vital role in the organization, that is the reason why there are many surveys and research about human resources conducting every year in order to get insight into human resources, and it will be more advantageous if the organization has sustainable human resources A high turnover rate means that the company lost its advantage and one critical tool to compete in the market Abassi and Hollman (3) defined that turnover rate in the company is the replacement of employees in an organization often on a year-on-year basis, which also reflects the rotation of workers between their occupation, companies, labor market as well as their employment status and the states of employment and unemployment, expressed as a percentage of total workforce numbers The turnover rate is the number of workers quitting their job and leaving their company to the total members of the company during a specific period
In the report from the human resource consultancy, Anphabe (4) shows that the employee turnover rate in Vietnam was on the rise in 2019 with 24 percent compared to 20.5% in
2018 and 19.1% in 2017 Moreover, below is the turnover rate of GVA; it is an initial symptom that GVA is facing in recent years is the increase in the resignation of employees in the organization Based on the data of the GVA's Human resource department from 2017 to 2019, the company's turnover rate varies from year to year Especially, the resignation rate recorded times in 3 years is shown in Table 1 and also in Figure 1as well:
Trang 13Year
Global Vietnam Aluminium Company
The turnover rate in the industry
Total staff
Leave staff
Recruitment staff
Turnover rate
Table 1: Total employee Turnover Rate in Global Vietnam Aluminium Company
Adapted from Global Vietnam Aluminium Company Human Resources Annual
Reports (2017 – 2019) (Internal Source)
Figure 3: Employee Turnover Rate in Global Vietnam Aluminium Company
Adapted from Global Vietnam Aluminium Company Human Resources Annual
Reports (2017 – 2019) (Internal Source)
Trang 14According to the above table and the chart showed that the turnover rate in GVA is very high Over 40% of employees leave GVA each year; the total employees also decreased from 962 in 2017 compared to 862 in 2019 In 2017 it had 370 employees turnover; it equals 64% of the number of staff Turnover rate demonstrates a 24% decrease over 2018 and increases in 2019 the number of employees' turnover rate quitting their job at GVA in
2019 growth 3% compared to the data in the previous year Employee turnover rates in
2018 and 2019 are 40% and 43%, respectively
2.2 The turnover rate of engineer
According to Taylor and Finley (5), the high rate of employee turnover in the company has been linked to the low skill of requirements in each level of positions in the company
In the statistical data, the author has already conducted a deep-dive analysis by the management, engineer, technician worker From now on, employees considered engineers In this research, I would like to focus more on the turnover percentage of engineers, because this is the key persons who are directly executing the company technology These engineers play important roles, but the turnover rate is also high It is shown in Table 2 and Figure 2 as below:
Employee turnover rate from 2017 to 2019
Table 2: Employee Turnover Rate of the engineers in Global Vietnam
Aluminium Company
Adapted from Global Vietnam Aluminium Company Human Resources Annual
Reports (2017 – 2019) (Internal Source)
Trang 15Figure 4: Engineer turnover rate at Global Vietnam Aluminium Company
Adapted from Global Vietnam Aluminium Company Human Resources
Annual Reports (2017 – 2019) (Internal Source)
As we can see, the number above shown that the percentage of engineer turnover level increases year by year Comparison between 2017 to 2018, it increased by 11% and 2018
to 2019; it increased by 15% In just three years, this number has risen to 26% from 56%
to 82% Furthermore, when compared these numbers to the report of Mercer – Talentnet
in 2017 is 17,8%, and 2018 is 10,5% These numbers have shown that the Human capital
at GVA is a big concern for the engineer Why are many engineers leaving their work? The management must find out and solve this issue thoroughly if they want to grow the organization in the future
Based on the information shown above, it demonstrated that the wave of resignation is happening at GVA With the exceptionally high turnover rate of the engineers, it is a severe symptom that must be considered if GVA wants its business to grow as its expectation
2.3 Turnover rate by reasons
Trang 16To clarify the factors that may impact on engineer turnover rate in GVA, the recruitment and development team invited engineers who leave the organization into the exit interview, identified as the target group, and they will receive a questionnaire to answer Bases on the data from exit interviews, they did a survey This survey is a tool for the Human Resources Department to approach the employee's reasons for quitting the job and find out real solutions for the problems (if available) In this case, the organization will clearly understand the reason why engineers want to quit their job and leave the company
Reasons for resignation Percentage in 2019
Table 3: Resignation reasons for the engineer in GVA (2019)
Adapted from GVA's Human Resources report engineer level (2019) (Internal Source)
Figure 5: Engineer resignation reasons in GVA
Adapted from GVA's Human Resources report engineer level (2019) (Internal Source)
27%
21%
36%
16%
Engineer reasons for resignation in 2019
Lack of training and development Poor management Lack of interest Poor workplace relationships
Trang 17According to the chart above, I recognize that the main reasons influencing the employee
to leave an organization is lack of interest It takes the highest percentage, with 36% on the reasons list for quitting the job in 2019 The leaving reason that has the second-highest proportion is that training and development There are 27% of respondents sharing that they leave the company due to this reason In the third place is the reason for poor management with 21% For this reason, they are having some types such as unfair work
or employees unhappy with their bosses, and they are considered a significant reason for their decision Moreover, 16% of employees to answer the reason for their leaving by answering due to poor workplace relationships directly Therefore, based on this data, it is possible to conclude that the key factors which influence on employees' job quitting decision is job dissatisfaction and these factors refer to unhappy or negative about work or work environment
2.4 Initial cause-effect map
Based on the face-to-face interviews with relevant people, including managers and engineers, the initial cause-effect map is presented as below graphic:
Figure 6: Initial cause-effect map
Source: In-depth interview
Symptom Potential
problem
Potential central
problem
Job dissatisfaction
Lack of interest
Lack of Training and development
Poor management
High turnover rate of engineer
Poor workplace relationships
Trang 18Potential problems
Lack of interest
We can see all the information above that illustrated that the percentage of employee turnover rate at GVA is very high and it is increased every year Through an in-depth interview with employees and managers in the company, I would like to show some results as follows:
Through the interview with Mr Lin – Deputy general director stated that
The reason for quitting their job and leaving their company is dissatisfaction due to low motivation, lack of interest and commitment to work Besides, they do not have a chance to improve and develop themselves
And Mr.Kuo – Head of Operation also comments that
I am such a headache with the number of the resignation of my subordinate because they do not have much chance for development due to the working environment, the opportunity to update their skills and job does not motivate them to work This will make them feel anxious and loss of interest in work And most of the employees who had in the interview admitted that they do not engage with the company because they do not see their future and do not know where is their position after five years more A lack of interest in work is the reason why employees are unhappy at work and dissatisfaction with their job Most employees want to do job duties that are more engaging to challenge themselves Bored work easily makes an employee to experience boredom and little incentive to concern themselves with workplace productivity And this will affect directly to job dissatisfaction in the organization
As Vindia (6) indicated that job satisfaction has a profound impact on performance in the workplace, it is not only created more comfortable and fun in the workplace but also has
a connection to be more efficient, more developed, and more productive Job satisfaction brings better communication, connection, more interaction, and positive collaboration between staff and managers Furthermore, it is improving the company's performance The higher rate of employee satisfaction can lead to higher job satisfaction, which motivates staff to perform at their best at all times and anywhere
Trang 19Page | 14
Moreover, when the organization can improve job dissatisfaction, this will lead the employee satisfaction with the company, it can bring so many benefits such as loyalty rate increase, the cost of retention and recruitment decrease, the employee performance can be improved
Ellis (7) admitted that job satisfaction is critical, which is essential to the overall development and success of the business The high rate of job dissatisfaction can transform the company from inside, reduce productivity, decrease employee’s performance, innovation, extension, customer dissatisfaction, and collaboration Moreover, it is also a factor to retention employees, creating a dynamic and industrious working environment in the company
Lack of training and development
According to Savickas (8), training and development are vital to the employee With the promotion of good policies, the employee will perceive to be fair suitable to their expectations In addition to this, training and development provide employees with opportunities for personal growth and more responsibilities Training and development create an opportunity for promotion in an organization by providing an opportunity for training and skills development that allows the employee to improve their abilities Training and development will make the employees' performance better when they perceive the opportunities for career development in the organization
Mr Than – Engineer equipment also stated that
We do not have an opportunity to upgrade our skills and this will make us lack of motivation to work here We do not see any support from colleagues, staff, and the working environment could be bored; we will leave if we found
a better chance to develop ourselves
After conducting in-depth interviews with some employees in the company – most of them are managers; I found that they are not happy with the company due to of chance for learning and growing themselves, do not have any support from colleagues and board
of directors Most of them intend to work in enterprise for a short time, they do not have
Trang 20any commitment to the company, and they are just working here to wait for a better opportunity and will quit their job without consideration
Additionally, training and development can include a reduction in voluntary resignation
by employees as they are likely to perceive career development opportunities in the organization Training and development are considered one of the factors that bring success for the company, and the turnover rate of the employees, especially core employees who voluntarily quit their job and leave the company, may make high impacts
on the firm's performance and company's management In the exit interview of GVA, 27% of engineers shared the reason was lacking in training and development Employees
do not have the opportunity to climb the ladder and grow for the career, that can foster dissatisfaction with a position This could mean that the employee will potential leave for another organization that can bring a better career growth opportunities for them Lacking career development in the company will also increase the company costs, such as hiring costs, training costs, and other costs The manager needs to focus on training and development for the staff to keep talented employees
Poor management
Sarah (9) indicated that leadership is that leaders motivate, inspire, and encourage their employees in order to promote, innovate, and create changes that shape the success of the enterprise
Managements play a strategic role in each organization They are not only a leader in the company but also a brother in the family to lead their relative in the right direction They are coached employees to be a great one who can bring many differences, many creative
to them, to the company, and they are the active listener and always fair with their colleagues They are driving employees going in the right direction – that is, a great leader
In opposite, poor leaders can destroy talents because they do not know how to maximize and develop talents They always want employees to show the best results but do not care anything besides that This is easy to make stressful for their staff They are not a listener but a dictator who always wants employee serving them, do anything they want and
Trang 21Page | 16
doing without complaints Moreover, this is what is happening at GVA Many employees quit their job and leave the company because of a leader
Mr Tuan - Mechanical Manager, said that
I am not happy with my boss because of management styles that make me feel uncomfortable and meet some stress at work when working with him, and even sometimes, he does not respect and blame me in front of others This makes me ashamed and self-deprecating
And Mr Senh – Electrical supervisor also complaint about his boss
My boss sometimes asks me unrelated things to work, but I have to answer his question and requirement If not, he will raise his voice to me I feel stressed and tired when working with him He does not motivate his employees when work finish well but always gives lots of complaints Moreover, I see that he is not fair in some cases For example, if he likes someone, everything they do is right and vice versa, always wrong
According to Mr Ping – IT Manager said that
Sometimes I did not understand clearly in my boss's decisions and requirements When I make suggestions for the job, sometimes he says yes, sometimes he says no then saying yes again This makes me confused, and then I do not know what the right is and the wrong direction, whether do my work suitable or not, and it makes me easy to frustrate with them and then leaving the job
Leaders who are inspired, give motivation, and innovate their workforce without micromanaging and drive employees to the right position to be creative, find new solutions, maximize their capabilities, and look to the future
According to Rene (10), employees can solve any problems in the job on their own if the manager knows the way to suitably used behaviors to communicate with them By contrast, they just accomplished their job with an average result with weak energy or will quit their job and leave the company if this is happening regularly Managers who disengage from their employees and focus only on results without providing inspiration,
Trang 22motivation or support are often unaware that they may be a major cause of job dissatisfaction Employees are a valuable asset of each enterprise; that is the reason why attracting and retaining these employees is the best way for any business to ensure success in the future
Workplace relationships
George et al (11) indicated workplace relationships in an organization is very important
in each enterprise, its creating employee's motivation, increased company productivity, employee performance as well, maintain good working environment base on employees dedications, collaboration, and employees loyal with or organization and ensure the long term success and development of the company Workplace relationships is crucial to closing the deal Not only that, but a winning culture improves employee engagement, leading to better retention and higher rates of performance, easily develop in the future Tim (12) has commented that poor relation is a critical challenge at the workplace; it is a barrier between managers and employees This cannot exploit their full potential thoroughly
Mr Kuan - the Extrusion Supervisor, admitted that
Sometimes, I do have not enough motivation to accomplish work because of relationship I am Chinese and come here to work, and maybe it is difficult for me to adapt to the culture For example: sometimes my colleagues are very noisy at work and lots of gossip around the office It leads to unwanted cliques that divide the workplace, turning everyone against each other and creating a culture of distrust It is challenging for me and takes time to complete my work That is why some months, I was evaluated as underperformed staff I have to do a lot of tasks to finish my task and sometimes I very tired because of the workload I was stressed and considered leaving my work and turn back to my country It is so difficult for
me to find the connection here
It is not only a bad relationship drive employees away from the business, but it will also deter job seekers from taking to the organization seriously; the talent candidates would
Trang 23Page | 18
turn down the perfect job if they thought the culture was not suitable and they will look for less toxic company culture In order to improve a better working environment, GVA should create more events, the opportunity for cultural exchange, and doing teamwork to get employees closer Employees will create more surprises when the company spends time and share the interest for them When they know anything and helping others more grow together, the company will have more success and development
2.5 Updated Cause-effect map
There are noticeable symptoms of the turnover rate in the organization, which requires much more change to improve the current situation from the board of directors management in the company Therefore, it is the critical importance for GVA to figure out what are the real problems and their causes to find the best way to decrease the number of leave staff and keep talented staff in the company
Figure 7: Updated cause-effect map
Trang 24When dissatisfaction is high, employee turnover rate to be high; when dissatisfaction is low, the employee turnover rate to be low However, as with the other relationships with dissatisfaction to make the employee feel their jobs are essential
A relevant department of an organization in employee retention, the Human Resources department should build detailed plans as well as to conduct HR practices to reduce the job dissatisfaction in an organization In-depth research that the more employees feel satisfied and fully appreciated, the more performance of the work, and as a result, employee turnover rate tends to be reduced
3 Problem justification
3.1 Problem definition
As the researcher mentioned in the previous section, to figure out how the turnover rate goes down at this period with the symptom "High turnover rate of engineer" the author will analyze to find out what the problems are Based on an internal interview with the manager as well as scholarly literature, this study aims to find out the potential central problems that may be the root reason for the symptom By digging deep into this, they confirmed that job dissatisfaction is the problem that the company is suffering
Factors considered such as:
- Poor workplace relationships
- Lack of opportunities for career and development
3.2 Problem existence
According to the interview with engineers, many engineers come and go within a year, and even some engineers work for few months because they do not have any inspirations
Trang 25Moreover, poor workplace relationship is also happening in GVA It is also caused by leaving Most of the engineers admitted that they are boring, tired, no motivation because
of workplace relationships to finish their job, and there are no events to connect employees Neil (13) advocated that workplace relationships is a barrier to maximize company productibilities It is limited to employee engagement and building trust
Furthermore, David (14) shows that poor relationship has an impact on the workplace; it likes a malicious virus that is spreading very fast in the company Especially in the workplace where everybody spends at least 8 hours a day in the company Annie (15) stated that poor relationships is a cause of employees' stress, bad performance, break relationships, and connections in the workplace
As Kevin (16) stated, employee satisfaction is the emotional commitment that means satisfaction employees does not only care about work but also care about the colleagues
as well as care about the company They do not work for a high salary or just for a high position, but they work on the company's goals When an employee reaches the satisfaction mean that they are engaged and they will give the company the best result and work as their best Satisfaction makes employees lead to the best business result, the best quality, and improved performance Besides, Bulbul et al (17) stated that employee dissatisfaction played a core role in the success of the business Employees have just satisfaction with enterprise if it has an excellent working culture where they can express their concerns and have the opportunity to grow and develop their potential
Also, compared to other companies with strong financial resources If the company cannot retain employees' talent, it is easy to lose the big advantage of competition and easily failed very quickly To decrease employee turnover rate, the company has to
Trang 26reduce the job dissatisfaction in order to increase the loyalty of employee to the company
as long as possible
To support my opinion I would like to quote the saying of Mr Patrick – Sales Manager
Employees do not intend to work here for a long time because lacking a future career and the motivation program that keeps them stay with the company That is the reason why they easily quit their job
And Mr.Wei – HR manager also comments that
All of the reasons in the exit interview with employees who leave the company show that they are not satisfied with the company, as well as the policy in the company This makes them easily feel down at work and it will
be more difficult if the company do not focus on and improve it
Furthermore, during the interview, most of them said that the company should create training programs to update employees about knowledge and skills The employees considered leaving the company because of an unhealthy working environment Job dissatisfaction with the company is the biggest problem of GVA that needs to improve immediately
3.3 Problem importance
Job dissatisfaction is always a hot topic of many forums and workshops about human resources Nevertheless, it is a still less enterprise to pay attention to this issue because of time, money, and even measuring tools From my point of view, job dissatisfaction is the final result of many activities that the Human Resources department must focus on and lead to It is a vital and a direct impact on business results Why I am saying like that, job dissatisfaction produces low morale at work is highly undesirable If employees have the feeling that their jobs are meaningless and boring, they will have a negative attitude which will definitely lead to a decline in productivity When the organization can improve the job dissatisfaction of employee, that can reduce employee turnover rate, increase performance and efficiency, retain talents at a high percentage of satisfaction they make added values, more profits to the company The most important is the employees happier When organization can improve job dissatisfaction, this will make
Trang 27Page | 22
employee more satisfied with the company, they will inspire others, connect everyone in the organization, and everything they do with high energy and enthusiasm, and easy to meet the best results
Solomon et al (18) studies have found the direct impact between employee satisfaction and business performance outcomes such as talent retention, more performance, and profitability, loyalty, and safety According to Natalie (19), employee satisfaction considered a miracle drug in workplace challenges It has some pretty miraculous impact
on the organization and creates excellent organizations Alison (20) also stated that employee satisfaction had become the central point in the workforce of each organization because of keep employees happy; the company needs to have happy and engaged employees She has listed out some benefits of employee satisfaction as follows: high talent retention, lower turnover, higher performance, increased profitability, and finally is
increased employee loyalty
4 Causes validation and solutions
4.1 Potential causes
Based on literature and in-depth interviews, the author found some causes that impacted
by the main problem – Job dissatisfaction Some factors are affecting the level of job dissatisfaction as follows:
- Lack of career development
- Lack of leadership
- Unprofessional working environment
This is shown in the final cause and effect map and analyze in detail as the following:
Trang 28Figure 8: Final cause-effect map
4.1.1 Lack of career development
Doing business is never easy In today, doing business is more difficult because we must face many challenges not only outside the business but also inside of the company The issue in the company now is the quality of human resources and how to keep talents to stay with the company If employees do not see the company investing in their future with the company, they are going to look somewhere else GVA has just been given a high wage in order to attract talents, but a high salary is not a good way in long term development There are many employees quit their job and leave the company, not because of the salary but also other reasons such as work-life balance, working conditions, leadership, working environment, especially their career and development in the future The organization will be more successful and sustainable development if they know the way how to hold talents who are ready to take over a new role immediately Career development involves creating an opportunity for promotion in an organization by
Trang 29a voice and making the decision on their scope This will be less costly than others, such
as the cost for replacement is exceptionally high due to recruitment costs, training, and the opportunity cost because a new employee needs time to adapt to the company
4.1.2 Lack of leadership
The management team has an essential role in an organization They are responsible for motivating employees; help their employees promote their abilities They also do the planning, organizing, and controlling in the organization One of the main reasons employees think about leaving a company is that their leader does not care about them and poor management in the workplace According to Barling et al (22) indicate that employee satisfaction significantly based on the leadership style Managers with poor leadership skills seldom give feedback on employees' performances They easily disengage from their employees and just focus only on the working results without providing help, motivation, inspiration, or support
On the other hand, effective managers know their employees want to work with people who have a vision who can inspire them and people who can lead them in the right direction Besides, employees also need recognition for their efforts and accomplishments Managers who take the time to understand their employees understand the reasons for employee dissatisfaction can find the right and good solutions to turn unhappy employees into motivated performers and have the best working results
4.1.3 Unprofessional working environment
In the modern era, most of us spend much time in our life at the workplace; one person spent at least 8 hours a day in the office That is the reason why employees prefer to work
Trang 30for a happy and professional workplace environment It depends on the work environment that affects the organization in a good side or bad side If the working conditions are good, the employee will find it easier to do their job On the other hand, if
an employee receives poor working conditions, they will find it more challenging to get their jobs done Nowadays, organizations are facing several challenges because of the dynamic of the environment In order to increase efficiency, performance, and job commitment of employees, the enterprise must create a good workplace environment and satisfy the needs of its employees by providing good policies and good working conditions According to Jonny (23), stated that the working environment is the crucial factor to impact on employee satisfaction A working environment can directly impact the productivity, health, morale, and job satisfaction of employees within it If an employee in the company is feeling down, they will make the others down with them The poor working environment is not only decreasing productivity but also the cause of employees to quit their job and leave their company Abdul et al (24) also stated that a poor workplace environment is a barrier for employees to achieve their potential and promote their full capacity So that it makes the organization recognize the importance of the working environment Therefore, it can be said that when the organization has a friendly and supportive environment, this can lead to decreased employee turnover and job dissatisfaction
- Poor workplace relationships
- Lack of opportunities for career and development
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These criteria of employee turnover have resulted from the main causes which are raised
by participants of the in-depth interviews, involving:
- First: Lack of career development
- Second: Lack of leadership
- Third: Unprofessional working environment
Main causes of the problems
Human resources are manpower in the organization and one of the critical success factors
of the business The company needs to nurture, continuously improving the quality and efficiency of the workforce to adapt its expectation in the future Improving employees' abilities and knowledge are increasing quality performance, better workforce, and equips employees with the skills they need in order to meet company employers' performance expectations When employees have enough skills, it is easy to accomplish their job with high performance and a positive effect on others The organization needs to provide its employees with skills training and can assign their job duties and responsibilities more appropriately Improving skills and abilities are also preparing employees for an internal promotion or career development This will make employees happy and satisfied with their job; they will engage with the company, and contribute more value, bring more benefits to the organization
Mr Wei – Human Resources manager comments that
Employee wants to upgrade their skills to do their job better, after that looking for promotion and development in the future Besides skills, they also look for a healthy and safe working environment to work for a long time Employees easy to quit their job and leave the company when they meet a poor working environment
Indeed, the poor working environment is greatly affected by the morale of employees in both positive and negative ways and affects to performances of the organization Eshiteti
et al (25) state that the working environment has a crucial role in job satisfaction of employees in the company An unprofessional working environment easily restricts employee abilities, their potential capacity, and hinder employee performance In order to
Trang 32increase employee motivation, satisfaction, and employee commitment, organizations need to contribute and spent more time improving the working environment
Besides, Mr Thuong – Chief Accountant complaints that
The company needs to innovate the workplace environment to be healthy in order to increase employee satisfaction, decrease employee turnover, retain and attract talents
Based on the in-depth interview with employees at GVA, most of them admitted that when working in this company, they feel unhappy and demotivated due to the unprofessional working condition They feel that the company has no support, no teamwork, no sharing, and employees are jealous of each other The workplace is everything around employees that affect their performance and their satisfaction; that is the reason why the company needs to improve and upgrade their working environment for the development and successful (26) The world is changing so fast; each of the employees needs to update skills and knowledge to adapt new challenges and a new environment Besides the changing of employees, each organization also needs to transform to adapt to science Updating skills is crucial because it reflects the employee's commitment to finish their job well and give a good result (27) Employees will be obsolete and backward due to a lack of professional working environment; this also makes employee performance will be below The organization needs to keep talented employees and improve their knowledge, their skills for succession strategy This is the most vital tool to keep talented employee satisfaction and engaged them with the organization because this can make them see their opportunity and their career development in the future Besides, make the plan to recognize potential employees After that, training and exploit their strengths in order to fill in the key positions This will be essential for reaching the business objectives and make the organization more successful (28) Moreover, when the company has the quality pool of talents who are ready for the replacement if someone else leaves the company That leads the organization easy to improve employee morale and satisfaction and finally achieving company goals (29)
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To sum up, with the potential causes and information from an in-depth interview with employees and managers, the main cause that needs to be solved in GVA is the unprofessional working environment
Here are two solutions that can improve the working environment:
- Provide training sessions to improve employee professional working skills and knowledge for more sharing
- Encourage teamwork and motivate employees to challenge themselves
Solution 1: - Provide training sessions to improve employee professional working skills and knowledge for more sharing
When new employees join the company, most of them all qualified and experienced in their position Nevertheless, that will be outdated if they do not update skills and make them feel less valuable to the company An attractive workplace provides a condition that accepts employees to do their job effectively, help them use the best of their knowledge and skills Because knowledge and skills are the critical success factors for employees, offer training sessions to employees so that they can learn new knowledge and new skills
in order to support their job This does not only increase employees' performance by offering training but also gives them the belief that company value their work and believe
in their abilities to grow with the company, and it will keep employees continue to stay with the company if other job opportunities come up The workplace needs to be proper
to decrease employee stressed while getting their job done According to Brill (30) stated