With the secondary data provided by Human Resources Department and primary data collected during the in-depth interviews with three groups of the company’s leaders and the employees who
Trang 1UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
-PHAM THI KIM HUYEN
LOW LEVEL OF MOTIVATION IN
DATA ANALYSIS TEAM AT
IMPERIAL TOBACCO VIETNAM
MASTER OF BUSINESS ADMINISTRATION
Ho Chi Minh City – Year 2020
Trang 2UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
-PHAM THI KIM HUYEN
LOW LEVEL OF MOTIVATION IN
DATA ANALYSIS TEAM AT
IMPERIAL TOBACCO VIETNAM
MASTER OF BUSINESS ADMINISTRATION
SUPERVISOR: DR NGUYEN THI MAI TRANG
Ho Chi Minh City – Year 2020
Trang 3TABLE OF CONTENT
LIST OF FIGURE 1
LIST OF TABLE 1
Executive Summary 2
Acknowledgements 3
1 COMPANY INTRODUCTION 4
1.1 Company overview 4
1.2 Organizational structure 5
2 PROBLEM CONTEXT 7
2.1 Symptoms 7
2.2 Symptom validation and justification 11
3 PROBLEM IDENTIFICATION 14
3.1 Problem mess 14
3.2 Potential Problems and validate the main problem 16
3.2.1 . Income dissatisfaction - 16
3.2.2 . Poor working environment - 18
3.2.3 . Low level of motivation - 21
3.3 Updated preliminary cause and effect map 24
3.4 Problem justification 25
4 CAUSE VALIDATION 27
4.1 Potential causes 27
4.1.1 . Lack of Intrinsic motivation: - 28
4.1.2 . Low level of Extrinsic motivation: - 29
4.2 Cause justification 31
5 ALTERNATIVE SOLUTIONS 33
5.1 Alternative solution 1: Eliminate benefits inequality 33
5.2 Alternative solution 2: Ensure the employees’ job security 36
5.3 Solution justification 38
6 ORGANIZATION OF ACTIONS 41
6.1 Contents of organization of action 41
6.2 Timeline of implementation 42
7 CONCLUSION 44
Trang 48 SUPPORTING INFORMATION 45
8.1 Interview Guide 47
8.2 Questionnaire 50
8.3 Summary of transcripts 51
REFERENCES 69
Trang 5LIST OF FIGURE
Figure 1 ITVN Operation diagram 5
Figure 2 ITVN Organization Chart 6
Figure 3 Turnover trend - Talentnet – Mercer post survey report 2018 8
Figure 4 Top 3 & Bottom 3 Turnover - Talentnet – Mercer post survey report 2018 10
Figure 5 Turnover rate at ITVN 12
Figure 6 Preliminary cause and effect tree 15
Figure 7 Updated preliminary cause and effect map 24
Figure 8 Cause and effect map 31
LIST OF TABLE Table 1 Total employee turnover rate at ITVN 7
Table 2 Breakdown employee turnover rate at ITVN in 2018 and 2019 9
Table 3 Turnover rate of Data Analysis Team 11
Table 4 Replacement costs of Data Analysis Team 13
Table 5 Costs to implement solution 1 35
Table 6 Costs to implement solution 2 38
Table 7 Questionnaire 40
Table 8 Survey results 40
Table 9 Detailed action plan 41
Table 10 Implementation plan 43
Trang 6Executive Summary
Employees is often considered as the most valuable assets in all organizations Recruiting and retaining employees in organizations is not only tasks of Human Resources but also involves all other departments Therefore, managers and leaders in organizations should care about employees, understand their expectations as well as their difficulties, then give ideas to help organizations in establishing appropriate policies to attract and develop employees to retain them By doing so, organizations can enhance employees motivation and reduce employees turnover rate, which helps to increase employees productivity and company performance.
The purpose of this research is to find out the main problem and the root cause leads to the high turnover rate in Data Analysis team at Imperial Tobacco Viet Nam Representative Office recently With the secondary data provided by Human Resources Department and primary data collected during the in-depth interviews with three groups
of the company’s leaders and the employees who are currently working in Data Analysis team and who are also left the company, it revealed that income dissatisfaction, poor working environment, and low level of motivation are potential problems lead to the high turnover rate in Data Analysis team at Imperial Tobacco Viet Nam Representative Office.
Further investigating the underlying problems by analyzing the interview results and using the theories from literature, the main problem is identified as the low level of motivation, especially extrinsic motivation, which caused by benefits inequity and job insecurity, that leads to the high turnover rate in Data Analysis team at Imperial Tobacco Viet Nam Representative Office.
After finding the root cause of high turnover rate, alternative solutions are designed and justified The solution to eliminate benefits inequity as well as reduce job insecurity by revising the company benefit policies and enhancing engagement meetings for sharing company strategies to the employees is suggested by the managers, selected by the indirect employees and supported by the company Director for execution Then, the detailed action plan of this solution is presented to the company for implementation to solve the problem.
Trang 7I would like to express my appreciation to all people who supported me during my studies First, I would like to send my thankfulness and special appreciation to my supervisor, Dr Nguyen Thi Mai Trang, who has kindly supported, guided, advised, and motivated me to complete this thesis Then, I would like to thank my managers, my colleagues at Imperial Tobacco Vietnam Representative Office who gave me chances for conducting interviews and spent their valuable times for giving me comments and opinions which helps me to come up the results of this thesis.
In addition, I would like to send my regards to all of my classmates of MBA 9 for their support, encouragement and giving me strength in all the time writing this thesis.
Trang 81 COMPANY INTRODUCTION
1.1 Company overview
Imperial Tobacco is a group of subsidiaries of Imperial Brands ( 1 ), one of the biggest corporations
in tobacco industry in the world Imperial Tobacco subsidiaries manufacture and trade a range of cigarettes, tobacco products, cigars, and tobacco accessories such as papers and tubes Imperial Tobacco International Limited Company in United Kingdom has established its representative office in Ho Chi Minh city, Viet Nam since 1995 and the office is called Imperial Tobacco Vietnam Representative Office (ITVN) ITVN’s scope of activities is a liaison office, conducting market surveys, identifying and accelerating the trade opportunities in Vietnam market on behalf of the Head Office in United Kingdom ITVN is not allowed to conduct any directly profitable activities in Vietnam, but only supports the Head Office (Imperial Tobacco International Limited Company in United Kingdom) to boost sales of the company’s products in Vietnam market Therefore, ITVN is responsible for spending investments to increase the quantity of the company’s products selling
in Vietnam market, because the more company’s products are sold in Vietnam market, the more profits the Head Office are earned.
The key product of ITVN is Bastos cigarettes, which are producing by local manufacturer under the licensing contract with Imperial Tobacco International Limited Company in United Kingdom Bastos cigarettes have been produced and sold in Vietnam market for nearly 25 years, and up to now, Bastos cigarette brand is in the list of top ten selling brands in Vietnam, gaining its market share around 5% (based on data of AC Nielsen 2018) Bastos cigarette brand is strength in mainstream segment, having price ranges from 10.000 dong to 12.000 dong per pack of 20 cigarette sticks The key competitors of Bastos cigarettes in the same price segment is Thang Long cigarettes and Sai Gon cigarettes, which are produced by Vinataba, a state-own corporation.
The operation diagram of Imperial Tobacco in Vietnam market can be described
in the Figure 1 as below:
Trang 9Investment to distribution channel to boost sales
Dong Nai Food Industrial Corporation (Manufacturer)
Distribution channel of Bastos products in Vietnam market
Distributors in Vietnam Figure 1 ITVN Operation diagram
(Source: ITVN Management Department)
Besides, Imperial Tobacco Vietnam Representative Office inherits six values from Imperial Brands: we can, I own, I am, we surprise, I engage, we enjoy Those values are focused to employees’ competency, performance, motivation, and retention Furthermore, Imperial Brands has built the Leadership Expectations that give opportunities for not only leaders but also employees to drive performance, to take accountability, to build capability, to lead by example, to improve and learn, and to create great teams.
At the end of the year 2019, ITVN has 20 direct employees who are working in 6 departments in ITVN, which are: Operation Support, Human Resource (HR& Admin), Finance, Marketing, Sales, and Business Intelligence Besides, ITVN also has 12 indirect employees working in Data Analysis Team who are reported to Business Intelligence Manager of ITVN Those indirect employees working in Data Analysis Team are having their labor contracts signed with the labor supply agency of ITVN, Humidor Company Though having salary paid by ITVN through Humidor
Trang 10Company, the recruitment process of Data Analysis Team is done by Human Resource
Department of ITVN This means ITVN is responsible for recruitment, training, appraising, and
paying salary to the direct and indirect employees However, although working in the same office,
there is a difference in benefits between the direct employees and the indirect employees of ITVN,
in which the direct employees who have labor contracts signed with the Representative Office
-have some additional benefits such as yearly performance bonus, healthcare insurance for their
family, while the indirect employees – who have labor contracts signed with the labor agency – do
not have those types of benefits Furthermore, the direct employees of ITVN are official
headcounts of Imperial Brands, so they have employee codes which can be used to log in the
intranet websites and access to online resources of Imperial Brands The organization structure of
ITVN is described in Figure 2 below.
Labor contra ct signed with ITVN
Lab or
contr act
Data signed
Figure 2 ITVN Organization Chart
(Source: ITVN Human Resource Department)
Data Analysis team has been established since 2015, and the purpose of having this team is to
collate and analyze market data of tobacco industry and ITVN’s competitors in Vietnam market.
The daily tasks of Data Analysis team are to input daily data collected from market to the internal
system, keep track of Bastos cigarettes sell-in, sell-out volumes and cigarette inventories of
distributors and wholesalers, to run and analyze the reports regarding the Bastos cigarettes and
Trang 116
Trang 12decision making The Director is responsible for all operations and activities of ITVN, as well as provides strategies to the head quarter for future growth of ITVN.
Before 2015, without Data Analysis team, ITVN had to buy the market data of tobacco industry and ITVN’s competitors in Vietnam market from AC Nielsen, which costs about 5 billion dongs per year Therefore, from 2015, the Director of ITVN made the decision to form up a Data Analysis Team to do collating and analyzing tasks regarding the market data The total employment costs for Data Analysis team is about 2 billion dongs per year, and the total cost for collecting raw data from market is around 1 billion dongs per annum Having Data Analysis team, ITVN can save about 2 billion dongs per year while ITVN still has the same results of having reports regarding the market data of tobacco industry and competitors in Vietnam market.
2.1 Symptoms
Though Imperial Tobacco Vietnam Representative Office and its Group has a strong and clear strategy
to attract, motivate, and retain people, the voluntary turnover rate of the employee at ITVN was high in the past two years, and increased significantly in 2019 This is a symptom that needs to be validated, identify the problems, analyze and diagnose the problems to find out the root cause, then provide the solutions and implementation plans to improve the company situation.
Based on the data collected from Human Resource Department of ITVN, the voluntary
turnover rate of total direct and indirect employees at ITVN is showed in Table 1 as below:
Table 1 Total employee turnover rate at ITVN
(at the year-end)
Trang 13Turnover rate is the percentage of the employees leaving the organization during a period of time Turnover rate is calculated by using “the total number of employees leaving the organizations during the month divided by the average number of employees during the month”, postulated by Phillips as cited by Hernández et al ( 2 ) Table 1 showed that the turnover rate of total employee at ITVN in 2019 at 30%, which
is significantly higher than 2017 and 2018 and has an increasing trend year on year Besides, the post survey seminar report from Talentnet-Mercer in October 2018 ( 3 ) (see Figure 3) showed that the voluntary staff turnover rate is 15.1% in 2017 and its trend is to increase to 15.6% in 2018 in multinational corporations (MNC).
Figure 3 Turnover trend - Talentnet – Mercer post survey report 2018
Comparing the employee turnover rate at ITVN during the past four years with the staff turnover rate in local companies and also multinational corporations, it can say that the total employee turnover rate at ITVN is significantly high in 2018 and 2019.
As ITVN is a representative office of Imperial Tobacco International Limited Company in United Kingdom which is a subsidiary of Imperial Brands - a global corporation - therefore, ITVN inherits all factors of a multinational corporation Since cigarette and tobacco is a special type of business that requires Vietnam Government’s controls, thus it is not allowed Imperial Tobacco International
Trang 14Limited Company in United Kingdom to establish a company limited in Vietnam, but just only a representative office Despite the business license of a representative office, ITVN is still considered a multinational corporation, same as its competitors such as British American Tobacco (BAT), Phillip Morris International (PMI), and Japanese Tobacco International (JTI) Therefore, the employee turnover rate of ITVN can be compared with the staff turnover rate in MNC.
In addition, the breakdown turnover rate data for 2018 and 2019 provided by Human Resource Department of ITVN (Table 2) showed the details of turnover rate by department at ITVN There is a huge gap in turnover rate between the direct employee and the indirect employee at ITVN, in which the turnover rate of the direct employee is less than 10% in these two years, while the turnover rate of the indirect employee at ITVN is significant high in 2018 (50%) and 2019 (64%) Due to the high turnover rate of the indirect employee at ITVN, which is Data Analysis team, leads
to the increasing in total turnover rate of the whole ITVN, 23% in 2018 and 30% in 2019.
Table 2 Breakdown employee turnover rate at ITVN in 2018 and 2019
(Source: ITVN Human Resource Department)
Besides, the post survey seminar report from Talentnet-Mercer in October 2018 ( 2 ) also showed that the highest turnover rate in 2018 is 37.6% belongs to Retail industry in Vietnam market (see Figure 4).
Trang 15Figure 4 Top 3 & Bottom 3 Turnover - Talentnet – Mercer post survey report 2018
ITVN is participating in annual surveys conducted by Talentnet-Mercer on human resources topics, such as compensation and benefits trend, voluntary staff turnover trend, which conducting within organizations in retails industry and also in tobacco industry The post survey report 2018 of Talenet- Mercer has been conducted with 602 organizations in 16 industries This survey report shows the trends of voluntary staff turnover rate within those organizations and industries.
Based on the data in Table 2, the turnover rate of Data Analysis Team at ITVN in 2018 is significantly higher than the staff turnover rate in MNC, 50% versus 15.6%, and about 2.5 times higher than the staff turnover rate in local company (20.2%) Furthermore, this turnover rate of Data Analysis Team in 2018 is higher than the highest turnover rate in Retails industry
in 2018 of 37.6% (Figure 4) In 2019, the turnover rate of Data Analysis Team at ITVN increased
to 64% (Table 2), that is a symptom needs to identify its problems and causes.
As stated in Section 1.2 Organizational structure, Data Analysis team is indirect employees of ITVN, whose employment contract has been signed with the labor supply agency of ITVN, Humidor Despite signing labor contracts with the agency, Data Analysis Team is following the recruitment and training processes of ITVN, working in ITVN’s office, and reporting to ITVN’s Business Intelligence Manager Thus, Data Analysis Team is reported as indirect employees of ITVN, having their recruitment and training costs, and salary paid by ITVN through agency It can
be said that Data Analysis team is part of the ITVN workforce and cost to ITVN’s employment
Trang 16costs As a result, any change in direct and indirect employees leads to the increasing in the employment costs of ITVN Therefore, it is crucial for ITVN to manage their workforce
to eliminate their employment costs for better performance Hence, the high voluntary turnover rate in Data Analysis Team is a symptom that the Management of ITVN needs to investigate its causes and design solutions to solve the issue.
2.2 Symptom validation and justification
With the detailed data provided by Human Resource Department of ITVN in Table 2, it showed that Data Analysis team has the highest turnover rate comparing to other departments at ITVN during the past four years The turnover rate of Data Analysis Team is more than two times comparing to the total turnover rate of ITVN It is showed in Table 3 below:
Table 3 Turnover rate of Data Analysis Team
(at the year-end)
(Source: ITVN Human Resource Department)
The data from Table 3 showed that the turnover rate of Data Analysis team in 2019 is significantly higher than 2018, 64% versus 50%, and it is more than two times higher than
2017 (29%), with an increasing trend since 2018 It can say that the turnover rate of Data Analysis team is the highest number among the turnover rate of all the departments at ITVN (Table 2), and also is much higher than the retails industry data (Figure 4).
Total turnover rate of ITVN is illustrated by the chart below (Figure 5)
Trang 17Total turnover rate of ITVN
Figure 5 Turnover rate at ITVN
Though the interview, Ms Tran Hanh – HR Manager of ITVN, said that:
“We have to pay to the agency for the recruitment fees, at about 2 times of monthly salary Besides, we need to spend time for induction, training, then the newcomers can familiar with their tasks after about two month During this time, we have to pay overtime wages for the others to complete the task requirements on time Also, it costs our managers time for interviewing and training”.
Mr Tran Son – Business Intelligence Manager of ITVN, shared his opinions:
“I am the person suffering most for the resignation of my team members I have to re-assign tasks for others when someone leaving till we have a replacement one Also, it takes my time for interview, training, coaching, assessing newcomers It takes at least 2-3 months for the new one to get familiar with their tasks”.
According to Mr Andrew Wang – Director of ITVN, the company performance is decreasing because the company has to spend money for recruitment and training costs Besides, the higher the turnover rate, the lower the productivity of the employees He said:
Trang 18“Of course, we have to spend for recruitment and training costs The productivity of a whole team is also lower than normal New employees need time to get used to their work, to get familiar with their team, and to coordinate smoothly with colleagues to have the teamwork tasks done In addition, other people in the team need to spend their time to guide newcomers, therefore, the team’s work is slowed down”.
The data from Human Resource Department of ITVN (Table 4) showed the replacement costs spent for recruitment and training, overtime wages paid for other team members to complete the reports on time, facilities such as uniform and working tools of Data Analysis Team in the past two year 2018 and 2019.
Table 4 Replacement costs of Data Analysis Team Replacement cost of Data Analysis team Year 2018 Year 2019 Increasing %
cost of Data Analysis team
(Source: ITVN Human Resource Department)
Table 4 showed the replacement cost of Data Analysis team in 2019 increases 177% versus 2018, and the percentage of replacement cost in total employee costs of this team increases from 9.1% in 2018 to 15.4% in 2019 That means ITVN has paid more for Data Analysis team's replacement costs in 2019.
According to Michael et al ( 4 ), labor cost is significant, then the leakage of human capital by unnecessary turnover is one of important factor affecting to the performance of the company.
Trang 19According to Lashley and Chaplain as cited by Michael et al ( 4 ), employee turnover is not only a significant tangible money cost but also intangible or hidden cost related to loss
besides visible costs of turnover such as costs of termination, advertising, recruitment, selection, hiring, training, and assigning, there are many hidden costs such as disruption
of customer relations, the erosion of morale and stability of those who remain, the loss
of valuable time which the new comers acquire their tasks and achieve efficiency.
Through the interview results and the data provided by Humane Resource Department of ITVN, the visible replacement costs of Data Analysis team can be calculated and recorded, while other hidden costs such as low employee productivity, loss of time of managers, which cannot be calculated Since the turnover rate of Data Analysis team at ITVN is the highest among other departments at ITVN, and it has an increasing trend, therefore, further investigations are focused
to the symptom of high turnover rate of Data Analysis team at ITVN.
3.1 Problem mess
In order to find out the problems leading to high turnover rate in Data Analysis team at ITVN, qualitative research method were used and in-depth interviews have been conducted with three groups The first group consists of three persons, who are at the manager levels: Ms Tran Hanh - HR Manager, Mr Tran Son – Business Intelligence Manager, and Mr Andrew Wang - Director of ITVN The second group is the employees currently working in Data Analysis team, and the third group is the employees who left Data Analysis team.
Ms Tran Hanh – HR Manager, shared the results from her exit interviews that people left Data Analysis team because of having better jobs with higher salary and better benefits From her point of view, reasons for employees working in Data Analysis team quitting their jobs are low salaries and unequal benefits that make them dissatisfied.
The interview with Mr Tran Son – Business Intelligence Manager, has revealed some reasons that people leaving the company because of low salary, no career growth, and unstable jobs According to Mr Tran Son - Business Intelligence Manager, people in Data Analysis team quit their jobs because of job insecurity and no retention plan that makes the staff feel unengaged with the company.
Trang 20The opinion from the Director, Mr Andrew Wang, that workplace condition makes Data Analysis team unconnected with other people in the company According to Mr Andrew Wang, may be the nature of the tasks of Data Analysis team which requires a silence working area to focus on their tasks, so this makes them low-engaged with other groups in the company.
The interviews with the staffs who are working and who left Data Analysis team released some information about their decision of quitting their jobs There are low incomes, inequity benefits, isolation and working apart from other departments, job insecurity, no retention, no career growth opportunities and development plans.
With all the information collected from the first round interviews with the HR Manager, the Business Intelligence Manager, the Director, the existing staff and the staff who left Data Analysis team, and combined with the theory in the book Problem Solving in Organizations of
Joan Van Aken and Hans Berends - Third edition 2018 (item 4.3, page 55-58) ( 6 ), the potential problems can be described in the preliminary cause and effect tree as below:
Low engagement Isolation
environment
Lack of Motivation
development plan
productivity
Figure 6 Preliminary cause and effect tree
Trang 213.2 Potential Problems and validate the main problem
From the above preliminary cause and effect map, there are three potential problems that identified from the interviews are income dissatisfaction, poor working environment, and low level of motivation which caused the high turnover rate in Data Analysis team at ITVN Further analysis from the interview results and combined with literature will help to find out the main problem that leads to high turnover rate in Data Analysis team at ITVN. 3.2.1 Income dissatisfaction
According to Mercy et al ( 7 ), salary is defined as a fixed amount of money paid to a worker usually measured at a monthly and yearly basic, salary is compensation that an employer paid to an employee in return of work done Besides, Matz et al and Crow et al as cited by Schuck et al ( 8 ), stated that salary factor is important in understanding job satisfaction and organizational commitment as well as voluntary turnover In addition, Carraher ( 9 ) indicated that salary and satisfaction with salary are important factors for attracting and retaining employees Luna-Arocas
et al ( 10 ) stated that salary and benefits are related to pay satisfaction According to Luna-Arocas
et al ( 10 ), money is a motivator, and there is a positive relationship between income and satisfaction This means that low salary and uncompetitive benefits lead to income dissatisfaction
of the employees, then reduce their retention to work Therefore, if employees are unsatisfied with their salary, they may look for another job to get a better income.
The interview conducted with Ms Tran Hanh - HR Manager, mentioned that one of the reasons why the employees at Data Analysis team left the company is income dissatisfaction She said:
“I usually conduct exit interviews with people who want to leave the company Some of them said that they received job offers with higher salary Some people said that they were unhappy with their benefits here”.
An employee who is currently working in Data Analysis team – Mr Nguyen Tung, shared his opinion about the salary:
“My salary is not very attractive I know that the salary will be reviewed and
increased every year, but the percentage of increasing is not much”.
The results from interviews with another employee – Mr Nguyen Thien, who already left Data Analysis team, indicated that he did not happy with his salary and benefits He shared:
“The salary there is lower than my current job In addition, benefits are not attractive
We don’t have annual performance bonus, except for the thirteenth month salary.”
Trang 22In addition, Mr Tran Son – Business Intelligence Manager, shared his view on the reason that leads to the high turnover rate in Data Analysis team:
“Data Analysis team has the highest turnover rate When leaving, people usually told me that they have a better job with higher salary”.
Furthermore, Schuck et al ( 8 ) stated that higher levels of salary are associated with lower levels of voluntary turnover Besides, Mercy et al ( 7 ) indicated that salary provides great satisfaction to employees, makes them happy and brings about improvement in their efficiency, which helps in retaining them.
From the interview results and analysis mentioned above, it can be said that low salary and unattractive benefits created income dissatisfaction that leads to the reason why the employees in Data Analysis team at ITVN quit their jobs.
However, from the in-depth interviews, it is found that there is a procedure of appraisal, reviewing and increasing salary at ITVN Besides, ITVN conducts annual salary surveys with Talennet-Mercer to have more information for making decisions on employees’ salary Annual salary surveys are conducted by Talentnet-Mercer with organizations in several industries which including the tobacco industries to collect a database of salary rates for each job code in each industry for the companies to reference Then, ITVN has the username to login to the salary database and search for the salary range of each job code and job level for salary benchmarking within the tobacco industry.
Ms Tran Hanh – HR Manager, stated that:
“We have annual individual performance review process for both direct and indirect employees to appraise their performance and review their salary Then the salary increase is based on employee contributions and is also benchmarked with the market, as we have salary survey reports from Mercer-Talentnet”.
Besides, Mr Andrew Wang – Director, shared his opinion that when employees agree to join the company, it means they accept their salary He said:
“Knowing that they complaining for low pay comparing to others, but we have benchmarked all employees’ salary with market and industry rate When they accepted the offer letters to join us that means they agreed about their salary rate”.
Trang 23In addition, the interviews with two employees who are currently working in Data Analysis team disclosed that they are quite happy with their salary.
Ms Nguyen Truc – who has been working in Data Analysis team for three years, shared her thought:
“I have yearly salary reviewed and increased, so I think my salary is acceptable”. Sharing by Mr Phan Nhan, who has joined Data Analysis team for six months:
“Well, I have just graduated for one years, so I am happy with the salary that the company is paying
me I still need to work for sometimes to have more experiences for my better career path”.
Ms Doan Hang – employee has left Data Analysis team, revealed that:
“The salary there is higher than my current salary, but I am happy with my current job”.
Furthermore, Mr Andrew Wang – Director, shared his view:
“We have to follow our Group policies on employee performance evaluation process as all salary information is reported to Group I do not want to fail to comply with the Group policies”.
In addition, Ms Tran Hanh – HR Manager, stated:
they may not know about the market rate and have high expectation on salary”.
From the in-depth interview results as shared above, it can say that there is a confliction in salary perception between the employees working in Data Analysis team at ITVN Besides, from the information sharing by the HR Manager and the Director, ITVN is subject to the salary appraisal and pay raise process of the Group, therefore, salary problem is out of scope of this report.
3.2.2 Poor working environment
Another factor that can affect to the turnover rate of the company is working environment According to Hertati as cited by Setiyani et al ( 11 ), working environment is a condition that exists around workers and then working environment has greatly influence to a person in carrying out his tasks Røssberg et
al ( 12 ) stated that working environment is strongly related to employee satisfaction to retain them According to Røssberg et al ( 12 ), a poor work environment is likely one of the main reasons leads to the high employee turnover rate Thus, poor working environment may lead to high voluntary turnover rate to the organization Therefore, the organization should pay attention to improve the working environment to retain their people Furthermore, Setiyani et al ( 11 ) concluded that working environment has influence on employee motivation which means
Trang 24that a good working environment can improve employee motivation and employee engagement to the company Sofyan as cited by Riyanto et al ( 13 ) noted that paying attention to a good working environment or create working conditions can provide the motivation to work.
From the interview results, it seems that Data Analysis team in ITVN is having an uncomfortable working environment Although working in the same office area, Data Analysis team in ITVN is sitting in a separate room which makes them feel isolated and less engaged with other people in the company The sharing from Mr Andrew Wang – Director, indicated that:
“I’ve noticed that data analysis team less engaged with others Though I offer some opportunities for them to communicate with other people in the office, but it seems that they are working in isolation I really don’t know whether their tasks requires silence for focusing to the numbers or because they feel unconfident talking to others.”
Mr Tran Son – Business Intelligence Manager, shared his opinion about the
working environment of Data Analysis team in ITVN:
“We have a separate working room for people in Data Analysis team since they need to concentrate on the data and numbers to avoid any mistakes in doing their reports Therefore, this makes them less chance to interact with other people in the office”.
Mr Nguyen Thien – left employee, shared his thought:
“The working environment is not very comfortable for me Although everyone is very kind, but sometimes I feel isolated because I am unconfident to talk to others.”
At ITVN, Data Analysis team is sitting in a separate room because they need a silence area to focus on their tasks Then, this working condition may make them apart from other colleagues and that leads to the feeling of isolation of the members in Data Analysis team Lazauskaite-Zabielske et al ( 14 ) mentioned that work engagement can explain for employees well performance in resourceful working environment According to Munir et al ( 15 ), employee’s perception of detachment from their company and coworkers is called workplace isolation Marshall et al as cited by Munir et al ( 15 ) defined that there are two dimensions of workplace isolation: workplace isolation with company, which shows employees perceptions of lack of support from Manager and company; and workplace isolation with colleagues, which shows that employees feel isolated when they do not have formal interaction, friendship and coworkers help.
Trang 25Working in this isolated environment makes them feel un-engagement that
reduces their motivation and causes high turnover rate in the company.
However, the results from the in-depth interviews with employees working at Data Analysis team showed some opinions about the working conditions and
relationships at ITVN Mr Phan Nhan – existing employee, shared his opinion:
“My teammates are very kind to me, and also other people in the company are very nice People here are very supportive Whenever I have troubles in my work, they guide me and help me to settle it, especially my manager The office workplace is very quiet so we can easily concentrate to do our tasks”.
He also shared his opinion about his tasks:
“I am new in the team and am still learning from others, but I think my tasks are quite easy It’s ok for me to do these types of works”.
Mr Nguyen Tung – existing employee, shared his viewpoints about the tasks and working environment at ITVN:
“It really enjoyed me I learned a lot working here”.
He also shared:
“This task is my major subject in university so I can apply my knowledge to do my tasks I really love this job My manager and people in my team teach me a lot People here are very friendly and helpful This is a great place to work”.
Besides, Ms Nguyen Truc – existing employee, shared her thought about working environment at
ITVN:
“Very nice and convenient office workplace Our working room and facilities are very good and convenience My manager and team members are very kind and helpful I am doing routine tasks, nothing interesting, and it is also no challenging My tasks are easy that I am familiar to do”.
Ms Tran Hanh – HR Manager, gave her opinions:
conditions here Besides, we have monthly activities for all people get together for lunch, and I have noticed that everybody enjoyed that”.
Trang 26From the in-depth interviews with the employees in Data Analysis team at ITVN, it showed that they are happy with their tasks, satisfied with the working conditions and the relationships with their colleagues and managers in the company It is possible that the thoughts of the Director and the Business Intelligence Manager at ITVN about working in isolated environment is their perception problem, since HR Manager stated that all employees enjoy the company activities together The results of the interviews showed that the employees working in Data Analysis team
at ITVN are happy with their working environment, and the poor working environment is a perception problem of the Director, it is not a main problem for the company to be solved.
3.2.3 Low level of motivation
Unequal benefits
According to Piotrkowski et al as cited by Tokarz-Kocik ( 16 ), motivation is a set of elements that cause, direct and sustain behaviors of people Aside from direct compensation such as salary, indirect benefits such as a corporate mobile phone, laptop, personal health insurance, coupons for free meals or holiday vouchers are other elements of motivation instruments which can determine the effectiveness of a motivation system, stated by Tokarz-Kocik ( 16 ).
So, there are direct motivation factor such as salary, incentive, and indirect motivation factor such as benefits, allowance, which effect to the job satisfaction of the employees Besides, MetLife and Dale-Olsen as cited by Carraher ( 9 ) indicated that although salary may be an important factor in attracting employees, benefits seem to play a more important role in retaining as well as attracting employees.
It seems that there is an unequal benefits scheme at ITVN, especially for Data Analysis team The inequity scheme can be seen as Data Analysis team have their labor contracts signed with the agency, while other team in the company having their labor contracts signed with ITVN This differentiation leads to the unequal in the benefits scheme of Data Analysis team comparing to other teams in ITVN, which may
be one of the reason causes high turnover rate in Data Analysis team.
Ms Nguyen Truc – who is working in Data Analysis team, shared her opinion about the labor contract signed with agency which leads to inequity in benefits scheme and reduce her motivation to work She stated:
Trang 27“My labor contract is not signed with the representative office, so I don’t have some benefits that other representative office based people have It makes me think that I am working here
as a contractor, apart from the company That demotivates my working spirit”.
Mr Nguyen Thien, who left Data Analysis team, mentioned about the unequal benefits He shared:
“Some benefit policies are applied for only representative office people and that is unfair for us since we are working for the same organization in the same office place”.
He also said:
“We do not have the same benefits as other departments, our payday is also later than them as they usually receive their salary on 25 th of very month but we usually receive on 30 th of the month”.
According to Mr Phan Nhan – existing staff working in Data Analysis team, there
is unfair treatment between direct employees and indirect employees He said:
“Unfair benefits are applying for our team”.
“Regarding the company policy, some policies are not applicable to us, such as monthly telephone fees allowance, taxi usage and travel policy Those policies are only applicable for representative office staff That is unfair for us as we are working in the same office and for the same company”.
It can be seen that different benefits schemes are applied for representative office staff and Data Analysis team, in which the employees who are working in Data Analysis team receive less benefits than representative office based staff The inequality of benefits makes employees working in Data Analysis team uncomfortable and demotivates them Inequity benefits can be one
of the factors affecting to motivation of the employees Lazaroiu ( 17 ) stated that the impressions of pay inequity may increase job dissatisfaction and do not attract or retain employees According to Lazaroiu ( 17 ), inequity usually leads to a strong negative motivational effect in the company When individuals feel uncomfortable about inequity, the discomfort of inequity can push some workers
to leave the company, indicated by Lazaroiu ( 17 ).
Ms Tran Hanh – HR Manager, confirmed that:
“Since people in Data Analysis team are indirect employees, so they do not have same benefits
as other representative office employees They do not have other benefits for direct employees such as healthcare insurance for their whole family Our representative office employees also have some other allowances that do not applied for Data Analysis team people”.
No career growth and job insecurity
Trang 28Abdul Kadar et al ( 18 ) indicated that promotion or career growth opportunities is one of motivation factors leading to employee retention in the company.
The interview results with Ms Tran Hanh - HR Manager revealed the reason for setting up Data Analysis team and why their labor contract are signed with agency She said:
“We formed up Data Analysis team in 2015, at that time we intended to have short-term contracts with them That’s why we use agency to recruit and sign labor contracts with this team After that, our management team wanted to extend the contracts for one more year, and then continue
to extend for another year, so we maintain their contracts with the agency until now”.
Ms Tran Hanh - HR Manager also shared:
“We currently have no development plans for indirect employees as they are considered as short-term workforce Indirect employees also cannot access to our available resources such as e-learning systems which are applied for direct employees as per Group’s permission”.
Further information shared by Mr Tran Son – Business Intelligence Manger, that the labor contracts for Data Analysis team are signing yearly He said:
“Since the labor contracts of Data Analysis team are signed for one year period, so they may feel unstable as they consider their jobs are short-term jobs”.
He also shared his thought:
“In my opinion, there is no retention plan for Data Analysis team that makes them feel unengaged with the company They think that one-year labor contract is for a short time period,
so they still look around when working here and jump out when having a better offers”.
Shared by Mr Nguyen Tung – who is working in Data Analysis team for a year:
“I don’t know how long the company will keep our team here It seems that the company strategy will change, and it may not require our team any more That makes me feel uncomfortable and demotivated”.
Moreover, Ms Nguyen Truc – existing employee working in Data Analysis team, shared her thought:
“I am not sure whether the company will continue to sign the labor contract with
me I asked my manager but he was not sure about the future plan This makes me feel unstable working here and dissatisfied me”.
Because the employment contracts of Data Analysis team are signed with agency, people in this team are considered indirect employees Therefore, no career development plans and no career growth opportunities are in place for them Moreover, their employment contracts of Data Analysis team are
Trang 29about their future According to Holm et al ( 19 ), job insecurity is one of the largest concerns for the organization in the increasing turnover rate of employees Ashford
et al as cited by Holm et al ( 19 ) indicated that when people feel insecure in their jobs, they leave organizations to search for more secure career opportunities.
Through the interview results and literature review, there are three potential problems lead to high turnover rate in Data Analysis team at ITVN, that are income dissatisfaction, poor working environment, and low level of motivation However, from the in-depth interviews with the Director, the Managers and the employees who are working in Data Analysis team and who left the team, it revealed that the low level of motivation, which caused by inequity in benefits, no career development plans and job insecurity, is the main problem leads to high turnover rate in Data Analysis team at ITVN.
3.3 Updated preliminary cause and effect map
From the interview results and combined with literature review, the preliminary cause and effect map is updated as below:
Trang 303.4 Problem justification
To sum up, income dissatisfaction, poor working environment, and low level of motivation are three potential problems lead to the high voluntary turnover rate in Data Analysis team at ITVN However, it is found that there is a confliction between employees in Data Analysis team about income dissatisfaction, that some people are dissatisfied with their salary, but some people are fine with their pay rate Besides, according to the Director and the HR Manager of ITVN, the company has the procedure for evaluating individual performance, reviewing and increasing employee salary annually Furthermore, ITVN has to follow the Group policies on pay rise process, so the income dissatisfaction problem is out of scope of the Director of ITVN Regarding working environment of Data Analysis team at ITVN, the interview results released that the employees there are satisfied with their tasks and working conditions, and happy with the relationships with their colleagues and managers It seems that working environment is a perception problem of the Director of ITVN.
However, deeper interviews revealed that inequity in benefits, no career development plans and job insecurity are the main reasons make the employees working in Data Analysis team dissatisfied and increase their intention to leave the company The results from the interviews with employees working in Data Analysis Team at ITVN, as mentioned in the section 3.2.3 above, showed that benefits inequity, no career development plan, and job insecurity are the main factors that reduce their motivation to work.
Mr Nguyen Thien – left employee, shared his thought:
“I feel unhappy that the benefits of our team is lower than the others in the same office”.
Ms Nguyen Truc – existing employee, shared her concerns:
“I am worried about my future since I have unsecure job and no career development plan, that makes me demotivated”.
Mr Nguyen Tung – existing employee working in Data Analysis team, stated:
“There is no career development, no career growth opportunity here No career development plans reduces my working inspiration and demotivates me”.
Besides, the interview result with Ms Tran Hanh - HR Manager, revealed the
important factors that cause high turnover rate in Data Analysis team She stated:
Trang 31“Knowing that the unequal benefits and no retention plan makes the people in Data Analysis team demotivated, and this is the main reason causes high turnover rate in this team, I hope
we can find solutions to inspire their working spirits to reduce turnover rate”.
According to Keighley as cited by Joshua-Amadi ( 20 ), employee working spirit and the ability
to work happily in difficult situations depend on motivation In other words, Joshua-Amadi ( 20 ) stated that employee demotivation ensures non-constructive behavior, frustration and inappropriate attitudes that prevents productivities and increases staff turnover and company costs In addition, Tokarz-Kocik ( 16 ) mentioned that the way how people treat the duties relies on motivational activities undertaken by the company Therefore, wrong motivation decisions may lead to a high employment turnover rate, stated by Tokarz-Kocik ( 16 ) As a result, low level of motivation is the important factor caused high turnover rate in the organizations Thus, it can say that the low level of motivation is the main problem leads
to the high turnover rate in Data Analysis team which reduces financial performance of ITVN.
retention, work quality, and company strategy The higher turnover rate, the lower
stated that employee are the backbone of the organization, therefore, in order to gain the competitive advantage, the organization should motivate and engage the employees When employees are not motivated and leave the organization, it is not only dangerous
to the success of the organization, but also affects to the productivity as well as further
When being asked for the consequences of high turnover rate in Data Analysis team, Mr Andrew Wang – Director, disclosed that ITVN has to spent more for the replacement costs (from 170 million Vietnam dongs in 2018 to 301 million Vietnam dong in 2019 - Table 4), and this also affects to the working results and the working spirit of other employees, which will increase the investment spending of ITVN He said:
“High turnover rate not only increases replacement costs, but also reduces the quality of works and affects to working spirit of other people We are relying on their reports to make decisions for our investments to increase our market share in Vietnam market, so any delay or mistake in the reports will result in making wrong decisions and increase our spending on investments, thus reduces the
Trang 32company’s profits We need to find the root cause of this problem I fully support to improve the turnover rate within my approval boundary”.
Therefore, in order to maintain a stable workforce and sustain the company
performance, ITVN should find ways to motivate Data Analysis team.
4.1 Potential causes
Regarding to motivation, Herzberg et al as cited by Tietjen et al ( 23 ) developed two groups of factors, that are job factors which including recognition, achievement, possibility of growth, advancement, responsibility, and work itself; and extra-job factors which covering income, interpersonal relations, company policy and administration, working conditions, and job security.
According to Tietjen et al ( 23 ), job factors refers to intrinsic motivation and extra-job factors refers to extrinsic motivation Besides, Ryan and Deci as cited by Jungin ( 24 ) defined intrinsic motivation as “the doing of an activity for its inherent satisfactions rather than for some separable consequence” as well
as “doing something because it is inherently interesting or enjoyable”; while extrinsic motivation, on the other hand, refers to “doing something because it leads to a separable
outcome” In adition, according to Joshua-Amadi ( 20 ), extrinsic and tangible motivator includes pay, job security, safety, friendly and favorable working condition; and in contrast, intrinsic and intangible motivator covers opportunity to perform, challenge, sense of achievement, personal growth, recognition, appreciation, valued and treated with respect Furthermore, Marco et al ( 25 ) found that career growth opportunities can affect intrinsic motivation by increasing the prospect
of enjoyable future tasks, and the perceived fairness of the monetary and promotional parts of the
compensation system has a significant connection with extrinsic motivation Jungin ( 24 ) measured intrinsic motivation by the perceived of future possibilities in employees’ workplace, education, training, and achievement in their job, their pleasure and pride in their work; and measured extrinsic motivation by the extent of the employees’ salaries, benefits, promotions, leisure time, and work-family balance It can be said that intrinsic motivation comes from within the job, the employees do their job because of fun, enjoyable, and satisfying; while extrinsic motivation arises from outside the job, the employees do their job because of external rewards in return.
With the literature reviews, motivation can be classified into two types: intrinsic motivation and extrinsic motivation At ITVN, intrinsic motivation covers lack of career development plans and
Trang 33no career growth opportunity; while extrinsic motivation includes inequity benefits and job insecurity.
4.1.1 Lack of Intrinsic motivation:
According to Ryan et al ( 26 ), intrinsic motivation is intangible rewards that reflect the inherent interests in the work that makes the employees motivated to work for their own benefits Besides, Twenge et al ( 27 ) stated that organizations try to attract the workforce with intrinsic rewards by offering a meaningful job, career growth, and opportunities to make a difference It can be said that intrinsic motivation is one of the factors affecting to employees’ work motivation From the interview results, it mentioned that there is no career development plans and no career growth opportunities for employees working in Data Analysis team at ITVN The lack of career growth opportunities leads to dissatisfaction of the employees.
Ms Doan Hang – left employee, shared her opinion on the worst point makes her dissatisfied when working at ITVN:
“No career development No future growth We are unequally treated, this makes
me feel unhappy and disappointed”.
She also said about the benefits and career growth opportunities in her new company:
“I am an official staff of my current company, I receive all benefits as other people here If I work well, I will have opportunities for my career growth”.
Ms Nguyen Truc – existing employee, shared her concerns:
“I don’t see any development plan in my career, as I am doing the same tasks in the past two years Though my line manager teaches me a lot in my works, but I don’t see any career growth opportunity here”.
Further interviews with the managers at ITVN has revealed some information about the intrinsic motivation in the company.
Ms Tran Hanh - HR manager, stated about career development at ITVN:
“We currently have no development plans for indirect employees as they are
considered as short-term workforce”.
Besides, Mr Tran Son – Business Intelligence Manager, gave his opinion about retention plan for
Data Analysis team in ITVN:
“In my opinion, there is no retention plan for Data Analysis team that makes them feel unengaged with the company”.
Trang 34Moreover, Tokarz-Kocik ( 16 ) stated that one of efficient motivation is creating opportunities for employees to develop their qualifications According to Tokarz-Kocik ( 16 ), apart from low salaries, the limited promotion and career development opportunities are the most important reasons for the employees leaving a company This means that when the company having opportunities for the employees to enhance their knowledge, that makes the employees motivated and engaged with the company In opposite, lack of career development and no career growth opportunities leads to employees’ leaving decisions In addition, Abdul Kadar et al ( 18 ) stated that career growth opportunities or career development plans lead to employee retention in the organizations.
With the results from the interviews and literature reviews, it can say that lack of intrinsic motivation, which caused by no career development plans and no career growth opportunities, is part of the reasons that make the employees in Data Analysis team leaving ITVN.
4.1.2 Low level of Extrinsic motivation:
Through the interviews, it can be seen that at ITVN, the low level of extrinsic motivation in Data Analysis team caused by benefit inequity and job insecurity One of the reasons for inequity benefits is the different policies that applying to direct employees and indirect employees In addition, the one-year contract term signing with the agency makes the indirect employees feel unstable in their job and that demotivates their working spirit.
The interviews with employees working in Data Analysis Team revealed some information about the extrinsic motivation factors at ITVN.
Mr Nguyen Tung – existing employee working in Data Analysis team, shared his thought about the inequity in benefits at ITVN:
“Our team don’t have some benefits that others have, this makes us feel unequally treated and demotivated”.
Ms Doan Hang – employee has left Data Analysis team, stated that:
“We know that our team has less benefits than others although we are working in the same office”.
Besides, Ms Nguyen Truc – existing employee, shared her concerns about the job insecurity:
“I really don’t know what I will be in the next three years And I am not sure if the company wants to maintain this team for long term”.
Trang 35“I don’t know how long the company will keep our team here It seems that the company strategy will change, and it may not require our team any more That makes me feel uncomfortable and demotivated”.
Furthermore, the interviews with Managers showed that Data Analysis team at ITVN has benefits inequity and job insecurity.
Ms Tran Hanh – HR Manager, said:
“Since people in Data Analysis team are indirect employees, so they do not have same benefits
as other representative office employees They do not have other benefits for direct employees such as healthcare insurance for their whole family Our representative office employees also have some other allowances that do not applied for Data Analysis team people”.
Mr Tran Son – Business Intelligence Manager of ITVN, shared his thoughts:
“In addition, having one-year period labor contracts makes the people in my team feel unsafe in their career, as they think their job is insecurity I think this is the most important reason makes them to leave the company”.
In addition, Lazaroiu ( 17 ) stated that the dissatisfaction with equity makes the staff feel demotivated and leads to give decision to leave the company Therefore, the existence of unequal benefits in the company can lead to the dissatisfaction of the employees, the increasing their leaving retention Furthermore, Ashford et al as cited by Holm et al ( 19 ) stated that staff who felt insecure about their jobs left companies to search for more carrier opportunities.
From the interviews results and literature reviews, it can say that low level of extrinsic motivation, which caused by benefit inequity and job insecurity, is part
of the reasons that make the employees in Data Analysis team leaving ITVN.
From the interview results with three group of managers and employees of ITVN, together with motivation theories, the cause and effect map is drawn as below:
Trang 36Intrinsic Increase Turnover
Analysis team
No career growth opportunity
No career development plan
Lack of
Inequity benefits
Increase Investment spending and
Mafini et al ( 28 ) stated that in the Two-factor theory of motivation of Hezrberg, intrinsic factors are motivators whereas extrinsic factors are ensure that some external goal is met In addition, Joshua- Amadi ( 20 ) stated that pay, which is made up of salaries, bonuses, and benefits, is a powerful motivator According to Joshua-Amadi ( 20 ), financial rewards make the staff’s uninteresting tasks worth doing because may be the employees need extrinsic rewards such as pay to make their works exciting before intrinsic rewards from the job to maintain the momentum of motivation Moreover, Lazaroiu ( 17 ) stated that according to Maslow’s hierarchy of needs, employees are interested in fulfilling external needs such as physiological necessities (the demand for air, water, and food) and safety and security ones (a safe living area, job security, a retirement scheme, and health or medical insurance) Furthermore, based on Adams’ Equity Theory, the
Trang 37difficulties with inequity can lead employees to reduce their work to eliminate inequity, stated
by Lazaroiu ( 17 ) Therefore, it seems that the employees need to be satisfied with the extrinsic motivation before intrinsic motivation From the interviews results, it showed that at ITVN, the employees in Data Analysis team have low level of extrinsic motivation in term of benefits inequity and job insecurity, which makes them demotivated and increases the turnover rate Therefore, it is crucial for ITVN to find solutions to improve benefits for employees in Data Analysis team as well as make them feel reliable on their job.
Furthermore, the interviews with Manager at ITVN revealed that the intrinsic motivation is out of scope of the Management Team, as it requires the Group approval for indirect employee development plan.
Ms Tran Hanh – HR Manager of ITVN, shared her opinion when being asked for the career development plan and career growth opportunity for Data Analysis team She said:
“We currently have clearly development plans for almost representative office based employees, but not for agency’s employees Reason that agency’s employees are reported as indirect employees, and our Group currently do not focus on investment to indirect employees So, it is very difficult for us to put this in the career development plans, unless they are employed by the representative office.” According to Mr Tran Son - Business Intelligence Manager, it is necessary to have a long term strategy for employee growth, but difficult in this situation He shared:
“Understand that in this situation, it is difficult for us to have a clear career path plan for my team But I think we should have a long term strategy for employee growth so that they feel engaged with the company”.
Moreover, Mr Andrew Wang – Director, shared his thought:
“I do not want to increase the number of direct employees at this moment, because we need to have the Group approval for additional headcounts But I will embed to the Business Plan for long term strategy for the next 5 years, which we will expand our business and our organizational structure Then once we have Group approval for the Business Plan, we will definitely cover the development plans for all the employees”.
In general, career development plans and career growth opportunities for the employees are long term strategies of ITVN, which embedded in the Business Plan of the company and required Group approval.
As sharing by the Director that the company has planned for the company expansion strategy, which including the opportunities for career growth plans for the employees So, the
Trang 38solution for solving the cause of lack of intrinsic motivation is included in the Business Plan of ITVN Therefore, the Management of ITVN need to focus on improving extrinsic motivation to motivate and retain the employees in Data Analysis team.
From the above analysis, it can be seen that the key problem leading to the high turnover rate in Data Analysis team at ITVN is the low level of motivation After analyzing the causes, it is found that the main cause which can be solved to improve the motivation to retain the employees in Data Analysis team is extrinsic motivation There are two factors creating low level of extrinsic motivation in Data Analysis team at ITVN, benefits inequity and job insecurity Therefore, ITVN should find solutions to improve benefits inequity and job insecurity to make the employees motivated and engaged with the company Through the interviews with the employees in Data Analysis team and the managers of ITVN, there are two alternative solutions are proposed to solve the main problem at ITVN.
5.1 Alternative solution 1: Eliminate benefits inequality
At ITVN, inequity benefits reduces motivation to work for employees working in Data Analysis team When the employees feel uncomfortable from inequity, they may reduce their contributions to a level that they think is compatible with the results they receive; or they may negotiate for a better deal for their contributions between work and gain; or they may make decision to leave the organization, postulated by Lazaroiu ( 17 ) Besides, according to Adams’ Equity Theory, employees evaluate their relationships with others by assessing their ratios of rewards (outcomes, such as salaries, bonuses, and benefits) to their contributions (inputs, such as tasks, efforts, and persistence), and if the outcome/input ratio of an employee comparing to other one is unequal, then inequity exists and the employee may need to address it by reducing their work inputs or quitting job, stated by Bing et al ( 29 ) So, the inequity benefits may lead to reducing the productivity or increasing the leaving intension
of the employees Benefits are closely related to job satisfaction which can motivate employees and affect employee job performance and organizational commitment, stated by Odunlade ( 30 ) Therefore, ITVN should improve the benefits of the employees working in Data