Job satisfaction in RSM vietnam

JOB SATISFACTION IN RSM VIETNAMCHAPTER 1 PROBLEM IDENTIFICATION 1.1 Problem background RSM Vietnam with over 140 employees is one of the leading mid-tier accounting and advisory firms in

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

-Hoang Manh Quang

JOB SATISFACTION

IN RSM VIETNAM

Master of Business Administration

Ho Chi Minh City – Year 2016

International School of Business

Master of Business Administration

SUPERVISOR: Dr Nguyen Phong Nguyen

Ho Chi Minh City – Year 2016

TABLE OF CONTENTS

CHAPTER 1 1

PROBLEM IDENTIFICATION 1

1.1 Problem background 1

CHAPTER 2 5

BUSINESS PROBLEM JUSTIFICATION 5

2.1 Justify the existence of the problem 5

2.2 Justify the importance of the problem 7

CHAPTER 3 11

CAUSE VALIDATION 11

3.1 List the potential causes of the problem 11

3.2 Cause justification 20

CHAPTER 4 26

SOLUTION INDENTIFICATION 26

4.1 Potential solutions development 26

4.2 Potential solution evaluation 31

4.3 Change plan design 35

CONCLUSION 38

CHAPTER 5 39

SUPPORTING INFORMATION 39

5.1 List of potential clues affecting job dissatisfaction existence in the Company 39

5.2 Open-interview transcript to identify the existence of the problem 39

5.3 The list of question in mini focus group to justify the root causes 43

5.4 Interview transcript in mini-focus group session 45

REFERENCE 56

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TABLE OF FIGURES

Figure 1.1: The initial Cause and Effect map

Figure 3.1: Potential cause and effect of low level of job satisfaction

Figure 3.2: The final Causes and Effect map

TABLE OF TABLES Table 1.1: Turnover rate from 2011-2015

Table 3.1: The description of nine facets of job satisfaction

Table 3.2: The potential causes of Low level of job satisfaction

Table 4.2: Potential solution evaluation

Table 4.3: Detailed implementation plan

Table 5.4: Interview transcript in mini focus group session

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JOB SATISFACTION IN RSM VIETNAM

CHAPTER 1 PROBLEM IDENTIFICATION 1.1 Problem background

RSM Vietnam with over 140 employees is one of the leading mid-tier accounting and advisory firms in Vietnam Under its core purpose of being the firm of choice for growing businesses looking for high quality and personalized services, RSM Vietnam assists clients in achieving their goals through audit, tax, advisory and outsourcing services

RSM Vietnam serves clients worldwide as an independent and highly integrated member of the RSM network, which is ranked among the top seven global accounting networks with more than 35,000 minds, 718 offices in over 110 countries around the world.With the practical experience and knowledge built up over working years with largest international and local accounting firms, RSM Vietnam can provide high quality services toclients with competitive professional fees

Although RSM Vietnam does not belong to top four biggest companies over the world, becoming one of the giant companies in Vietnam after Big 4 (i.e KPMG, EY, PWC, Deloite) is the leading mission of the Company all the time Each year, the senior

management board has a meeting with all the management team to review, assess what the Company has done in recent years and define the development plan for the next stage

Within that meeting this year, all of them have agreed that although the Company hasgained lots of achievement as well as certain position in the market, but the challenges has never been seriously like this time

Firstly, there are over 200 companies in this industry and they are willing to provideservices with low fees with the purpose of taking up the market

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Secondly, everyone knows that retaining current clients is difficult and seeking new oneeven harder Especially, with the outsourcing company like ours, the work depends too much

on clients’ business health Clients earn profit; the Company also gets profit too, and vice versa So far, the world economy has not recovered completely after the crisis, it has required all companies to consider carefully about cost saving and use all internal resources to gain the competitive advantage and differentiation from competitor To gain that entire mission, the prerequisite is high-quality resources or human resources in particular

In the time being, the number of high quality Vietnamese employees cannot meet market demand; the competition to attract those resources has increased day by day In that context, the retention is recognized as the top action right now Based on the Human

resource report, the turnover rate has been increased significantly and it also shows that the revenue per employees drop down from time to time [from around 300 million per staff to

200 million per staff] In the period of time form October 2014 to June 2015, the turnover rate of the Company has been on uptrend and reaches speak as 20% (in comparison with the general rate of industry as 12% - 15%) The most difficult thing is that the staffs who left job have from three to eight years of work experience Moreover, on the evidence of fierce competition in human resources market, receiving other offer has accounted for half

of leaving reasons in both 2014 and 2015

Table 1.1: Turnover rate from 2011 - 2015

JOB SATISFACTION IN RSM VIETNAM

Source: RSM Vietnam Human resource ReportThere are many reasons for this problem As the interview with Partner of the Company, Mr Le Khanh Lam, who is responsible for the quality of delivering perfectservice to clients, there are some items as below

Big client has

by reducing service fees

Increase cost

Employees feel that it is hard to be promoted and recognized

(performance appraisal) Employees do not put many efforts in daily work and project (achievement) Employees do not agree with company policies (salary, benefits, …)

Employees are easy to be approached by rival companies (Brand identity) Less competitive

compare with rival

High turnover rate

Figure 1.1: The initial Cause and effect map

Firstly, started from the middle of 2014, due to ineffective business operation, somebiggest clients has implemented cost reduction plan This leads to decrease the business corporate scope with RSM Vietnam, and so one-third employee has been laid off

Moreover, since revenue decrease, it is needed to figure out the way to keep the business continue running, the senior management board has decided to freeze some benefits for optimizing operation expenses, for instance: Quarterly Bonus, Year-end Bonus, decrease

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salary rising rate, etc These things make the Company becomes less competitive compared with other rival companies, particularly Big 4 and Vietnamese giants As the effect of that, anumber of high-performance resources leaving continue rising month by month At their best, each department has concentrated on finding new clients, marketing brand of the Company as well as expand business to other potential markets (FDI, Foreign companies, bank, Insurance, Real estate, etc.) in order to offset the lost revenue, but this mission is not easy at all and takes time until the certain result is gained.

Secondly, performance appraisal of the Company is not clear and informative Employees do not feel that their contribution is discovered and recognized at right time, therefore for them; promotion is too difficult to get This also partly leads to low

achievement for any job or project They do not put many efforts; just mainly work in the spirit of responsibility day by day Another related problem is about dissatisfaction of the Company’s polices, chiefly in salary and benefit policies An unattractive salary package is considered as one of the critical problems, especially during this year when the Company isstruggling to overcome the influences of decreasing revenue Total average salary and benefit is not as high as other second-tier companies

Last but not least, local brand identity plays an important role in affecting turnover rate

in the Company RSM Vietnam does not attract giant clients as fierce competitors are doing and probably talents will be easily approached by other companies, not the Company

Therefore, these evidences may show that there is a business problem related to human resource management in RSM Vietnam The necessary action at the present is to find exactly the important problem In line with the internal data from the Company and theinterview, the poor of job satisfaction, the employee’s commitment to organization is the factors needed to be analyzed and improved

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JOB SATISFACTION IN RSM VIETNAM

CHAPTER 2 BUSINESS PROBLEM JUSTIFICATION 2.1 Justify the existence of the problem

To justifying the existence of the job satisfaction, must understand sufficiently themeaning of “job satisfaction” and what are the scale items to measure its

Hoppock (1935) defined job satisfaction as any combination of psychological,

physiological and environmental circumstances that cause a person truthfully to say I am satisfied with my job According to this approach although job satisfaction is under the influence of many external factors, it remains something internal that has to do with the way

of how the employee feels That job satisfaction presents a set of factors that cause a feeling

of satisfaction

In order to initially investigate the level of job satisfaction in the Company, a group

of 10 (ten) employees, who are being developed into senior position (experienced), were invited to answer a list of statements that represent possible feelings that they have about theCompany

The interview questions are partly based on the previous research named Vocational Psychology Research, Manual for the Minnesota satisfaction questionnaire by (Weiss, 1967), however those are opened-questions to collect as many necessary information possibly leading

to the existence of job dissatisfaction These questions comprise some items describing

various aspects of people’s jobs (e.g “The chance to do different things from time to time”,

“The way my job provides for steady employment”, “The workload each employee takes over”, etc) All the interviewees aware that their identities are kept

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confidential, and there is not any judgment for their answers Therefore, the interview result

is objective and not bias

Most of the interviewees said that they do usually miss the deadline and their currentjob busy all the time They do not have time for relaxing, go out with friends or take gym because they must spend more 10 hours per working day to finish daily job but never received Overtime policy

In addition, the Partner acknowledge the “taking a nap in lunchtime”, means that napping is not necessary at workplace; instead, workers can improve their knowledge byreading something useful or research new issued relating to their career For half

interviewees, in negative side, they prefer to take a short rest for approximately 10 to 15minutes in order not to doze off in the rest afternoon or stay tired

In order side, employees feel that the Company do not care about their contributionsfor the Company, i.e they rarely received the appropriate praise after they do a good job, but easy to be blamed when has a mistake in work In addition, the behavior make they do not satisfaction with the intrinsic motivation and their supervisors

When being asked about the job characteristic, most of them think that the tax and consulting job is one of most challenging job and usually due to stress in work As a

characteristic of this job was that the rules, the laws could change and supplement day by day and the professional staff must be improving the knowledge by themselves through reading the updated regulations, and maintain the habit to study the customers’ documents

to broaden the experience on treating the real situations However, there are 04 intervieweesconfess that they like to reading news or chatting via Skype instead do that with the reason

is they have to use this way to get out of stress and feel better

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JOB SATISFACTION IN RSM VIETNAM

Other people think that the salary is not commensurate with their work and their spending, or with their same-age friends in other organizations The over workload to be handled and the working time over 10 hours per day make they think like that Furthermore,there is not any recognition or promotion from the direct manager when they tried to finish job with a good result is one of the reasons lead to dissatisfaction and start looking around

to find other better opportunity

Based on the above, there are some initial evidences to prove that RSM Vietnam has

a problem with employee’s satisfaction in their work (job satisfaction)

Literature review underlined that the low level of job satisfaction is considered to beassociated with the employee loyalty (in other word is mark high rate of turnover intention)and absenteeism In the given case of RSM Vietnam, just in the year 2015, turnover rate is 16.3%, increase 13.2 than 2014, if in 2014 there was only 4% senior staff leaving, the number was 27.8% in 2015 The rise in turnover rate mainly based on the reason: they receive higher offer from other company (i.e Big 4 Company as PWC, EY, KMPMG and Deloitte Touch) While the Company has been loss lost many core employees to its

competitors, finding qualified candidates from outside company is not easy The Turnover

is always costly to an organization in all sector from selection, training and development ofpersonnel (Meyer, Becker, & Vandenberghe, 2004)

2.2 Justify the importance of the problem

Spector (1997) stated that job satisfaction influences people’s attitude towards their jobs and various aspects of their jobs It has to do with the extent to which people like or dislike their job Job satisfaction is a worker’s sense of achievement and success on the job It

is generally perceived to be directly linked to productivity as well as to personal

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being Job satisfaction implies doing a job one enjoys, doing it well and being rewarded forone’s efforts Job satisfaction further implies enthusiasm and happiness with one’s work.

Spector (1997) listed three important features of job satisfaction:

First, organizations should be guided by human values Such organizations will be oriented towards treating workers fairly and with respect In such cases, the assessment of job satisfaction may serve as a good indicator of employee effectiveness High levels of jobsatisfaction may be sign of a good emotional and mental state of employees

Second, the behavior of workers depending on their level of job satisfaction will affect the functioning and activities of the organization's business From this, it can be concluded that job satisfaction will result in positive behavior and vice versa, dissatisfactionfrom the work will result in negative behavior of employees

Third, job satisfaction may serve as indicators of organizational activities Through job satisfaction evaluation different levels of satisfaction in different organizational units can be defined, but in turn can serve as a good indication regarding in which organizationalunit changes that would boost performance should be made

Therefore, Job satisfaction causes a series of influences on various aspects of

organizational life Some of them such as the influence of job satisfaction on employeeproductivity, loyalty, commitment, and absenteeism

Employee productivity

The consequences of job satisfaction include better productivity/performance and a reduction in withdrawal and counter-productive behaviors and vice versa (Morrison, 2008) There are many possible moderating variables, the most important of which seems to be rewards If people receive rewards they feel are equitable, they will be satisfying and this is likely to result in greater performance effort

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JOB SATISFACTION IN RSM VIETNAM

Employee loyalty

Employee loyalty is one of the most significant factors that human resource

managers in particular must have in mind Employee loyalty is usually measured with theLoyalty Questionnaire and can cause serious negative consequences when not in a high level

Usually three types of employee loyalty are considered: affective loyalty, normativeloyalty and continuity loyalty Affective loyalty has do with the cases when an employee feels an emotional connection to the company, otherwise normative loyalty is a sort of loyalty that appears in cases when the employee feels like he own something to the

company Continuity loyalty comes as a result of the fact that the employee does not have

an opportunity to find a job somewhere else

Research conducted by (Vandenberg & Lance, 1992) during which they surveyed

100 professional in the information services for five months shown a strong relations between job satisfaction and employee loyalty Their research proved that the higher the degree of job satisfaction the higher is the level of employee loyalty

Organizational commitment

A positive association between job satisfaction and organizational commitment is strongest for affective commitment (Mathieu & Zajac, 1990) The employees who are satisfied with their jobs may develop emotional attachments or high affective commitment

to their organizations (Ketchand & Strawser, 2001)

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Employee absenteeism

Employee absenteeism causes serious additional costs for companies, therefore managers are in permanent peruse of ways how to decrease and reduce it to its minimum Probably, the best way to reduce employee absenteeism would be through an increase in thelevel of employee satisfaction The main idea behind this approach is that the higher the degree of job satisfaction is the lower employee absenteeism should be

Even though the effects are modest, the fact that job satisfaction contributes to decreasing the level of employee absenteeism remains So satisfaction is worth paying attention to, especially since it is potentially under your control – unlike some of the other causes of absenteeism (e.g illness, accidents) However, others said circumstances can alterthis equation A manager could be implicitly encouraging absenteeism by enforcing

company policies If people are paid for sick days, and if they must be “used or lost” this is strong encouragement for employees to be absent In other words, you’ve helped create a culture of absenteeism that can overcome the “satisfaction” effect (Sweeney & McFarlin,

2002)

When satisfaction is high, absenteeism tends to be low; when satisfaction is low, absenteeism tends to be high However, as with the other relationships with satisfaction, there are moderating variables such as the degree to which people feel their jobs are

important Additionally, it is important to remember that while high job satisfaction will notnecessarily result in low absenteeism, low job satisfaction is likely to bring about high absenteeism

Overall, the poor of job satisfaction is a significant problem/issue in RSM Vietnam,which needs to be control with effective HR strategies

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JOB SATISFACTION IN RSM VIETNAM

CHAPTER 3 CAUSE VALIDATION 3.1 List the potential causes of the problem

Job satisfaction is the key ingredient that leads to recognition, income, promotion, and the achievement of other goals that lead to a feeling of fulfillment (Kaliski &

Macmillan Reference, 2007) Job satisfaction can be considered as one of the main factorswhen it comes to efficiency and effectiveness of business organizations In fact, the new managerial paradigm, which insists that employees should be treated and considered

primarily as human beans that have their own wants, needs, personal desires, is a very good indicator for the importance of job satisfaction in contemporary companies When analyzingjob satisfaction, the logic that a satisfied employee is a happy employee and a happy

employee is a successful employee

(Swathi, 2014) suggested that there is a positive relation between organizationalculture and employee satisfaction, and using a survey of 100 employees to study the

relationship between organization culture and employee satisfaction

(Williams, 1995) found that employee benefits affect job satisfaction Another

difference can be attributed to the perspective, i.e job satisfaction is more of an employee’sperspective and employee satisfaction is more of the organization’s perspective

Literature has been proved that there are variety of factors affect to job satisfaction, theyare:

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Table 3.1: The description of nine facets of job satisfaction Facet

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Table 3.2: The potential causes of Low level of Organizational Commitment

argued to be a critical reward afforded

by organizations to employees Thisrecognition is critical because it ispartially answers the question ofidentity; of who the individual is;what talents she/he has; what roleshe/he plays in the life of others; whataccomplishment she/he has made; andhow she/he contributes to the

organization’s goal and success.”

(Bjarnason, 2009)

relative to a comparison or referencelevel”

JOB SATISFACTION IN RSM VIETNAM

“Satisfaction with pay is the mostobvious component of job satisfactionthrough which workers would expressdissatisfaction with rising incomeinequality”

“Job satisfaction level is less foremployees, who receive less amount

of pay whereas higher amountreceiving employees have high level

of satisfaction…Pay is an imperativefactor for job satisfaction”

higher compensation”

“The movement of an employeeupward in the hierarchy of theorganization, typically that leads toenhancement of responsibility andrank and an improved compensationpackage is a promotion”

“The reassignment of an employee to

a higher-rank of job”

“Promotion is said to be happenedwhen an employee makes a shift inthe upward direction in organizational

hierarchy and moves to a place ofgreater responsibility”

defined as the purpose of taskengagement and the specific type ofgoal adopted is posited to create aframework for how individualsinterpret, experience, and act in theirachievement pursuits”

JOB SATISFACTION IN RSM VIETNAM

invented, or discovered in learning tocope with its problems of externaladaptation and internal

integration, and that have workedwell enough to be considered validand, therefore, to be taught to newmembers as the correct way toperceive, think, and feel in relation tothose problems”

“Organizational culture is a set ofvalues, symbols and rituals, shared bythe members of a specific firm, whichdescribes the way things are done in

an organization in

order to solve both internalmanagement problems and thoserelated to customers, suppliers andenvironment”

“Organizational culture is acombination of

value system and assumptions whichlead an organization to run its

business”

(Belias et al., 2015)

JOB SATISFACTION IN RSM VIETNAM

compensation Secondly, Fringebenefits can act as substitutes forwages”

(Artz, 2010)

In general, indirect and non-cashcompensation paid to an employee.Some benefits are mandated by law(such as social security,

unemployment compensation, andworkers compensation), others varyfrom firm to firm or industry toindustry (such as health insurance,life insurance, medical plan, paidvacation, pension, gratuity)

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Figure 3.1: Potential cause and effect of low level of job satisfaction

( Malik, Danish, & Munir, 2012 )

( Naveed, Ahmad, & Bushra, 2011 )

JOB SATISFACTION IN RSM VIETNAM

3.2 Cause justification

In this research, a group of five employees has been invited to take part in a mini focus group with the purpose of evaluating which causes have important effect on job satisfaction in RSM Vietnam The data for the study was collected by using the

questionnaire as the method for data collection, including eight questions about the six potential causes This interview covers as much other sub aspects as possible which affect the potential causes as Recognition, Income/pay, Promotion, Achievement, Organizational culture, Employee benefit for more thorough research This research covers employees’ position from new employees, assistance, senior and manager In addition to main questionsgiven to interviewees, sub questions or clues are also included in the survey making them easily understand as well as freely discuss to verify the root causes, which actually play an important role in level of job satisfaction in RSM Vietnam

The description table of interview results is displayed in Section 5.4 – Supporting Information, which has eight questions with 5 interviewees about which the causes are and how they affect the level of job satisfaction in RSM Vietnam From the result of the focus group, there are four causes and the rank of them in order of importance as follows:

Income/ pay, Promotion/reward, Achievement and Recognition

Income/pay

The income is considered as one of the most positively significant effects on

employees’ job satisfaction Employees may have reported higher levels of satisfaction perhaps because they are motivated by receiving high income for their job effort One of reasons that people chose this kind of job is the decent income (everyone should be entitled

to a decent wage/standard of living)

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Almost correspondents stated that when an employee applies for job, the first andmost important thing they consider is how much they will be paid monthly and whethersuch amount meet their basic living conditions.

Another opinion is that the income/pay is considered as one of recognition for employee’ contribution in any organization He explained that in case that you work hardand put a lot of efforts but finally what you receive does not match with what you make contribution For instance, he said that there was one big project that he got a big project from other competitors in the market, however it was extremely time-consuming and exhausting What is worse, he did not receive an increase in salary for the next year

The remained idea is that higher income will lead to higher productivity in work andvice versa If people feel satisfied with their current income, they will focus completely in job, in other words, if such amount of money is not adapted their demand, sooner or after they will look for another company with better benefit In the time-being, some employees chose to do extra work for extra money such as online trading, Grab-bike driving,…

Promotion/reward

The important second- ranking cause is the promotion/reward system in an

organization It is acknowledged that any company also has its own the promotion/reward policy, however, whether it is good or makes employees feel satisfied should be discussed

All correspondents said that the Company’s policy regulates that only excellent

employees with over-performance in the previous year will be allowed to jump up level, it means that they will hold a higher position as well as take considerable power However, the number of promoted employees is limited and extremely difficult to get Furthermore,

performance appraisal is a bit subjective and not clear Therefore, this actually discourages

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JOB SATISFACTION IN RSM VIETNAM

employees from working hard to create more values for the Company as they do not feelmotivated

Another issue is about monetary reward policy Employees receive an extra amount

of money, so-called bonus, quarterly and yearly, but if such amount is not significant or even small, this will lead to low happiness and low satisfaction, one stated that One more thing is that all employees are received the same amount not depending on their position This will also make employees stay firmly in their current position, not endeavor to set them

as outstanding employees in the organization Under the benefit of the promotion/reward, the employees themselves feel to be an effective contributor and thus will be more satisfied with their job How can we keep those employees engaged, committed, loyal and focused? Reward them with respect

Recognition

This empirical interview shows that there is a relationship between recognition and employees’ level of satisfaction Recognition plays a significant role in creating happiness

as well as motivation for better work All interviewees confirm that the Company has

recognition policy, it takes place in the year-end period If they are recognized for their excellent performance during the fiscal year, they will be received “Certificate of excellent performance employee” and a little amount of money However, the most confusing thing isthey do not know how this procedure is evaluated to choose the competent ones and which criteria are based on

For almost interviewees, they acknowledge that a “thank you” or just turning aroundsaying “how things are going on” is much more powerful than a bonus – employees want toknow that their work is contributing to a greater good and helping to shape their career progression trajectory

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All correspondents agreed that recognition programs demonstrate respect for your employees A meaningful, thoughtful employee appreciation program is about valuing employees' efforts and having respect for who they are and what they do As having an employee recognition program not only can keep your company from capsizing, it can increase productivity and raise revenues The ability to effectively thank, reveal and coachwith recognition can make a sustained difference to an employee's career and a company'sfuture Therefore, if an organization has a good recognition program, this will make

employees more motivated and satisfied with their job

Another said that the spirit of achievement in the Company is not very high if

compared with other Big4 companies Employees here just do their daily assigned tasksfrom the leader, not actively ask for other tasks to do more, even though they have free time The reason is they do not have clear vision and plan for career by themselves

In contrast, another correspondent showed that setting and achieving goal career areextremely important for anyone Because once they reach to that, they will be satisfied withthemselves and what they have done and feel confident in keeping things going forward

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JOB SATISFACTION IN RSM VIETNAM

The final opinion is that the achievement leads to high job satisfaction and viceversa Take an example for this If people always reach goals they set up, they will getexcited with job and the company More importantly, they will surely be admired fromother colleagues Thus, this will possibly lead to engage in this company for longer

The next chapter will propose the list of potential solutions, which are expected tohelp increase the level of job satisfaction at RSM Vietnam

24JOB SATISFACTION IN RSM

VIETNAM

Employee loyalty

( Vand enberg

& Lance,

1992 )

L o w l e v e l o f

J o b s a t i s f a

( Mathieu & Zajac, 1990 )

( Ketchand & Strawser, 2001 )

Employee absenteeism

( Swee ney & McFar lin,

2002 )

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CHAPTER 4 SOLUTION INDENTIFICATION

4.1 Potential solutions development

When promoting job satisfaction amongst social workers, a question of which

key elements is important in helping to create and maintain job satisfaction

The author has searched for potential solution to make an improvement to the low level ofjob satisfaction in RSM Vietnam based on the previous research as well as the above focusgroup interview, as details:

Income/ pay

To provide an attractive income/pay policy to employees in RSM Vietnam, the Company should research and find out the average salary in the market For instance, whencompared to other competitors in the same industry, the Company’s monthly fixed amount

of money is not the same as theirs In addition, annual pay raise level is also smaller than theirs From the above, some of suggestions should be taken into consideration and taken swift actions as the following:

- The Company should brainstorm improvements in the income/pay policy at suitable level for retaining employees from being taken by other competitive

companies That increase amount often does not make the Company incur significantcost in comparison with those of recruiting new employees

- Based on the empirical interview, almost employees in the Company get payraise annually under the result of Employee Performance Appraisal, however somedoes not The main problem is that no clearing policy is publicized, so thoseemployees feel not satisfied with this result and lead to the environment full of doubtand

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jealousy, and of course they totally on work Thus, the clear and transparent policy ofperformance appraisal MUST be provided.

- Last but not least, creating and building up non-monetary incentive foremployees are also crucial to make employees more satisfied, e.g mealallowance, cell-phone

allowance, company travel, team–building, health insurance for whole family

Promotion/ reward

Upon the interview result, due to the small promotion/reward value employees receive, there is nothing to boost employees’ dedication to the Company Therefore, any change in the reward value in monetary as well as other same forms (e.g tour, long-day annual leave) will make considerable effect on encouraging them to contribute more to theCompany’s success, and more importantly, to retain them from resigning

Apart from the above physical aspect, another kind of reward the Company shoulddeal consider is the form of speeding up Employer can reward staff in team meeting,

sending Thank-you email for their achievement or even share the successful story to the bulletin board so everybody will know However, the most important thing is about whenthis should be happened, it means that employees must be recognized their contribution timely Encouraging and rewarding employees’ achievement timely will motivate

employees to make endeavor to create more value to the Company

The next point is about employee appraisal issue (e.g who is deserved to get

promotion/reward from the Company, the procedure is subjective or objective, whether this depends much on some special relationship In general, almost employees admitted that this appraisal lacks of obviousness and has still subjective opinion of the appraiser Accordingly,

a structure under integrity procedure and clearly scale including qualitative and quantitative analysis method should be build up as soon as possible Afterward, the Company has to