UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business LE ĐOAN NHAN TURNOVER RATE AND UNFAIR PAYING SALARY AND BENEFIT AT TIN NGHIA PETROL JOINT STOCK COMPANY MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City – Year 2018 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business LE ĐOAN NHAN TURNOVER RATE AND UNFAIR PAYING SALARY AND BENEFIT AT TIN NGHIA PETROL JOINT STOCK COMPANY ID: 22140032 MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: PHAN THI MINH THU Ho Chi Minh City – Year 2018 Executive summary There are potentially existing problems in Tin Nghia Petrol Company which may reduce the competition edge of organization and harm to its culture This research was commissioned to examine what problem in the company, the causes leading to problem are and to suggest the validated solutions to deal with problem, which are in line with company’s policy and resources The main purpose of this thesis is to explore the causes of high turnover rate through the current problems with staffs at Tin Nghia Petrol Company Method of analysis is combined between validated data and theory-informed which collected through in-depth interview and company survey to explore the causes of problem The findings of the study revealed that unfair paying salary and benefit tend to play a significant role in turnover intention of staffs The findings are discussed in details in the research along with some recommendations for the company and management board to increase the level of employee satisfaction and reduce the turnover intention in Tin Nghia Petrol Company The solutions focus on main cause of unfair paying salary and benefit: - Setting up paying salary and benefit based on performance - Build the performance appraisal logic and fairly combine setting up KPIs system with clear job description Total cost to implement above solutions is approximately 250milion VND In currently, this cost is really high but it will be strategic objective to 2030, the company aim for investing in human resource Acknowledgements I would like to acknowledge all who supported me during my studies without I wouldn’t be where I am today I would especially like to thank my supervisor – Professor Phan Thi Minh Thu for all her advice and guidance, without her help this could not finish my thesis I also would like to show my gratitude to my colleagues at work and classmates at ISB for their continuous support Table of content INTRODUCTION 1.1 The company background 1.2 Company structure and mission PROBLEM CONTEXT 2.1 The turnover rate status in the Tin Nghia Company 2.2 Background of the symptom PROBLEM INDENTIFICATION 11 3.1.1 Unfair assigned workload to staff of supervisor 11 3.1.2 Unfair paying and benefit 12 3.1.3 Promotion appraisal bias 13 3.1.4 Repeated and boring working 14 3.2 Justify problem in term of importance 15 3.3 Final Causes and effect map 16 3.4 Cause validation 17 ALTERNATIVE SOLUTIONS 20 4.1 The first alternative solution: Setting up salary and benefit policy based on performance 4.2 The second alternative solution: build the performance appraisal logic and fairly combine setting up KPIs system with clear job description 4.3 The third alternative solution: Proving some training programs to low performance staffs EVALUATION OF SOLUTIONS AND ORGANIZATION OF ACTION 5.1 Evaluation of solutions 22 5.2 Organization of actions 23 SUPPORTING INFORMATION 25 Appendices 25 References LIST OF FIGURES Figure Staff of age at Company in 2016 Figure Quantity of staffs leaving in each age period from 2013-2016 Figure Result of evaluated performance of staff position in detail each group of age Figure Ratio of staff with high performance in detail each group of age period from 2013 to 2016 LIST OF TABLE Table The number of employees left period from 2013-2016 Table Table salary scale period 2015 to 2017 INTRODUCTION 1.1 THE COMPANY BACKGROUND General information: Tin Nghia Petrol Joint Stock Company officially operated as a Joint Stock Company on January 1st, 2009 based on the conversion from Tin Nghia Petrol One Member Company Limited (established in 1999 – a subsidiary company of Tin Nghia Corparation) With two petrol stations from the beginning stage, the output was only some of million liters per year; up to now, the company has a wide distribution network in Dong Nai Province with sale volume of hundreds million liters per year turnover reached trillions of VND per year and many consecutive years have been name in Top 500 largest enterprises in Vietnam Apart from company’s retail system, also distribute many agencies and industrial customers in and out of Dong Nai province Petroleum trading is the main business with turnover more than 90% of total revenue and continuous development over many years Foundation and development process: Through nearly 20 years of foundation and development, with over 350 employees, Tin Nghia’s brand name gradually affirms in Dong Nai market as well as Southeast region, and attracts more and more customers Distribution system includes 44 locations in Bien Hoa and some towns as Vinh Cuu, Cam My, Xuan Loc, Long Thanh, and so on In addition, the company has 30 petroleum agencies, nearly 200 industrial customers (including factories, companies using petroleum oil as fuel) and more than 1,000 other customers (such as garages, transportation units…) Annual output increased from 7% to 10% sale reached over 3,000 billion VND With 16 tankers and trucks, we provide transportation service for all trading activities such as gasoline, lubricant and gas tanks to internal petrol station and company’s suppliers Annual transportation volume increase from 10% to 15% and reaches 200 million liters of gasoline and over 2,000 tons of gas tanks 1.2 Company structure and mission General Director Vice General Director Sale Department The first petrol stations area The second petrol stations area Finance and Accounting Department Administration and HR Department The third petrol stations area The fourth petrol stations area The fifth petrol stations area Tin Nghia Petrol Organization Structure Technology Investment Department ……… The eleventh petrol stations area PROBLEM CONTEXT 2.1 The turnover rate status in the Tin Nghia Company According to the statistics shown in the company’s reports, the number of employees leave at Tin Nghia Petrol has been increasing in the past years (20132016) Especially in staff position, this number of staffs quitted their jobs are even more surprising This problem poses a threat to the company’s mission to grow in next time Year Position Board of Director Supervisor Team leader Staff Worker Total 2013 Quality Rate 0% 2% 2% 10 24% 30 71% 42 100% 2014 Quality Rate 0% 0% 0% 20 42% 28 58% 48 100% 2015 Quality Rate 0% 0% 2% 28 46% 32 52% 61 100% 2016 Quality Rate 0% 0% 0% 35 53% 31 47% 66 100% Table1.The number of employees left period from 2013-2016 (Source: Human Resource Department) Based on the number of employees at Company period 2013-2016, the number of staffs leaving continued to increase during this period (form 10 to 35 people) while other position nearly keep unchanged It can be seen that the number of workers left is also very high but they are nearly the same in period from 2013 to 2015 while staff leaving have being increased Worker position is easy to recruit with simple requirements to have high school diploma or equivalent (not required to graduate at colleges or university), physical strength and dexterity Addition, the time is short for them to train so that the number of quitted workers is not problem in the company According to Price et al.1 with Causal Model of Turnover (voluntary leaving from an organization), turnover is defined as the ratio of the number of organizational members who have left and divided by the average number of people in that organization during the period The model shows that intent to stay has a direct negative impact on turnover, when job satisfaction increases, intent to stay with the organization will be increased Micheal et al.2 indicated that employee turnover is one of the persisting problems in organizations Arie et al.3 showed that high employee turnover is related to lower organization performance The manager is caring the number of staff leaving because of its excessive growth in the period from 2013 to 2015 (from 10 to 35 people, from 24% to 53%) Staff position has various function in the company, including commercial finance, accounting, marketing, project appraisal, recruitment, compensation & benefit in Head According to Mrs Tran Thi Ngoc Ngan, a general accountant, 35 years old, had left company years ago She worked at Tin Nghia Company for 10 years shared that: Promotion opportunity will never come to me by bias Supervisor always assigned a large of workload to talent staffs I also, I have to cover nearly all of workload of financial team which belong to supervisor’s responsibility but my salary is at 1/3 supervisor’s Addition, benefit every year, supervisor will traveling to abroad Korea, Japan, China, Australia while staffs travel to Vung Tau, DaLat, Mui Ne Interview with staffs of Sale Department, a functional team about their promotion opportunity to get higher position and as a result for this interview is an answer at the same: “We will never have any opportunities to promote higher position because this position will be put for nephew of marketing Manager They are share more: “if we want to get higher position we have to find another company” The staffs always try their best in their work to looking for an opportunity for their promotion because they expect to improve your income and get higher benefit However, promotion opportunity will never come to them by bias factor Nezire et al.14 stated that favoritism is a natural phenomenon which exists in every company Therefore, job promotion favoritism is very difficult to solve immediately  Regarding to paying salary not based on performance is considered potential cause that affect high turnover of talent staffs The talent staffs often complained that they were assigned a large of task by supervisor, but their salary and benefit unchanged They also compare with high seniority staffs about salary, benefit and workload allocation Currently, paying salary policy for indirect employee (director/manager/ supervisor/ staff of functional department) is paid including elements: position, education level and seniority (how long has employee been the company) Position takes more of total income, next educational qualification, finally experience working time, not based on performance Therefore, the high performance staffs who are low seniority always feel unfair about their salary The trust is, they compare with other staffs are paid higher salary level but lower performance Unit: 1000 vnđ Position Director Vice direct Supervisor Team leader Staff 1st level 80 50 30 20 2nd level 100 60 35 25 3rd level 120 70 40 30 10 4th level 45 35 11 Note: Grow up one level for after years 18 5th 6th 7th level level level 50 40 12 45 13 50 14 8th level 9th level 10th level 15 16 17 Table 2.Table salary scale period 2015 to 2017 (Source: Human Resource Department) Mr Nguyen Van Thanh- technology staff, 30 years old, had left company year ago, shared that: “I had worked at company for years, my salary is lower than other staffs, we at the same functional team, the same position, the same educational level but they have spent more 10 years at the company while I spent for year Despite of my work is more than theirs and my performance is also higher very much I think that I did not recognize and unfair paying” They feel like they are paid unfair They have worked so hard and contributed their time and efforts into the current works, and even cover for low performance staffs They perform much excess than the pay that they get and they feel unfair at that time Mr Tran Duc Tuan-supervisor of Technology Department share that I have to assign tasks to the best staffs more than the other staffs because they themselves satisfy my requirement but I cannot decide their salary.” Mowday et al15 stated that Employee Turnover occurs when individuals perceive that their contributions to an organization exceed the inducements they received from that organization According to this theory, staffs are looking from the organization to provide incentive that balance their contribution When a staff cannot get satisfaction, he/she quit his/her job from organization Data was collected from the staffs are working at Tin Nghia Company These current staffs focus on who are up 35 years old and seniority more than 10 years (the third group) showed that it like strong proof about paying salary and benefit which not based on performance leading to compare and decide to leave the Tin Nghia company of talent staff No Question 01 I know that you have spent more time at Tin Nghia Company Do you satisfy your current job? Can you share me detail about this? Mrs Luong Thi My Chi, accountant, 48 years old, has worked at company for 25 years Mrs Nguyen Thi Phuong, administration staff, 45 years old, has worked for 20 years Mr Le Van Nga, sale man, 50 years old, has worked at company for 20 years I satisfied my current job I am so old to find another job Addition, I worked at the company for 20years, my salary is higher which I can look for another company Not exactly Daily repeated working make me boring but I cannot find out another job better Moreover, I have worked at the company for 20 years, so I can get high salary level After every years, I will get higher salary level Not exactly I cannot find another job better and suitable with my age 19 O'Halloran16 revealed that benefits tend to reduce turnover According to this theory, if the staffs receive some more benefits based on their good performance, their intention to leave is lower than others ALTERNATIVE SOLUTIONS As above analysis, it can be seen that the main cause of high turnover rate is paying salary and benefit not based on performance Therefore, this part would focus on giving solutions to solve this cause 4.1 The first alternative solution: Setting up salary and benefit policy based on performance The first action should come from the Human Resources Department, they need to set up paying salary process fairly and try many ways to evaluate the staff equity and effectively Based on the real experience from Director and the specific context of Tin Nghia Company, He shared that: Periods from 1999 to 2010: It supposed that paying salary and benefit not based on performance is suitable and effective because of organization subsidy Periods from 2011 to 2012: It began have a sign of inconsequence because Tin Nghia Company operated as a Joint Stock Company in 2009 Periods from 2013 to 2016: It is not suitable and effective with technology and modern economic In this period, it is potential cause lead to high turnover rate of talent staffs in Tin Nghia Company It can be seen that the salary and benefit system should be based on element performance According to Mark Huselid17 found that a correlation between high performance work practices and organizational performance Mr Nguyen The Anh-IT staff, 28years old, who left company year ago He worked at Tin Nghia Company for years, share that: He has a great sense of personal satisfaction with his new job after you have left Tin Nghia Company Because he is recognized and when he tries his better, he will get higher salary This is reason why he satisfies his current job which he will never get in Tin Nghia Company Paul Suff et al.18 found that now performance‐related pay is a firm fixture of many companies reward strategies and it can form an effective motivational tool Mr.Tran Duc Tuan - Technology and Development Manager, share that: In his opinion, which factors for staffs to job well and improve engaged with company is paying salary should not base on seniority should base on performance Clark et al.19 pointed to the diminishing magnitude of seniority pay practices as a possible cause of the flattening of the earnings profile 20 As Lazear 20 has shown, seniority-based pay is a mechanism to bind employees and to set incentives against shirking where the effort of employees is difficult to observe  Benefit:  Avoid comparing about paying salary and benefit between high performance staffs and low performance staffs  Creating measured methods that will encourage and recognize achievements and staffs contributions  The staffs with high seniority understand that they have to improve their task skill to get high performance if they want to increase their income 4.2 The second alternative solution: build the performance appraisal logic and fairly combine setting up KPIs system with clear job description When income of staffs based on their performance is the most important requirement of evaluation staff performance is just and exactly Therefore, at that time the Human Resources Department also needs build the performance appraisal logic and clearly The performance appraisal system must be clear and use objective criteria to measure people’ performance This system must contain both feedback the employees’ manager, HR department and the most important the employees’ feedbacks on their manager to avoid the supervisor favoritism Assigning the appropriate workload to staffs in each Department is the problem that the supervisor needs to clearly consider It needs to ensure the fairness among staffs and to avoid giving the talent staff high workload, the supervisor just assigned to those whom they think that they can solve the job quickly and satisfy working requirement However, even the staffs would try to complete the huge workload with their efforts to increase your income, but if the situation lasted long, they would feel the unfairness because they must cover the workload of other staffs For long term, their spirit would be down and affect to their performance and the company business Therefore, KPIs system is set to the staff know well the task belong to their responsibility Supervisors assign the task to staff in order to ensure the fairness among members of each Department Orrell21 stated manager should be very realistic in assigning tasks to members in the team in order to ensure the fairness among employees This will bring the fairness among staffs in Department and the best staffs will not be pressured since they need to burden the workload of the team They also will be more motivated to complete their job with the all their efforts to deliver the best results  Benefit:  Avoid the performance appraisal biases from supervisors have been examined by considering their salary and benefit  Ensure the fairness among staffs and to avoid giving the talent staff high workload 21 4.3 The third alternative solution: Proving some training programs to low performance staffs The current staffs have high seniority is focus on group upper 35 age and performance is evaluated low than other groups They tend to wait their high seniority to get high salary level, they satisfy themselves and lack of motivation From that, time by time, the skills of tasks are limited When setting a new paying salary and benefit policy, based on performance, ignore seniority factor, they cannot confirm the necessary of their position in the growth of organization, opportunity for increasing income does not easily come Therefore, It is required that the company should provide some of training programs about skill of task or other soft skill such as: improved learning group dynamics, gaining self - confidence, making individual decisions and a to make sure that all them have chance to equip themselves with the required skills These skills can have direct and positive effects to their behaviors in both work and their personal life confirmed Myers et al.22 stated that education and work experience are the two forms of human capital individuals are most likely to acquire during their careers 11.5% in annual earning Mincer 23 found that an additional year of schooling yielded a net increase of 11.5% in annual earnings Benson et al.24 stated that the most companies use education as an indicator of a person’s skill levels or productivity and as a requirement in hiring decisions  Benefit:  They can have an opportunity to change themselves, in a better way  They can confirm the necessary of their position in the growth of organization, opportunity for increasing income come easier Evaluation of solutions and Organization of actions 5.1 Evaluation of solutions In general, to deal main causes, paying salary and benefit not based on performance, there are three alternative solutions proposed and validated, which are setting up paying salary and benefit based on performance, build the performance appraisal logic and fairly combine setting up KPIs system with clear job description and proving some training programs to low performance staffs The first alternative solution is setting up paying salary and benefit based on performance This solution is necessary for application as soon as possible to avoid comparing about paying salary and benefit between high performance staffs and low performance staffs and low turnover rate of staffs Addition, it will create measured methods that will encourage and recognize achievements and staffs contributions 22 The second alternative solution is build the performance appraisal logic and fairly combine setting up KPIs system with clear job description This is effective to avoid the performance appraisal biases from supervisors have been examined by considering their salary and benefit Because when income of staffs based on their performance is the most important requirement of evaluation staff performance is just and exactly Mrs Tran Thi Quynh Tam-chief accountant of company share that: In her opinion, which factors for staffs to job well and improve engaged with company is setting up performance evaluation system clearly, logic and fairly Mrs Tran Thi Ngoc Ngan, a general accountant, 35 years old, who left company for years, share that: She satisfies her job at new company because it have performance evaluation system for every position clearly and logic Addition, it very is fair for every position to assign workload and paying salary For me, KPI is effective method for using in Tin Nghia Comapy and Tin Nghia should apply Charles et al.25 stated that using good appraisal system to evaluate performance could lower levels of turnover in organizations The third alternative solution is proving some training programs to low performance staffs This solution is difficult to solve effectively because it belongs to human psychology and personal sense Proving some training programs will waste money if the staffs satisfy themselves and they just completed their task as acceptable level rather than taking time to investigate the new things Therefore, it is not necessary to apply 5.2 Organization of actions Human resources department should be responsible for the implementation plan which lasts for one year and is applies to functional department Objective of change plan is clearly to implement three mentioned alternative solutions within timeline and budget approve The actions list is built following timeline below to ensure the actions will happen in 2017 On June 2017: HR Manager to communicate with Board of director about the problem high turnover rate of staffs is happening in functional departments, potential cause which is validated through evidence and informed by theory Then Board of Director will discuss to set time line and budget for three mentioned alternative solutions On July 2017: HR Department decide to choice Vietnam Chamber of Commerce and Industry (VCCI) for setting up new salary and benefit system and KPIs 23 system for each position based on the specific context of Tin Nghia Company Paying salary and benefit policy with factor performance  Cost: Effective setting up new salary and benefit system and KPIs for each position cost is estimated about VND 250,000,000 based on the quotation from VCCI No Description Estimated cost (VND) Meetings between departments, Human Resource 30,000,000 Department and VCCI Group to get ideas and create assessment criteria for each position, key performance question, job position indicators The draft table salary scale focus on paying based on 80,000,000 performance follow Specifically work and real working environment at Tin Nghia Company The method to paying salary and benefit system effective and exactly Criteria salary for retention and attractive the best staffs Allowance for expert/designer Total 50,000,000 40,000,000 50,000,000 250,000,000 Total cost to implement above solutions is approximately 250 milion VND In currently, this cost is really high but it will be strategic objective to 2030, the company aim for investing in human resource, and attract more and more employees with high performance This human resource will play an important role in business operation because they satisfy all working supervisor’s requirement perfectly, they are good at major subject and their solution in work quickly and exactly On October 2017: Test application new paying salary and benefit policy during to months During this time, HR department will analysis the survey result and receive feedback from functional team and make correction At this time, supervisor of functional teams to start discussion and review job description with their subordinate to get full and detail working activities of the staffs, considering to clarify the job requirement and benefit to know that functional staffs may receive as working at this position Under guidance of HR manager, supervisor of functional teams apply the performance appraisal process combine setting up KPIs system with clear job description On January 2018: Apply new paying salary and benefit policy officially and performance appraisal logic and fairly combine setting up KPIs system with clear job description 24 SUPPORTING INFORMATION The first, secondary data were collected in this thesis consists of literatures, journals, Human management books, researches and the report, statistical number of Human Resources department The second, primary data is collected through conducting a qualitative research The main method for collecting qualitative data is in-depth interviews The purpose of the interview is to collect general data and opinions of interviewees about the existence of problem as well as its potential causes and their suggested solutions The in-depth interview session are conducted from main groups, first group: managers/supervisors; second group: staffs had left the company/staffs with high performance and third group current staffs/staffs spent for a long time at the company INTERVIEW GUIDE Research objectives: The existence of problem, finding out the potential reason why the staffs decide to leave the company and propose the solutions to solve it Overall discussion framework: Key content Objectives The existence of problem To understand the current problem of the staffs decide to leave the company, especially, the staffs with high performance To find out potential causes leading to high turnover rate of talent staffs at Tin Nghia Company Explore the cause of high turnover rate and the main reasons The solutions To find out the solutions Appendix Group 1: Managers/supervisors who are currently working for Tin Nghia Company Mrs Phan Thi Loi - Human Resources Manager Mr Tran Thanh Tung Planning and Development Department Manager Mr.Tran Duc Tuan - Technology and Development Supervisor Mrs Tran Thi Quynh Tam-chief accountant of company Question: In your opinion, Could you share the reason why many talent staffs at Tin Nghia left the company? In your point of view, what is the main cause that leads to high turnover rate? Why you think so? Do you think that the staffs spent for a long time at the company is more experience and high performance than staffs spend for short time? In your opinion, which factors for staffs to job well and engaged high with company? 25 No Question Mrs Phan Thi Loi Human Resources Manager Mr Tran Thanh Tung Planning and Development Department Manager Mr.Tran Duc Tuan Technology and Development Manager Mrs Tran Thi Quynh Tamchief accountant of company 01 In your opinion, Could you share the reason why many talent staffs at Tin Nghia left the company? - Unfair assigned workload to staffs of supervisor - Not opportunity for staff to job promote - Career development - Not performance evaluation system for staffs clearly - Talent staffs complain that having a very large gap about salary and benefit between staffs position and supervisor/manager position Comparing between talent staffs with seniority staffs about salary, benefit and workload allocation - Paying salary not based on performance -Promotion appraisal bias 02 What is the main cause that leads to high turnover rate? Not opportunity for staff to job promote Comparing between talent staffs with seniority staffs about salary, benefit and workload allocation Paying salary not based on performance 03 Do you think that the staffs spent for a long time at the company is more experience and high performance than staffs spend for short time? It may be right in some cases When a staff is used to their work, they will get more experience to it effectively I don’t think more seniority is more experience and high performance It belongs to their private ability and their effort to their job Currently, real environment company, the staffs know to apply science and technology effective to work will get high performance anyway more or less seniority It is not exactly at the company in recent years Because result of evaluation show that the staffs with low performance focus on staffs over 35 years 04 In your opinion, which factors for staffs to job well and improve engaged with company? Because the staff will not any opportunities for promotion, paying salary and benefit policy should shorten gap between staff position and supervisor/manager position Paying salary and benefit should base on the performance Paying salary should not base on seniority should base on performance Setting up performance evaluation system clearly, logic and fairly 26 -Not more environment for talent staffs to development -Lack of reward and recognition Appendix Group 2: The staffs had left several years ago Mr Nguyen The Anh-IT staff, 28years old, who left company year ago He worked at Tin Nghia company for years Mr Duy- a sale man, 32 years old, who left company for year He worked at Tin Nghia company for years Mrs Tran Thi Ngoc Ngan, a general accountant, 35 years old, who left company for years She worked at Tin Nghia company for 10 years Mr Nguyen Hoai Nam, an electrical engineer, 26 years old and Mr Nguyen Van Thanh, technology staff, 30 years old They left company for year and had worked at the company for years Question: Could you please share me the reasons why you decided to leave Tin Nghia Company? Could you please share me the main reason and the details about that you have mentioned about the unfair paying salary and benefit factor? Do you feel a great sense of personal satisfaction with your current job after you have left Tin Nghia Company? Why you have this satisfaction? No Question 01 Mr Nguyen The Anh-IT staff Could you please share me the reasons why you decided to leave Tin Nghia Company? Could you please share me the main reason and the details about that you have mentioned about the unfair paying salary and benefit factor? Do you feel a great sense of personal satisfaction with your current job after you have left Tin Nghia Company? Why you have this satisfaction? -Assigned more task but salary and benefit unchanged Paying salary not based on performance - Lack of reward and recognition -Lack of recognition and paying salary not based on performance I think my ability can cover multiple tasks but the more I well the more task but salary and benefit not more Unfair paying salary and benefit Yes, I satisfy my current job Although, my current salary is not higher, I am recognized If I try my better, I will get higher salary in next year This is reason why I satisfy my current job which I will never get in Tin Nghia company 27 02 Mr Duy- a sale man, 32 years old - Not opportunity for my promotion by bias Promotion is a way to increase salary and benefit but it will never come to me by bias 03 Mrs Tran Thi Ngoc Ngan, a general accountant, 35 years old -Promotion appraisal bias -Not performance evaluation system for staffs clearly so lack of recognition - Having a very large gap about salary and benefit between staffs position and supervisor/manager position I think unfair paying salary and benefit 04 Mr Nguyen Hoai Nam, an electrical engineer, 26 years old and Mr Nguyen Van Thanh, technology staff, 30 years old -Assigned more task but salary and benefit unchanged -Comparing between with seniority staffs about salary, benefit and workload allocation 28 -Promotion opportunity will never come to me by bias This means that, opportunity to get high salary and benefit also never come to me Salary and benefit for manager and supervisor position is very high Only one way I have to wait every years, I will get higher salary level, after 10 years, my salary will at ½ the current salary of supervisor - Promotion opportunity will never come to me by bias -Supervisor always assigned a large of workload to talent staffs I also, I have to cover nearly all of workload of financial team which belong to supervisor’s responsibility but my salary is at 1/3 supervisor’s Addition, benefit every year, supervisor will traveling to abroad Korea, Japan, China, Australia while staffs travel to Vung Tau, DaLat, Mui Ne -Paying salary not based on performance We were assigned a large of workload and were evaluated high performance but our salary and benefit is lower than other staffs because of lower seniority Yes I can find out a supervisor position out of Tin Nghia company by my ability and experience Now, I am a supervisor at other company Yes, I satisfy my job at current company It have performance evaluation system for every position clearly and logic Therefore, it very fair for every position to assign workload and paying salary For me, KPI is effective method for using in Tin Nghia Comapy Yes, we satisfy our current job because our salary and benefit are paid effectively Appendix Group 3: The staffs are working at Tin Nghia Company These current staffs focus on who are up 35 years old and seniority more than 10 years Mrs Luong Thi My Chi, accountant, 42 years old, has worked at company for 15 years Mrs Nguyen Thi Phuong, administration staff, 45 years old, has worked for 18 years Mr Le Van Nga, sale man, 50 years old, has worked at company for 20 years Question: I know that you have spent more time at Tin Nghia Company Do you satisfy your current job? Could you share me detail about this? Could you share me your point of view about high turnover rate of staffs in recent years? The company will set up new some policies to change unsuitable one and if this affect passive to your benefit (example paying salary and benefit policy, performance related pay, not based on seniority factor) what will you do? No Question Mrs Luong Thi My Chi, accountant, 48 years old, has worked at company for 25 years Mrs Nguyen Thi Phuong, administration staff, 45 years old, has worked for 20 years Mr Le Van Nga, sale man, 50 years old, has worked at company for 20 years Not exactly Daily repeated working make me boring but I cannot find out another job better Moreover, I have worked at the company for 20 years, so I can get high salary level After every years, I will get higher salary level I don’t care more about this Not exactly I cannot find another job better and suitable with my age 01 I know that you have spent more time at Tin Nghia Company Do you satisfy your current job? Can you share me detail about this? I satisfied my current job I am so old to find another job Addition, I worked at the company for 25 years, my salary is higher which I can look for another company 02 Could you share me your point of view about high turnover rate of staffs in recent years? I think the staffs who quite their job because they are young, active and talent, they need more dynamic environment working to improve themself 29 The left staffs were focus on group 25-30 age They are young and talent but they have any opportunities for job promotion If I were young, I would have done like them 03 The company will set up new some policies to change unsuitable one and if this affect passive to your benefit (example paying salary and benefit policy, performance related pay, not based on seniority factor) what will you do? It is not my problem I will retire in next years 30 It also makes me worried because I am very old to catch up with high tech working requirement I need some training programs about task skill to improve my skill as I can It also makes me worried but in another way it is motivation for me to improve myself Old policy can give me more benefit but it makes me satisfy myself and lack of motivation Training program about skill task is necessary to me Reference [1] Price JL, Mueller CW A causal model of turnover for nurses Acad Manage J 1981;24(3):543-65 [2] Michael A, tephen T Armstrong s handbook of human resource management practice 7th ed London: Kogan Page; 2009 [3] Arie CG, Erik HB Is high employee turnover really harmful? 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International School of Business LE ĐOAN NHAN TURNOVER RATE AND UNFAIR PAYING SALARY AND BENEFIT AT TIN NGHIA PETROL JOINT STOCK COMPANY ID: 22140032 MASTER OF BUSINESS ADMINISTRATION... Table Table salary scale period 2015 to 2017 1 INTRODUCTION 1.1 THE COMPANY BACKGROUND General information: Tin Nghia Petrol Joint Stock Company officially operated as a Joint Stock Company on... second petrol stations area Finance and Accounting Department Administration and HR Department The third petrol stations area The fourth petrol stations area The fifth petrol stations area Tin Nghia