Luận văn thạc sỹ: RECOMMENDATIONS TO IMPROVE RECRUITMENT AND SELECTION IN SSI – HANOI BRANCH

The Hanoi Stock Exchange (HNX) and Ho Chi Minh City Securities Trading Center (HOSE) were officially inaugurated on July 20, 2000. From its beginning, Vietnamese stock market has been developed rapidly. Currently, by the end of 2009, the total market capital is approximate 40 billion US dollar, and total daily trade of both HOSE and HNX is more than 100 million US dollar. According to estimation in 2010 the capital size of the stock market will be increased many times when much more companies have planned to register their stocks to be listed on HOSE and HNX. As a result, Vietnamese stock market will become very promising and challenging in the future. There were two securities companies in year 2000 at the inception of HOSE and HNX, but that number has been added massively years to years. During the last period, the market was shared by several big and old securities companies, such as SSI, BVS, ACBS and ICBS. Because of the boom of stock market in 2006 together with the tendency to post up of joint stock companies there were a wave of new established securities companies and that leads to the lack of qualified human resource working in stock market. Up to now, there are more than one hundred securities companies are operated in the market and gradually seize the market share, and this number will continue to grow in later years. This trails the demand for human resource has been ongoing increased. Most companies have endeavored to recruit and select employees who are qualified and experienced in finance. Because of the intellectual business field, recruitment and selection are very important processes; these are crucial first steps for a company to employ the appropriate candidates for particular jobs. Unless a company selects the right people by using suitable recruitment and selection process, it will lose money and time to fix the consequences. Requirement for employees, who work in securities companies, are more rigorous than in other fields. It requires certificate on practicing professional competence issued by State Stock Committee (SSC) beside other requirements such as experience, knowledge, professional skills. Therefore, in order to minimize the cost and time wasting caused by poor performance of staffs the lack of deliberation in recruitment and selection, securities companies have to set up the reasonable human resource plans which first pays attention on recruitment and selection process. When the Vietnamese Stock market boomed in 2006, securities companies were established with incremental number. At that time, the supply of qualified labor in this field was lack. As a result, most securities companies recruited employees recklessly, a huge number of their workforce didn’t have knowledge and experienced about stock market, they even didn’t have certificates issued by SSC. This lack of deliberation caused serious consequences, poor performance of staffs caused unsatisfactory of customers, companies’ prestige reduction and high turnover. The world financial crisis took place in 2007 and 2008, the workforce in securities companies was tumble reduction and they are fired with huge number. But after suffering the world financial crisis, at the end of 2008 up to now, the Vietnamese stock market has been recovered with moderate speed and the demand for workforce is increasing again. With the new situation, securities companies have been cautious in recruiting and selecting their workforce. According to the results of the survey on website vneconomy.com.vn in 2009 about human resource situation in stock market, 57% of people agreed that the recruitment of fit well talents will be the major challenge in 2010-2015. So 72% of securities companies surveyed said the budget for personnel operations of their company will increase in 2010-2015. At the National Meeting about Finance and Banking human resources, Finance Ministry leaders said the demand for human resource in 2010 in stock market is 5,000 people, but in fact the current human resource is only meet 40% demand. So, the competition between securities companies in recruiting people is getting fiercer. Saigon Securities Inc. was established 2000, with charter capital was 6 billion VND, offering only brokerage and stock investment advisory services. As Vietnam’s premier financial services company, SSI commits to providing unrivaled investment intelligence and opportunities, and consistently superior customer service. With its large scale, SSI is trying to build up a qualified, dynamic and creative workforce to meet customers’ demand and company’s business strategy. The company considers recruitment and selection are the important tasks to bring success to SSI. SSI has recruited more and more staffs recently because of the company’s expansion. But division managers are displeasure about the effectiveness of recruitment and selection of Human Resource Department. According to the result of my survey conducted in November 2011, about 67% of line managers complain about their staffs’ performance, ability and knowledge. Many staffs work with low speed and make mistakes regularly. In some cases, those situations cause serious consequences. The managers have to return staffs to Human Resource Department for retraining, transferring to another departments or even ending the labor contract. As a result, the turnover is quite high, about more than17% in average for four years, from 2008 to 2011, and most staffs leave SSI involuntarily. Therefore, the cost for retraining staffs, terminating contracts and recruiting new people is also really high. On the other hand, I found that many newly staffs in SSI are dispirited and stressful; they have to spend much time to familiarize themselves with the job and the company’s culture, because they are not given concrete job descriptions at the starting time, they are not trained about the job and SSI’s culture either.