MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HOCHIMINH CITY DUONG THANH LONG FACTORS AFFECTING JOB RESIGNATION INTENTION OF LIFE INSURANCE AGENTS IN DONG NAI Class : eMBA K18 Ology code : 60.05 MASTER THESIS Instructor : Dr. TRAN HA MINH QUAN HO CHI MINH CITY 2012 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ACKNOWLEDGEMENTS First of all, I would like to thank my advisor Dr. Tran Ha Minh Quan for his enthusiastic and excellent supervision, encouragement and academic guidance to me during this research. He was always there to listen to me and to give advice as well as reference sources of modern thesis platform.
He taught me how to ask questions and express ideas. He showed me different ways to approach a research problem and encouraged me to be persistent to accomplish any goal. Second, my wholehearted appreciation is also more importantly dedicated to my family, especially my wife, she was also my MBA classmate, her emotional and schedule supports have greatly contributed to completing this academic research and study. And then I would like to give my heartfelt gratefulness to Mr.
Tam and all my friends in Manulife Dongnai, who helped me much in completing the questionaire. Finally, I would like to thank HCMC University of Economics for giving me the good environment to study and chance for improving my knowledge. i LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com TABLE OF CONTENTS LIST OF TABLES. v LIST OF FIGURES.
vi CHAPTER 1: INTRODUCTION. Object and scope of research. Significance of Study. 3 CHAPTER 2: LITERATURE REVIEW.
General view on life insurance and insurance agents. Definition of life insurance. Job features and requirements of life insurance agents. Some basic reasons make insurance agent resign from work.
General view of theories related to the job-resignation intention. Maslow’s hierarchy of needs (1943). Herzberg’s Two Factor Theory (1959). Adams’ Equity Theory (1963).
Alderfer’s ERG theory (1969). Goal setting and task motivation of Edwin Locke (1968) and Kenneth A. Studies related to the thesis. Study of Nguyen Quang Thu (2005).
Study of Đao Minh Tuyen (2008),. Study of Vo Quoc Hung and Cao Hao Thi (2009),. 17 ii LUAN VAN CHAT LUONG download : add luanvanchat@agmail. Study of Vu Mong Thuy My (2009).
Study of Nguyen Bich Tram (2012),. Studying of affecting factors. Objectives of primary research. Deployment methods for primary research.
Building of research’s models, hypothesis and official variables. Definition of variables. Sample selection method. Develop scale and design questionnaire.
Analyze and process data by statistic tools. Accredit accuracy of scale. Exploratory Factor Analysis.Linear regression analysis and accredit research assumptions. 40 CHAPTER 4: DATA ANALYSIS AND INTERPRETATION.
Analysis of scale reliability. Analysis of discovered factors and adjustment of the study models. Analysis of discovered factors for variables. Analysis of discovered factors for the dependent variables.
Adjustment of study models and hypothesis. 50 iii LUAN VAN CHAT LUONG download : add luanvanchat@agmail. Linear regression analysis and hypothesis testing. Linear regression analysis.
57 CHAPTER 5: CONCLUSIONS AND RECOMMENDATION. vii APPENDIX 1: QUESTIONNAIRE ON FACTORS OF PRODUCTIONS FOR JOB- RESIGNATION INTENTION. x APPENDIX 2: OUTLINE FOR GROUP DISCUSSION.xiii APPENDIX 3: TEMPORARY RESEARCH RESULTS ON VARIABLES AFFECTING JOB-RESIGNATION INTENTION .xxi APPENDIX 4: OFFICIAL QUESTIONNAIRE .xxii APPENDIX 5: FREQUENCY TABLE .xxvi APPENDIX 6: RELIABILITY ANALYSIS SCALE .xxxiv APPENDIX 7: EXPLORATORY FACTOR ANALYSIS 1. xli APPENDIX 8: EXPLORATORY FACTOR ANALYSIS 2 .xliii APPENDIX 9: RESIDUALS.
xlv APPENDIX 10: RESIDUALS CORRELATION AND COLLINEARITY. li APPENDIX 11: QUESTIONNAIRE ON FACTORS OF PRODUCTIONS FOR JOB- RESIGNATION INTENTION IN VIETNAMESE LANGUAGE. lii APPENDIX 12: GROUP DISCUSSION OUTLINE IN VIETNAMESE LANGUAGE. lv APPENDIX 13: QUESTIONNAIRE INTERVIEW IN VIETNAMESE LANGUAGE .lxiii iv LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF TABLES Table 3.1: The summary table of factors affecting the job-resignation intention.2: Definition of variables “working challenges”.3: Variable definition “Relationship among colleagues” .4: Variable definition “Binding to work” .5: Variable definition “Income” .6: Variable definition “Career development possibility” .7: Variable definition “Imbalance between work and life”.8: Variable definition “Stable job and treatment policies”.9: Variable definition “the attention and support from senior managers”.10: Variable definition “The attention and support from senior managers” .11: Expected to sign the relationship with the dependent variable.1: Description of statistical values of the samples .2: The results of scale reliability calculation.3: KMO and Bartlett's Test for the dependent variables.4 Total Variance Explained for the dependent variables.5: Component Matrixa for the dependent variables .6: Summarized regression model .8: Regression coefficients of the model.9: Resul to sign the relationship with the dependent variable .10: Testing of statistical hypothesis (β≠0).
57 v LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF FIGURES Figure 2.1: Maslow's Hierarchy of needs Pyramid.2: The research’s model on job-resignation intention of insurance agents .1: Adjusted research model. 51 vi LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CHAPTER 1: INTRODUCTION 1. Thesis statement Vietnamese people today are usually not used to buying insurance. The fastest and most effective marketing ways of Vietnam life insurance sector are direct marketing and oral marketing.
This means that the life insurance companies owning a large system will have advantages in approaching customers and broadening market. After more than 15 years of launching the life insurance market, the insurance sector went into the situation that hundreds thousand insurance agents who had been employed for less than 12 months stopped working. According to the statistic, up to about 80% of life insurance agents close business within 12 first month of starting. [15] The market of life insurance in Vietnam has so far always had demand of recruitment of new agents to develop the business and replace the former ones.
Currently, the recruitment of insurance agents becomes extremely difficult not for newly established companies in Vietnam but also for big brands like Prudential, AIA, Manulife, Dai-Ichi Life Vietnam, AEC Life and Bao Viet. According to the marking based on the agent duration (for 4 years) of the LIMRA research (under the International Research Organization LL Global), the degree of maintaining in Vietnam is under 10%, meaning that among 100 agents in 2005, less than 10 agents continues working for the next 4 years.[16] The reality also shows that many life insurance agents have worked for continuous 3 months or six months but they could not get any insurance contracts. This situation forced life insurance company to stop the agent contract and few agents opposed this decision because they no longer had interest in this job. These above facts have place many questions to the Author: 1 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com - Why for a highly potential life insurance market in Vietnam and for a job considered to bring a quite high income, the life circle of insurance agents is short as such? - What are the reasons for the job resignation of life insurance agents? What are the impacts of these reasons? What are common features among agents in this problem? - In Dong Nai, where the Author is living and working, how is the situation of agent’s resignation? - How to limit the job resignation intention of life agents? From the above problems, the Author decided to choose the thesis “ Factors affecting job-resignation intention of life insurance agents in Dong Nai” for the research.
Research objective The research has been done with two main objectives: Firstly, determining and analyzing the factors affecting job-resignation intention of life insurance agents in Dong Nai. Secondly, giving out some recommendations for insurance company to minimize the resignation decisions of life insurance agents. Object and scope of research - Research objects are factors affecting the job-resignation intention of life insurance agents. - Research scope is restricted to the insurance agents in Dong Nai province - Time of research is from early 2012 to the end of the second quarter 2012.
2 LUAN VAN CHAT LUONG download : add luanvanchat@agmail. Significance of Study So far, there is no deep and thorough researches on job-resignation intention of life insurance agents, so the Author hope that the thesis will give some significances. - The thesis will contribute to explaining the job-resignation of insurance agents in Dong Nai over this time, it also explain the phenomena of “too short experience time” of about 80% of the newly recruited agents. - Therefore, the thesis contributes to finding solutions for minimizing the job resignation of agents, then contributing to supporting to insurance enterprise to expand the market, business areas, customers in a stable way through developing and maintaining the effective performance of agents.
- The thesis is also the useful reference for insurance business enterprises, researchers wishing to learn about the insurance sector, agent development as well as study on behavior science in general. Research framework Based on the researched problem, objectives and research questions, the structure of the thesis “Factors affecting job-resignation intention of life insurance agents in Dong Nai” will be divided into 5 chapters as followed: Chapter 1: Introduction Chapter 2: Literature review Chapter 3: Methodology Chapter 4: Data analysis and Interpretation Chapter 5: Conclusions and Recommendation 3 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CHAPTER 2: LITERATURE REVIEW 2. General view on life insurance and insurance agents 2. Definition of life insurance The life insurance group AIG ( U.S) defines that “ Insurance is a mechanism, according to this mechanism, one person, one enterprise or one organization transfer risk to an insurance company which will indemnify the insured for the loss of coverage premiums and losses were divided among all the insured” According to the insurance business law of Vietnam (issued on 09th December 2000) “ insurance business is the operation of an insurer for profit, under which the insurer accepts the risk of the insured on the basis of the insurance premium payment to the insurer so that the insurer can pay to the beneficiaries or make compensation to the insured when the insured event occurs.” Also according to the insurance business approved by the Vietnam National Assembly and valid from 01th July 2001 “ Life insurance is a kind of insurance profession for the cases of insured’s living or death” According to the amendment and supplemetation of some articles in the insurance business law no.
24/2000/QH10, life insurance includes whole life insurance; term life insurance; endownment; recurring insurance; investment-linked insurance; pension insurance. So, life insurance can be understood on two views, technique and law. In respect to technique, life insurance is insurance with commitments in which the commitment implementation depends on the human life-span. There are two main commitments in life insurance including premium payment commitment of the insured and the indemification payment or periodic allowance payment of the insurer.
4 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com In respect to the legality, life insurance includes insurance contracts signed between insurers and the insured, under which, for receiving premium from the insured, the insurers commit to pay to one or more beneficiaries the certain amount or periodic allowance in case the insured live for a certain time or die before the specified time in the contract. Insurance agents The insurance law no. 24/2000/QH10 9/12/2000 has defined the insurance agent is an individual or an organization who is authorized to perform as an insurance agent based on the agent contract according to regulations of this Law and of related laws. Insurance agent operation is the introduction, selling of insurance.
He will arrange the connection between the insurance contracts and other tasks to ensure the implementation of the insurance contracts according to the authorization of insurance companies. The article no.86 of the insurance business law regulates that individuals who are Vietnamese citizens living permanently in Vietnam from the age of 18 with sufficient competence and civil behaviors, holding the working license granted by the insurance companies or the Vietnam Insurance Association are allowed to perform as an insurance agent.