0VIETNAM NATIONAL UNIVERSITY, HANOI SCHOOL OF BUSINESS PHAM THU HA RETAINING SKILLED EMPLOYEE, CASE STUDY IN MAI DIEM TEXTILE & GARMENT LIMITED COMPANY Major: Business Administration Code: 603405 MASTER OF BUSINESS ADMINISTRATION THESIS Supervisors: Dr. Nguyen Danh Nguyen Hanoi – 2012 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ACKNOWLEDGEMENTS I would like to express my sincere gratitude to my research advisor, Dr Nguyen Danh Nguyen for his invaluable guidance, constructive suggestions and continuous encouragement throughout the research process. I would like to take this opportunity to express my special thanks to all faculty members and staff at Ha Noi School of Business for their highly qualified courses and their support, which provided me invaluable knowledge and assistance for my research. Gratitude is also due to my colleges and friends for their information, encouragement, valuable ideas and kindly support for my research study.
Finally, all my faithful thanks and love to my parents, my younger sister, my husband and my son for their countless love, enduring support and continuous encouragement wherever I was. And I would like to dedicate this work to them. 01/07/2012 Pham Thu Ha i LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ABSTRACT RETAINING SKILLED EMPLOYEE, CASE STUDY IN MAI DIEM TEXTILE AND GARMENT LIMITED COMPANY Pham Thu Ha MBA candidates, 2007 - 2009 School of Business Vietnam National University, Hanoi Supervisor: Dr. Nguyen Danh Nguyen July 2012, 84 pages In Vietnam, together with the international integration there appear a number of foreign groups and companies, which make labor market more and more competitive.
The few good human resources leads to the short supply compared to the demand; and the increasing of labor cost while the risk that good human resources quit remain high as there are too many opportunities for them especially in garment field. Leaders of many organizations always concern how to recruit good human resource. In fact, it is difficult to recruit good employees; it is more difficult to retain them working for long time. It is their leaving after being trained or their experience that make managers face difficulties.
Therefore, retaining skilled employee is regarded as one of necessary skills of managers; it is also one criterion to evaluate excellent enterprises. The retention of human resources has been shown to be momentous to the development and the accomplishment of the organization‘s goals and objectives. Therefore, the question of ―how to retain skilled employee‖ is commonly raised among garment companies. ii LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Mai Diem garment and textile limited company, a small-scale company in Nam Dinh province, is facing with many difficulties from lack of skilled labor force like other companies in garment industry.
This study is an attempt to examine the main factors that affect workforce retention in Mai Diem Company, from that to realize the roots of prevailing problems and propose some recommendations for attracting and retaining skilled employees in Mai Diem Company. iii LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com TÓM TẮT GIỮ CHÂN NGƯỜI LAO ĐỘNG CÓ NĂNG LỰC TẠI CÔNG TY TNHH DỆT MAY MAI ĐIỂM Phạm Thu Hà Khoa Quản trị Kinh doanh - Đại học Quốc gia Hà Nội Hướng dẫn: TS Nguyễn Danh Nguyên Tháng 07 năm 2012, 84 trang Ở Việt Nam cùng với quá trình hội nhập quốc tế đã xuất hiện nhiều công ty và tập đoàn nước ngoài, điều này dẫn đến thị trường lao động ngày càng cạnh tranh hơn. Sự thiếu hụt nguồn nhân lực chất lượng cao dẫn đến sự mất cân bằng trong cung cầu đồng thời làm tăng chi phí nhân công và nguy cơ nguồn nhân lực có trình độ dời bỏ vị trí hiện tại khi mà thị trường có quá nhiều cơ hội để họ lựa chọn đặc biệt trong lĩnh vực dệt may. Các nhà lãnh đạo của các công ty này luôn lo lắng làm thế nào để tuyển dụng được lực lượng lao động chất lượng tốt.
Trong thực tế việc tuyển mộ người lao động có năng lực đã không phải là một vấn đề đơn giản nhưng việc giữ họ ở lại làm việc lâu dài với công ty lại khó khăn hơn nhiều. Việc người lao động dời bỏ công ty sau khi đã được đào tạo hoặc khi họ đã có kinh nghiệm làm cho các nhà quản lý phải đối mặt với nhiều khó khăn. Bời vậy, giữ chân người lao động có năng lực được coi là một trong những kỹ năng cần thiết của người quản lý và là một trong những tiêu chuẩn để xếp loại doanh nghiệp hiệu quả. Duy trì nguồn nhân lực ổn định được chứng tỏ là một yếu tố rất quan trọng đối với sự phát triển và hoàn thành kế hoạch của doanh nghiệp.
Chính vì vậy, một câu hỏi lớn được đặt ra hiện iv LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com nay ―Làm thế nào để giữ chân người lao động có năng lực‖ đang là nỗi băn khoăn nhức nhối của hầu hết các doanh nghiệp dệt may hiện nay. Công ty TNHH Dệt may Mai Điểm là một công ty có quy mô nhỏ tại Nam Định cũng đang phải đối mặt với nhiều khó khăn trong việc thiếu hụt nguồn lao động có tay nghề giống như các doanh nghiệp dệt may khác. Trong luận văn thạc sỹ này, tác giả muốn nghiên cứu về thực trạng giữ người lao động tại công ty Dệt may Mai Điểm để từ đó tìm ra gốc rễ của các vấn đề liên quan đến việc giữ người lao động nhằm đưa ra những biện pháp và kiến nghị hợp lý giúp Mai Điểm thu hút và giữ chân người lao động có tay nghề gắn bó lâu dài với công ty. v LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com TABLE OF CONTENT ACKNOWLEDGEMENTS.
iv TABLE OF CONTENT. vi LIST OF FIGURE. The necessity of the thesis. Objectives of the research.
Hypothesis of the research (Research questions). 5 CHAPTER 1: LITERATURE REVIEW.1 Definition of employee retention .2 Reasons of employee retention .3 Factors make employees leave Company .2 Employee retention components. 9 vi LUAN VAN CHAT LUONG download : add luanvanchat@agmail.1 Work environment and Job Design.3 Employee Recognition, Rewards and Compensation.3 Employee retention tactics.3 Employee Recognition and Reward Program.5 Creating a comfortable work environment.4 Employee retention in Garment and textile industry .1 Overview on Vietnam‘s garment and textile industry.2 Human resource management and development solution. 26 CHAPTER 2: ANALYSIS OF MAI DIEM’S EMPLOYEE RETENTION .1 Overview of Mai Diem Garment and Textile Company .2 The Research methodology .3 Findings and analysis.
33 vii LUAN VAN CHAT LUONG download : add luanvanchat@agmail. 57 CHAPTER 3: RECOMMENDATION AND CONCLUSION .1 Overview of the current human resource system at Mai Diem .2 Recommendation for Mai Diem Garment and Textile Company .1 Clear Objectives about work climate .2Training and Motivation .3 Benefits and Compensation.4 Communication and Assistance .5 Create belief for the employees in the future development of Mai Diem .1 The action plan in long term .2 The proposed action plan in short term to attract newcomers and sustain current employees from the researcher:. 84 viii LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF FIGURE Figure 2. 1 Steps of the research.
2: The perception of Mai Diem participants about the salary and compensation. 3: The perception of Mai Diem participants about the Leave Benefits. 4: The perception of Mai Diem participants about the Retirement Plan. 5: The perception of Mai Diem participants about the health-related benefits.
6 : The perception of Mai Diem participants about the Long-term Care. 7: The perception of Mai Diem participants about the Tuition Reimbursement. 8: the perception of the participants about the Employee Assistance Program. 9: The perception of Mai Diem participants about the Work-life Balance.
10: Perception of Mai Diem Participants about the Alternative Work Schedule. 11: The perception of Mai Diem participants about the wellness program. 12: The perception of Mai Diem participants about the Mentoring and Coaching. 44 ix LUAN VAN CHAT LUONG download : add luanvanchat@agmail.
13: The perception of Mai Diem participants about the Job rotation and new Assignment. 14: The perception of Mai Diem participants about the Rewards and Recognition. 15: The perception of Mai Diem participants about the Education Opportunities. 16: The perception of Mai Diem participants about the Job-related Training Opportunities.
17: The perception of Mai Diem participants about the annual performance appraisal. 18: The perception of Mai Diem participants about the Development plan. 19: The perception of Mai Diem participants about Task group assignment. 20: The perception of Mai Diem participants about Career development program.
21: The perception of Mai Diem participants about New assignment52 Figure 2. 22: The perception of Mai Diem participants about Supervisor communicate. 23: The perception of Mai Diem participants about Value of diversity. 24: The perception of Mai Diem participants about Openess and trust.
25: The perception of Mai Diem participants about Fairness and Respect. 55 x LUAN VAN CHAT LUONG download : add luanvanchat@agmail. 26: The perception of Mai Diem participants about Supervisor listening. 27: The perception of Mai Diem participants about Supervisor empower.
28: The perception of Mai Diem participants about Opportunities for personal growth and development. 29: The perception of Mai Diem participants about the feeling of worthwhile accomplishment from the job. 30: The perception of Mai Diem participants about The amount of independent thought and action exercised from the job. 31: The perception of Mai Diem participants about The amount of challenge in the job.
32: The perception of Mai Diem participants about the amount of job security. 33: The perception of Mai Diem participants about the amount of pay and fringe benefits. 34: The perception of Mai Diem participants about the degree to which I am fairly paid for what I contribute to my organization. 35: The perception of Mai Diem participants about the people I talk to and work with in my job.
36: The perception of Mai Diem participants about the amount of support and guidance received from the superiors. 37: The perception of Mai Diem participants about the overall quality of supervision received in the job. 38: The perception of Mai Diem participants about opportunities to learn new knowledge. 66 xi LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF TABLE Table 2.
1: Mai Diem employee‘s response rate. 33 xii LUAN VAN CHAT LUONG download : add luanvanchat@agmail. The necessity of the thesis. In today‘s economy, the bottom line in business is profits.
Where do the profits come from? From sales of services and/or products. We have developed the following acronym (ECP) that explains how companies will increase their profits. E— Employee retention and employee satisfaction. When you have satisfied employees (who are not caught up in the quagmire of bureaucracy and leave), they are more able to help the customer.
The more effective the customer services the greater the customer retention. The equation is simple from this point on. When we keep customers that are satisfied, and continue to add more, the corporation has increased the likelihood of increased profits. Employee Satisfaction + Customer Satisfaction = Increased Profits Employee is the most important asset of enterprises but many enterprises have failed to introduce reasonable solutions to retain qualified employees.
This reduces the main competitiveness of enterprises in the current period. Skilled employee is defined as a segment of the work force with a high skill level that creates significant economic value through the work performed (human capital). Skilled labor is generally characterized by high education or expertise levels and high wages.