ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH --------------------- PHẠM THUÝ HỒNG THE FACTORS AFFECTING TALENT’S LOYALTY IN SALES DEPARTMENT OF COMPANIES IN VIET NAM CÁC NHÂN TỐ ẢNH HƯỞNG ĐẾN LÒNG TRUNG THÀNH CỦA NHÂN TÀI TRONG BỘ PHẬN BÁN HÀNG CỦA CÁC CÔNG TY TẠI VIỆT NAM. LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2020 TIEU LUAN MOI download : skknchat@gmail.com ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH --------------------- PHẠM THUÝ HỒNG THE FACTORS AFFECTING TALENT’S LOYALTY IN SALES DEPARTMENT OF COMPANIES IN VIET NAM CÁC NHÂN TỐ ẢNH HƯỞNG ĐẾN LÒNG TRUNG THÀNH CỦA NHÂN TÀI TRONG BỘ PHẬN BÁN HÀNG CỦA CÁC CÔNG TY TẠI VIỆT NAM. Chuyên ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: TS. PHẠM ANH TUẤN HÀ NỘI - 2020 TIEU LUAN MOI download : skknchat@gmail.com DECLARATION The author confirms that the research outcome in the thesis is the result of author’s independent work during study and research period and it is not yet published in other’s research and article.
The other’s research result and documentation (extraction, table, figure, formula, and other document) used in the thesis are cited properly and the permission (if required) is given. The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business, and the laws for above-mentioned declaration. Hanoi, 31st of August, 2019 Pham Thuy Hong i TIEU LUAN MOI download : skknchat@gmail.com ACKNOWLEDGEMENT I have gained huge knowledge, skill and insights from my MBA course. The course raises my capacity of administration and management up to the next level.
The study "The factors affecting talent’s loyalty in Sales Department of companies in Viet Nam" is chosen to conduct for my graduation thesis based on my experience in the industry as well as precious knowledge an I gained from MBA program at HSB after valuable months studying here. I declare that this is a true copy of my thesis. The content of this thesis has been approved by the committee of Vietnam National University, Hanoi – Hanoi School of Business and Management (HSB). This thesis has not been submitted for a higher degree to any other University or Institution.
In order to finish this project successfully, I have received many helps, supports and guidance from many people who I would like to thank sincerely. First of all, I would like to express my deep gratitude for Dr. Pham Hung Hiep and his research coach centre for all profression assistance during data analysis process. I also would like to thank all the professors of MBA program, especially – my supervisors, Dr.
Pham Anh Tuan. Then I would like to thank deeply to my friends, my partners, respondents and interviewees who allowed me to gather enough data for this research. Finally, I would like to express my thanks to my husband, my family, my fellow friends who always stand by me during the past two years and encourages me to keep moving from the beginning of my study. Hanoi, 31st of August 2019 Pham Thuy Hong ii TIEU LUAN MOI download : skknchat@gmail.com TABLE OF CONTENTS DECLARATION .v LIST OF TABLES.
vi LIST OF FIGURES. THEORETICAL BACKGROUND OF TALENT’S LOYALTY AND FACTORS AFFECTING TALENT’S LOYALTY. Concept of Talent. Factors affecting talent’s loyalty.
Research model and Hypothesis. Data collection method. Designing Scale and Questionnaire. Data Collection Process.
Data Analysis Procedure.28 iii TIEU LUAN MOI download : skknchat@gmail. Data Preparation and descriptive statistics. Measurement Model Evaluation. Composite factors calculation and validity tests.
Analysis of Hypothesis conceptual talent’s loyalty model. DISCUSSIONS AND RECOMMENDATIONS .52 CONCLUSIONS AND LIMITATIONS .57 APPENDIX iv TIEU LUAN MOI download : skknchat@gmail.com ABBREVIATION HRM Human Resource Management HR Human Resource TR Talent Retention SMEs Small and Medium Enterprises TL Talent’s Loyalty TE Talent Empowerment TT Talent Training TW Teamwork AS Appraisal System JB Job Satisfaction CFA Confirmatory Factor Analysis SEM Structural equation modeling v TIEU LUAN MOI download : skknchat@gmail.com LIST OF TABLES Table 2.1: Hypothesis for model .2: Detail and Source of Questionnaire .2: Demographic and Basic Information of Respondents .3: Descriptive Analyses for Measurement Items .4: Variables in the CFA Model .5: Results of factor loading .6: Factor loading for Confirmatory Factor Analysis .7: Confirmatory factor analysis for convergent and discriminant validity .8: Results of multiple fit indices .9: Variables in the SEM Model .10: Results of Structural Equation Model .11: The summary of Hypotheses Testing .49 vi TIEU LUAN MOI download : skknchat@gmail.com LIST OF FIGURES Figure 1: Global average turnover: overall vs. Jun et al.1 : The research process and research methodology. Talent’s Loyalty conceptual framework model .1: Gender distribution among 325 respondents .2: Age distribution among 325 respondents .3: Marital Status among 325 respondents.4: Marital Status among 325 respondents.5: Highest level of education among 325 respondents .6: Marital Status among 325 respondents.7: Working Experience among 325 respondents .8: Type of company among 325 respondents .9: Model of Structural Equation Model Result .48 vii TIEU LUAN MOI download : skknchat@gmail.
Rationale ”Having the most talented people in each of our businesses is the most important thing. If we don’t, we lose. Employers today face a more fluid labor market than in the recent past. In 2014 Global Workforce Study, a survey of over 32,000 employees worldwide, employers didn’t receive high marks from employees on their ability to get and keep talent.
―Fewer than half of respondents report that their company does a good job when it comes to attracting and retaining the right workers. Only 46% say their organization hires highly qualified employees, while 42% say their employer does a good job of retaining talented employees‖ Losing talent is a serious problem that many enterprises are facing. When employees leave, it costs the organization time and money. The total costs associated with turnover can range from 90% to 200% of annual salary (Cascio, 2006; Mitchell, Holtom, & Lee, 2001).
For example, it costs the company $102,000 for a journeyman machinist, $133,000 for an HR manager at an automotive manufacturer, and $150,000 for an accounting professional. That is the basic cost of losing talent! Beside the obvious direct costs associated with turnover, such as accrued paid time off and staffing costs associated with hiring a replacement, there are a several of other direct and indirect costs associated with turnover which identifies two primary types of costs associated with voluntary turnover: separation costs and replacement costs. PriceWaterhouse Coopers (2006) estimates that turnover-related costs represent more than 12% of pre-tax income for the average company, and 1 TIEU LUAN MOI download : skknchat@gmail.com nearly 40% for companies at the 75th percentile for turnover rate. If a business loses talent, it will suffer the loss of skills, experience and ―corporate memory‖.
The extensive extent and nature of these losses is a critical management issue, leading to an effect on productivity, cost-effectiveness, and product and quality of service. For talent, high level of turnover can pessimistically influence employment relationships, spirit and safety in workplace (Muchinsky & Morrow, 1980). According to Global Workforce Study, employers are finding it difficult to get and keep key talents, including top performers and high-potential employees. Nearly two in three respondents of the survey are experiencing problems attracting top performers (65%) and high-potential employees (64%), an increase from two years ago.
Additionally, more than half report difficulty retaining high-potential employees (56%) and top performers (54%). For all the reasons below, building talent’s loyalty is very important and necessary. Spherion report 2017 shows that globally 78% of HR leaders are more concerned about the talent shortage today than they were a year ago. And in Vietnam, losing talent even becomes a hot topic to discuss recently because of the fact that 53% SMEs own no or irrelevant talent strategies (Talent net, 2017) In 2019, a survey was released with the participation of 650 CEOs and human resources personnel from leading enterprises in Vietnam.
Accordingly, it is not until employees quit that a company considers it a ―Loss.‖ The Vietnam Best Places to Work Survey emphasized that ―Talent Loss‖ has continuously occurred even before they join an organization. The Talent Loss trend is still seen after they have become a member of the company, at an alarming rate of 51 per cent of the workforce at a company. This trend once again confirms the importance of building a sustainable employer brand from inside out to minimize Talent Loss both before and after they join a company’s workforce. Thus, it can be maintained that understanding about talent’s loyalty is crucial for an organization’s viability to reduce talent lost rate.
There are many researches 2 TIEU LUAN MOI download : skknchat@gmail.com about talent management and about employee’s loyalty also. But until now, there is no specific research about talent’s loyalty, especially in Vietnam. For this reason, the author selected the topic: “The factors affecting talent’s loyalty in Sales Department of companies in Viet Nam” to fulfillment the master thesis. The author decided to choose Sales Department of companies to research because Sales department plays an important and essential role in creating profit for enterprises.
It also has the largest number of employees among all the departments in companies. Sales roles have traditionally experienced higher levels of turnover relative to the overall population of employees. Below, the chart illustrates overall employee turnover vs. overall sales force turnover across multiple quarters, as reported in our Radford Workforce Trends Reports.
Overall turnover rates in US for sales employees are higher than the overall population, tracking at 14-16% vs. Figure 1: Global average turnover: overall vs. sales population With research content as above, the author poses research questions for her topic as follows: 3 TIEU LUAN MOI download : skknchat@gmail.com - What does ―talent‖ mean? - What is the role of talent in a company? - What are the factors influencing talent’s loyalty? - What is the current status of talent’s loyalty in Sales Department of companies in Viet Nam? - What are the suitable solutions to improve talent’s loyalty in Sales Department of companies in Viet Nam? 2. Literature review Research on the world Talent’s loyalty is not a new topic but all past studies often focus on its other sides, which are known as ―turnover‖ or ―talent retention‖.
Several researches on talent retention have focused on understanding the diverse reasons why workers make decisions to quit institutions, as well as the processes by which employees decide. Thanks to the understanding of reasons why people quit, institutions can also achieve a better idea of why workers remain and can learn the way to affect these decisions (Mobley ,W. Mitchell, Holton and Lee (Nov, 2001) pointed out that people voluntarily quit their institutions in various reasons. Some of those reasons are personal, for example, alteration in family circumstance, a desire to acquire a new skill or trade, or a spontaneous job offer.
Others are affected by the employing institution: spotting a colleague’s unjust treatment, being passed over for promotion. Job dissatisfaction, which was piled up, was one reason leads to people’s decision to leave. On account of imposing extensive costs on individuals as well as institutions, turnover is a matter. As indicated by Herman in 2005, of the five reasons why workers quit, compensation reached the lowest level.
According to Hertzberg theory, the most important factors, which could fulfill employee’s satisfaction physiologically, are salary and the compensation scheme, especially that physiological needs are based on food, drink and avoidance of pain, etc. In order to have enough food, drink and suitable medical care, workers are in need of having a fair salary and compensation scheme. In the same time, an 4 TIEU LUAN MOI download : skknchat@gmail.com individual’s evaluation of a job opportunity is based on more than job current pay.