ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH --------------------- PHẠM THANH NAM A RESEARCH OF FACTORS AFFECTING EMPLOYEE RETENTION IN TOPICA EDTECH GROUP NGHIÊN CỨU CÁC YẾU TỐ ẢNH HƯỞNG ĐẾN VIỆC GIỮ CHÂN NHÂN VIÊN TẠI TỔ HỢP CÔNG NGHỆ GIÁO DỤC TOPICA LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2020 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH --------------------- PHẠM THANH NAM A RESEARCH OF FACTORS AFFECTING EMPLOYEE RETENTION IN TOPICA EDTECH GROUP NGHIÊN CỨU CÁC YẾU TỐ ẢNH HƯỞNG ĐẾN VIỆC GIỮ CHÂN NHÂN VIÊN TẠI TỔ HỢP CÔNG NGHỆ GIÁO DỤC TOPICA 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.TRẦN KIM HÀO HÀ NỘI - 2020 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.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 Management, and the laws for above-mentioned declaration. i LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ACKNOWLEDGEMENT During my MBA course, I have gained various knowledge, skill and insights of management.
This course significantly grows up my capacity of administration and management and support me manage my company effectively. 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 thank all the professors of MBA program, especially Dr. Tran Kim Hao – my supervisor. Then I would like to thank deeply to class assistant team of HCC center, respondents who allowed me to gather enough data for this research.
Finally, I would like to express my thanks to my family, my colleges and 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. ii LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ABBREVIATION EFA Exploratory Factor Analysis iii LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF FIGURES Figure 1.1: HRM Practices and Employee Retention in Thailand research model .2: Determinants of academic staff retention in Public universities in Kenya research model .3: Research conceptual model of Employee retention .1: TOPICA organizational chart .2: TOPICA Growth and Funding History .3: TOPICA global competitor .3: Working seniority analysis.4: Employee referral intention .5: Model after calibrating retention. 41 iv LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF TABLES Table 3.1: Table of summary in TOPICA product position in ASEAN.2: Table of the payment raising rate in TOPICA .1: Table of Cronbach analysis result of the research .2: Table of reliable variables after running Cronbach analysis. Table of KMO and Bartlett's Test result.
Total Variance Explained test result. Table of rotated Component Matrixa test result .6: Summary table of observed variables that are reliable after running exploratory factor analysis .7: Table of Descriptive statistic of grouped factor after running EFA .8: Table of correlation test result .9: Model Summaryb test result .10: ANOVAa test result .11: Coefficientsa test result .12: Levene Statistic of gender group test result .13: T-test of gender group test result .14: Levene Statistic of age group test result .15: Levene Statistic of working seniority group test result .16: ANOVA Statistic of working seniority group test result. 70 v LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com TABLE OF CONTENT INTRODUCTION. Aim of research.
LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENT. The importance of employee retention. Factors affect employee retention. Compensation and benefits.
Reward and recognization. Training and development. Theoretical framework and hypothesis development. Review relevant theoretical framework.
Research theoretical framework. 16 CHAPTER II: RESEARCH METHODOLOGY. Sampling method and size. 24 vi LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CHAPTER III: THE CURRENT SITUATION OF CUSTOMER RETENTION IN TOPICA EDTECH GROUP.
The current turnover rate situation in Vietnam. Current situation of TOPICA Edtech Group. TOPICA Growth and Funding History. TOPICA competitor overview.
TOPICA efforts to raise the employee retention. Compensation, Reward & Recognization. 33 CHAPTER IV: RESEARCH RESULTS. General working information of employee.
Employee retention questionnaire analysis. RESEARCH DISCUSSION AND RECOMMENDATION. 45 CONCLUSION, LIMITATION AND IMPLICATION. Option of answers.
Explanation rate of the research model. 62 vii LUAN VAN CHAT LUONG download : add luanvanchat@agmail. Research rationale Turnover is a relevant topic for organizations all over the world. According to Khatri, Budhwar, and Chong (2010), most organizations in Asian countries such as Malaysia, Singapore, Hong Kong, Taiwan and South Korea have been facing the same turnover problems as Western countries.
In Vietnam, there are several academical research about the topic of employee retention of a specific enterprise but no research has been done in a larger scale such as an industry despite the problems of the high turnover rate have been faced by most of the organizations and enterprises, especially small and medium enterprises. According to Jones et al (2016), although the laws on minimum wages and social security, as well as commissions, incentives and bonuses, most Vietnamese companies have a high staff turnover rate.8% of young local Vietnamese staff reported wanting to quit their jobs after “Tet”. This issue can cause serious problems to Vietnam companies, especially in Vietnam‟s growing software industry, where hiring new staff mid-project can add months to the completion date. The Talentnet and Mercer Total Remuneration Survey Report 2016 showed that “the average voluntary staff turnover rate of local companies was higher than multinational companies (17.
Sales manager, senior sales executive and marketing manager continue to be in the top list of hot jobs to recruit. The most difficult positions to retain are senior sales executive, sales manager and marketing manager.” There has not been any official internal research about the turn-over rate situation in TOPICA throughout these year but several unofficial statistics worth mentioning here are the overall drop-out rate is around 40% and specialist and part-time employee are 2 major groups that are recorded the most number of turnover staffs. Several reasons for the serious turnover percentage are because those employees are not suitable for the working culture and do not reach the required working performance for the company. The manager and senior executive level have been seen a lower turnover rate and the predicted main reason is to run their own business or startup.
Thus, it can be maintained that understanding employees‟ retention of the high- skilled workforce is crucial for an organization‟s viability to reduce employee turnover rate. For this reason, the author selected the topic: “A research of factors affecting employee retention in Topica Edtech Group” to fulfilment the master thesis. 1 LUAN VAN CHAT LUONG download : add luanvanchat@agmail. Literature review Employee retention is one of the main challenge encountered by any industry.
In today‟s growing competitive global economy, retaining intellectual assets is one of major concern encountered by most of the industries. However, it still remains one of the understudied issues by the Human Resource and large organizations. Employee retention is the most overlooked aspect of the organizations which are growth-oriented. Firstly, McKeown (2002) outlined his opinion about employee retention, which focuses primarily on retaining people who are the best performers and not those with a lower performance.
McKeown said that there was no precise definition of employee retention because people‟s perception of retention varies. But McKeown (2002, p2) found that some managers explained employee retention as “reducing the employee turnover rate to an acceptable level whilst others think retention is about compensation and benefits, moreover, some think of it as a component of culture, that is, how people are treated within the organization.” Browell (2003, p5) stated that the definition of employee retention is “Keeping those members of staff that one wants to keep and not losing them from the organization for whatever reason, especially to the competitors.” Browell also further explained that the key employees who hold positions are critical for the success of the organization. According to a survey across the United States which involved around 1000 organizations, over 89% of those organizations declared that employee retention had become a strategic business issue. Fifteen elements were found in corporate retention programmes, as follows: Innovative compensation and benefits packages Effective rewards and recognition Performance management, aligning employee goals with business goals Strategies for increasing employee satisfaction Measures of employee satisfaction Career planning Work-life strategy Building new-hire commitment Competency-based strategies Employee needs Mentoring programs 2 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Defining role of the corporate culture Use of coaching for career development An employee strategy to support growth and loyalty Merger and acquisition retention strategy According to Kavitha et al.
(2011) research, they found that the retention of employee has become one of the most controversial issues for human resource professionals facing in recent times. The increasingly leaving problem of workforces creates a weak loyalty index in the establishment. Kavitha et al. also discussed that “Employee retention is the conscious and deliberate effort to retain quality individuals on the company payroll.” In other words, a successful organization seeking to decrease the drain of company profits, are better to reduce the turnover rate of the employee.
Furthermore, Ratna and Chawla (2012) stated that retention plays a more important role than recruitment, although hiring knowledgeable people is necessary for any employer. By researching employee retention, organization also recognize the appropriate methods to encourage people to stay in the organization as long as possible. Ratna and Chawla summarized that “The process of employee retention will benefit an organization as the cost employee turnover adds hundreds of thousands of money to a company‟s expense.” It means that if a company has a higher rate of employee retention, it will inspire potential staffs to apply to the company. Retaining the high-performance employees is crucial for the economic development of the industry in general and of an organization in particular by spending more time in creating and less time training them (Vasquez, 2014).
By contrast, according to Whitcomb (2012), attracting, engaging and retaining the staffs generates high quality results for the industry which leads to high level of customer satisfaction. It is also stated that well-trained and well-engaged staffs have a substantial influence on the employee retention rate. Aim of research The principal objective of this research is to analyze the factors affecting employee retention in Topica Edtech Group. The researcher will examine what the employees feel about their work and what factors mainly influence them to stay in the organization.
This research also figures out what factors make staffs feel unsatisfied to improve. 3 LUAN VAN CHAT LUONG download : add luanvanchat@agmail. Research objects This research will focus on the workforce in Topica Edtech Group who have worked until August of 2019 5. Research scope - Scope of contents: Employee retention and factors affect it - Scope of space: TOPICA Headquarter in Hanoi - Scope of time: The research questionnaire was surveyed in August of 2019.