UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ NGUYEN THI HONG HUONG TURNOVER RATE AND PROMOTION FAVORITISM FROM SALES MANAGER AT AVERY DENNISON RBIS VIETNAM MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City – Year 2017 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ NGUYEN THI HONG HUONG TURNOVER RATE AND PROMOTION FAVORITISM FROM SALES MANAGER AT AVERY DENNISON RBIS VIETNAM MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: NGUYEN PHONG NGUYEN Ho Chi Minh City – Year 2017 EXECUTIVE SUMMARY The sales industry usually faces a huge challenge for businesses to retain staff. Developing new staff into high performers costs time, effort and money, but companies will take advantage of the positive impact later on the business. Therefore, they know how the important of retaining these key employees. A high staff turnover and low retention within a sales department is acknowledged to be harmful and potentially damaging to the businesses revenue because of the cost of recruiting replacements, training and the time spent to train new employees.
It has been found that constant recruitment is not only linked to the reduction of sales performance but also has a bad impact on existing staff members’ morale. The main purpose of this thesis is to explore the causes of high turnover rate of over-achieved sales employees at Avery Dennison RBIS Vietnam. Method of analysis is combined between validated data and theory-informed which collected through in-depth interview and company survey to explore the causes of problem. The finding of the study revealed that promotion favoritism from sales manager is the key reason why over-achieved sales employees decided to leave the company.
The findings also proposed some solutions to retain high performance sales employees. The solutions focus on two main causes of promotion favoritism from sales manager, which are Unweight and unclear on employees assessment form and personal favoritism from sales manager. This research also proposed three suitable solutions: - Build the performance appraisal and promotion process - Make a communication a priority - Improve personal favoritism from sales manager. Total cost to implement above solutions is approximately 150mil VND while benefit from the solutions is 809.
The cost saving is 659. Because the time is limited and the ideas of interviewees may not represent all sales people, therefore, the research still exist some limitations. However, the research provides validated data in combination with theory to propose solutions for Avery Dennison RBIS Vietnam to retain its high performers. ACKNOWLEDGEMENTS I wish to express my appreciation to Professor Nguyen Phong Nguyen for his time and valuable guidance.
I would never have been able to finish my thesis without help from Professor Nguyen. I am grateful for what I learned from all professors and lecturers for their exciting and valuable lectures as well as precious answers to our questions. I would like to acknowledge and thank Mrs. Dao and all sales staffs of Avery Dennison RBIS Vietnam who contributed towards the successful completion of this research.
I would also like to extend my appreciation to most important of my life: my father, my big family, my little family and close friends for their unconditional support to bring this thesis to completion. Lastly, I would like to dedicate my thesis to the memory of my mother who could not see my thesis to its conclusion. My memories of her inspired me to keep moving forward. TABLE OF CONTENT Executive Summary Acknowledgements LIST OF FIGURES LIST OF TABLE Chapter I: Background.
Avery Dennison RBIS Vietnam Co. Avery Dennison RBIS Vietnam structure………………………………. Background of the symptom ………. Initial cause effect map…………………………………………………………….
Updated cause effect map…………………………………………………………………. Work-life imbalance…………………………………………………………………. Unequal workload allocation……………………………………………………………19 Define the central problem…………………………………………………………….………20 Initial cause effect map……………………………………………………………….28 Updated cause effect map…………………………………………………….29 Chapter II: Problems Justification ………………………………………. Justify problem in term of existence ……………………………………….
Justify problem in term of importance ……………………. The impact of sales force turnover on Avery Dennison RBIS Vietnam…………………. The impact of sales force turnover on HR effectiveness……………………………. The impact of sales force turnover on employee performance…………………………39 IV.
The impact of sales force turnover on working attitude of remaining staff…………….42 Chapter III: Causes validation and solutions………………………………………………. List of causes………………………………………………………………………………. Unweight and unclear indicators on staff assessment form……………………………….