UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ Nguyen Xuan Anh THE INCOMPETENCY OF NEW BROKERS AT ACB SECURITIES COMPANY MASTER OF BUSINESS Ho Chi Minh City – Year 2019 TIEU LUAN MOI download : skknchat@gmail.com UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ Nguyen Xuan Anh THE INCOMPETENCY OF NEW BROKERS AT ACB SECURITIES COMPANY MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: Dr. Tran Phuong Thao Ho Chi Minh City – Year 2019 TIEU LUAN MOI download : skknchat@gmail.com Executive summary Every company has their owned problem. Defining the existing problem that cause bad impact on business is not easy. ACBS is known as one of the top securities companies in Viet Nam.
Recent years, ACBS has faced some downtrend in market shares and shortage in human resources. The purpose of this study is to identify problem at ACB Securities Company (ACBS), what issues ACBS is facing affect its business performance. From using many techniques such as collecting data, in-depth interviews with related shareholders, conducting surveys, etc. this study discovers what happen at ACBS and give solutions to solve main problem.
This study attempts to answer the relationship between main problem and cause lead to the impact on business. By careful evaluate four possible problems include benefit, sales pressure, career development and incompetency of new employees, incompetency of new employees occurs as main problem contribute mainly to the failure in business performance. Recruitment process, incorporate between team members or inappropriate training program can cause to this problem. By conducting deep interview of stakeholders, the research define inappropriate training program as main cause.
ACBS did not consider the value of training and formal training activities did not invest much in business strategy After evaluating some possible solutions such as send current trainer to attend outside course in order to improve their teaching skill, create a new training department or outsource trainers from outside. Best solution will enhance the business performance with less change in company structure. In case of ACBS the combination of improve quality of current trainers by attend outside course and outsource professional for difficult training part is best fit to business strategy. TIEU LUAN MOI download : skknchat@gmail.com Table of contents Page Executive summary .iii CHAPTER 1: Company overview.
ACBS development history. Core activities in 2018. 3 CHAPTER 2: Problem identification. Fall to attract new employees as entry levels.
High turnover rate of new staffs. Problem analysis and problem mess. Incompetency of new brokers. Unclear career development.
Main problem: Incompetency of new brokers. Main problem definition. Justification the importance of main problem. Shortage of young human resources.
15 CHAPTER 3: Cause validation. Cause and effect tree. 18 TIEU LUAN MOI download : skknchat@gmail.com ➢ Inappropriate training program. 18 ➢ Ineffective recruitment process.
18 ➢ Incorporate between team members. Main cause: Inappropriate training program. Validate main cause. 25 CHAPTER 4: Solution design.
Solution 1: Improve the quality of trainees through oust side training teaching method courses. Solution 2: Establish a new training team/department by hiring new trainees who have experience in teaching .3 Solution 3: Outsource trainers. 38 TIEU LUAN MOI download : skknchat@gmail.com List of figures Figure 1: ACBS’s organizational structure. 2 Figure 2: Statistic of Trade Pro program in 2017 and 2018.
5 Figure 3: Number of interns and new employees from internship program from 2015- 2018. 6 Figure 4: Employee turnover rate from 2015 – 2016. 7 Figure 5: Employee population by age in 2017. 13 Figure 6: Employee population by age in 2018.
13 Figure 7: Age of employees at ACBS, SSI and VN Direct in 2017. 14 Figure 8: The gap between target and real number of brokers from 2016 – 2018. 15 Figure 9: ACBS market shares from 2015 – 2018. 16 Figure 10: The training evaluation at ACBS.
27 Figure 11: The application in job of employees after training. 27 TIEU LUAN MOI download : skknchat@gmail.com List of tables Table 1: Interview summary 1: recruitment process. 20 Table 2: Interview summary 2: corporate between team members. 21 Table 3: Number of training program in 2018.
23 Table 4: The comparison between three solutions. 34 Table 5: Action plan of selection solutions. 36 TIEU LUAN MOI download : skknchat@gmail.com APPENDIX APPENDIX 1: Research method summary. 41 APPENDIX 2: Interview transcript 1.
43 APPENDIX 3: Interview transcript 2. 47 APPENDIX 4: Interview transcript 3. 49 APPENDIX 5: Interview transcript 4. 50 APPENDIX 6: Interview transcript 5.
51 APPENDIX 7: Interview transcript 6. 52 APPENDIX 8: Interview transcript 7. 53 APPENDIX 9: Interview transcript 8. 54 TIEU LUAN MOI download : skknchat@gmail.com CHAPTER 1: Company overview 1.
ACBS development history: ACB Securities Company (ACBS) is a financial service company was established in 2000 as a 100% owned by ACB Commercial Bank under business license No.UBCK GPHDKD issued by State Securities Commission of Viet Nam. The initial investment was up to VND 43 billion. ACSB has increased its investment fifth times during 18 years operation: − In 2005 ACBS changed its total investment for the first time, increased to VND 100 billion − In 2006 ACBS the total investment increased for the second time to VND 250 billion. − In 2007 the total investment changed for the third time to VND 500 billion.
− In 2008, the total investment increased to VND 1,000 billion for the fourth time − In 2009, the total investment increased to VND 1,500 billion for the fifth time At the same year in 2009, ACBS announced its brand positioning with three core values: − Trustworthiness: being transparent and careful, always focusing on ensuring customer interests − Friendliness: being gentle and understanding, bringing satisfaction to customers − Flexibility: being flexible with customer needs, adaptive to market change, developing and applying new technology for the highest benefit of customers Since its establishment, ACBS has been authorized by the State Securities Commission of Viet Nam and has 6 mains securities service products in accordance with the prevailing laws: − Securities brokerage − Securities dealing − Securities trading − Securities underwriting − Securities investment advisory 1 TIEU LUAN MOI download : skknchat@gmail.com − Securities investment portfolio management ACBS vision and mission is bringing the best service with modern model of investment bank to customers. ACBS take pride in contributing to development of transparent and professional standards for securities industry, as well as the overall financial market (1). Organizational structure: During its development, ACBS has increased its branches include one central branch in District 1, Ho Chi Minh City and nine other branches and two transaction offices all over Viet Nam. ACBS owned by Asia Commercial Bank (ACB).
Under ACB there are some main Boards to ensure ACBS operation complies with ACB policy and government such as: Supervisory board, Financial Audit Board, Risk management board, Human resources and benefits board, Board of ALCO, ACB Capital management company limited (ACBC). Figure 1: ACBS’s organizational structure Source: ACBS annual report 2 TIEU LUAN MOI download : skknchat@gmail.com The company structure divided into 5 main divisions which are investment banking division, brokerage and investment division, business supporting division, supporting division and operation division. Company structure improves the organizational model of its branch network in order to provide a more precise distinction between sales and operational activities. Each division has its own mission and task related to their role like sales, operation, supporting and back office duty.
Classification between divisions helps ACBS enhance business operation and clear job description as well as easier for management. Core activities in 2018: ACBS continues to take focus on retail brokerage operation as the foundation, in conjunction with strengthening institutional brokerage and proprietary trading. ACBS also focus on developing information technology with new products and flexible margin trading policy. Offering customers the best services, ACBS has the regular system upgrade; fast and convenient transaction as well as IT system investment.
To enhance the brand positioning in the market, in 2018 ACBS has many activities to connect investors, brokers and new graduated students who have interest in financial industry. ACBS had successfully launched TRADE PRO competition. This is a contest for both academic and practical, offer many opportunities for fresh graduated students. Furthermore, at the end of 2018 ACBS continued to hold TOP TRADER program.
Unlike Trade Pro, Top Trader is for professional investors compete in financial market. The program had increased ACBS brand positioning and enhanced the trading and investment of investors at ACBS. 3 TIEU LUAN MOI download : skknchat@gmail.com CHAPTER 2: Problem identification 2. Symptoms: Many companies are spending lots of time dealing with problem.
The purpose of this research is find out the problem occurs in ACBS to help its business perform smoothly and increase the productivity. In business and life, we tend to notice the symptoms of a problem before we understand its cause. Through discussing with some core managers as well as staffs at ACBS we see that they have some business decline. The writer focuses on the retail brokerage division who handle the retail customers.
At ACBS the retail brokerage division takes more than 50% of total employees. The writer finds out two symptoms that need to be noticed: • Firstly, fall to attract new employees as entry level • High turnover rate of new employees This part will go deeper to explain more about these symptoms 2. Fall to attract new employees as entry level ➢ Fall to attract new graduated students from Trade Pro program TRADE PRO competition is a contest for both academic and practical, offer many opportunities for fresh graduated students. The contestants are third year and fourth year students who interested in finance.
The purpose is to create talent for future human resources. In the contest, every candidate was given two million VND in securities account. In certain period, they have to trade and use these initial investments to gain more profit. At the final round, 40 candidates have highest profits will present in front of the juries about their investment strategies.
Forty contestants in the final round will have chance to become a trainee in ACBS and will be trained in skills as well as knowledge to become brokers in future. In 2017 and 2018 Trade Pro was successfully held and picked the top forty candidates to attend the trainee program. After the trainee program, just two of the top 40 agrees to work for company and becomes employee at ACBS in 2017 and in 2018 the number is three. Below is the statistic of candidate in trainee program: 4 TIEU LUAN MOI download : skknchat@gmail.com 450 400 350 300 250 200 2017 150 2018 100 50 0 Number of Trainees Official Expect candidates broker(s) Figure 2: Statistic of Trade Pro program in 2017 and 2018 Whereas: − Number of candidates: total number of candidates during the program − Trainee: number of trainees are qualified to attend trainee program − Official broker(s): number of trainees become employees at ACBS − Expect: the expectation of employees from Trade Pro By launching Trade Pro, ACBS expect can finding new employees from fresh graduated students.
The purpose is to train them and build a network can provide talent for future human resource. By evaluating data, there is a big gap between the expectation of employees and the number of real number. From nearly 400 registers, ACBS will pick 40 candidates who have best result to become trainees at ACBS. ACBS sees young people as a subject of human resources in developing and expanding its business.
Trade Pro is seen as potential source and program to find out young talents from fresh graduated students However, launching Trade Pro to attract more employees was not successful as expectation. ➢ Large number of interns left company Every year ACBS has large amount of intern students.