ĐẠI HỌC QUỐC GIA HÀ NỘI
KHOA QUẢN TRỊ VÀ KINH DOANH
---------------------

NGUYỄN THÙY DƯƠNG

IMPROVING EMPLOYEE RETENTION AT
IMPAC CORPORATION
HỒN THIỆN CƠNG TÁC GIỮ CHÂN NHÂN
VIÊN TẠI CÔNG TY CỔ PHẦN IMPAC

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

HÀ NỘI - 2019


ĐẠI HỌC QUỐC GIA HÀ NỘI
KHOA QUẢN TRỊ VÀ KINH DOANH
---------------------

NGUYỄN THÙY DƯƠNG

IMPROVING EMPLOYEE RETENTION AT
IMPAC CORPORATION
HỒN THIỆN CƠNG TÁC GIỮ CHÂN NHÂN
VIÊN TẠI CÔNG TY CỔ PHẦN IMPAC
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 HUY PHƯƠNG

professional knowledge during the course, especially the active and creative
research skills.
My appreciation also goes to the teachers in the thesis review committee for
giving me valuable ideas during my thesis completion process.
My profound gratitude is also conveyed to my instructor for his helpful
assistance and guidance. This thesis could have never been completed without his
enthusiastic counsel and support.
Despite the efforts during the research period, there are still many limitations
in the thesis. I would hope to receive valuable comments from the teachers and coworkers to make this essay more complete.
Thank you very much./.
Ha Noi,

ii

2019


TABLE OF CONTENTS

DECLARATION ....................................................................................................... i
ACKNOWLEDGEMENTS ..................................................................................... ii
LIST OF TABLES .................................................................................................. vi
LIST OF CHARTS AND FIGURES .................................................................... vii
INTRODUCTION .....................................................................................................1
CHAPTER 1. THEORETICAL BASIS ON RETAINING EMPLOYEES IN
ENTERPRISES AND RESEARCH DESIGN ........................................................9
1.1. Concept and role of retaining employees in enterprises.................................9
1.1.1. Concept ..........................................................................................................9
1.1.2. Role ..............................................................................................................10
1.2. Basic factors effecting employee retention.....................................................11

2.1.3. Characteristics of business activities and manpower of the company ........45
2.2. Analysis of employee retention status at Impac Corporation ......................47
2.2.1. Current situation of determining the needs of employees at the Company .47
2.2.2. Status of retaining employees with material tools .......................................48
2.2.3. Status of retaining employees with spiritual tools .......................................57
2.3. Analysis of factors effecting employee retention ...........................................67
2.3.1. Factors belong to the business .....................................................................67
2.3.2. Factors belong to employees .......................................................................68
2.4. Overal assessment of the status of retaining employees at Impac Corporation69
2.4.1. Achieved results ...........................................................................................69
2.4.2. Limitations and causes .................................................................................70
CHAPTER 3. PROPOSAL OF SOLUTIONS TO COMPLETE EMPLOYEE
RETENTION AT IMPAC CORPORATION ......................................................74
3.1. Business development orientation of the Company until 2025 ....................74
3.2. Perpectives of HRM of the Company .............................................................74
3.3. Proposal of solutions to employee retention at Impac Corporation............75
3.3.1. Solutions to determine the needs of employees ...........................................75
3.3.2. Solutions of employee retention with material tools ...................................76
3.3.3. Solutions of employee retention by spiritual tools ......................................83
CONCLUSION ........................................................................................................96

iv


REFERENCES ........................................................................................................98
APPENDIX ............................................................................................................100

v





LIST OF CHARTS AND FIGURES
Figure 1.1. A. Maslow's hierarchy of Needs .............................................................16
Figure 1.2. Influence of factors .................................................................................20
Figure 1.4. Analytical frameworks............................................................................37
Figure 2.1. Company organization chart ...................................................................43

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INTRODUCTION
1. Rationale
Among the resources required to create the social and economic development of the
nation in general and of each enterprise in particular, Human resources are viewed as the
core resource for creating material value, creating the most competitive and decisive
position for other resources. In addition to building a business strategy, Enterprises need
to have a human development strategy commensurate with human capital as Human
resource is an important factor in turning a business strategy into reality.
Today, retaining employees is not just an administrative issue but requires
organizations to recognize the importance of coordinating policies, goals and
employee retention practices which is the work of all managers and the process of
combining systems, policies and governance measures to recruit, retain and develop
qualified staff to meet requirements in performing the overall goal of the
organization. Therefore, in order to promote human resource efficiency, staff
retention should be developed and implemented as part of the overall strategy of the
organization. However, in Vietnam, most businesses are not really aware of the
importance of this work, causing "bleeding" talent became quite common. At the
same time, it can be seen that our high-qualified human resources market is facing
serious crisis because it can not catch up with the development of the economy.

question: What should the Board of Directors of Impac Corporation do to improve
the staff retention in the company in the future?
2. Literature review
Foreign studies on staff retention are seen in many different perspectives and
names. Research related to this issue mainly refers to associating employees with
the organization as a key therapist to retain them. Some typical studies such as:
2.1.

Abroad research situation

The study by Shruti and Nirmala (2013) investigates the impact of human resource
management practices on the organizational commitment of employees in various
sectors in India. Research shows how the human resource management practices
bring the advantage of employee engagement to organizational goals in a globally
competitive marketplace. The results show the factors of promotion, satisfaction,
2


job characteristics, communication, leadership satisfaction, job satisfaction, external
exchanges, internal exchanges, external rewards and internal rewards are positively
and significantly related to cohesion among employees.
According to the study by AK Paul and RN Anantharaman (2004) on the impact of
human resource management on organizational engagement among software
professionals in India and research shows that Human resource management
activities such as friendly environment to employees, career development,
development orientation, and comprehensive training have a significant positive
relationship with engagement with the organization.
The Asma and Mehboob study (2012) examines the effects of human resources on
the organization association of workers in the service sector of Pakistan. This
research identifies the practical activities of human resources such as the sense of

Vietnam, the cohesion of employees with the organization has three components: Effort
(effort to fulfill responsibilities, assigned tasks); Pride (as a member of the organization)
and loyalty (the desire to remain a member of the organization).
Do Phu Tran Tinh et al. (2012) surveyed 200 laborers working in agencies and
enterprises in Ho Chi Minh City, who concluded that promotion opportunities are
3


the most influential factor in the decision to continue to work of young employees
at the company, followed by reward and welfare policies, relationships with leaders,
working condition and, finally, the extent to which they match their career goals.
This study also confirms that income does not have to be an important determinant
of the attachment of young workers to business.
Pham The Anh et al. (2013) in the article on Human Resource Management and
Employee Engagement in Enterprises has provided the basic indicators of cohesion:
loyalty, pride, effort. At the same time, the authors also analyzed three factors that
strongly influenced worker engagement: career development opportunities,
remuneration, and job descriptions.
In 2013, Dale Carnegie Vietnam has teamed up with the MSW to conduct a Team
Cohesion Study, which is being deployed in 87 countries in the Dale Carnegie
office, including Vietnam. The study was conducted with 700 employees in
Vietnam and concluded that there are three main factors affecting employee
engagement: direct relationship with manager, belief in senior leaders, pride when
working for the company. The study also assessed the degree of coherence and
correlation with the criteria of education, sex, title, income, seniority, salary, etc.
2.3.

Study space/niche

All of these studies have conducted research on many aspects of employee retention

2015 -2017; Evaluating the success and limitations of staff retention of the
Company;
- Studying the development orientation of the company, the position of employees
retention of Impac Corporation as the basis for proposing solutions.
4. Objects of research
The research focused on the work of staff retention at Impac Corporation.
5. Scope of research
- Scope of space: The topic researches on the actual situation at Impac Corporation
- Scope of time: With secondary data, the topic uses the actual data of Impac
Corporation in the period of 2015 - 2017.
With primary data, the collection process is carried out from August 2018 to
October 15, 2018
The thesis proposes solutions to retain Impac's employees by 2025
- Scope of content: The study focuses on researching policies to retain employees at
5


Impac Corporation in order to stabilize operations, increase business efficiency and
competitiveness of the Company.
6. Research Method
6.1.

Research Process

Basing on the rationale for retaining employees was presented above and the actual
situation at Impac Corporation, the thesis mainly uses quantitative methods through
investigation and survey of employees who have been working at the Company by
questionnaires, general analysis and statistics, comparing the results obtained to access
actual situation of staff retention at the Company in the period of 2015 - 2017 (details of
the Process of conducting research in Figure 1.3); The research helps to develop the

from outside like the central ministries, publications have been published
(textbooks, articles, magazines, internet, thesises etc).
- Primary data: To assess the satisfaction of employees on retention policies at
Impac Corporation, the author conducted a survey to survey employees who have
been working at the company by questionnaire according to the 5 corresponding
level assessment scale: 1 - Absolutely disagree to 5 - Absolutely agree.
The survey method is the method of using research techniques to collect data and
can be expressed by statistics and tables.
The survey results will be statistically and synthesized, and processed by Excel
software to form an overall view of the situation of retaining employees at Impac
Corporation, helping to orient feasible solutions.
6.3.

Data processing method

Analytical method is to study different documents, reasoning materials about
retaining employees and then analyzing them into each part, each face by time to
understand them fully and comprehensively.
Synthesis method is a method of linking each item, each part of information from
the collected theory to create a new, complete theory system of retaining
employees. In addition, document synthesis helps the author have a comprehensive
and more general view of the existing documents on retaining employees in the
enterprise.
Statistical method is a system of methods such as collecting, synthesizing,
presenting data, calculating characteristics of retention of employees at Impac
Corporation
to serve as the process of analysis, prediction, decision making and use in statistics
of collected data in order to synthesize generalized data for analysis, evaluation and
conclusions.
7

The main purpose of retaining employees is to prevent the loss of qualified
employees of enterprises, which could have an adverse effect on productivity and
service delivery. In addition, retaining employees allows senior managers and
managers to effectively attract and maintain employees with important skills and
high productivity. This is achieved by providing managers with information on
employee retention strategies that will ensure that the goals and objectives of
businesses are implemented.
Creating a retention strategy means putting the organization's needs and
expectations upwards to ensure the professional satisfaction of employees and
create a reliable relationship. In this stable relationship, employees stay with
personal choice based on freedom and consideration of decisions. Retaining
employees contributes an important part to the overall success of the organization.
Highly talented and effective employees need to be encouraged to stay in the
organization by designing maintenance policies that will provide employees with
opportunities to prove their skills and ensure that they fit the job.
Also discussing retention policies, Nyoka's (2006) perspective includes strategies
that will allow workers to balance the needs of their work life with their family life
by set up family-friendly policies and allow flexible work arrangements to match
the necessary personal issues.
With such an effective on-site maintenance policy, so managers can keep
employees at a manageable level. This is mandatory for organizations through the
9


labor process, to attract quality staff for the organization. However, it is important
for managers to devise policies to retain talented employees in their organizations to
prevent employers from benefiting from the investment made in it. Retaining
employees is one of the most important issues for organizational managers as a
result of the shortage of skilled manpower, economic growth and the rate of
employees retiring.

1.2.1. Factors belong to the enterprise
- Objectives of the organization
The goal of the organization is to guide all activities of the organization and the
working process of the employees. The objective of the organization must ensure
harmony between organizational benefits and the interests of employees. The goal
is to decide on each organization's human resource development strategy to the
policy of attracting, using and treating employees.
- Leadership method: Is the overall way of possible and intentional impact of
leaders on employees along with other resources to achieve the proposed
management goals. The important role of leadership methods is to arouse
motivations, stimulate the dynamics, creativity of employees and potential in the
organization as well as other potential and opportunities from the outside (Doan Thi
Thu Ha and Nguyen Thi Ngoc Huyen, 2011, pages 277-278).
- Organizational motivational tools (Nguyen Van Diem and Nguyen Ngoc Quan,
2007, page 128)
In order to create motivation, managers use many different tools to impact on
management objects such as material tools or material dynamics (income policy:
salary, bonus, allowance, welfare, profit etc.); spiritual tools or motivation (about
work, work environment, promotion opportunities etc.).
+ Income policies of the organization
Organizations use employees through the system of income policies, including
policies to ensure employees' benefits: salary, bonus, social insurance (social
insurance), allowances etc. In terms of organizational management of human
resources, policies on salary, social insurance, allowances are a group of factors to
attract and maintain employees (necessary conditions). As for the bonus policy, it is
11


really motivating for employees' efforts (sufficient conditions). However, for some
individuals, a reasonable salary policy and a full social insurance policy are also

In an organization there will be many works with different tasks and levels of
complexity. The more complex the work is, the more skilled and skilled employees
are required. This affects the role and position of employees in the organization, as
well as their salaries, satisfaction and attitudes in labor. Moreover, the stability of
the work also has an impact on the experience and working capacity of the labor
force. Therefore, arranging "right people, right works" is one of the principles to
retain employees as well as bring success to the organization.
- Other human resource management activities of the organization
Other human resource management activities of the organization such as: human
resource planning; work analysis and design; recruiting, arranging human resources;
Training and developing human resources; evaluating the performance of the work
... Thereby, considering the capacity, achievements and prospects of each employee
thus making relevant personnel decisions. The results of these activities affect the
emotional sentiment of each person, so they need to be done correctly. Moreover,
these activities play a central role in establishing organizations and helping
organizations survive and grow. Human resource is one of the indispensable
resources of the organization, so human resource management is an important area
that is crucial to the success of the organization. Appropriate human resource
management activities will increase the motivation of employees in the organization
and vice versa.
1.2.2. Factors belong to employees
- Personal’s goal (Nguyen Van Diem and Nguyen Ngoc Quan, 2007, page 128)
The goal is the desire of employees to work, which motivates employees to work.
The higher the goal, the more personal effort is needed to achieve, so each person's
motivation is also higher.
However, each employee has a specific goal, if these objectives are consistent with
the overall goal of the organization, the organization will develop and vice versa.
Therefore, the administrator needs to capture the personal goals of the employees
and direct them to the overall goals of the organization.
13

need to be aware of the gender, age, race and religion differences of employees to
take appropriate measures to motivate them.
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1.3. Theories of working motivation to retain employees
1.3.1. Theories about needs
1.3.1.1. Abraham Maslow’s hierarchical doctrine of demand (1943)
 Content of theory
Abraham Maslow said that human behavior stems from need. These needs have
different levels and are prioritized from low to high. When low-level needs are
satisfied, a demand at a higher level becomes a driving force. After a need is met,
another need will appear. As a result, people always have unmet needs and these
needs motivate people to perform certain tasks to satisfy them.
- Basic needs (Physiological needs): are the basic needs to be able to maintain
human life such as food, clothing, drinking water, housing ... A. Maslow believes
that, when this need has not been satisfied to the extent necessary to sustain life,
other needs will not motivate people. In an organization, employees first need to be
properly paid to be able to support themselves and their dependents, ensuring their
minimum living standards so they can survive.
- Need for safety: Needs to avoid the danger of body and the threat of losing jobs or
losing assets. Employees in organizations want to work in safe places, leaders care
about their health and safety. Moreover, they also want the stability of their work to
ensure a long life, they do not want to risk losing their jobs all the time. In an
organization, the expression of assurance of safety needs can be working conditions,
labor contracts, policies on social insurance, unemployment insurance, health
policies, retirement regimes etc.
- Social need (need for association and acceptance): is a need for friendship, love,
family affection and integration need in social life. People with high social needs
prefer to work with the participation of many people. In the organization, this need

develop

comprehensively all potential possibilities in the field that they are

talented. The highest level is the need to express people who can master themselves
and be able to influence others, who are creative, have a high sense of selfawareness and are able to solve problems. This is the most difficult need to be
satisfied. Employees who have met the need to be respected will feel the desire to
express their creativity in their work and development as well as face more difficult
challenges. Employees always want to become better and better. Administrators
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