HRM in Vietnam; evidence from a study of employee turnover intention in the food and beverage sector

Abstract

The aim of the research was to contribute to our knowledge of contemporary HRM by evaluating the effectiveness of HRM in Vietnam. This was done by measuring and explaining employee turnover intention in the food and beverage (F&B) industry in Vietnam. The theory and model used integrates three different levels – individual, team and organization. The approach was mainly positivist, with a case study – XYZ Bakery Vietnam- in which a survey of 36 variables across the 3 levels – individual, team and organizational - provided data to describe and analyse the dependent variable (turnover intention). These variables were derived from the literature. The pilot study of XYZ Bakery showed various factors at the three levels affecting employee turnover intention in the company, emphasizing most the organization level then the individual level as major influence of turnover intention. Additionally, there was evidence that the team factor has a relatively low level of connection to turnover intention. For the main study, quantitative and qualitative data collection and statistical analysis conducted (correlations and path-analysis) to describe and analyse to turnover intention in the main study with two additional cases for triangulation verified these associations between different levels and turnover intention. In conclusion, the paths to turnover intention in Vietnam was in some respects replicating what the literature on turnover intention showed, but also indicating that organisational and individual factors were more significant, and team factors less significant than other studies purport to be the case. Especially, a wide range of organizational factors (e.g. salary, communication, management support, work environment) predicted employee turnover either directly and indirectly. Yet, the predictability of turnover intention by organizational and individual factor was varied depending on the strength and quality of organisational factors. The current study implied that measuring job satisfaction and organizational commitment could be an indicator for effective employee resource planning and highlighted the key motivation factors in HRM and importance of training and development in Vietnam HRM. However, there was no clear evidence of any immediate issue in employee / employer relations. Yet, since the HR market has been more competitive since Doi Moi (reform) policy in Vietnam, there should be continuous monitoring to improve overall relationships with employees.