Doanh Thi Thanh Binh - Peace

TRAINING AND ITS RELATION TO STAFF TURNOVER
OF VIETINBANK HEAD OFFICE, HANOI CITY
A Research Proposal
Presented to the faculty of Graduate School
Southern Luzon State University, Philippines and Thai Nguyen University, Socialist
Republic of Vietnam
In Partial Fulfillment of the Requirements for the subject

Methods of Research
By
Training and its relation to Vietinbank Staff turnover
Doan Thi Thanh Binh (Peace)
April-2010
Table content.
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Doan Thi Thanh Binh – MBA 5A Viettri Phu Tho 2
CHAPTER 1
PROBLEM AND ITS SETTING

A. Introduction
During the past decades, staff turnover has become a very serious problem
for organizations. Managing retention and keeping the turnover rate below target and
within the industry’s norms is one of the most challenging issues facing business. All
indications point toward the issue compounding in the future and, even as economic
times change, turnover will continue to be an important issue for most job groups. Yet
despite these facts staff turnover continues to be the most unappreciated and
undervalued issue facing business leaders.
A variety of reasons for this includes the working environment,
compensation policy and also the transparency of decision making. Dealing with staff
turnover needs the understanding thoroughly the nature of staff turnover thus manage
these factors. On the other hand, controlling turnover cannot only be in short term but
also need a further solution for long term of which training proves to be an effective
and valuable manner to do so.
Employee turnover occurs when employees voluntarily leave their jobs and
must be replaced. Turnover is expressed as an annual percentage of the total workforce.
For example, 25 percent employee turnover would mean that one-quarter of a
company's workforce at the beginning of the year has left by the end of the year.
Turnover should not to be confused with layoffs, which involve the termination of
employees at the employer's discretion in response to business conditions such as
reduced sales or a merger with another company.
The severity of turnover varies widely by type of business and the economic
condition of the region where companies are located. Innovative high-tech companies and
the most successful manufacturers frequently experience low turnover rates while fast-
food restaurant managers expect turnover to be as high as 50 to 75 percent. As another
example, coal mining companies in sparsely populated regions experience lower rates of
turnover because there are few other job opportunities.
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In general, reducing employee turnover saves money. Money saved from not
having to find and train replacement workers can be used elsewhere, including the bottom
line of the company's profit statement. The U.S. Department of Labor estimates that it
costs about 33 percent of a new recruit's salary to replace a lost employee. In other words,
it could cost $11,000 in direct training expenses and lost productivity to replace an
experienced employee making $33,000. Private industry estimates for highly skilled jobs
peg turnover losses at a much higher level, up to 150 percent of the position's annual
salary.
Some research studies have found that turnover from transient workers has lasting
effects on loyal employees who stay with a company. One study tested productivity
among workers who were exposed to a management-planted person who quit in the
middle of a task, citing dissatisfaction with the job and the company. A second group of
employees worked with another planted person who had to leave the task because of
illness. The group exposed to the employee who quit had lower productivity levels than
the group exposed to the ill employee. The employees apparently took the complainer's
statements to heart while the ill employee had nothing bad to say about the company.
Staff turnover, in recent years is the most concern of all managers in

Vietinbank. Turnover rate in this bank always is much higher than that of any local bank
including both state owned bank and joint stock bank. Deriving from the situation of
such a high staff turnover in Vietinbank in recent years, T h e r e s e a r c h e r make
informal interviews with some resigned employees and finds out that the reasons for
leaving the organization presents a direct relation between staff turnover and training.
Most of the responses were they do not foresee prospect for career growth.
As per above mentioned, reasons the researcher took the opportunity to
formally evaluate the relationship of training and the Staff turnover rate and also to be
able to prepare a training design for the Vietinbank.
When staffs leave, this turnover can have a negative impact on your business.
This is especially the case if those leaving either are key to its success and continuity or do so
because they think you have treated them unfairly, which could result in tribunal claims.
Therefore, retaining staff and treating them fairly has benefits for your business.
Continuity and stability become part of your business' culture, and staff feel they belong
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to the organization and take pride in their work. Skills and competencies are maintained
in key business areas and productivity is often increased.
Staff turnover is a business risk, but you can minimize the ways in which it affects
your business through a structured staff management programmed.
This guide will help you manage staff turnover by providing examples of what
makes staff leave and a checklist of measures to help staff retention. There is also
guidance on how to measure and benchmark turnover and how to improve the
management of leavers.
Level of staff turnover in Vietinbank over years

Staff turnover extracts the stability in personnel of any organization, thus it receive a special
attention of employers. Although Vietinbank has a very standard and precise recruitment and
selection process, it bears a concession of turnover year after year. By the end of year 2007,
staff turnover stayed at 12.94%, and then increased to reach the peak turnover of 15.04% in
2008 and remained slightly to 13.75% in 2009. Turnover level always much higher than 10%
since 2007 up to now, ranking the highest level among finance and banking entities in
Vietnam.
Figure 1: Staff turnover rate in Vietinbank through years
Source: HR department- Vietinbank
Staff turnover over year
16.00%
14.00%
12.00%
Percentage
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
2007 2008 2009 3 month of this
year
Year
Taking into account turnover of banking and finance industry, it is clear that Vietinbank in
recent years is at the highest level of turnover. Vietinbank’s turnoverrate in 2007 is 3 (three)
times as much as that of Vietcombank– a joint stock bank in Vietnam that has same business
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size and same workforce level. Military bank- another local bank seems to have much lower
rate than Vietinbank with below 2% turnover annually. Turnover of Vietinbank is not only
high in Vietnam but also rather high in comparison with international market where exists an
active labor market with the average rate for finance sector of about 14% in the US (see
below figure ). Thus, it’s obviously that staff turnover is a real serious problem in Vietinbank.
Source: U.S. Department of Labor, Bureau of Labor Statistics (BLS).- NOBSCOT

corporation
B. Statement of the Problem
This study aims to analyze the relationship between Training and Staff turnover in
VietinBank and proposes solutions to improve the Staff turnover rate. Specifically it will
seek to answer the following questions:
1. What are the factors affecting the high rate of staff turnover in Vietinbank
Head office as perceived by:
1.1 Managers
1.2 Present employees
Is there a significant difference on the perception of Managers and
present employees of Vietinbank Head office on the factors affecting
high rate of staff turnover?
2. What is the degree of relationship between Training and Staff turnover
in Vietinbank as perceived by:
2.1 Managers
Is there a significant difference on the perception of Managers and
present employees of Vietinbank Head Office as to degree of
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relationship between Training and staff turnover?

3. What are the problems and limitations on the training programs of
Vietinbank as perceived by:
3.1 Managers
Is there a significant difference on the perception of Manager and
Present employees of Vietinbank Head Office as to problems and
limitations of the Bank’s Training Program?
4. What will be the proposed for Training designe to improve the rate of
staff turnover in Vietinbank Head Office?
C. Hypotheses
• There is no significant difference on the perception of Managers and Present
employees of Vietinbank Head office on the factors affecting high rate of staff
turnover.
• There is no significant difference on the perception of Managers and present
employees of Vietinbank Head Office as to degree of relationship between
Training and staff turnover.
• There is no significant difference on the perception of Managers and present
employees of Vietinbank Head Office as to problems and limitations of the
Bank’s Training Program?
D. Significance of the Study
This study will provide an in depth analysis of the factors affecting the high rate
of Staff turnover for Vietinbank. Hence the result will be beneficial to the Management
of the bank, particularly the Human Resource Department for it will provide many
suggestions for them to reduce the staff turnover rate and select the effective training
method to retain their staffs, minimize expense on a result of low staff turnover rate.
Also this will be important to the employees of the bank because a better
training program will be designed for them. Also they are the direct beneficiary of this
study for it concerns their welfare. .
In general the Vietinbank will benefit from this study because this is only the
first research focus on human resource of Vietinbank and find out which will be the
appropriate method of training in Vietinbank, then it can help the bank to reduce the
expenditures.
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The researcher, as a Master in Business Administration candidate will benefit

from this research because, she will be able to apply the theories and concept learned in
the entire study of the course. Likewise she will be able to contribute to the improvement
of the training program and help in minimizing Staff turnover rate. And lastly other
researchers who will be conducting similar researchers can use this as reference.
E. Scope and Delimitation
The relationship between staff turnover and training will be taken from the
respondents, who are former employees of Vietinbank Head office. Data will be
gathered through the use of a questionnaire. This will be distributed personally or send
through e mail.
From the responses, will determine the common reasons why employees leave
their jobs in Vietinbank Head Office.
The training design will be based from the perceived needs. Books and other
published references will be used.
This thesis will focus only on the Vietinbank Head office experiences, and the
respondents will be the Managers and present employees of the above states branch.
This thesis is a study of the researcher’s study program at Thai Nguyen
University and as present an employee of Vietinbank’s Main transaction office
centre. She was faced with some difficulties in making an ideal and comprehensive
research. Such a thorough framework needs a huge body of information to be
processed as well as the involvement of various departments in the bank, especially
the Board of Management.
F. Definition of terms
A. Training: Training is the process of acquiring specific skills to perform a job
better (Jucious, 1963).
B. Staff turnover: Staff turnover can be defined as the ratio of the number of
workers that had to be replaced in a given time period to the average number of
workers.
C. Turnover or labor turnover is the rate at which an employer gains and losses
employees. Simple ways to describe it are "how long employees tend to stay" or "the
rate of traffic through the revolving door." Turnover is measured for individual
companies and for their industry as a whole. If an employer is said to have a high
turnover relative to its competitors, it means that employees of that company have a
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shorter average tenure than those of other companies in the same industry. High turnover
can be harmful to a company's productivity if skilled workers are often leaving and the
worker population contains a high percentage of novice workers.
D. Resigned employees- Employees who were separated from the job and the
company.
CHAPTER 2
REVIEW OF RELATED LITERATURES AND STUDIES
A. Review of foreign Related Literatures
Training literatures
What is training?
According to “ Training and development.naukrihub.com” Training is a learning process
that involves the acquisition of knowledge, sharpening of skills, concepts, rules, or
changing of attitudes and behaviors to enhance the performance of employees. Training
is activity leading to skilled behavior.

ROLE OF TRAINING
Usually an organization facilitates the employees' learning through training so that
their modified behavior contributes to the attainment of the organization's goals and
objectives. Training is also a process of teaching, informing, or educating people so
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that they may become as well qualified as possible to do their job, and qualified to
perform in positions of greater difficulty and responsibility.
Importance Of Training and Development (According to “ Training and
development.naukrihub.com” )
• Optimum Utilization of Human Resources – Training and Development helps in
optimizing the utilization of human resource that further helps the employee to achieve
the organizational goals as well as their individual goals.
• Development of Human Resources – Training and Development helps to provide an
opportunity and broad structure for the development of human resources’ technical and
behavioral skills in an organization. It also helps the employees in attaining personal
growth.
• Development of skills of employees – Training and Development helps in increasing
the job knowledge and skills of employees at each level. It helps to expand the horizons
of human intellect and an overall personality of the employees.
• Productivity – Training and Development helps in increasing the productivity of the
employees that helps the organization further to achieve its long-term goal.
• Team spirit – Training and Development helps in inculcating the sense of teamwork,
team spirit, and inter-team collaborations. It helps in inculcating the zeal to learn within
the employees.
• Organization Culture – Training and Development helps to develop and improve the
organizational health culture and effectiveness. It helps in creating the learning culture
within the organization.
• Organization Climate – Training and Development helps building the positive
perception and feeling about the organization. The employees get these feelings from
leaders, subordinates, and peers.
• Quality – Training and Development helps in improving upon the quality of work and
work-life.
• Healthy work-environment – Training and Development helps in creating the healthy
working environment. It helps to build good employee, relationship so that individual
goals align with organizational goal.
• Health and Safety – Training and Development helps in improving the health and safety
of the organization thus preventing obsolescence.
• Morale – Training and Development helps in improving the morale of the work force.
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• Image – Training and Development helps in creating a better corporate image.

• Profitability – Training and Development leads to improved profitability and more
positive attitudes towards profit orientation.
• Training and Development aids in organizational development i.e.
• Organization gets more effective decision-making and problem solving. It helps in
understanding and carrying out organizational policies
• Training and Development helps in developing leadership skills, motivation, loyalty,
better attitudes, and other aspects that successful workers and managers usually display.
Types of training
Training in HRM has the following categories and all of these are needed for proper
development of employees;
a. Induction or Orientation Training: This training is provided for the newly hired
or reassigned personnel. These programs are designed to give new employees the basic
knowledge, understanding, and skill needed for successful job performance.
b. Foundation Training: Foundation training is also appropriate for newly recruited

personnel. Foundation training is made available to employees to strengthen the
foundation of their service career. This training is usually provided at an early stage of
service life.
c. Maintenance or Refresher Training: This training is offered to update and
maintain the specialized subject-matter knowledge of employees.
d. On-the-Job Training: This is ad hoc or regularly scheduled training, such as
fortnightly training under the training and visit system of extension, and is provided by
the superior officer or the subject-matter specialists to the subordinate field staff.
e. Career or Development Training: This type of training is designed to upgrade the
knowledge, skills, and ability of employees to help them assume greater responsibility
in higher positions. The training is organized departmentally for successful extension
workers, at all levels, for their own continuing education and professional
development.
Selecting a Training Method:
According to ASMED 2006, you need not only to know the types of training that
are on offer (both formal and informal), but also to know your employees. Personality
plays an important role in affecting learning abilities. Thus, if you send employee on an
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expensive training course without being sure that they respond to the methods being used,
you could be wasting your resources.
The following are examples of training that could be done in-house relatively cheaply:
1. Shadowing another employee
2. Seminars or workshops facilitated by a specialized, or particularly strong member

of staff
3. Coaching provided by management or other employees
There may be training courses available through other business support organization
such as government agencies, VCCI, bilateral donor projects, or the Women’s Union.
You should make enquiries in your area to find out what is available.
With regard to tailoring it appropriately to your staff, this can be done by

consulting with staff and management (during appraisals etc) to identify areas where
training is needed or where employees feel that they could improve. You may be able to
identify some very specific areas, such as how to operate certain machinery or
technology, or more general longer term learning needs such as how to write effective
reports, or how to use initiative. The specific, short term training needs may be easier to
meet than the longer term ones. However, for the longer term goals, you may begin with
a formal course and follow up regularly with in-house, more informal sessions to
reinforce and monitor what was learned. Just comparing the quality of outputs among
different staff members can be a good way to do this.
Remember: learning is an ongoing process that may continue on a daily basis. If

you foster a ‘learning atmosphere’ in your business, you may be able to establish a
dynamic business culture where employees continually extend their skills and develop
their capacity.
Creating a personal development plan for each staff member is another way to
select appropriate training methods, since this will help identify what each employee
wants, needs and how s/he learns effectively.
There are many different ways to train. Indeed, entire books have been written on the
ways to deliver training. How can a manager charged with training his or her employees
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choose an appropriate method? This article defines some of the most common training
methods and reviews pros and cons for each one.
The method by which training is delivered often varies based on the needs of the
company, the trainee, and on the task being performed. The method should suit the
audience, the content, the business environment, and the learning objective. Ideally, the
method chosen will motivate employees to learn, help employees prepare themselves for
learning, enable the trainees to apply and practice what they've been taught, help trainees
retain and transfer what they have learned, and integrate performance with other skills
and knowledge.
Other factors affecting the choice of a training method include:
- Age, gender, or level of education of the trainees
- Learning styles of the trainees
- Number of trainees
- Budget
- Trainer's skills and training style
Staff turnover literatures.
What is staff turnover? (Stefan Töpfer, 2007 ) Often the term “staff turnover” is used
in connection with fluctuation in staff levels, which means staff leaves the company – for
whatever reason. How large or small staff turnover in a company typically is, but large
staff fluctuations are not good for any business. It usually indicates problems during the
hiring process or management problems within the company.
Staff turnover can be defined as the ratio of the number of workers that had
tobe replaced in a given time period to the average number of workers. It is also a ratio
comparison of the number of employees a company must replace in a given time
period to the average number of total employees. A huge concern to most companies,
staff turnover is a costly expense especially in lower paying position, for which the
staff turnover rate is highest. Many factors play a role in the staff turnover rate of any
company, and these can stem from both the employer and the employees. Wages,
company benefits, employee attendance, and job performance are all factors that play a
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significant role in staff turnover.

Factors affecting staff turnover
According to “ Department for business innovation and skills, 2010” Pay is rarely
the only reason why people leave, although high pay levels are often an incentive to stay.
When one run a business, it is good to be aware of factors that commonly affect staff
turnover rates, so that one can take steps to reduce them. Consider how a business scores
in the following areas.
Recruitment and induction
1. Making the right choice - are you getting the staff selection process right? Do
you encourage staff to recommend friends and acquaintances for job vacancies?
2. Induction - how do you welcome and orientate new staff? How do you let them
know where things are and what they and their colleagues are supposed to do?
3. Flexible working arrangements - do you recognize your employees' changing

needs to achieve work-life balance?
Training and staff development
A. Motivation - how supportive and encouraging is your business?
B. Organizational culture - what are you doing to promote an inclusive culture in

which staff are aware of and committed to the business' aims?
C. Matching jobs to people - are you making the best use of skills, experience and
competencies, and helping staff fulfill their aspirations?
D. Staff training and development - are you investing in your staff by giving
them time and opportunities to learn new skills?
E. Formal appraisals - how often do you give your staff the opportunity to discuss
their performance?
F. Effective grievance procedure - do staff know how to register a grievance and

are they making use of the procedure?
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G. Team working - do you encourage common goals and discourage unhealthy

individual rivalries?
Contracts, pay and working environment
a. Contracts - do the terms and conditions of your contracts encourage staff loyalty?
b. Competitive pay rates and a fair, transparent pay system - are they in line
with your industry?
c. Incentives and other staff benefits - are they relevant for your staff? Can staff
choose the ones they need?
d. The office environment - is the physical office environment pleasant and well
designed? Are noise, light and ventilation levels acceptable?
Measuring and benchmarking turnover

According to “ Department for business innovation and skills, 2010”, you should measure
your current staff turnover in percentage terms, following this simple two step process:
• Add together the number of staff working at the beginning of the time period and the
number of staff working at the end of the period and divide by two. This will give you
your average number of staff working within this time period - you will need this
number for the next stage.
• Work out the number of leavers over the time period, multiply by 100 and then
divide by the average number of people working in that same period.
This formula will give you a percentage for your business, known as the separation rate,
that you can compare over time. You can also use this indicator to see how your business
compares with averages in your industry. This is known as benchmarking.
To measure how experienced employees are being retained, you can calculate the
stability index - number of workers with one year's service (or more), divided by number
of workers one year ago, multiplied by 100 = Stability index percentage rate.
Patterns of employee turnover

According to “ Department for business innovation and skills, 2010” the characteristic
pattern of employee turnover is high for new starters, then decreasing. This pattern will
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vary in any single organisation and can be shown graphically. It is known as the 'survival
curve' and can be extremely helpful in understanding the nature of employee turnover,
but must always be used in conjunction with employee turnover rate.
To create the survival curve, you must plot the number of leavers against the period for
which they were working.
Examining the causes of turnover

According to “ Department for business innovation and skills, 2010”, to make a
meaningful assessment of your current business' position, try to identify the causes of
turnover:
• It is often effective to have consultations with individuals or groups of staff to

root out any underlying problems and causes of dissatisfaction.
• Exit interviews are carried out by many businesses and can reveal common
reasons for people leaving, and highlight any emerging patterns. See our guide
on when an employee resigns.
• Surveys of all staff can often indicate general satisfaction levels, but remember to
address any issues arising so that they know you take their views seriously.
• Analyse your recruitment and selection procedures to see if you can identify
expectations or potential problems earlier. Alternatively you may need to make the
business' expectations clearer at the recruitment stage.
Why control staff turnover?

Staff turnover is one of the leading concerns among employers. Losing experienced staff
can affect the ability to meet program and organizational goals. The cost of turnover rises
depending on the a level of the position with the organization. These costs can range from
30 to 50% of yearly salaries for entry level jobs, up to 150% for mid-level, and as much
as 400% for senior. This includes marriage education programs where up front training
costs can be high, and good staff is needed for program success.
Turnover happens when staffs leave . Unwanted staff turnover can have a negative
impact on your business, especially if those leaving are keys to the success and
continuity of your business, or leave as a result of being treated unfairly.
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According to a 2003 workplace survey by CIGNA Behavioral Health (based in Eden

Prairie, Minn, USA) called "Worried at Work: Mood and Mindsets in the American
Workplace," workers are stressed to epidemic proportions. Forty-four percent of
employees surveyed said their jobs were more stressful today than a year ago. As a
result, 45% said they've either considered leaving their jobs in the last year, have left a
job, or plan to do so soon. (see Drew Bracken, Uncertain times boosting employee
levels of stress, “Business First” magazine, May 23, 2003)
Turnover can be extremely costly to an organization. For each employee leave, the
turnover costs range from 120% to 200% of annual salary including both tangible and
intangible ones as follows:
Management time involved in reviewing applications, interviewing candidates and
conducting reference checks in recruitment and selection activities
Potential overtime costs for other staff while the position is vacant
Time and resources spent for orientation and training of the new employee
Supervisory disruption in orienting and training the new employee Loss of productivity while the
employee is on the learning curve Errors that occur while the employee is learning
On average, new employee performance takes 13.5 months to reach maximum
efficiency. It also means that excessive staff turnover is a barrier to achieve good quality
service for the missing of productivity and workload. As a result, staff turnover decline
organization morale.
Therefore retaining staff has benefits for organizations. Continuity and stability
become part of your business' culture, and staff feel they belong to and take pride in
the business. Skills and competencies are maintained in key business areas and
productivity is often increased.
Staff turnover is a business risk, but corporate can minimize the ways in which it
affects its business through a structured staff management program.
There is no set level of staff turnover above which effects on the employing
organization becomes damaging. Everything depend s on the type of labor markets.
Where it is relatively easy to find and train new employees quickly and at relatively
little cost (ie where the labor market is loose), it is possible to sustain high quality levels
of service provision despite having a high turnover rate. By contrast, where skills
are relatively scarce, where recruitment is costly or where it takes several weeks to fill
a vacancy, turnover is likely to be problematic from a management point of view.
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This is especially true of situations in which they are losing staffs to direct competitors
or where customers have developed relationships with individual employees as is the
case in many professional services organizations.
According to: Written by J. Beam (Last Modified: 08 January 2010) Employee

turnover is a ratio comparison of the number of employees a company must replace in a
given time period to the average number of total employees. A huge concern to most
companies, employee turnover is a costly expense especially in lower paying job roles,
for which the employee turnover rate is highest. Many factors play a role in the employee
turnover rate of any company, and these can stem from both the employer and the
employees. Wages, company benefits, employee attendance, and job performance are all
factors that play a significant role in employee turnover. Companies take a deep interest
in their employee turnover rate because it is a costly part of doing business. When a
company must replace a worker, the company incurs direct and indirect expenses. These
expenses include the cost of advertising, headhunting fees, human resource costs, loss of
productivity, new hire training, and customer retention -- all of which can add up to
anywhere from 30 to 200 percent of a single employee's annual wages or salary,
depending on the industry and the job role being filled.
While lower paying job roles experience an overall higher average of employee
turnover, they tend to cost companies less per replacement employee than do higher
paying job roles. However, they incur the cost more often. For these reasons, most
companies focus on employee retention strategies regardless of pay levels.
Most companies find that employee turnover is reduced when they address issues that
affect overall company morale. By offering employees benefits such as reasonable
flexibility with work and family balance, performance reviews, and performance based
incentives, along with traditional benefits such as paid holidays or sick days, companies
are better able to manage their employee turnover rates. The extent a company will go to
in order to retain employees depends not only on employee replacement costs, but also on
overall company performance. If a company is not getting the performance it is paying
for, replacement cost is a small price to pay in the long run.
B. Review of Related studies

Local Studies
According to Ha Nguyen, in her study on “ The role of training in managing
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the company” (2008) in which indicated that: Training will help company to attract more
potential employee, training also help the company to minimize the shortage of
manpower, it also help the company to upgrade the existing manpower:
Training will make the employees more familiar with new skills and knowledge which
help them to finish their work effectively. Then they will be more confident when dealing
with their job and will stay longer with the company and reduce the staff turnover.
According to Nguyen Chau Ha (2007) on his study “Staff turnover reseach and
solution” he conclude that:
The number of employees who quit from company will bring many bad effects to
company image, in case that the employee is a key person for company activities. There
are so many reasons why the employees stop working those are:
+ Recruitment and promotion policy
+ Training and updating new skill and technology for employee
+ Employee contract, salary rate, working environment
Foreign Studies:
Workers rank stress as the top reason they would leave their employer, but stress isn't
even among the top 5 reasons employers cite when asked why employees leave,
according to a study by Watson Wyatt and WorldatWork (October 24,2007).
Employers were more likely to say that insufficient pay and lack of career development
and promotion opportunities are the top reason employees leave their company.
Rank Employees Employers
1 Stress levels (37 percent) Base pay (52 percent)
Career development opportunities (47

2 Base pay (33 percent)
percent)
3 Promotion opportunity (26 percent) Promotion opportunity (45 percent)
Career development opportunities Relationship with supervisor/manager (35

4
(23 percent) percent)
5 Work/life balance (22 percent) Work/life balance (24 percent)
The study found that when employees are satisfied with stress levels and work/life
balance, 86 percent are more inclined to stay with their company (versus 64 percent when
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dissatisfied) and 88 percent are more likely to recommend it as a place to work (versus 55
percent when dissatisfied).
The study found that two of three companies worldwide report difficulty attracting top-
performing workers, while a full 70 percent have difficulty attracting critical-skill
employees.
More than half of companies report difficulty retaining top-performing (52 percent) and
critical-skill (56 percent) workers. The United States has the highest median voluntary
turnover rate, at 11 percent, while Latin America has the lowest, at 5 percent.
The study included a survey of 946 companies and a complementary survey of 13,000
employees.
Storey (2001) stated that, it is Human Resource Management that creates "the
ability to attract and hold on to talented employees is the single most reliable predictor of
overall excellence" From this it can be seen that the selection, training and retention of
employees is a vital element for a successful organization.
Costs of staff turnover
Updated 14 August 2006 - This year's annual survey of recruitment, retention and
turnover conducted by the Chartered Institute of Personnel and Development (CIPD)
finds that turnover increased from 16 to 18 per cent in 2005.
Paradoxically, organizations in this year's survey were better at employee retention but an
increase in the level of redundancies more than compensated for this. Losing staff,
whatever the cause, is expensive: overall, the average cost of turnover per employee
(including any redundancy cost) is now £8,200. For managers and professionals this rises
to £12000.
Costs can be attributed to:
• Redundancy and administrative costs associated with the leaver's

separation from the company
• Administrative costs associated with creating a vacancy
• Costs of covering the vacancy until it is filled
………………………………………………………………………………………………
• Advertising, agency or online costs for the vacancy
• Costs involved in the selection process
• Induction and training costs
Employee turnover can be split into two categories: voluntary and involuntary. Voluntary
turnover arises from individuals leaving organizations for their own reasons; involuntary
turnover involves redundancy or dismissal. Voluntary turnover ("quitting") is normally
unplanned as far as the organization is concerned. Strategically important individuals can
leave at awkward times, creating further expensive consequences for a business. There is
also a tendency for high proportions of new recruits to leave during the first few months
of employment - the so-called 'induction crisis'.
Normally, according to the CIPD report, voluntary turnover substantially exceeds

involuntary turnover. However, in 2005 there were four areas of the economy where
involuntary turnover was high:
- Manufacturing - accounting for about one half of turnover
- Private services, public sector and voluntary sector - around

one third of turnover
Training: one of the keys to reduce staff turnover

According to the study of Becky Paskin, 2008 “Reduce staff turnover through
motivation and training” From the employer point of view, the price of replacing
employees can be staggering. Some estimates report that staff turnover now costs an
average of from 0.5 to 2.5 times the employee’s annual salary. For an employee
earning $40,000 a year, a departure would cost the corporation a whopping $100,000.
That may sound incredible at first, but not after adding the expenses of advertising,
recruiting, orienting and training a replacement together with lost productivity and
efficiency, revenue, morale and, in some cases, customer loyalty.
So what can a company do to avoid seeing valued employees walk out the door? Offer
bigger salaries? More benefits?
In today’s still uncertain job market where competition between employer is fierce,
employers can use salaries and benefit tool to attract people but in long term when
labor market become saturated, compensation policy of all companies will be the same
………………………………………………………………………………………………
therefore company which provides better working environment and better training
condition will keep employees stay with.
From employees’ points of view, they are likely to be more interested in job
satisfaction and growth. May be at recruitment period, people will choose companies
that provide more preferable compensation rate to work. Making consideration
between two companies that provide same compensation condition, it’s obviously
clear that people will join the corporation give them better working environment and
better chance for development. People who have experienced their time in many
different companies fully understand the importance role of training in their career.
For them, job satisfaction and potential growth are put on the top priority. For
corporations, that means investing in them—providing employees with tools that will
help them improve their job skills and manage their career paths.
C. Conceptual Framework
INPUT PROCESS OUTPUT
Respondents Profile:
-Present Employees
Evaluate perception by
-Resigned Employees
taking the mean responses,
Respondents Perception as to: and the significant * Find out the effective
*Factors Affecting high staff relationship between training traning method for
turnover and staff turnover Vietinbank employees.
*Relationships between
training and staff turnover
*Problems and Limitations of Analyze the gap between *Proposed staffing training
the training program what Vietinbank training design for Vietinbank
policy future and what do
they have at present.
FEEDBACK
The process of conceptual framework comes from profile of the employee of the
Vietinbank HO (located in Hanoi city). Listed out all the related factors that will affect
the staff turnover: salary, income, working environment, management level…these
factors will directly effect on the Vietinbank staff turnover in how they give training
………………………………………………………………………………………………
method to effect on their employee and slowdown the staff turnover of the company.
The second part of input is profile of respondents including age, sex, civil status,
education attainment, occupation, income. These factors will impact on the trend of
answer for the questionnaire. These factors will effect on the demand for training and
training method.
And the last of the output is perceived of respondents on training design of the
company with respect: time for training, training method …This part will evaluate the
exactly and detailed perceive of respondent on the company training strategy on almost
aspects of the research's contents.
The second phase of the study is processing. In this phase, questionnaire is

evaluated and gives the distribution of questionnaire checklist; the data will be statistic by
a statistics software and interpretation
The third phase the Training methods of Vietinbank HO will be determined and
based on the result from statistic, the training strategy in detail will be given.
………………………………………………………………………………………………
CHAPTER 3
RESEARCH METHODOLOGY
This chapter presents the design and methodology of the study. It includes
research design, description of respondents, samples and sampling technique, research
instruments, data gathering procedures and statistical treatment.
a. Research design
The research design is created with the purpose of gathering data and information
regarding the worker, analyze the existing issues, assess them and find out the best
solution to reduce the staff turnover and then pushing the training.
The researcher uses the descriptive method, in which includes quantitative and
qualitative analysis of data. And the main source of data comes from questionnaire,
interviewer, and document analysis (CV analysis).
The information for those who leave Vietinbank to work in other place will be
collected using email (the email address come from the human resource department)
The descriptive method of research will be used, and basically describe the factors
affecting the High Staff turnover rate and the degree of relationship of Training and the
Staff turnover rate. Also it will describe the problems and limitation of the Bank’s
Training program and propose improvement.
b. Respondents of the study, sample size and sampling technique
* Respondent of this thesis are:
No Type of respondent Number
1 Managers 15
2 Present employees 55
Total 70
* Sample size: To determine the ideal sample size for a population, applying the
Slovin's formula
n=N/(1+(N*e2))
………………………………………………………………………………………………
This thesis also take the interview with employees of Vietinbank with the total
number of Employees in HO is around 120 employees (except managers)
Where:
n=120/(1+120*0.12)= 55
n = number of samples
N = total population = 120
e = margin of error (= 1% = 0.1)
* Sampling technique: This study will use simple random sampling method to
select the sample, base on the list of respondent with the selection distance is k (k=N/n).
If one sample can not access we will select the next close as replace sample.
From the existing list of personnel from the file of HR department, 55 respondents
will be drawn.
c. Research Instruments
The instruments that will be used in this thesis are questionnaire, therefore three
groups of respondents are:
(i) Managers
(ii) Present employees
For some qualitative factors, respondents will answer the questionnaire according to
given form, from 1 to 5, similar to “never”, “seldom”, “sometimes”, “often”,
“always”. It means that the respondents will express their ideas, from strongly
disagree to strongly agree attitude.
Parts of the Questionnaire
Part I- Profile so the most important is whether the respondent is a manager, or present
employee or a resigned employee.
Part II- Perception as to causes of labor turnover, as perceived by
1. Managerss
2. Present employees
Part III- Relationship of training to labor turnover as perceived by
1. Managers
………………………………………………………………………………………………
Part IV – Problems and limitations of the training program in Vietinbank as perceived by

the
1. Manager
d. Data gathering procedures
1. Request for permission: Before making an interview with manager the

reseacher have to take the permittion of the interviewee and orgnize a meeting
with them.
2. Review literatures and studies: The reseacher have to look carefully through
internet to find out the most suitable literatures for this scope of thesis
3. Prepare your Research instrument: Prepare the questionaire use for
manager and employee
4. Checking of the instrument: Pretest
5. Validating the instrument
6. Final revision of the instrument
7. Sampling design and Taking the sample:
8. Data gathering: Secondary data: from the human resourse department,
primary data: from interviewing
9. Encoding of data
10. Data analysis and evaluation
e. Statistical Treatment
Data will be recorded in statistics software and processing. Then the tables of
result will be supplied for comments and evaluations in the next chapters.
For the responses on the survey instrument the 5 Likart Scale will be used and
interpreted based on their averages.
Interval Equivalent
4.20 – 5.00 Always
3.40 – 4.10 Frequent

………………………………………………………………………………………………
2.60 – 3.30 Sometimes
1.80 -- 2.50 Seldom
1.00 – 1.70 Never
Testing for the Hypothesis it will use One- Way Analysis of Variance at .1 level
of significance.
………………………………………………………………………………………………
Appendix A
Letter to respondents
Dear Mrs./ Mr.,
I am Doan Thi Thanh Binh, a Master of Business Administration student from the
International Training Center of Southern Luzon State University in the Republic of the
Philippines and Thai Nguyen University of the Socialist Republic of Vietnam. Currently I
am working on the Masteral Thesis entitled " TRAINING AND ITS RELATION TO
STAFF TURNOVER OF VIETINBANK".
In this regard, I am requesting for your invaluable help by accomplishing the attached
questionnaire. Please do not leave any blank, and be rest assured that all your responses
will be treated with confidentiality and use for academic purposes only.
Thank you very much for your help in attaining the objective of this research study.
Very truly yours,
Signature Over Printed Name
………………………………………………………………………………………………
QUESTIONNAIRE FOR MANAGERS AND EMPLOYEES
Direction: Please answer this checklist by ticking on the item that corresponds to your
answer or write your answer on the available space.
Full name:__________________________
Department: ____________________________________________________
Position in the Company: q Managers q Employees
Part I: PROFILE OF THE RESPONDENTS
1. How long do you working in Vietinbank (Length of service in the bank):
q Less than 2 years q 2 years less than 4 years
q 4 years less than 6 years q 6 years above
2. What is your income?
q Less than 4 millions q 4 millions less than 6 million
q 6 millions less than 10 millions q Above 10 millions
Part II. Factors affecting labor turnover
The following statements are negative situation that maybe present in your
workplace. Rate the following using the indicators below, whether they might cause a
personnel to resign from his/her present job. Place a check (/) mark on the number
corresponding to your perceived answer;
5- Strongly agree 4- Agree 3- slightly agree 2- disagree 1 -Strongly disagree
………………………………………………………………………………………………
Point
5 4 3 2 1
Questions
Training programme in Vietinbank suitable for your     

present responsibility
Employees whose attend the training programe will be     

pay higner salary
Lack of appopriate training     
Once hired employees were given training in the job.     
There is a regular training program for all employees.     
Employees are given fair changes for training and     

development.
The following types of training are present in the
company:
a. Simulations     
b. Case Studies     
c. Role Playing     
d. Demonstration     
e. Seminar     
Training opportunities     
Please use the options below by indicating a check mark (√) on the appropriate
option box provided. 1 . Always 2. Frequent 3. Sometimes 4. Seldom 5. Never
In your opinion what will be the major reason for employee leaving the existing work?
Training and development Problems
• There is an adequacy of training available for     

the employees.
• Training is not properly and justly distributed     
to all employees.
• Very few were sent to training.     
………………………………………………………………………………………………
• The personnel sent to training did not improve     

in their work.
• The employee who attend so many training     
progamme not paid high
Part III- Relationship of training to labor turnover as perceived by:
The following questions relate to your perception regarding the training method
applied by Vietinbank HO. Put a check mark on the number corresponding to your
choice. Each number has this meaning as state below:
1 2 3 4 5
Sales Skills
Weak avg. strong
Ability to qualify customers

quickly
Identifying customer needs
Identifying customer objections
Overcoming customer objections
Closing the sale
1 2 3 4 5
People / Communication Skills
weak avg. strong
Listens attentively
Shows enthusiasm on the phone
Shows enthusiasm face-to-face
Friendly / approachable
Polite with customers &

management
Teamwork
Understanding customers’ POV

………………………………………………………………………………………………
Building a rapport with customers
Ability to assist / train others
1 2 3 4 5
General Banking Skills
weak avg. strong
Goal-oriented
Able to execute managerial orders
Skill in using the phone systems
Order entry skills
Interest in personal development
Understands financial goals

Part IV – Problems and limitations of the training program in Vietinbank
Questions on Employee Satisfaction with Training, On the following scale, circle the
number to indicate how much you agree or disagree with each statement.
Question Strongly Strongly
disagree Diagree Neutral Agree agree
1 2 3 4 5
Employees receive the training 1 2 3 4 5
necessary to do their jobs
Employees receive needed
training about new technologies.
Training opportunities are
unfairly allocated across
employees or work units
Supervisors/team leaders support
employee efforts to learn outside
the job (e.g., conferences, cont.
education, membership in trade
or prof. org.).
High priority is given to
………………………………………………………………………………………………
providing appropriate training.

Overall, how satisfied are you
with the training you have
received at the agency
References
1. Barron, J. M., Berger, M. C., & Black, D. A. (1999). Do

workers pay for on-the-job training? Journal of Human
Resources.
2. Dearden, L., Machin, S., Reed, H., & Wilkinson, D. (1997).
Labour turnover and work-related training. London UK7
Institute for Fiscal Studies.
3. Futrell, C. M., & Parasuraman, A. (1984). The relationship
of satisfaction and performance to sales force turnover.
Journal of Marketing.
………………………………………………………………………………………………
4. Green, F., Felstead, A., Mayhew, K., & Pack, A. (2000).

The impact of training on labour mobility: Individual and
firm-level evidence from Britain. British Journal of
Industrial Relations.
5. Recruitment, retention and turnover 2008. London:
Chartered Institute of Personnel and Development, 2008
6. Retaining your best people. Boston, Mass: Harvard
Business School Press, 2006
7. The 7 hidden reasons employees leave: how to recognize
the subtle signs and act before it’s too late, Leigh
Branham New York, NY: AMACOM, 2005
8. Improving staff retention IDS HR Studies, Feb 2008, no.
863, whole issue
9. Personnel best, Robin Evans Supply Management, 15 Feb
2007.
10. Benchmarking labour turnover 2006 part 1, Neil Rankin
IRS employment Review
11. Benchmarking labour turnover 2006 part 2, Neil Rankin
IRS Employment Review
The attached sheet of interview
QUESTIONNAIRE FOR MANAGERS AND EMPLOYEES
Direction: Please answer this checklist by ticking on the item that corresponds to your
answer or write your answer on the available space.
………………………………………………………………………………………………
Full name:__________________________
Department: ____________________________________________________
Position in the Company: q Managers q Employees
Part I: PROFILE OF THE RESPONDENTS
1. How long do you working in Vietinbank (Length of service in the bank):
q Less than 2 years q 2 years less than 4 years
q 4 years less than 6 years q 6 years above
2. What is your income?
q Less than 4 millions q 4 millions less than 6 million
q 6 millions less than 10 millions q Above 10 millions
Part II. Factors affecting labor turnover
The following statements are negative situation that maybe present in your
workplace. Rate the following using the indicators below, whether they might cause a
personnel to resign from his/her present job. Place a check (/) mark on the number
corresponding to your perceived answer;
5- Strongly agree 4- Agree 3- slightly agree 2- disagree 1 -Strongly disagree
Point
5 4 3 2 1
Questions
Training programme in Vietinbank suitable for your 25 30 10 5 0

present responsibility
Employees whose attend the training programe will be 15 18 26 10 1

pay higner salary
Lack of appopriate training 37 18 13 1 1
Once hired employees were given training in the job. 12 23 26 5 4
………………………………………………………………………………………………
Point
5 4 3 2 1
Questions
There is a regular training program for all employees. 12 23 26 5 4
Employees are given fair changes for training and 12 23 26 5 4

development.
The following types of training are present in the 12 23 26 5 4
company:
a. Simulations 12 23 26 5 4
b. Case Studies 12 23 26 5 4
c.Role Playing 12 23 26 5 4
d.Demonstration 12 23 26 5 4
e.Seminar 12 23 26 5 4
Training opportunities 10 18 22 8 12
Please use the options below by indicating a check mark (√) on the appropriate
option box provided. 1 . Always 2. Frequent 3. Sometimes 4. Seldom 5. Never
In your opinion what will be the major reason for employee leaving the existing work?
Training and development Problems
• There is an adequacy of training available for 0 0 5 45 20

the employees.
• Training is not properly and justly distributed 0 0 3 7 60
to all employees.
• Very few were sent to training. 34 14 6 6 10
• The personnel sent to training did not improve 10 25 8 7 20

in their work.
• The employee who attend so many training 8 12 30 11 9
………………………………………………………………………………………………
progamme not paid high

Part III- Relationship of training to labor turnover as perceived by:
The following questions relate to your perception regarding the training method
applied by Vietinbank HO. Put a check mark on the number corresponding to your
choice. Each number has this meaning as state below:
1 2 3 4 5
Sales Skills
Weak avg. strong
Ability to qualify customers 17 10 13 18 12

quickly
Identifying customer needs 17 10 13 18 12
Identifying customer objections 17 10 13 18 12
Overcoming customer objections 17 10 13 18 12
Closing the sale 17 10 13 18 12
1 2 3 4 5
People / Communication Skills
weak avg. strong
Listens attentively 17 10 13 18 12
Shows enthusiasm on the phone 17 10 13 18 12
Shows enthusiasm face-to-face 17 10 13 18 12
Friendly / approachable 17 10 13 18 12
Polite with customers & 17 10 13 18 12

management
Teamwork 17 10 13 18 12
Understanding customers’ POV 17 10 13 18 12
Building a rapport with customers 17 10 13 18 12
Ability to assist / train others 17 10 13 18 12
………………………………………………………………………………………………
1 2 3 4 5
General Banking Skills
weak avg. strong
Goal-oriented 17 10 13 18 12
Able to execute managerial orders 17 10 13 18 12
Skill in using the phone systems 17 10 13 18 12
Order entry skills 17 10 13 18 12
Interest in personal development 17 10 13 18 12
Understands financial goals 17 10 13 18 12

Part IV – Problems and limitations of the training program in Vietinbank
Questions on Employee Satisfaction with Training, On the following scale, circle the
number to indicate how much you agree or disagree with each statement.
Question Strongly Strongly
disagree Diagree Neutral Agree agree
1 2 3 4 5
Employees receive the training 14 13 25 18 0
necessary to do their jobs
Employees receive needed 14 13 25 18 0
training about new technologies.
Training opportunities are 14 13 25 18 0
unfairly allocated across
employees or work units
Supervisors/team leaders support 14 13 25 18 0
employee efforts to learn outside
the job (e.g., conferences, cont.
education, membership in trade
or prof. org.).
High priority is given to 14 13 25 18 0
providing appropriate training.
Overall, how satisfied are you 14 13 25 18 0
with the training you have
received at the agency
………………………………………………………………………………………………
………………………………………………………………………………………………

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TRAINING AND ITS RELATION TO STAFF TURNOVER

OF VIETINBANK HEAD OFFICE, HANOI CITY

In Partial Fulfillment of the Requirements for the subject

Doan Thi Thanh Binh (Peace)

PROBLEM AND ITS SETTING

Staff turnover, in recent years is the most concern of all managers in

Level of staff turnover in Vietinbank over years

Staff turnover over year

Source: U.S. Department of Labor, Bureau of Labor Statistics (BLS).- NOBSCOT

relationship between Training and staff turnover?

The researcher, as a Master in Business Administration candidate will benefit

is activity leading to skilled behavior.

• Image – Training and Development helps in creating a better corporate image.

b. Foundation Training: Foundation training is also appropriate for newly recruited

Selecting a Training Method:

1. Shadowing another employee

2. Seminars or workshops facilitated by a specialized, or particularly strong member

3. Coaching provided by management or other employees

With regard to tailoring it appropriately to your staff, this can be done by

Remember: learning is an ongoing process that may continue on a daily basis. If

Other factors affecting the choice of a training method include:

- Age, gender, or level of education of the trainees

- Learning styles of the trainees

- Trainer's skills and training style

Staff turnover literatures.

significant role in staff turnover.

Recruitment and induction

3. Flexible working arrangements - do you recognize your employees' changing

Training and staff development

A. Motivation - how supportive and encouraging is your business?

B. Organizational culture - what are you doing to promote an inclusive culture in

F. Effective grievance procedure - do staff know how to register a grievance and

G. Team working - do you encourage common goals and discourage unhealthy

Contracts, pay and working environment

Measuring and benchmarking turnover

Patterns of employee turnover

Examining the causes of turnover

• It is often effective to have consultations with individuals or groups of staff to

Why control staff turnover?

According to a 2003 workplace survey by CIGNA Behavioral Health (based in Eden

According to: Written by J. Beam (Last Modified: 08 January 2010) Employee

B. Review of Related studies

Rank Employees Employers

1 Stress levels (37 percent) Base pay (52 percent)

Career development opportunities (47

3 Promotion opportunity (26 percent) Promotion opportunity (45 percent)

Career development opportunities Relationship with supervisor/manager (35

5 Work/life balance (22 percent) Work/life balance (24 percent)

Costs of staff turnover

Costs can be attributed to:

• Redundancy and administrative costs associated with the leaver's

• Administrative costs associated with creating a vacancy

• Costs of covering the vacancy until it is filled

• Advertising, agency or online costs for the vacancy

• Costs involved in the selection process

• Induction and training costs

Normally, according to the CIPD report, voluntary turnover substantially exceeds

- Manufacturing - accounting for about one half of turnover

- Private services, public sector and voluntary sector - around

Training: one of the keys to reduce staff turnover

The second phase of the study is processing. In this phase, questionnaire is

b. Respondents of the study, sample size and sampling technique

* Respondent of this thesis are: