Step 1: Implement the performance evaluation of individuals and departments. This activity is carried out according to the company's evaluation regulations. At the beginning of the period, companies/department heads assign plans and targets to subordinate departments and individuals. During the period, managers provide support, guidance, and collect information to serve the evaluation. At the end of the period, according to the prescribed process, the evaluation participants conduct the evaluation, then synthesize the results and transfer them to the Administration - Synthesis department to use the results.
Step 2: Use the results of the job performance assessment to pay salaries, bonuses, allowances, and benefits. Compare with the established plan, program, and company regulations. The Administration - Human Resources Department will pay salaries and bonuses, etc. In case of any problems or errors, there will be coordination with related departments to promptly handle and adjust.
As for non-financial motivational plans and programs, the organization and implementation are carried out according to the characteristics of each specific program (details are presented in section 2.2.1 above).
Employees' assessment of their satisfaction with the company's motivational programs and plans is reflected in several key criteria such as average labor productivity, employee satisfaction, and employee engagement (details in section 2.4 below).
However, according to the interview results, many employees at the company reflected that the evaluation criteria mainly focused on evaluating direct production workers, team leaders, and workshop leaders, but had not yet provided separate evaluation criteria for the company's office staff. Therefore, the rate of employees who were not satisfied with the work performance evaluation was relatively high.
2.2.2.4. Current status of evaluating work motivation results at the Company
Currently, at Son Ha Garment Joint Stock Company, the company has conducted an assessment of the results of creating motivation for employees. However, this activity has not been implemented systematically.
This activity is mainly carried out in two ways: periodically and ad hoc. The ad hoc case is carried out when there is feedback from employees about errors in implementing motivational programs (incorrect or insufficient calculation of salaries, bonuses, etc., or errors in organizing non-financial motivational programs). The periodic case is usually carried out on a yearly cycle, when drawing experience from activities carried out during the year by the Administration - Human Resources department. Or when the company restructures, periodically reviews, updates, and builds new salary and bonus regulations, etc.
2.3. CRITERIA FOR ASSESSING EMPLOYEE MOTIVATION IN SON HA GARMENT JOINT STOCK COMPANY
2.3.1. Average labor productivity, work quality
Labor productivity is an indicator to measure the efficiency of labor use, and also reflects the quality of work of employees at the company. The issue of increasing labor productivity to have other financial incentives is an urgent issue for any business. To evaluate the productivity, quality and efficiency of employees at Son Ha Garment Joint Stock Company, the author conducted a survey of employees working, the survey results are as follows:
Table 2.11. Survey results on the level of work completion of employees at Son Ha company
Unit: person
STT
Question | Level | Total | ||||
Completely Agree | Copper idea | Jar often | Are not Agree | |||
1 | Complete work ahead of schedule | 103 | 85 | 8 | 4 | 200 |
2 | Always ensure job requirements | 92 | 84 | 15 | 9 | 200 |
3 | Complete tasks with high efficiency | 88 | 95 | 7 | 10 | 200 |
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Source: Author's survey results
The survey results show that 52% of employees strongly agree and 43% agree with completing work ahead of schedule; 88% agree and strongly agree with the criteria that the work they do always meets requirements; 44% strongly agree and 47.5% agree with the criteria that tasks are completed with high work efficiency. Son Ha Garment Joint Stock Company has many stable positions, long-term commitment, experience and good working skills, so completing ahead of schedule and ensuring labor productivity of the majority of employees in the company is understandable. However, due to the company's need to expand and develop, there are also many new employees who are not familiar with the work and how to operate machinery, so 5% feel that they have not completed their tasks with high work efficiency.
2.3.2. Level of employee satisfaction at work
The level of satisfaction of employees is considered one of the measures of success in creating motivation for employees. To measure the level of satisfaction of employees, the author conducted a survey of 200 employees of Son Ha Garment Joint Stock Company. The survey results are as follows:
Table 2.12: Survey results on employee satisfaction
STT
Question | Level | Total | ||||
Completely Agree | Agree | Normal | Disagree | |||
1 | Understand and be satisfied with your work | 20 | 92 | 77 | 11 | 200 |
2 | Satisfied with current income me | 36 | 110 | 40 | 14 | 200 |
3 | Satisfied with performance appraisal results | 7 | 28 | 140 | 25 | 200 |
Source: Author's survey results
Survey results show that: With the criterion "understand and be satisfied with your job", up to 56% agree and completely agree. Regarding the criterion "satisfied with the
53% of employees agreed and completely agreed with their income, 40% of employees felt normal with the current income paid by the company. This shows that although the company's salary policy is well applied, it is only at a normal level, not creating strong motivation for employees. 70% of employees felt normal and 13% disagreed, feeling unsatisfied with the results of the job performance assessment. The above survey results have assessed the current status of the policy to create motivation for work at Son Ha Garment Joint Stock Company. The results of the job performance assessment are not really good, not highlighting the effect of stimulating the spirit for employees. The company has a fairly good salary policy, however, there is no specific regulation on salary increase, but it is mainly assessed by superiors.
2.3.3. Employee engagement level
Employee commitment to the organization/enterprise is one of the basic criteria to measure employee motivation. Because when an employee decides to stay with the enterprise for a long time, it means that they love their current job and want to develop with the enterprise. To find out the indicators of employee commitment in Son Ha Garment Joint Stock Company, the author conducted a survey and the results are as follows:
Table 2.13: Results of employee engagement survey
STT
Criteria | Level | Total | ||||
Complete totally agree | Agree | Normal | Disagree | |||
1 | Always trust your superiors | 46 | 61 | 81 | 12 | 200 |
2 | Continue working long term at the company under current conditions | 42 | 108 | 40 | 14 | 200 |
3 | No intention of moving go to a place with better treatment | 58 | 67 | 59 | 16 | 200 |
Source: Author's survey results
From the survey results in Table 2.11, it can be seen that some indicators are quite well evaluated: 30.5% of the surveyed people agreed and 23% completely agreed with the question "I always trust my superiors"; 54% agreed and 21% completely agreed with "Continue to work long-term at the company with current conditions". 33.5% agreed and 29% completely agreed that they had no intention of moving elsewhere even if there was a better treatment.
2.4. ANALYSIS OF SOME FACTORS AFFECTING MOTIVATION FOR EMPLOYEES OF SON HA GARMENT JOINT STOCK COMPANY
2.4.1. Factors belonging to the company's internal environment
a. Company's development goals and orientation
The company's goal is to create a friendly working environment, build appropriate policies to encourage employees to work actively, improve work efficiency and stay with the company for a long time.
By always considering employees as the core of the enterprise, the foundation for the development of the enterprise, the company's leaders have paid great attention to ensuring the lives of employees. The company's leadership considers compensation as an investment for development and is always ready to invest in financial compensation to bring the highest efficiency. Therefore, the company regularly pays attention to building a reasonable form of salary, building diverse forms of bonuses and bonus levels as well as offering competitive welfare programs, suitable to the characteristics and production and business situation of the company.
The company also has a policy and management perspective that is to attract talented people to work in the company. They will have a great compensation policy for talented workers, even paying much higher than the market price of that type of labor.
b. Financial capacity of the company
Finance is an integral part of the economic activities of a business. It has a close relationship and interacts with economic activities.
other. The financial capacity of the organization will have a significant impact on the activities of motivating employees in general and Son Ha Garment Joint Stock Company in particular. First of all, it is necessary to evaluate the overall performance of the company's production and business in recent years in order to analyze the specific impacts on the company's financial capacity.
Some of the main business activities of Son Ha Garment Joint Stock Company in the past 5 years are shown in figures through indicators of revenue, profit, and average income per capita.
Table 2.14. The company's production and business performance results in the period 2015 - 2019
Target
Unit | 2015 | 2016 | 2017 | 2018 | 2019 | |
Revenue | Billion VND | 1488 | 1532 | 1624 | 1753 | 1898 |
Profit before tax | Billion VND | 78 | 90 | 103 | 119 | 141 |
Profit after tax | Billion VND | 68 | 77 | 88 | 104 | 125 |
Average income per capita | Million VND/month | 3.4 | 3.8 | 4.2 | 4.5 | 5.0 |
Source: Company's business performance report from 2015-2019
Through Table 2.12, we can see that the company's revenue and profit are quite high and have been continuously increasing over the years. The highly effective production and business activities create conditions for the company to have a source of funding to implement better salary, bonus and welfare policies, motivating employees to work enthusiastically, improving labor productivity and work quality. However, Son Ha Garment Joint Stock Company is choosing practical and cost-saving activities, so the motivational activities are not rich and diverse. Moreover, in the current period, the town has attracted a lot of businesses to invest in activities, especially garment enterprises. This leads to strong fluctuations in the textile and garment labor market. In order to retain employees for a long time,
In order to develop the company and attract a team of skilled workers, Son Ha Garment Joint Stock Company's financial compensation system must be adjusted to suit the situation, ensuring a stable source of salary and ensuring the lives of employees, while having bonus policies and practical welfare programs to attract and encourage them to stay with the company for a long time.
c. Labor quality at the company
The company has strengthened management, improved the quality of its staff and invested in modern equipment, so the number and proportion of trained workers have tended to increase gradually, which is completely reasonable. This is an important factor to improve the company's production and business efficiency, demonstrating the company's focus on gradually improving the quality of its workforce.
Unskilled workers account for the highest proportion of the total number of employees in the company. In 2017, this group accounted for 52.37%, but in the following two years, there was a downward trend in both quantity and proportion. Specifically: In 2018, the number of unskilled workers was 1,072, a decrease of 78 compared to 2017 (equivalent to 6.78%). In 2019, this number was 1,012, a decrease of 60 compared to 2018 (equivalent to 5.60%). Moreover, the number of workers with intermediate or higher training tends to increase. The number of workers with intermediate and college degrees accounts for the second largest proportion after the group of unskilled workers. This group has tended to increase in the past 3 years, from 890 people in 2017 to 926 people in 2018 and 932 people in 2019. In addition, the number of employees with university and post-university degrees accounts for a low proportion and has also tended to increase gradually in the past 3 years, specifically: from 156 people in 2017 to 170 people in 2018 and 179 people in 2019. Thus, the workforce in the company is gradually improving in terms of professional qualifications. The number of unskilled workers has decreased significantly over the past three years, while the number of employees trained from intermediate, college, university and post-graduate levels has gradually increased.
In a fiercely competitive market economy, in order to ensure production and business efficiency as well as enhance the company's competitiveness, high demands on product quality as well as employee quality are inevitable.
To attract and retain high-quality employees, the company needs to develop a reasonable motivation plan and program, and there needs to be clear changes in salary, bonus, and benefits, corresponding to the level of training and actual work performance. In addition, the company also needs to pay attention and create opportunities for employees to try to study and improve their professional qualifications and skills, thereby receiving higher remuneration.
d. The existence and development of grassroots unions at the company
According to Article 4 of the Law on Trade Unions issued in 2012: “A grassroots trade union is a grassroots organization of a trade union, gathering union members in one or several agencies, organizations, and enterprises, recognized by the direct superior trade union according to the provisions of law and the Charter of the Vietnam Trade Union”. From the definition of a grassroots trade union, we can see the role of the organization in representing employees in protecting the rights and interests of employees at the company.
Currently, the company has established a grassroots trade union with 200 members. The company always pays attention, focuses on and creates the best conditions for building and maintaining trade union activities. Every month, the company organizes meetings between company leaders and trade unions to discuss issues related to employees, promptly acknowledge the achievements, and at the same time find out the remaining problems, the causes of those problems and propose solutions so as not to affect the spirit and psychology of employees as well as the overall production and business efficiency of the company. The trade union officers are all elected by employees in the company every year and are usually employees who have completed their work excellently and have a good sense of organization and discipline.
Activities such as successfully negotiating an increase in the minimum wage to ensure workers' livelihoods, negotiating to reduce overtime hours, proposing to expand the scope of insurance participants, increasing social insurance, health insurance, unemployment insurance contributions for workers, etc. as well as launching many programs to visit and give gifts to workers and their families on major holidays, caring and sharing with families in difficulty, and policies are activities that the grassroots trade union is currently receiving.