The poor motivation of store manager level at Pizza Hut Vietnam

Abstract

Employee’s turnover rate is one of business challenge in organizations. The high turnover rate has negative impacts on business performance such as more expenses to recruiting, increasing people cost, bad company reputation, reducing revenue as well profit and so on. In Pizza Hut Vietnam (PHV), the turnover rate of store manager level has increased significantly from 2014. This rate is non-stopped increasing with 17.2% at June 2017 that is highest since PHV join to food and beverage market in Vietnam in 2007. This leads to PHV’s low performance in terms of key performance indicators in consecutive three year such as decreased balance score card, unstandardized customer satisfaction and increased people cost for recruiting and training. Through this research, some potential problems of turnover rate were pointed out such as uncompetitive compensation package, unavailable career development opportunity, job stress and poor leadership. One of these potential problems is poor job motivation that has been argued as a central problem of high turnover rate at store manager level at Pizza Hut Vietnam Ltd., Poor job motivation in this researcher is presented in terms of ineffective supporting and coaching as well as weak recognition and poor communication. The importance of job motivation improvement also demonstrated through exploring its consequences to individual and organizational performance.