High turnover rate in skilled and experienced sale staffs at PVIS Company

Abstract

This thesis focuses on finding and identifying the problem that PVIS Company is facing and after that suggesting some adequate solutions in order to help company overcome that issue. Through the methods of observation and data collection, researcher has a holistic and objective view in order to make a proper comment of the problem the company is facing in terms of human resources. With four symptoms such as: significant fluctuation in human resource to sale staffs, high proportion of young sale staffs, increasing in qualification mismatch in insurance industry, and high working seniority from 1-5 years, the author pointed out a conclusion that the problem PVIS Company is truly facing now is high turnover rate in skilled and experienced sale staffs. There are many causes explain the problem that company faces. The first cause is the appearance of many insurance companies which lead to the situation of business dragging people of each other. The second reason is poor management and then low compensation and low promotion opportunities are also the causes lead to high turnover rate in skilled and experienced sale staffs. Moreover, besides some causes the author got from the interviews with sales staffs and managers at the company, there are other causes mentioned in the literature like poor working environment, and poor training and development. However, after conducting in-depth interview as well as making the research and identifying carefully, the researcher realized that there are only one central problem lead to high turnover rate in skilled and experienced sales staffs at PVIS company, that is low compensation and benefit packages and any other cause be ignored. From that, the researcher only concentrate to find out the solution related to compensation and benefit packages in order to help the company reduce the high turnover rate. There are two solution suggested to solve this problem. The first one is about direct compensation (or monetary solution), increase basic salary and build incentives and bonus scheme. The second solution is about other supports and benefits include leaves, allowance, company trip, or birthday party organization. However, through the interview and survey of researcher, nearly 100% of employees in the company have the desire of increasing salary and receiving an adequate commission or bonus. Therefore, the solution related to build a base salary increase policy and performance bonus seems to be the best choice for PVIS in keeping the talents staying with company for a long time and reduce the high turnover rate situation.