The cause of high turnover rate workers at CPV Food Binh Phuoc

Abstract

This thesis investigates the primary causes of the high employee turnover rate at CPV Food Binh Phuoc, a major poultry processing subsidiary of CP Vietnam Corporation. The study identifies an alarming annual turnover rate of 35% in 2023, significantly exceeding the industry average of 20%, with the Slaughterhouse department experiencing a critical rate of 62.8% from August 2024 to May 2025. The research employs a comprehensive mixed-methods approach. The internal data collection was conducted in two phases: first, through company-wide surveys distributed to all workers and management levels to identify potential pain points; second, via in-depth interviews with key stakeholders (senior managers, HR, department heads, and former employees) to validate symptoms and explore root causes. To contextualize the findings and eliminate compensation as the primary factor, the study incorporated external benchmarking. This involved collecting data on industry and regional standards through official channels, including reports from the Binh Phuoc Provincial Department of Labour, Invalids and Social Affairs, and direct collaboration with HR departments of peer companies in the poultry industry and other manufacturing firms within the local industrial zone. A comparative salary analysis was constructed, controlling variables such as seniority, work environment, and job conditions, to objectively assess CPV Food Binh Phuoc's competitiveness in the local labor market. The integrated findings reveal that while compensation is relatively competitive, ineffective communication and poor managerial practices constitute the central problem, accounting for 60% of resignation reasons. Contributing factors include a lack of communication skills in supervisory staff, excessive working pressure due to surging export demands leading to unsustainable overtime, and an ineffective communication atmosphere exacerbated by noisy environments and limited interaction spaces. While unsafe working conditions (19%) and overtime without adequate rest (17%) are significant hygiene factors, they are secondary to the leadership and communication deficit. Guided by Herzberg’s Two-Factor Theory and Maslow’s Hierarchy of Needs, the analysis concludes that the root cause is a deficiency in supervisory emotional intelligence and communication competence. To address this, the thesis proposes and evaluates two alternative solutions: 1. Internal Communication Training Workshops, and 2. a comprehensive Professional Emotional Leadership Training program incorporating 360-degree feedback and ongoing coaching. After a cost-benefit analysis, the latter solution is recommended as the most effective and sustainable intervention to foster a culture of empathy, improve supervisory skills, and ultimately reduce turnover. The implementation of the Professional Emotional Leadership Training is projected to enhance employee engagement, improve communication efficiency, and significantly reduce the Slaughterhouse turnover rate by 40% by the end of 2025. This strategic investment aims to stabilize operations, reduce recruitment and training costs, and secure CPV Food Binh Phuoc’s competitive position in the poultry industry. The complete thesis comprises 66 pages of analysis, findings, and proposed solutions.