Employee’s Perception of Retention Factors in Small and Medium Enterprises (SME) in Ha Giang

Abstract

In the increasingly competitive business environment and the globalization trend, employee retention has proved itself to be one of the key human resources management practices in Vietnamese enterprises. The aim of this thesis is to study how employee retention factors are perceived by employees and to clarify their uses in small and medium sized enterprises in retailing sector. The data was collected by survey questionnaires in three small and medium sized enterprises in HaGiang. With reference to current literature on employee perception of retention factors and commitment, the study examines key determinants related to staff motivation and engagement. The findings propose that financial compensation tends to generate positive perception and performance. It deems that both employees and management share a common viewpoint on the importance of financial compensation in addition to career development factor. In conclusion, the common ground of staff and managers on the role of retention factors seems to be relevant to the context and possible achievements. On the basis of the research, it is possible to assume that the findings can also be valid for other industries with highly qualified labor and are thus applicable for small and medium sized enterprises in Vietnam.