Name: Lê Bích Lê ID: 31221020077
Employee Retention Strategy for Trung Nguyên Company
1. Introduction to Trung Nguyên Company
1.1 Development history, vision, mission, business objectives, and financial
situation
Trung Nguyên is one of the leading business conglomerates in Vietnam, specializing in
the production and trading of products related to the coffee and beverage industry. Trung
Nguyên is well-known for its high-quality and diverse coffee products, ranging from ground
coffee to instant coffee, as well as traditional Vietnamese-style drip coffee. Additionally, this
brand has expanded into other beverages such as tea and cocoa. In the field of coffee
production, processing, and trading, the Group has flagship products such as premium Trung
Nguyên coffee (including Weasel coffee, Legendee Weasel coffee, and the innovative 8
Coffee), ground coffee, pure coffee beans, G7 instant coffee, and fresh coffee. To date, Trung
Nguyên's products have been exported to over 60 countries worldwide, including the United
States, Canada, Russia, the United Kingdom, Germany, and Japan. Established in 1996 in Buon
Ma Thuot, Trung Nguyên quickly expanded its operations and became one of the most beloved
coffee brands in Vietnam. With high-quality products and a wide distribution network, Trung
Nguyên not only dominates the domestic market but also expands into international markets.
Since 2018, Trung Nguyên's vision has been "To become a great organization through
community service for humanity." The spirit of community service has always been the guiding
principle for all activities of Trung Nguyên Legend throughout its 25 years of establishment
and development. With a strong determination demonstrated through practical activities for the
community, Trung Nguyên affirms its absolute commitment to serving the interests of society
and the community, with unanimous support from all individuals within the organization. From
the perspective of an organization, serving is a balance between contributing to the community
and the nation's interests with economic benefits. Regarding the financial situation in recent
years, thanks to improvements in business operations and market expansion, there have been
signs of recovery and growth in Trung Nguyên's financial situation. However, post-tax profits
have fluctuated, so by 2022, due to a decrease in financial revenue and the emergence of short-
term financial debts and tax liabilities, Trung Nguyên's profits decreased.
1.2 Organizational structures; HRM policy and practice
Organizational chart of Trung Nguyên company:
Board of
Directors
Human Director of Director of
Resources Domestic International Finance Director Factory System
Director Business Center Business Center
Human resources policies are an integral part of managing personnel in any enterprise,
and Trung Nguyên Company is no exception. The human resources policies of Trung Nguyên
Company are designed to create a positive work environment and encourage employee self-
development. The company not only invests in developing individual skills and capabilities
through training programs and workshops but also provides opportunities for career
advancement for employees. Attractive welfare policies, such as comprehensive health
insurance and travel opportunities, along with flexible working policies, such as remote work
and flexible leave, help create a balance between work and personal life for employees.
Additionally, Trung Nguyên Company always adheres to regulations regarding labor ethics
and occupational safety, ensuring a safe and healthy work environment. All of these contribute
to fostering a united community of employees committed to the company's mission and values.
1.3 Analyzing the management problem. This should focus on the following
content to depict the importance of the retention strategy:
• Compensation and benefits:
Compensation and benefits play an extremely important role in retaining employees
within an enterprise. A competitive compensation along with good benefits not only helps
attract talent but also retains talented individuals within the organization. At the same time,
employees feel valued through competitive compensations and benefits, leading to increased
stability and commitment to the organization. Additionally, it contributes to building a positive
image of the organization, attracting attention from both within and outside the community of
employees. However, there is an issue as some former employees of Trung Nguyen company
still report delayed salary payments of several months, leading to dissatisfaction among
employees working within the company.
• Professional development opportunities
In addition to compensations and benefits, professional development opportunities also
play a crucial role in retaining employees. Similar to compensation and benefits, this is a
motivating factor that fosters commitment from employees because they feel recognized and
invested in their personal growth. Some share the belief that advancement opportunities in the
workplace are still not as high as in other private enterprises. Issues regarding promotion and
salary levels for various employee tiers remain prominent in large corporations. Despite
significant career prospects in certain fields, advancement is often constrained by complex
organizational structures and cumbersome management processes.
• Work-life balance
The balance between work and life plays an undeniable role in retaining employees
within an organization. When employees can maintain a healthy balance between work and
personal life, they tend to be happier and more productive. The company promotes work-life
balance by providing flexible work policies and time-off options. This may include remote
work capabilities, flexible scheduling, and offering flexible vacation days. Employees are
encouraged to use their time off to rest and recharge, helping them maintain a positive and
productive work attitude. Additionally, Trung Nguyên Company invests in the health and
happiness of its employees. This may involve providing healthcare services, comprehensive
health insurance, and preventive health care programs. They may also offer physical and mental
activities such as yoga, lunchtime exercise sessions, or stress management and life balance
workshops.
• Organizational Culture
A positive organizational culture not only creates a comfortable and motivating work
environment but also promotes personal development and employee satisfaction. When
employees feel respected, recognized, and supported, they tend to be more engaged with the
organization and want to stay to develop their careers. Support and encouragement from the
organizational culture help build loyalty and commitment from employees, creating a positive
and dynamic work environment. Additionally, when an employee feels satisfied with the work
environment and receives support from the organization, they are often inclined to stay and do
not need to seek new opportunities. This helps the business maintain stability in its workforce
and optimize labor productivity, contributing to the long-term development and success of the
organization.
2. Retention Strategy Implementation
2.1 Re-evaluate compensation and benefits
In Trung Nguyên Company's human resource management strategy, providing an
attractive salary and benefits package for employees is an indispensable part. This policy aims
not only to attract and retain talent but also to promote their satisfaction, commitment, and
productivity. The company is committed to offering a competitive salary that accurately
reflects the contribution and skills of each employee. Furthermore, comprehensive welfare
policies such as health insurance, appealing bonuses and incentives, along with flexible policies
regarding leaves and holidays, help create a safe, comfortable, and supportive work
environment. In this way, Trung Nguyên Company not only creates favorable conditions for
personal development and employee happiness but also contributes to the success and
sustainable development of the organization. Howerver, one proposal being put forward is for
the company to pay more attention to timely salary disbursement to prevent employee
dissatisfaction.
2.2 Provide consistent development opportunities
Trung Nguyên Company prioritizes providing consistent development opportunities for
its employees. This is reflected through investing in training programs and workshops aimed
at enhancing the skills and capabilities of each individual. From specialized courses to practical
workshops, employees are encouraged and supported to develop themselves and advance their
professional expertise. Furthermore, Trung Nguyên Company offers career advancement
opportunities, ensuring that employees have the chance to grow within the organization.
Through internship programs, mentoring, or advanced training courses, employees can develop
and progress further in their careers. Trung Nguyên Company needs to regularly review and
assess the skills and capabilities of its employees to reward them for progress, thus avoiding
overlooking potentially talented but unnoticed employees, thereby providing them with
opportunities for development.
2.3 Enhance work-life balance, and also employee happiness and health.
To create the best working environment, Trung Nguyên may consider implementing
programs such as flexible working hours, remote work options, and healthcare initiatives. In
doing so, the company would provide conditions for employees to maintain a healthy work-
life balance. Having flexible working hours and remote work options would help employees
manage their time more effectively, reducing stress and enhancing productivity. Remote work
isn’t just convenient to reduce the spread of disease, but has been shown to make employees
happier and more productive at work. With modern technology, working entirely (or even
partially) from home is possible in a vast array of industries. By creating a work environment
that prioritizes work-life balance and cares for the health and happiness of its employees, Trung
Nguyên Company not only fosters personal development but also promotes employee
commitment and satisfaction. This helps cultivate a positive, creative, and dynamic work
environment, contributing to the overall success of the company.
2.4 Create a positive organizational culture
Before fostering a positive culture, it's crucial to assess and recognize the existing
company culture. As a business leader, the company’s perception of organizational culture may
differ significantly from that of employees. Engage in open discussions with employees from
various departments to identify the current company culture. If further clarity is needed,
consider hiring a consultant. Trung Nguyên company also implements an Employee Incentive
Program, providing special benefits policies for employees regarding Trung Nguyên's coffee
products and other company products. This provides favorable conditions for employees to
enjoy Trung Nguyên's quality products and feel appreciated and cared for by the company.
Furthermore, Trung Nguyên regularly organizes reward and incentive programs to honor and
motivate employees during their work. These programs not only enhance work morale and
commitment to the company's common goals but also demonstrate fairness and recognition of
employees' contributions, thereby creating a motivating and developmental work environment.
3. Conclusion
3.1 Short-term benefits
In an enterprise like Trung Nguyên, implementing employee retention policies brings
many short-term benefits not only to the company but also to the employees. These benefits
not only strengthen the relationship between the company and its employees but also create a
positive and developmental work environment. First and foremost, retaining employees
through well-designed incentive and welfare policies can create a conducive and attractive
work environment. These policies not only help retain current employees but also attract new
ones. For example, providing benefits packages such as health insurance, healthcare, and
flexible leave programs not only make employees feel cared for but also create an attraction
point for newcomers to join the company. Another short-term benefit of employee retention is
enhancing employee commitment. Recognizing and motivating employees through reward and
incentive programs help foster short-term commitment and loyalty to the company. Employees
feel valued and see that the company cares about their personal development, thus creating
greater motivation to work efficiently and contribute to the company's overall goals. Moreover,
a positive and supportive work environment also enhances short-term work performance.
When employees feel satisfied and committed to their work, they tend to work more efficiently.
This not only brings short-term benefits to individuals but also contributes to the overall
success of the company.
3.2 Long-term benefits
One of the most notable long-term benefits of employee retention is the ability to retain
talent. A stable team of employees not only helps the company maintain stability in its business
operations but also lays the foundation for long-term development. Trained and experienced
employees not only save the company time and training costs but also provide long-term value
through their deep understanding of processes and job requirements. Furthermore,
implementing employee retention policies also plays a crucial role in enhancing the company's
image. A company with positive HR policies creates a good impression of the work
environment and commitment to employees. This not only attracts new employees but also
retains current ones by creating a positive and reliable work environment. Moreover,
developing a sustainable work environment is also a long-term benefit of employee retention.
A positive, encouraging, and supportive work environment not only makes employees feel
happy and satisfied with their jobs but also creates a foundation for their future development
and success. Employee retention policies not only create a positive work environment but also
help build a strong and cohesive employee community, thereby enhancing work productivity
and the sustainable development of the company.
3.3 Managerial note
In recent times, employee retention has become a top priority for the sustainable
development of our company, Trung Nguyên Company. Recognizing the challenges of labor
shortages and high turnover rates, we need to find long-term solutions to retain and attract
talented employees. To achieve this, we need to focus on increasing salaries and benefits,
providing opportunities for professional development, promoting work-life balance, building a
positive organizational culture, and strictly adhering to labor ethics and safety principles. By
implementing these strategies, we will not only create a positive and attractive work
environment but also promote employee satisfaction, commitment, and productivity. This will
contribute to the success and sustainable development of Trung Nguyên Company in the future.
4. References
1. https://tuoitre.vn/giu-chan-nhan-vien-la-nghe-thuat-quan-ly-
20230728154218094.htm
2. https://xhunter.vn/10-cach-giu-chan-nhan-vien-hieu-qua-cho-doanh-nghiep/
3. http://tailieuso.udn.vn/bitstream/TTHL_125/5971/2/LeThiThuyNgan.TT.pdf
4. https://www.linkedin.com/pulse/chinh-sach-dai-ngo-nhan-vien-cua-trung-
nguyen-xcvtc
5. https://www.studocu.com/vn/document/truong-dai-hoc-thang-long/quan-tri-
kinh-doanh/co-cau-to-chuc-cua-cong-ty-co-phan-tap-doan-trung-nguyen/43106643
