[FULL ACCESS] Talent Management Challenges in Coffee Industry

This assignment explores talent management challenges in the coffee industry, including employee turnover and retention strategies. It delves into the factors affecting talent turnover intention, such as pay, promotion, learning opportunities, and job quality. The assignment also examines challenges in raising salaries for talented employees and providing professional training sessions for them. Furthermore, it discusses challenges in promoting talented employees to higher positions. The assignment provides a comprehensive overview of talent management in the coffee industry.

MSBP E-PORTFOLIO
I. LITERATURE REVIEW:
1. What is talent?
According to (Ulrich & Smallwood, 2012), talent is someone with a combination of
competency (knowledge and skill), willing to do the job and contribute to the job
(finding the purpose and meaning of the job). In addition, (Silzer & Dowell, 2009) adds
talent who is also attached to the business for a long time. According to (Smart, 2005),
talents are high performers, deliver higher-quality work.
2. What is talent management?
According to (Vlad Vaiman, 2012), talent managerment is the process of recruiting,
selecting, developing and retaining the best employees. In addition, one main purpose
of this process is to increase the productivity of talents by designing and applying
talent retention strategies (Kontoghiorghes & Frangou, 2009).
3. Talent retention:
Talent retention is a process that aims to keep talented employees engaged in their
businesses through appropriate compensation and benefits, promotion, training, job
quality and opportunities policies (Florida, 2002)
There are many studies showing that employee turnover has a negative impact on
organizational performance. Ways that have been used to test how employees turnover
impact an organization include sale growth (Batt, 2002) customer service quality and
profit (MICHELE KACMAR, 2006). Although there are a few studies showing no
impact of employee turnover on firms (Koslowksy, 1989), but in general most studies

suggest that employee turnover is an influencing factor that damages operational
efficiency of the businesses.
Some common issues causing staffs turnover are: pay, promotion, training and job
quality:
Pay (Compeansations and benefits):
(Pizam & Thornburg, 2000) argued that pay is an important factor to increase employee
commitment to a company and to minimize turnover intention. However, a number of
other studies contradict assumptions about the importance of wages to employee
turnover. (Mohsin, et al., 2013) argued that salaries do not have an impact on turnover
intention, this study shows that people who work in hospitality sector are more
interested in career development than salary. This observation was supported by
(Iverson & Deery, 1997)that salary is only a small factor leading to turnover intention.
Promotion:
(Qiu, et al., 2014) stated that promotion has a great impact on promoting work
motivation and keeping employees engaged with the business. This study explains that
employees are more willing to quit their jobs when they feel they don't have
opportunities for job advancement, which is supported by (Shapka, et al., 2016).
In another study by (Moncarz, et al., 2009) pointed out that promotion only affects
employees at management level, employees with short-term career decisions often do
not pay too much attention to promotion.
Training:
There are many studies that agree that training plays an important role in retaining
talent, increasing motivation and job satisfaction, this argument holds true for almost
every job and position in the job (Choi & Dickson, 2009). (Chiang, et al., 2005) pointed
out that employees tend to leave businesses without learning opportunites to develop
their own skills.

Job quality:
Employees tend to change jobs when they have to do a simple job with no challenges
(Yang, et al., 2012)
Another factor in the term of job quality mentioned that can increase turnaround
intention is the flexible working hour. Flexibility of working hours affects work-life
balance and influences the decision to quit (Blomme, et al., 2010).
However, (Kim & Jogaratnam, 2010) argue that job quality only affects job satisfaction,
not staff turnover. This study was conducted with young participants and therefore
lacks objectivity from other age groups.
4. What challenges occur in talent retention?
limited business finance:
(challenge in raisin salary)
According to (Chan & Kuok, 2011), One of the difficulties that businesses face
when raising salaries for employees is that business may not have the funds available
to give employees a raise in salary. Raising salaries for some individuals can create
envy among employees (Campbell, 1993)
assessing performance:
(challenges in raisin salary, promotion)
According to (Baker, 1992), very few jobs have an objective performance
assessing. Especially in the hospitality industry, when an individual is assigned to
evaluate the performance of other employees, it is highly likely that subjective factors
will appear in the evaluation process. Concerns about some employees being closer to

the evaluator, or a personal aversion to others, make it difficult to identify good
employees (Sanchez & Levine, 2012)
Assessing potential (challenges for promotion)
It is even more difficult to judge someone as being able to take on a higher
position they have never done before than to judge their performance. The high
performance in their current role is often a factor in determining whether a person can
take on a higher position (Martin & Schmidt, 2010). However, there are many other
factors to consider, for example a good employee can do their job well within the
scope of an employee's position, but to be promoted to a higher position requires them
to have. leadership skills, case solving, teamwork skills (Wayne & Herman, 2008).
Making the wrong decision when promoting an employee can reduce the motivation
of other talented employees to work because they think they are more worthy.
Training:
According to the interview with the hr managers of 4 companies in the coffee
shops sector, the training did not meet the needs of some talented staffs. talents require
to have professional training session about coffee to develop their barista skills. (Hung,
2020)
However, the 4 selected companies do not go towards professional coffee shop model,
but focus on commercial. Therefore, too careful training in the barista skills is not
necessary, but should focus on service training. Some managers have proposed to
offer barista skills training courses for employees but did not get the consent of other
managers and senior leaders (Hien, 2020). The reality shows that barista trainings do
not bring more profits for businesses, the business is still operating well and needs to
focus more on services.
II. METHODOLOGY:
1. Research questions:

a, What are the factors that influence the turnover intention of talent?
b, What challenges do coffee shop sector businesses face in talent retention?
2. Research design:
a, Sampling size:
The research was conducted with 4 large-scale and reputable companies in coffee
shop sector which are Highlands coffee, The coffee house, Trung Nguyen legend and
Cong coffee.
The study was conducted with the participation of 28 people from 4 selected
companies (7 from each company).
b, Sampling method:
Judgmental sampling: a strategy that deliberately selecting particular persons in order
to collect important data that others can not provide. (A.Maxwell, 1996)
-The person selected to be surveyed will be a person with a high position such as
manager, manager, or people working in the human resource department.
-.In some stores there will be more positions, for example each highland coffee branch
have a store manager who will be in charge of some HR activities. Each company will
have 7 people participating in the survey (including 1 HR manager and 6 store
managers).
c, Procedure:
Due to the complex situation of the covid-19 pandemic, research must be done online
and limit direct communication as possible. Fortunately, the epidemic has subsided, I
got in touch with 4 HR managers from 4 companies to arrange an interview about
turnover reasons and talent management. I asked them for help to contact with the

staffs that work in the HR department or in charge of some activities related to talent
retention in order to conduct an interview through an online survey.
3. Survey questionaire:
The survey is done via google form, the questions in questionaire are written based on
literature, research question and objectives of the research.
The survey consists of 11 questions divided into 2 parts:
- Part 1 (5 questions) is to know about the age, gender and position and working
experience of the participants.
- Part 2 (6 questions) is focus on how the participants define talent and their
opinion on the factors that affect talent turnover as well as the challenge that
the company faces when it comes to keeping talent in the company.
There are 2 age groups to be selected from 23 to 30 and 31 to 45. The reason for
choosing these 2 age groups is based on the interviews with HR managers of 4
companies. HR managers are usually between the ages of 31 and 45, they have long
working years as well as experience. The age group under 30 is usually store
managers and the youngest currently holding store manager positions is 22 years old.
Questionaire consists of questions about how people define talent in their businesses.
Questions are intended to find out what factors affect talents turnover. Next is the
business facing any challenges when wanting to retain their talents (solving the factors
that affect talent turnover).
III. FINDINGS:

This section contains the analysis of the data collected from the online survey. Data is
represented as charts, diagrams and tables. These figures show the reason for the
turnover of the talent as well as the challenges for businesses to deal with the these
issues.
Number of participants
Age group Male Female
22-30 11 13
31-45 2 2
Table 1: Number of participants per age group and gender
Figure 1 shows the gender and age of the survey participants. It can be seen that only
4 survey participants belong to the age group from 31-45, the rest are 22-30 years old.
The percentage of men and women in this survey is relatively equal in both age
groups.
Positions Male Female
HR manager 2 2
Store manager 11 13
Table 2: Participants’s position in the company

Chart 3: participants’s working experience
The survey has the participations of 4 HR managers from 4 selected companies,
including 2 men and 2 women. In addtion, they are all in the 31-45 age group and
have 7 to 9 years of experience in management positions. People in the 22-30 age
group are currently working as store managers and have the lowest working
experience of 2 years and the longest working experience of 4 years.
Chart 4: Participants’activities in term of talent management
Figure 4 shows the tasks the participants take on in the talent management. There are
only 6 people in charge of compensation & benefits, they are 4 HR managers and only

2 store managers are also involved in this function in talent management. More than
64.3% of participants undertook the training for the staff and most of them (96.4%)
performed the assessing performance of the staff.
Chart 5: Participants’definition of talent
When asked about what they define as a talented employee at their company, more
than half of the participants said that they are people with both professional skills and
have long-term working commitment with the company. Only a few people think that
a talented employee is someone who needs only good professional skills (8 people)
and 6 people think that a talented employee is someone who only works for a long
time at the company.
Chart 6: Average working time of talent

Figure 6 shows the time talents often spend with the business. It is easy to see that the
majority of talent will stick with the company for a period of 1 to 2 years. About
17.9% of them left the organisation after a period of less than 1 year. The special thing
is that there are no talented employees who have been working with businesses for
more than 2 years.
Chart 7: Reasons of talent turnover
According to figure 7, there are 2 main factors affect talent turnover are promotion
and learning opportunities. Up to 23 people choose learning opportunities and 24
people think promotion are the factors that has great impact on talent turnover. More
than 60% of the participants chose pay as the reason why the talent quit their jobs.
Only a few people believe that job quality is a factor influencing the employee's
decision to quit (5 people).

Chart 8: Challenges of raising salary for talent
Based on figure 8, up to 96.3% of participants said that the main reason why
businesses have difficulty in increasing salaries for talents is that the company does
not have enough finance for salary increasing. There are 7 people who think that the
challenge for businesses is the increase in salary causing envy among employees.
Only 3 people found the performance assessment is a challenge to increase salary.
Chart 9: Challenges in providing frofessional training session for talents
The data from the chart shows that nearly 90% of the participants agree that providing
professional coffee training sessions for talents is not necessary for the business. Half

of the participants said that the high cost of the training program is the challenge for
businesses.
Chart 10: challenges in promotion for talent
In term of challenge in promoting talent, all the participants choose that is because of
the difficulty in evaluating leadership skills, problems solving skill of employees
when being promoted to high positions. Only 3 people thought it was difficult to
assess the performance of talents.
Interesting findings:
When asked about the main reasons affecting talent turnover, the number of male
participants choosing promotion is more than women, 10 compared to 6 participants.
Female participants tend to choose pay as the reason for turn turnover intention. There
are 11 selections of pay from female managers and 7 from male managers.
In the challenges of increasing salary for talents, 7 people agree that raising salaries
can cause envy among employees, including 4 HR managers while the majority of
participants do not think so.
IV. DISCUSSION:

There are discrepancies between data obtained from talent turnover reason surveys
versus literature. There are similarities with the research (Mohsin, et al., 2013) that
remuneration is not the most influencing factor in turnover intention. In particular, the
employees working in the coffee shop sector are often young people and are
passionate about coffee, they are more interested in improving their skills and
experience as well as career opportunities than their current salary (Trang, 2020).
However, pay is still a significant factor in turnover intention because more than 60%
of participants believe that pay affects turnover intention of talents.
One of the leading reasons why businesses are unable to raise salaries for their
employees is because their financial situation cannot afford this (Chan & Kuok, 2011).
Data from online surveys yield results similar to the above statement. The service
industry is an industry with high turnover rates in many countries (Derrida, 2006). In
Vietnam is no exception, jobs in cafes or in the service industry are generally not
considered long-term jobs, so the income level will not be high. The average salary of
employees at coffee shops in Hanoi is 20,000VND per hour, businesses based on this
general amount of salary to pay their employees. Enterprises in the F&B sector accept
that employees will not stay with the business for long, so there is no intention to raise
salaries (Davis, et al., 2008), employees often get a raise when they have a long time
with the business and are promoted to high positions (Hien, 2020).
In term of promotion, large enterprises such as Highlands coffee and Trung Nguyen
Legend have dozens of branches across the country, so the chances for employees to
stick for a long time and be promoted to managerial positions will be high. The easiest
way to measure the potential of the talent is based on their current performance.
However, the job as a manager will require other skills of an employee. Usually an
employee with 1 to 2 years of experience will be considered for a store manager
position, the assessment is based on their current performance and whether they are
suitable for that position or not. Talent will have a managerial probation process to
know if they are suitable before they are officially promoted. Promotion based on

talents’s current performance to predict future management potential is uncertain,
there are many employees who have not been able to get promoted after the probation.
Talented staffs in the coffee shop sector have a requirement to learn and improve their
knowledge of coffee and their barista skills. However, this is very difficult to meet
because this is the need of a small number of talents, moreover it does not help the
businesses. In Vietnam, coffee culture does not pay much attention to the quality of
the drinks, but service and space are the top priority. So big businesses often focus on
training their employees in the service sector instead of in-depth knowledge of coffee.
That is the reason why nearly 65% of managers have training duties but cannot meet
the learning needs of the talent, because they focus on services, not coffee. So the
requirements to provide intensive training programs on coffee are often rejected and
this has a great impact on talent turnover intention.
Both in the interviews and in the survey, the HR managers think that the salary
increase could cause envy among the employees. The reason for this, they believe that
the talent performance evaluation process often lacks objectivity. The person who
directly evaluates the performance of talents are store managers, HR managers do not
regularly evaluate talents themselves, but will receive the performance reports of each
person provided by store managers. After receiving the performance reports of each
person, HR managers will go to the branch and directly evaluate the performance of
employees in any one shift. They will then consider whether this person is suitable for
a promotion or salary increase or not. This process is often considered for employees
who have worked for about 1 year and have good performance. However, subjective
evaluations may be encountered, with some employees being favored for a variety of
reasons, such as having a good relationship with store managers. HR managers believe
that employees who have a good relationship with store managers are often promoted
to raise salaries or move to higher positions (Nguyen, 2020). This creates inequity with
other talents and makes them feel less motivated to work and leads to the decision to
quit (Collings, et al., 2017).

V. CONCLUSION AND RECOMMENDATIONS:
Conclusion:
The aim of the study is to clarify the challenges that businesses face in retaining talent
in the company. The online survey was conducted in 1 week with the participation of
28 for findings and discussions purpose.
Based on the results of the survey, we can conclude that there are two main issues
affecting the employee's decision to turnover: the promotion and learning
opportunities. Most of the talented employees leave after about 1 to 2 years working
in the company, after which they tend to find a workplace that meets their individual
needs. Other issues such as pay also influence the turnover intention of talents with
more than half of the participants agree on this.
Meeting the salary and bonuses that employees want to face has some limitations such
as: the business cannot afford to pay, the increase in salary and bonus can cause an
imbalance in the salary fund. For learning opportunities, businesses cannot offer
professional training programs for the needs of some talented employees because it is
not nessesary, it does not meet the demands of customers.
Những quản lý nam có xu huớng lựa chọn promotion là lý do của talent turnover
nhiều hơn là nữ trong khi những quản lý nữ thường lựa chọn lý do là pay. Các HR
manager nghĩ rằng việc tăng luơng có thể gây ra sự không công bằng giữa các nhân
viên do assessing talents’s performance có thể mang tính chủ quan.
Male managers are more likely to choose promotion as the reason of talent turnovers
more than female managers while female managers often choose the factor that affect
most in talent turnover is pay. The HR managers thought that the increase might cause
inequity among employees because assessing talents of performance could be
subjective.

Recommendations:
There are some limitations in this study due to the influence of objective factors. Due
to the complicated situation of the Covid-19 pandemic, the study was forced to adjust
the sample size down to about 28 people to avoid possible risks during data collection.
the sample size is too small to represent the population, lacks objectivity and makes
analysis more difficult. Therefore, future researchers should increase the number of
people participating in the interview and survey.
Research shows that the obstacles to raising salaries for employees are not having
enough resources to do it. However, the study cannot dig deeper into the above
problem: the company's limited finances cannot provide a large amount of money to
the human resources department to implement the salary increase policy or the lack of
consensus of the leaders in the process of proposing to increase budgets for
cmpensations and benefits. This limitation is due to the lack of time and resources for
the research, so in the future if possible, researchers should further clarify this issue.
VI. SELF-EVALUATION:
Overview:
Objectives:
To create a questionaire based on the key concept of talent retention and get at least 28
responses
To know the factors that affect talent turnover intention and what challenges the
company face to retain their employees
The survey was done with the participating of 28 respondents. By the end of the
research, i know some main reasons of talent turnover which are pay, promotion and
learning opportunities. The challenges that the companies face when dealing with

these issues to retain their talent are assessing performance, assessing potential of the
talent and job design
The goal was to get survey results from 28 participant and I have archieved my goal.
However, the number of participants is still too small to represent the population. In
the next research I will increase the number of people surveyed from 100 to 200
participants and 2 more companies in the same sector to participate in the survey.
I want to find out what challenges the company faces when retain talents so I need to
interview and do surveys with people in management position. I have succeeded in
communicating and interviewing as well as conducting surveys with the managers of
all 4 companies. However, in the following surveys, I will not collect data through an
online survey, but will interview each person face-to-face in order to collect more
useful information.
I went off topic when I focused too much on understanding the factors affecting talent
turnover but forgot to learn about the challenges the company faces when solving
those problems. However, I promptly recognized and added questions in the survey to
find out about the challenges that the company faces.
The first time the survey was sent to the participant the results did not go as expected,
they ignore some questions that they do not really understand. I have changed some of
the questions to be simpler and easier to understand. Some long questions are broken
down into short questions to give participants more choices. Then it turn out that was
really effective when the participant did all the questions in the questionnaire, it made
it much easier for me to analyze the data.
Through this research I learned how to manage a project of my own, from planning its
details and implementing it on time. There were things going on that were not going
as planned such as collecting data from a survey. I intend to collect enough data in 1

week but it will take 2 weeks to collect enough data. Thereby I have experience to
arrange time for each tasks in the next project.
I have trouble finding literature at the early stage of research. Then I asked my friends
about their resources, some of the websites that gave me access to more journals and
books. I have gained my own experience and tips to be able to do it more effectively
in the following research.
I find that my communication skills when interviewing managers are not really good. I
lacked of confidence in the first 2 interviews, and could not yet ask everything to ask.
My lack of confidence made the interview quite stressful. However, in the last 2
interviews, I learned how to be calmer when interviewing and create comfortable
atmostphere. I become more comfortable and smoother when communicating,
preparing a careful list of questions, smiling and creating intimacy so that the
interviewee can openly share informations.
If I have more time, I will I will also interview the managers who are considered
talents at the enterprises. This will help me better understand what influences their
intention to quit.
Self-rating performance:
I evaluate my performance through research process using PMBOK (Project
Management Institute, 2017) which includes 6 elements (scope, schedule, resources,
cost, risk and quality). The first is scope, my research scope is quite small so it cannot
represent the population. Due to the limitations of time and budget, I choose a coffee
shop sector and 4 companies that my friends currently work here to have contact
information with their managers. As for the schedule, I did not do very well at this
section due to some tasks that did not complete on time. However, I still completed all
research on time. In term of resources, I look for reliable resources from books,
journals. Also, I plan to interview 4 HR managers from 4 companies and have it done.

Despite having problems with time management, in general, I judge that my research
has completed its tasks. I deal with risks and problems effectively to complete the
research and still ensure the quality of the research. I control the quality of the
research by going to weekly workshops, where I get tutors feedback and suggestions
to improve my research.
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[Interview] (November 2020).

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https://docs.google.com/spreadsheets/d/1dhS-qk_kr1czwMFw6Ehi-
53X3podz0IOoABvCJrnErc/edit#gid=229921831
Questions Answers
What is your gender? a, Male b, Female
What age group do you
belong to?
a, 22-30 b, 31-45
What is your position in
the company?
a, HR manager b, Store manager
What activities you in
charge in term of talent
management in your
company?
a, Compensation
and benefits
b, Training c, Performance
management
Your working experience
in term of managing?
(identify by year of
working)
Open answer
What kind of employee do
you consider as talent?
a, High skilled
employee
b, People have
long time
working for the
c, Both answers

company
The average time that
talented employees stay
within the business:
a, Under 1 year b, 1-2 years c, over 2 years
Factors affecting the
turnover intention of the
talent:
a, Pay b, Promotion c, Learning
opportunities
d, Job quality
Challenge of raising salary
for talent:
a, Increasing
salary can create
envy among
employees
b, The company
can not afford to
raise salary for
their employees
c, Hard to assess
employee
performance
Challenges of providing
professional training
sessions for talent:
a, The cost of the
training program
is high
b, Professional
training in coffee
is unnecessary
(do not bring
many benefits to
the company)
Challenges in promoting
talent:
a, Hard to
determine an
employee's
ability to take on
the higher
positions
(leadership skills,
problems solving,
...)
b, Hard to assess
employee
performance