Factors affecting job resignation intention of life insurance agents in dong nai

MINISTRY OF EDUCATION AND TRAINING
UNIVERSITY OF ECONOMICS HOCHIMINH CITY

DUONG THANH LONG

FACTORS AFFECTING JOB RESIGNATION INTENTION
OF LIFE INSURANCE AGENTS IN DONG NAI
Class

:

eMBA K18

Ology code :

60.34.05

MASTER THESIS

Instructor

:

Dr. TRAN HA MINH QUAN

HO CHI MINH CITY 2012


ACKNOWLEDGEMENTS

First of all, I would like to thank my advisor Dr. Tran Ha Minh Quan

for

his

enthusiastic

and excellent

supervision,

encouragement

and

academic guidance to me during this research. He was always there to
listen to me and to give advice as well as reference sources of modern
thesis platform. He taught me how to ask questions and express ideas. He
showed

me

different

ways

to

approach

a

research

problem

and

encouraged me to be persistent to accomplish any goal.
Second, my wholehearted appreciation is also more importantly
dedicated to my family, especially my wife, she was also my MBA
classmate, her emotional and schedule supports have greatly contributed
to completing this academic research and study. And then I would like to
give my heartfelt gratefulness to Mr. Tam and all my friends in Manulife
Dongnai, who helped me much in completing the questionaire.
Finally, I would like to thank HCMC University of Economics for
giving me the good environment to study and chance for improving my
knowledge.

i


TABLE OF CONTENTS
LIST OF TABLES............................................................................................................... v
LIST OF FIGURES ............................................................................................................ vi
CHAPTER 1: INTRODUCTION ....................................................................................... 1
1.1. Thesis statement ....................................................................................................... 1
1.2. Research objective.................................................................................................... 2
1.3. Object and scope of research ................................................................................... 2
1.4. Significance of Study ............................................................................................... 3
1.5. Research framework................................................................................................. 3

CHAPTER 2: LITERATURE REVIEW ........................................................................... 4
2.1. General view on life insurance and insurance agents ............................................ 4
2.1.1. Definition of life insurance............................................................................... 4
2.1.2. Insurance agents ................................................................................................ 5
2.1.3. Job features and requirements of life insurance agents .................................. 6
2.1.4. Some basic reasons make insurance agent resign from work ....................... 7
2.2. General view of theories related to the job-resignation intention ......................... 8
2.2.1. Maslow’s hierarchy of needs (1943)................................................................ 8
2.2.2. Herzberg’s Two Factor Theory (1959).......................................................... 11
2.2.3. Adams’ Equity Theory (1963) ....................................................................... 12
2.2.4. Alderfer’s ERG theory (1969)....................................................................... 13
2.2.5. Goal setting and task motivation of Edwin Locke (1968) and Kenneth A.
Kovach (1999) ........................................................................................................... 14
2.3. Studies related to the thesis.................................................................................... 15
2.3.1. Study of Nguyen Quang Thu (2005) ............................................................ 15
2.3.2. Study of Đao Minh Tuyen (2008),................................................................ 17
2.3.3. Study of Vo Quoc Hung and Cao Hao Thi (2009), ..................................... 17
ii


2.3.4. Study of Vu Mong Thuy My (2009)............................................................. 18
2.3.5. Study of Nguyen Bich Tram (2012), ............................................................ 18
CHAPTER 3: METHODOLOGY .................................................................................... 20
3.1. Studying of affecting factors ................................................................................. 21
3.1.1. Objectives of primary research ...................................................................... 21
3.1.2. Deployment methods for primary research ................................................... 21
3.2. Building of research’s models, hypothesis and official variables ...................... 23
3.2.1. Research’s models........................................................................................... 23
3.2.2. Definition of variables .................................................................................... 24
3.2.3. Research hypothesis........................................................................................ 31

3.3. Research sample ..................................................................................................... 34
3.3.1. Sample selection method ................................................................................ 34
3.3.2. Sample size...................................................................................................... 35
3.4. Develop scale and design questionnaire ............................................................... 36
3.4.1. Develop scale .................................................................................................. 36
3.4.2. Design questionnaire....................................................................................... 36
3.5. Collect data ............................................................................................................. 38
3.6. Analyze and process data by statistic tools........................................................... 38
3.6.1. Accredit accuracy of scale.............................................................................. 39
3.6.2. Exploratory Factor Analysis........................................................................... 39
3.6.3.Linear regression analysis and accredit research assumptions...................... 40
CHAPTER 4: DATA ANALYSIS AND INTERPRETATION..................................... 42
4.1. Sample description ................................................................................................. 42
4.2. Analysis of scale reliability.................................................................................... 46
4.3. Analysis of discovered factors and adjustment of the study models .................. 48
4.3.1. Analysis of discovered factors for variables ................................................. 48
4.3.2. Analysis of discovered factors for the dependent variables ......................... 49
4.3.3. Adjustment of study models and hypothesis ................................................. 50
iii


4.4. Linear regression analysis and hypothesis testing................................................ 52
4.4.1. Linear regression analysis .............................................................................. 52
4.4.2. Hypothesis testing ........................................................................................... 57
CHAPTER 5: CONCLUSIONS AND RECOMMENDATION ................................... 60
5.1. Research Conclusion .............................................................................................. 60
5.2. Research Recommendation.................................................................................... 64
5.3. Research Limitation ............................................................................................... 65
5.4. Further Research..................................................................................................... 66
REFERENCES................................................................................................................... vii

APPENDIX 1: QUESTIONNAIRE ON FACTORS OF PRODUCTIONS FOR JOBRESIGNATION INTENTION ........................................................................................... x
APPENDIX 2: OUTLINE FOR GROUP DISCUSSION..............................................xiii
APPENDIX

3:

TEMPORARY

RESEARCH

RESULTS

ON

VARIABLES

AFFECTING JOB-RESIGNATION INTENTION .......................................................xxi
APPENDIX 4: OFFICIAL QUESTIONNAIRE ...........................................................xxii
APPENDIX 5: FREQUENCY TABLE ........................................................................xxvi
APPENDIX 6: RELIABILITY ANALYSIS SCALE ................................................xxxiv
APPENDIX 7: EXPLORATORY FACTOR ANALYSIS 1 .......................................... xli
APPENDIX 8: EXPLORATORY FACTOR ANALYSIS 2 ........................................xliii
APPENDIX 9: RESIDUALS........................................................................................... xlv
APPENDIX 10: RESIDUALS CORRELATION AND COLLINEARITY.................... li
APPENDIX 11: QUESTIONNAIRE ON FACTORS OF PRODUCTIONS FOR JOBRESIGNATION INTENTION IN VIETNAMESE LANGUAGE ................................. lii
APPENDIX 12: GROUP DISCUSSION OUTLINE IN VIETNAMESE LANGUAGE
.............................................................................................................................................. lv
APPENDIX 13: QUESTIONNAIRE INTERVIEW IN VIETNAMESE LANGUAGE
...........................................................................................................................................lxiii

iv


LIST OF TABLES

Table 3.1: The summary table of factors affecting the job-resignation intention.......... 21
Table 3.2: Definition of variables “working challenges”................................................ 25
Table 3.3: Variable definition “Relationship among colleagues” ................................. 25
Table 3.4: Variable definition “Binding to work” ........................................................... 26
Table 3.5: Variable definition “Income” .......................................................................... 27
Table 3.6: Variable definition “Career development possibility” .................................. 28
Table 3.7: Variable definition “Imbalance between work and life”............................... 28
Table 3.8: Variable definition “Stable job and treatment policies”................................ 29
Table 3.9: Variable definition “the attention and support from senior managers”........ 30
Table 3.10: Variable definition “The attention and support from senior managers” .... 31
Table 3.11: Expected to sign the relationship with the dependent variable................... 32
Table 4.1: Description of statistical values of the samples ............................................. 43
Table 4.2: The results of scale reliability calculation...................................................... 46
Table 4.3: KMO and Bartlett's Test for the dependent variables.................................... 49
Table 4.4 Total Variance Explained for the dependent variables.................................. 49
Table 4.5: Component Matrixa for the dependent variables .......................................... 50
Table 4.6: Summarized regression model ........................................................................ 53
Table 4.7: ANOVA Analysis ........................................................................................... 53
Table 4.8: Regression coefficients of the model.............................................................. 54
Table 4.9: Resul to sign the relationship with the dependent variable ........................... 56
Table 4.10: Testing of statistical hypothesis (β≠0).......................................................... 57

v

LIST OF FIGURES

Figure 2.1: Maslow's Hierarchy of needs Pyramid............................................................ 1
Figure 3.1: Research process............................................................................................. 20
Figure 3.2: The research’s model on job-resignation intention of insurance agents ..... 24
Figure 4.1: Adjusted research model................................................................................ 51

vi


CHAPTER 1: INTRODUCTION

1.1. Thesis statement
Vietnamese people today are usually not used to buying insurance. The fastest
and most effective marketing ways of Vietnam life insurance sector are direct
marketing and oral marketing. This means that the life insurance companies owning a
large system will have advantages in approaching customers and broadening market.
After more than 15 years of launching the life insurance market, the insurance
sector went into the situation that hundreds thousand insurance agents who had been
employed for less than 12 months stopped working. According to the statistic, up to
about 80% of life insurance agents close business within 12 first month of starting. [15]
The market of life insurance in Vietnam has so far always had demand of
recruitment of new agents to develop the business and replace the former ones.
Currently, the recruitment of insurance agents becomes extremely difficult not for
newly established companies in Vietnam but also for big brands like Prudential, AIA,
Manulife, Dai-Ichi Life Vietnam, AEC Life and Bao Viet.
According to the marking based on the agent duration (for 4 years) of the
LIMRA research (under the International Research Organization LL Global), the
degree of maintaining in Vietnam is under 10%, meaning that among 100 agents in
2005, less than 10 agents continues working for the next 4 years.[16]

The reality also shows that many life insurance agents have worked for
continuous 3 months or six months but they could not get any insurance contracts. This
situation forced life insurance company to stop the agent contract and few agents
opposed this decision because they no longer had interest in this job.
These above facts have place many questions to the Author:

1


- Why for a highly potential life insurance market in Vietnam and for a job
considered to bring a quite high income, the life circle of insurance agents is short as
such?
- What are the reasons for the job resignation of life insurance agents? What are
the impacts of these reasons? What are common features among agents in this
problem?
- In Dong Nai, where the Author is living and working, how is the situation of
agent’s resignation?
- How to limit the job resignation intention of life agents?
From the above problems, the Author decided to choose the thesis “ Factors
affecting job-resignation intention of life insurance agents in Dong Nai” for the
research.

1.2. Research objective
The research has been done with two main objectives:
Firstly, determining and analyzing the factors affecting job-resignation intention
of life insurance agents in Dong Nai.
Secondly, giving out some recommendations for insurance company to
minimize the resignation decisions of life insurance agents.

1.3. Object and scope of research

- Research objects are factors affecting the job-resignation intention of life
insurance agents.
- Research scope is restricted to the insurance agents in Dong Nai province
- Time of research is from early 2012 to the end of the second quarter 2012.

2


1.4. Significance of Study
So far, there is no deep and thorough researches on job-resignation intention of
life insurance agents, so the Author hope that the thesis will give some significances.
- The thesis will contribute to explaining the job-resignation of insurance agents
in Dong Nai over this time, it also explain the phenomena of “too short experience
time” of about 80% of the newly recruited agents.
- Therefore, the thesis contributes to finding solutions for minimizing the job
resignation of agents, then contributing to supporting to insurance enterprise to expand
the market, business areas, customers in a stable way through developing and
maintaining the effective performance of agents.
- The thesis is also the useful reference for insurance business enterprises,
researchers wishing to learn about the insurance sector, agent development as well as
study on behavior science in general.
1.5. Research framework
Based on the researched problem, objectives and research questions, the
structure of the thesis “Factors affecting job-resignation intention of life insurance
agents in Dong Nai” will be divided into 5 chapters as followed:
Chapter 1: Introduction
Chapter 2: Literature review
Chapter 3: Methodology
Chapter 4: Data analysis and Interpretation
Chapter 5: Conclusions and Recommendation

3


CHAPTER 2: LITERATURE REVIEW

2.1. General view on life insurance and insurance agents
2.1.1. Definition of life insurance
The life insurance group AIG ( U.S) defines that “ Insurance is a mechanism,
according to this mechanism, one person, one enterprise or one organization transfer
risk to an insurance company which will indemnify the insured for the loss of coverage
premiums and losses were divided among all the insured”
According to the insurance business law of Vietnam (issued on 09th December
2000) “ insurance business is the operation of an insurer for profit, under which the
insurer accepts the risk of the insured on the basis of the insurance premium payment
to the insurer so that the insurer can pay to the beneficiaries or make compensation to
the insured when the insured event occurs.”
Also according to the insurance business approved by the Vietnam National
Assembly and valid from 01th July 2001 “ Life insurance is a kind of insurance
profession for the cases of insured’s living or death”
According to the amendment and supplemetation of some articles in the
insurance business law no. 24/2000/QH10, life insurance includes whole life insurance;
term life insurance; endownment; recurring insurance; investment-linked insurance;
pension insurance.
So, life insurance can be understood on two views, technique and law. In
respect to technique, life insurance is insurance with commitments in which the
commitment implementation depends on the human life-span. There are two main
commitments in life insurance including premium payment commitment of the insured
and the indemification payment or periodic allowance payment of the insurer.

4


In respect to the legality, life insurance includes insurance contracts signed
between insurers and

the insured, under which, for receiving premium from the

insured, the insurers commit to pay to one or more beneficiaries the certain amount or
periodic allowance in case the insured live for a certain time or die before the specified
time in the contract.
2.1.2. Insurance agents
The insurance law no. 24/2000/QH10 9/12/2000 has defined the insurance agent
is an individual or an organization who is authorized to perform as an insurance agent
based on the agent contract according to regulations of this Law and of related laws.
Insurance agent operation is the introduction, selling of insurance. He will
arrange the connection between the insurance contracts and other tasks to ensure the
implementation of the insurance contracts according to the authorization of insurance
companies. The article no.86 of the insurance business law regulates that individuals
who are Vietnamese citizens living permanently in Vietnam from the age of 18 with
sufficient competence and civil behaviors, holding the working license granted by the
insurance companies or the Vietnam Insurance Association are allowed to perform as
an insurance agent.
Insurance agents can be authorized by the insurance companies to do the
following work:
•

Introduction and selling of insurance

• Arranging the insurance contract;;

• Insurance premium collection
• Make arrangements for settlement of compensation, pay a
indemnification when the insured event occurs;
• Perform other activities related to the performance of insurance
contracts

5


2.1.3. Job features and requirements of life insurance agents
Currently, insurance companies usually distribute their products to customers
mainly through the insurance agents, so the roles of insurance agents are always
considered to be important because they are the most important volunteers in
transferring the insurance’s preeminent features to customers. They are on behalf of the
company to sign the insurance temporary contract with customers and bring the
revenue to the companies. They are people who care customers to maintain the good
relationship between customers and companies.
Normally, insurance agents are considered as the producers in insurance
business, they sell one or more kinds of insurance like life insurance, asset insurance,
injury insurance, health insurance, insurance for the disabled and long-time services.
Insurance agents can be representatives for some companies and they can
introduce to customers the insurance contract of the best price and information.
Insurance agents have to prepare reports and find out more new customers. In case of
loss, the agents will help customers with getting compensation provided by insurers. In
addition, some insurance agents also provide customers with financial advices and
analysis to help them with minimizing risks.
The work of insurance agents is not restricted in term of time, so it suits many
people from State officers wishing to find a part time job, students to small
businessmen, even housewives. When working in a insurance company, the insurance
agents will be partners of the insurance company, not the employee.

To become an insurance agent, you must have some qualities like perseverance
and patience. You must also understand the specific characters of the job and accept to
walk on this uneven path. The insurance consultancy requires agents to have long-term
plan for the career. They themselves draw lessons after the failure, they know how to
stand by themselves and continue to overcome challenges.

6


2.1.4. Some basic reasons make insurance agent resign from work
-.In

developing countries, insurance agents usually work overtime, but in

Vietnam, the part time agents account for 90%. Insurance agents working overtime will
sign the labor contract and receive the basic salary based on the minimum salary rate.
However, in nature, their main income is from commission for selling insurance apart
from the fixed salary, so they are partly ensured of the income to continue working.
Whereas in Vietnam, insurance consultants are people who create main revenue for
themselves, they do not have fixed salary and do not receive welfares from the
company. So, the problem of job quit and change become harder to the alarming level.
- The recruitment is important but it is more important to maintain the agent
team. Many insurance enterprises only recruit but not select carefully, as the result, the
revenue and benefit they get from a number of agents is very low, the training of
insurance agents is only the appearance, reluctance. The trainings do not last for
enough time as regulated. The tests were taken place without report. There were also
the frauds in testing.
- In some countries, the insurance consultancy job is as important as the
securities investment consultancy. It means that insurance agents must go over a
complicated training and test so that they can give advice on finance planning for

customers, instead of only selling the insurance products. However, in Vietnam, the
recruitment and training are not focused appropriately.
- For some newly established insurance companies in Vietnam desiring to
compete with long-time established companies, they have to build strategies to loosen
the policies and increase benefits to attract personnel from other companies. However,
it creates some certain problem, which is the insurance company’s negative impression
on insurance agents.
- To chase for revenue and market shares, some companies do not pay enough
attention to increasing the quality of recruitment, training, management and use of

7


agents, causing the conflict in appealing agents among companies and between agents
and customers. Some companies only spend several days on training, so the number of
graduated agents is high but the number of agents getting contracts is very low.
Contracts are mostly from closed people. When there is no closed people to consult,
they cannot find others. This situation is currently happening to the insurance market of
Vietnam.
For the above issues, regardless of new establishment or long-time
establishment, insurance companies are always facing the circle of recruitment,
training and then.. recruitment and training.
For sustainable development, life insurance companies should focus more on
training and career orientation for the insurance consultancy team, so that they can bind
to their work. Besides, the strategy of training and development of a business
management team from the successful agents who have good career ethics is an
effective method to keep the talented in the company, preventing the grey-matter
bleeding among life insurance companies.
2.2. General view of theories related to the job-resignation intention
2.2.1. Maslow’s hierarchy of needs (1943)

This is the theory proposed by the psychologist Abraham Maslow in 1943, since
then, this theory is applied widely to the real situation in many countries and many
enterprises.
In 1943, the psychologist Abraham Maslow (1908-1970) has developed one of
theories whose influence has been widely recognized and used in different sectors,
which is the Hierarchy of Needs of people. In this theory, he arranged people needs in a
hierarchy order, in which the needs of higher stage only appear when the needs of
lower stage are satisfied.

8


Figure 2.1: Maslow's Hierarchy of needs Pyramid
Maslow has arranged the people needs in 5 stages including physiological
needs, safety and security, love and belonging; self-esteem; self-actualization. The
hierarchy system is usually expressed by a pyramid. The basic contents of needs are as
followed:
Physiological needs: These needs are also called the body needs or the
biological needs including basic needs of human being like eating, drinking, sleeping,
air for breathing and needs for living comfortably and so on. They are the most basic
and strongest needs of people. In the pyramid, we can see that these needs are placed
first at the most basic stage.
Safety and security: When people are satisfied with the basic needs, it means
that these needs no longer control their thought and actions, what do people need next?
The answer is the safety and security. The need for safety and security is expressed
both by physical half and psychological half. People hope for the life protection from

9

danger. This need will become motion force for taking actions in emergency and
hazard like in war, natural disaster or seeing predators and so on.
This need is normally expressed by the desire for the stable life, living in a
secured place, in a social legislation, in houses and so on. For these needs, many people
find shelter from religion, physiology, which is the searching for psychological
security. The social insurance, retirement allowance and savings plan and so on are
also the expression of the security needs.
Love and belonging: These needs are also called the desire of one part or one
organization or the needs for love. These needs are expressed by the communication
like searching and making friends, lovers, making family, participating in one certain
community, working, going picnic, becoming member of clubs, team working and so
on.
Although Maslow has placed these needs above the two mentioned needs, he
highlighted that if these needs are not satisfied, it will create critical psychological
diseases. Many recent researches show that single people are more likely to suffer from
diseases of digestion, mental problems and respiration problem than people living with
family.
For meeting the third layer of needs, many companies organized extra-activities
like outdoor camping, collective game playing, team working and so on. The results
show that the common activities bring good impacts on psychology, then the working
efficiency is increased, the job-resignation intention will be decreased.
Self-esteem: This need is also called the self-esteem with two versions including
the need for being respect from others, recognition of personal achievements and the
need for self-esteem, personal fame with respect and belief in personal ability. When
the need is satisfied, laborers can work more effectively.
We can see in working or in life, when a person is encouraged and rewarded for
his achievements, he will be ready for working harder and more effectively. After
entering one organization, one team, people always want respect from others, at the
10

same time, they will improve themselves to feel “having position” within this
organization.
Self-actualization: It is not random to place this need on the highest layer of the
pyramid. Maslow describe this need as “self-actualization as a person's need to be and
do that which the person was “born to do”. In simpler saying, this is the need for using
up all ability and potential to determine himself, to work and to achieve successes in
the society.
It is the theory of people needs and it is considered and applied in this research
because only when the needs of insurance agents are met, they will have working
satisfaction. In another way, leaders or managers can control the behaviors of insurance
agents by using tools or methods to affect their needs or desires, making them more
enthusiastic in working. In contrast, the insurance agents will lower their working
enthusiasm, and then the job-resignation intention will increase. They will decide to
quit the current job and find a more suitable alternate job.
2.2.2. Herzberg’s Two Factor Theory (1959)
Two Factor Theory or Herzberg's Motivation-Hygiene Theory was given by
Frederick Herzberg, a psychologist. This theory bases on mainly the survey results and
analysis in Pittsburgh, Pennsylvania. This theory divides the factors into two kinds:
Hygiene factors: If the hygiene factors are met, people will do not have
dissatisfaction, if not, people will feel dissatisfied. This factor includes
•

The working inappropriate supervision

•

Working conditions do not satisfy laborer’s desires

•

Salary and other remuneration are not reasonable with unfair

factors.
•

Problematic colleague relationship

•

The relationship with all levels (higher level and lower level)

gains no satisfaction.
11


Motivator factor: If this factor is met, laborers will have satisfaction in working,
if not, they will not have working satisfaction. The factor includes:
•

Achievement as desired

•

Recognition from managers, organization and colleagues

•

Responsibility

•

Advancement in working

•

Growth as desired

Therefore, Herzberg has separated two factor groups and believed that only
motivation factors can bring about the satisfaction for staffs and if the these factors are
not maintained, causing the dissatisfaction to the laborers, then leading to their jobresignation intention.
In general, this theory helps managers know the factors causing the
dissatisfaction to staffs, then know how to eliminate these factors. For example,
insurance agents can feel dissatisfied with the work because they find it hard to get a
contract with customers. Therefore, the mangers must know how to encourage them
and give them more training, consultancy and finding causes for the ineffective
performance of insurance agents, then support them to get the contract. However, when
the dissatisfaction factors are eliminated, it does not mean that staffs will feel satisfied.
If the managers want to encourage them, making them satisfied with their job, the
managers should focus on factors like success, recognition and job assignment. Staffs
will feel satisfied with their job when they are assigned with a right task which suit
their ability and personality with training opportunity to increase career skills and
promotion opportunity.
2.2.3. Adams’ Equity Theory (1963)
J.Stacey Adams said that laborers tend to evaluate the equity by comparing
between the inputs that they bring to a job and the outcomes that they receive from it
against the perceived inputs and outcomes of others. If the result is in equity, they will
12

continue their working effort and performance. If the remuneration is over their desire,
they will tend to increase their effort in working, in contrast, if the remuneration is
lower than what they contribute , they will tend to lower their effort or find other
solutions like absence from work or job resignation (Pattanayak, 2005)
This theory can be considered from the angle of this thesis. One agent cannot
have satisfaction if they recognize that there is no equal compensation for their effort.
There are many lasting difficulties in working, making them less enthusiastic and bored
to the intention of resignation from work.
2.2.4. Alderfer’s ERG theory (1969)
The ERG theory was given by the scholar Clayton Alderfer, which is the
successful supplementation and amendment for the Abraham Maslow’s Hierarchy of
needs. ERG theory proposes three types of main needs of human being:
Existence needs: it includes an individual’s physiological and physical safety
needs. These needs are expressed through the basic needs like biological needs, needs
for food, clothing, accommodation, travelling and studying and the needs for safety.
Relatedness needs: These include the aspiration individual’s have for
maintaining significant interpersonal relationships. Each individual will have desire for
establishment and maintaining the different personal relationships. It is estimated that
each individual will spend half of their time on communicating with their targeted
relationship.
Growth needs: The needs for personal growth and development in both life and
work. Jobs, professions and higher the separate career will ensure significantly the
satisfaction of development need.
According to the ERG theory, at a same time, there may be many needs
affecting the motivation. if a higher- level need aggravates (frustration), an individual
may revert to increase the satisfaction of a lower- level need (regression)

13

This model was built based on the hierarchy of needs of Maslow, it is the further
development of the pyramid. In fact, there are many researches supporting this theory
rather than Maslow’s theory.
ERG theory of Alderfer also shows that normally more than one influencing
need in one human being at the same time. if the fulfillment of a higher-level need is
subdued, there is an increase in desire for satisfying a lower-level need.
Clayton Alderfer identified this phenomenon in one famous professional term
“frustration and shy aggression dimension”. It affects the work in a way that even when
the needs of higher-level are not fulfilled , the work still ensure for the biological needs
of the low-level and the individuals will focus more on these needs.
At this time, if there is one occurrence threatening the current job, the basic
needs of individuals will be threatened. If there are no factors to answer to their worry,
an individual is easily drowned in the desperation and panic.
The ERG explains why staffs usually search for higher-salary jobs and better
working conditions, even when the current working conditions are good as per
standards of the labor market. When staffs do not feel satisfied with the current
communication and growth needs, they will find way to satisfaction.
2.2.5. Goal setting and task motivation of Edwin Locke (1968) and Kenneth A.
Kovach (1999)
In the end of 1960s, studies of Edwin Locke showed that the detail goals and
challenges will output better working performance. Edwin Locke believed that the
working attempt for reaching a target is the main root of motivation. Therefore, to
create the working motivation, it is necessary to set out detail challenging goals as well
as attracting laborers in setting goals. For learning more about the working motivation
of staffs, the model of ten motivational factors related to the work features was
developed by Kenneth A. Kovach. This model was built first by the New York Institute

14

for Labor Relation Research in 1946 and currently applied in the world and in
organizations of Vietnam. The scale of motivation includes 10 following factors.
•

Interesting job

•

Being recognized for what have been done.

•

High salary

•

Working self-control

•

Long-term job

•

The career promotion and development

•

Good working conditions

•

The binding of leaders and companies to staffs

•

Clever policy of punishment

•

Support from leaders

The theory of goal setting and working motivation creation has great
significance in identifying the factors affecting the job-resignation intention of life
insurance agents.
2.3. Studies related to the thesis
2.3.1. Study of Nguyen Quang Thu (2005)
“Analyzing the labor fluctuation and some measures to minimize the human
resource risks in timber processing sector in Ho Chi Minh city”
The study has shown that the labor alternation will has bad impacts on
organization, not only by the direct money loss but also the efficiency and spirit of the
remaining people. Therefore, to find out the causes of labor alternation is very
necessary, it helps enterprises with having feasible measures for reducing the number
of laborers who quit job, at the same time, increasing the operation effectiveness of the
organization. The Author Nguyen Quang Thu also showed some causes of the job
resignation as followed:

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- The economy: The economic development trend is one of the most common
causes for the job quit because laborers want to find a higher-income job.
- Corporate culture: It includes the issues of salary and bonus system, strength of
the corporate leaders, friendly working environment and the mutual sharing and so on.
- The effective operation of the organization: For an organization in financial
difficulty, the job resignation rate will increase because laborers believe that it is
reasonable to find other job.
- Job features: The working attractiveness, whether it brings about the
challenges or promotion opportunities.
- Illusion about the company: Many candidates have illusion about their future
job which is offered by the company. When this illusion is not implemented, laborers
will feel disappointed and decide to leave the company.
- Demography: Experimental studies show that laborer alternation is a special
situation with demographic characteristics and history record of workers, so this is a
very important issue in which the company needs to check their laborer’s history
record.
- Individuals: Among factors affecting the laborer alternation, there is one
special factor which is the personal characteristics of the laborers including the changes
according to the family condition changes, learning a new skill and so on. Also, other
related personal characteristics are laziness, regular absence from work, stealing or
causing destruction to the machines and equipment of the company.
The above causes can be divided into three kinds:
- Voluntary resignation: The employee quit voluntarily because they do not like
working in the company or they are not happy with the wages and working conditions,
or they do not like people who work with them or because of personal problems such
as transport, housing difficulties. Regardless of which causes are, the voluntary
resigning people also think that they could do a better job somewhere else.

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- Management cause: The managers decide to fire some staffs because they are
working ineffectively, they are not suitable for this position or they are punished by
being always late for work or absent from work without any obedience.
- Obligatory resignation: Laborers stop working because of the labor force
redundancy or the economic crisis or the reorganization of the company.
2.3.2. Study of Đao Minh Tuyen (2008),
“Factors affecting the intention of job change of staffs in service divisionVietnam Airline Corporation”
Objective: Study on the intention of changing job of employees in one specific
sector.
Study result: There are seven factors affecting the job changing intention of
service sector- the Vietnam Airlines Corporation including the professional pride and
the care for the company, the care and support from manager, the attractive job, the
Benefits and the development, the Imbalance between life and work, equity, overtime
working requirement.
Study’s limitation: The study is only on the service sector, particularly the
Vietnam Airlines Corporation.
2.3.3. Study of Vo Quoc Hung and Cao Hao Thi (2009),
“Factors affecting the job-resignation of State employees”
Study’s objectives: Indentifying the factors affecting the job-resignation
intention of State employees.
Study’s results: There are 8 factors affecting the job-resignation intention of
State employees including the suitability; leadership behavior; Workplace Relations;
training and development; salary, bonuses and recognition; Communications; the love
and the physical work environment.

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Limitation of the study: The study is only done for personnel as State

employees. Study objects are state employees with the specific characteristics of
working manner as well as the working environment. In addition, the study is
conducted in only some fields and in three provinces over 64 provinces in the country.
2.3.4. Study of Vu Mong Thuy My (2009)
“Factors affecting working place changing intention of workers”
Study’s objectives: Identifying factors affecting the working place changing
intention of workers
Study’s results: The working place changing intention of workers depends on 5
factors which are arranged in descending order of impact as followed: the binding to
the company ; stable jobs and treatment regimes; the attention and support from senior
managers; relationships between colleagues; Imbalance between life and work.
Study’s limitation: The study is only conducted for the manual workers in large
industrial zone in Binh Duong and Hochiminh city.
2.3.5. Study of Nguyen Bich Tram (2012),
“Factors affecting the job-resignation intention of office staffs in Hochiminh
city”
Study’s objectives: Identifying factors affecting the job-resignation intention of
office staffs in Hochiminh city and proposing petitions for minimizing the job
resignation in companies in Hochiminh city.
Study’s result: The job resignation intention of staffs depends on 5 main factors
including attention and support from superiors, the binding to job and the company,
career development possibility, Imbalance between life and work; income. The author
has used the EFA analysis techniques, regression, P Value Inspection and has given
regression model for the job-resignation intention as followed:
DD = -0,189*GK – 0,300*QL + 0,09*DN – 0,171*TL – 0,233*PT – 0,204*CB

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