FACTORS AFFECTING EMPLOYEE RETENTION AND TURNOVER IN THE MULTINATIONAL PHARMACEUTICAL INDUSTRY IN THAILAND: EMPLOYEE PERSPECTIVE. Employment in the multinational pharmaceutical company operating in Thailand has been volatile and highly competitive, leading to higher turnover rates and significantly higher costs. It is challenging for top management to determine employee retention strategy today, which makes this thematic paper focus on studying factors affecting employee retention and employee turnover intention in the multinational pharmaceutical industry in Thailand from the employee perspective.
KEYWORDS: Multinational pharmaceutical industry in Thailand / Employee retention Turnover intention / Maslow's hierarchy of needs / Herzberg's two-factor theory / Job satisfaction. However, in 2022 and 2023, the annual growth rate of the market should accelerate to 3.5% due to: (i) a growing concern among Thais about personal health and wellness, which is partly a side effect of the COVID-19 pandemic; (ii) the aging Thai society; (iii) the broad coverage provided by the Universal Health Coverage scheme; and (iv) foreign patients returning to Thai hospitals (Tuncaiboon, 2021). Lately, employment in the global pharmaceutical company operating in Thailand has been unstable and challenging.
Mass downsizing and restructuring are having an effect on staff turnover in Thailand's pharmaceutical industries, as laid-off employees must now seek employment with other pharmaceutical companies. In the pharmaceutical industry, the ratio of new recruits to company spending has become a significant concern. It is challenging for the management team in terms of employee retention strategy in a very competitive environment in the pharmaceutical industries nowadays in Thailand.
Research Question
Research Objectives
Expected Benefit
LITERATURE REVIEW
- Background of the Pharmaceutical Company in Thailand
- Employee retention
- Employee’s turnover intention
- Organizational factors associated with employee retention and turnover
- The Maslow’s Hierarchy of Needs
- Herzberg's Two-Factor Theory
- The research conceptual framework
Since pharmaceuticals in Thailand were facing strained budgets, it is possible that Thailand will face a shortage of raw materials resulting in an even greater increase in the overall cost of drugs (Manakitsomboon, 2022). Employee retention is the organizational goal of keeping talented employees working for the company in the long term and reducing turnover by fostering a positive work environment to encourage engagement, showing appreciation to employees, offering competitive wages and benefits, and promoting a healthy work-life balance to convince and attract the employee to stay with the company (Baker, 2022). The bottom line is that by managing employee retention, organizations will retain talented and motivated employees who truly want to be a part of the company and are committed to contributing to the overall success of the organization (SHRM, 2022).
Hygiene factors are the main factors of employees to reduce the intention and feelings of dissatisfaction with work. In theory, motivational factors can be described as drivers that encourage employees to be more productive and maintain good behavior in the organization and further increase job satisfaction (Chiat, 2019). One of the well-known motivation theories is Maslow's Hierarchy of Needs, which is a theory of human motivation developed by Abraham Maslow in 1943.
The hierarchy of needs is used to examine how people are organically motivated to engage in activities. This implies that, according to the theory, for motivation to arise at the next step, each preceding stage must be met as shown in the form of a pyramid, with the largest, most fundamental needs at the bottom in figure 2.1. As far as the organizations are concerned, the basic compensation and salary would be at least enough for employees to live their lives.
In terms of the organizations, it would be safe workplace, health/life insurance, secure position in the company and the acceptable compensation for surviving in daily life. In terms of the organizations, it would be an acceptance of colleagues, recognition programs, different work structures, interactions with colleagues and being part of a team to improve employee performance and retention. Maslow grouped employees' demands in the ascending order of physiological, security, love and belonging, self-esteem, and self-actualization.
Herzberg's Two-Factor theory is one of the most famous theories regarding job satisfaction that was developed by Frederick Herzberg from 1950 to 1959. There are two dimensions in the theory which are motivational factors and hygiene factors (Herzberg, 1974).
RESEARCH METHODOLOGY
- Research Design
- Sampling Method
- Data Collection
- Interview Question
- Question List for Interview
- Data Analysis Method
The researcher conducted an interview from various backgrounds and positions in various multinational pharmaceutical companies in Thailand. Along with this primary method, the author has explored various academic articles and journals to describe the predictors of employee turnover intentions and employee retention perspective, through the use of secondary data. The general questions section is the first part that identifies the interviewee's background and reflection on their company.
The second part is the specific questions section, which are questions related to the research topic to understand the perspective of motivation and job satisfaction related to employee retention and turnover intention. Some questions were formulated based on Maslow's hierarchy of needs and Herzberg's two-factor theory. Physiological needs: Do you think that the company provides enough of the basic needs of your daily life.
Need for security: Do you feel that your life is safe and secure while working for this company? Need for self-esteem: Do you feel free to speak your mind and have others listen to your voice and opinion. After completing the interview process, the researcher analyzes the results obtained from the 10 interviewees based on each individual question that is presented in table 3.1.
Additionally, the data provided by the participants is analyzed through coding methods (eg participant A1, B2, C3, etc.) to understand the changing situation, different employee perspectives on employee retention and turnover in mind Theirs.
RESEARCH FINDINGS AND DATA ANALYSIS
Interview respondents’ profile
Research findings (Interview Results)
- Research findings from Element of Maslow’s Hierarchy of needs
- Research findings from Element of Herzberg's Two-Factor Theory
This job gives me a good quality of life with a very high salary” – Medical Manager (C3). I earn enough to pay my housing and bills and save the money for the future” - Medical Scientific Liaison (F6). The company paid very well to meet my basic and other additional needs” - Medical Scientific Liaison (G7).
As part of job security, I have not yet heard of layoffs in my organization." – Product Manager (B2) “I only joined this company for 6 months, other colleges said that this company has not laid off employees before, although the sales revenue decreased during the COVID-19 pandemic, the company still pays the same without salary reduction or lie down.” – Medical Manager (C3). It takes more risks, but the company provided the good health/accident insurance for employees” - Medical Scientific Liaison (F6). This job allows me to have enough free time with my family and my team is a supportive team” - Medical Representative (J10).
I think my team and my manager support me and each other very well” - Medical Science Connection (G7). My company has encouraged a culture of feedback in the organization and I think I feel confident that I can discuss anything with my manager” – Communication manager (E5). I somehow feel respected, but only by my colleagues and not by my superior in some situations” - Medical-Scientific Connection (F6).
My role can contribute value to the company and patients worldwide” – Medical Manager (C3). I still don't have a change to do the other role that interests me more" - Medical Representative (H8). I like the company's future strategy which motivates me to stay with this company.” - Scientific medical connection (F6).
I have an opportunity for internal promotion and do new things in this company” - Medical Scientific Liaison (G7). This job is very challenging and new for me, and it motivates me to grow every day” – Medical Manager (C3). I think if the team and leader are not good and not supportive, I will leave for sure." - Medical Scientific Liaison (G7).
When there is a new interesting job with a higher basic salary, I will move" - Health representative (J10).
CONCLUSIONS AND RECOMMENDATIONS
- Conclusion
- Recommendations
- Develop the career competency guide and Individual Development Plan (IDP) in organization
- Develop skills for leader/ manager in organization
- Strengthen the healthy organizational culture in workplace From the findings, it was found that some employees will consider leaving
- Organize regular team building activities
- Provide sustainable payment and rewards for employees
- Limitation
- Directions for future research
When extrinsic factors are met for employee expectations, motivators as intrinsic factors will increase job satisfaction and increase employee retention. All the practical recommendations mentioned below are explained from the perspective of 10 survey respondents, because it will be very useful for the hiring manager and management team in the multinational pharmaceutical industries, as they will have current information on how companies increase employee retention and reduce the turnover rate in companies. Using this career guide, an employee will work in partnership with their manager, helping employees develop their careers so that they can achieve their goals together, no matter what level they are at.
This Career Guide will be used in conjunction with IDP, a program that allows employees to plan on growing their career path. passion. As a result, it leads to a decrease in employee job dissatisfaction and turnover rate of the company. If what happens in the company does not align with the vision, beliefs and values of the company.
The company requires an effort to set up a plan to create positive changes for the workplace culture. The company can start from the employment practices, which must also reflect the company's values, by actively recruiting people who fit into the company. In addition, for the current employee, the company should focus on designing and communicating about the company culture so that the employees can participate by company managers and leaders who are the role model to represent the company culture.
A healthy work environment would increase the retention of workforce employees to stay within the company as it helps improve job satisfaction and fulfill the social needs of employees. This can improve the employee to feel more connected and able to cooperate more effectively with the manager and colleagues as more of their social needs can be met in the workplace. To further strengthen employee retention in the company and increase employee motivation, management should ensure pay equity and regularly be proactive about competitive pay, sustainability and transparency to keep employees engaged and motivated.
This would help retain employees and keep their satisfaction at extrinsic motivation, as the finding shows that an uncompetitive salary is the only factor for employees to leave the company. I would suggest expanding the number of interviewees by searching the in-depth information of the management or Human Resource in multinational pharmaceutical industries to understand what they have done so far and how it works or do not understand what factors organizations need to improve to retain employees and reduce turnover intent in the company.
