INTRODUCTION
The urgency of the topic
Research indicates a significant connection between leadership styles and employee retention, highlighting the necessity for organizations to maintain their core workforce to achieve a competitive edge in today's globalized and competitive market Leaders play a pivotal role in shaping employees' perceptions of their organization, as evidenced by studies showing that employees often leave managers rather than companies Consequently, understanding the prevailing leadership dynamics has become essential for addressing attrition and ensuring sustainable competitive advantages Furthermore, effective leadership positively influences recruitment, selection, and employee satisfaction Companies with strong leadership are more adept at training managers to make informed hiring decisions, which further impacts employee retention Studies also reveal that factors such as rewards, recognition, career development, and performance appraisals significantly affect retention rates, underscoring the importance of implementing effective reward systems and career advancement plans to keep employees engaged and committed.
This study explores the influence of various leadership styles on employee retention and recruitment It aims to identify how different leadership approaches affect employees' decisions to stay with an organization By examining key leadership styles, the research seeks to provide insights into effective strategies for enhancing employee loyalty and reducing turnover.
This qualitative correlational study aims to gather primary data through a specially designed questionnaire targeting employees of audit firms Additionally, secondary data will be obtained from an extensive literature review The analysis of both primary and secondary data will culminate in the study's findings, providing valuable insights into the research topic.
Research clearly demonstrates a strong connection between leadership styles and employee retention and recruitment in organizations, particularly in audit firms Notably, both transactional and democratic leadership styles show a positive correlation, suggesting that these approaches may be the most effective for leaders in the auditing sector.
Leaders can influence both individuals and organizations Even though the influence is positive or negative, the organization can be changed as a result of leadership
Effective leadership is crucial across all industries, significantly impacting the growth and success of organizations A strong relationship between management and employees is vital for organizational achievement This study focuses on the leadership styles employed in the audit sector, emphasizing the need for appropriate management approaches in audit firms The research aims to identify the leadership styles utilized by senior leaders, assess their effect on employee retention, and analyze how these styles influence the organization's ability to attract top talent.
This research serves as a valuable reference for audit firm leaders, highlighting the relationship between their chosen leadership styles and employee satisfaction By understanding this connection, leaders can implement appropriate changes to achieve organizational objectives effectively.
A survey was conducted to evaluate the research objectives, involving 100 employees divided into three groups: audit and consultant assistant managers, audit and consultant seniors, and audit and consultant associates The analysis of the survey results utilized confidence levels, mean, and standard deviation to draw conclusions.
The findings indicate that effective leadership styles in the auditing division lead to higher employee satisfaction and commitment, attracting talented individuals to the company In contrast, the consulting division experiences low job satisfaction among employees, resulting in high turnover rates and challenges in recruiting top talent.
1.2 Literature review and Theoretical framework
The emergence of the market economy has led to the growth of independent auditing, which has become essential for enhancing business management quality In May 1991, Vietnam witnessed the inception of independent auditing, initiated by two companies established by the Ministry of Finance, with a mere 15 personnel and a significant lack of certified auditors at that time.
From a type of operation that has never existed in Vietnam; today, there are more than
Vietnam is home to 180 accounting and auditing service companies, highlighting the growing importance of independent audits in the country These audits are essential for ensuring transparency and integrity in financial reporting, thereby supporting the development of the Vietnamese accounting and auditing profession By evaluating and confirming the financial status of enterprises, independent audit activities play a crucial role in fostering trust and accountability within the business community.
Independent auditors play a crucial role in the financial sector, significantly contributing to economic growth and the establishment of an open, integrated financial services market The accounting and auditing sectors are vital to the market economy, particularly as Vietnam opens up and integrates into regional and global markets In 2020, the total revenue of auditing firms in Vietnam reached approximately VND 8,000 billion, generating thousands of job opportunities for new graduates The accounting and auditing services market is well-established and poised for participation in both regional and international markets RSM Global ranks as the 6th largest firm globally, with 182 branches worldwide, while RSM Vietnam Auditing and Consulting Co., Ltd ranks 8th in Vietnam.
Manpower is crucial for the existence and growth of auditing firms, making it essential for leadership to focus on this aspect The effectiveness of a firm's workforce significantly influences its overall success and development.
Recent challenges in leadership within auditing firms have emerged, highlighting the importance of effective leadership in achieving organizational objectives Strong leadership not only drives company success but also fosters individual employee growth and achievement.
Employee retention is a key organizational goal that hinges on treating staff with respect and fairness Furthermore, the ability of employees to remain in their positions significantly impacts the overall success of the company.
The auditing industry faces a critical challenge in retaining talent, with a global employee turnover rate averaging 20% The success of audit firms largely depends on the quality of their workforce, making manpower a vital concern Auditors and audit associates often endure high levels of stress and job pressure, compounded by intense competition among firms As a result, retaining skilled employees has become an ongoing struggle for audit organizations.
Objectives of the research
To study the influence of leadership styles on the employee retention
To study role of leader on employee retention
To study the impact of leadership style for the success of talent recruitment
To identify the best leadership style which encourage employee retention and calling for talent.
Research questions
With the above research content, the following research questions are made and presented in the “Table 7: list of research questionnaire” in the chapter 2
Research object and scope
This research focuses on identifying the key factors that influence employee recruitment and retention at RSM Auditing and Consulting Co., Ltd By analyzing these elements, the study aims to develop effective strategies to enhance workforce stability and satisfaction within the organization.
Content scope: the study focuses on analyzing the differentiations of the leadership styles and their influence on employee retention as well as recruitment
Space of scope: at RSM Vietnam Co., Ltd Co., Ltd
Timing scope: The thesis focused on collection, study and use data relating to
RSM Auditing and Consulting Co., Ltd in the year 2019, 2020, 2021
This research acknowledges several limitations, including a focus on auditors employed in accounting firms situated in Hanoi and Ho Chi Minh City Additionally, the study targets auditors holding positions as juniors, seniors, and assistant managers, all of whom have attained at least a Bachelor's degree in accounting or auditing.
Thesis structure
Except the introduction, conclusion, reference, appendix, the main content of the thesis is divided into 3 chapters as follows:
Chapter 1: Literature review on leadership styles, employee retention and employee recruitment
Chapter 2: Research method and situation of RSM Vietnam Auditing and Consulting Co., Ltd
LITERATURE REVIEW ON LEADERSHIP STYLES, EMPLOYEE
Concepts of leadership styles
Leadership is a social influence technique that leverages the efforts of others in order to attain a goal
Notice key elements of this definition:
Leadership is based on social influence rather than authority or power;
Leadership necessitates others, which means that they do not have to be "direct reports"
It includes a goal, not influence with no intended consequence; there are many types, many pathways, to successful leadership
It includes a goal, not influence with no intended outcome; there are many styles, many paths, to effective leadership (Murray and Chua 2015)
Leadership style encompasses the typical behaviors of leaders in guiding and managing organizations Exceptional leaders possess the ability to foster productivity, creativity, and innovation, which are key characteristics that define effective leadership.
Leadership is defined as the process of inspiring and supporting individuals to achieve their goals through their own initiative, rather than through obligation or fear of consequences (Wakabi, 2016) Effective leadership fosters a sense of unity within a group, transforming potential into tangible outcomes A strong leader guides the organization towards its objectives while enhancing productivity and service delivery To attract and retain top talent, both senior and line managers must implement retention strategies aimed at keeping dedicated employees for the mutual benefit of the organization and the individual.
Leadership is fundamentally a relationship where one individual influences the actions of others, though its definitions vary widely Often confused with management, which focuses on planning and controlling organizational resources, leadership is about aligning people with the organization's goals Effective leadership involves motivating and empowering individuals to take initiative and pursue objectives willingly, rather than out of obligation or fear Ultimately, leadership is a dynamic process that inspires and supports others in achieving their goals with enthusiasm.
The human element is essential for uniting a group and transforming their potential into tangible achievements Effective leadership offers clear direction, guiding team members toward shared objectives and enhancing overall organizational performance By leveraging their influence, leaders inspire collaboration and motivate individuals to pursue common goals.
We'll look at the eight most prevalent leadership styles today, as well as the efficacy of each one
Democratic leadership, often referred to as participatory or shared leadership, involves active participation from group members in the decision-making process This leadership style is prevalent across various environments, such as private organizations, educational institutions, and government entities.
Everyone is encouraged to participate in discussions and share ideas, fostering an environment of open exchange and collaboration Although the democratic approach prioritizes equality among group members, the leader plays a crucial role in guiding and managing the group's direction.
Democratic leadership plays a crucial role in defining group membership and voting rights Research indicates that this leadership style is highly effective, resulting in enhanced productivity, improved contributions from team members, and elevated morale within the group (Cherry, 2020).
Autocratic leadership is characterized by a leader who makes decisions unilaterally, without seeking input from subordinates In this leadership style, employee feedback is neither considered nor discussed, and workers are expected to follow their superiors' directives and work schedules A clear illustration of this approach is when a manager alters the working hours of multiple employees without consulting those impacted by the change, exemplifying the lack of collaboration inherent in authoritarian leadership.
Laissez-faire leadership is defined by Merriam-Webster as a philosophy characterized by a deliberate avoidance of direction or interference, especially regarding individual freedom of choice and action This leadership style promotes autonomy and empowers team members to make their own decisions, fostering creativity and innovation within the organization.
Laissez-faire leadership allows individuals, groups, or teams to make their own decisions regarding task execution Critics argue that this hands-off approach can be risky, as it delegates decision-making authority to all employees While groups may not have the power to make significant strategic choices, laissez-faire leaders empower teams to determine their methods for accomplishing assigned tasks.
Strategic leadership involves a series of process-oriented decisions and actions that unify an organization's history, present, and future It creates a connection between these timeframes by emphasizing core values and identity, ensuring continuity and integrity This leadership approach enhances the organization's structural, human, and social capital, enabling it to effectively tackle real-time opportunities and challenges Additionally, strategic leadership provides a clear vision and roadmap, facilitating adaptation and innovation in response to environmental turbulence and uncertainty.
Transformational leadership was introduced by Leadership expert James MacGregor
In his 1978 book "Leadership," Burns defined transformational leadership as a dynamic process where leaders and their followers elevate each other to higher levels of morality and motivation This concept was further developed by Bernard M Bass, who expanded on Burns' foundational ideas, emphasizing the reciprocal relationship between leaders and followers in fostering growth and ethical standards.
12 notion of transformative leadership This type of leader, according to his 1985 book
"Leadership and Performance Beyond Expectations,":
• Is a model of integrity and fairness
• Stirs the emotions of people
• Gets people to look beyond their self-interest
Transformational leadership, a concept popularized over 25 years ago by Bass, continues to inspire individuals to pursue the improbable and is frequently regarded as a cornerstone of effective business leadership today (Mind Tools, 1985).
Coaching leadership is an emerging leadership style that focuses on utilizing coaching skills to help employees identify their needs, set goals, and enhance their performance Pioneered by AT&T in the 1980s, management coaching has proven effective in boosting organizational performance and developing leaders The concept was further popularized by Goleman in his 2001 Harvard Business Review article "Effective Leadership," highlighting coaching leadership as a fundamental aspect of effective management.
Bureaucratic leadership is characterized by strict adherence to organizational norms and traditional bureaucratic principles Despite its prevalence today, this leadership style often limits a leader's creativity and ability to drive success It primarily focuses on influencing subordinate behavior to achieve specific goals, highlighting the challenge of persuasion in leadership dynamics (Gultom and Situmorang 2020).
Employee retention, corporate reputation and recruitment success
Employee retention became popular in the 1970s and early 1980s as a result of the fact that most employees used to enter organizations and stay for a long time, often for the
Employee retention has become essential for organizations as work mobility and voluntary job transfers increase, leading to higher staff turnover This concept refers to the proactive measures taken by businesses to foster an engaging environment that encourages long-term employee commitment Human resource retention focuses on minimizing voluntary turnover and ensuring skilled individuals remain with the company, as their departure can adversely affect productivity and service delivery (Wakabi 2016).
S Abassi, K Hollman in the study of “Turnover: the real bottom line” Public Personnel Management, S.N, 2000 defined employee turnover as the rotation of employees around job positions available in the labour market According to them, this rotation could result in a transfer between organizations, a change in the job position and occupation or sometimes a shift between two states of employment and employment (Wakabi 2016)
Employee retention is one of the critical issues that many enterprises concern The movement of employees can lead to the consequences
A 2015 study by Shakeel summarized key factors influencing employee retention, drawing on previous research by earlier authors, as illustrated in the accompanying table and diagram.
Corporate reputation and its effect on recruitment success
When considering a job offer from a company with a questionable reputation, it's essential to weigh the potential benefits for your career against the risks involved If the position aligns well with your skills and expertise and offers opportunities for growth, it may be worth accepting However, it's crucial to research the company's culture, values, and employee experiences to make an informed decision Ultimately, balancing your career aspirations with the company's reputation will guide you in choosing the right path.
In February 2014, Anphabe released the "100 Best Places to Work in Vietnam 2013," a list determined by employee votes This ranking emerged from a month-long online survey that assessed various employer brand evaluation criteria.
Pay promotion Work related Non-work related
EXTRINSIC Working condition Lack of technology & equipment Job content Training Flexible work arrangement Career development
Security Status Social environment Relationship with immediate boss Respect Authority Location Justice Prestige Recognition Organization support
Anphabe and Nielsen Vietnam have collaboratively developed a comprehensive set of criteria to evaluate companies, encompassing six key categories: Salary, Bonus and Welfare, Development Opportunities, Culture & Values, Leadership, Quality of Work and Life, and Company Reputation.
While the criterion of Company Reputation holds the lowest importance among the six evaluation factors, Anphabe emphasizes its critical role in shaping employees' perceptions of the other five criteria During the company research phase, reputation significantly influences employees' feelings regarding their career expectations, including Salary, Bonuses, Benefits, Growth Opportunities, Culture & Values, and Quality of Work and Life.
Therefore, this thesis will focus on the link between leadership style and organization‟s reputation They impact on the recruitment success
Internal reputation development is a complex process influenced by factors such as leadership style, communication, and organizational culture A 2011 study emphasizes the importance of transformational leadership—characterized by strategic, inspiring, and empowering traits—for enhancing employee motivation and productivity, while also fostering a positive internal reputation In today's social media landscape, employees are empowered to engage publicly, and their perceptions of the company significantly shape how stakeholders and investors view its reputation.
Organizational identity encompasses how members perceive their firm, while construed external image reflects their understanding of outsiders' views According to Dutton et al (1994), organizational identification is the degree to which individuals see themselves as sharing the same attributes that define their organization Interviewers are likely to emphasize organizational attributes that they believe are represented in both themselves and the organization This connection highlights the importance of shared characteristics in shaping perceptions of organizational identity.
Seventeen key attributes are crucial for interviewers, as they are perceived positively and align closely with recruitment goals These properties not only stand out during the interview process but also facilitate constructive discussions, making them highly relevant for successful hiring outcomes.
A study by Gatewood, Gowan, and Lautenschlager (1993) reveals that initial job choice decisions are significantly influenced by the organizational image perceived by potential applicants, which is closely tied to the information available to them These findings reinforce the traditional recruitment advertising belief that presenting favorable information can positively affect potential candidates Consequently, there is a strong connection between an organization's image and recruitment success, highlighting the crucial role leaders play in shaping and maintaining a positive organizational image.
The Association of Chartered Certified Accountants (ACCA) conducted a study by Turner and Chun Wee (2012) to explore talent attraction and retention in large accounting firms, focusing on the satisfaction levels of external auditors The findings highlighted the significance of work culture as a key factor influencing auditor satisfaction.
Figure 2.1: Key attraction and retention factors – work culture
The factors of leadership styles influence on employee retention and talent
Many employees leave their jobs due to limited opportunities for advancement, with 48% citing this as a primary reason Retaining talent is essential for a company's long-term success, and savvy CEOs acknowledge the challenges of attracting skilled workers They realize that competitive salaries alone do not suffice in keeping employees engaged and committed Therefore, it is crucial to identify additional factors that contribute to employee retention beyond financial compensation.
Statistics indicate that when a talented employee departs, a company can incur losses ranging from 70% to 200% of that employee's annual salary This significant financial impact arises from various factors, including recruitment and training expenses, decreased productivity, and the strain on remaining staff.
The factors to retain staffs
Worthy of the word "boss"
Many employees choose to leave their jobs not because of the company or the nature of their work, but primarily due to their relationship with their bosses Being a decent and friendly boss is insufficient; the quality of the connection between a boss and an employee plays a crucial role in employee retention.
Transparency on how to get admitted to partnership
Low level of office politics
Consistency of actions with firm's culture
Equitable allocation of work accross the team
Adequate resource allocated to my engagements
Reasonable deadine imposed by immediate superiors
Satis fact io n (aver ag e sco re )
NICE TO HAVE KEY RETENTION
19 management capacity When the boss's leadership capacity is overestimated, a competent employee will be able to "give up."
To retain employees and ensure their long-term satisfaction, leaders must critically assess their own performance when team members leave By focusing on key criteria, executives can create a positive work environment that encourages loyalty and commitment among staff.
Employees seek opportunities to showcase their abilities, engage in enjoyable tasks, and enhance their skills If a company fails to foster a supportive environment, employees may leave in search of an organization that aligns with their values Conversely, when employees receive encouragement to promote their strengths, they gain confidence, leading to increased engagement This approach not only boosts morale but also plays a crucial role in effective employee retention.
One of the examples to prove for the above is the study performed by (Sue Bingham,
2016), the barriers to employee retention include a culture where:
Employees are not trusted or valued
There is a little investment in training
A lack of employee involvement exists
Equality in career growth opportunities is essential, as it ensures that all individuals have the same chance to advance based on their abilities and the company's needs Hiring and promotion decisions should focus solely on applicant qualifications, without considering factors such as appearance, race, hometown, religion, or seniority Favoritism towards employees from the same hometown as leadership can lead to a toxic work environment and increased turnover, ultimately affecting the overall health of the organization.
Employee training plays a crucial role in attracting and retaining top talent, as individuals seek work environments that foster growth and development Providing opportunities for skill enhancement and knowledge acquisition allows employees to advance their careers more swiftly and effectively, ultimately contributing to job stability and satisfaction.
Recognizing and commending employees for their efforts is a powerful motivator in any organization Instead of restricting rewards to a monthly schedule, make it a point to regularly and genuinely acknowledge your colleagues during casual interactions, such as lunch or break times This personal recognition fosters a sense of value and appreciation, leading to increased loyalty and commitment to the company.
To help HR professionals attract and retain talent, it's essential to identify key characteristics that appeal to job seekers VietnamWorks, the leading online recruitment platform in Vietnam, conducted a survey titled "Factors Job Seekers Are Interested in an Employer Brand." This report, based on statistical analysis of nearly 3,000 job seekers in the VietnamWorks database, outlines effective recruitment policies and strategies for promoting employer brands successfully.
Attracting and retaining talent hinges on several key criteria, including leadership quality, organizational culture, employee welfare, work-life balance, corporate reputation, and opportunities for development Among these, the most significant factors that shape effective leadership are an inspirational vision coupled with a clear strategy, which accounts for 45.9%, and fostering high employee engagement, at 45%.
The significance of leadership in the workplace is crucial for job candidates when choosing to apply or remain with a company Candidates prefer managers who possess a strong strategic vision and the ability to unite their teams, highlighting the importance of effective leadership in employee retention and attraction.
The poll results also suggest that the majority of candidates prefer "fair, polite,"
"reliable, clear," and "professional working style" in terms of company culture and
21 basic principles When more than 44% of survey respondents rated all three factors as absolutely vital, these are three things people expect the most in the business
In addition, based on the article presented on the website https://jobsgo.vn, we also understand the impact of leadership on employee retention, such as:
Many employees resign not due to the company or the job, but because of their boss Being a friendly leader is insufficient; effective management skills are crucial for fostering a positive employee-boss relationship When talented employees have high expectations of their leaders, they may disengage if they perceive a lack of leadership ability in their boss.
Effective leadership requires a clear understanding of delegation, including knowing what tasks to assign and to whom It's essential to consider each employee's abilities, experience, skills, qualifications, and interests Assigning responsibilities to someone who is experienced but lacks interest or accountability for the task can complicate the delegation process.
RESEARCH METHOD AND SITUATION OF RSM VIETNAM
Research method and design
A research design establishes a framework for data collection and analysis, guiding the execution of a study In this case, a quantitative analysis was conducted through a survey of employees in audit firms to assess their perceptions of leadership styles This approach focuses on employee satisfaction, commitment, and the effectiveness of recruitment in audit firms The quantitative method measures variables, investigates relationships, tests hypotheses, and examines large groups, identifying structured cause-and-effect relationships By reducing data to numerical values, it provides definitive insights into how much and how many, emphasizing experimentation with predefined variables Utilizing an online survey via Google Forms, this research method offers confidentiality, encouraging honest and valid responses from participants The survey comprised 16 questions related to demographics, leadership styles, and factors influencing employee retention and recruitment, distributed to five audit firms ranked just below the Big Four.
Primary data is gathered directly by the researcher for the first time and is not sourced from existing resources Since secondary data may not fulfill the specific needs of the study, primary data is essential for thorough analysis.
The author develops a quantitative questionnaire aimed at testing the model's assumptions This survey gathers general research information and includes questions that explore the relationships between leadership styles and employee retention, as well as employee satisfaction Additionally, it examines the interactions between leaders and staff and assesses the organization's talent recruitment capabilities.
Measure: Likert scale from 1 to 5 would be used for majority of the quantitative of questionnaire with 5 is the highest level and 1 is the lowest one
Sampling is the process of selecting an appropriate number of the right subjects from the population as the representatives of the research (Sekaran & Bougie, 2011)
Sampling is one of the first important steps, because if it is done correctly, the result can be used to make conclusion on the whole of population
The author interviewed employees who are working for Audit companies with 3 levels of associate, senior and assistant manager
In the research of “factor that affect auditors‟ turnover intention skripsi” (Bachelor
According to Sekaran and Bougie (2011), a population is defined as the complete group of individuals or objects that a researcher aims to analyze Since managing an entire population is often impractical, researchers typically select a sample from it This study aims to explore the relationship between leadership style and employee retention and recruitment success within the audit field The initial step involved identifying audit companies, which was achieved through observations and insights gathered from friends, colleagues, and professional associations.
For this study, employees were chosen based on two main criteria: the companies selected had comparable income levels for their employees, and the respondents were external auditors A total of 100 questionnaires were distributed across five audit firms.
The questionnaires are sent to the following audit companies:
1 RSM Vietnam Auditing and Consulting company limited
3 Grant Thorton Vietnam Company Limited
5 A&C Auditing and Consulting Company Limited
Table 3.2 A Framework for Analysing the Relationship between leadership styles and employee retention, recruitment ability
In the study, a total of 86 responses, representing 86% of the sample, were completed and analyzed A reliability analysis using Cronbach's alpha was performed, revealing that the variables demonstrated acceptable reliability, with alpha values ranging from 0.7 to 0.9.
Interview tool: the questionnaires are sent to the interviewees through the system of google form to collect the data
Timeline: from May 2021 to September 2021
Question design: the questionnaires are designed how to be suitable with the objective of the research and the literature frame briefly and clearly The design procedures are as follows:
Identify the required information such as: factors, variable and scales
Identify the type of questions
Identify the content of the questions
Identify the language used for presenting the questions
Determining the logic for the questions
Submit the questionnaire to the instructor
The instructor review, modify and agrees to perform the survey
Basic content of the questionnaire
Employee retention and recruitment ability
Democratic leadership Satisfaction of employee
Development of employee Transactional leadership
Employee turnover rate and employee retentionBureaucratic leadership Quality of candidates employed
This study utilized a questionnaire to collect data, which was organized into three sections The first section aimed to identify the leadership styles employed by senior managers within the company, addressing the research question regarding the prevalent leadership style The second section focused on employee satisfaction and commitment, exploring the correlation between leadership styles and employee contentment Finally, the third section assessed the organization's capability to attract and retain talent.
The questionnaire used for the present study is derived from the literature review of the previous studies
No Criteria Number of samples
1 Auditors who work for group of from 5 th to 6 th ranking of audit firms
2 Auditors who work for audit firms ranking from
The researcher set the confidence interval 95% with 5% margin of error for this study
According to Bachelor (2019), referencing Sekaran and Bougie (2011), a sample size between 30 and 500 is generally sufficient for most research studies Additionally, when employing multiple regression analysis, it is recommended that the sample size be at least ten times greater than the number of variables included in the research.
For this research, four variables are using the sample size should be 40 data (4 variables multiply by ten times) b Pilot survey and specialist consultation
Prior to distributing the questionnaires broadly, the author shared sample questions with five individuals to assess their clarity and determine if any additional questions were necessary Simultaneously, the questionnaires were sent to an instructor and a specialist for further refinement and completion.
Secondary data collection
The primary data is collected by the researcher However, to have the fundamental analysis for the result of the primary data, we need to collect the second data
Secondary data are mainly collected by desk data method (collect data at the desks) The source of such data includes:
(1) The basic theories related to leadership styles, employee retention and recruitment
(2) The prestigious articles which have the summary report for the recent research of the previous researchers
(3) The textbooks relate to the subject of the research
The analysis of secondary data will inform the development of a research model and hypotheses regarding leadership styles and employee retention, serving as the basis for the current situation chapter and proposed solutions.
This study, titled “The Impact of Leadership Styles on Recruitment and Employee Retention: The Case of RSM Vietnam Auditing and Consulting Co., Ltd,” explores the relationship between different leadership styles and their effects on attracting and retaining employees It employs two types of variables to analyze this dynamic within the organization.
The dependent variable (DV) is the outcome you aim to explain or predict within a model, influenced by other variables Commonly referred to as the response variable or result variable, it is typically represented by Y in statistical contexts and is plotted on the vertical, or Y, axis.
This research focuses on employee retention and recruitment as the primary dependent variables, influenced by factors such as staff turnover, employee commitment duration, and job satisfaction Key metrics include the length of time employees remain with the company, the staff turnover rate, and the organization's ability to attract top talent.
Independent variables (IVs) are essential components in statistical analysis, used to explain or predict changes in the dependent variable Their name reflects their self-contained nature, highlighting their role in modeling relationships within data.
Independent variables are defined as those that operate independently and remain unaffected by other variables within the model The focus of researchers is not on understanding the reasons behind the changes in these independent variables.
Independent variables, often referred to as predictors, factors, treatment variables, explanatory variables, input variables, x-variables, or right-hand variables, play a crucial role in regression equations as they are positioned on the right side of the equals sign Statisticians commonly use "Xs" in notation to represent these variables, which are typically plotted on the horizontal or X-axis of graphs by analysts.
This study uses several dependent variables, including: democratic leadership style, transactional leadership style, bureaucratic leadership style
These variables are determined based on the job satisfaction, the recognition of managers to employee, respect of the managers to employees, support of manager for development of employee
In the study performed in the year 2019, (Bachelor 2019) mentioned about the descriptive statistics analysis as follows:
Descriptive statistics will organize and summarize information of each variable through the calculation of various descriptive measures such as average, maximum, minimum, and standard deviation (Weiss, 2012)
The mean, or average value of a dataset, is calculated by summing all the data points and dividing by the total number of observations This statistical measure can be expressed using the formula: ̅ ̇.
N is number of observations in the current sample
Max and Min are the maximum and minimum values of the data in the current sample (Schwert, 2010)
Standard deviation quantifies the dispersion of data points around the mean, indicating how closely the values cluster around the average (Schwert, 2010) A smaller standard deviation signifies that the data points are closely packed between the lowest and highest scores, resulting in a narrower range around the average.
N = number of observations in the current sample
For this study, the independent variables include: Democratic leadership styles, transactional leadership style, bureaucratic leadership style.
Data analysis method
Quantitative methods prioritize objective measurements and involve the statistical, mathematical, or numerical analysis of data obtained through polls, questionnaires, and surveys, or by manipulating existing statistical data with computational techniques This approach to research is centered on collecting numerical data to generalize findings across various groups or to elucidate specific phenomena.
The primary aim of a quantitative research study is to explore the relationship between an independent variable and a dependent or outcome variable within a specific population Quantitative research designs can be categorized as either descriptive or analytical, allowing researchers to systematically analyze data and draw meaningful conclusions.
30 or experimental A descriptive study establishes only associations between variables; an experimental study establishes causality
Quantitative research deals in numbers, logic, and an objective stance Quantitative research focuses on numeric and unchanging data and detailed, convergent reasoning rather than divergent reasoning
Descriptive statistics summarize the fundamental characteristics of data within a study, offering straightforward insights about the sample and its measures Alongside basic graphical analysis, they serve as the foundation for nearly all quantitative data analyses It is important to note that descriptive statistics differ from inferential statistics.
This research employs questionnaires as the primary data source, ensuring their validity through preliminary testing Both validity and reliability tests are conducted to assess data quality effectively.
Validity testing is essential for determining the effectiveness of a questionnaire, as highlighted by Bachelor (2019) and Ghozali (2013) A questionnaire is considered valid if its questions accurately reflect the constructs it aims to measure The validity of the research can be assessed through the Correlated Item-Total Correlation, where an item is deemed valid if its r count exceeds the r table value and is positive at a significance level of 5% (0.05); otherwise, it is considered invalid (Ghozali, 2013).
Reliability refers to the extent to which measures are free from random error, emphasizing the consistency of scores obtained from assessment techniques over time and across different conditions (Lai, 2018; Anastasi & Urbina, 1997; White & Saltz, 1957) In this research, the focus on reliability includes an examination of internal consistency, utilizing Cronbach's coefficient alpha (α) as a widely accepted metric for evaluation.
To ensure accurate data collection and analysis, it is essential to ask various related questions for each dimension Leary (2004) emphasizes the importance of closely monitoring data entry and conducting regular audits to maintain reliability In this thesis, the researcher utilized Cronbach’s Alpha to evaluate the reliability of the questionnaire, following the assessment guidelines provided by George and Mallery (2005).
Table 3.4: Cronbach’s alpha Cronbach’s alpha
According to (Bachelor 2019) The normality test is needed to check whether the dependent variable or independent variable is normally distributed or not (Sugiyono,
The optimal regression model adheres to a normal distribution or approximates it closely Conducting a normality test is essential, as regression analysis relies on the assumption that residuals conform to a normal distribution (Erlina, 2007) The decision-making framework for the normality test is based on the Lilliefors (Kolmogorov-Smirnov) method, utilizing a significance level of 0.05 or 5%.
1 If the significance value is> 0.05 or 5% then the data is normally distributed
2 If the significance value is