DUY TAN UNIVERSITY

MANAGING EMPLOYEE RETENTION

IN A SMALL STARTUP
- Lessons from ABC Company -

Class : HRM 301 AM

Lecturer : Dr. Nyheim David Peter
Huỳnh Thị Ngọc Hiền
Group : Sweet and Spicy
Members : Nguyễn Nữ Hoàng Anh
Nguyễn Thi Tú Anh
Cao Nguyệt Hà
Dương Phương Thảo
Nguyễn Thị Bích Trâm
Ngô Phạm Uyên Vy

Đà Nẵng, 2023
Table of Contents

1. Scenario:.................................................................................................................. 3
2. Summary of the Situation:......................................................................................3
2.1. Ms. Hannah........................................................................................................3
2.2. ABC Company...................................................................................................3
2.3. HR Department..................................................................................................3
3. Possible Courses of Action:...................................................................................3
4. HR's Responsibilities - Persuading Ms. Hannah to Continue Working:.............4
4.1. One-on-One Discussion with Ms. Hannah......................................................4
4.2. Listen and Identify the Reasons......................................................................4
4.3. Present Ideas and Proposals...........................................................................5
5. Potential Scenarios and Solutions:.......................................................................5
6. Lessons Learned:....................................................................................................6
6.1. Establish Contingency Plans...........................................................................6
6.2. Understand Employees' Personal Development Goals.................................6
6.3. Listen and Communicate Effectively with Employees..................................6
6.4. Properly Allocate Responsibilities and Workloads for Productivity and
Risk Reduction............................................................................................................6
 1. Scenario:
Ms. Hannah is a Senior with 3 years of experience at ABC, a small-scale startup company with
50 employees. She has been with the company since its early days, understands the business
situation well, and has made significant contributions to the company. Currently, she is leading a
sales team and also plays the role of an assistant to the director. In a month, the company will
enter the fourth quarter, which is the peak season for the market - this period lasts for three
months but contributes more than 80% of ABC's annual revenue. However, Ms. Hannah has
submitted a resignation letter stating that her personal development goals no longer align with
the company.
In reality, ABC is a small-scale company with limited opportunities for career advancement for
Ms. Hannah. But if she leaves now, the company will face significant challenges. Therefore, the
director wants the HR manager to have a direct conversation with Ms. Hannah and find a way to
retain her, at least until the end of the quarter.

2. Summary of the Situation:

1.1. Ms. Hannah
 Position: Senior
 Title: Head of Sales Team (also serves as an assistant to the director)
 Tenure: 3 years
 Submitted resignation letter citing a mismatch in personal development goals
1.2. ABC Company
 ABC - A small-scale startup company with 50 employees
 Preparing to enter the fourth quarter, which is the peak season for the market
1.3. HR Department
 No backup plan for personnel in the position of the Head of Sales Team
 Recruiting and onboarding for the Head of Sales Team position before the fourth
quarter is challenging

3. Possible Courses of Action:

 Option 1: Persuade Ms. Hannah to continue working at least until the end of the fourth
quarter.
 Option 2: Internally recruit another employee within the company to replace Ms.
Hannah's role as the Head of Sales Team.
 Option 3: Hire an external Head of Sales Team.

Pros Cons

Option 1: Persuade  Ms. Hannah understands the company, the  Ms. Hannah has already
Hannah to continue business situation, and has made submitted her resignation, so
 working at least until significant contributions, so her continued persuading her to stay might make
the end of the fourth presence can provide stability for the sales her feel pressured, dissatisfied,
quarter department during the critical fourth and less motivated, affecting her
quarter. work performance.
 No need to invest time and resources in
the recruiting and training process for a
new hire.

Option 2: Internal  Provides an opportunity for internal career  Requires time to search for and
recruitment of another growth and demonstrates the company's train a new employee.
employee within the commitment to internal development.
 No guarantee that the new person
company to replace
 No need to persuade Hannah to stay if she will fully replace Hannah's role in a
Hannah as the
doesn't want to. short time.
Business Team Leader.

Option 3: External  Can quickly find someone with the  Requires time and money to
recruitment of a required skills and experience for the Head search for and train a new
Business Team Leader. of Sales Team position. employee.
 No need to persuade Hannah to stay if she  The new person may need time to
doesn't want to. adapt and understand the
company.

In this case, the best approach might be a combination of Option 1 and Option 2. Persuade Ms.
Hannah to stay at least until the end of the fourth quarter while simultaneously beginning the
search for an internal candidate to replace her, ensuring stability during this critical period and
preparing for the change when necessary.

4. HR's Responsibilities - Persuading Ms. Hannah to

Continue Working:
1.1. One-on-One Discussion with Ms. Hannah
Arrange a private meeting with Ms. Hannah to discuss the current situation. Ensure that the
conversation takes place in a comfortable and private space where she can openly share her
challenges and concerns.
1.2. Listen and Identify the Reasons
HR needs to delve deeper to understand why Ms. Hannah wants to resign and no longer aligns
with her personal development goals. Listen to Ms. Hannah's perspective and explore if there
are ways to adjust or improve the situation.
Some underlying reasons that may have influenced Ms. Hannah's decision to resign could
include:
 Conflicts in relationships with colleagues (superiors, subordinates, or other
departments).
 Dissatisfaction with the company's salary, benefits, or work-life balance.
 Lack of learning, development, and advancement opportunities.
 Workload due to multitasking and multiple responsibilities.
  An unsafe or uncomfortable work environment.
 Inadequate or dysfunctional equipment for work.
 Incompatible working hours.
 etc.
1.3. Present Ideas and Proposals
HR should strongly emphasize Ms. Hannah's contributions to the company and the importance
of her presence during the peak season, highlighting the potential negative impacts of her
departure. Additionally, HR should propose solutions to help Ms. Hannah find a suitable
direction within the company.
 Provide support and training: If Ms. Hannah is facing emotional or skill-related
challenges, HR can suggest providing psychological support or training programs to
help her overcome difficulties and develop in her role.
 Suggest benefits and development opportunities: HR should introduce new and
appealing benefits or development opportunities that the company can offer to Ms.
Hannah. This could include a salary increase, promotion, or involvement in important
projects.
 Create a positive work environment: HR can collaborate with other team members in
the company to build support and create a positive work environment where Ms.
Hannah feels valued and meaningful in her work.
 Present arguments about future potential: HR should outline the prospects and
potential that the company will provide in the future, especially during the peak
season and beyond. This could be an exciting opportunity for Ms. Hannah to advance
her career and establish a long-term connection with the company.

5. Potential Scenarios and Solutions:

Scenario Solution

Scenario 1: Hannah agrees to
stay until the end of the fourth
quarter
 If Hannah agrees to stay, establish a specific plan to ensure her
performance during the critical fourth quarter.
 Develop a post-fourth-quarter development plan for Hannah,
including opportunities for promotion or role development.

Scenario 2: Hannah agrees to
stay but remains dissatisfied
and affects work performance
 Regularly communicate with Hannah to monitor the situation and
address any issues she may encounter.
 Consider proposing solutions such as job role changes or
redistributing responsibilities to improve her satisfaction.

Scenario 3: Hannah refuses
to stay and accepts a
temporary agreement (e.g.,
staying for a specific period)
 Review the terms of the temporary agreement, including the duration
and conditions.
 During this period, actively search for a replacement and ensure a
smooth transition when Hannah leaves her position.

Scenario 4: Hannah refuses  Agree with Hannah on her last working day and handle resignation
 to stay and wants to resign procedures.
immediately, but the company
 Propose a suitable internal candidate and arrange a seamless
can find an internal
transfer of responsibilities to minimize the negative impact on the
replacement
company.

Scenario 5: Hannah refuses  Attempt to persuade Hannah to stay at least until a suitable
to stay and wants to resign replacement is found.
immediately, and the
 Rapidly search for and hire a replacement to minimize the impact of
company has not found a
Hannah's sudden departure.
replacement

6. Lessons Learned:
1.1. Establish Contingency Plans
In this situation, the HR department lacked preparation and human resource planning.
Therefore, HR needs to:
 Always be ready to face emergency situations such as losing key employees by
consistently building backup plans and searching for contingency human resources.
 For critical positions, the company should always have a ready-to-go replacement
plan, including training internal employees or seeking external candidates. This helps
minimize negative impacts when there are changes in the department.
1.2. Understand Employees' Personal Development Goals
It's essential to understand that some employees may have individual career development goals
and may not stay with the company for an extended period. However, efforts should be made to
optimize their time and performance during their tenure.
1.3. Listen and Communicate Effectively with Employees
The HR process of evaluating and managing employees should ensure that employees are
listened to and have the opportunity to discuss important decisions. This helps create
satisfaction and consensus, even when facing changes.
1.4. Properly Allocate Responsibilities and Workloads for Productivity and Risk
Reduction
The HR department should have a clear understanding of each employee's workload and
responsibilities in the company.
Collaborating with other department managers and top-level management to efficiently allocate
tasks and human resources is vital. Creating diversity in positions and ensuring that no
individual plays an "irreplaceable" role can help reduce risks when someone unexpectedly
departs. In this case, considering adding a Sub-Leader position could be an optimal solution to
enhance stability and replaceability in the company's sales department.
Some benefits that can be gained include:
 Increased stability and continuity: A Sub-leader can ensure continuity and stability in
team management when the team leader is absent or leaves abruptly. This helps
reduce risks and disruptions in the team's work.
  Workload and responsibility allocation: The Sub-leader role helps distribute tasks and
responsibilities within the team more effectively. This prevents the team leader from
being overwhelmed and allows them to focus on more strategic tasks.
 Internal talent development: The Sub-leader position provides opportunities for
internal employees to develop and advance further in their careers. They can
accumulate management and leadership experience through their responsibilities.
 Enhanced work performance: By dividing tasks and responsibilities, the Sub-leader
can help improve the team's work performance. They can concentrate on specific
tasks and ensure that work is completed on time and with quality.
However, an evaluation of the organizational structure, human resources, and financial
resources should also be conducted to make appropriate adjustments, ensuring maximum
benefits for the company.