2 DUY TAN UNIVERSITY INTERNATIONAL SCHOOL PSU DIVISION UNDERGRADUATE THESIS STUDY ON EMPLOYEE SATISFACTION ABOUT SALARY, BONUS AND REMUNERATION POLICIES AT DONG THANH TECHNOLOGY CO , LTD MAJOR BUSINES.
DUY TAN UNIVERSITY INTERNATIONAL SCHOOL PSU DIVISION UNDERGRADUATE THESIS STUDY ON EMPLOYEE SATISFACTION ABOUT SALARY, BONUS AND REMUNERATION POLICIES AT DONG THANH TECHNOLOGY CO., LTD MAJOR : BUSINESS ADMINISTRATION MENTOR : LE THI KHANH LY STUDENT : HOANG THI NGOC TRANG CLASS : K24PSU-QTH4 ID NUMBER : 24202808170 Danang, May 2022 TABLE OF CONTENTS CHAPTER 1: INTRODUCTION 1.1 REASONS FOR CHOOSING A RESEARCH TOPIC Firstly, the issue of salary, bonus and personnel treatment is certainly not strange to those who have been participating in the labor market This is one of the important elements of Human Resource Management According to research, the salary, bonus and remuneration policy is one of the top reasons why employees choose to work or quit Second, the study of employee satisfaction helps managers plan good employee retention and development policies, make employees more satisfied and limit the phenomenon of "brain drain" Therefore, in order to assess employee satisfaction about salary, bonus and remuneration, I boldly choose the topic "Study on employee satisfaction about salary, bonus and remuneration policies at the Company." Dong Thanh Technology Co., Ltd” 1.2 RESEARCH OBJECTIVES Systematize old theories and models related to the topic From there, build a new research model, examine the level of satisfaction as well as determine the factors that affect the employee's satisfaction with the salary and bonus policy Proposing a number of solutions to improve employee satisfaction and efficiency in human resource management of Dong Thanh Technology Co., Ltd 1.3 SUBJECT AND SCOPE OF RESEARCH • Research subjects - Subject of research: Satisfaction with salary, bonus and remuneration policies at Dong Thanh Technology Co., Ltd - Survey subjects: employees at Dong Thanh Technology Co., Ltd • Research period: The topic was studied during the internship period from February 14, 2022 to May 20, 2022 • Research space: Dong Thanh Technology Co., Ltd 1.4 RESEARCH METHODS • Qualitative research • Quantitative research 1.5 SIGNIFICANCE OF THE STUDY Thesis consists of chapters Chapter 1: Introduction Chapter 2: Research overview Chapter 3: Research Methods Chapter 4: Research results Chapter 5: Conclusion and solutions CHAPTER : RESEARCH OVERVIEW 2.1 THEORETICAL BASIS OF SATISFACTION WITH THE POLICY OF SALARY, BONUS AND REMUNERATION OF PERSONNEL 2.1.1 Theory of employee satisfaction 2.1.2 Theory of salary, bonus and remuneration policies for personnel 2.2MODEL OF PREVIOUS RESEARCH 2.2.1 Research by Nguyen Thi Hong (2015) factors affecting the level of employees' satisfaction is: salary; bonus; allowances, subsidize and welfare; compensation through work and compensation through work environment 2.2.2 Research by Vu Thuy Duong and Hoang Van Hai (2011) Pointed out factors: salary; bonus; stock; allowance; subsidize; welfare affect employee satisfaction 2.2.3 Research by Nguyen Khac Hoan (2010) Pointed out factors affecting employee's work motivation: Compensation through work environment; salary bonus and welfare; work arrangement; training and advancement opportunities and career prospects 2.2.4 Research by Nguyen Thi Thuy Quynh (2012) Pointed out factors: nature of work; promotion training; leader; colleague; salary, bonus; welfare; compensation through work environment affects employee satisfaction 2.3 SUMMARY OF RESEARCH MODELS 2.4 PROPOSED RESEARCH MODEL H1 Salary H2 Bonus H3 Employee satisfaction on Salary, bonus & remuneration Allowances, subsidies and welfare H4 Training and advancement opportunities H5 Compensation through work environment Figure 2.5: Research model proposes employee satisfaction about salary, bonus and remuneration policies 2.4.1 Salary H1: Salary has a positive effect on employee satisfaction in terms of salary, bonus and remuneration policies 2.4.2 Bonus H2: Bonus has a positive effect on employee satisfaction in terms of salary, bonus and remuneration policies 10 2.4.3 Allowances, subsidies & welfare H3: Allowances, subsidies & welfare has a positive effect on employee satisfaction in terms of salary, bonus and remuneration policies 2.4.4 Training and advancement opportunities H4: Training and advancement opportunities has a positive effect on employee satisfaction in terms of salary, bonus and remuneration policies 2.4.5 Compensation through work environment H5: Compensation through work environment has a positive effect on employee satisfaction in terms of salary, bonus and remuneration policies 2.4.6 Employee satisfaction on salary, bonus and remuneration policies 17 Reliability Statistics Cronbach's Alpha N of Items 884 Item-Total Statistics Scale Mean Scale Corrected Cronbach's if Item Variance if Item-Total Alpha if Item Deleted Item Deleted Correlation Deleted S1 9.66 9.256 704 867 S2 9.91 7.539 872 799 S3 9.79 10.194 564 913 S4 9.92 7.547 872 799 4.3.1.2 Cronbach's Alpha test for the factor "Bonus" Table 4.12: Cronbach's Alpha Test of Bonus factor Reliability Statistics Cronbach's Alpha N of Items 832 Item-Total Statistics Scale Mean Scale Corrected Item- Cronbach's if Item Variance if Total Alpha if Item Deleted Item Deleted Correlation Deleted B1 10.88 6.810 646 796 B2 10.31 5.572 693 779 B3 10.91 6.563 667 786 B4 10.86 6.648 657 790 18 4.3.1.3 Cronbach's Alpha test for the factor “Allowances, subsidies and welfare” Table 4.13: Cronbach's Alpha test of the factor Allowances, subsidies and welfare Reliability Statistics Cronbach's Alpha N of Items 891 Item-Total Statistics Scale Mean Scale Corrected Item- Cronbach's if Item Variance if Total Alpha if Item Deleted Item Deleted Correlation Deleted W1 18.84 15.856 750 866 W2 19.23 17.433 699 874 W3 18.84 15.554 765 863 W4 19.28 17.194 710 873 W5 18.79 16.530 707 873 W6 19.24 18.031 642 883 4.3.1.4 Cronbach's Alpha test for the factor “Training and advancement opportunities” Table 4.14: Cronbach's Alpha test of the factor Training and advancement opportunities 19 Reliability Statistics Cronbach's Alpha N of Items 886 Item-Total Statistics Scale Mean Scale Corrected Cronbach's if Item Variance if Item-Total Alpha if Item Deleted Item Deleted Correlation Deleted P1 7.61 3.597 871 754 P2 7.91 4.546 608 975 P3 7.50 3.396 878 745 4.3.1.5 Cronbach's Alpha test for the factor "Compensation through work environment" Table 4.15: Cronbach's Alpha test of the Compensation through work environment Reliability Statistics Cronbach's Alpha N of Items 850 Item-Total Statistics Scale Mean Scale Corrected Cronbach's if Item Variance if Item-Total Alpha if Item Deleted Item Deleted Correlation Deleted CTE1 11.20 6.840 723 794 CTE2 11.19 7.436 681 813 CTE3 10.88 7.091 721 795 20 CTE4 10.58 7.340 633 833 4.3.2 Cronbach's Alpha test for the dependent variable "Employee satisfaction" Table 4.16: Test Cronbach's Alpha factor Employee satisfaction Reliability Statistics Cronbach's Alpha N of Items 934 Item-Total Statistics Scale Mean Scale Corrected Cronbach's if Item Variance if Item-Total Alpha if Item Deleted Item Deleted Correlation Deleted SA1 10.21 4.395 832 918 SA2 10.41 4.043 863 908 SA3 10.70 4.174 845 914 SA4 10.92 4.251 839 915 4.3.3 Summary after checking the reliability of Cronbach's Alpha 4.4 EFA FACTOR DISCOVERY ANALYSIS 4.4.1 Factor analysis (EFA) for the independent variable 4.4.1.1 Testing the suitability of the EFA model (Kaiser-Meyer-Olkin) 4.4.1.2 Test of correlation between observed variables (Bartlett's test) 21 Table 4.17: KMO-EFA coefficient of employee satisfaction component KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy .875 Approx Chi-Square Bartlett's Test of Sphericity 3001.278 df 210 Sig .000 4.4.1.3 Test of extracted variance of factors (% Cumulative variance) 4.4.1.4 Test of Factor loading 4.4.2 Factor Analysis (EFA) for the dependent variable “Employee satisfaction” 4.4.2.1 Integration test of EFA (Kaiser-Meyer-Olkin) factor analysis model 4.3.2.2 Test the correlation between observed variables (Bartlett's Test) Table 4.20: KMO-EFA coefficient of employee satisfaction factor KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Bartlett's Test of Sphericity Approx Chi-Square 842 539.090 df Sig 000 4.4.2.3 Test of extracted variance of factors (% Cumulative variance) Table 4.21: Total variance extracted of employee satisfaction factor 22 nent Compo Total Variance Explained Total 3.341 83.534 83.534 296 7.412 90.946 199 4.985 95.931 163 4.069 100.000 % of Cumulati Total Variance ve % % of Cumulati Variance ve % 83.534 83.534 3.341 Extraction Method: Principal Component Analysis 4.4.2.4 Test of Factor loading Table 4.22: Factor loading EFA of the factor Employee satisfaction Component Matrixa Component SA2 926 SA3 914 SA4 910 SA1 905 Extraction Method: Principal Component Analysis a components extracted 4.5 MULTI-VARIABLE LINEAR REGRESSION ANALYSIS 4.5.1 Check the correlation matrix between the factors Table 4.23: Test results of correlation coefficient r Correlations SA S B W P CTE 23 Pearson 744** 746** 745** 779** 744** 000 000 000 000 000 160 160 160 160 160 ** ** ** 465** Correlatio SA n Sig (2tailed) N Pearson 160 744 ** 402 487 437 Correlatio S n Sig (2- 000 000 000 000 000 tailed) N Pearson 160 160 160 160 160 160 746** 402** 592** 545** 444** 000 000 000 000 000 160 160 160 160 160 160 745** 487** 592** 542** 478** 000 000 000 000 000 160 160 160 160 160 160 ** ** ** ** 581** Correlatio B n Sig (2tailed) N Pearson Correlatio W n Sig (2tailed) N P Pearson Correlatio n 779 437 545 542 24 Sig (2- 000 000 000 000 000 160 160 160 160 160 160 744** 465** 444** 478** 581** 000 000 000 000 000 160 160 160 160 160 tailed) N Pearson Correlatio CT E n Sig (2tailed) N 160 ** Correlation is significant at the 0.01 level (2-tailed) 4.5.2 Testing of model fit (Adjusted R Square, ANOVA) 4.5.2.1 Model Interpretation Level (Adjusted R Square) Table 4.24: R Square analysis of the fit of the regression equation Model Summaryb Std Adjuste R Error of DurbinModel R dR Square the Watson Square Estimate 975a 0.951 0.949 0.15258 1.92 a Predictors: (Constant), CTE, B, S, W, P b Dependent Variable: SA 25 From the table above, we can see that adjusted R2 = 0.951 (test, Sig = 0.000 ≤ 0.05) 95.1% change in SA_employee satisfaction is explained by independent variables 4.5.2.2 Model fit: Analysis of variance ANOVA Table 4.25: ANOVA analysis of the fit of the regression equation ANOVAa Model Sum of df Mean Squares Regression Sig Square 69.286 13.857 3.585 154 023 72.871 159 Residual Total F 595.211 000b a Dependent Variable: SA b Predictors: (Constant), CTE, B, S, W, P 99% confidence (Sig ≤ 0.01) Show that the theoretical model is consistent with reality The independent variables have a linear correlation with the dependent variable in the model 4.5.4 Testing of regression coefficients and multicollinearity (Multiple Collinearity) Table 4.27: Regression coefficient of employee satisfaction factors Coefficientsa Model Unstandardized Coefficients B Std Error Standa rdized Coeffi cients Beta t Sig Collinearity Statistics Tolera nce VIF 26 (Con 0.044 0.067 stant) S 0.231 0.015 0.217 0.02 B W 0.146 0.02 P 0.181 0.017 CTE 0.188 0.018 a Dependent Variable: SA 0.329 0.263 0.175 0.256 0.243 0.661 0.51 15.15 11.116 7.129 10.378 10.41 0.00 0.00 0.00 0.00 0.00 0.679 0.57 0.531 0.526 0.588 1.472 1.754 1.883 1.901 1.699 4.5.5 Testing the hypotheses of the research model 4.5.5.1 Regression model with unnormalized regression coefficient The regression model is of the form: Y = 0.44 + 0.231X1 + 0.217X2 + 0.146X3 + 0.181X4 + 0.188X5 4.5.5.2 Regression model with normalized regression coefficient Y = 0.329X1 + 0.263X2 + 0.175X3 + 0.256X4 + 0.243X5 Or: Employee satisfaction = 0.329Salary + 0.263Bonus + 0.175Allowances, subsidies and welfare + 0.256 Training and advancement opportunities + 0.243Compensation through work environment Table 4.29 Order of influence of factors on employee satisfaction Order of No Variable Standard Beta % S 0.329 25.99% B 0.263 20.77% influence 27 W 0.175 13.82% P 0.256 20.22% CTE 0.243 19.19% 1.266 100% Total 4.5.6 Test the model's hypotheses Conclusion: Through the tests, it can be confirmed that the factors affecting employee satisfaction at Dong Thanh Engineering Co., Ltd in order of importance are: S_Salary, B_Bonus, P_ Training and advancement opportunities, CTE_Compensation through work environment, W_ Allowances, subsidies and welfare CHAPTER 5: CONCLUSIONS AND SOLUTIONS 28 5.1 SUMMARY OF RESEARCH RESULTS 5.2 SOME PROPOSED SOLUTIONS TO IMPROVE EMPLOYEE SATISFACTION ON SALARY, BONUS AND RECOMMENDATION POLICY AT DONG THANH TECHNOLOGY CO., LTD 5.2.1 Salary solution According to research, due to some objective factors from the affiliated banks, many employees are not paid on time The company needs to overcome this phenomenon of late payment of wages by talking with the bank or changing to another affiliated bank to meet the on-time payment of wages and meet the convenience of employees when receiving wages The company needs to improve the salary increase plan for employees in a specific way, and widely disseminated to all employees for employees to know and strive for 5.2.2 Bonus solution The reward system must be administered carefully, meticulously, and without bias The company should provide the norms (%) of work completion for each rating level 1,2,3 very specific and detailed to facilitate the clear and fair reward among employees The company should diversify bonuses so that they are worthy of their contributions and dedication such as loyalty bonus (seniority), bonus for guaranteeing working day, bonus for well observance of the Company's rules and regulations 29 In addition to cash rewards, the company needs to have specific material rewards, or certificates of merit 5.2.3 Solutions for Allowances, subsidies and welfare The company needs to make full payment of insurance (social insurance, health insurance, unemployment insurance) for employees at the company Currently, the company's employees are really not satisfied with the guarantee of free parking, as well as ensuring the coolness For employees, the car is not only a means of transportation but also their property, so the company needs to have its own policies or can cooperate with other contractors or the main unit at the construction site to have There may be a safe, cool and free parking space for employees 5.2.4 Solutions on training and advancement opportunities Create conditions for employees to receive new jobs that they have not done before but are able to do; should let employees have opinions when participating in meetings Regularly check on employees during work, help them when needed Implement a number of effective career development programs and create special promotion opportunities for senior staff For great contributions, there should be commensurate rewards to encourage employees 5.2.5 Solutions on compensation through work environment 30 The company should arrange work with a reasonable time by making a clear division of work each day, and notify the specific plan before proceeding to let all employees know The company needs to provide some more equipment for employees, specifically, the company should invest in more transport vehicles for the delivery and construction department The company should invest in more color printers, large photocopiers, and other machinery for outdoor construction Renovate the working area for employees to make it more airy Organize more picnics, games and competitions for employees, so that they have the opportunity to get close to each other and understand each other better so that employees feel attached to the business 5.3 MEANING OF THE STUDY Research results show that the majority of employees of Dong Thanh Technology Co., Ltd feel satisfied with the salary factor in the policy, accounting for the highest percentage At the same time, the research results also give some suggestions to improve employee satisfaction about salary, bonus and remuneration policies at Dong Thanh Technology Co., Ltd 5.4 LIMITATIONS OF THE RESEARCH 5.5 FURTHER RESEARCH DIRECTIONS Expand the scope of research in Da Nang as well as nationwide, continue to adjust the scales to be more suitable Conduct studies over long periods of time and iteratively to better assess changing trends 31 Expanding the survey sample size, the method of sampling according to the probability rule will give more accurate and more representative conclusions for the study population ... proposes employee satisfaction about salary, bonus and remuneration policies 2.4.1 Salary H1: Salary has a positive effect on employee satisfaction in terms of salary, bonus and remuneration policies. .. "Study on employee satisfaction about salary, bonus and remuneration policies at the Company." Dong Thanh Technology Co., Ltd? ?? 1.2 RESEARCH OBJECTIVES Systematize old theories and models related... variable ? ?Employee satisfaction on Encod e salary, bonus and remuneration policies? ?? Employee satisfaction with Source remuneration policy 15 SA1 Satisfied with the salary and bonus policy Satisfied