THEORETICAL BASIS OF THE LOYALTY OF STAFF AND
The concept of loyalty
Loyalty is an employee who intends to stay long with the organization / business; will stay with the same organization / business even if there is a relatively more attractive salary offer (Stum 1999-2001)
According to Johnson (2005), employees "are more professionally loyal to employers" and "the nature of the relationship between employees and employers has changed substantially and needs to be reevaluated loyalty concept ”according to Tran Thi Kim Dung & Nguyen Thi Mai Trang (2007, p.19-20)
There have been many studies of employee loyalty with many different approaches
According to Allen, N.J., & Meyer, J.P (1990) focused on 3 psychological states of employees when connected with the organization Staff can be loyal to the organization:
- Because of their true feelings, they will stay with the organization even if other places pay higher wages
- Because they don't have a chance to find a better job
- And maybe because of the moral standards they pursue
The Loyalty Research Center (1990) defined employee loyalty as employee engagement with organizational success and believing that their best choice is to work for this organization Not only do they implement plans to survive with the organization but they are also not proactive in seeking opportunities to change jobs as well as not responding to other attractive offers According to this definition, plan to quit
The intention to leave the employee's job is the intention to leave the current working environment to switch to another working environment (Vo Quoc Hung &
Cao Hao Thi, 2010) In general, employees often work for an organization that wants to meet their needs and feel satisfied with their work Once the needs are not met, feeling unsatisfied with the job, the intention to leave to find another organization is inevitable Thus, there is a correlation between demand and satisfaction for work to the attachment, loyalty of employees to the organization
(Tran Kim Dung, 2005) Therefore, it is necessary to present the theory of employees' needs and satisfaction in order to consider the relationship with employee loyalty, based on which hypotheses are proposed for this study.
Expression of loyalty, measurement of loyalty [12]
Firstly, tell your boss what your boss wants to hear the least: When employees and bosses are farther away from their ranks, fewer employees will disagree with the boss For example, new employees who join the company often absolutely comply with all boss's opinions and instructions without any comments But that doesn't mean they always feel satisfied And when those employees' dissatisfaction peaks, they often resolve themselves by quitting Meanwhile, direct reporters who work closely with their bosses may have mixed views with their boss They are loyal employees, willing to point out the wrong points of the boss, tell the boss what the boss wants to hear the best with the willingness to want the job to be better
Secondly, treat your boss as a person: A student can always watch his teacher as an idol with a very standard and standard image But the student is also difficult to accept the image of the teacher he loves in the form of "morale" of an ordinary person in society Similarly, many employees look at the boss like a person who is always strong, strong, powerful and often keeps distance from his boss But loyal employees do not place heavy relationships between bosses and employees that way They understand boss in every corner of their work and personal life Loyal employees understand that the boss always wants to help them achieve their career goals and in their personal lives, expecting their employees to have the best On the contrary, they also want their boss to meet the best in their work and personal life
Thirdly, never criticize your boss before others: Employees can criticize your boss as a way to reduce stress but most people do this because they think your boss is not superior to yourself They also find ways to "erode" the respect that the boss has worked so hard to deserve from everyone around Loyal employees will not do so They didn't talk, bad boss said behind They always show respect for the boss even if the boss is not in front of them
Fourth, show disagreement with your boss privately: Arguing and disagreement are healthy for an organization Loyal employees believe they can freely share their views with their boss, analyzing the advantages and disadvantages of their boss's decisions They also believe that the boss is willing and eager to listen to their comments for the sake of the boss and the company However, unlike loyal employees, they will do the above things with their boss skillfully and privately
Fifth, openly support all boss decisions: Even if you disagree with your boss about a decision, loyal employees will not try to find a way to prove that your boss is wrong Conversely, in front of people, loyal employees will do everything to prove their boss is doing the right thing
Sixth, notice to the boss when he wants to quit his job: No boss wants to lose his loyal employees But sometimes, loyal employees are forced to say goodbye to bosses and companies to pursue better opportunities, to enter a new field, to set up their own company or just want to lifestyle changes However, these employees always understand that their departure will leave their boss and a hole in the staff and therefore, they will foreshadow their plan so that the boss has enough time to prepare.
The role and benefits of loyalty to the organization [9]
As mentioned above, employee satisfaction is extremely important in any organization, big or small The satisfaction of employees has a two-way effect, both with the organization and the employees themselves, but the level and intensity are
For organizations, Employee satisfaction affects all aspects of corporate operations including:
The first is increasing personnel performance Employees who are satisfied with the work will have better, more devoted, devoted attitude and active learning and development in their work This increases the overall productivity of the company and helps the company achieve its goals
The second is to maintain and stabilize the human resources in the company, satisfied employees will have a spirit of attachment to higher enterprises, less affected by outside offers Besides, employees will appreciate the collective benefits because when they want to stick, they will "take care", "build" and "protect" their common home
Third, when employees are satisfied with their work, they will treat customers better and therefore customer satisfaction is also greater
Fourth, the staff will communicate the company outside and that helps the company attract talents, build good image in the eyes of customers and partners
Fifth, the Company will save money for training new candidates and recruiting candidates
Sixth, the Company will minimize the errors in the process of work as well as the process risks by more responsible, enthusiastic employees so they always strive to do better their work
As for employees, the satisfaction of employees at work not only helps them stick with businesses, but also reinforces their love of business Employees will start to care about their work instead of worrying about other issues, they feel responsible for the organization and try to create better results to gain appreciation from the company
They will also deal with customers better and build strong relationships with them.
Factors affecting loyalty
Wages are both an expensive and an asset Expensive costs reflect through labor costs In the service sector, labor costs account for about 50% of the total cost However, remuneration is also an asset because it motivates employees to make efforts It is a potential to affect employees' work behavior, motivating more productive employees Wages help employees improve their work, increase productivity and lower the number of people who quit their jobs
Some companies want to lead in higher salaries than other companies These companies want to attract talent because they think that paying higher wages than other firms will attract highly qualified candidates Some companies apply a salary policy that is lower than the current salary There are two reasons why these companies pay low wages; one is that the company falls into a difficult financial situation; secondly, they think that they do not need good workers to do simple jobs But studies have shown that paying low wages does not mean saving a sum of labor costs On the contrary, the company will be more expensive, because workers will not be productive, the rate of good people leaving will be high to find other places to pay higher wages
According to Tran Kim Dung (2003), the remuneration is always one of the most challenging issues for managers in all businesses Enterprises often have different views and goals when setting up a pay system, but generally businesses aim to four basic objectives:
Attracting employees: The recommended salary is often one of the most basic factors for a candidate to decide whether to accept a job at a business The higher the wage paying enterprises are, the more likely they are to attract good candidates from the local market
Maintaining good employees: to maintain good employees for businesses, high pay is not enough, but also must show fairness within the enterprise When employees find that businesses pay them unfairly, they will often feel uncomfortable, inhibited and depressed, even leaving the business
Stimulating and motivating employees: If the policies and governance activities in the enterprise let employees realize that their efforts, hard work and good performance will not be compensated adequately They will not try to work anymore, gradually, can form passive, passive among all employees of the business regarding labor pay in enterprises often focus on the following issues: the minimum wage regulation, the time and the thing labor law, regulations on child labor, allowances in wages, regulations on social welfare such as social insurance, sickness, maternity, labor accidents,
All employees want to be rewarded for their contributions or contributions in certain ways Workers who can get in an organization are not just money and not all people work for money Money will be a strong encouragement for low-skilled workers and those pursuing material wealth, but money has little impact on those who like to do challenging jobs Therefore, reward must be directed towards satisfying the individual needs of employees
The theory of expectation indicates that workers will not pursue rewards when they realize rewards are not attainable Therefore, the forms of material encouragement must be designed in such a way that it will create employee confidence in the connection between reward and effort
Moreover, the reward must show personal justice (compare the effort spent with the rewards received) and social justice (compare your efforts and rewards with others) under the same conditions) If rewards do not give employees an awareness of fairness, it is difficult to have good activities of workers
In addition, to encourage employees 'efforts towards achieving the organization's objectives, rewarding must be associated with the results and effectiveness of the performance of employees' tasks
According to Tran Kim Dung (2003), welfare shows the interest of enterprises to the lives of workers, which stimulates loyal and attached employees to enterprises Business benefits include: Social insurance and health insurance; retire; leave, holidays; lunch is covered by the enterprise; business subsidies for large or disadvantaged employees; Business gifts for employees on birthdays, weddings, happy parents and staff
For Nguyen Huu Than (2001), welfare consists of two main parts: regulatory and welfare benefits that are voluntarily applied by companies in part to stimulate employee incentives, and partly to maintain and attract talented people to work for the company Voluntary benefits are health insurance programs, health insurance programs, types of services, programs that pay for harmful benefits - hazards and other subsidies such as grants to establish centers, child care center when their parents work or a program to diagnose and treat public blood pressure Each company has many initiatives for different types of subsidies, but all have a common goal of encouraging employees to work, feel secure to work, and stick with more agencies
The working environment is always concerned by workers because the working environment is related to personal convenience but it is also a factor that helps them to fulfill their tasks Workers do not like dangerous, unfavorable and inconvenient working environments Temperature, light, noise, and other environmental factors must be appropriate Moreover, many workers prefer to work close to home, with clean, modern working facilities and appropriate equipment
People get from work from many things, not just money and achievements
For most workers, work also satisfies the need for interaction Therefore, it is not surprising that people who collaborate and support will increase job satisfaction
Behavior of leaders is also a key factor determining satisfaction Employee satisfaction increases when their leader is knowledgeable, friendly, and gives praise when workers perform well, listening to employees' opinions, and know about the interests of workers
In order for employees to wholeheartedly serve the business, the superior communication technique for their subordinates is very important Administrators create a friendly atmosphere, trust in employees, pay attention to building good relationships, behave courteously, respect employees, pay attention to their opinions, not force they are more powerful, but by their true reputation, the more they promote their talents, stimulate them to work harder and be more effective
1.4.4 Leadership style [13] influence, encourage encouragement and direction for the activities of the executives to achieve the common goals of the organization, at the same time Based on some theories show that Leadership has a positive influence on employee loyalty
Theories aimed at understanding the factors affecting employee loyalty
In the system of management theory and encouragement, Abraham Maslow's theory of demand hierarchy (1943) is a theory that has a vast understanding A
Maslow believes that human behavior stems from human needs and needs arranged in a priority order from low to high in importance Demand levels are arranged into the following five levels:
The basic needs or physiological needs: it is the need related to the essentials to survive such as food, air, housing, clothing, Within the organization, this demand is expressed mainly in salaries and benefits
Safety needs: including personal safety such as no attack, threatening war, natural disasters; financial safety such as economic crisis, unemployment; Health safety such as no sickness, accidents, etc In the organization, this demand is reflected in the safety of the work, the protection of labor, long-term stable work,
Social needs: When the needs of physiology and safety are satisfied, the third higher demand appears that is the need for social relations such as friends, family, and community participation social, loved,
Needs are respected: Everyone has a need to be respectful and respectful
Respect comes from people wanting to be accepted and valued by others In the organization, this need represents being organized to recognize employees' contributions, work in a high position and increase responsibility
Demand for self-affirmation: This is the highest and most unsatisfactory demand in Maslow's demand ladder This is the need to express each person's "I"
More specifically, at this level people have the need to develop their own capacity and improve themselves In the organization, this need is reflected in the training, coaching, advancement, and the opportunity to promote the capacity and creativity
A Maslow divided the needs into two levels: high and low Low-level needs are physiological and safety and security needs High-level needs include social needs, need for respect and the need to assert themselves
A Maslow said that satisfying lower-level needs is easier than satisfying high-level needs because low-level needs are limited and can be satisfied from the outside He argued that first-class needs work, it requires satisfaction and so it motivates people to act - it is a motivating factor When these needs are satisfied, it is no longer a motivating factor, then higher level needs will appear
Maslow’s demand theory has an important implication for managers that to motivate employees it is important to understand what level of needs your workers are at From that understanding allows you to devise appropriate solutions for satisfying employees’ needs while ensuring organizational goals
1.5.2 Two-factor theory by F Herzberg
The two-factor theory is given by Frederick Herzberg, an American psychologist He surveyed the sample with the objects of accountants and engineers
Each person will be interviewed about his or her work to find out positive (satisfied) or non-positive (dissatisfied) factors that affect job satisfaction The analytical results have identified two groups that have conflicting effects on work, specifically shown in the following table:
Table 1Motivating and maintaining elements of F.Herzberg
Achievement Company management policies and regulations
F Herzberg's two-factor theory makes sense for managers to please employees Managers must first improve the retention factors before they want to increase their employee motivation Each person will have different feelings about these two groups of factors, because it may be one factor that motivates this person but is the maintenance of others and the tendency of motivating factors over time becomes weak Maintenance factor Therefore, managers need to always find solutions to enrich the work of employees because that will contribute to creating more motivational factors
1.5.3 Expected theory of Victor H.vroom
Victor H Vroom believes that encouragement is the result of an individual's expectations The encouragement of people depends on two factors, the level of the individual's desire to deal with the job and how the individual thinks about the job and how it will be achieved Therefore, to motivate workers, we need to pay attention to the perceptions and expectations of individuals in terms of situation, rewards, ease of implementation in a way that will reach rewards and guarantees Make sure the reward is paid Theory expects that managers must understand employees' expectations and align these expectations with organizational goals For this, the administrator should: create the outcomes that the employee desires, create the need to implement to achieve the organizational goals, ensure the desired level of performance can be achieved, closely linked expected results with the necessary implementation, assessing the situation with different expectations, ensuring the reward is sufficiently attractive and fair for everyone (Nguyen Huu Lam, 1996, p .127-128)
Fair doctrine states that workers compare what they put into a job (input) with what they receive from that job (output) and then compare the input-output ratio of them with the input-output ratio of others If their rate is equal to the rate of others, it is assumed that there is a fair situation If this rate is not equal, they think there is an injustice When unfair conditions exist, employees will make efforts to correct them
Fair doctrine implies that when employees visualize injustice, they may have one or more of the following five possibilities:
Distort the inputs or outputs of yourself or others
Behave in a way to make others change their inputs or outputs
Behave in a way to change their own inputs or outputs
Choose another comparison criterion for comparison
Quit The doctrine of fairness recognizes that individuals are not only interested in the sheer volume of rewards they receive for their efforts, but also the relationship between that mass and what others receive Inputs, such as effort, experience, educational level and talent, are compared with outputs such as wages, salary increases, recognition and other factors When people realize that there is a difference in their input-output ratios compared to others, there will definitely be tension This tension provides the basis for motivation, when people strive to gain what they consider to be fair and satisfactory
Employee motivation is greatly influenced by relative rewards as well as absolute rewards When employees are aware of an injustice, they will take actions to correct this situation The result may be higher or lower productivity, better quality or less, increased absenteeism, or voluntary resignation.
Some previous research on employee loyalty
The fact shows that organizational leadership and culture have an impact on the loyalty of specific employees:
New leaders in substance affect employee loyalty, but this is not true in foreign-invested enterprises Due to the fierce nature of foreign-invested enterprises, many employees, although still achieving good working results, cannot bear the high pressure of work for a long time to accept to transfer to another company
New culture - supporting with creating a supportive, goal-oriented work environment, creating excitement for everyone, has a good effect to keep employees It has an effect on employee loyalty in all three types of business ownership
Administrative culture; Administrative culture does not affect employee loyalty in domestic businesses but has an impact on employee loyalty in foreign- invested enterprises When applying to work in foreign-invested enterprises, workers have been looking forward to working in a professional working environment, if this is not achieved, workers can easily leave the business In contrast, when agreeing to work for domestic enterprises, workers often easily mimic and accept administrative tables, non-professional manners and practice adapting to businesses
Vu Khac Dat (2008) Research on factors affecting the loyalty of employees in the South, Vietnam Airlines, the author studied the following six factors:
4 Treatment: Combining from two factors: Wages and Welfare
5 Operating environment: combining from 2 elements of Colleagues and Working Conditions
The results of the author's research show that the most powerful factors affecting employee loyalty are environmental factors Both leadership and work factors have a positive impact on the employee's overall satisfaction as well as their loyalty to the company Therefore, measures to increase the satisfaction of employees in the company by impacting on these two factors as well as increasing their loyalty to the company
Research of Turkyilmaz, Akman, Coskunozkan and Pastuszak (2011) This study aims to evaluate the factors affecting employee satisfaction and loyalty in the organization
The results of quantitative analysis show that factors such as training and development, compensation and recognition, authorization, group activities and working conditions will increase satisfaction At the same time there is a significant impact of satisfaction on loyalty of employees, according to the authors' conclusion after evaluating the analysis results, the above factors will indirectly affect loyalty of employees in the organization Research by Mehta, Singh, Bhakar & Sinha
Figure 1Calibration model in research of Turkyilmaz, Akman, Coskunozkan and Pastuszak (2011)
This study assesses the direct impact of factors on employee loyalty in the company
The results of quantitative analysis show that factors such as career development, work motivation, cohesion, work safety, leadership style and cohesion will directly affect the loyalty of people All of these relationships are positively related, which means that the increased results of these independent factors will enhance employee loyalty in the company Research by Ahmad Ismail Al-Ma’ani (2016) This study assesses the direct impact of factors on employee loyalty in the company
By quantitative analysis the author has synthesized and proposed a model to study the impact of factors such as staff recruitment, training opportunities, authorization and motivation of employees, these factors impact on employee loyalty in the organization With analysis based on a sample of 618 employees, the results show a significant impact of all the above variables Ajami's study (1998) This study assesses the direct impact of factors on employee loyalty in the company in Kuwait
Career Development Motivation to work Connection
Cohesion Safe working Leadership style
Figure 2Calibration model in Mehta's study, Singh, Bhakar & Sinha (2010)
Figure 3 Calibration model in the study of Ahmad Ismail Al-Ma’ani (2016)
Research results show that employee loyalty has a meaningful relationship with employee satisfaction and also shows a relationship with supervision, communication, advancement, and lips The school works at the company
Research by Kumar & Skekhar (2012) This study assesses the direct impact of factors on employee loyalty in the company in India
The research results show that, with the analysis results from the survey, it is said that salary, recognition of roles, rewards, authorization, active participation in
Participate in the development of the company
Figure 4 Correction model in Ajami's study (1998)
Figure 5 Calibration model in research by Kumar & Skekhar (2012) the organization's development, here These are factors that are related to employee loyalty in the organization
Research by Athar Waqas et al (2017) This study assesses the direct impact of factors on the loyalty of employees in the company in Pakistan
The analysis results show that, with the variables in the model such as: participating in the decision-making process, authorization, rewards and recognition, working environment, satisfaction The analytical results show that there is a clear impact of participation in decision-making, rewards and recognition, the working environment to the satisfaction and satisfaction of the customers, which strongly affects their loyalty
Ketbi's research (2006) This study assesses the direct impact of factors on the loyalty of public administration employees in Sharjah Police
The results show that, for the loyalty of employees who work in the public
Participate in the decision-making process
Figure 6 Calibration model in the study of Athar Waqas et al (2017)
Figure 7 Calibration model in Ketbi's research (2006) administration field at Sharjah police station, show that there is a relationship between employee loyalty and environmental variables Work school, personal characteristics of employees
Research by Nguyen Thi Thu Hang and Nguyen Khanh Trang (2016) This study assesses the impact of factors on the loyalty of employees working in organizations in Ho Chi Minh City
By quantitative analysis, the results show that the model consists of 6 independent variables: training and development, working conditions, relationships with superiors, rewards and recognition, relationships with colleagues and challenges at work The results show that there is a significant impact of training and development, working conditions, relations with higher levels that affect satisfaction and satisfaction with the change of loyalty of employee
From the above studies, recognizing the important role of factors such as recognition and reward, working environment, training and development opportunities that many researchers show have an impact on middle member of the staff In addition, overseas studies will be difficult to apply any model of any country into Vietnam, especially the Tan Tao corporation, because of cultural differences and living standards or even even how to work Therefore, based on research on loyalty and research by Nguyen Thi Thu Hang and Nguyen Khanh Trang (2016), Tran Kim Dung (2005), the
Salary and recognition Training and developing Working conditions Relations with superiors Friendship collanguge Challenge
Figure 8 Calibration model in the study of Nguyen Thi Thu Hang and Nguyen Khanh Trang (2016) author decided to include more variables such as: relations with superiors, relationship with motivation and income into the model.
Research model
Based on previous theories, studies, and group discussions as well as suggestions of instructors, the author proposes the following research model:
Salary and recognition Training and developing Working conditions Relations with superiors Friendship collanguge Income
Figure 9 Calibration model in research by Nguyen Thi Thu Hang and Nguyen Khanh Trang (2016), Tran Kim Dung (2005)
Chapter 1 of the thesis, the author presented the theoretical basis of employee loyalty in the company Specifically, the author presented the concept of loyalty and the role of encouragement in creating employee loyalty through Maslow's demand theory, two-factor theory by F Herzberg, expectation theory of Victor H.vroom, theory of fairness The author has reviewed some previous studies on employee loyalty and analysis of factors affecting employee loyalty In addition, the author has proposed research methods and processes.
CURRENT STATUS OF EMPLOYEE’S LOYALTY AT ANSV 28 2.1 General overview of ANSV Co., Ltd
The process of formation and development of the Company
ANSV was established in July 1993 in the joint venture cooperation between Alcatel Group (now Alcatel-Lucent) and Vietnam Post and Telecommunications Corporation (now the VNPT group)
In 1997, the Company expanded its production, extending its operation time to July 2016
In 2000 Alcatel transferred new technology to produce 1000 E10 systems
In 2006 Alcatel transferred the production technology of MSAN Since August 24, 2011, Vietnam Post and Telecommunications Industry Technology Joint Stock Company (VNPT Technology) has acquired all rights and responsibilities of Alcatel-Lucent at ANSV, owning 51.2% in ANSV together with VNPT 48.8%
ANSV continues to develop in the traditional areas of operation from more than 18 years of the joint venture model, while promoting the experience and accumulated resources from over 18 years, continue to develop and expand the field areas of activity to promote the development of technology, industry and telecommunications and information technology services
In addition to Alcatel-Lucent's traditional technology partner, ANSV expanded its cooperation with other technology partners such as IBM, Convergys, Oracle , to develop and produce hardware and software products and solutions meet the needs of the domestic and regional markets
Research, development, production and repair of electrical, electronic, telecommunications, information and communication equipment, development of digital content industry;
Trading in telecommunications, information and communication technology, digital content industry business;
Trading in electrical products, electronics, telecommunications, information technology and communication;
Survey, consultancy, design, construction, installation, maintenance and technical support of telecommunications, information and communication technologies;
General contractor of telecommunications, information and communication technologies;
Consulting, research, training, vocational training and application of scientific and technological advances in the field of electricity, electronics, telecommunications, information technology and communication;
Importing and exporting, supplying materials and equipment for projects in the fields of telecommunications, information technology and communication;
Some main business results of the Company
Business results of ANSV over 3 years, according to the following table:
Finance and accounting department (DF)
Business center (BC) Technological Business
Solutions & software development center (SSDC)
Diagram 1 The organizational structure of the company
REVENUE OF SALES AND SUPPLY OF SERVICES 2,240 2,710 2,242
NET REVENUE ON SALE OF GOODS AND SUPPLY
CAPITAL PRICE OF SALE AND SERVICE SUPPLY 1,974 2,476 2,083 GRADE PROFIT ON SALES AND SERVICE SUPPLY 261 233.8 155.359
Enterprise Cost Management 97.012 103.318 80.081 Net profit from business activities 114.126 75.511 28.112
TOTAL ACCOUNTING PROFIT BEFORE TAX 115.149 78.1 25.544 CURRENT INCOME TAX EXPENSES 23.06 15.683 5.374
PROFIT AFTER ENTERPRISE INCOME TAX 91.645 62.203 20.17
Table 2 Extracting business results from 2016 to 2018
(Source: data from accounting department of ANSV Co., Ltd.)
From the table above, we see that the continuous increase in production and business results in years not only ensures current income for workers but also creates confidence for workers, expectations of income and employment later stage
However, these indicators only reflect the average growth rate but do not deeply analyze the growth of individuals, groups, production and business departments
We see the profits of the ANSV increased by an average of more than 10% per year but the main contribution was profit from telecom services business.
Research design
The objective of the qualitative research phase is to adjust the scales of previous studies and develop an interview in accordance with the specific conditions of ANSV Co., Ltd From the initial goal and the theoretical basis, the
(Discussing hand in hand with the comments of teachers, n = 30)
The basis of related theory
- With 270 questionnaires, collecting 248 copies, there are 237 copies in accordance with survey conditions
- Encryption, data entry and data cleaning
- Preliminary inspection of scale with Cronbach’s Alpha coefficient
(To edit the interview table, n = 20)
Figure 11 Research process author built a preliminary interview table 1 The author then proceeded to use this preliminary interview to conduct qualitative research with direct interview techniques with 30 Company employees (including those working at ANSV Co., Ltd.) and based on relationships The author sends an email to the staff who needs to be surveyed and calls or interviewes directly to interview
Then, combined with the research model proposed, the author built a preliminary interview table 2, and used this interview table to survey and test 20 staff of the company to ensure the interviewee had can understand and answer questions The result of this step is to develop an official interview table for quantitative research
Subjects of the survey are employees of the company who are working at ANSV Co., Ltd The company has 270 employees Therefore, the author selected a survey of 270 employees
Selecting samples by convenient methods and ensuring relative proportion of employees by member center of ANSV Co., Ltd (9 centers) and employees who have retired from ANSV Co., Ltd
The author came to the company and with the support of the HR department, distributed the questionnaire and explained directly to the staff to fill in the form, after 30 minutes it would be recorded For employees who have retired from ANSV Co., Ltd., the author sends a questionnaire via email and asks to fill in the questionnaire
After the collection, the questionnaires were reviewed, and the questionnaires were rejected; Then encode, input and clean data with SPSS With SPSS software, perform data analysis through tools such as descriptive statistics, frequency tables, graphs, verification of the reliability of scales, analysis of discovery factors, conduct of feces other statistics
The scale used to measure these research factors is built on scales of some previous studies by the authors Tran Kim Dung & Tran Hoai Nam (2005), Tran Kim Dung & Nguyen Thi Mai Trang (2007 ), Vo Quoc Hung & Cao Hao Thi
(2010), combined with in-depth interviews with employees of ANSV Co., Ltd On the basis of qualitative research steps, the author made significant adjustments to a number of scales available and in accordance with ANSV Co., Ltd
Scale of employee satisfaction: The employee satisfaction scale includes 6 component scales and is denoted as follows:
1 Salary bonus component: Pay symbol
2 Composition of working environment: Env symbol
3 Training and promotion components: Pro symbol
6 Composition Work nature: Wor symbol
All observed variables in components use Likert scale of 5 levels Select level 1 with the meaning of completely disagreeing with the statement and choosing level 5 with the meaning completely agree with the statement
Salary component scale: Based on Wage and Welfare scale in the study of Tran Kim Dung & Tran Hoai Nam (2005), combined with interviews in qualitative research, the author built the month of measuring salary component Bonuses are measured by 5 observed variables symbolized by Pay1 to Pay5 This scale is used to measure the level of employee perception of fairness in salary, bonus and recognition of employees' dedication and contribution
Symbol Statements Pay1 You can see that the company has a better welfare regime than other companies in the same industry
Pay2 You are satisfied with the bonus policy of the Company
Pay3 Wages are paid fairly and reasonably
Pay4 Your salary is paid in proportion to the results of your work
Pay5 You can live well with your current salary
Figure 12 Scale of remuneration components
Scale of work environment: Scale Working conditions in the study of Tran
Kim Dung & Tran Hoai Nam (2005) have 4 observed variables Therefore, the working environment component scale is measured by four observed variables denoted from Env1 to Env4 This scale measures employee satisfaction with the work environment The results of qualitative research show that the questions and statements are clear and easy to understand, fully reflect the content to be measured
Evn1 Work does not require frequent overtime
Evn2 Work is not under high pressure
Evn3 Work is stable, not worry about losing jobs
Table 3 Scale of working environment components
Training and promotion component scales: Training and promotion components are measured by 6 observed variables from Pro1 to Pro6 This scale develops from the Thang Tien original scale in the study of Tran Kim Dung & Tran Hoai Nam (2005) Training and promotion scales are used to measure employee satisfaction with the training policy, orientation, and staff development of the company Through discussion in the qualitative research step, employees will be assured of their promotion opportunities when the policies of training and promotion of the company are applied consistently If the company's training and promotion policies change, their development path will have to change and maybe what they are striving for will be useless when the policy changes Therefore, the Pro3 observation variable "The Company consistently and fairly implemented policies" has been added to the Training and promotion component scale
Pro1 The company gives you many opportunities for advancement
Pro2 The company gives you many opportunities for personal development
Pro3 The company implements promotion policies consistently, equal
Pro4 You are trained by the company, providing the necessary knowledge / skills for the job
Pro5 You are satisfied with the training programs in the Company
Pro6 The company regularly invests to improve the qualifications for employees
Table 4 Component scale Training and promotion
Scale of Leadership: Developing from the scale "Thinking about your direct leader, you feel " in the study of Tran Kim Dung & Nguyen Thi Mai Trang
(2007) and the scale of Leadership in research by Tran Kim Dung & Tran Hoai Nam (2005), the scale of Leadership component is measured by 6 observed variables Sup1 to Sup6 This scale is used to assess employee satisfaction with their leadership The results discussed in qualitative research show that employees understand the content of these questions, in which the questions fully describe issues such as the relationship between employees and leaders, photos The effect of leadership style on the employee's working spirit, the ability to carry out corporate governance functions and the leadership support for employees
Sup1 The superior's style helps you to have good motivation to work
Sup2 Employees are supported by superiors
Sup3 Employees are highly respected and trusted at work
Sup4 Leaders have polite and gentle behavior
Sup5 Employees are treated fairly, regardless
Sup6 Leaders always recognize the contribution of employees in a timely manner
Table 5 Scale of Leadership component
Scale of Colleagues component: From Colleague scale in the study of Tran Kim Dung & Tran Hoai Nam (2005), there are 4 observed variables, adjusting the variable "Colleagues of friendly brothers and sisters" to "Brothers and Sisters feel the company is a friendly workplace ” In addition, discussion participants also said that they have more motivation to work and the factor to think about when they plan to quit their jobs is that their colleagues work with them giving them the motivation to learn more , cultivating more knowledge and experience through sharing knowledge and experiences from colleagues Therefore, the observed variable "You feel that there are many motivation to improve your skills when working with your colleagues" is added to this scale Since then, the author has built a component of Colleague component measured by 5 observed variables from Cow1 to Cow5
Cow1 You and your colleagues are willing to cooperate and work well together
Cow2 Your colleague is often interested in helping each other
Cow3 Your colleagues are comfortable
Cow4 I feel a lot of motivation to improve my profession when I can work with his colleagues
Cow5 I feel that the Company is a friendly workplace
Table 6 Scale of Colleagues components
Component scale Work nature: Component scale the nature of the work is built from the scale of the nature of work in the study of Tran Kim Dung & Tran Hoai Nam (2005) The original scale has 6 observed variables, the author has reviewed and selected 3 observable variables in accordance with the conditions of ANSV Telecommunication Equipment Company Limited Component scale the nature of work is measured by three observed variables denoted from Wor1 to Wor3 This scale measures an assessment of the suitability of employees with work and with the company
Symbol Statements Wor1 You find your job very interesting
Wor2 You have the right and responsibility in accordance with the job you are undertaking
Wor3 Your job is to allow you to maximize your personal ability
Table 7 Scale of components Nature of work
Staff Loyalty Scale: The author uses the entire scale of Loyalty from research by Tran Kim Dung & Tran Hoai Nam (2005) Employee Loyalty Scale is measured by 3 observed variables from Loy1 to Loy3 This scale measures the level of employee engagement with the company
Loy1 Do you intend to stay long with the company?
Loy2 You will still stay with the company if there are other places that offer relatively more attractive wages
Loy3 You consider the company as your second home
Current status of loyalty analysis at ANSV Co., Ltd
2.3.1 Create loyalty for employees through Rewards and recognition
Considering the annual emulation and commendation, the Labor Union of ANSV is responsible for guiding the commendation regulations of the Trade Union with the titles of advanced workers and contestants racing, still heavily in the form of meeting and voting comments based on sentiment, has not really encouraged workers to improve labor productivity
2.3.2 Creating loyalty for employees through Income
In recent years, ANSV Co., Ltd has not paid adequate attention to the construction of indicators to evaluate the performance of employees, thereby developing a synchronous policy on labor and money mechanism Salary throughout the company Based on the above assessment, ANSV Co., Ltd offers a work-based payroll system and a responsible position to create the best incentive for employees The salary policy of ANSV also shows the basic formula: "Salary Salary + Bonus + Welfare"
2.3.3 Creating loyalty for employees through the Work Environment
The working area and office for office staff are designed with open space, making it convenient for information exchange and work between departments The general information of the business is posted on the corporate intranet The outstanding news of the company will be printed and distributed to each employee in the internal newsletter, so that staff can update and track information related to the business situation of the ANSV However, with the working environment at the office: labor protection work has not been paid attention to ANSV Co., Ltd needs to invest fully equipped with fire and explosion prevention equipment, in case of fire, need to invest more equipment for work, generator room electricity, and motels for employees
2.3.4 Creating loyalty for employees through Colleagues Relationship
The policy of ANSV Co., Ltd is to create a friendly working environment between employees working together, between managers and employees in the unit must have a common voice Working on the spirit of cooperation, mutual understanding, willingness to cooperate to help each other at work, everyone has equal relations and mutual respect
2.3.5 Creating loyalty for employees through Training and promotion opportunities
Organizing many training courses for employees but not specialized in the professional field of the employees, not paying attention to whether the staff can apply what after the course, every year the group also sent staff to study in regular schools with the training programs of the University, Master, PhD For training courses to improve professional qualifications However, this training costs a lot but the efficiency is not high, training participants still have the idea that if passing the examination, they will get a salary increase, so the study is more coping than applying lifting High qualification
Promotion conditions: Employees are not fully aware of the conditions for are mainly recruited from outside, in a department that is not available vacant positions such as intermediate management, assistant, team leader for employees striving to be promoted That makes the staff feel that even if they do their best, they can only be considered excellent employees
2.3.6 Create loyalty for employees through Relationship with superiors
The Board of Directors of ANSV Co., Ltd focuses on creating a friendly, fair working environment, courteous communication behavior within and within customers So from internal departments, business units with customers, partners, employees of ANSV Co., Ltd create good sympathy and listen to ideas, and solve the above problem The spirit of cooperation, straightforward and creative to create benefits for the shareholders of ANSV.
Research process
Analysis of multivariate regression models
- Check the Cronbach’s alpha coefficient of the total variable
- Types of variables with small correlation variables
- Types of variables with small factor loading
Design quantitative research
2.5.1 Methods of information collection and sample size
Information data is collected through investigation of respondents who are currently employed by the company Face-to-face interview and interview techniques are sent directly to the staff to collect data until a sufficient number of samples is surveyed
Samples are selected by the probability and inconvenience method, this sampling method allows investigators to minimize costs and time to meet the requirements of the timeliness of analysis
For the sample selection aspect, there are currently a number of formulas for calculating the sample, however, depending on the study, there are appropriate sampling methods According to Haricot (1998), to be able to analyze the exploratory factor, it is necessary to collect data with sample size of at least 5 samples on an observed variable The number of observed variables is estimated to be 32 If the standard of five samples for an observed variable, the required sample size is n = 5 x 32 = 160 (sample) Thus, the number of samples is at least 160 (sample), however, the more sample numbers, the more statistical errors are reduced, and the author also wants to prevent the exclusion of the number of invalid votes, so the sample is decided to be 237 (form)
SPSS software was used to analyze data in this document with the use of statistical techniques such as testing statistical hypotheses, factor analysis, regression analysis, ANOVA analysis Steps to process data by SPSS are as follows:
Diagram 3 Process of data analysis with SPSS
Analysis of discovery factors (EFA)
Inspection of models and adjustments
After the type of samples does not match the initial requirements, we run the frequency allocation to check that the following variables are of noisy value that are not within the selected values
Check for duplicated object patterns and duplicate sample types
Check the frequencies for missing values and ensure that the missing values of a variable are as small as possible
To be able to use the collected pattern to run the regression model, we need to ensure the variables in the model satisfy the assumption of normal distribution The assumption of normal distribution is the most important assumption in multivariate analysis, so it is necessary to consider this standard before conducting quantitative analysis
Test of normal distribution for all variables to evaluate satisfaction to see the frequency distribution pattern of the samples as well as Skewness and Kurtosis parameters (Hair et al., 2006) If Skewness and Kurtosis are within ± 1 considered good, within ± 2, that variable is still acceptable for use in performing statistical techniques
2.5.2.3 Test the reliability of the factor groups
This method allows analysts to remove unsuitable variables and limit garbage variables during the study and evaluate the reliability of the scale with a coefficient via the Cronbach’s Alpha coefficient Variables with variable correlation
- total less than 0.3 will be eliminated The scale has a Cronbach’s Alpha coefficient of 0.6 and above that can be used in case the new concept is being studied (Hoang Trong & Chu Nguyen Mong Ngoc, 2008) Normally, the scale has Cronbach’s Alpha from 0.7 to 0.8 Many researchers believe that when the scale of 0.8 and up to 1 reliability is a good measurement scale
After assessing the reliability of the scale with the Cronbach’s Alpha coefficient and removing the variables that do not guarantee reliability Exploratory factor analysis is the technique used to shrink and summarize data This method is very useful for identifying the necessary variables for research and is used to find the relationship between variables
In exploratory factor analysis, the KMO value (Kaiser-Meyer-Olkin) is an index used to consider the relevance of factor analysis KMO values must be in the range of 0.5 to 1, this analysis is appropriate, but if the value is less than 0.5, then the factor analysis may not be suitable for the data
In addition, factor analysis is based on Eigenvalue to determine the number of factors Only factors that have Eigenvalue greater than 1 will be retained in the model The Eigenvalue quantity represents the amount of variation explained by the factor Factors with Eigenvalue less than 1 will have no effect on summarizing information better than an original variable
An important part of the factor analysis table is the component matrix or factor matrix when the rotated component matrix The factor matrix contains coefficients that represent normalized variables by factors (each variable is a variables and factors This coefficient indicates that factors and variables are closely related Using the principal components factor extraction method, the factor loading factor must be greater than 0.5 to meet the requirement
2.5.2.5 Multiple regression analysis tests the theoretical model
After extracting factors from EFA discovery factor analysis, detecting the necessary assumptions in multiples of linear regression models such as standardized residual checks, variance variance test VIF (Variance inflation factor
- VIF) If assumptions are not violated, multiple linear regression models are built
And the adjusted R2 coefficient (adjusted R square) shows how well the regression model is built
2.5.2.6 Inspection of violations of regression hypothesis
Verification of model suitability: In this document, the author uses ANOVA test to check the suitability of the model with the original data set If the significance level of the test is 0.3) Thus, the Salary scale is measured by 5 observed variables Pay1, Pay2, Pay3, Pay4, Pay5 and these variables are eligible for use in EFA analysis
Average scale if variable type
Differential scale if variable type
Correlation of the total variable
Table 21 Cronbach’s Alpha coefficient of the Salary scale
Results of analysis of Cronbach's Alpha value for the working environment scale (table 3.15) showed that the total alpha coefficient of 0.526 is less than 0.6 while the total correlation coefficient of the observations Env1 and Env2 is completely satisfied with Acceptance limit (> 0.3) The correlation coefficient of the variable Env3, Env4 is 0.261, 0.214 0.3) Thus, the working environment scale is measured by two observed variables (Env1, Env2)
Average scale if variable type
Differential scale if variable type
Correlation of the total variable
Table 22 Cronbach Alpha coefficient of the working environment scale
Average scale if variable type
Differential scale if variable type
Correlation of the total variable
Table 23 Cronbach alpha coefficient of scale Working environment after Env4 type
Average scale if variable type
Differential scale if variable type
Correlation of the total variable
Table 24 Cronbach alpha coefficient of scale Working environment after Env3 type
Component scale Training and promotion
The results of analyzing Cronbach's alpha value for the Training and promotion scale (Table 3.18) show that the Cronbach's alpha coefficient is 0.863 total greater than 0.6 and the correlation coefficient of the total observed variables is completely satisfied with gender Acceptance term (> 0.3) Thus, the Training and promotion scale is measured by 6 observed variables Pro1, Pro2, Pro3, Pro4, Pro5, Pro6
Average scale if variable type
Differential scale if variable type
Correlation of the total variable
Table 25 Cronbach’s Alpha coefficient of Training and promotion scale
The results of analyzing Cronbach's alpha value for the Leadership scale (Table 3.19) show that the Cronbach's alpha coefficient is 0.888 greater than 0.6 and the correlation coefficients of the observed variables are completely satisfied with gender Acceptance term (> 0.3) Thus, the Leadership component scale is measured by 6 observed variables Sup1, Sup2, Sup3, Sup4, Sup5, Sup6 and used in subsequent EFA analysis
Average scale if variable type
Differential scale if variable type
Correlation of the total variable
Table 26 Cronbach Alpha coefficient of Leadership scale
From the table of results in table 3.20, co-workers with Cronbach's Alpha are 0.886 greater than 0.6 and the correlation coefficients of the observed variables are completely satisfied with the acceptance limit (> 0.3) so the variables measured This component is used in subsequent EFA analysis Thus, the scale of colleagues is measured by 5 observed variables Cow1, Cow2, Cow3, Cow4, Cow5
Average scale if variable type
Differential scale if variable type
Correlation of the total variable
Table 27 Cronbach’s Alpha coefficient of Colleague scale
Scale of components Nature of work
Results of cronbach's alpha value analysis The scale of work (Table 3.21) shows that the total Cronbach's alpha coefficient is 0.849 greater than 0.6 and the total correlation coefficients of the observed variables are completely satisfied with the limit Accepted (> 0.3) Thus, the work nature scale is measured by three observed variables Wor1, Wor2, Wor3 and eligible for use in EFA analysis
Average scale if variable type
Differential scale if variable type
Correlation of the total variable
Table 28 Cronbach's coefficient Alpha of the scale of work nature
Cronbach Alpha test for Loyalty scale
The results of cronbach's alpha value analysis of loyalty (table 3.22) showed that the total Cronbach's alpha coefficient of 0.793 is greater than 0.6 and the total correlation coefficients of the observed variables are completely satisfied with the limit of acceptance receive (> 0.3) Thus, Loyalty scale is measured by 3 observed variables Loy1, Loy2, Loy3 and eligible for use in EFA analysis
Observed variables Average scale if variable type
Differential scale if variable type
Correlation of the total variable
Table 29 Cronbach Alpha coefficient of Loyalty scale
By analyzing the EFA factor in the next step, it will be more specific to determine whether the above scales are separated into new or excluded factors This will more accurately assess the scale, while eliminating unsatisfactory measurement variables, the purpose of making scales to ensure uniformity
Analysis of EFA discovery factors, to re-define a set of observation groups in the research model When analyzing exploratory factors, researchers are interested in a number of criteria:
First, the KMO coefficient (Kaiser-Meyer-Olkin) is an index used to consider the relevance of factor analysis The value of large KMO (between 0.50 and 1) means that factor analysis is appropriate (Trong and Ngoc, 2008, p 31)
Second, Factor loading factor loading is the norm to ensure the level of practical significance of EFA, load factor greater than 0.30 is considered to be minimum, load factor greater than 0.40 is considered important, Greater than 0.50 is considered to have practical significance The maximum load factor of observed variables must be greater than or equal to 0.50 (Hair et al., 1998, p 111) In the lesson, the author chooses
"Suppress absolute values less coal" by 0.50 to ensure the practical meaning of EFA
Third, the scale is accepted when the total variance extracted ≥ 50%
Fourth, the eigenvalue coefficient is greater than 1 (Gerbing & Anderson, 1998)
Fifth is the difference in factor loading of an observed variable between factors ≥ 0.3 to ensure the discrimination between factors (Jabnoun and Al-Tamimi, 2003)
When analyzing the EFA for employee satisfaction scale, the author uses the Principal axis factoring method with varimax rotation and stop point when extracting the eigenvalue elements greater than 1
The scale of employee satisfaction that the topic uses consists of 6 components with 29 observed variables After verifying the scale with Cronbach’s Apha tool, a reasonable measurement scale has 2 observed variables rejected The
27 observable variables of the 6 component scales of employee satisfaction continue to be included in the EFA discovery factor analysis (Table 3.7)
Table 30 EFA results measure employee satisfaction
With the results of EFA in Table 3.7, Factor loading the largest of the two observed variables Pro5, Pay1 are less than 0.5, and factor loading error of the observed variable between factors 0.05 (sig 0.907) so the variance between men and women is not different Therefore, in the test results we use the result Equal varians assumed has sig Stop Can tell->continue sentence 6
6 Cause Anh / Do you quit work at ANSV Co., Ltd for personal reasons?
Yes->Stop No->continue sentence 7
7 If the reason for your leave is from the company, please tell me what it is?
(Please arrange the causes in order of importance in descending order)
APPENDIX 2 SURVEY ON THE FACTORS AFFECTING THE LOYALITY OF
I am Vu Thien Nhuong currently working at ANSV Co., Ltd I am doing a scientific research on the topic "Factors influencing the employee’s loyalty at ANSV Co., Ltd"
Dear Brothers and Sisters, Please take your precious time to answer the following questions according to your personal opinion My answer to the following questions is very valuable to me, because it helps me complete the topic of scientific research Looking forward to receiving your help
All information you provide is only for this research purpose and is completely confidential
Thank you very much and allow me to send to you / I wish you good health, success and happiness
Please indicate your level of agreement with the following statements on a scale of 1 to 5, with the convention:
1: Absolutely disagree 2: Do not agree
5: Absolutely agree (Please select only one appropriate number for each statement)
Pay1 I realize that ANSV Company has a welfare regime benefit better than other companies in the same industry
Pay2 You are satisfied with the bonus policy of the Company 1 2 3 4 5
Pay3 Wages are paid fairly and reasonably 1 2 3 4 5
Pay4 Your salary is paid in proportion to your result work
Pay5 You can live well with your current salary 1 2 3 4 5
Env1 Work does not require frequent overtime 1 2 3 4 5
Evn2 Work is not under high pressure 1 2 3 4 5
Evn3 Work is stable, not worry about losing jobs 1 2 3 4 5
Pro1 The company gives you many opportunities for advancement
Pro2 The company gives you many opportunities for personal development
Pro3 The company implements promotion policies consistently and fairly
Pro4 You are trained by the company to provide ants
Skills / skills needed for work
Pro5 You are satisfied with the training programs in the
Pro6 The company regularly invests to improve the qualifications for employees
Sup1 The superior's style helps you to have better motivation to work
Sup2 Employees are supported by superiors 1 2 3 4 5
Sup3 Employees are highly respected and trusted at work 1 2 3 4 5
Sup4 Leaders have polite and gentle behavior 1 2 3 4 5
Sup5 Employees are treated fairly, regardless 1 2 3 4 5
Sup6 Leaders always recognize the contribution of employees in a timely manner
Colleague Level Cow1 You and your colleagues are willing to cooperate and work well together
Cow2 Our colleague is often interested in helping each other 1 2 3 4 5
Cow3 Your colleagues are comfortable 1 2 3 4 5
Cow4 I feel a lot of motivation to improve my skills when I work with my colleagues
Cow5 I feel the company is a friendly workplace 1 2 3 4 5
The nature of the work Level
Wor1 You find your job very interesting 1 2 3 4 5
Wor2 You see that your job is taking on many challenges 1 2 3 4 5
Wor3 Your job is to allow you to maximize your personal ability
Loy1 You intend to stay long with the Company 1 2 3 4 5
Loy2 You will still stay with the company if there are other places that offer relatively more attractive wages
Loy3 You consider the company as your second home 1 2 3 4 5
In order for you to stick with the Company more / What do you think the Company should do and should not do? Please list below:
PART II: INFORMATION ON CLAIMS (Type √ in the selected circle)
4 Working time at the company:
Less than 2 years From 2-