Preliminary scale table Working environment affecting the loyalty of employee W2 .... Preliminary scale table Relationship with colleagues affecting the loyalty of employee RC4 .... Prel
INTRODUCTION
Context and background
Today, with the market's escalatingly intense competitive pressure and the rapid advancement of the fourth industrial revolution Businesses of today must constantly take steps to ensure their continued existence while also coming up with new ideas and innovations on a regular basis to satisfy the market's rising demands
Therefore, every business is aware that having adequate human resources is one of the most important things it can do to increase the effectiveness of its operations, grow sustainably, gain a competitive advantage, and perform better overall The stability and sustainability of human resources, particularly good human resources, is one of the key elements that must be implemented and maintained
The previous theories state that one of the key elements in human resource management is the preservation of human resources At the moment, companies outside the industry are competing fiercely for employees, as well as within companies in the industry Therefore, one of the factors impeding business growth is the fluctuation of human resources, a real issue that every company in the market must deal with But when specific measures are taken, having a group of devoted, loyal employees will have a positive effect on assisting businesses in moving forward with their development
As is well known, Vietnam is now taking further steps toward economic integration with the rest of the world, which has altered the thinking of business managers and helped them to clearly perceive more about the need for human resources; factors such as how to create a working environment, salary and bonus policies, benefits, etc to retain employees All businesses, especially service businesses, depend on the involvement of people to operate The human factor is a major factor in determining a company's success Employee retention is thus a challenging issue that human resource managers constantly encounter In fact, it can be challenging to find the right candidates for the job, and it can be even harder to keep them on board Whether an employee chooses to leave the company after completing the training process or after gaining experience after a period of employment is one of the hardest problems for employers to solve Particularly when they look to competitive businesses, the company's direct rivals, and bring in significant clients with them
This is why, despite ranking among the professions with the highest attraction for young people today, the banking industry is facing many significant challenges that cause employees to want to leave their jobs These challenges include uncompetitive salary and remuneration, excessive work pressure, and concern over legal risks (Tap chi tai chinh, 2021) Additionally, statistics show that bank staff turnover is on the rise, and that when key employees leave in succession, underground waves will follow due to the domino effect, this is will caused a great problem within the bank.
Research objective
The research objective is to analyze the current status of employee loyalty at the Tien Phong Commercial Joint Stock Bank's - Thao Dien Branch (TP Bank) in order to develop solutions to raise employee loyalty at TP Bank over the next two years
Specifically, the study aims to achieve the following objectives:
- Conducting a critical literature review about the concept of loyalty
- Analyzing the current status of employee loyalty at Tien Phong
- To propose some solutions to help improve employee loyalty at TP Bank - Thao Dien Branch.
The subject and scope of the study
The object of the study: Focus on the employees' loyalty to Tien Phong Commercial Joint Stock Bank
Subject of the study: The subjects of this study are bank employees who work at the TP Bank branch in Thao Dien
The thesis focuses on examining bank employees' loyalty at Tien Phong Commercial Joint Stock Bank – Thao Dien branch
Secondary data: data collected from 2020 to 2021 at Tien Phong
Commercial Joint Stock Bank – Thao Dien branch.
Research methodology
In order to evaluate the standing and loyalty of bank employees at TP
Bank, the author uses statistical methods, synthesizes, compares, and analyses operational reports and statistical reports of Tien Phong
Through the review of theoretical background material, focus group discussions, and interviews with managers and staff members at the TP Bank - Thao Dien branch, the study employed qualitative research methods We also conducted interviews with a number of former workers who had left within the previous six months From there, asses the extent and factorrs affecting the loyalty of bankers The adjusted statements will be included in the Survey Questionaire – the data collection tool in the official research
The primary research methodology for this study will also be quantitative The author will assess the level of loyalty and the factors influencing the loyalty of bank employees after completing the complete scale from the preliminary research process combined with secondary data at the bank.
Research findings
The study will provide practical information to help the board of directors of Tien Phong Commercial Joint Stock Bank – Thao Dien branch have a deeper understanding and a more realistic view of the status of employee loyalty, they can be aware of the reasons why employees leave the organization From there, propose solutions and cary out appropriate policy adjustments and reforms to attract and retain significant good human resources who have worked for the bank for a long time.
Research structure
In addition to the references and related appendices, the topic will be presented in 4 chapters, with chapter summaries as follows:
Chapter 1: The introduction, the reason for choosing the topic, context and background
Chapter 2: A literature review of employee’s loyalty
Chapter 3: Reality of loyalty and factors affecting the loyalty of bankers at Tien Phong Commercial Joint Stock Bank
Chapter 4: Solutions to improve the loyalty of bankers at Tien Phong
LITERATURE REVIEW
Because employee loyalty is so crucial to all human resource management activities in corporate organizations, including public and non-governmental ones, many authors domestically and internationally have shared their thoughts on the subject through journals and published books
In general, the term ―loyalty‖ refers to a person’s devotion or sentiment of attachment to a specific object, which could be another person or group of people, an ideal, a duty, or a cause It manifests in both thought and action and aims to align the loyal person’s interest with the object of allegiance (Encyclopedia Britannica, 1998)
According to (Grosman, 1989) The last few decades have seen an occasional but significant presence of loyalty in the literature on business ethics Recent discussion about the changing nature of the employment relationship have sparked a lot of interest in loyalty He also believed that it’s difficult to define loyalty It very much depends on who you ask An employee thinks that the corporate employer’s loyalty guarantees that she will be taken care of It denotes an extended commitment on the part of the employer It implies that he will be paid well if he performs his duties and will work for a long period of time at the company
(Antoncic and Antoncic, 2011) also makes this point that loyalty is the perception that employees have of the company’s future direction and development, which has an effect on day-to-day operations It is thought that the psychological ties that bind people to the organizations they have worked for- whether they take the form of internalization, identification, or consent, are what bind them
(Omar, Jusoff and Hussin, 2010) stated in his journal that employee commitment can be viewed as an example of employee loyalty An affective commitment among employees is what is meant by ―employee loyalty‖ Affective commitment is defined as the desire of a worker wanting to maintain a relationship with a particular employer because the worker enjoys the relationship for its own sake, apart from its practical value, and because they feel a sense of loyalty and belonging
On the other hand, (Elegido, 2013) assumed that loyalty is viewed as a form of employee outcomes commitment to the organization, and it calls for the employee’s action to have a greater interest in the manager or the business While loyalty can play a significant role in a company’s commitment, it can also be a stand-alone concept
Similarly, (Guillon and Cezanne, 2014) points to the fact that employee loyalty can be defined as an attitudinal tendency toward identification, attachment, commitment, or trust toward the organization that manifests itself in a variety of behaviors, ―forms,‖ or ―indicators.‖
Additionally, in the attitudinal approach, commitment to the organization or identification with attachment are examples of what are referred to as
"feelings" that are associated with loyalty (Guillon and Cezanne, 2014) The shortage of outstanding human resources in Vietnam during this time market more competitive than ever Some young people view work as a chance to learn and grow as individuals, which contrasts with the changing mindset of today's youth who prioritize financial security when choosing a job Even today, some managers still prefer to work with competent employees for a short period of time rather than wanting to stick with with long-term workers who have remained with the company for their entire careers but are less competent
Thus, it is clear that loyalty refers to a person's commitment to an organization who wants to stay for a long time and is willing to put in the effort to make the organization or business profitable
The role and importance of employee loyalty
It will take a lot of work and time to rebuild the welfare and salary policies for the positions when there are frequent personnel changes in a short period of time, and this will also lead to many deficiencies managing data and personnel records Additionally, the abrupt departure of key personnel will have a negative impact on the company's business performance
What's even riskier is that when those employees quit, they will bring all the customers along with them and the company will lose clients ,they can also divulge details about the company’s products to rival companies, and damage the company reputation in the marketplace
Currently, a lot of businesses are reluctant to make personnel changes, particularly in the service industries like banking Specifically, during periods of high demand when the business needs to distribute, launch, and expand its market The lack of staff will make certain workplace challenges, which will have an impact on business performance, service quality, client satisfaction, and the company's profits
Moreover, the spirit and working attitude of the employees working at the company will be unintentionally affected when employees leave the organization one after another, especially the key personnel This will inadvertently cause a domino effect when employees repeatedly leave the company because of the departure of previous people In the current market, especially in the service sector, this is very typical
To conclude, it is clear that employee loyalty is a crucial tool for the company to use to enhance the caliber of business operations while saving money on hiring and training expenses Long-term employees have the advantage of developing a thorough understanding of the organization's system, products, organizational culture, working style, etc., which will positively affect the business's revenue and profits
Nowadays, employees are obtaining higher levels of education and bringing more abilities and skills to the workplace Higher expectations and a greater understanding of the significant social, ethical, and environmental issues that local and global societies are facing have come along with this improvement in education This demonstrates that employees today are more conscious of their own values and demand fundamental and consistent standards from the company, which will encourage them to stay with the business for an extended period of time According to (Nguyen et al., 2020) have found that there are a total of 6 factors affecting employee loyalty: colleagues, leaders, job characteristics, policies, organizational culture, and working environment
METHODOLOGY
Introduction
According to (Melnikovas and Žemaitis, 2019) A methodology is a comprehensive research approach that outlines how research should be conducted The selection of the research methodology is influenced by a set of assumptions and philosophical presumptions that define how the research questions are understood A dissertation or thesis must include a research approach that helps to maintain consistency among the techniques, tools, and underlying philosophical assumptions Additionally, to make sure that the research findings are more reliable, this study will make use of the research framework created by (Saunders, Lewis, and Thornhill, 2019)
The theoretical idea of the ―research onion‖ serves as the foundation for one technique of research methodology building (Figure 3.1) The research onion gives a very extensive explanation of the layers and the steps that are essential to finish building an eficient methodology
The study design, which contains the main methods and procedures for obtaining and analyzing data, is produced by the research methodology by starting with the central idea, choosing approaches, methods, and tactics, as well as creating time horizons (Figure 3.1)
Figure 3.1 The Research Onion Framework (Saunders et al., 2009)
Research philosophy
Research is said to be a set of assumptions and convictions towards the growth of knowledge A credible research philosophy will consist of a collection of assumptions that are well-considered and consistent
(Saunders et al, 2019) The author will only emphasize three research methodologies in this study, including: positivism, and interpretivism
A positivist research takes the premise that knowledge only happens outside of what’s being investigated To put it in another way, the study can only be conducted objectively and cannot take into account the researcher’s personal belief or viewpoints Instead, the researcher must simply observe (Jansen, 2021) Furthermore, it mostly represents the philosophical outlook of natural scientists Ontology is predicated on the objectivism that entities are observable, atomistic events, and As a result, only empirical and observational evidence can be deemed "credible"
(Melnikovas and Zemaitis, 2019) To conduct a positivist study, the researchers must therefore disregard their point of view and attitudes toward the issue they are investigating However, there is one issue from which they are unable to turn away
Despite the fact that positivism is thought to be a required strategy for all researchers, it is advised that one ignore their opinions and views regarding the subject under investigation According to some experts, the commercial and financial industries are still very complicated and constantly evolving, positivism can no longer be proven to be accurate, and there is no assurance that current theories will hold true in the future To help researchers comprehend how powerfully social actors may influence their research, interpretivism should be used as an essential method
(Saunders et al., 2007) According to study by (Melnikovas and Zemaitis, 2019), interpretivism is predicated on subjectivist ontological premises, and entities are what appear to be made up of discourse Additionally,
(Alamgeer, 2022) possessing the same mentality that, in contrast to positivism, interpretivism is employed in qualitative research to gain a deeper knowledge of a process or phenomenon and that it is influenced by the assumptions of human actions and behavior In other words, it is well known that interpretivist research is a critique of positivism
Every approach has advantages and disadvantages based on the sort of research questions that researchers can select and use to address these provided questions, so it is crucial that the researcher is clear about which method they want to utilize Because this study uses both a quantitative and a qualitative technique to clarify its objectives, both positivism and interpretivism are used as philosophical frameworks.
Research approach
According to (Saunders et al., 2009) research onion there are three main types of research approaches Research approach is also known to be very important because it decides if the researcher is choosing the right approach As deductive reasoning leads to specific conclusions based on logical requirements and created theory is either tested or verified by data collection, the deductive theory creation approach may be related with forecasting (Melnikovas and Zemaitis, 2019)
As (Saunders et al, 2016) stated in his research that deductive research is a term used to describe the process of reasoning that goes from broad rule to basically a law-like interference, typically being used for theory testing Therefore, when researchers want to conduct deductive research, they have to based it on theory and testing their reasoning on these theories According to (Saylor Academy, 2011) Deductive reasoning is the type of study methodology that most people associate with science The researcher examines prior study on the subject, looks into what others have found, and then tests the theories' resulting hypotheses And also, in order to acquire quantitative data, deductive reasoning must be used
Figure 3.4 Deductive research (Saylor Academy, 2011)
In order for an inductive approach for his or her topic to be interesting and accurate the researcher first needs to start by using qualitative method This mean that the first thing the researcher need to do is collecting data that is completely relevant to his or her topic of interest Therefore, after gathering a sizable amount of data, the research will stop gathering data and step back to gain a bird’s eye view of his or her findings Once, the data is collected and analyze the research will look for the pattern in the data, while attempting to create a hypothesis that may account for those patterns (Saylor Academy, 2011) In conclusion, it is very important to note that in the inductive approach finding the context of the problem is the main key issue, unlike the deductive approach where the researchers have to use large samples
However, this is also not entirely correct because each approach has its own benefits and limitations, so when applying both of the above approaches in the same study will help the researcher leverage the benefits of both strategies’ mutual assistance
Figure 3.5 Inductive research (Saylor Academy, 2011)
Research strategy
There are two primary categories of research methodologies that are frequently employed: qualitative and quantitative According to (Saunders et al., 2016) the strategy for gathering and evaluating data in accordance with the type of data, whether it is numerical (quantitative) or non-numerical (qualitative), is what define as a method Before the researcher set out to do research strategy, the researchers have to gather his or her information such as the purpose, the type of purpose they are going to apply and information required to make an informed strategic choice Theoretially, the researcher will utilizes an interview to gather data in the qualitative method and a questionaire to gather data in the quantitative method (Saunders et al., 2007)
Normally, when researcher wants to use quantitative measure his or her project has to reach a ―finished product‖ stage and has some degree of stability and maturity Quantitative techniques examine the effects of specific conditions (an independent variable) on a desired result (a dependent result) with the aid of numerical language In these situations, informal conclusions are drawn either directly from the data, as in trials, or from associations identified through statistical analysis (Lakshman et al., 2000) The quantitative method relied on responses from a large survey sample that was performed either directly or indirectly through the telephone or the internet However, when the tools required to quantify particular knowledge, attitudes, and behaviors are lacking, quantitative methods might occasionally fall short It takes time and money to conduct scientific research to create scales or questionnaire items that are valid and reliable (Steckler et al., 1992)
Non-numerical data are dealt with through qualitative methods (Mardina, 2020) Open ended questions are frequently used to elicit information through interviews, direct observations, or focus group discussions, and they are frequently used when working with a small and highly concentrated project In-depth interviews, which are methods of gathering information through conversation and face-to-face interviews where the research subjects (interviewees) can freely share their information with each other and their own opinions and personal views, are frequently used in qualitative studies These interviews allow the researcher (interviewer) to exploit information in detail and cover a wide range of topics Using pre- written questions or not is one of two methods interviewers might use to conduct their interviews However, in this instance, "open" questions are typically used to conduct in-depth interviews and to flexibly gather information from respondents (Lakshman et al., 2000) Also share the same point that qualitative research techniques can produce the necessary understanding by giving access to potentially important information that would otherwise have to be inferred by the researcher As a result, they play crucial and complementary role in the investigator’s toolkit
Although each approach has its own pros and cons, the necessity of both cannot be overstated in a research paper, therefore the researcher must select several methods—or one particular method—to best suit their objectives
In order to investigate the loyalty of employee in TPBank – Thao Dien branch collecting data related to employees feedback and their opinions on factors affecting their loyalty is important to provide truthful and impartial analysis The major of methodology for this study will be quantitative research methods, however in order to get better findings and accuration, qualitative method assistance is also necessary.
Research methodologies
The statiscal analysis depends heavily on the data collection process The many information-gathering techniques used in research can be divided into two categories: primary data and secondary data
According to (Hox and Boeije, 2005) the term ―primary data‖ refers to information that has been specifically collected for a given study issue using methods that are most appropriate for that research problem
Surveys, observations, questionnaires, focus group, case studies, and interviews are a few examples of primary data sources Primary data has the advantage of being extremely accurate and trustworthy because it is information that the researcher independently gathers It also gives the researcher a more realistic perspective However, primary also has its own drawbacks of having restricted resources and study scope, as well as requiring a lengthy data collection process
Secondary sources are information gathered earlier by another party
Secondary data are those that were gathered for a different reason and at a different time in the past by a person unrelated to the research endeavor According to (Hox and Boeije, 2005) the majority of secondary data is quantitative, with the information consisting of items that have been researched and whose properties have been coded in variables with a range of potential values There are many benefits and drawbacks of using secondary data but one of its main benefits is that it saves the researcher a lot of time and money instead of spending hours and hours collecting data
It does, however, have certain flaws including that the data are incorrect, and is somewhat being influenced by the author’s point of view which is inappropriate for the period and location of the study.
Data collection technique
Observation, interviews, questionnaire, scheduling surveys are the basic methods of acquiring data (Simplilearn.com, 2021) However, questionnaires and interviews are usually the main method for researcher to collect their data
A questionnaire is a research tool made up of a list on inquiries intended to elicit important data from respondents These tools include questions that can be written or spoken, as well as an interview-style structure (Cint,
In this study the researcher will use the survey approach to collect data on employees' perceptions of the elements influencing employee loyalty at Tien Phong Commercial Joint Stock Bank in Chi Minh City branch of Thao Dien All TPBank Thao Dien Branch employees will get the survey form, with the exception of the general manager of the bank due to the inconvenience of surveying The author chose to survey all employees at this branch In addition to the convenience, the author also had 3-month internship period at the Bank Therefore, it will be simple to gain the cooperation of every employee in the branch, allowing for the prompt completion of all survey forms
However, before the survey can be sent out officially, a pilot test was conducted to test the comprehensibility of the questions posed in the questionaire (Saunders et al., 2009) The author will gain a deeper understanding of the issues that could arise throughout the survey and data gathering thanks to this pilot test Three specialists received the pilot study, which was carried out over two days In order to make the survey as comprehensive as possible, respondents are also requested for their personal ideas and contributions when completing it After giving the questions their full attention, the researcher concluded that majority of them were straightforward and contained just a small number of errors
Although the survey questionnaires were sent to all employees at the branch, there were still some employees who were unable to complete the survey on time due to personal reasons
In order to change the research model, add or remove components that do not meet the research standards, and take into account the present state of the Bank, the author performs exploratory research through group discussion In addition, it also helps the author to perfect the sentences and structures in the scale so that it is easy to understand and reasonable to form a complete scale used in official research The total number of participants in the interview includes 3 experts, the interview will be conducted face to face or for those who cannot attend the interview due to personal reasons, they will be contacted via phone interview.
Triangulation, reliability, and validity
According to (Noble and Heale, 2019) Triangulation is a technique for enhancing a study's validity and credibility While validity deals with how accurately a study represents or evaluates the notion or concepts being studied, credibility deals with how reliable and persuasive a study is
When two or more approaches are utilized in research, this is known as mixed methods and is referred to as triangulation using a mix of quantitative and qualitative research methodologies to address a particular research question (Noble and Heale, 2019) To reduce, neutralize, or offset the weakness of a single techniques and improve the capacity to interpret the results, triangulation is used (Thurmond, 2001)
To put it another way, triangulation is crucial for testing data in a research project since it is clear-cut and thorough Therefore, to increase the validity and trustworthiness of this research questionnaires and interviews were conducted in this research
A metric's reliability is inversely connected with its consistency Every time a participant takes the test, they should provide substantially the same answers on the motivational evaluation tool (Heale and Twycross, 2015) Additionally, reliability is at danger from participants’ prejudice, observers’ bias, and observers’ inaccuracy are risks to reliability, according to
Validity is the degree to which a method actually measures what it is intended to measure When a study's conclusions are extremely valid, it indicates that they accurately represent the actual characteristics, tendencies, and differences in the real world (Middleton, 2019)
In this chapter, the author will clarify the concept as well as the approaches used when writing the research methodology, in this research paper the author will apply a quantitative method including conducting a survey at the Tien Phong Commercial Joint Stock Bank – Thao Dien Branch combines with qualitative methods including conducting interviews and group discussions to get individual opinions of experts Along with that, the author will describe in detail the process of obtaining information and summarizing it.
ANALYSIS OF LOYALTY STATUS AND FACTORS AFFECTING
General introduction about Tien Phong Bank
4.1.1 Overview of Tien Phong Commercial Joint Stock Bank
TPBank Tien Phong Commercial Joint Stock Bank was established on May
5, 2008 (henceforth referred to as "TPBank") TPBank benefits from the strengths of significant shareholders DOJI Jewelry Group, FPT Technology Group, International Finance Company (IFC), Vietnam Reinsurance
Corporation (Vinare), and SBI Ven Holding Pte Ltd., Singapore, as well as their market expertise and financial capacity
The segment that TPBank targets is young and active clients, and the company constantly works to provide the best banking and financial solutions and products in that space With a focus on in-depth management and cutting-edge technology, TPBank consistently sets the bar for new developments in financial services with the goal of dominating the
4.1.2 Functions, tasks and operating principles
Becoming one of the top banks in Vietnam, offering cutting-edge technology-based financial services and products, and contributing to the development of a strong and prosperous country
IFRS 9 will be fully implemented beginning in the fourth quarter of this year, according to a recent announcement by Tien Phong Commercial Joint
Stock Bank (TPBank), which will also complete all Basel III criteria in 2022 Basel III is a new version of the international banking standard, and it has several advantages, including lowering operational risks and enhancing banks' resilience to potential calamities
Delivering ideal financial services and solutions to clients and partners based on cutting-edge, highly efficient technology developing into a financially successful organization that runs securely, sustainably, and transparently committed to achieving high social responsibility and actively taking part in local activities for the sake of local and national growth
Figure 4.1: Organizational structure of human resources and labor situation of
City Bank - Thao Dien Branch
According to the above structure, the TPBank - Thao Dien Branch is made up of the following: A branch director, along with division directors from the three main divisions, is directly in charge of managing the staff and overall branch operations in line with the legislation
Corporate Clients Division: 10 Customer Specialists and Staff, 2 Division Managers
One division manager, five customer specialists, and other staff work in each individual customer division
Operation department: in charge of transaction and treasury, the two key operations.
Research results
This section will include survey sample data, model testing, and research hypotheses The idea scale will be utilized to estimate and test the research model after it has been tested Additionally, the impact of a few qualitative factors on loyalty is also examined.
Survey sample characteristics
Adjust the research model: According to the plan, the conversation will begin with the author interviewing each participant, who will then have the opportunity to share their individual perspectives on the subject of loyalty and the variables that influence employee loyalty The author will raise the aspects above in the direction of ideas to poll each person's viewpoint if they are not brought up by the interviewees Consensus opinions will be preserved, and many variables will be reviewed and carried out until everyone has the same opinion; if there is still no agreement, that part will be eliminated
According to the appendix (): After the discussion, in addition to the factors proposed by the author in the preliminary research model, all members of the discussion group agreed
Additionally, the scale of the independent variables, dependent variables, and observed variables has been modified to better fit the bank's requirements and current circumstances After correction, scales for the independent and dependent variables were created, each with 26 items and a Likert scale with 5 levels from 1 to 5, with the following scores: 1 - Strongly disagree, 2 - disagree, 3 - normal, 4 - agree, and 5 - strongly agree All of these questions have been coded to make data processing and analysis easier
Relaationship with leaders and supervisors
Sex, age, position, monthly income
Table 4.1 Preliminary scale table Salary affecting the loyalty of employee (S1)
You believe that your income can ensure your life S11
You feel that your current salary is fair considering your ability to work and your contribution to the bank
You feel that your bank is fair in paying employees' salaries, bonuses, and benefits
Table 4.2 Preliminary scale table Welfare affecting the loyalty of employee (WF2)
You feel that the company has a good welfare regime WF21
You feel fully involved in welfare programs WF22
In addition to Social Insurance, Health Insurance, the company's other welfare regimes are diverse and practical (travel, employee birthday, vacation,
The company has a good social insurance and health insurance regime
Table 4.3 Preliminary scale table Working environment affecting the loyalty of employee (W2)
The work environment at your bank is secure, clean, and inspiring for you to work
You are provided with full equipment to support your work W32
Working tools, stationery, provided quickly when required W33
The working process and operation of the Bank are clear, methodical, and easy to understand
Preliminary scale Relationship with colleagues
Table 4.4 Preliminary scale table Relationship with colleagues affecting the loyalty of employee (RC4 )
Your coworkers are cordial and have a positive attitude toward working together
You coworkers are willing to give their insights and counsel when you need them
Your colleagues have team spirit, act for the common good of the group
There is a healthy competition among individuals in the promotion process of the Bank
Preliminary scale Relationship with leaders
Table 4.5 Preliminary scale table Relationship with leaders affecting the loyalty of employee (RL5)
You are treated fairly and without discrimination by your superiors
You always feel professionally assisted, instructed, and guided in the workplace at the appropriate moment to finish the work
You feel that the superiors value the talents and contributions of employees
Table 4.6 Preliminary scale table Loyalty of employee (L6)
You would like to introduce the Bank as a good place to work? L61
You will stay at the bank even if other places offer a more attractive income
You intend to work with the company for a long time L63
You are willing to sacrifice personal interests when necessary to help the bank become more successful
You would like to introduce the Bank as a good place to work? L65
You are very confident to introduce everyone about the bank and its products
Additionally, the discussion participants all agreed on the observed parameters regarding personal characteristics including gender, age, job position, and monthly income
The author distributed 180 questionnaires, however only 148 were actually collected, resulting in a sample size of 119 The author obtained the primary data set with 119 samples after eliminating the unacceptable questionnaires and cleaning the data Which will be included in Appendix (2.1)
There is a small discrepancy between men and women among these 100 legitimate respondents, with the female percentage being 57.1% and the remaining 42.9% being male The data also reveals that respondents under the age of 35 make up 87.1% of the sample, with respondents aged 30 and above making up the remaining 12.9%
The bulk of employees at the Bank had average monthly incomes below 10 million, making up 93.9% of all employees, while those with average monthly incomes above 10 million made up only 6.1% The research sample is representative in terms of the types of jobs held; employees make up 76.9% of the sample, followed by managers at 23.1%.
Preliminary assessment of the scale
The research data will first be reliability checked using the Cronbach Alpha tool in SPSS before being used in the exploratory factor analysis The
Cronbach's Alpha coefficient is a statistical evaluation of how closely the scale's questions correlate with one another, aiding in the removal of unsuitable scales and variables with high total correlation coefficients The scale will be chosen when the Cronbach's Alpha coefficient is more than 0.6 and values lower than 0.3 will be disregarded In the appendix, the complete results will be published
The scale of independent variables includes 5 components with 25 observed variables, will be included in the Appendix (2.2)
The Salary component has Cronbach's Alpha coefficient = 0.958 and the correlation coefficient of total variables (Corrected Item - Total Correlation) is greater than 0.3, so it is satisfactory and will be included in the next analysis
The Welfare component satisfies the criteria for inclusion in the following analysis because it has a Cronbach's Alpha coefficient of 0.970 and a total correlation coefficient (Corrected Item - Total Correlation) that is larger than 0.3
Components Working environment with Cronbach's Alpha coefficient 0.972 and the total correlation coefficient (Corrected - Total Correlation) are both greater than 0.3, so it is satisfactory and will be included in the next analysis
The component Relationship with Colleagues is satisfactory and will be included in the next analysis because it has a Cronbach Alpha coefficient of 0.985 and a total correlation coefficient (Corrected - Total Correlation) of more than 0.3
The component Relationship with leaders has Cronbach's Alpha coefficient = 0.968 and the total correlation coefficient (Corrected - Total Correlation) is greater than 0.3, so it is satisfactory and will be included in the next analysis
4.4.2 Scale of dependent variable (Loyalty)
The loyalty component is excellent and will be included in the next analysis because it has a Cronbach's Alpha coefficient of 0.987 and a total correlation coefficient (Corrected - Total Correlation) that is more than 0.3.
EFA (Exploratory Fator Analysis)
All observed variables will be incorporated into exploratory factor analysis (EFA) following a preliminary Cronbach's Alpha coefficient evaluation of the work component and loyalty dependent variable scales through factor analysis EFA will assist the author in learning how to ensure the scale has high reliability, identify the structure of research topics, and help eliminate inadequate measurement variables
When analyzing exploratory factors, researchers often focus on the following criteria:
The Kaiser-Meyer-Olkin (KMO) coefficient is an index used to evaluate if factor analysis is appropriate If KMO is greater than 0.5 and less than 0.5, factor analysis is probably not applicable for the data A value of KMO between 0.5 and 1 indicates that factor analysis is appropriate
To determine whether the correlation matrix is a unit matrix, which is a matrix with components of correlation coefficients between variables equal to 1, one uses Bartlett's test (Bartlett's test of scpericity) We must reject the hypothesis if the Bartlett test's Sig value is less than or equal to 0.05
According to the data in the Appendix (2.2), the exploratory factor analysis shows that:
The coefficient KMO = 0.952 is greater than 0.5 and less than 1, so factor analysis is significant, consistent with the data
Bartlett test considers the hypothesis that the correlation of variables is not in the population, Sig = 0.000 < 0.05, so the observed variables are correlated with each other in the population and the analysis is statistically significant
• Percentage of variance extracted at 90.88% is greater than 50%.
Correlation and regression analysis
According to the table of correlation analysis results in the Appendix (2.2), the correlation coefficient between the pairs of independent variables:
Salary (S1), Welfare (WF2), Work environment (W3), Relationship with colleagues (RC4), Relationship with leaders (RL5), Loyal (L6) all have Sig
= 0.00 < 0.05 This means that there is a correlation between these variables
In addition, the correlation coefficient value between each pair of these variables is correlated, significant with each other Moreover, the value of correlation coefficient between each pair of independent variables and the dependent variable Loyalty (L6) also recorded a Sig value < 0.05, which proves that these pairs of variables are significantly correlated with each other It is also because all the correlation coefficients between the pairs of independent and dependent variables all have Sig values < 0.05, which are correlated with each other, so the author will use all these independent variables in the model analysis regression figure
To determine whether the author's hypothetical model was appropriate, a multivariable linear regression analysis was performed If the analysis's results reveal a value of Sig 0.05 and the regression model's adjusted value is not zero or is appropriate
According to Appendix (2.2), based on the results of the analysis, the Sig values of the variables S1, WF2, W3, and RC4 are all smaller than 0.05, indicating a positive impact on employee loyalty
Employee loyalty is not positively impacted by any of these variables, as seen by the fact that RL5 has a Sig value > 0.05 This indicates that workers of the Bank do not value their relationship with management (RL5) or consider it to be a significant factor in determining their loyalty to the Bank
The normalized regression equation is established as follows based on the aforementioned conclusions:
The initial five factors, according to this regression equation, are: salary, welfare, work environment, relationships with coworkers, and relationships with leaders Only four factors—salary, welfare, work environment, and relationships with coworkers—were kept after regression analysis
In this chapter, the author conducts group discussion to adjust the research model and scale After that, the author distributed 180 survey questionnaires, but only 119 valid forms were collected The author uses Cronbach's alpha reliability scale, exploratory factor analysis (EFA) and correlation analysis between independent and dependent variables
However, with the results in the regression model, there are only 4 factors that have a positive influence on employee loyalty.
CONCLUSION AND RECOMMENDATIONS
Solutions and recommendations
The author makes a number of recommendations based on the TPBank's human resource strategy and development as well as the findings of an analysis of employee loyalty's current state and variables influencing it The following are solutions:
Salary is one of the most crucial elements for workers to consider when selecting a job The wage must be paid in a way that is acceptable in relation to the market and meets basic necessities, which implies that it must be in line with the employee's working ability and contribution to the company
The department head should consult with the human resources employees in each division to get their opinions on the going wage Leaders should make their employees feel safe and comfortable, and the interview needs to take place in a setting with enough space for everyone to feel comfortable to describe their ideas and aspirations
Following employee feedback, leaders should take into account each factor to have a foundation for determining a fair salary for employees, maintaining the current level, or increasing it appropriately Businesses must do precise, scientific employee evaluations and pay workers based on their productivity
Businesses need to strengthen welfare policies in addition to salaries to provide workers the confidence to work hard and stay committed to the organization for a long period To protect the lives of the employees, the leader should analyze and reassess the bonus and allowance system to reflect the needs of the business and the market's economic climate:
- The company has a reward scheme for groups or individuals who have made exceptional successes, and the incentives are computed quickly and paid in that month based on the employee's job performance The company will also have a strategy of awarding accomplishments based on the attainment of individual targets in the monthly evaluation at the conclusion of each fiscal year based on business performance Regulations for the bonus level will be precise, thorough, and equitable
- Every year, the enterprise will organize vacation trips for all employees and family members, with the purpose of:
Taking care of employees' spiritual life, regenerating labor force and improving labor productivity
Create motivation to promote relationships of exchange, learning, sharing experiences, is a playground for people to be closer together, creating better working efficiency
Businesses also need to provide benefits like lunch, overtime, travel reimbursement, and other expenses Employees are also entitled to get various benefits, such as mobile phones, responsibility allowances, per diem, etc., depending on their job title or rank
Businesses must provide employees with the right facilities, including a cool, clean working space and a comfortable temperature for lighting
Additionally, businesses must offer employees access to tools and resources that will support their work to a fair extent Additionally, banks must create and establish a supportive, equitable, and transparent working environment in all organizational activities, assign duties, and create the most transparent working process
5.1.4 Recommendations on the relationship between leaders and employees
Salary and benefits are unquestionably among the most crucial things that keep employees with the bank Another crucial component that keeps workers with a bank for a long time is care and assistance from management, who must understand the value of caring for their staff
Managers should focus on and support female employees, workers under the age of 30, and low-income workers in particular They will assist them in completing their work effectively, forming new connections, bringing in more new clients to the business, and increasing their income because these are very weak adversaries
Additionally, managers must professionally support, mentor, and guide staff members so that they can complete their work well
Instead of appreciating and promoting creative ideas, no matter how big or tiny, in front of the team, managers should never condemn or mock employees' odd ideas
Additionally, managers must treat staff members fairly and without bias because doing otherwise will lead to internal discord and conflict Fairness and transparency should be incorporated into the promotion process
Along with paying attention to staff, managers must also work to strengthen teamwork within the workplace by organizing picnics and other activities that foster cooperation The team makes employees feel at home and connected to their coworkers, which has a big impact on how the business operates every day.
Conclusions
From the current situation of personnel changes at TPBank, Thao Dien branch in particular and the entire TPBank banking system in general The significantly affected the psychology and work efficiency of employees, lost costs and revenue of the Bank The author has done research to determine the motivating elements for leaving a job as well as how those aspects effect employee loyalty through the use of quantitative research techniques such as field surveys and group interviews in qualitative research According to research findings, four factors—salary, welfare, work environment, and relationships with coworkers—have a beneficial impact on employee loyalty The author has put out a number of suggestions in conjunction with the Bank's development direction and goals to assist the bank's leadership and human resources management in having timely adjustment policies to reduce staff turnover and promote employee loyalty
5.2.1 Limitations of the study and suggestions for further research
The branch at Thao Dien, where the study was solely conducted, is a recently opened branch that is still in an unstable state, thus the data collection method may not have produced accurate results
Additionally, the study has some restrictions because of time and financial constraints:
First off, there are numerous elements that affect employee loyalty, but in this study, we only pay attention to five of them: compensation, perks, the workplace, relationships with coworkers, and relationships a connection to leadership
The EFA exploratory factor analysis, regression analysis, and Cronbach's Alpha coefficient are the only methods used in the thesis to evaluate the scale and test the research model However, since this is the author's first study using this methodology, some errors cannot be completely ruled out
The opinions expressed by experts and practitioners are also subjective and personal, therefore they cannot be taken as being entirely true.
OFFICIAL STUDY
Greetings everyone, I’m a student at Banking University of Ho Chi Minh City In order to serve the research project in 2023, I have conducted a survey of your opinions on the issue of employee loyalty in the banking sector
The survey will support the research reporting process and will only be used for research reasons; it will be completely secret and free of any criticism I sincerely hope you will take time to complete the survey
Part 2: Statements on factors affecting the loyalty of employees working at Tien Phong Commercial Joint Stock Bank - Thao Dien
Please indicate your level of agreement with the following statements on a scale of 1 to 5 according to the following convention:
Disagree Normal Agree Strongly agree
1 You believe that your income can ensure your life
2 You feel that your current salary is fair considering your ability to work and your contribution to the bank
3 You feel that your bank is fair in paying employees' salaries, bonuses, and benefits
1 You feel that the company has a good welfare regime
2 You feel fully involved in welfare 1 2 3 4 5 programs
3 In addition to Social Insurance,
Health Insurance, the company's other welfare regimes are diverse and practical (travel, employee birthday, vacation,
4 The company has a good social insurance and health insurance regime
1 The work environment at your bank is secure, clean, and inspiring for you to work
2 You are provided with full equipment to support your work
3 Working tools, and stationery, were provided quickly when required
4 The working process and operation of the Bank are clear, methodical, and easy to understand
1 Your coworkers are cordial and have a positive attitude toward working together
2 Your coworkers are willing to give their insights and counsel when you need them
3 Your colleagues have team spirit, act for the common good of the group
4 There is healthy competition among individuals in the promotion process of the Bank
1 You are treated fairly and without discrimination by your superiors
2 You always feel professionally assisted, instructed, and guided in the workplace at the appropriate moment to finish the work
3 You feel that the superiors value the talents and contributions of employees
1 You would like to introduce the Bank as a good place to work?
2 You will stay at the bank even if other places offer a more attractive income
3 You intend to work with the company for a long time
4 You are willing to sacrifice personal interests when necessary to help the bank become more successful
5 You would like to introduce the Bank as a good place to work?
6 You are very confident to introduce everyone about the bank and its products
OFFICIAL RESEARCH RESULTS
2.2 Check the reliability of the scale by Cronbach's Alpha analysis
Relationship with colleagues factor scale
Relationship with leaders factor scale
Eigenvalue analysis and percent variance extracted
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