The factors affecting employee's satisfaction and loyalty: An evidence from the People's Committee of Binh Tan District, Ho Chi Minh City, Vietnam
Diem, Nguyen Thi Ngoc (2016)
Diem, Nguyen Thi Ngoc
Johtamiskorkeakoulu - School of Management
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Employees are seen as a valuable resource that can contribute in various ways to an organization's activities. In order to prevent the phenomenon of "brain-drain" from the public sectors to other sectors and have a stable human resource, the organization needs to make employees feel satisfied in work and want to have a strong attachment to the organization for a long time by their loyalty. The aim of the study is to explore the factors that affecting the job satisfaction of employees in the People Committee of Binh Tan District, Ho Chi Minh City, Vietnam; to examine the relationship between employees' satisfaction and loyalty; and to provide solutions to improve the degree of satisfaction and loyalty for employees in this organization. The research model includes six variables, including four independent variables (empowerment, salary and rewards, training, and career advancement opportunities), one dependent variable (loyalty) and one intermediate variable (satisfaction). These variables corresponds with five hypotheses. The research is conducted on 170 staffs who are working at People's Committee of Binh Tan District through a survey by the questionnaires. Amos 20 was used to test the model, and then, the author ran Amos 20 for CFA and SEM with purpose of enhancing the value of the model, analyzed the data and brought out the results for this study. The results indicated a remarkably positive correlation between satisfaction with salary and rewards as well as a positive relation was also illustrated between the satisfaction with training and empowerment. However, career advancement opportunities has shown an insignificant relation with satisfaction in this organization. Apart from that, implications for management and policy markers in the context of personnel source in People's Committee of Binh Tan District in particular and the Vietnamese local governments in general are discussed in this study.