STUDY ON EMPLOYEE SATISFACTION ABOUT SALARY, BONUS AND REMUNERATION POLICIES

PSU DIVISIONHOANG THI NGOC TRANG STUDY ON EMPLOYEE SATISFACTION ABOUT SALARY, BONUS AND REMUNERATION POLICIES AT DONG THANH TECHNOLOGY CO., LTD BACHELOR OF BUSINESS ADMINISTRATION THE

PSU DIVISION

HOANG THI NGOC TRANG

STUDY ON EMPLOYEE SATISFACTION

ABOUT SALARY, BONUS AND REMUNERATION POLICIES

AT DONG THANH TECHNOLOGY CO., LTD

BACHELOR OF BUSINESS ADMINISTRATION THESIS

Danang, 2022

PSU DIVISION

UNDERGRADUATE THESIS

STUDY ON EMPLOYEE SATISFACTION

ABOUT SALARY, BONUS AND

REMUNERATION POLICIES

AT DONG THANH TECHNOLOGY CO., LTD

MAJOR: BUSINESS ADMINISTRATION

MENTOR : LE THI KHANH LY

STUDENT : HOANG THI NGOC TRANG

CLASS : K24PSU-QTH4

ID NUMBER : 24202808170

Danang, 2022

has been used without due acknowledgement Except where I have l clearly statedthat I have used some of the this material , it has not been presented by me forexamination in any other course or subject at this or any other institution.

I understand that the work submitted may be reproduced and/or communicatedfor the purpose of detecting plagiarism I understand that should this declaration befalse, I am libel to be penalized under the Duy Tan University regulations

Da Nang, May 2022

Hoàng Thị Ngọc Trang

attention, help and encouragement from teachers, family, friends and colleagues.Completing this thesis is an opportunity for me to express my respect and gratitude First and foremost, I want to express my hearfelt appreciation to my sciencementor, my mentor is Pham Thi Thuy Mien of Duy Tan University’s Faculty ofInternational Education, for spending so much time and enthusiasm in guiding,support me, and accompany me throughout the process of learning andimplementing the thesis

I’d like to express my gratitude to the faculty members of Duy TanUniversity’s Faculty of International Education for their scientific and technicalassistance, as well as for sharing invaluable guidance on protocols, procedures, andformalities when at school learning and writing

I also would like to express my deep thanks to the Board of Directors, friends,and colleagues for creating favorable conditions and supporting me in my work sothat I can participate in research and complete the thesis

Finally, I’d like to express my heartfelt appreciation to my family memberswho have always been there for me, inspired and helped me bothe physically andmentally, and served as my fulcrum and inspiration in life, work and science study

LIST OF TABLES

LIST OF FIGURE

CHAPTER 1: INTRODUCTION 1

1.1 REASONS FOR CHOOSING A RESEARCH TOPIC 1

1.2 RESEARCH OBJECTIVES 2

1.3 SUBJECT AND SCOPE OF RESEARCH 3

1.4 RESEARCH METHODS 3

1.5 SIGNIFICANCE OF THE STUDY 4

CHAPTER 2: RESEARCH OVERVIEW 5

2.1 THEORETICAL BASIS OF SATISFACTION WITH THE POLICY OF SALARY, BONUS AND REMUNERATION OF PERSONNEL 5

2.1.1 Theory of employee satisfaction 5

2.1.2 Theory of salary, bonus and remuneration policies for personnel 5

2.2 MODEL OF PREVIOUS RESEARCH 11

2.2.1 Research by Nguyen Thi Hong (2015) 11

2.2.2 Research by Vu Thuy Duong and Hoang Van Hai (2011) 12

2.2.3 Research by Nguyen Khac Hoan (2010) 13

2.2.4 Research by Nguyen Thi Thuy Quynh (2012) 14

2.3 SUMMARY OF RESEARCH MODELS 15

2.4 PROPOSED RESEARCH MODEL 16

2.4.1 Salary 18

2.4.2 Bonus 18

2.4.3 Allowances, subsidies & welfare 18

2.4.4 Training and advancement opportunities 19

2.4.5 Compensation through work environment 19

3.1 COMPANY OVERVIEW 21

3.1.1 Overview of the formation and development of the company 21

3.1.2 Organizational structure and functions of each department 23

3.1.3 Results of the company's production and business activities 26

3.1.4 Labor situation of the company 29

3.1.5 Salary, bonus and remuneration policy of the company 31

3.2 CONSTRUCTION AND MEASUREMENT OF THE PROPOSED RESEARCH VARIABLES 36

3.2.1 Salary 36

3.2.2 Bonus 37

3.2.3 Allowances, subsidies and welfare 38

3.2.4 Training and advancement opportunities 38

3.2.5 Compensation through work environment 39

3.2.6 Employee satisfaction on salary, bonus and remuneration policies 39

3.3 QUALITY RESEARCH 40

3.3.1 Objectives of qualitative research 40

3.3.2 Design of qualitative research 40

3.4 QUANLITIVE RESEARCH 41

3.4.1 Objectives of qualitative research 41

3.4.2 Quantitative study design 41

3.4.3 Information collection process 41

3.4.4 Sample size 41

3.5 QUESTIONNAIRE 42

3.6 SOME METHODS OF DATA ANALYSIS 43

3.6.1 Descriptive statistics 43

3.6.2 Testing of Cronbach's Alpha scale 43

3.6.3 Factor exploratory analysis 44

3.6.6 Check the correlation phenomenon of residuals 46

CHAPTER 4: RESEARCH RESULTS 47

4.1 QUALITATIVE RESEARCH RESULTS 47

4.2 SAMPLE DESCRIPTION 49

4.2.1 Gender 50

4.2.2 Age 51

4.2.3 Education level 52

4.2.4 Income 53

4.2.5 Test the relationship between gender and education level 54

4.2.6 Test the relationship between gender and age 57

4.3 TESTING THE RELIABILITY OF THE RANGE WITH CRONBACH’S ALPHA 59

4.3.1 Cronbach's Alpha test for independent variables 60

4.3.2 Cronbach's Alpha test for the dependent variable "Employee satisfaction" 65

4.3.3 Summary after checking the reliability of Cronbach's Alpha 66

4.4 EFA FACTOR DISCOVERY ANALYSIS 66

4.4.1 Factor analysis (EFA) for the independent variable 67

4.4.2 Factor Analysis (EFA) for the dependent variable “Employee satisfaction” .70 4.5 MULTI-VARIABLE LINEAR REGRESSION ANALYSIS 72

4.5.1 Check the correlation matrix between the factors 73

4.5.2 Testing of model fit (Adjusted R Square, ANOVA) 74

4.5.3 Test for autocorrelation of residuals (Autocorrelation) 75

4.5.4 Testing of regression coefficients and multicollinearity (Multiple Collinearity) 75

4.5.5 Testing the hypotheses of the research model 76

4.5.6 Test the model's hypotheses 78

CHAPTER 5: CONCLUSIONS AND SOLUTIONS 80

5.1 SUMMARY OF RESEARCH RESULTS 80

AT DONG THANH TECHNOLOGY CO., LTD 81

5.2.1 Salary solution 81

5.2.2 Bonus solution 83

5.2.3 Solutions for Allowances, subsidies and welfare 85

5.2.4 Solutions on Training and advancement opportunities 87

5.2.5 Solutions on compensation through work environment 88

5.3 MEANING OF THE STUDY 90

5.4 LIMITATIONS OF THE RESEARCH 90

5.5 FURTHER RESEARCH DIRECTIONS 91

BIBLIOGRAPHY

APPENDICES

Appendix 1

Appendix 2

2.1 Summary of proposed research models 15

3.1 Production and business situation of Dong Thanh Engineering

3.2 Table of size and labor structure of the Company in 2019-2021 29

3.4 Regulations on accommodation allowances for employees who go

on a business trip to find hotels by themselves 36

3.5 Scale for the factor variable “Salary” 37

3.7 Scale for the factor variable “Allowances, subsidies and welfare” 38

3.8 Scale for the factor variable “Training and advancement

3.9 Scale for the factor variable “Compensation through work

3.10 Scale for the factor variable “Employee satisfaction on salary,

4.1 Qualitative results of model fit assessment 47

4.3 Descriptive analysis of gender factors 50

4.4 Descriptive analysis of age group factors 51

4.5 Descriptive analysis of factors of education level 52

4.6 Descriptive analysis of income factors 53

4.7 Testing the relationship between gender and education level 54

4.8 Pearson Chi-Square table of testing the relationship between

4.9 Testing the relationship between Gender and Age 57

4.10 Pearson Chi-Square table of testing the relationship between

4.13 Cronbach's Alpha test of the factor Allowances, subsidies and

4.18 Total extracted variance of the employee satisfaction component

4.19 Factor loading EFA of employee satisfaction component 69

4.20 KMO-EFA coefficient of employee satisfaction factor 70

4.21 Total variance extracted of employee satisfaction factor 71

4.22 Factor loading EFA of the factor Employee satisfaction 71

4.24 R Square analysis of the fit of the regression equation 74

4.25 ANOVA analysis of the fit of the regression equation 74

4.26 Statistical analysis of residual autocorrelation of the regression

4.27 Regression coefficient of employee satisfaction factors 75

4.28 Coefficients of regression model to test hypotheses of research

4.29 Order of influence of factors on employee satisfaction by % 77

4.30 Hypothesis testing and statistics on the influence of factors on

employee satisfaction on salary, bonus and remuneration policies 78

5.1 Descriptive statistics of the factor “Salary” 81

5.2 Descriptive statistics of the factor “Bonus” 83

5.3 Descriptive statistics of the factor “Allowances, subsidies and

2.1 Research model of Nguyen Thi Hong (2015) 12

2.2 Research model of Vu Thuy Duong and Hoang Van Hai (2011) 12

2.3 Research model of Nguyen Khac Hoan (2010) 13

2.4 Research model of Nguyen Thi Thuy Quynh (2012) 14

2.5 Research model proposes employee satisfaction about salary,

bonus and remuneration policies

4.5 Graph of the relationship between gender and education level 56

CHAPTER 1 INTRODUCTION1.1 REASONS FOR CHOOSING A RESEARCH TOPIC

In Vietnam, the engineering industry plays a very important role in theeconomy, has strong development potential and is considered one of the keyindustries on the industrialization race Modernization aims to improve science andtechnology, shorten the technical gap between developing countries This is anextremely broad industry group and always has the highest demand for recruiting,creates jobs for a large workforce, contributes to poverty alleviation, and at thesame time contributes a significant source of revenue to the national budget

The issue of salary, bonus and personnel treatment is certainly not strange tothose who have been participating in the labor market This is one of theimportant elements of Human Resource Management; is an effective humanresource management and development tool of enterprises A suitable policy ofsalary, bonus and remuneration will be the motivation and inspiration foremployees to devote themselves to work, thereby improving work efficiency andproductivity According to a survey by Ernst & Young, the remuneration factor

is one of the top three reasons why employees leave their positions (over 70%),which demonstrating that salary, bonus and remuneration policies contribute tohelping businesses maintain the stability of human resources because this is one

of the ways for enterprises to attract personnel, retain talented employees towork, minimize job abandonment, thereby improving efficiency of corporategovernance functions In addition, the salary, bonus and remuneration regimesfor personnel have strong impacts on the development of society, ensure thespiritual and material life for employees, improve the quality of life, and reducepoverty social problems, maintaining social stability At the same time, the workefficiency that employees create for businesses also contributes to a certainextent to the national economy, improving the socio-economic life of thecountry Nowadays, the salary, bonus and remuneration policies are applied

flexibly by enterprises, depending on the vision, business strategic goals andespecially the human resource policy that enterprises pursue.

Studies have shown that employees’ satisfaction has a positive effect on theirloyalty to organizations (Luddy, 2005) The study of employees’ satisfaction helpsmanagers plan a good employee retention and development policies, makeemployees more satisfied and limit the phenomenon of "brain drain" From there,leaders can improve, amend and supplement human resource policies in thecompany within the allowable framework to increase work efficiency and increaseemployee engagement with the organization

Over the past 3 years, Dong Thanh Technology Co., Ltd, with stabledevelopment, has successfully laid the foundation and made leaps and bounds inmany aspects from scale, scope of activities to product quality, service In order toaccomplish so, the company needs to have a high-quality workforce According tothe research, every year, a large number of employees quit their jobs, which has asignificant impact on work productivity as well as costly and time to recruit and re-train personnel to compensate for the number of employees resigning Asmentioned above, the salary, bonus and remuneration policy is one of the topreasons for which employees decide to pursue the job or give up In order to assessthe employee's satisfaction about salary, bonus and remuneration, I boldly choosethe topic "Study on employee satisfaction about salary, bonus and remunerationpolicies at Dong Thanh Technology Co., Ltd" as graduation thesis

1.2 RESEARCH OBJECTIVES

Systematizing theories and models on employee satisfaction with the company'scompensation and reward policy, thereby building a research model to assess theemployees’ satisfaction with the compensation and reward policy towards DongThanh Technology Co., Ltd

Determining the factors that affect the employee's satisfaction with the salary,bonus and remuneration policy of Dong Thanh Technology Co., Ltd

Considering the satisfaction level of employees' compensation andcompensation policies with respect to factors and general satisfaction.

Proposing a number of solutions for the company and managers to improveemployee satisfaction with the remuneration and remuneration policy, contributing

to improving the efficiency of the Company's human resource management of DongThanh Technology Co., Ltd

1.3 SUBJECT AND SCOPE OF RESEARCH

 Research subjects

- Subject of research: Satisfaction with salary, bonus and remuneration policies

at Dong Thanh Technology Co., Ltd

- Survey subjects: employees at Dong Thanh Technology Co., Ltd

 Research period: The topic was studied during the internship period fromFebruary 14, 2022 to May 20, 2022

 Research space: Dong Thanh Technology Co., Ltd

1.4 RESEARCH METHODS

 Qualitative research

- Satisfaction survey: Employees’ satisfaction about salary, bonus andremuneration policies at Dong Thanh Technology Co., Ltd

- Collected by survey questions

- Direct interviews with employees who are working directly at the company

- Search for sample information available from domestic and foreign researchpapers

 Quantitative research

Prepare survey questionnaires and collect data After collecting specific dataand content, conducting tests, analysis, synthesis and comparison through Excel,SPSS software

1.5 SIGNIFICANCE OF THE STUDY

Thesis consists of 5 chapters

Chapter 1: Introduction

Chapter 2: Research overview Chapter 3: Research Methods

Chapter 4: Research results

Chapter 5: Conclusion and solutions

CHAPTER 2 RESEARCH OVERVIEW2.1 THEORETICAL BASIS OF SATISFACTION WITH THE POLICY OF SALARY, BONUS AND REMUNERATION OF PERSONNEL

2.1.1 Theory of employee satisfaction

Employee satisfaction is a concept that has not been agreed by researchersfrom different perspectives

Maslow's (1943) need scale theory states that when employees meet the needsfrom low to high Since then, Kusku (2003) suggests that employee satisfactionreflects the needs and wants of employees are met and the extent to whichemployees perceive their work Wright and Kim (2004) also suggested thatemployee satisfaction at work is the match between what employees want from thejob and what they feel from the job

Some researchers believe that employee satisfaction is the employee's positiveemotional state with work expressed through their behavior and beliefs (Vroom,1964; Locke, 1976; Quinn and Staines, 197) ; Weiss et al., 1967)

Employee satisfaction would be defined as the amount of generally positive oremotional influence an individual has on his or her job (Fieldman and Arnold).Although there are many different definitions of employee satisfaction, theyare generally defined in two aspects: general job satisfaction and satisfactionobtained when employees have a feeling of enjoyment and comfort and showpositive responses to aspects of their work

2.1.2 Theory of salary, bonus and remuneration policies for personnel

2.1.2.1 Concepts, forms and roles of salary, bonus and remuneration for personnel

 Salary

- Concept:

Salary is an important aggregate economic category in the producing economy, it represents the remuneration that workers receive after a

commodity-period of working for the enterprise or the owner based on the amount of money ,the quality of labor that that person spends and the production and business results

of his/her unit

According to the International Labor Organization (LLO) “Salary areremuneration or income whatever the name or crystal, which is expressed in termsand is fixed by the agreement between the employer and the employee, or bynational law or regulation, established by the employer payable to a worker under awritten or oral contract of employment, to a worker performed or to be performed,

or for services performed or to be performed"

According to Article 55 of the Labor Code of our country: "The employee'ssalary is agreed upon by the two parties in the contract and is paid according tolabor productivity, quality and work efficiency" not lower than the minimum salaryprescribed by the State

Salary is formed from three components: basic salary (accounting for 70-80%

of salary), allowances, subsidizes and bonuses

- Role: Salary plays an important role for employees and the whole business.They have the effect of compensating for labor for employees, encourageemployees to work with peace of mind For enterprises, salary is considered a part

of production costs, an important lever to improve business efficiency ofenterprises Organizing salarys in a fair and reasonable enterprise will contribute tomaintaining, consolidating and developing its labor force

 Bonus

- Concept: Bonus is actually an additional amount of salary in order to bettergrasp the principle of distribution according to labor and improve efficiency inproduction and business of enterprises Bonus is the amount of money that thebusiness pays to employees because they have contributed achievements beyond thelevel specified by the business

- Bonus forms: Bonuses according to national holidays; Bonuses based onbusiness results (quarterly or annually); Bonus according to sales revenue(Monthly); Bonuses for saving materials; Bonuses for technical innovation

initiatives; Bonus for completing the schedule earlier than prescribed; Bonuses due

to good quality productivity; Bonus for finding a place to supply, consume, sign anew contract; Bonus for ensuring working day, etc

- Role: Bonus acts as a material incentive for employees in the working process,has a very positive effect for them to strive to perform better, thereby improvinglabor productivity and product quality products, shortening working time Bonusestogether with base salary make up the main cash earnings of employees Therefore,bonuses also contribute to helping employees satisfy the material and spiritual needs

of themselves and their families to a higher degree To some extent, bonuses aremore powerful incentives than salarys

 Human resources treatment

- Concept:

Employee compensation is the process of taking care of employees' materialand spiritual lives so that they can well complete their assigned tasks and therebycontribute to the accomplishment of the enterprise's goals

Human resource compensation is a process in which every manager isresponsible for employee compensation, from formulating compensation policies toorganizing and implementing remuneration in the enterprise Personnelremuneration must aim at satisfying the physical and mental needs of employees

- Role

For employees, human resource treatment creates conditions for employees toimprove their material and spiritual life Thus, new employees can gain motivation

to work, achieve the highest efficiency and have more attachment and confidence inthe job and the enterprise

For enterprises, human resource treatment is a sufficient condition to improvethe quality and efficiency of production and business activities of each enterprise,contributing to maintaining a stable and qualified human resource, thereby ensuringthe business process of enterprises Human resource benefits help improve theefficiency of other human resource management functions in the enterprise, in order

to create a humanistic cultural environment in the enterprise, helping to strengthenand develop the spirit of the enterprise and employees

For society, human resource compensation helps maintain stable and qualityhuman resources for the society, contributes to ensuring socio-economic stabilityand creates favorable conditions for the implementation of the developmentstrategy human development of each country

2.1.2.2 Factors affecting the policy of salary, bonus and remuneration of personnel

Any employee working for an enterprise wants to receive a salary, bonus andremuneration commensurate with their ability and competitive with the market.Therefore, enterprises need to analyze all the factors affecting to make a specificsalary, bonus and remuneration policy for employees in a suitable and correct way

If we ignore the study of these factors, the salary, bonus and remuneration systemwill be subjective and biased In general, looking at the chart below, we will see thefour most important factors to consider These are four factors: (1) the companyenvironment, (2) the labor market, (3) the job itself, and (4) the employee himself.Specifically:

 Company environment

- Company policy: If a company wants to attract many talents, the salary, bonusand remuneration policy must be higher, more complete and have more benefits foremployees than other companies

- Company culture: Company culture is one of the important prerequisites inensuring the existence and development of a business It greatly affects the way

employees are selected, the attitudes of superiors and subordinates, etc., thus alsoaffecting the salary, bonus and remuneration regimes for employees In companieswith a long cultural tradition, employees are really cared for, and the remuneration

is fair, satisfactory and reasonable

- Business efficiency: Normally, enterprises with large resources, especiallyfinancial resources, good business situation, such enterprises will perform better inremuneration, salary and bonus than non-business enterprises effective andinefficient

- Organizational structure: If the company has many managers, the salarystructure is detrimental to employees because senior managers do not go in-depth,

go closely to employees, greatly affect the money structure salary

 Labor market:

- Salary factor: The fierce competition in the labor market will inevitably lead

to an unstable supply - demand situation This is an important factor that directlyaffects the remuneration of the company Leaders will rely on changes in the labormarket to offer appropriate remuneration packages to attract and retain highlyqualified employees Special attention should be paid to the general level of salary,bonus, welfare, allowance, etc in an industry or a business field in order to have areasonable remuneration regime to ensure competitiveness in order to attract,Maintain human resources in the enterprise

- Cost of living: Enterprises need to pay more attention to the daily life ofemployees in order to have a remuneration regime to ensure living expenses foremployees With a market with a lot of fluctuations in prices like ours, businessesneed to quickly adjust the salary fund and remuneration regime accordingly andensure the employees' lives so that they can devote their energy and intelligence forbusiness

- Economy: The state of economic growth or recession directly affects thebusiness activities of enterprises, thereby affecting the financial remuneration ofenterprises

- Society: Society will put pressure on some businesses not to arbitrarily raisesalary and increase selling prices Because they do not want salary, benefits, etc toincrease, this will affect the price of products and services.

- Law: In any society, the law has specific regulations to protect employees:working time, rest time, employee protection policies, salary regulations minimumlabor safety measures, etc Enterprises, when offering a remuneration regime, mustcomply with the provisions of the law and be responsible before the law for theirregime

- Loyalty: Loyal employees who have worked for a long time at the companyenjoy higher remuneration than others, mainly in the form of benefits Their paidleave will be longer than others

- Potential of employees: A good leader must know how to steer, lead and guideemployees to develop their potential, this is not something that every leader can do.One way is to offer a high salary and more attractive benefits than other employees.When superiors care about them, such employees will find themselves recognizedfor their contributions and will become more and more confident, devoting theirabilities to the common purpose of the Company

 The work itself:

- Working conditions: Depending on working conditions, employees areentitled to remuneration employees working in difficult and hazardous conditions,

in remote areas, etc are entitled to higher-than-average remuneration and inaddition to regional allowances, etc.

- Nature of work: in enterprises, jobs of different nature will have differentsalaries and bonuses For important, dangerous and toxic jobs (police, working intoxic chemical factories, in mines, under the sea, etc.) requiring highly skilledemployees, good health will receive a higher remuneration than employees doingordinary jobs When offering remuneration to employees, administrators will base

on the nature of work of each employee and group of employees to have appropriateand fair regimes in the enterprise

- Working conditions: As mentioned above, in different working conditions, thesalary and bonus will also be different if the employee works in an environment with difficult, hazardous and dangerous conditions, the employee will enjoy a higher salary and bonus than the employee working in normal conditions Often employees work in remote areas, lacking facilities and technical equipment, etc in addition to high remuneration, employees also receive regional allowances

2.2 MODEL OF PREVIOUS RESEARCH

2.2.1 Research by Nguyen Thi Hong (2015)

Research by Nguyen Thi Hong is quoted in Hue University Magazine No 50(2015) with the title “Đánh giá sự hài lòng của người lao động gián tiếp về chínhsách đãi ngộ tài chính của Công ty TNHH Triệu Mạnh” This topic has moreadvantages than those mentioned above because it used a scale of 4 options to avoidthe trend of averaging, and proposed a model consisting of 5 factors affecting thelevel of employees' satisfaction is: salary; bonus; allowances, subsidize and welfare;compensation through work and compensation through work environment Inwhich, the regression results show the salary and bonus factors; welfare factor; Thefactor of compensation through work and the factor of compensation through theworking environment are the four most important factors and are proposed by theauthor to be the top priority to solve

Figure 2.1: Research model of Nguyen Thi Hong (2015)

2.2.2 Research by Vu Thuy Duong and Hoang Van Hai (2011)

This study is cited in the Human Resource Management Textbook (2005),Statistical Publishing House with the title “Đo lường mức độ thỏa mãn đối với côngviệc trong điều kiện của Việt Nam” indicating 6 factors: salary; bonus; stock;allowance; subsidize; welfare affect employee satisfaction

Figure 2.2: Research model of Vu Thuy Duong and Hoang Van Hai (2011)

Satisfactionrating

Salary

Bonus

Allowances, subsidize and welfare

Compensation through work

Compensation through work environment

SatisfactionMeasurement

2.2.3 Research by Nguyen Khac Hoan (2010)

In the research by Nguyen Khac Hoan on “Các yếu tố ảnh hưởng đến động lựclàm việc của nhân viên áp dụng tại Ngân hàng Thương mại Cổ Phần Á Châu, chinhánh Huế”, quoted in Hue University Magazine No 60 (2010) pointed out 5factors affecting employee's work motivation: Compensation through workenvironment; salary bonus and welfare; work arrangement; training andadvancement opportunities and career prospects In terms of advantages, throughstudying this document, I see that the author has made an assessment of theelements of the model, and at the same time focused on providing solutions to theproblems facing businesses research

Figure 2.3: Research model of Nguyen Khac Hoan (2010)

Employeemotivation

Compensation through work environment

Salary, bonus and welfare

Work arrangement

Training and advancement opportunities

Career prospects

2.2.4 Research by Nguyen Thi Thuy Quynh (2012)

In the study by Nguyen Thi Thuy Quynh (2012) on “Sự hài lòng của nhânviên Eximbank chi nhánh Đà Nẵng” quoted in the Scientific Journal of Hong DucUniversity, pointed out 7 factors: nature of work; promotion training; leader;colleague; salary, bonus; welfare; compensation through work environment affectsemployee satisfaction

Figure 2.4: Research model of Nguyen Thi Thuy Quynh (2012)

Employeesatisfaction

2.3 SUMMARY OF RESEARCH MODELS

Table 2.1: Summary of proposed research models

Nguyễn Thị Hồng (2015)

Vũ Thùy Dương và Hoàng Văn Hải (2011)

Nguyễn Khắc Hoàn (2010)

Nguyễn Thị Thúy Quỳnh (2012)

Compensation through work x

Compensation through work

From Table 2.1 we get the following results:

 Factors "Salary", "Bonus" and "Welfare" are 3 factors that always appear in 4 research models

 Factors “Compensation through work environment” appear in 3 research models

 Factor “Allowances”, ‘Subsidies”, “Training and promotion” appears in 2

research models

 Factors “Stocks”, “Colleague”, “Leader”, “Promotion training”, “Compensationthrough work “, “Work arrangement”, “Career prospects”, “Nature of work” each factor appears in a research model

2.4 PROPOSED RESEARCH MODEL

To explore the factors affecting employee satisfaction about salary, bonus andremuneration policies, based on theoretical explanations, related research works,based on research models According to previous research in Section 2.3 andthrough the discussion about the Company's personnel compensation regime,managers believe that there is not much difference in the factors of allowances,allowances and benefits From the information collected about the theory combinedwith the research desire of the intern, these 3 factors are grouped into a group, theauthor chooses the proposed model through the frequency of occurrence of thevariables including 5 factors affecting employee satisfaction in terms of salary,bonus and remuneration policy at Dong Thanh Technology Co., Ltd include: (1)salary; (2) bonus; (3) Allowances, subsidies and welfare; (4) Training andadvancement opportunities; (5) Compensation through work environment Fromthat, the following research model is proposed:

Figure 2.5: Research model proposes employee satisfaction about salary, bonus

and remuneration policies.

Table 2.2: Scale of proposed research variables

year

Place of publication

1 Salary Measuring job Vu Thuy 2005 Statistical

Employee satisfaction on Salary, bonus

& remuneration policies

H1H2

H4H3

H5

Salary

Bonus

Allowances, subsidies and welfare

Training and advancement opportunities

Compensation through work environment

No Factor Reference study Author Publishing

year

Place of publication

satisfaction interms of Vietnam

Duong &

HoangVan Hai

PublishingHouse

employees'satisfactionindirectly about thefinancialcompensationpolicy of TrieuManh Co., Ltd

NguyenThi Hong 2015

HueUniversityMagazine3

at Asia CostCommercial Bank,Hue branch

NguyenKhacHoan

UniversityMagazine

NguyenThi ThuyQuynh

2012

ScientificJournal ofHong DucUniversity

2.4.1 Salary

This is a factor that has a large influence on employee satisfaction in salary,bonus and remuneration policies Especially for employees who want to receive asalary according to the set goals in order to accumulate a sufficient amount to cover

their lives or compensate for their efforts in the past time, etc Finally, salary is apart of the value that employees deserve when they contribute to creating commonvalues for the company, helping employees easily achieve satisfaction in salary,bonus and remuneration policies.

H1: Salary has a positive effect on employee satisfaction in terms of salary, bonus and remuneration policies.

2.4.2 Bonus

Bonuses are one of the factors that motivate employees to work Rewardingthe right people at the right time will make employees excited to work and feelrespected Because every human being in general and employees in particularworking has a motivation and needs to be satisfied, in which salary and bonus is animportant factor to satisfy them To some extent bonuses are even more powerfulthan salary Individual rewards demonstrate dedication to the overall results of theorganization Collective rewards create cohesion, solidarity and competition amongemployees In short, bonuses are a part of the value that employees deserve whenthey have contributions and achievements that exceed the standards of the business,contribute to creating common values for the company, helping employees easilyachieve satisfaction

H2: Bonus has a positive effect on employee satisfaction in terms of salary, bonus and remuneration policies.

2.4.3 Allowances, subsidies and welfare

The factor of Allowances, subsidies & welfare is also focused by manyworkers when choosing a certain job Allowances and subsidies are made to helpemployees overcome difficulties caused by specific circumstances (such astemporary cessation of work, problems with travel, housing, daily life, healthinsurance, social insurance, etc.) ; compensate employees when they work inunfavorable conditions but have not been included in the basic salary Whenemployees receive this compensation in time, they will improve their satisfaction

with salary, bonus and compensation policies more Besides, the welfare factor is anessential factor for employee satisfaction in salary, bonus and remunerationpolicies If the enterprise always has good welfare regimes for its employees andtheir family members, it will make them stick around longer with the enterprise aswell as continuously improve the level of satisfaction with the enterprise, and strive

to bring about better results best results for the common good

H3: Allowances, subsidies and welfare has a positive effect on employee satisfaction in terms of salary, bonus and remuneration policies.

2.4.4 Training and advancement opportunities

Training opportunities relate to employees' awareness with the opportunity toimprove their professional knowledge, experience, and develop their own capacity.Employees will be more satisfied with an environment that allows them to improveevery day, through each job than a job of a repetitive and boring nature In addition,accurately assessing employee capacity is the basis for determining promotionopportunities in the organization in the long run, which is also a factor that helpsemployees improve their satisfaction with the business

H4: Training and advancement opportunities has a positive effect on employee satisfaction in terms of salary, bonus and remuneration policies.

2.4.5 Compensation through work environment

In an era of increasingly developed society, employees go to work not only for

"a piece of rice and clothes" The working environment factor is focused by manypeople when doing a certain job By applying forms of compensation through theworking environment such as: creating a working atmosphere, regulations andbuilding behavioral relationships among employees, ensuring labor safety andhygiene, the organization cultural movements and physical training and sports,etc.will contribute to creating a comfortable working spirit for employees, making themsatisfied and ready to bring their strength and intelligence to work and dedicatethemselves In addition, the behavior of leaders when commending, criticizing and

rewarding employees is also very important, it has a strong impact on the moraleand satisfaction of the collective staff with respect to the salary and bonus policy.and personnel treatment.

H5: Compensation through work environment has a positive effect on employee satisfaction in terms of salary, bonus and remuneration policies.

2.4.6 Employee satisfaction on salary, bonus and remuneration policies

Employee satisfaction on salary, bonus and remuneration policies is the mostimportant factor that businesses need to consider carefully, this is a dependentvariable on the above factors Making the right policy helps employees to have theright treatment as expected, earn an income according to their wishes, they will alsofeel more motivated to work, etc And vice versa, if the business gives wrongsalary, bonus and remuneration policies, which means that what they spend will notget good results, even leaving consequences

CHAPTER 3: RESEARCH METHODS 3.1 COMPANY OVERVIEW

3.1.1 Overview of the formation and development of the company

3.1.1.1 General introduction

 Company name: Dong Thanh Technology Co., Ltd

 Abbreviation: DTHE CO.,LTD

 Being a professional refrigeration and mechanical contractor

 Be a reliable partner with customers for sustainable development

3.1.1.3 Core values

 Pioneer: leading in technology, creativity and breakthrough

 Enthusiasm: Tireless and full of enthusiasm

 Humanity: Focusing on people is the key factor

 Honesty: Behave honestly and transparently in all activities

 Fairness: Fair to customers and partners

3.1.1.4 The process of formation and development

Dong Thanh Engineering Company Limited was officially established in April

2019 with a production area of about 5000m2, with the task of supplying, designingand installing all mechanical and electrical systems of the works Although thepremises are quite good, the company's technical facilities have not beenmodernized much Dong Thanh Technology Co., Ltd, independent economicaccounting, financial autonomy marked a new development phase

After being established, to create a foothold in the market In June 2019, thecompany cooperated with Toyota, implementing a project to install VRV airconditioning system for Toyota showroom in Hue The first big project, bringing alot of profit for the company, marked the first step of development in the earlystage

In January 2020, cooperating with domestic and foreign partners such as NamPhat Resort, Specter Garment Technologies, Sacombank, Techcombank, MensaIndustries, Top Glove Corporation,etc to execute many assembly, maintenance andrepair projects machinery, contributing to improving labor productivity andspeeding up operations

In August 2020, expanding the production scale to add more industrialrefrigeration system workshops; air conditioning and ventilation systems; heavy andlight electrical systems; fire protection system; water supply and drainage system;mechanical services and other related industries

In early 2021, Dong Thanh Engineering Co., Ltd seemed to be slowed down

in many aspects because of the Covid-19 pandemic, construction activities had to betemporarily delayed, making the company's situation unstable, business activitiesuneven development

From July 2021 to present, the company has made great efforts to operateagain after the Covid-19 Pandemic At the same time, opening a new transactionoffice at 31 Cao Xuan Duc, Thuan Phuoc Ward, Hai Chau District, Da Nang,Vietnam

Currently, the company has attracted 170 regular employees and is on a stronggrowth momentum, the lives of employees are being improved In the coming time,the company will continue to select and train 100 more labor, assembly technician

to execute more projects Over the years, Dong Thanh Technology Co., Ltd hasperformed well its obligations to the state, paid the land rent in full and paid into thestate budget many millions of dong From there, we can see that the company'sformation and development process is quite rapid, thanks to the efforts of internalemployees The company will try to exploit the full potential in the country withmore than 70 million people and penetrate the international market.

After 3 years of operation, Dong Thanh Technology Co., Ltd has strived toovercome many difficulties during the Covid-19 pandemic, challenging to assertitself in the market Not only satisfied with what has been achieved, the wholeCompany always strives to complete and exceed production plans, best respond tomarket demand, create a solid foundation for future development

3.1.2 Organizational structure and functions of each department

Office supplies DepartmentProject

Project steering committee

Construction teams

Occupational safety and quality management department

Contract management departmentDevelopment

Manager

 Chairman of the Board: is the person in general in charge, managing andsupervising all activities of the company, responsible to the State for the situation ofproduction and business activities of the Company, the efficiency as well ascompliance with applicable laws.

 Director: is the person who manages, directs and operates the company'sdaily production and business activities, appointed by the chairman Having theright to decide on contracts with a value of less than 50%, decide on developmentstrategies, long-term and short-term plans, and annual business plans of thecompany

 Vice Director: is responsible for assisting the Director in directing a number

of employees in production management, labor mobilization,etc Advising andassisting the Director in formulating the production plan and urging theimplementation of the plan

 Development Manager: project manager, responsible for the construction andorientation of the company's works

 Professional departments:

- Administrative and human resources Department: advises and supports theBoard of Directors in all matters related to the organization and management ofpersonnel, administrative management, as well as legal and operational issues.recruitment, communications and public relations Develop salary regulations, laborrules, working regulations and processes and regulations in recruitment, training,appointment, dismissal, dismissal, commendation, discipline, and evaluation ofemployees with employees in the enterprise Coordinate with grassroots TradeUnion to develop annual welfare and reward program The Human ResourcesDepartment is responsible for the work performed within the scope of its assignedtasks and authority

- Accounting Department: It is the department that assists the director inorganizing the Finance - Accounting - Credit apparatus throughout the company,helping the director to check and control in cash the assets and economic andfinancial activities main in the company Orientation to build short-term and long-

term financial plans, find ways to create capital and attract capital At the sametime, strictly manage the company's investment capital Balance and use capitalsources reasonably and effectively Periodic reports on financial settlement, quickreports on all production and business activities for the director to make timelyadjustments Employee's monthly salary browser ensures accurate and on time.

- Materials Department: Receiving, checking, making statistics and proposingthe purchase and sale of equipment, ensuring that all materials are fully met foroperating departments in the company The Materials Department will coordinatewith the Accounting Department to make a scientific financial spending plan,ensuring effective spending; Coordinate with other departments to develop plansand processes in transportation, assembly and construction

- Project Department: Is the department that prepares bids, makes estimates,breaks down estimates, appraises estimates; make short-term and long-terminvestment and business projects, manage investment projects that have beenimplemented and are being implemented to ensure the most effective results;formulating projects, business plans, association and cooperation with domestic andforeign partners in the fields of investment, production and business; relying onforeign relations, looking for lucrative construction projects; assigning works tounits of construction team, deploying the contract; submit to the director forapproval of investment projects or additional tasks for member units

3.1.3 Results of the company's production and business activities

Table 3.1: Production and business situation of Dong Thanh Engineering Co., Ltd

-Net revenue from selling

goods and providing

Other costs - - 25 -

Total profit before tax 18 614 151 3311% -75%

Cost of goods sold has grown continuously for 3 years, from 3,664 millionVND (2019) to 21,903 (2020), equivalent to an increase of 498% and continuing toincrease to 54,086 million VND (2021), equivalent to an increase of 147% Thereason for this growth is that the company has gone into stable production with anannual increase in output, causing direct employee COSTS, direct labor costs, etc

to increase along with the cost of goods sold

Revenue from financial activities fluctuates from year to year, however, it doesnot have a great influence on the total revenue of the company As in 2020,financial income grew by 1150% compared to 2019, but total revenue only grew by527%, while net revenue from sales and service provision increased by 525% Thereason is that all three sources of income from financial activities are very low,because the company is in the period of concentrating capital for production

activities, investing in equipment, etc So in the following years when Thecompany's production and business activities have stabilized, so the companyshould spend more capital for financial activities, so that this income accounts for ahigher proportion of the total revenue structure.

Profit from business activities fluctuates sharply from year to year, specificallyfrom 18 million VND (2019) to 614 million VND (2020), equivalent to an increase

of 596 million VND and decreased to 43 million VND (2021) equivalent to adecrease of 571 million VND This increase or decrease may be due to theenterprise having to pay large costs of selling or administrative expenses, or due tothe impact of the Covid-19 pandemic in 2021

In 2020, total profit before tax increased by 3311%, equivalent to an increase ofVND 614 million compared to 2019 This negative growth is due to the company'stotal revenue increased by VND 20,190 million, making the total profit pre-taxargument increases But the total cost in this year also increased by 19,595 milliondong, reducing the total profit before tax by the same amount Thus, the reason forthe sharp increase in total revenue before tax is the increase in total revenue,although total costs increased significantly, but overall, it is not equal to the increase

in total revenue Show that the company has performed well this year, theinvestments have been on the right track, bringing the company a lot of income

We see an increase in the company's profit after tax of 14 million in 2019,increasing to 528 million in 2020, equivalent to an increase of 3671% Thus, in

2020 compared to 2019, production and business companies tend to grow andfluctuate in a good direction On the other hand, in 2021 compared to 2020, profitafter tax decreased from 528 million to 115 million, equivalent to a decrease of78%, showing that the company's production and business tends to decrease,contrary to the development trend, It may be due to the influence of many reasonsthat we will learn later such as the world market fluctuates in a bad direction, or thecompany's services do not meet the needs of consumers, etc