STUDY ON EMPLOYEE SATISFACTION ABOUT SALARY, BONUS AND REMUNERATION POLICIES AT DONG THANH TECHNOLOGY CO , LTD

2 DUY TAN UNIVERSITY INTERNATIONAL SCHOOL PSU DIVISION UNDERGRADUATE THESIS STUDY ON EMPLOYEE SATISFACTION ABOUT SALARY, BONUS AND REMUNERATION POLICIES AT DONG THANH TECHNOLOGY CO , LTD MAJOR BUSINES.

INTERNATIONAL SCHOOL

PSU DIVISION -

UNDERGRADUATE THESIS

STUDY ON EMPLOYEE SATISFACTION ABOUT SALARY, BONUS AND REMUNERATION POLICIES AT DONG

THANH TECHNOLOGY CO., LTD

MENTOR : LE THI KHANH LY

STUDENT : HOANG THI NGOC TRANG

CLASS : K24PSU-QTH4

ID NUMBER : 24202808170

Danang, May 2022

CHAPTER 1: INTRODUCTION

1.1 REASONS FOR CHOOSING A RESEARCH TOPIC

1.2 RESEARCH OBJECTIVES

1.3 SUBJECT AND SCOPE OF RESEARCH

1.4 RESEARCH METHODS

1.5 SIGNIFICANCE OF THE STUDY

CHAPTER 2 : RESEARCH OVERVIEW

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

2.1.1 Theory of employee satisfaction 3

2.1.2 Theory of salary, bonus and remuneration policies for personnel 3

2.2MODEL OF PREVIOUS RESEARCH

2.2.1 Research by Nguyen Thi Hong (2015) 3

2.2.2 Research by Vu Thuy Duong and Hoang Van Hai (2011) 3

2.2.3 Research by Nguyen Khac Hoan (2010) 3

2.2.4 Research by Nguyen Thi Thuy Quynh (2012) 3

2.3 SUMMARY OF RESEARCH MODELS

2.4 PROPOSED RESEARCH MODEL

2.4.1 Salary 4

2.4.3 Allowances, subsidies & welfare 5

2.4.4 Training and advancement opportunities 5

2.4.5 Compensation through work environment 5

2.4.6 Employee satisfaction on salary, bonus and remuneration policies 5

CHAPTER 3: RESEARCH METHODS

3.1 COMPANY OVERVIEW

3.1.1 Overview of the formation and development of the company 6

3.1.2 Organizational structure and functions of each department .6

3.1.3 Results of the company's production and business activities .6

3.1.4 Labor situation of the company 6

3.1.5 Salary, bonus and remuneration policy of the company 6

3.2 CONSTRUCTION AND MEASUREMENT OF THE PROPOSED RESEARCH VARIABLES

3.2.1 Salary 7

3.2.2 Bonus 7

3.2.3 Allowances, subsidies and welfare 8

3.2.4 Training and advancement opportunities 8

3.2.5 Compensation through work environment 9

3.2.6 Employee satisfaction on salary, bonus and remuneration policies 9

3.3 QUALITY RESEARCH

3.3.2 Design of qualitative research 10

3.4 QUANLITIVE RESEARCH

3.4.1 Objectives of qualitative research 10

3.4.2 Quantitative study design 10

3.4.3 Information collection process 10

3.4.4 Sample size 10

3.5 QUESTIONNAIRE

3.6 SOME METHODS OF DATA ANALYSIS

3.6.1 Descriptive statistics 10

3.6.2 Testing of Cronbach's Alpha scale 10

3.6.3 Factor exploratory analysis 10

3.6.4 Build regression equation 10

3.6.5 Test the research hypothesis 10

3.6.6 Check the correlation phenomenon of residuals 10

CHAPTER 4: RESEARCH RESULTS

4.1 QUALITATIVE RESEARCH RESULTS

4.2 SAMPLE DESCRIPTION

4.2.1 Gender 11

4.2.2 Age 11

4.2.3 Education level 11

4.2.4 Income 11

4.2.5 Test the relationship between gender and education level.11 4.2.6 Test the relationship between gender and age 11

CRONBACH’S ALPHA

4.3.1 Cronbach's Alpha test for independent variables 11

4.3.2 Cronbach's Alpha test for the dependent variable "Employee satisfaction" 14

4.3.3 Summary after checking the reliability of Cronbach's Alpha 15

4.4 EFA FACTOR DISCOVERY ANALYSIS

4.4.1 Factor analysis (EFA) for the independent variable 15

4.4.2 Factor Analysis (EFA) for the dependent variable “Employee satisfaction” 16

4.5 MULTI-VARIABLE LINEAR REGRESSION ANALYSIS

4.5.1 Check the correlation matrix between the factors 17

4.5.2 Testing of model fit (Adjusted R Square, ANOVA) 19

4.5.4 Testing of regression coefficients and multicollinearity (Multiple Collinearity) 20

4.5.5 Testing the hypotheses of the research model 20

4.5.6 Test the model's hypotheses 21

CHAPTER 5: CONCLUSIONS AND SOLUTIONS

5.1 SUMMARY OF RESEARCH RESULTS

5.2 SOME PROPOSED SOLUTIONS TO IMPROVE EMPLOYEE SATISFACTION ON SALARY, BONUS AND RECOMMENDATION POLICY AT DONG THANH TECHNOLOGY CO., LTD

5.2.1 Salary solution 22

5.2.3 Solutions for Allowances, subsidies and welfare 23

5.2.4 Solutions on training and advancement opportunities 23

5.2.5 Solutions on compensation through work environment 23

5.3 MEANING OF THE STUDY

5.4 LIMITATIONS OF THE RESEARCH

5.5 FURTHER RESEARCH DIRECTIONS

CHAPTER 1: INTRODUCTION 1.1 REASONS FOR CHOOSING A RESEARCH TOPIC

Firstly, the issue of salary, bonus and personnel treatment iscertainly not strange to those who have been participating in thelabor market This is one of the important elements of HumanResource Management

According to research, the salary, bonus and remunerationpolicy is one of the top reasons why employees choose to work orquit

Second, the study of employee satisfaction helps managers plangood employee retention and development policies, make employeesmore satisfied and limit the phenomenon of "brain drain"

Therefore, in order to assess employee satisfaction about salary,bonus and remuneration, I boldly choose the topic "Study onemployee satisfaction about salary, bonus and remuneration policies

at the Company." Dong Thanh Technology Co., Ltd”

1.3 SUBJECT AND SCOPE OF RESEARCH

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 OVERVIEW

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

2.1.1 Theory of employee satisfaction

2.1.2 Theory of salary, bonus and remuneration policies for personnel

2.2MODEL OF PREVIOUS RESEARCH

2.2.1 Research by Nguyen Thi Hong (2015)

5 factors affecting the level of employees' satisfaction is:salary; bonus; allowances, subsidize and welfare; compensationthrough work and compensation through work environment

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

Pointed out 6 factors: salary; bonus; stock; allowance;subsidize; welfare affect employee satisfaction

2.2.3 Research by Nguyen Khac Hoan (2010)

Pointed out 5 factors affecting employee's work motivation:Compensation through work environment; salary bonus and welfare;work arrangement; training and advancement opportunities andcareer prospects

2.2.4 Research by Nguyen Thi Thuy Quynh (2012)

Pointed out 7 factors: nature of work; promotion training;leader; colleague; salary, bonus; welfare; compensation throughwork environment affects employee satisfaction

2.3 SUMMARY OF RESEARCH MODELS

2.4 PROPOSED RESEARCH MODEL

Figure 2.5: Research model proposes employee satisfaction about

salary, bonus and remuneration policies.

on Salary, bonus & remuneration policies

H1

H2

H4H3

2.4.3 Allowances, subsidies & welfare

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

2.4.4 Training and advancement opportunities

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

2.4.5 Compensation through work environment

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

2.4.6 Employee satisfaction on salary, bonus and remuneration policies

CHAPTER 3: RESEARCH METHODS

3.1.1.2 Vision, mission

3.1.1.3 Core values

3.1.1.4 The process of formation and development

3.1.2 Organizational structure and functions of each department 3.1.3 Results of the company's production and business activities 3.1.4 Labor situation of the company

3.1.5 Salary, bonus and remuneration policy of the company

3.1.5.1 Salary policy

3.1.5.2 Bonus policy

3.1.5.3 Remuneration policy

3.2 CONSTRUCTION AND MEASUREMENT OF THE PROPOSED RESEARCH VARIABLES

S2 The company pays salarys on time

S3 The company has a reasonable

salary increase regime

S4 Convenient payment method Nguyen Thi Hong

(2015)B3 The reward level is worthy of the

contribution

Pham Thi Thanh(2015)

B4 The bonus at the company is very

attractive

3.2.3 Allowances, subsidies and welfare

Table 3.7: Scale for the factor variable “Allowances, subsidies and

welfare”

Encod

e

Allowances, subsidies and welfare Source

W1 The company has different levels of

allowances, various allowances and

benefits in accordance with job

characteristics

Pham ThiThanh(2015)W2 Fully implement insurance policies

W3 The company's various and attractive

allowances, subsidies and welfare programs Nguyen Thi

Hong(2015)

W4 Cool and free parking space

W5 Organizing annual trips for employees

W6 Welfare shows the company's thoughtful

attention to employees

Vu NgocSang(2014)

3.2.4 Training and advancement opportunities

Table 3.8: Scale for the factor variable “Training and advancement

P1 The company always creates conditions

for learning to improve knowledge and

Thanh (2015)P2 There are many opportunities for

promotion

P3 Clear promotion policy

3.2.5 Compensation through work environment

Table 3.9: Scale for the factor variable “Compensation through

work environment”

Encod

e

Compensation through work environment Source

CTE1 The number of tasks assigned in a day is

reasonable

Pham ThiThanh(2015)

CTE2 Provide adequate equipment to serve the

work

CTE3

The company regularly organizes cultural,

artistic and sports movements to

encourage employees to participate

CTE4 Feeling comfortable and safe at your

workplace

Vu NgocSang(2014)

3.2.6 Employee satisfaction on salary, bonus and remuneration policies

Table 3.10 Scale for the factor variable “Employee satisfaction on

salary, bonus and remuneration policies”

SA1 Satisfied with the salary and bonus

Thanh (2015)

SA2 Satisfied with the policy of

allowances, allowances and benefits

SA3 Satisfied with the training and

(2014)

SA4 Satisfied with the working

environment

3.3 QUALITY RESEARCH

3.3.1 Objectives of qualitative research

3.3.2 Design of qualitative research

3.4 QUANLITIVE RESEARCH

3.4.1 Objectives of qualitative research

3.4.2 Quantitative study design

3.4.3 Information collection process

3.6 SOME METHODS OF DATA ANALYSIS

3.6.1 Descriptive statistics

3.6.2 Testing of Cronbach's Alpha scale

3.6.3 Factor exploratory analysis

3.6.4 Build regression equation

3.6.5 Test the research hypothesis

3.6.6 Check the correlation phenomenon of residuals

CHAPTER 4: RESEARCH RESULTS

4.1 QUALITATIVE RESEARCH RESULTS

All observed variables are agreed 6/6 from the discussion group

4.2.6 Test the relationship between gender and age

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

4.3.1 Cronbach's Alpha test for independent variables

4.3.1.1 Cronbach's Alpha test for the factor “Salary”

Table 4.11: Cronbach's Alpha Test of the Salary Factor

CorrectedItem-TotalCorrelation

Cronbach'sAlpha if ItemDeleted

S4 9.92 7.547 872 799

4.3.1.2 Cronbach's Alpha test for the factor "Bonus"

Table 4.12: Cronbach's Alpha Test of Bonus factor

Corrected TotalCorrelation

Item-Cronbach'sAlpha if ItemDeleted

Table 4.13: Cronbach's Alpha test of the factor Allowances,

subsidies and welfare

Corrected TotalCorrelation

Item-Cronbach'sAlpha if ItemDeleted

Cronbach'sAlpha if ItemDeleted

4.3.1.5 Cronbach's Alpha test for the factor "Compensation through work environment"

Table 4.15: Cronbach's Alpha test of the Compensation through

CorrectedItem-TotalCorrelation

Cronbach'sAlpha if ItemDeleted

Table 4.16: Test Cronbach's Alpha factor Employee satisfaction.

CorrectedItem-TotalCorrelation

Cronbach'sAlpha if ItemDeleted

4.4 EFA FACTOR DISCOVERY ANALYSIS

4.4.1 Factor analysis (EFA) for the independent variable

4.4.1.1 Testing the suitability of the EFA model Olkin)

(Kaiser-Meyer-4.4.1.2 Test of correlation between observed variables (Bartlett's test)

Table 4.17: KMO-EFA coefficient of employee satisfaction

component

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy .875

Bartlett's Test of Sphericity

4.4.1.4 Test of Factor loading

4.4.2 Factor Analysis (EFA) for the dependent variable

Table 4.20: KMO-EFA coefficient of employee satisfaction factor

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy .842

Table 4.21: Total variance extracted of employee satisfaction factor

Total Variance Explained

3 199 4.985 95.931

Extraction Method: Principal Component Analysis

4.4.2.4 Test of Factor loading

Table 4.22: Factor loading EFA of the factor Employee satisfaction

Component Matrix a

Component1

4.5 MULTI-VARIABLE LINEAR REGRESSION ANALYSIS 4.5.1 Check the correlation matrix between the factors

Table 4.23: Test results of correlation coefficient r

** Correlation is significant at the 0.01 level (2-tailed)

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

4.5.2.1 Model Interpretation Level (Adjusted R Square)

Table 4.24: R Square analysis of the fit of the regression equation

Model Summary b

Adjuste

d RSquare

Std

Error oftheEstimate

Watson

a Predictors: (Constant), CTE, B, S, W, P

b Dependent Variable: SA

From the table above, we can see that adjusted R2 = 0.951(test, Sig = 0.000 ≤ 0.05) 95.1% change in SA_employeesatisfaction is explained by 5 independent variables

4.5.2.2 Model fit: Analysis of variance ANOVA

Table 4.25: ANOVA analysis of the fit of the regression equation

b Predictors: (Constant), CTE, B, S, W, P

99% confidence (Sig ≤ 0.01) Show that the theoretical model

is consistent with reality The independent variables have a linearcorrelation with the dependent variable in the model

4.5.4 Testing of regression coefficients and multicollinearity (Multiple Collinearity)

Table 4.27: Regression coefficient of employee satisfaction factors

Coefficients a

4.5.5 Testing the hypotheses of the research model

4.5.5.1 Regression model with unnormalized regression coefficient

The regression model is of the form:

Table 4.29 Order of influence of factors on employee satisfaction

5 CTE 0.243 19.19% 4

4.5.6 Test the model's hypotheses

Conclusion: Through the tests, it can be confirmed that the

factors affecting employee satisfaction at Dong Thanh EngineeringCo., Ltd in order of importance are: S_Salary, B_Bonus, P_Training and advancement opportunities, CTE_Compensationthrough work environment, W_ Allowances, subsidies and welfare

CHAPTER 5: CONCLUSIONS AND SOLUTIONS

5.1 SUMMARY OF RESEARCH RESULTS

5.2 SOME PROPOSED SOLUTIONS TO IMPROVE

EMPLOYEE SATISFACTION ON SALARY, BONUS AND RECOMMENDATION POLICY AT DONG THANH

TECHNOLOGY CO., LTD

5.2.1 Salary solution

According to research, due to some objective factors from theaffiliated banks, many employees are not paid on time The companyneeds to overcome this phenomenon of late payment of wages bytalking with the bank or changing to another affiliated bank to meetthe on-time payment of wages and meet the convenience ofemployees when receiving wages

The company needs to improve the salary increase plan foremployees in a specific way, and widely disseminated to allemployees for employees to know and strive for

5.2.2 Bonus solution

The reward system must be administered carefully,meticulously, and without bias The company should provide thenorms (%) of work completion for each rating level 1,2,3 veryspecific and detailed to facilitate the clear and fair reward amongemployees

The company should diversify bonuses so that they are worthy

of their contributions and dedication such as loyalty bonus