INTRODUCTION
Rationale of the research
The Vietnam economy has skyrocketed over the last years, which makes Vietnam be one of the most considerable growth in percentage of GDP growth in
2019 (just behind Lao and Cambodia)
Figure 1.1 GDP Growth Percentage in Asia in 2019 (Unit: %)
Vietnam's economy has attracted significant foreign investment, with total inflows reaching 38 billion USD by the end of 2019 This figure includes both newly registered and additional capital, reflecting a 7.2% increase.
In comparison to the same period in 2018, Vietnam's economy has reached its highest recorded value in the last decade, with figures of 6, 7, 7, and 7 This growth presents both opportunities and challenges, particularly for the private sector, where competition intensifies daily.
Figure 1.2 FDI inflows into Vietnam in the period of 2009 – 2017
Source: Ministry of Planning and Investment, 2017
A survey conducted by JobStreet.com in the second quarter of 2016 revealed that over 13,000 employees in Vietnam, nearly 85%, expressed dissatisfaction with their current jobs Despite this, the Vietnam Economic Annual Report 2018 highlighted a significant increase in labor productivity, with the economy experiencing a growth rate of 7.08% In 2018, the estimated labor productivity reached 102.2 million VND per worker, equivalent to approximately US dollars.
In 2018, Vietnam's labor productivity reached \$4,521 per worker, reflecting a 6% increase from 2017 From 2011 to 2018, the average annual growth in labor productivity was 4.88% (General Statistics Bureau, 2018) Despite this progress, Vietnam's productivity remains the lowest in Asia Although the average productivity level in Vietnam has risen by 36%, it is still only 1/18th that of Singapore, 1/16th that of Malaysia, and 1/3rd of the regional average.
Between 2009 and 2017, data from the General Statistics Bureau highlighted the economic dynamics between Thailand and China, prompting Vietnamese enterprises, particularly in Ho Chi Minh City, to reevaluate the connection between job satisfaction and employee performance This reflection aims to identify effective strategies for maximizing these critical factors.
Figure 1.3 Vietnamese labour productivity in 2011–2017
(Unit: million VND per labour)
Figure 1.4 Vietnamese labour productivity compared with countries in area
To effectively address workforce challenges, businesses must identify the generational composition of their employees, particularly focusing on Millennials, who represent approximately 51% of the Vietnamese labor force (Socio-Economic Situation Report, General Statistics Bureau, 2016) This generation exhibits distinct characteristics in lifestyle, mindset, and business practices, which can lead to challenges such as low performance and high turnover rates For companies aiming to enhance employee satisfaction and retention, it is crucial to understand how job satisfaction influences Millennials' job performance This understanding aligns with global trends, as it is projected that Millennials will constitute 75% of the global workforce by 2025.
Despite the emergence of significant issues, research providing solutions or a comprehensive understanding has been limited, primarily gaining attention abroad In Vietnam, studies have focused on general satisfaction without clearly addressing job performance and its relationship, particularly concerning Millennials in white-collar positions.
Recognizing the significance of job satisfaction, the author undertook research titled “The Impact of Job Satisfaction on Employees’ Job Performance: A Study of White-Collar Millennials in Ho Chi Minh City.” This study aims to evaluate and illustrate the effects of job satisfaction on performance, providing valuable insights for businesses and corporations to enhance their personnel management strategies, ultimately maximizing both human capital and overall business performance.
Research background
Since the late 1950s, the impact of job satisfaction on employees’ job performance has been a topic being much interested and studied all over the world
To examine this issue, most authors like Brayfield & Crockett (1955), Herzberg et al
(1957) and Pushpakumari (2008) have used both primary and secondary data collection methods, through that building and analyzing models to draw conclusions Specifically, the following outstanding research papers are included
Firstly, this impact received inconsistent and weak results from the first periods, especially which happened before 21 st century In details, prior to raising the
In 1964, Herzberg et al highlighted the importance of motivation and hygiene factors in the workplace, noting that while there is a positive relationship between job satisfaction and performance, the correlations observed were generally low They concluded that more research is needed to understand the connection between employee satisfaction and job performance Additionally, studies by Iaffaldano and Muchinsky revealed that individuals find intrinsic value in their work, further emphasizing the need to explore these dynamics in greater depth.
Research by Brown and Peterson (1993) and earlier studies, including Brayfield and Crockett (1955), indicate that the connection between job performance and job satisfaction is often weak and inconsistent.
Research indicates a strong positive relationship between job satisfaction and work performance It is widely accepted that fulfilling employee needs leads to enhanced performance, as noted in Vroom's 1964 work, which emphasizes that job satisfaction is linked to productivity In the 21st century, this connection remains robust, supported by numerous studies A notable example is Pushpakumari's 2008 paper, "The Impact of Job Satisfaction on Job Performance: An Empirical Analysis," which confirms a significant impact of job satisfaction on the performance of employees in Sri Lanka's private sector organizations.
Recent global studies have increasingly focused on employee satisfaction, uncovering key factors that influence it However, there is a notable lack of research specifically addressing job satisfaction among Millennial white-collar employees Additionally, while previous international studies have demonstrated a link between job satisfaction and individual job performance, there is a gap in research concerning this relationship for Millennial white-collar workers.
Despite extensive global research, the relationship between job satisfaction and job performance has not been significantly explored in Vietnam While job satisfaction has been studied in isolation, there is a lack of comprehensive studies addressing the impact of job satisfaction on job performance in the Vietnamese context.
Numerous significant studies on job satisfaction in Vietnam reveal consistent findings from the North to the South Notable research includes "Measuring Job Satisfaction in Vietnam" conducted in Ho Chi Minh City by Tran Kim Dung in 2005, and "Evaluating Factors Influencing Job Satisfaction Among Office Employees in Hanoi – An Application of Structural Equation Modeling," which focuses on white-collar workers.
Research by Dao Trung Kien (2014) and Chau Van Toan (2009) highlights that while job satisfaction among Vietnamese employees, particularly in Ho Chi Minh City, is above average, it is not exceptionally high The most significant factors influencing job performance are often the nature of the job and the compensation and benefits provided.
Research on the relationship between Job Satisfaction and Job Performance remains limited, with notable studies highlighting this connection For instance, the paper "Would Better Earning, Work Environment, and Promotion Opportunities Increase Employee Performance? An Investigation in State and Other Sectors in Vietnam" demonstrates that salary, benefits, work environment, and advancement opportunities positively influence both job satisfaction and individual performance Additionally, studies such as "Job Stress, Involvement, Satisfaction and Performance of Employees in Garment 10 Corporation in Vietnam" and "Determinants of Job Satisfaction on its Impact on Job Performance in PVI HaNoi" reveal a significant positive relationship between job satisfaction and employees' individual performance.
In conclusion, the studies emphasize the importance for managers to enhance both job satisfaction and performance among employees in the workplace Notably, there is a lack of research specifically addressing the perspectives of Millennial employees, those born from 1981 onwards.
As Millennials, born in 1996, increasingly become the core workforce, it is crucial to examine the factors affecting their job satisfaction and performance, particularly among white-collar employees in the rapidly growing private sector Understanding the intricate relationship between job satisfaction and performance is essential to determine whether satisfied Millennials contribute significantly to organizational success.
Research on job satisfaction in Vietnam is plentiful, yet studies focusing on job performance and the relationship between the two are scarce Most existing research indicates positive findings, providing a solid foundation for further in-depth investigation.
Objectives of the research
This thesis aims to explore the impact of job enjoyment on effectiveness by integrating theoretical analysis, empirical research, and survey data.
This article examines the theoretical framework and research related to the impact of job satisfaction on the job performance of millennial white-collar employees in companies located in Ho Chi Minh City.
Secondly, to determine the impact level of job satisfaction on job performance of millennials white-collar workers contributing for enterprises in Ho Chi Minh City
Thirdly, by the way, to find out factors affecting job satisfaction of targeted subject in Ho Chi Minh City and discrepancy in influence level among distinctive demographic factors
To enhance job satisfaction among millennials in Ho Chi Minh City, businesses should implement effective personnel strategies that focus on improving employee performance and overall business outcomes.
Subject and scope of the research
The research focuses on the impact of job satisfaction on job performance of millennials white-collar employees working in companies in Ho Chi Minh City
The research targets millennials white-collar employees, especially the ones born from 1985-1997, currently working for companies in Ho Chi Minh City
The scope of space: companies in Ho Chi Minh City
The scope of time: The research has been undertaken from January to May
2020, in which primary data obtained through survey conducted from Feb 22nd to Mar 9th, 2020
Research methods
This thesis uses a combination of qualitative and quantitative methods
This research employs qualitative methods, utilizing focus groups and in-depth interviews to gather insights on the relationship between job satisfaction and employee performance By exploring individual perspectives and the factors influencing job enjoyment, the study aims to deepen the understanding of these dynamics The findings will help refine the measurement scales and enhance the overall research model.
To analyze relationships in a clear and logical manner, this study employs a quantitative method using a preliminary model, scales, and hypotheses derived from previous research Data is collected through a non-probability convenience sampling of respondents via an online structured questionnaire featuring closed questions with defined choices The research utilizes a Five-point Likert scale and employs SPSS and AMOS software to assess the value and significance of variables Statistical analysis techniques, including Cronbach’s Alpha, Exploratory Factor Analysis (EFA), Confirmatory Factor Analysis (CFA), Pearson’s correlation, Structural Equation Modeling (SEM), and ANOVA tests, are used to evaluate the reliability of the scale and proposed model, as well as to determine the impact of job satisfaction on the job performance of millennials in white-collar positions in Ho Chi Minh City, while also exploring potential factors influencing that satisfaction.
Research contribution
This paper explores a novel topic: the impact of job enjoyment on the effectiveness of millennials in white-collar positions, a subject previously unaddressed in both domestic and international studies Utilizing a self-composed model, the research provides a comprehensive empirical understanding of this relationship, specifically focusing on millennials in Ho Chi Minh City, Vietnam's economic hub This study aims to bridge the gap in human resources research between Vietnam and the global context.
The Millennials generation significantly influences modern business development and sustainability, as highlighted in the rationale section Their diverse personal attributes and mindset set them apart from previous generations, such as Gen X and Baby Boomers, as well as from Gen Z and blue-collar workers White-collar millennials exhibit unique job satisfaction and productivity approaches This paper serves as a valuable resource for managers and leaders, enabling them to better engage with millennial employees and make necessary adjustments to human resources policies, ultimately enhancing business performance in today's competitive landscape.
Research structure
The structure of the research is divided into five chapters as follows:
This chapter provides an overview of the research on "The impact of job satisfaction on employees’ job performance: A study of white-collar millennials in Ho Chi Minh City." It highlights significant issues regarding personnel in Vietnam and Ho Chi Minh City, noting the lack of extensive related research both globally and locally Additionally, the chapter outlines the research methods employed, which include both quantitative and qualitative approaches, as well as the subject, scope, contributions, and structure of the study.
LITERATURE REVIEW
Job satisfaction
Job satisfaction is a complicated concept with many different meanings depending on each person's conception in scientific research
Job satisfaction, as defined by Locke (1976), is a "pleasurable or positive emotional state" resulting from the perceived relationship between an individual's job expectations and what the job actually offers According to Mitchell and Lasan (1987), it reflects employees' perceptions of how well their jobs meet their important needs This concept is widely recognized as a crucial and frequently researched attitude within the field of organizational behavior.
Job satisfaction is defined as a combination of positive and negative dispositions shaped by experience, attitudes influenced by genetic factors, and the individual's perception of their workplace reality It also encompasses the interactions with colleagues and supervisors, as well as the alignment between job characteristics and personal job requirements.
Job satisfaction, as defined by Spector (1985), refers to the extent to which individuals enjoy or dislike their work This concept significantly influences employees' feelings towards various aspects of their jobs.
In their 2016 study, Theresa & Henry define job satisfaction as the outcome of employees' perceptions regarding how effectively their jobs meet their important needs This definition is particularly relevant to the characteristics of the Millennial generation and will be utilized consistently throughout the research.
To assess employee amusement in their roles, two distinct methods have been developed: Job Facets measurements and Global Scale assessments Job Facets measurements concentrate on evaluating satisfaction across specific aspects of a job, while the Global Scale provides a general overview of job satisfaction using a straightforward opinion scale.
The Job Descriptive Index (JDI), developed by Smith, Kendall, and Hulin in 1969, is a widely utilized tool in over 1,200 studies to evaluate employee satisfaction in the workplace It assesses job satisfaction through five key factors.
- Nature of work: Regarding the nature of the job, the fit of the job assigned with competency and personality of the employee
- Training and advancement opportunities: Regarding awareness of training, advancement and self-development opportunities in organizations
- Leadership: Relates to the relationship between superiors, subordinates, support, superior attitude, ability and leadership style
- Colleagues: Relates to relationships, behaviors, competencies of colleagues
- Income: Related to fairness in paying employees inside and outside company
A significant limitation of the current approach is the lack of a comprehensive scale to assess overall job satisfaction However, the Job Satisfaction Survey (JSS) developed by Paul E Spector in 1985, initially designed for the service industry, has since proven applicable across various sectors, including both profit and non-profit organizations The JSS evaluates employee attitudes and satisfaction through nine key factors: (1) Salary, (2) Opportunity for promotion, (3) Supervision, (4) Contingent Rewards, and (5) Coworkers.
(6) Nature of work, (7) Operating conditions, (8) Communication, (9) Benefits
Thirdly, the Minnesota Satisfaction Questionnaire (MSQ) of Weiss, Dawis,
England and Lofquist proposed in 1967 is quite popular because compared to JDI and JSS, this is very specific and uncomplicated to comprehend, simple to apply
(Spector, 1997) MSQ uses one of the following two tables: a long table of 100 entries
The 1977 and 1967 versions of the job satisfaction measurement utilize a 5-point Likert scale, ranging from (1) very dissatisfied to (5) very satisfied, to assess various job aspects A shorter 20-item measurement table evaluates overall satisfaction, with scores aggregated to determine total job satisfaction levels A lower total score indicates reduced employee satisfaction However, a significant drawback of the MSQ is its lengthy questionnaire, and while the shorter 20-question form is more concise, it may lead to substantial deviations and fail to capture the full sentiments of employees.
The Adjust Job Descriptive Index, highlighted in Tran Kim Dung's 2005 study "Nhu cầu, sự thỏa mãn của nhân viên và mức độ gắn kết đối với tổ chức," is grounded in Maslow's demand pyramid model.
This article explores an enhanced model of job satisfaction in Vietnam, incorporating two additional components—"Benefits" and "Working Conditions"—to the original five elements of the Job Descriptive Index (JDI) The comprehensive model identifies seven key factors influencing employee job satisfaction: (1) Salary, (2) Working Conditions, (3) Nature of Work, (4) Benefits, (5) Colleagues, (6) Training and Advancement Opportunities, and (7) Supervisor.
2.1.2.2 Global Scale Measurement: Single Global Rating
A single global rating measures overall job satisfaction by asking respondents to evaluate their feelings on a scale from "highly satisfied" to "highly dissatisfied." This straightforward approach allows individuals to express their level of contentment with their job in response to a single, focused question.
Amusement in the workplace is a globally recognized topic, highlighted by numerous studies Key factors influencing job satisfaction include salary, coworkers, nature of work, training and advancement opportunities, supervisor relationships, working conditions, and contingent rewards.
Employee’s job performance
2.2.1 Definition of employee’s job performance
Recent studies on employee job performance have gained attention only since the early 21st century, contrasting with the extensive research on job satisfaction that has been conducted over a long period.
Employee job performance is defined as the behaviors individuals engage in that align with and contribute to an organization's goals (Viswesvaran & Ones, 2000) Ahmad and Khurram (2011) further emphasize that employee performance reflects personnel beliefs about their contributions to organizational success Nmadu (2013) describes employee performance as the degree of task accomplishment related to an employee's job This aligns with the Business Dictionary (2010), which defines employee performance as the completion of tasks measured against established standards of accuracy, completeness, cost, and speed.
From the author's perspective, the job performance of employees, particularly millennials, is not solely based on their achievements but also on the behaviors they exhibit in their daily routines that contribute to overall business performance This understanding is identified as the most relevant concept of job performance throughout the study.
2.2.2 Measurements of employee’s job performance
A review and meta-analysis by Mabe and West (1982) highlights the validity of self-evaluation of ability, suggesting that while both self-reports and supervisory ratings can be subject to bias and distortion, self-reports are often considered a more accurate reflection of performance.
In the study "The Motivational Bases of Job Satisfaction and Job Performance" by Wofford (1971), supervisors evaluated their subordinates' performance using a rank order form that emphasized output quantity, output quality, and work effort Employees who ranked in the upper half of their work group for at least two of these criteria were classified as high performers.
In 2008, M D Pushpakumari conducted an empirical analysis titled "The Impact of Job Satisfaction on Job Performance," which evaluated employee performance based on the effort put into their jobs The study utilized a questionnaire featuring seventeen close-ended questions designed to simplify the assessment of relevant variables Participants were asked to indicate their level of job effort on a five-point Likert scale, ranging from "great extent" to "very little."
In a 2013 study published in the International Journal of Productivity and Performance Management, researchers developed an individual work performance questionnaire identifying four key dimensions of performance Task performance refers to the proficiency with which individuals execute essential job tasks, encompassing work quality, quantity, and job knowledge Contextual performance includes behaviors that enhance the organizational, social, and psychological environment necessary for effective functioning Adaptive performance measures how well individuals adjust to changes in work systems or roles Lastly, counterproductive work behaviors are those that can hinder, harm, or undermine organizational development and productivity The study included 47 questions to assess these dimensions.
The study identified 47 small variables across four dimensions that effectively measure individual work performance, particularly among white-collar employees This provides a solid foundation for developing a performance measurement scale for the research.
2.2.3 The impact of job satisfaction on job performance
Research on this topic is limited, yielding two key findings Firstly, prior to the 21st century, studies abroad indicated an insignificant relationship, particularly in relation to the "Motivation-Hygiene Factor Theory" (Herzberg et al., 1964) Despite a generally positive outlook on this relationship, the correlations observed were low, suggesting a need for further investigation into the link between job satisfaction and employee performance Conversely, more recent studies in Vietnam and internationally have begun to explore "The Impact of Job Satisfaction."
Satisfaction on Job Performance: An Empirical Analysis” (Pushpakumari, 2008),
“Job Stress, Involvement, Satisfaction and Performance of Employees in
Garment 10 Corporation in Vietnam” (Viet Duc Than & Cuong Hung Pham &
Long Pham, 2016) and “Determinants of job satisfaction on its impact on Job
Performance in PVI HaNoi” (Phan Ngoc Tram, 2017) with unique conclusion of significantly positive relationship
Job performance is essential for evaluating personnel quality, as it encompasses not only the outputs specified in job descriptions but also important aspects such as effort, soft skills like flexibility and communication, and a positive attitude These elements contribute to a comprehensive assessment of an employee's performance Additionally, job performance is closely linked to job satisfaction, highlighting its significance in the workplace.
The Millenials
Millennials are typically defined as those who came of age at the turn of the 21st century, yet various interpretations of this generation exist Neil Howe and William Strauss, in their book, explore these differing perspectives on Millennials.
In their 1991 work "Generations: The History of America's Future, 1584 to 2069," authors Howe and Strauss are credited with coining the term "Millennials." They define the Millennials generation as encompassing individuals born between 1982 and 2004.
The age range defining Millennials has varied across different sources Elwood's 2008 book "The Lucky Few" identifies this generation as those born from 1983 to 2001 In contrast, a 2013 report by PricewaterhouseCoopers (PwC) suggests a birth range of 1980 to 1995 Similarly, Synchrony Financial's 2014 findings indicate that Millennials were born between 1976 and 1992 Most recently, the Pew Research Center in 2018 officially defined the Millennial generation as individuals born from 1981 to 1996.
The author defines the Millennial generation as individuals born between 1981 and 1996, based on reliable data from the institute and its relevance to the current date This age group encompasses those who were 24 to 39 years old in 2020, providing a clear framework for further analysis.
In addition, this generation is also known by different names like Generation
Y, Global Generation, Generation Next, and even called Net Generation (Internet Generation), Screenagers (Generations along with computer screens), or Facebookers for being first generation to grow and intimately connected with digital devices
2.3.2 Characteristics of Millennials in general
Millennials are characterized by their strong interest in technology, having grown up during a period of rapid information technology advancement both globally and in Vietnam This generation is highly tech-savvy and adept at multitasking, utilizing the internet, laptops, smartphones, and tablets to navigate a world with limitless and instantaneous access to information.
Social networks have become an integral part of our lives, enabling individuals to acquire valuable knowledge and communicate effectively with others across the globe This connectivity fosters a positive, "can-do" mindset when facing challenges and encourages a desire to build and expand relationships.
Millennials are characterized by high self-esteem and assertiveness, with a strong desire for rapid career advancement compared to previous generations This generation is often seen as irregular and impulsive, exhibiting a lack of long-term commitment Additionally, Millennials are the most diverse generation to date, showcasing a wide range of differences in work, life, hobbies, and relationships across various races and ethnic groups globally (Jessica Brack & Kip Kelly, 2012).
Firstly, about desires of businesses they contribute, Millenials value concept
While money is important, it is not the sole factor in achieving fulfillment Self-development and maintaining a work-life balance are crucial, as individuals seek both career advancement and quality time with their surroundings There is a strong desire for leadership and rapid progression in one's career, leading to expectations of immediate dedication and swift promotions Many are unwilling to invest years for recognition and prefer a quicker path to career growth.
Millennials prioritize immediate feedback and self-development, valuing training opportunities over bonuses Research shows that employees favor training and development options more than three times compared to monetary bonuses, as these opportunities foster personal growth and yield long-term benefits (PwC, 2008) Consequently, simply increasing wages is less effective in satisfying Millennials compared to providing meaningful development opportunities.
Millennials value the significance of their tasks and expect their work to align with their skills Unlike previous generations, they do not view superiors as the sole experts, as they have access to a wealth of information through technology Instead, they perceive their superiors as coaches or mentors, which is crucial for their professional development.
Millennials view salaries as a reflection of their position, role, and competencies, using them as tools to achieve their aspirations and personal development Unlike previous generations, they seek higher wages not merely for survival but to demonstrate their skills and support a diverse life outside of work Thus, while salary remains crucial for Millennials, its purpose has evolved compared to earlier generations (Deloitte Millennial Survey, 2017).
Millennials are a tech-savvy generation shaped by their experiences in a rapidly advancing technological landscape Key characteristics of this group include individualism, optimism, a can-do attitude, achievement orientation, and a commitment to continuous learning Understanding this generation, which will make up a significant portion of the workforce in the next decade, is essential for future success.
Chapter 2 establishes two main components: the author synthesizes definitions, age limits, and characteristics of Millennials alongside relevant theories and research, while also compiling previous studies on employee satisfaction and workplace performance In Chapter 3, the author elucidates the impact of various factors on satisfaction and examines how satisfaction influences job performance.
METHODOLOGY
Research model design
This research aims to assess the factors influencing job satisfaction and its impact on the performance of millennial white-collar workers in Ho Chi Minh City It is conducted in two phases: an initial qualitative phase involving focus groups and in-depth interviews for questionnaire design, followed by a quantitative phase for official research The research process is meticulously structured, incorporating survey design along with correlational and causal comparative designs, as illustrated in the accompanying visual representation.
In February 2020, during the preliminary research phase, the author developed a research model and designed a scale based on theoretical foundations and related studies A survey was conducted with 80 office workers aged 24 to 39 in Ho Chi Minh City to refine the scale and finalize the questionnaire, which is included in Appendix 09.
During the official research phase, the authors conducted data collection in the form of online survey Next, assessing the reliability of the scale through Cronbach's
Proposed model, hypotheses, scale building from previous researches
Official model, scale, hypotheses Cronbach’s alpha analysis
Exploratory factor analysis (EFA) Confirmatory factor analysis (CFA) Pearson correlation analysis
SEM model analysis Demographics factors influence analysis
Source: The author’s own processing
The study employs the Alpha reliability coefficient and exploratory factor analysis (EFA) to uncover underlying factors It utilizes Pearson correlation for assessing relationships and confirmatory factor analysis (CFA) to validate the identified factors Ultimately, the research hypotheses and overall model are evaluated using Pearson analysis and structural equation modeling (SEM) techniques.
Research model selection and Hypothesis Development
The focus group discussion and in-depth interview methods are essential qualitative tools that enable researchers to refine and enhance the scales for their proposed research models prior to formal studies (Chirchull, 1979; Stewart and Shamdasani, 1990) This research utilizes Tran Kim Dung's Adjust Job Descriptive Index (2005) and Paul E Spector's Job Satisfaction Survey (1985) to examine the job satisfaction of millennials employed as white-collar workers in private-sector companies in Ho Chi Minh City The study involved group discussions and in-depth interviews with office workers aged 25 to 30 who have been in their roles for 3 to 6 years or more.
This paper outlines three primary objectives based on empirical findings from focus group discussions Firstly, it aims to verify the factors influencing job satisfaction and their impact on the job performance of Millennials in white-collar positions, drawing insights from previous research models This process will uncover additional factors not previously included, providing a more comprehensive understanding Subsequently, the author will refine and enhance the scale for observed variables and develop a questionnaire to survey Millennials working in offices in Ho Chi Minh City.
Chapter 2 highlights key components that positively influence job satisfaction, including salary, benefits, nature of work, operating conditions, colleagues, training and promotion opportunities, and supervision Research conducted both internationally and in Vietnam (Spector, 1985 & Tran Kim Dung, 2005) demonstrates a consistent agreement on these factors' impact on job enjoyment, regardless of geographic differences.
Millennials, having grown up in a flexible communication environment, utilize various means to connect, seamlessly transitioning from face-to-face interactions to online platforms such as email and social media Consequently, the aspect of employee satisfaction with communication, as noted by Spector (1985), is not emphasized here Additionally, since pleasant communication is closely tied to operating conditions and colleague-supervisor relationships, it is intentionally excluded to prevent redundancy.
So, a scale to measure job satisfaction of millennials' white-collar employees in Ho Chi Minh is constructed with these 7 subsequent elements:
In addition, based on the relationship between job satisfaction and job performance level of employees, the author proposes a model as shown in Figure 3.2
Source: The author’s own processing
Compensation is a crucial aspect for every individual, as it should be fair and commensurate with the employee's contributions Salaries serve as a reflection of how much companies value their workforce (Spector, 1994).
Spector's model categorizes employee benefits into cash and non-cash forms, such as insurance and pensions It emphasizes the importance of equitable benefits within the same organization, ensuring they are competitive with those offered by other companies Enhancing employee welfare not only attracts talent but also boosts overall productivity.
2000) In fact, studies of Tran Kim Dung (2005) and Nguyen Thi Mai Trang (2013) also came to the conclusion that job satisfaction of employees is affected positively by benefits
H1: The pay and benefits have positive impact on job satisfaction of millennials white-collar employees in Ho Chi Minh City
Effective operating conditions and procedures encompass physical environments, company policies, administrative processes, and work schedules Companies that prioritize excellent working conditions enhance employee satisfaction and safety, fostering a productive workforce To attract and retain Millennials, organizations must not only provide a positive work environment and reasonable hours but also streamline procedures, as this generation values flexibility and simplicity in their work experience (PwC, 2011).
H2: Operating conditions and procedures has positive impact on job satisfaction of millennials white-collar employees in Ho Chi Minh City
Employee satisfaction with the nature of work refers to how content individuals are with their assigned tasks and job types (Spector, 1997) This satisfaction is influenced by the alignment of the job with the employees' skills and qualifications When employees find their roles suitable, they are more likely to enjoy their work, as it allows them to utilize their competencies effectively Thus, the nature of work is a crucial factor in creating a positive job experience (Castillo, 2004).
H3: Nature of work has positive impact on job satisfaction of millennials white-collar employees in Ho Chi Minh City
Training and advancement opportunities enable employees to enhance their skills and expertise, leading to improved job performance and potential promotions According to Maslow's hierarchy of needs, self-actualization represents the highest level of fulfillment, emphasizing the importance of personal growth in the workplace.
A survey by Vietnamworks in 2016 revealed that 30% of Millennials (Generation Y) employees prioritize training and development opportunities Consequently, enhancing training and promotion prospects for employees can significantly boost their career satisfaction, as noted by Spector (1997).
H4: Training and promotion opportunities has positive impact on job satisfaction of millennials white-collar employees in Ho Chi Minh City
A 2016 Vietnamworks survey highlights that trust in leadership is a crucial factor for Generation Y employees In-depth interviews reveal that the Supervisor element in Spector's 1985 research is limited, as it only addresses direct job supervisors In contrast, the Leadership factor encompasses both top managers and direct superiors, whose decisions significantly impact employees' work Effective leaders enhance employee satisfaction through communication, care, guidance, fair treatment, and recognition of contributions.
Leaders play a crucial role in enhancing employee performance by providing feedback and sharing knowledge, as highlighted in Situational Leadership Theory by Paul Hersey and Ken Blanchard They serve as inspirational figures, setting an example for employees to emulate Consequently, a leader's style significantly influences employee satisfaction and engagement in their work.
H5: Leadership has positive impact on job satisfaction of millennials white- collar employees in Ho Chi Minh City
Recognizing and rewarding employees for their achievements aligns with Skinner's Reinforcement Theory, which suggests that individuals are likely to repeat behaviors that are positively reinforced Proper recognition demonstrates a company's commitment to its employees and fosters a fair work environment Both intrinsic rewards, such as autonomy and respect, and extrinsic rewards, like incentives and commissions, significantly enhance employee satisfaction and performance (Reio & Callahon, 2004).
H6: Contingent rewards and recognition has positive impact on the job satisfaction of millennials white-collar employees in Ho Chi Minh City
Colleagues are individuals who collaborate within the same organization, and a harmonious working atmosphere, characterized by mutual affection and support, significantly enhances job satisfaction Research by Smith et al (1969) and Weiss et al (1967) highlights that positive relationships with colleagues are essential factors contributing to employee satisfaction.
H5: Colleagues has positive impact on job satisfaction of millennials white- collar employees in Ho Chi Minh City
Numerous studies, including those by Vroom (1964) and Pushpakumari (2008), have confirmed a strong positive relationship between job satisfaction and work performance While some research indicates inconsistent or insignificant results, the majority of findings, such as those by Brayfield and Crockett (1955), highlight the significant impact of job satisfaction on employee performance.
H8: Job satisfaction has positive impact on performance of millennials white- collar employees in Ho Chi Minh City
Questionnaire design
Source: The author’s own processing Specially, in first step, the author makes choice of observed variables for Job
Job satisfaction and its influencing factors are assessed through variables developed from Tran Kim Dung's research (2005) and the Job Satisfaction Survey by Spector (1985) Following extensive trial surveys and in-depth interviews, these variables were refined to align with the target demographic of white-collar workers in Ho Chi Minh City, specifically Millennials aged 24 to 39 years (Appendix 1).
Obbserved variables for Job Satisfaction & impacting factors choice
Observed variables for Job Performance choice
The observed variables for Job Performance were selected based on the Individual Work Performance (IWP) scale, as IWP reflects employee behaviors relevant to enterprise objectives rather than merely the outcomes of those actions (Koopsman, 2013) This approach aligns with the definitions of Job Performance, incorporating factors such as Task Performance, Contextual Performance, and Adapting Performance.
Task Performance refers to the proficiency with which employees execute the essential technical tasks of their roles, encompassing work quantity, quality, job skills, and knowledge (Campbell, 1990; Rotundo and Sackett, 2002) It is closely linked to the responsibilities and duties assigned to them (Williams and Anderson, 1991) In contrast, Contextual Performance involves behaviors that enhance the organizational, social, and psychological environment necessary for effective technical performance (Borman and Motowidlo, 1993).
Effort, cooperation, and effective communication are essential for enhancing peer and team performance (Rotundo and Sackett, 2002; Campbell, 1990) Additionally, Adaptive Performance, a concept that emerged in the 2000s, is crucial for assessing job performance This dimension emphasizes an individual's ability to adapt to changes and navigate uncertain environments (Griffin et al., 2007).
Some research identifies Counterproductive Work Behavior as a significant dimension; however, its definition as behaviors that harm organizational growth contrasts sharply with Contextual Performance, leading to its exclusion to prevent replication Consequently, seven elements from three distinct dimensions—Task, Contextual, and Adaptive Performance—were selected for this study to assess job effectiveness among white-collar workers (Koopsman, 2013) (Appendix 1).
The third step involves utilizing a Likert scale, which consists of a series of questions rated on a 5 or 7-point scale This scale ranges from one extreme to another, incorporating a neutral or moderate option.
A Likert scale with a neutral value of "3" is recommended by researchers to minimize frustration among patient respondents, thereby enhancing both the response rate and the quality of responses.
To assess job satisfaction among Millennials in Ho Chi Minh City, a five-point Likert scale from "Strongly disagree" to "Strongly agree" is an effective tool This scale evaluates various workplace aspects, including relationships with colleagues, job nature, training and promotion opportunities, operating conditions and procedures, leadership quality, recognition and rewards, as well as pay and benefits (Spector, 1985).
When assessing job performance, participants should rate behaviors based on their frequency rather than agreement Frequency ratings are preferred over agreement ratings used in job satisfaction scales, as the latter often lead individuals to reflect on their attitudes rather than their actual behaviors Research indicates that frequency ratings require individuals to recall how often they have engaged in specific behaviors, making them more valid and accurate measures of job performance.
In the fourth step, it is essential to consider the method of filling out the questionnaire, with self-reporting being the preferred approach in this study.
Self-reporting is a widely used and effective method for completing questionnaires, allowing for efficient analysis of results This approach ensures privacy and anonymity, encouraging respondents to express their opinions candidly without fear of disclosing sensitive information Despite its drawbacks, such as potential bias, this method can mitigate issues by limiting responses to experiences from the past three months, thereby enhancing the accuracy of the answers.
To gain a deeper understanding of the relationship between job satisfaction and job performance, the next step in designing the questionnaire involves creating a preliminary scale This scale will include various specific observed variables, enabling respondents to provide relevant opinions based on their current situations The Job Satisfaction scale incorporates seven elements influenced by the Job Satisfaction Survey Questionnaire (Spector, 1994), a reliable source reflecting global opinions Additionally, the Job Performance scale comprises seven statements that comprehensively describe job performance, with variables PER1, PER2, and PER3 focusing on Task Performance, PER4 and PER5 addressing Contextual Performance, and the final two related to Adaptive Performance Overall, the preliminary questionnaire is structured to effectively capture these dimensions.
The survey consists of 45 questions, including 39 quantitative inquiries and 6 personal informational questions for the respondents Among the 39 quantitative questions, 7 key elements influencing job satisfaction are identified: Salary and Benefits (5 questions), Contingent Rewards and Recognition (3 questions), Operating and Working Conditions (5 questions), Nature of Work (4 questions), Colleagues (3 questions), Training and Promotion Opportunities (4 questions), and Leadership Style (5 questions) Additionally, the survey includes 3 questions related to overall satisfaction and 7 questions assessing job performance.
Finally, after designing questionnaire, a trial survey is conducted with over
A survey was conducted with 60 office workers aged 24-39, who were either working in offices or dining at convenience stores (Bsmart, Circle K, GS25) in Districts 1, 10, Binh Thanh, and Phu Nhuan Feedback from respondents highlighted the need for clearer wording, improved question phrasing, and a more logical arrangement of questions in the initial questionnaire, which was written in English and presented in a random order This disorganization made it challenging for participants to accurately express their feelings However, no suggestions were made regarding the removal or addition of questions Consequently, the author addressed these issues to finalize the official questionnaire (Appendix 09).
Research Hypotheses Expected outcomes Hypotheses basis
Question- naire Items H1: The pay - benefits has positive impact on job satisfaction of millennials white- collar employees in Ho Chi
Smith (1969), Spector (1985), Tran Kim Dung (2005), Dao Trung Kien
PB1, PB2, PB3, PB4, PB5
Question 1 to 5 and Question 30 to 32
H2: Operating conditions and procedures have positive impact on the job satisfaction of millennials white-collar employees in Ho Chi Minh City
Spector (1985), Tran Kim Dung (2005), Phong D Nguyen &
OPE1, OPE2, OPE3, OPE4, OPE5
Question 9 to 13 and Question 30 to 32
H3: Nature of work has positive impact on job satisfaction of millennials white-collar employees in Ho Chi Minh City
H4: Training, promotion chances have positive impact on job satisfaction millennials white-collar employees in Ho
Smith (1969), Spector (1985), Tran Kim Dung (2005)
Question 21 to 24 and Question 30 to 32
H5: Leadership has positive impact on job satisfaction of millennials white-collar employees in Ho Chi Minh City
Smith (1969), Tran Kim Dung (2005), Dao Trung Kien
Question 25 to 29 and Question 30 to 32
H6: Contingent rewards and recognition positively impacts job satisfaction of millennials white-collar employees in Ho
Question 6 to 8 and Question 30 to 32
H7: Colleague has positive impact on job satisfaction of millennials white-collar employees in Ho Chi Minh City
Question 18 to 20 and Question 30 to 32
H8: Job satisfaction has positive impact on performance of millennials white-collar employees in Ho Chi Minh City
Vroom (1964), Pushpakumari (2008), Phan Ngoc Tram
SAT1,SAT2, SAT3 PER1,PER2, PER3,PER4, PER5,PER6, PER7
Question 30 to 32 and Question 30 to 39
Source: The author’s own processing
Data collection and analysis
The author conducted an online survey to collect data through various electronic media and social networking sites, including Zalo, Telegram, Facebook, and Gmail The study employed several data analysis methods, such as Cronbach's alpha measurement, exploratory factor analysis (EFA), confirmatory factor analysis (CFA), linear structure model analysis (SEM), and ANOVA tests, all of which are based on large sample distribution theory According to Raykov and Widaman (1995), a relatively large sample size is necessary, with an optimal size being five times the number of observed variables, as noted by Hair et al (2006) For the 39 observed variables in this study, a minimum sample size of 195 is required Additionally, to conduct linear analysis, the sample size must adhere to the formula \( n \geq 8m + 50 \), where \( n \) represents the sample size and \( m \) denotes the number of independent variables, as stated by Tabachnick and Fidell (1996) Consequently, with seven independent variables, the study necessitates a minimum sample size of at least 106.
The author established a standard sample size of 220, surpassing the highest compulsory minimum value of 195, by integrating various data analysis methods to determine the necessary minimum values for sample numbers.
A survey was conducted targeting Millennials' office workers in Ho Chi Minh City, focusing on areas such as Districts 1, 10, Binh Thanh, and Phu Nhuan The survey was distributed directly to buildings, companies, and familiar locations like convenience stores and cafes To ensure clarity, the author provided explanations for any questions that respondents found difficult to understand Ultimately, 361 survey samples were collected, comprising 68 responses from paper questionnaires and 293 from online forms via Google Forms and social media platforms like Messenger, Zalo, and Telegram The aim was to gather insights on job satisfaction and performance among Millennials aged 24-39.
With non-probability convenience sampling method, after omitting some invalid and inappropriate answers which are responded by the ones under 24 or over
39 years old, or the workers who not belongs to white-collar type, the author screened
323 satisfactory samples to officially put into implementation of study
Measuring scale reliability through item-total correlation and Cronbach's Alpha test is essential for assessing the scale's reliability and the correlation among observed variables This process helps eliminate heterogeneous variables and prevent false factors (Nguyen Dinh Tho & Nguyen Thi Mai Trang, 2009) Key criteria are applied during the analysis of the Cronbach’s Alpha coefficient.
To ensure the reliability and internal consistency of a scale, the corrected item-total correlation must exceed 0.3, indicating a strong relationship among the variables This correlation helps identify and eliminate items that do not significantly contribute to the overall construct (Hoang Trong and Chu Nguyen Mong Ngoc, 2008) Consequently, any observed variables with a total correlation coefficient below 0.3 should be excluded, as they offer minimal value in describing the measured concept (Nunally, 1978).
A higher Cronbach’s Alpha coefficient indicates greater intrinsic consistency reliability, with values above 0.8 considered excellent, 0.7 to 0.8 acceptable, and 0.6 or higher usable for new or unfamiliar research concepts (Nunally, 1978; Peterson, 1994; Slater, 1995) In this study, the author selected a Cronbach’s Alpha coefficient greater than 0.7.
Exploratory Factor Analysis (EFA) is an interdependence technique that focuses on the correlations among variables rather than distinguishing between dependent and independent variables It aims to condense a large set of interrelated observation variables into a single aggregation factor, enhancing interpretability while preserving the majority of the original information To ensure the significance of the EFA results, certain key values must be taken into account during the analysis.
The KMO (Kaiser – Meyer – Olkin) measure of sampling adequacy, as noted by Hair et al (2010), indicates the appropriateness of data for exploration, with a coefficient range of [0.5; 1] confirming sample usability; values below 0.5 render factor analysis findings unusable (Garson, 2003) Additionally, Bartlett's test of sphericity assesses the relevance of variables for structure detection; a statistically significant result, with a P-value of 0.05 or lower, indicates that the observed variables are correlated (Hoang Trong and Chu Nguyen Mong Ngoc, 2008).
EFA Analysis takes into account the Eigenvalue, which indicates the variance explained by each factor According to Kaiser’s Eigenvalue-greater-than-one rule, only factors with an Eigenvalue greater than 1 are retained for interpretation, and the total variance explained should exceed 50% (Kaiser, 1960; Hair et al., 1998).
When conducting exploratory factor analysis (EFA), it is crucial to consider the factor loading, which indicates the association of each measurement variable with specific factors According to Hair et al (1998), a factor loading greater than 0.3 is the minimum threshold, while values above 0.4 are deemed important, and those at or above 0.5 are considered practically significant In this research, a factor loading value of 0.5 was selected for optimal findings The study employed the principal component factor extraction method with Varimax rotation, which are commonly used techniques in EFA to assess the convergence of items into distinct groups of influencing factors.
Pearson’s correlation coefficient test is essential for assessing the strength of the linear relationship between dependent and independent variables, as well as among independent variables This analysis helps confirm the relationships to be studied and identifies potential multicollinearity issues Prior to conducting the Pearson analysis, it is important to average the observed variables within the same factor and categorize them into groups: Pay-Benefits (PB), Operating Conditions-Procedures (OPE), Work Nature (NOW), Training and Promotion Opportunities (OPP), Leadership Style (L), and Satisfaction (SAT) - Job Performance (PER) The study focuses on two main analyses: the linear relationship between the five independent variables (PB, OPE, NOW, OPP, L) and the dependent variable, Job Satisfaction (SAT), while also examining the correlations among the independent variables to detect multicollinearity Additionally, the study explores the linear relationship between Job Satisfaction (SAT) and Job Performance (PER).
When analyzing the correlation matrix, it is essential to ensure that both independent and dependent variables exhibit a linear correlation, with a significance value (Sig) of less than 0.05 Additionally, if two independent variables show a strong correlation (r > 0.4), it is crucial to address potential multicollinearity issues According to Professor Timothy Shortell, a Pearson coefficient above 0.4 indicates a relatively strong correlation, while values between 0.2 and 0.4 are considered average, and those below 0.2 are deemed insignificant.
Confirmatory Factor Analysis (CFA) is a statistical technique used to assess the alignment of research data with a theoretical model, specifically within the framework of Structural Equation Modeling (SEM) It enables researchers to evaluate how effectively measured variables represent underlying constructs While Exploratory Factor Analysis (EFA) focuses on identifying constituent factors from the data, CFA is designed to validate existing models based on prior studies or predefined frameworks When performing CFA, it is essential to conduct a thorough analysis to ensure accurate results.
- Convergence of the model by considering standardized regression coefficient
- Relevance of the model to market data
- Composite reliability ρc (C.R) of each concept
- The Average variance extracted (ρvc) of each concept
To assess the convergence of the model, the weights in the "Standardized regression coefficient" should exceed 0.5 Additionally, evaluating the model's suitability with market data requires a review of the indicators based on the criteria outlined in Table 3.2.
Chi-square CMIN Has p-value not greater than 0,05
Chi-square/df CMIN/df 1,0