INTRODUCTION
Background of the study
Human resources play an important role in establishment and development of organizations
Research by Fletcher and Williams (1996), Al-Aameri (2000), and Fang (2001) shows that job satisfaction leads to greater employee loyalty and contributions to organizations Satisfied employees play a crucial role in enhancing retention, reducing turnover rates, and minimizing recruitment and training costs Recognizing human resources as a vital asset, numerous studies on job satisfaction have emerged globally, with two foundational studies being Locke's work in 1976 and the research by Herzberg, Mausner, and others.
Job satisfaction, as defined by Locke (1976), is a positive emotional state derived from evaluating one's job experiences He identifies nine key dimensions that influence job satisfaction: the nature of work, pay, promotion opportunities, recognition, benefits, working conditions, relationships with co-workers, and the overall company and management Locke's research indicates that there are strong positive correlations between these dimensions and overall job satisfaction.
Another famous study of job satisfaction is Herzberg’s motivator – hygiene theory in 1959
Herzberg et al (1959) identify two key categories influencing job satisfaction: Motivators and Hygienes Motivators include factors such as the nature of the work, achievements, promotion, recognition, and responsibility, which contribute to employee satisfaction In contrast, Hygienes encompass elements like supervision, interpersonal relations, working conditions, company policies, and salary, which are often linked to job dissatisfaction.
The two-factor theory of job satisfaction parallels the theory of man’s needs based on
Maslow's theory posits that Hygiene factors address an individual's physical needs, while Motivators cater to their psychological needs.
Research on job satisfaction across various countries consistently demonstrates the relationships between key factors and overall satisfaction Lim (2008) found that for library information technology workers in the United States, factors such as salary, a sense of belonging, job autonomy, and promotion opportunities significantly influence job satisfaction Similarly, Sesil (1999) concluded that in High Technology Establishments in the United Kingdom, employee involvement and group incentives have a strong positive impact on job satisfaction.
Research indicates that employees in Canada and India who demonstrate job satisfaction and positive work behaviors are more inclined to seek empowerment, irrespective of their cultural backgrounds (Gill, Sharma, Mathur, & Bhutani, 2012).
In addition to research conducted in America and Europe, significant studies on job satisfaction have also emerged from Asia, Africa, and the Middle East Notably, Koh, Ma, and Kuek (2012) explored the connections between job satisfaction, job performance, and job stress within higher education institutions.
Malaysia find that job stress has negative impact on job satisfaction and then, job satisfaction affects job performance in a positive relationship According to Ashok and Lekh
(2013), pay, promotion, work itself, supervision, and co-workers can contribute to increase the job satisfaction of managers in pharmaceutical industry in Himachal Pradesh of India
Sadegh and Azadeh (2012) conducted an empirical study in the airline industry in Iran, revealing that factors such as supervision, relationships with co-workers, the nature of work, opportunities for promotion, and current pay significantly influence job satisfaction.
In Nigeria, research by Oyebamiji, Kareem, and Ayeni (2013) indicates that job satisfaction factors such as pay, supervision, promotion, work itself, and working conditions significantly influence job performance, accounting for 33% of its variance The study recommends that managers of small and medium enterprises utilize these dimensions of job satisfaction as strategic tools to improve employee retention, thereby reducing turnover and enhancing overall job performance.
Studies about job satisfaction are not only popular in many countries but also diversify in different fields and research objectives Job satisfaction are researched in technology (Sesil,
1999; Lim, 2008), banking industry (Islam, Mohajan & Datta, 2012; Mansor, Noor &
Hassan, 2012; Muhammad and Kamal, 2009), governments (Krzysztof & Bartomicj, 2013;
Turkyilmaz, Akman, Ozkan, & Pastuszak 2011), hotel industry (Hussain, 2012; Abdullah,
Musa, Zahari, Rahman, & Khalid 2011), textile industry (Ami, Shiji, & Shamira, 2012), health care (Harmon et al., 2003), pharmaceutical industry (Ashok & Lekh, 2013), and many other industries
The objectives of studies on job satisfaction differ based on the authors' intentions Research has explored various determinants of job satisfaction, such as Kumar and Singh (2011), who examined job satisfaction and its correlates, and Seashore and Tabler (1975), who focused on job satisfaction indicators Additionally, several studies have compared job satisfaction across genders and banking sectors, including Sadegh and Azadeh (2012), who evaluated the impact of gender differences on job satisfaction in Iran's airline industry, and Devi and Suneja (2013), who conducted a comparative analysis of job satisfaction between public and private sector banks.
Other authors research about the demographic attributes and job satisfaction, such as
Santosh and Santoshi (2014) explore the connection between various job dimensions and job satisfaction Their research highlights the significant effects of employee participation on job satisfaction, commitment, and productivity, as discussed by Komal and Tahir.
2007), impact of salary differential on managerial job satisfaction (Okpara, 2004), relationship between job satisfaction and job commitment (Luqman, Bolaji, & Abubakar,
2012), job satisfaction and job performance relationship (Timothy, Carl, Joyce, & Gregory,
2001), work values and job satisfaction (Ju, Mohd, Datin, & Kong, 2006), etc
In the banking industry, low job satisfaction hampers the enhancement of service quality due to factors such as long working hours, high workload pressure, perceived unfairness in promotions and salaries, and an uncomfortable working environment This dissatisfaction directly impacts employee performance, absenteeism, commitment, turnover rates, and overall workplace citizenship behaviors.
Job satisfaction significantly impacts both employee performance and customer satisfaction in the banking sector (Koh and Boo, 2001; Yee, Yeung, & Cheng, 2008) Understanding job satisfaction is crucial for enhancing employee productivity, which in turn boosts overall bank performance and customer satisfaction In Vietnam, research has been conducted on employee job satisfaction within the banking industry, including a study by Nguyen (2012).
Eximbank in Da Nang province plays a significant role in the banking sector, as highlighted by Phan (2011), who examines the factors affecting job satisfaction in commercial banks in Thua-Thien Hue province Additionally, Mai and Bui (2013) identify both direct and indirect influences on employee loyalty through job satisfaction within the banking industry in Ho Chi Minh City.
This study examines the factors influencing job satisfaction in commercial banks in Ho Chi Minh City, Vietnam, aiming to understand their impact on employee satisfaction Additionally, it explores the relationship between job satisfaction and employee loyalty, as well as gender and sector differences in both job satisfaction and loyalty among employees.
Problem statement
During the economic crisis from 2008 to 2014, Vietnam's banking industry faced significant internal management challenges, particularly concerning human resources Minh (2014) noted that many commercial banks resorted to mass layoffs, terminating hundreds of employees as a cost-cutting measure.
In 2013, Maritime Bank laid off over 1,300 employees, while Asia Commercial Bank reduced its workforce by 1,100 Additionally, Saigon – Hanoi Bank cut 660 jobs in the first half of 2014 These layoffs have resulted in increased workloads and stress for the remaining employees Despite these challenges, high and middle-level managers remain crucial for the banks' development, particularly during this crisis period (Quoc, 2013).
Skilled employees and managers are essential assets for banks, particularly in Vietnam, where job responsibilities across commercial banks are quite similar This similarity allows employees to transition easily between banks in search of better benefits.
That is the reason why banks need to have strategies to remain their brilliant employees by increasing their job satisfaction and their loyalty towards organizations
Research on job satisfaction within Vietnam's banking industry is limited, with notable studies by Nguyen (2012), Phan (2011), and Mai and Bui (2013) Specifically, Mai and Bui (2013) conducted a study in Ho Chi Minh City that identified key factors influencing job satisfaction, such as supervisor support, fringe benefits, teamwork, working environment, and training opportunities.
This study seeks to identify additional factors influencing job satisfaction in commercial banks in Ho Chi Minh City By understanding employee demands and requirements, the research aims to enhance management efficiency, boost employee loyalty, and ultimately improve customer satisfaction.
Research objectives
This study investigates the factors affecting job satisfaction among employees in commercial banks in Ho Chi Minh City and assesses the extent of their impact Additionally, it explores the relationship between job satisfaction and employee loyalty, while also examining potential differences in job satisfaction and loyalty based on gender and banking sectors.
Research questions
To achieve the research objectives, the study will find the answers for these following questions:
- What are factors that influence job satisfaction in commercial banks in Ho Chi Minh
- What are the impact level of these factors on job satisfaction of employees in commercial banks in Ho Chi Minh City?
- What is the influence of job satisfaction on employee loyalty in commercial banks in
This article explores the differences in job satisfaction and employee loyalty between genders across various bank sectors It aims to analyze how these factors may vary and influence workplace dynamics, providing insights into gender-related trends in the banking industry.
Research scope
This study is focused on Ho Chi Minh City, the most populous and second-largest city in Vietnam, which serves as the country's economic, cultural, and educational hub In the first half of 2014, Ho Chi Minh City made significant contributions to the national landscape.
22.71% to GDP of the whole country in which services accounts for 59.38% of GDP of the city (Statistical Office in Ho Chi Minh City, 2014)
As of the end of 2013, Ho Chi Minh City is home to 378 branches from 61 banks, categorized into four sectors based on ownership structures The first sector comprises three banks owned by the Vietnamese government, including the Vietnam Bank for Social.
Policies, Vietnam Development Bank, and State Bank of Vietnam The second bank sector is 13 foreign commercial banks that have 100% of capital from foreign countries, including
Australia And Newzealand Bank, Deutsche Bank, Citibank, HSBC, Standard Chartered
Bank, Shinhan Bank, Hong Leong Bank, Mizuho, Credit Agricole, Tokyo-Mitsubishi,
Sumitomo Mitsui Bank, Commonwealth Bank, and Bank of Investment and Development
Cambodia The third bank sector is 5 joint-venture commercial banks, including Indovina
Bank, Vietnam - Russia Bank, VID Public Bank, Vinasiam Bank, and Lao – Viet Bank The rest are 40 domestic commercial banks, including Sacombank, Asia Commercial Bank,
In Ho Chi Minh City, government banks like Techcombank and Eximbank represent nearly 5% of the banking sector, while commercial banks dominate with over 95% Therefore, this study will concentrate on commercial banks in Ho Chi Minh City for data collection.
Therefore, the limitation of location in this study is employees working for commercial banks in Ho Chi Minh City, such as Vietcombank, Vietinbank, Eximbank, Agribank,
Military Bank, Asia Commercial Bank (ACB), Western Bank, Sacombank, HSBC, ANZ,
In September 2014, data will be gathered through questionnaires targeting banking employees, focusing on the key research areas of job satisfaction and employee loyalty.
Research structure
This study is organized into five chapters Chapter 1 introduces the study's necessity, outlining the background, problem statement, research objectives, scope, and structure Chapter 2 reviews existing literature on job satisfaction and employee loyalty, focusing on various industries, particularly the banking sector, and proposes hypotheses and a research model Chapter 3 details the research methodology, including the study process, data collection and analysis methods, and measurement of constructs Chapter 4 presents and discusses the research results, covering descriptive statistics, reliability tests, exploratory factor analysis, regression analysis, and variance analysis related to job satisfaction and employee loyalty by gender and bank sector Finally, Chapter 5 summarizes the findings, offers managerial implications, discusses study limitations, and suggests directions for future research.
LITERATURE REVIEW
Job satisfaction definition
There are plenty of researches investigating on job satisfaction, such as Kuo and Chen
(2004), Ellickson (2002), Groot and Brink (1999), and Rogers, Clow, and Kash (1994) The definition of job satisfaction is frequently based on Maslow's need hierarchy theory,
Herzberg's motivator-hygiene theory, Vroom’s expectancy theory, and Adam's fairness theory
Job satisfaction, as defined by Locke (1976), is a positive emotional state that arises when individuals perceive their jobs as fulfilling significant values that align with their personal needs.
Job satisfaction is defined as an individual's overall attitude towards their job (Robbins, 2003) and reflects the extent to which employees feel positively about their employment with the organization (Price, 1997) Essentially, it measures how much people enjoy their work.
Factors impact on job satisfaction
Job satisfaction among employees is influenced by various factors, which can be categorized into two main groups The first group consists of determinants of job satisfaction, including employee participation, hygiene factors, fair and empathetic management, a positive working environment, job characteristics, and opportunities for promotion The second group encompasses demographic variables that relate to job satisfaction, such as gender, marital status, education, income, and age.
Employee participation significantly enhances performance, as noted by Wagner (1994) and Linda (1998) Increased involvement in decision-making fosters greater commitment to the organization Additionally, Vander, Blonk, Schene, & Van (2001) highlight that interdependence in group tasks boosts job satisfaction by fostering a sense of belonging and improving coordination among employees.
Hygiene factors, as noted by Zohir (2007), include non-financial benefits like canteen and transport facilities, which significantly influence employees' quality of life By enhancing these aspects, companies can boost employee satisfaction and performance.
Moreover, Rahman (2005) and Yussuf (2008) identify technological innovation in working can bring higher level of service quality as well as volume productions
Fair and empathetic management significantly impacts job satisfaction, as highlighted by Locke (1976), who emphasizes the importance of equal rewards and recognition Furthermore, research by Foel et al (2000) demonstrates that employees under democratic leadership report higher satisfaction levels compared to those under autocratic leadership, indicating that leadership style plays a crucial role in influencing job satisfaction.
A positive working environment, characterized by supportive and collaborative colleagues, significantly enhances job satisfaction, as noted by Locke (1976) and Bajpai and Srivastava (2004) Additionally, Dunham-Taylor (2000) emphasizes that organizations that invest in their employees through motivation and regular training contribute to increased employee satisfaction.
Job characteristics play a crucial role in employee satisfaction, as highlighted by Locke (1976) Jobs that offer intrinsic interest, variety, opportunities for learning, and a balanced level of challenge tend to enhance employee engagement Workers are more fulfilled when they can master their skills through diverse tasks, enjoy autonomy, and receive constructive feedback Conversely, jobs lacking challenge can lead to boredom, while those that are overly demanding may result in feelings of failure.
Fair promotion policies are essential for organizational growth, as they significantly enhance employees' perceptions of job quality Research by Kalleberg and Mastekaasa (2001) indicates that such promotions lead to increased job satisfaction and commitment among employees.
(1992) also indicate the similar study result
2.2.2 Demographic variables impact on job satisfaction
Research on the relationship between gender and job satisfaction presents varying perspectives Clark (1997), Sloane and Williams (1996), and Ward and Sloane (1998) suggest that women generally experience higher levels of job satisfaction compared to men However, other studies indicate differing conclusions, highlighting the complexity of this relationship.
Forgionne and Peeters (1982), Shapiro and Stem (1975) find that men to be more satisfied than women
Research indicates a connection between marital status and job satisfaction, with findings from Fetsch and Kennington (1997) suggesting that both divorced and married employees report higher job satisfaction compared to their single counterparts.
Swortzel, and Taylor (2005) find no relationship between marital status and job satisfaction
Research shows that higher levels of education positively influence job satisfaction, as individuals' expectations rise with their educational attainment (Churchill, Ford, and Walker, 1979) Employees with advanced education tend to focus more on productivity and experience fewer negative feelings about their jobs (Bilgic, 1998) Furthermore, a mismatch between employees' qualifications and their job roles can lead to dissatisfaction (Bajpai and Srivastava, 2004).
Falcone (1991), and Okpara (1996) also find the positive relationship between education level and job satisfaction
Income: According to Bilgic (1998), Sokoya (2000), Sweeney, McFrarin, and Inderrieden
Research by Howard and Frink (1990, 1996) indicates a notable disparity in job satisfaction levels among employees based on their income Those with lower incomes generally report decreased job satisfaction compared to their higher-paid counterparts However, even employees with high salaries may experience dissatisfaction if they are unhappy with the nature of their work (Luddy, 2005).
Research indicates a complex relationship between age and job satisfaction, with some studies, such as those by Rhodes (1983), Lee and Wilbur (1985), and Weaver (1978), demonstrating a positive correlation Conversely, other research, including findings by Herzberg and Mausner, suggests a negative or insignificant link between age and job satisfaction.
Peterson, & Capwell, 1957; Singh and Singh, 1980).
Studies about job satisfaction in general and in banking industry
Numerous studies across various countries and industries, including engineering, public services, and the hotel sector, have examined employee job satisfaction, as confirmed by the literature review Additionally, the banking industry has been a focal point for research into the determinants of job satisfaction, with a summary of these studies provided in Table 2.1 For further details, refer to Appendix 1.
Table 2.1: Studies of factors influence job satisfaction in banking industry
Title of study Determinants of job satisfaction in banking industry Authors (Year)
Factors influencing job satisfaction of banking sector employees in Chennai, India
Pay and promotion, organization aspects, supervisor behavior, job and working condition, and coworker behaviors
Job satisfaction among bank employees in Punjab,
Pay and job security Khalid and Irshad (2010)
Job satisfaction in commercial banks of
Bangladesh with different ownership structures: A comparative study
- Job relating factors: job security, fair job design, challenging work, status, authority and responsibility, autonomy, personal growth, balance between life and work, opportunities to use skills, quality of supervision
- Benefits: Salary, medical facilities, training and development, housing and others
- Relationship: Relationship with supervisor, teamwork, relationship with coworkers
- Working environment: Working conditions, safety and security, culture of the bank, rules and regulations, availability
Mohammed (2006) tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
12 of resources, working hours, and working conditions
Effective management behaviors are crucial for fostering a positive workplace environment Key aspects include ensuring fairness in promotions and performance evaluations, providing timely feedback, and recognizing employee achievements Additionally, a commitment to professional development and genuine concern for employees' well-being are essential Encouraging freedom of expression and maintaining open communication further enhance employee engagement and satisfaction.
Demographic attributes and job satisfaction in banks in
Participate environment, hygiene factors, fair and empathic management, service quality, accessibility, age, and education
A study on job satisfaction and morale of commercial banks in Bangladesh
- Personal factors: gender, age, time on job, religion
- Factors inherent in the job: type of work, skill required, occupation status, commitment to organization, size of organization, place of work
- Factors controllable by management: security, pay, opportunity for advancement/promotional opportunity, working conditions, supervision
Analysis of the factors influencing job satisfaction of the commercial banks’ staff in ThuaThien-Hue province
Salary, bonus policies, incentive mechanisms, work pressure, leadership, training, promotion, work behavior, and relationship
Study of job satisfaction of staff in Eximbank – Da Nang branch
Compensation, leadership, training, promotion, work itself, co-workers, and working conditions
Employee loyalty definition
Loyalty, as defined by Allen and Grisaffe (2001), is a psychological state that reflects the relationship between an employee and their organization, significantly influencing their decision to stay with the company.
Loyalty, as defined by Billings (1993), is characterized by a strong desire to remain a member of an organization, a commitment to exert significant effort for its benefit, and a firm belief in its values and goals.
Relationship between job satisfaction and employee loyalty
Numerous studies have explored the connection between job satisfaction and employee loyalty across various industries and countries Research by Turkyilmaz et al (2011) reveals a significant positive correlation in Turkey's public sector, where job satisfaction accounts for nearly 50% of the variance in employee loyalty Similarly, Abdullah et al (2009) found that in Malaysia's hotel industry, employee loyalty is driven by job satisfaction, which is influenced by factors such as recognition, rewards, working conditions, teamwork, and supervisor relationships.
This study identifies four key determinants of job satisfaction that significantly influence employee loyalty, including employment tenure, career planning with the company, and recommendations for employment Research by Hussain (2012) highlights a strong correlation between job satisfaction and employee loyalty in Pakistan's hotel industry, emphasizing factors such as relationships with supervisors, performance appraisals, work conditions, teamwork, and coordination Similarly, Mai and Bui (2013) found that in Vietnam's banking sector, higher job satisfaction, supervisor support, fringe benefits, teamwork, a positive working environment, and training opportunities are all positively linked to increased employee loyalty.
Hypotheses and research model
This study identifies key factors influencing job satisfaction, drawing on a literature review and an analysis of commercial banks in Ho Chi Minh City The findings highlight the specific characteristics of these banks that contribute to employee satisfaction.
They are participation and empowerment, working conditions, reward and recognition, teamwork, payment and benefits, nature of work, and training and personal development
Employee participation involves their engagement in management and decision-making processes concerning company strategies, goals, and policies.
14 employees' understanding of goals, values, and politics of their companies are positively and significantly related to job satisfaction
Empowerment is about fostering an environment where employees can work autonomously, enhancing both individual and organizational performance This approach enables employees to reach their goals without the need for constant management oversight.
Armenakis (2005), employees' feeling of empowerment has a positive impact on job satisfaction
Based on the influence of participation and empowerment on job satisfaction, Hypothesis 1
H1: There is a positive relationship between participation and empowerment and job satisfaction
Physical working conditions, as outlined by Locke (1976), encompass factors such as workplace comfort, temperature, humidity, ventilation, lighting, and noise levels Optimal performance is achieved when these elements are maintained at moderate levels, as extremes—such as insufficient lighting or excessive heat—can lead to physical discomfort and hinder employee productivity.
Research indicates that employees prioritize proximity to home, modern facilities, cleanliness, and sufficient tools and equipment in their workplace Enhanced job satisfaction is linked to improved physical working conditions De Troyer (2000) attributes low job satisfaction primarily to inadequate physical environments Therefore, Hypothesis 2 (H2) is proposed to explore the connection between working conditions and job satisfaction.
H2: There is a positive relationship between working conditions and job satisfaction
Maurer (2001) emphasizes the importance of connecting rewards and recognition to organizational success, highlighting that employee job satisfaction plays a crucial role in this relationship.
15 the key factors influencing job satisfaction The lack of proper reward and recognition decreases job satisfaction of employees
Locke (1976) identifies recognition as a key factor influencing job satisfaction and dissatisfaction, particularly among blue-collar workers It serves as essential feedback on employee performance, enabling individuals to rectify past mistakes and establish future performance goals Additionally, promotions, viewed as a form of recognition, significantly enhance job satisfaction by fulfilling needs for psychological growth, fairness, higher income, and social status Consequently, Hypothesis 3 (H3) is proposed based on the effects of rewards and recognition on job satisfaction.
H3: There is a positive relationship between rewards and recognition and job satisfaction
Effective teamwork enhances employee motivation and performance while boosting self-efficacy By fostering a sense of autonomy, significance, and connection among team members, teamwork contributes to overall job satisfaction.
Research by Volkwein, Malik, and Napierski (1998) indicates that teamwork positively influences job satisfaction, while work stress stemming from interpersonal relationships negatively impacts job satisfaction (Patterson & West, 2011).
According to Volkwein and Zhou (2003), teamwork and interpersonal relationships significantly impact job satisfaction, surpassing the influence of organizational, environmental, and personal characteristics This leads to the formulation of Hypothesis 4 (H4), which explores the connection between teamwork and job satisfaction.
H4: There is a positive relationship between teamwork and job satisfaction
Employee training provides opportunities to employees widen their knowledge and abilities for more efficient teamwork and achieve individual development (Jun, Cai, & Shin, 2006)
Self-development training significantly enhances workers' job satisfaction, leading to a more motivated and engaged workforce.
Training programs significantly enhance job satisfaction by developing individual competencies and boosting self-confidence among employees Research indicates that employees who participate in training perceive greater career development opportunities and feel that their companies are investing in their growth Consequently, this positive environment leads to increased job satisfaction Therefore, based on the influence of training and personal development on job satisfaction, Hypothesis 5 (H5) is proposed.
H5: There is a positive relationship between training and personal development and job satisfaction
Payment encompasses various elements such as amount, fairness, and method, while benefits include pensions, medical coverage, annual leave, and paid vacations (Locke, 1976) An effective compensation system fosters organizational growth and positively correlates job satisfaction with job-based wages, skill-based pay, and performance-based pay (Lai, 2011) The study highlights that intrinsic motivational factors—such as recognition, career opportunities, professional growth, and a positive organizational sentiment—significantly influence job satisfaction Consequently, Hypothesis 6 (H6) is proposed to explore the impact of payment and benefits on job satisfaction.
H6: There is a positive relationship between payment and benefits and job satisfaction
According to Locke (1976), the nature of work encompasses new learning, creativity, autonomy, and decision-making responsibilities, all of which engage an employee's mental faculties, referred to as mental challenge Without sufficient mental challenge, employees may experience boredom due to their untapped mental capacity When the work presents a significant challenge that the employee embraces, it can lead to increased interest and involvement in the job (Ford, 1969; Patchen).
Herzberg et al (1959) and Strong (1943) highlight significant findings related to the topic The importance of these studies is underscored by their relevance in contemporary discussions.
17 precondition of work satisfaction is that the individual finds the work itself personally interesting and meaningful
RESEARCH METHODOLOLY
Research process
The research process for this study comprised three key stages: item generation, a pilot survey, and the final survey along with data analysis, as illustrated in Figure 3.1.
Figure 3.1: Research process of the study
The study begins by highlighting the significance of job satisfaction within organizations and reviewing various international research on the topic across different fields It identifies a research problem rooted in the practical context of the Vietnamese economy and the gaps in existing studies on job satisfaction Consequently, the research objectives and questions were formulated to explore the determinants affecting job satisfaction, the relationship between job satisfaction and employee loyalty, and potential differences in these factors based on gender and the banking sector The focus of this research is specifically on commercial banks in Vietnam.
In September 2014, data was collected from banking employees in Chi Minh City, leading to a literature review on job satisfaction This review culminated in the formulation of 12 hypotheses and a proposed research model The initial phase concluded with the development of a draft questionnaire, which was based on the measurement scales derived from the literature review.
In the second stage, two pilot surveys were conducted to evaluate the draft questionnaire prior to the official survey The first pilot survey, involving 10 respondents, focused on identifying issues related to meaning, spelling, and grammar Subsequently, a second pilot survey with 54 respondents assessed the reliability and validity of the constructs measured in the study Given the positive results from the reliability and validity tests of the second pilot survey, an official questionnaire was developed for distribution to employees of commercial banks in Ho Chi Minh City for data collection.
In the third stage, a survey was conducted with 143 respondents from 29 commercial banks in Ho Chi Minh City using a simple random sampling method The reliability of the measurement scale for the nine constructs was tested using Cronbach’s Alpha Subsequently, exploratory factor analysis (EFA) assessed the validity of the data, followed by multiple linear regression analysis to explore the relationship between job satisfaction and its determinants, as well as simple linear regression analysis to examine the link between job satisfaction and employee loyalty Additionally, analysis of variance was performed to investigate differences in job satisfaction and employee loyalty across genders and bank sectors The findings led to conclusions and recommendations presented at the end of this stage.
Data collection methods
The data collection instrument utilized was a questionnaire based on a 5-point Likert Scale, ranging from "strongly disagree" to "strongly agree." Specifically, point 1 represented "strongly disagree," point 2 indicated "disagree," point 3 was "neutral," point 4 signified "agree," and point 5 denoted "strongly agree." The questionnaire comprised a total of 35 questions.
23 questions were used to measure 28 observable variables, and 7 questions were used to collect demographic information
Hair et al (2006) suggest that for effective exploratory factor analysis (EFA), a sample should have a ratio of 5:1 between observations and measured items, meaning each measured item requires at least 5 observations In this study, with 28 items assessing 9 constructs, the minimum required number of observations was 140.
The official survey collected 143 responses that was acceptable for using exploratory factor analysis
The initial pilot survey, which involved 10 respondents, aimed to identify any issues related to meaning, spelling, and grammar in the questionnaire Following this, a second pilot survey with 54 respondents was conducted to assess the reliability and validity of the measurement scales prior to launching the official survey.
Following the positive outcomes of the second pilot survey, official questionnaires were distributed to employees of 29 out of 58 commercial banks in Ho Chi Minh City, which included 7 foreign banks: ANZ, Citibank, HSBC, Indovina Bank, Shinhan Bank, and Standard.
Chartered Bank, and VRB There were 22 domestic banks, including ACB, Agribank,
BIDV, Eximbank, HD Bank, Maritime Bank, MB, MHB, OCB, Ocean Bank, Sacombank,
SCB, Techcombank, Tien Phong, VIB, Viet Capital Bank, VietBank, Vietcombank,
Vietinbank, and VPBank Finally, the official survey collected 143 questionnaires that were personally completed and 100% of them were qualified for data analysis.
Data analysis methods
SPSS software was used for analyzing data with many techniques, including descriptive statistics, reliability test, exploratory factor analysis, linear regression, and analysis of variance (ANOVA)
This study employed a mixed-methods approach, utilizing both qualitative and quantitative techniques for data analysis The qualitative phase involved the development and refinement of measurement scales, while the quantitative phase included reliability testing using Cronbach’s Alpha, exploratory factor analysis (EFA), and linear regression to identify the determinants of job satisfaction.
24 analysis of variance (ANOVA) to test the difference in job satisfaction and employee loyalty between genders and bank sectors
The study employed Cronbach’s Alpha coefficient to assess the reliability of the measurement scale for nine constructs in the theoretical framework, which included participation and empowerment, working conditions, rewards and recognition, teamwork, training and personal development, payment and benefits, nature of work, job satisfaction, and employee loyalty Additionally, exploratory factor analysis (EFA) was conducted to determine the number of factors among 28 observable variables.
The study employed two regression analysis models based on the results of Exploratory Factor Analysis (EFA) to examine the relationships between dependent and independent variables The first model utilized multiple linear regression, with independent variables including participation and empowerment, working conditions, rewards and recognition, teamwork, training and personal development, payment and benefits, and nature of work, while job satisfaction served as the dependent variable The second model applied simple linear regression, where job satisfaction was the independent variable and employee loyalty was the dependent variable.
The study's theoretical framework is grounded in the research by Turkyilmaz et al (2011), which examines job satisfaction and employee loyalty among public sector employees in Turkey The measurement scale utilized in this research demonstrates clarity, with Cronbach’s Alpha and EFA loading coefficients ranging from 0.7 and above Additionally, this measurement scale has been adopted by several other authors, including Devi & Suneja (2013) and Phan, highlighting its relevance and reliability in the field.
(2011), Nguyen (2012), Mohammed (2006), Islam and Saha (2001), Sowmya &
This study builds upon the measurement scale of constructs established by Turkyilmaz et al (2011), incorporating modifications to the working conditions scale and introducing two additional constructs: payment and benefits, as well as the nature of work.
Turkyilmaz et al (2011) use 3 observable variables to measure participation and empowerment, including (1) participation in decisions, (2) participation in meetings, and (3) employee empowerment – initiative
Turkyilmaz et al (2011) assess working conditions by examining physical working conditions and implementing work measurement techniques, which determine the time required for an average employee to complete specific tasks This approach is suitable for evaluating the performance of certain bank positions, such as tellers and verification officers, but not for sales representatives, whose performance is driven by sales targets rather than time constraints The study redefined "physical working conditions" by considering the total time for a typical working day and measuring working conditions through infrastructure, working environment, and working hours Nguyen (2012) also employed this measurement scale, which demonstrated high reliability and validity.
Rewards and recognition were measured by 4 observable variables They were (7) recognition, (8) rewards, (9) just and fair corporate policy, and (10) fair promotion
Teamwork was measured by (11) efficient teamwork, (12) conflict resolution, and (13) sharing problems Training and personal development were measured by (14) importance of training and (15) importance of personal development
Job satisfaction is influenced by several key factors, including work itself, compensation, opportunities for promotion, recognition, working conditions, individual employee characteristics, relationships with supervisors, co-workers, and subordinates, as well as the overall company and management practices (Locke, 1976).
In comparing the works of Locke (1976) and Turkyilmaz et al (2011), it is evident that Turkyilmaz et al (2011) omit two critical variables: payment and the nature of work To create a comprehensive theoretical framework for understanding job satisfaction, this study incorporates payment and benefits, along with the nature of work The measurement scale for these constructs is derived from Nguyen's (2012) research, ensuring a robust assessment of these factors.
Nguyen (2012) employs the Job Descriptive Index, created by Smith et al (1969), which demonstrates high reliability and validity in both theoretical and practical applications.
According to Nguyen (2012), payment encompasses five observable variables: (i) salary aligned with job characteristics, (ii) a sense of security regarding current salary, (iii) salary commensurate with contribution level, (iv) appropriate subsidies, and (v) a fair bonus policy Among these, the three most significant dimensions are (i) salary matching the nature of work, (ii) a just and fair salary policy, and (iii) affordability of salary for daily living expenses.
(Sowmya & Panchanatham, 2011; Devi & Suneja, 2013) Thus, this study used these 3 dimensions to measure payment due to its simplification
Nguyen (2012) identifies three dimensions for measuring benefits: clarity and completeness of the benefits policy, employee care, and attractiveness In contrast, Hossain (2014) condenses this into a single dimension, focusing on employee satisfaction with the benefits policy, which aligns more closely with the objectives of this study.
Nguyen (2012) identifies five key dimensions that define the nature of work: (i) the expression of social status, (ii) the effective utilization of personal abilities, (iii) alignment with educational background and expertise, (iv) opportunities for knowledge and skill enhancement, and (v) the level of work-related stress.
The measurement scale for job satisfaction was refined by eliminating dimensions related to social status and opportunities for knowledge and skill improvement Consequently, the nature of work was assessed based on its alignment with the individual's level of education and specialty, as well as its capacity to effectively utilize personal abilities.
According to Turkyilmaz et al (2011), job satisfaction included 4 observable variables
Employees expressed satisfaction with their work, finding enjoyment in their roles, opportunities for learning and growth, and a sense of importance Their loyalty was reflected in their desire to remain with the bank and to recommend it to others.
Table 3.1 displays the measurement scales for nine constructs, which encompass seven independent constructs and two dependent constructs Further details regarding the studies that utilized these measurement scales can be found in Appendix 4.
DATA ANLYSIS
Sample description
The study collected 143 questionnaires from 29 banks among 58 banks in Ho Chi Minh
City There were 07 foreign banks, including ANZ, Citibank, HSBC, Indovina Bank,
Shinhan Bank, Standard Chartered Bank, and VRB There were 22 domestic banks, including ACB, Agribank, BIDV, Eximbank, HD Bank, Maritime Bank, MB, MHB, OCB,
Ocean Bank, Sacombank, SCB, Techcombank, Tien Phong, VIB, Viet Capital Bank,
VietBank, Vietcombank, Vietinbank, and VPBank
In a survey of 143 respondents, 41.3% were male (59 individuals) and 58.7% were female (84 individuals) Notably, 82.5% of the banking employees surveyed held university degrees, while 21% possessed master's degrees, and only 4% graduated from technical schools or colleges.
This meant banking employees had high education to satisfy high requirements for recruitment
The workforce in the studied commercial banks is predominantly young, with 86.7% of respondents aged between 21 and 30 years Additionally, 17% fall within the 31 to 40 age range, while only 2% are aged 41 to 50 years In terms of tenure, nearly 38% of respondents have been with their current banks for 1 to less than 3 years, 32.9% for 3 to less than 5 years, 17.5% for less than 1 year, and 18% have worked for 5 years or more.
In this study, nearly 50% of banking employees earned between 6 million VND and less than 9 million VND, while 25.2% received salaries ranging from 9 million VND to less than 12 million VND Additionally, almost 20% of the employees earned more than 12 million VND.
29 month In the survey, 84.6% of respondents were employees whereas only 15.4% of them were supervisors or managers Descriptive statistics of the sample was shown in Table 4.1
Table 4.1: Descriptive statistics of the study sample
Time of working Below 1 year 25 17.5
From 1 year to less than 3 years 53 37.1
From 3 year to less than 5 years 47 32.9
From 5 year to less than 7 years 9 6.3
Salary per month From 3 mil VND to less than 6 mil VND 14 9.8
From 6 mil VND to less than 9 mil VND 65 45.5
From 9 mil VND to less than 12 mil VND 36 25.2
From 12 mil VND to above 28 19.6
Reliability test for 9 constructs
The reliability analysis conducted with SPSS software assessed the reliability of the data collection instrument A Cronbach’s Alpha value between 0.7 and 0.8 indicates a good fit, while a value of 0.6 or higher is considered acceptable.
The study assessed participation and empowerment through three observable variables: involvement in decision-making, attendance in meetings, and employee initiative The measurement scale demonstrated an acceptable reliability with a Cronbach’s Alpha of 0.686.
The reliability test results for the participation and empowerment determinant indicated that deleting any item from the scale would result in a Cronbach’s Alpha lower than 0.686, confirming the reliability of the three items measured Table 4.2 illustrates these findings.
Table 4.2: Cronbach’s Alpha reliability test results
Scale Mean if Item Deleted
Scale Variance if Item Deleted
Cronbach’s Alpha if Item Deleted
Participation and empowerment (3 items) Cronbach’s Alpha = 0.686
Working conditions (2 items) Cronbach’s Alpha = 0.835
Rewards and recognition (4 items) Cronbach’s Alpha = 0.851
Just and fair corporate policy
Training and personal development (2 items) Cronbach’s Alpha = 0.630
Payment and benefits (4 items) Cronbach’s Alpha = 0.855
Just and fair salary policy 9.84 6.389 0.709 0.810
Nature of work (2 items) Cronbach’s Alpha = 0.805
Job satisfaction (4 items) Cronbach’s Alpha = 0.886
To be content with the type of work
Employee loyalty (2 items) Cronbach’s Alpha = 0.790
Desire to continue working for the current bank
Recommend the current bank to others
3.55 0.883 0.653 a tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
Working conditions determinant was measured by 3 observable variables They were infrastructure, working environment, and working hour The Cronbach’s Alpha of this scale was 0.710
Removing the item "working hour" from the scale resulted in an increased Cronbach’s Alpha value of 0.835, surpassing the acceptable threshold of 0.710 This indicates that "working hour" is not a suitable measure for assessing determinants of working conditions and should be excluded from the scale to enhance reliability The eliminated item is detailed in Table 4.3.
The working conditions determinant was assessed using two observable variables: infrastructure and working environment, achieving a Cronbach’s Alpha of 0.835 The reliability test results for the working conditions determinant are presented in Table 4.2.
Table 4.3: Cronbach’s Alpha reliability test results of deleted items
Scale Mean if Item Deleted
Scale Variance if Item Deleted
Cronbach’s Alpha if Item Deleted
Nature of work Cronbach’s Alpha = 0.666
There were four items used to measure rewards and recognition determinant They were recognition, rewards, just and fair corporate policy, and fair promotion The value of
Cronbach’s Alpha for this scale was 0.851 that was good fit to measure the concept
The reliability of the rewards and recognition determinant was confirmed, as the removal of any of the four items resulted in a decrease in Cronbach’s Alpha.
Efficient teamwork, conflict resolution, and problem sharing are key factors in assessing teamwork effectiveness The scale used to measure these determinants demonstrated a reliable Cronbach’s Alpha value of 0.748, confirming its reliability in evaluating the concept of teamwork.
Due to Cronbach’s Alpha value would decrease if any items in the scale was deleted; these
3 observable variables were appropriate for the measurement scale The scale used for measuring teamwork was shown in Table 4.2
The measurement of training and personal development was assessed through two key items: the importance of training and the importance of personal development The reliability statistics indicated that these items were suitable for evaluating the determinants of training and personal development, with a Cronbach’s Alpha of 0.630 The reliability test results for this measurement scale are detailed in Table 4.2.
There were four items used to measure payment and benefits determinant They were suitable salary, just and fair salary policy, affordable salary, and satisfy with benefit policy
Cronbach’s Alpha of the measurement scale was 0.855 that was good fit to measure the concept Table 4.2 showed the result of reliability test for payment and benefits factor
The determinant was assessed using three key items: suitable work, personal ability, and work stress The Cronbach’s Alpha value of 0.666 indicates an acceptable measurement scale for the nature of work.
However, if work stress was deleted from the scale, Cronbach’s Alpha increased to 0.805
The study employed appropriate work and personal abilities to assess the determinants of the nature of work The measurement scale for the nature of work is detailed in Table 4.2, while the item related to deleted work stress is illustrated in Table 4.3.
Job satisfaction is measured by factors such as contentment with the type of work, enjoyment of the job, opportunities for learning and potential growth, and a sense of importance The reliability of these measurements is indicated by a Cronbach’s Alpha value.
The measurement scale received a score of 0.886, indicating its effectiveness For the latest full download of the thesis, please contact via email at vbhtj mk gmail.com.
If learning and potential growth was deleted from the scale, Cronbach’s Alpha increased to
The measurement scale for job satisfaction included four key items, highlighting the significance of learning and potential growth, with a score of 0.892, which is greater than 0.886, as shown in Table 4.2.
Two items used to measure employee loyalty were desire to continue working for the current bank and recommending the current bank to others The Cronbach’s Alpha was
0.790 shows that the scale was reliable The result was shown in Table 4.2.
Exploratory factor analysis
The quasi-quantitative ordinal scale assumption enabled the application of quantitative methods in reverse for strong scales Factor analysis facilitated the transformation of a correlated set of variables into a new, uncorrelated system of common factors that remain comparable to the original set Before extracting constructs through exploratory factor analysis, the validity of this approach is assessed by testing the significance of the relationships, utilizing Bartlett’s test of sphericity.
KMO (Kaiser-Meyer-Olkin) statistics are utilized to assess the adequacy of sample size, while Bartlett’s test of sphericity examines the hypothesis of no significant correlations among variables Rejecting the null hypothesis confirms the validity of the analysis.
KMO is greater than 0.5 shows that exploratory factor analysis is appropriate to apply for the constructs
The extraction method requires that the number of factors is determined by initial eigenvalues that are at least 1, ensuring that all factors collectively explain over 50% of the total variance Additionally, variables are considered valid if their loading factor coefficients exceed 0.5.
The reliability test results indicate that all observable variables are suitable for exploratory factor analysis, which will be conducted to validate and identify factors among the 20 observable variables.
34 variables, except 2 observable variables “working hour” and “work stress” that decreased
Cronbach’s Alpha of the measurement scale
In order to evaluate correlation of variables and significance of these realtions, KMO
(Kaiser – Meyer – Olkin) statistics was applied
The KMO index value was 0.796, with a p-value of 0.000, indicating a high KMO statistic that supports the retention of the selected variables.
Thus, all of the observable variables were included in the factor model
Table 4.4: KMO and Bartlett's Test for independent constructs
Kaiser-Meyer-Olkin Measure of Sampling Adequacy 0.796
Bartlett's Test of Sphericity Approx Chi-Square 1,367E3 df 190
The factor analysis result showed that there were 6 different factors from 7 initial constructs
A new factor, termed "motivation," emerged from the combination of two initial constructs: participation and empowerment, along with rewards and recognition, due to their interrelatedness This factor encompasses elements that enhance employee job satisfaction, including participation, empowerment, recognition, rewards, and promotion (Herzberg, 1959) Consequently, exploratory factor analysis identified six key factors: motivation, payments and benefits, nature of work, teamwork, working conditions, and training and personal development, each comprising specific variables.
Factor 1, motivation, explained 31.88% of variance, including participation in decisions, participation in meetings, employee empowerment – initiative, recognition, rewards, just and fair corporate policy, and fair promotion
Factor 2, payments and benefits, explained 10.58% of variance, including suitable salary, just and fair salary policy, affordable salary, and satisfy with benefit policy
Factor 3, which pertains to the nature of work, accounts for 8.32% of the variance, highlighting the importance of suitable work and personal abilities.
Factor 4, teamwork, explained 7.49% of variance, including efficient teamwork, conflict resolution, and sharing problems
Factor 5, working conditions, explained 7.11% of variance, including infrastructure and working environment
Factor 6, training and personal development, explained 5.19% of variance, including importance of training and importance of personal development
All of 6 factors had eigenvalues index greater than 1, loading factor coefficients greater than
0.5, and could explain 70.55% of variance Table 4.5 showed the factor analysis result of determinants of job satisfaction and Table 4.6 showed the total variance explained by these factors
Table 4.5: Factor analysis result of determinants of job satisfaction
Just and fair corporate policy 0.592
Just and fair salary policy 0.801
Extraction method: Principal component analysis
Rotation method: Varimax with Kaiser Normalization
Factor loadings below 0.5 have been excluded from the analysis For the latest full download of the thesis, please contact via the provided email.
Table 4.6: Total variance explained by 6 determinants of job satisfaction
Initial Eigenvalues Extraction Sums of Squared
Extraction method: Principal component analysis
Rotation method: Varimax with Kaiser Normalization
Factor loadings less than 0.5 have been omitted.
4.3.2.1 EFA for dependent construct of job satisfaction
The KMO index for four observable variables—job contentment, enjoyment of the job, opportunities for learning and growth, and a sense of importance—was 0.794, with a significance level of α = 0.000, indicating that exploratory factor analysis for these items was valid The results of the KMO and Bartlett’s test for job satisfaction are presented in Table 4.7.
Table 4.7: KMO and Bartlett's test for dependent construct of job satisfaction
Kaiser-Meyer-Olkin Measure of Sampling Adequacy 0.794
Bartlett's Test of Sphericity Approx Chi-Square 340.646 df 6
The Exploratory Factor Analysis (EFA) revealed a single factor, termed "job satisfaction," which accounted for 74.53% of the variance Additionally, all loading factor coefficients exceeded 0.7, indicating a strong EFA result.
Table 4.8 showed the factor analysis result of dependent construct of job satisfaction and
Table 4.9 showed the total variance explained by this factor
Table 4.8: Factor analysis result of dependent construct of job satisfaction
To be content with the type of work 0.886
Extraction method: Principal component analysis
Rotation method: Varimax with Kaiser Normalization
Table 4.9: Total variance explained by dependent construct of job satisfaction
Initial Eigenvalues Extraction Sums of Squared Loadings
Extraction method: Principal component analysis
Rotation method: Varimax with Kaiser Normalization
4.3.2.2 EFA for dependent construct of employee loyalty
The KMO index for two observable variables—namely, the desire to continue working for the current bank and the likelihood of recommending the bank to others—was found to be 0.5, with a significance level of 0.000.
The KMO value in this study was 0.5, which is considered acceptable, despite being on the lower end compared to the standard threshold of greater than 0.5 This analysis was conducted with 143 respondents, and the results are detailed in Table 4.10.
Table 4.10: KMO and Bartlett's test for dependent construct of employee loyalty
Kaiser-Meyer-Olkin Measure of Sampling Adequacy 0.500
Bartlett's Test of Sphericity Approx Chi-Square 78.113 df 1
The EFA results indicated that all items clustered under a single factor termed "employee loyalty," which accounted for 82.65% of the variance Additionally, all loading factor coefficients exceeded 0.7, reflecting a strong EFA outcome.
Table 4.11 showed the factor analysis result of dependent construct of employee loyalty and
Table 4.12 showed the total variance explained by this factor
Table 4.11: Factor analysis result of dependent construct of employee loyalty
Desire to continue working for the current bank 0.909
Recommending the current bank to others 0.909
Extraction method: Principal component analysis
Rotation method: Varimax with Kaiser Normalization
Table 4.12: Total variance explained by dependent construct of employee loyalty
Initial Eigenvalues Extraction Sums of Squared Loadings
Extraction method: Principal component analysis
The rotation method used is Varimax with Kaiser Normalization, which is essential for enhancing the interpretability of factor analysis results For the latest full thesis download, please contact via the provided email.
According to EFA result, the revised research model of the study was presented in Figure
The revised hypotheses are presented as followed
H1: There is a positive relationship between motivation and job satisfaction
H2: There is a positive relationship between working conditions and job satisfaction
H3: There is a positive relationship between teamwork and job satisfaction
H4: There is a positive relationship between training and personal development and job satisfaction
H5: There is a positive relationship between payment and benefits and job satisfaction
H9a H9b tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
H6: There is a positive relationship between nature of work and job satisfaction
H7: There is a positive relationship between job satisfaction and employee loyalty
H8a: There is difference in job satisfaction between genders
H8b: There is difference in employee loyalty between genders
H9a: There is difference in job satisfaction between bank sectors
H9b: There is difference in employee loyalty between bank sectors.
Linear regression
Regression analysis is a statistical method for modeling and analyzing numerical data, involving a dependent variable and one or more independent variables The R Square value, which ranges from 0 to 1, indicates the proportion of variance explained by the independent variables, with 0 signifying no explanation and 1 indicating complete explanation of variance.
The standardized coefficient values of constants and variables highlight the significance of each variable within the model Notably, the t-value for preparedness exceeds 2, indicating its effectiveness as a predictor.
Regression model 1 utilized multiple linear regression to examine the relationship between six independent variables—motivation, payment and benefits, nature of work, teamwork, working conditions, and training and personal development—and the dependent variable, job satisfaction The findings indicated that these six independent variables significantly contributed to explaining job satisfaction.
93.5% variance in overall job satisfaction The rest of variance was explained by other variables that were not included in the model Table 4.13 presented the regression analysis of the model
According to the regression analysis result in Table 4.13, all the standardized beta coefficients had the p-values of 0.000 that meant there were significant relationships among
The study examines six independent variables that influence job satisfaction It is crucial to recognize the relationships between these independent variables and the dependent variable within the model.
41 positive Therefore, an increase in the value of an independent variable would also increase the value of related dependent variable
The regression analysis revealed that motivation is the most significant factor influencing job satisfaction among employees in commercial banks, with a standardized coefficient β of 0.923 and a significance level of 0.000 Key elements of motivation encompass employee participation, empowerment, rewards, recognition, corporate policies, and opportunities for promotion.
Table 4.13: Regression analysis result of model 1
Model R R Square Adjusted R Square Std Error of the Estimate
1 0.968 a 0.938 0.935 0.25466477 a Predictors: (Constant), Training and Personal development, Working Conditions, Teamwork, Nature of Work,
Payment and Benefits, Reward and Recognition b Dependent variable: Job satisfaction
Payment and benefits emerged as the second most important factor affecting job satisfaction, with a standardized coefficient of β = 0.172 and a significance level of 0.000 Employees reported higher satisfaction when their salaries aligned with their job roles and skills, adequately supported their daily needs, and were complemented by favorable benefit policies.
The third important factor was teamwork with the standardized coefficient β = 0.153 at the significant level 0.000 Teamwork included cooperating well with other colleagues, resolving conflicts completely, and sharing problems with others
The nature of work is a crucial factor, with a standardized coefficient of β = 0.135 and a significant level of 0.000, highlighting the importance of aligning job positions with personal abilities Additionally, working conditions rank as the fifth important factor, indicated by a standardized coefficient of β = 0.116.
The study indicates that a safe and clean working environment, along with good infrastructure, significantly influences job satisfaction, with a notable significance level of 0.000 However, training and personal development, represented by a standardized coefficient of β 0.042 and a significance level of 0.051, have the least impact on overall job satisfaction.
Regression model 2 employed a simple linear regression to examine the relationship between job satisfaction and employee loyalty, with job satisfaction as the independent variable and employee loyalty as the dependent variable.
The regression analysis indicates that job satisfaction accounts for 38.7% of the variance in employee loyalty, demonstrating a strong positive relationship with a standardized coefficient of β = 0.625, significant at the 0.000 level, as detailed in Table 4.14.
Table 4.14: Regression analysis result of model 2
Model R R Square Adjusted R Square Std Error of the Estimate
2 0.625 a 0.391 0.387 0.78312214 a Predictors: (Constant), Job satisfaction b Dependent variable: Employee loyalty
Job satisfaction 0.625 0.066 0.625 9.515 0.000 Dependent variable: Employee loyalty
Analysis of variance (ANOVA test)
One-way analysis of variance is used to test the difference between two or more groups
This analysis compares the means of different groups to identify variations both within and between them A p-value greater than 0.05 indicates acceptance of the null hypothesis, suggesting that the average means of the groups are equal and there is no significant difference among them The study specifically investigates how job satisfaction and employee loyalty vary based on gender and the banking sector.
4.5.1 Impact of gender on job satisfaction
Table 4.15 showed the descriptive statistics of gender and Table 4.16 presented the analysis of variance of job satisfaction based on the difference in genders
The results from Table 4.16 show that the p-value for Levene's Statistics was 0.11 and the p-value for ANOVA was 0.307, both exceeding the 0.05 threshold Therefore, there is no significant difference in job satisfaction between males and females.
Table 4.15: Descriptive statistics of gender
Table 4.16: ANOVA analysis – Impact of gender on job satisfaction
Levene Statistic df1 df2 Sig
ANOVA Sum of Squares df Mean Square F Sig
4.5.2 Impact of gender on employee loyalty
The study found no significant difference in employee loyalty between genders, with a Levene's test p-value of 0.381 and an ANOVA p-value of 0.470, as detailed in Table 4.17.
Table 4.17: ANOVA analysis – Impact of gender on employee loyalty
Levene Statistic df1 df2 Sig
ANOVA Sum of Squares df Mean Square F Sig
Total 142.000 142 tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
4.5.3 Impact of bank sector on job satisfaction
Table 4.18 displays the descriptive statistics for the banking sector, encompassing both domestic and foreign banks The analysis reveals that there are 22 domestic banks in Vietnam, all of which are fully funded by local capital Notable examples of these banks include ACB, Agribank, BIDV, Eximbank, HD Bank, Maritime Bank, MB, and MHB.
OCB, Ocean Bank, Sacombank, SCB, Techcombank, Tien Phong, VIB, Viet Capital Bank,
VietBank, Vietcombank, Vietinbank, and VPBank Foreign banks that had at least 50% of capital from other countries consisted of 7 banks, including ANZ, Citibank, HSBC,
Indovina Bank, Shinhan Bank, Standard Chartered Bank, and Vietnam – Russia Bank
Details of bank sector description were shown in Appendix 5
P-value of Levene Statistics was 0.118 and p-value of ANOVA was 0.486 showed that there was no difference in job satisfaction between domestic bank sector and foreign bank sector
Table 4.19 showed the ANOVA analysis result of testing difference in job satisfaction between bank sectors
Table 4.18: Descriptive statistics of bank sector
Table 4.19: ANOVA analysis – Impact of bank sector on job satisfaction
Levene Statistic df1 df2 Sig
ANOVA Sum of Squares df Mean Square F Sig
4.5.4 Impact of bank sector on employee loyalty
The study revealed consistent findings regarding employee loyalty when comparing domestic and foreign banks, with a Levene's test p-value of 0.019 and significant results from the ANOVA analysis.
45 was 0.22 show that there was no difference in employee loyalty between domestic bank sector and foreign bank sector The research result was presented in Table 4.20
Table 4.20: ANOVA analysis – Impact of bank sector on employee loyalty
Levene Statistic df1 df2 Sig
ANOVA Sum of Squares df Mean Square F Sig
Discussion for data analysis results
Through data analysis process above, 11 hypotheses in the theoretical framework were tested and the research results were presented in this section
H1: There is a positive relationship between motivation and job satisfaction
The regression analysis results from model 1, as presented in Table 4.13, indicate that motivation is the most significant factor affecting job satisfaction, with a standardized coefficient of β = 0.923 and a t-value of 43.180, both exceeding the critical thresholds The significance level of 0.000 confirms this finding, as it is less than 0.05, and motivation accounts for 31.88% of the variance in job satisfaction Thus, at a 95% confidence level, there is strong statistical evidence supporting the conclusion that motivation has a positive impact on job satisfaction, thereby strongly validating hypothesis H1 in the research model.
H2: There is a positive relationship between working conditions and job satisfaction
The regression analysis results from model 1, presented in Table 4.13, indicate that working conditions are the fifth most significant factor affecting job satisfaction, with a standardized coefficient of β = 0.116 and a t-value of 5.449, which is greater than 2, at a significance level of 0.000.
At a 95% confidence level, the analysis revealed a strong positive correlation between working conditions and job satisfaction, accounting for 7.11% of the variance Consequently, the hypothesis H2 was robustly supported, indicating that improved working conditions significantly enhance job satisfaction.
H3: There is a positive relationship between teamwork and job satisfaction
The regression analysis results from model 1, as presented in Table 4.13, indicate that teamwork is the third most significant factor affecting job satisfaction, with a standardized coefficient of β = 0.153 and a t-value of 7.146, which is greater than 2, at a significance level of 0.000 This factor accounts for 7.49% of the variance in job satisfaction, providing strong statistical evidence at a 95% confidence level for the positive impact of teamwork on job satisfaction Consequently, the hypothesis H3 is strongly supported, confirming that teamwork positively influences job satisfaction.
H4: There is a positive relationship between training and personal development and job satisfaction
The regression analysis results from model 1, as presented in Table 4.13, indicate that training and personal development are the least significant factors affecting job satisfaction, with a standardized coefficient of β = 0.042 and a t-value of 1.968, which is below the threshold of 2 The significance level is 0.051, exceeding the 0.05 mark, and these factors account for only 5.19% of the variance in job satisfaction Consequently, at a 95% confidence level, there is statistical evidence suggesting a minimal positive impact of training and personal development on job satisfaction, leading to weak support for hypothesis H4 in the research model.
H5: There is a positive relationship between payment and benefits and job satisfaction
The regression analysis results from model 1, as presented in Table 4.13, indicate that payment and benefits are the second most significant factors affecting job satisfaction, with a standardized coefficient of β = 0.172 and a t-value of 8.029, which is greater than 2, at a significance level of 0.000.
At a 95% confidence level, the analysis revealed a strong positive correlation between payment and benefits and job satisfaction, accounting for 10.58% of the variance Consequently, the hypothesis H5 was strongly supported, indicating that payment and benefits significantly enhance job satisfaction.
H6: There is a positive relationship between nature of work and job satisfaction
The regression analysis results from model 1, as presented in Table 4.13, indicate that the nature of work is the fourth most significant factor affecting job satisfaction, with a standardized coefficient of β = 0.135 and a t-value of 6.316, which is greater than 2, at a significance level of 0.000.
At a 95% confidence level, the results indicated a strong positive impact of the nature of work on job satisfaction, accounting for 8.32% of the variance Consequently, hypothesis H6 was strongly supported, confirming that the nature of work positively influences job satisfaction.
H7: There is a positive relationship between job satisfaction and employee loyalty
The regression analysis results from model 2, as presented in Table 4.14, indicate that job satisfaction significantly influences employee loyalty, with a standardized coefficient of β = 0.625 and a t-value of 9.515, both exceeding the critical thresholds at a significance level of 0.000 This relationship accounts for 38.7% of the variance, providing strong statistical evidence at a 95% confidence level for the positive impact of job satisfaction on employee loyalty Consequently, the hypothesis H7 is strongly supported, affirming that job satisfaction positively affects employee loyalty.
H8a: There is difference in job satisfaction between genders
The ANOVA analysis presented in Table 4.16 revealed an F-value of 1.052, which is less than 2, and a significance level of 0.307, exceeding the 0.05 threshold This indicates that there is no significant difference in job satisfaction between male and female employees Consequently, the hypothesis H8a, suggesting a difference in job satisfaction based on gender, was strongly rejected in this research model.
H8b: There is difference in employee loyalty between genders
The ANOVA analysis presented in Table 4.17 revealed an F-value of 0.524, which is less than 2, and a significance level of 0.470, exceeding the 0.05 threshold This indicates that there is no significant difference in employee loyalty between male and female employees Consequently, the hypothesis H8b was strongly rejected, confirming that gender does not influence employee loyalty in the research model.
H9a: There is difference in job satisfaction between bank sectors
The ANOVA analysis presented in Table 4.19 revealed an F-value of 0.489, which is less than 2, and a significance level of 0.486, exceeding the 0.05 threshold This indicates that there is no significant difference in job satisfaction between the domestic and foreign bank sectors, leading to a strong rejection of hypothesis H9a in the research model.
H9b: There is difference in employee loyalty between bank sectors
The ANOVA analysis presented in Table 4.20 indicates an F-value of 1.520, which is less than 2, and a significance level of 0.220, exceeding the 0.05 threshold This suggests that there is no significant difference in employee loyalty between the domestic and foreign bank sectors Consequently, the hypothesis H9b is strongly rejected, confirming that employee loyalty does not vary between these banking sectors.
The testing results of 11 hypotheses in the research model were shown in Table 4.21
Chapter 4 provides a comprehensive overview of the sample's descriptive statistics, including gender, education, age, work experience, and position The reliability test for nine constructs yielded positive results, with only two items—work hours and work stress—deleted Exploratory factor analysis identified eight distinct factors: motivation, working conditions, teamwork, training and personal development, payment and benefits, nature of work, job satisfaction, and employee loyalty Regression analysis revealed that motivation, working conditions, teamwork, training and personal development, payment and benefits, and nature of work positively influence job satisfaction Furthermore, a strong positive correlation between job satisfaction and employee loyalty was established The study also found no significant differences in job satisfaction and employee loyalty based on gender or bank sector, indicating that demographic variables do not significantly impact these factors in commercial banks.
Table 4.21: Testing results of 11 hypotheses in the research model
H1: There is a positive relationship between motivation and job satisfaction 0.923 0.000 Supported
H2: There is a positive relationship between working conditions and job satisfaction 0.116 0.000 Supported
H3: There is a positive relationship between teamwork and job satisfaction 0.153 0.000 Supported
H4: There is a positive relationship between training and personal development and job satisfaction 0.042 0.051 Supported
H5: There is a positive relationship between payment and benefits and job satisfaction 0.172 0.000 Supported
H6: There is a positive relationship between nature of work and job satisfaction 0.135 0.000 Supported
H7: There is a positive relationship between job satisfaction and employee loyalty 0.625 0.000 Supported
H8a: There is difference in job satisfaction between genders 1.052 0.307 Rejected
H8b: There is difference in employee loyalty between genders 0.524 0.470 Rejected
H9a: There is difference in job satisfaction between bank sectors 0.489 0.486 Rejected