Solutions to improve employee engagement at yokowo vietnam co , ltd = giải pháp cải thiện sự gắn kết của nhân viên tại công ty tnhh yokowo việt nam

2.5 Proposing model research factors influencing the employee engagement with the organization at Yokowo Vietnam Co., Ltd .... The establishment of employee engagement with the company i

INTRODUCTION OF RESEARCH

Research rationale

In the face of globalization and international integration, domestic enterprises must prioritize the optimization of human resources to maintain competitiveness While capital and technology often dominate business strategies, the human factor is frequently overlooked, especially in the early stages of development This neglect can lead to short-term challenges and risk elimination from the market, particularly as competition intensifies with an increase in competitors and diversity in product offerings, pricing, and quality.

The global economy is shifting from resource abundance to a knowledge-driven model, where advancements in science and technology enhance labor productivity Despite the power of these advancements, human resources remain vital in shaping production processes and fostering economic growth In the corporate world, the emphasis is on individuals with specific qualities such as knowledge, skills, creativity, and dedication, which are crucial for achieving organizational goals Consequently, these key human resources directly influence the execution of business strategies and are essential for a company's survival and growth.

In today's competitive landscape, it is essential for managers and leaders to foster cohesion among their core workforce to mitigate risks like brain drain and personnel instability This focus on human resources is vital, as employees are the organization's most valuable asset Unfortunately, many companies prioritize market and capital issues over effective human resource management, leading to significant challenges that hinder business growth Traditional approaches to human resource management are increasingly inadequate in addressing these obstacles.

Contemporary human resource management should prioritize the human element by fostering an environment that allows employees to fully utilize their skills While traditional approaches focus on job roles and organizational needs, they often neglect individual factors By creating optimal conditions for personal growth and adaptation, organizations can enhance employee satisfaction and performance.

Human resources are essential for driving capital generation and fostering innovation within a company They play a critical role in selecting advanced technologies and executing tasks that enhance overall performance To ensure long-term survival, businesses of all sizes must prioritize the development and promotion of human resource qualifications at every stage of their growth cycle.

Yokowo Vietnam Co., a key player in the manufacturing and communication equipment sector for engine vehicles, partners with prestigious global car brands like Toyota, Nissan, and Honda With over a century of history for its parent company and more than ten years of operation in Vietnam, the company has achieved significant success However, recent data indicates a rising employee turnover rate, leading to increased recruitment and training costs, heightened workloads for remaining staff, and reduced productivity due to psychological impacts The loss of employees also results in the forfeiture of valuable company assets, including data, customer relationships, and training investments This situation can trigger a domino effect of further departures, indicating workforce instability and declining loyalty Company leaders are left questioning whether dissatisfaction with roles, excessive workloads, or inadequate compensation policies are contributing factors To address these challenges, an analysis will be conducted to identify factors influencing employee engagement at Yokowo Vietnam Co., with the goal of providing insights to enhance employee commitment and refine human resource management practices.

Research purpose

Human resources are recognized as a vital competency and the foundation of organizational strength This research focuses on fostering employee engagement within the company, aiming to enhance overall performance and commitment.

- Identifying the key factors that influence “employee engagement with the company”

- Evaluating and assessing the specific influence of each factor on “employee engagement with the organization”

- Formulating managerial recommendations to bolster “employee engagement with the company”, thereby ameliorating the existing personnel turnover scenario.

Research objects and scope

This thesis focuses on the key factors that affect and impact on “employee engagement to the organization” at Yokowo Vietnam Co., Ltd

Research scope: the scope of research is carried out at Yokowo Vietnam branch in Dong Van Industrial Zone 2, HaNam, Vietnam

Research period: data assessing the current situation of company focuses on research from 2018 to 2022 and proposes directions to 2024

Survey subjects: employees who have been and are working at the current company.

Research methodology

To achieve the above research objective, this study carried out through 2 phases:

Phase 1: Collect the information, using instructor references through discussion, theoretical experiments literatures then design the observation variables, survey questionnaire table then conduct the survey to collect the primary data

Phase 2: All data gathered from the survey questionnaires were analyzed using

SPSS 23 software The reliability of the scale was tested with Cronbach's Alpha coefficient, while exploratory factor analysis (EFA) was conducted EFA allows for the assessment of two key scale values: convergent validity and discriminant validity

To gather essential data for statistical analysis, a survey will be conducted involving at least 210 employees from different departments within the company The research will focus on employees who have a history of working at the organization, ensuring a comprehensive understanding of their experiences This survey will include both current and former employees, providing a robust sample frame for accurate results.

5 employees and those who have departed to discern the factors influencing their departure and their reluctance to engage with the company

Utilizing secondary data involves harnessing the comprehensive information accumulated by the HR department over the years, while also integrating theoretical concepts and practical insights derived from textbooks, monographs, specialized journals, and official documents.

Research theoretical & practical significance

This research aims to assess the current state of employee engagement within the company, identifying both its positive and negative influences Recommendations will be developed to enhance the favorable aspects and mitigate the limitations affecting engagement, based on consultations with management and senior staff The ultimate goal is to address recent personnel turnover challenges and promote greater employee engagement.

Research structure

Beyond the Introduction, conclusion, appendices, references "The thesis is organized into five chapters."

Chapter 1: Introduction the research (rationale of research, purpose, objects, scope, methodology, theoretical and organize the structure)

Chapter 2: Literature review and theoretical basis of organizational engagement, factors affecting organizational commitment, and building research hypotheses

Chapter 3: Implementing research methods in developing and validating the scale of factors impact on “employee engagement” and intention to remain with the organization

Chapter 4: Exploratory data analysis, along with the research findings, provides conclusions regarding the hypotheses about factors affecting organizational engagement and the connection between employee engagement and their intention to remain with the organization and analyzing differences across groups such as: age, seniority, gender, income, position and academic level

Chapter 5: Offer managerial insights to enhance employee engagement with the company aiming to mitigate turnover rates, the significance of the research for managers, and present limitations of the research and direction for future research

LITERRATURE REVIEW AND THEORITICAL FRAMEWORK

Conceptual of employee engagement with the organization

Core employees are characterized as the fundamental and consistent workforce within an organization, possessing the following attributes:

- Possessing knowledge, skills, and qualities aligned with business activities, coupled with leadership abilities

- Offering a competitive edge to the organization (Allan & Sienko, 1997; Gramm & Schnell, 2001)

- Serving as a vital factor for production and organizational survival, influencing the stability and development of system management

- Occupying positions at the leadership level and boasting a work experience of over 3 years within the organization

"Lepak and Snell (1999)” suggest that “core employees in organizations” are those with high value, distinctiveness, and expertise Their knowledge serves as a “key source of competitive advantage” for the organization

Core employees, more broadly defined as regular workers (Segal and Sullivan,

1997), serve as a unifying force within the labor market Their knowledge, experience, and dedication are considered essential for the success of the organization (Janet, 2004)

2.1.2 Notion of “employee engagement with the organization”

Employee engagement, while a commonly used term, varies in definition based on context Key factors like love, trust, and fairness significantly influence individual engagement In organizational settings, engagement has emerged as a buzzword, often leveraged as a competitive advantage by HR consulting firms It is typically defined as "emotional and intellectual commitment to the organization" or the "discretionary effort exhibited by employees." As a result, measuring employee engagement frequently incorporates concepts like organizational commitment and citizenship behaviors.

Organizational commitment, as described by Mowday and his colleagues (1979), refers to the degree to which an individual identifies with and engages in a specific organization This commitment encompasses a profound belief in the organization's values and goals.

Employee engagement is essential for aligning with an organization's goals and values, as it fosters identification, effort, and loyalty among individuals This positive connection motivates employees to actively contribute to the organization's success and growth According to Ulrich (2007), engagement transcends mere beliefs and requires practical actions in the workplace He emphasizes that as companies aim to boost productivity without increasing their workforce, engaging employees on physical, mental, and spiritual levels becomes a vital business strategy.

Organizational commitment, as defined by Porter et al (1974), involves a strong belief in the organization's goals, a willingness to exert maximum effort, and a desire to remain a member of the organization Zangaro (2001) emphasizes that it reflects an employee's dedication to future responsibilities within the organization Similarly, Cohen (2007) describes it as an employee's loyalty and readiness to invest significant effort in achieving the organization's objectives and values.

Organizational commitment is characterized by actively contributing to the organization, taking pride in membership, and cultivating a strong connection (Macey & Schneider, 2008) Additionally, it involves a dedication to remaining with the organization, consistently participating in work, exerting daily effort, protecting organizational assets, and upholding belief in its objectives (Meyer & Allen, 1997).

Research by Ritzer and Trice (1969) found a positive link between compensation policies and employee engagement Furthermore, studies indicate that career planning and promotion opportunities also enhance employee engagement within organizations Bartlett (2001) emphasizes the strong connection between training activities and employee engagement Additionally, Meyer and Smith (2000) explored how perceptions of training, career development, job performance assessment, and compensation relate to employee engagement.

Work engagement, as defined by Schaufeli and Bakker (2010), is a positive and fulfilling psychological state linked to one's job, characterized by enthusiasm, dedication, and passion This concept differs from workaholism, which focuses solely on the exertion of effort rather than the pleasure derived from work.

Employee engagement is a mental state where individuals express their thoughts, words, and actions towards their work, characterized by attentiveness, devotion, and passion This concept represents a sustained cognitive influence that is ongoing, rather than immediate, and is not directed at any specific object, individual, event, or action.

“Work engagement” is gauged through three distinct factors:

- Enthusiasm factor: characterized by being full of energy and dedicated to work, demonstrating a willingness to persevere even in challenging circumstances

Dedication in the workplace involves a profound commitment to one's job, driven by a genuine passion for its meaningful aspects This unwavering dedication fosters a continuous sense of inspiration and pride, equipping individuals with the resilience to face challenges head-on.

- Passion factor: signifies complete focus on work and a sense of happiness derived from dedicating all one's time to the tasks at hand

Organizational commitment, as defined by O'Reilly (1991), is the psychological bond between individuals and their organizations, encompassing participation, loyalty, trust, and shared values Work motivation, highlighted by Robins and Judge (2013), revolves around three core factors: intensity, direction, and persistence Intensity reflects the effort invested in work, while effective outcomes require clear leadership guidance Ultimately, motivation drives individuals to remain committed to their tasks until goals are met Enhancing employee engagement necessitates improving work motivation through leadership roles and maintaining perseverance by addressing the work environment, job nature, and colleague interactions Research from Dale Carnegie University (2008) and Schaufeli and Bakker indicates that a highly engaged organization fosters a supportive work environment.

- Employees inherently desire to be affiliated with the organization

- Employees take pride in introducing the company to others

- Employee engagement extends beyond monetary considerations to encompass various organizational values

- Employees establish a sense of connection with the company's reputation and ethical values

Employee engagement is a multifaceted concept characterized by a strong commitment to the organization, where employees take pride in representing their workplace as exemplary and desirable This engagement goes beyond monetary compensation, as employees recognize the various benefits of their connection to the company Additionally, they align with the company's values, ethics, and practices, which significantly contribute to the organization's overall reputation.

The importance of “employee engagement for the organization”

In a developed society, organizations understand that harnessing talented individuals significantly boosts efficiency and competitive advantage, ultimately enhancing profitability Research by Stone (2002) emphasizes that losing high-performing employees incurs substantial recruitment costs, in addition to their salaries Similarly, Somaya and Williamson (2008) reveal that the costs associated with replacing specialized skilled employees can range from 100% to 150% of their salary.

Organizations face significant losses beyond financial costs when replacing employees, as each departure results in the loss of valuable human capital, knowledge, skills, and expertise Thus, it is essential to understand that losing talented employees not only incurs monetary damages but also weakens the organization’s intellectual capacity and operational effectiveness.

Talent management is crucial for fostering a competitive atmosphere among skilled individuals, as highlighted by Bhanagar (2007) By investing in talent development, organizations not only meet their immediate resource needs but also create a sustainable management system for the future Neglecting employee investment can lead to detrimental effects on the workforce and negatively impact key operational outcomes such as productivity, quality, and customer service, ultimately jeopardizing the organization's brand, reputation, survival, and growth.

Understanding employee engagement is vital, as it directly correlates with individual success and workplace achievements Macey's research (2009) emphasizes the importance of the relationship between employees and their organization This connection is essential for the long-term success of any company, regardless of size, as engaged employees not only align with the company's mission but also comprehend the pathways to achieving it.

In the context of any organization, the conjunction of talented employees and their engagement with the organization assumes a pivotal role Both factors are intertwined with

Effective human resource management practices are essential for developing competitive advantages and enhancing organizational contributions This relationship can be encapsulated in the formula: "Talent + Engagement with the organization = Labor efficiency and organizational success."

Employee engagement is crucial for organizations as it reduces turnover rates, attracts and retains top talent, lowers recruitment costs, boosts work efficiency, and improves customer satisfaction, ultimately resulting in higher business profits.

Theoretical framework

2.3.1 Job Descriptive Index (JDI) of Smith, Kendall and Hulin (1969)

The Job Descriptive Index (JDI), developed by Smith, Kendall, and Hulin in 1969, is a key tool for measuring job satisfaction, consisting of 72 items divided into five subscales: work itself, supervision, pay, promotions, and co-workers Each subscale contains either 9 or 18 items Initially introduced in 1964 by Locke and colleagues, the JDI was validated through a study involving 21 industrial samples from diverse organizations, encompassing participants from top management to line workers The scoring system assigns values based on responses: a 'yes' to positive items and 'no' to negative items receive a score of 3, while 'no' to positive and 'yes' to negative items score 0, and a '?' response is valued at 1.

The Job Descriptive Index (JDI) is a well-recognized tool in both theory and practice, but it has notable limitations Its lengthy 72-item questionnaire can complicate data collection, and the original "Yes - No" response format restricts the assessment of employee satisfaction nuances Additionally, the JDI does not include a question specifically measuring overall employee satisfaction Over the past fifty years, research has led to the ongoing development of these models, including adaptations that utilize Likert scales to better capture workers' perceptions while reducing the number of questions compared to the original JDI.

The Minnesota Satisfaction Questionnaire, developed from the "Work Adjustment Project" at the University of Minnesota, is based on the idea that job satisfaction depends on the alignment of personal skills with the rewards offered by the work environment (Weiss et al., 1967) This self-report tool is applicable to individuals of all educational backgrounds and can be administered in both group and individual settings.

The 20-item abbreviated version of the MSQ uses a 5-point Likert scale, which ranges from (1) 'very dissatisfied with this aspect of my job' to (5) 'very satisfied with this aspect of my job,' with intermediate options including (2) 'dissatisfied,' (3) 'neutral,' and (4) 'satisfied.' The responses are summed or averaged to produce a total score, where a lower score indicates lower job satisfaction

The MSQ "long form" includes 100 questions divided into 20 subscales that assess job satisfaction (MSQ, 1977) A popular measure of overall job satisfaction is the short version of the MSQ, which consists of 20 items (Fields).

2002) The MSQ "short form" selectively includes 20 items from the original 100, specifically those that most accurately represent each of the original 20 subscales (Ahmadi and Alireza, 2007)

Moorman (1993, cited in Fields, 2002) identified two factors in the MSQ: intrinsic and extrinsic job satisfaction Schriesheim et al (1993) expanded this by introducing three subscales: intrinsic, extrinsic, and general satisfaction Mathieu's (1991) exploratory factor analysis revealed four factors: satisfaction with working conditions, leadership, responsibility, and extrinsic rewards Additionally, Igalens and Roussel (1999, as cited in Fields, 2002) confirmed a four-factor model, which included intrinsic satisfaction, extrinsic satisfaction, recognition, and authority/social utility.

Figure 2.1 Subscales structure of Schriesheim

Previous Job Satisfaction Survey (JSS) models used in manufacturing industries yielded low and inaccurate results In response, Spector (1997) developed a dedicated model for service sector employees, incorporating nine factors to evaluate satisfaction levels and attitudes.

“Salary”, (2) “Promotion opportunities”, (3) “Working conditions”, (4) “Supervision”, (5)

The concept of "colleagues," "work enthusiasm," "information communication," "unexpected rewards," and "welfare" (Spector, 1997) is primarily utilized in the human resources departments of service-oriented and non-profit organizations, including hospitals and healthcare centers.

2.3.4 Conceptual model of employee engagement (Saks, 2006)

Saks (2006) introduced an assessment model to evaluate employee engagement and developed a corresponding survey to support research on this conceptual framework The employee engagement model proposed by Saks (2006) is outlined in detail.

Figure 2.2 Conceptual model of employee engagement (Saks, 2006)

Saks (2006) developed a comprehensive survey with 70 pre-established questions to evaluate employee engagement, highlighting key factors that influence this engagement His research identifies critical elements such as job attributes, perceived organizational support, supervisory backing, reward and recognition systems, and aspects of procedural and distributive justice.

Research indicates that various factors significantly influence employee engagement, with committed employees demonstrating greater job satisfaction and enhanced involvement with their organization This research model has been widely utilized in both recent and upcoming studies.

To boost employee engagement, it is essential for administrators to understand the diverse needs of their employees and develop strategies to address them, as outlined by Maslow in 1943 These needs are structured in a hierarchical order, emphasizing the importance of fulfilling each level to foster a motivated and committed workforce.

Physiological needs are essential demands for both individuals and employees, serving as the foundation for survival Meeting these basic needs is crucial, as it motivates individuals to work and strive for a sustainable life (Maslow, 1943).

After basic needs are met, individuals seek higher-level safety needs, which include the desire for stability and protection from threats to their property, work, health, life, and family This need for safety encompasses both physical and psychological dimensions, highlighting its importance in overall well-being (Maslow, 1943).

Love and belonging needs encompass the human desire for love, acceptance, and a sense of belonging within groups or organizations As inherently social beings, individuals seek connection, attention, care, cooperation, and meaningful interactions with others, highlighting the fundamental importance of these needs in fostering relationships and community (Maslow, 1943).

Esteem needs: Once social needs are fulfilled, individuals seek acknowledgment and respect from others, as well as self-esteem This set of needs involves achieving aspects

14 such as power, prestige, status, and self-assurance Earning respect from others reflects a desire to make a significant contribution to society (Maslow, 1943)

Self-actualization needs: This involves the need for personal potential realization, self-fulfillment, the pursuit of personal growth, and peak experiences

Literature review

Human resource attrition remains a significant challenge for businesses, as no definitive solution has emerged to address the persistent issues of talent drain and employee disconnection Factors affecting employee engagement fluctuate over time and across different contexts, reflecting the complexities of modern life and evolving individual needs As a result, the determinants of employee engagement are in constant flux, prompting ongoing exploration by scientists and researchers This enduring interest in employee engagement continues to captivate administrators, highlighting its importance in organizational success.

In recent decades, numerous researchers worldwide have delved into theories concerning the extent of employee engagement with organizations, employing diverse

15 models and approaches The topic of “employee engagement” has garnered significant attention and investigation over the years such as:

In their 2013 study, "Job Satisfaction and Organizational Commitment in the Public Sector in Shkodër," Suma and Lesha assessed the job satisfaction and organizational commitment of 160 public sector employees in Shkodër, Albania The research identified five key factors influencing work satisfaction and organizational engagement: the nature of the work, managerial support, salary, relationships with colleagues, and opportunities for promotion The study highlighted the crucial role that the work environment and the dynamics between managers and colleagues play in shaping employee satisfaction and commitment.

“employee engagement within the organization” Moreover, it revealed a significant relationship between job satisfaction and organizational commitment (Suma and Lesha,

Figure 2.4 Jo satisfa tion and organi ational ommitment in the pu li se tor in

A study at Cornell University introduced job descriptive indexes to evaluate job satisfaction, focusing on five key factors: work itself, salary, promotion opportunities, colleagues, and supervision (Smith, Kendall, & Hulin, 1969) Over the past fifty years, researchers have refined this model, utilizing techniques like Likert scale questionnaires to assess workers' perceptions Additionally, modifications have streamlined the original JDI by reducing the number of questions, thereby improving its practicality and effectiveness.

Figure 2.5 Job Descriptive Index (JDI) of Smith, Kendall and Hulin (1969)

In their 2013 study, "Employee Engagement at Neyveli Lignite Company," Kumaran et al aimed to identify the factors influencing organizational commitment and evaluate the level of commitment among employees at Neyveli Lignite Company The research, which surveyed 150 randomly selected employees, highlighted three critical factors that affect employee engagement: training and development, work-life balance, and empowerment.

Figure 2.6 Employee engagement at Neyveli Lignite company by Kumaran et al

In the study "Examining the factors that affect employee engagement: A study of Malaysia's financial sector" by Raida Abu Bakar (2013), quantitative research methods were employed with a sample of 278 employees to identify key factors influencing employee engagement The findings revealed that leadership behavior significantly impacts employee engagement, with operational factors following closely behind.

17 related to work organization, with religious influence having the least effect on engagement (Raida Abu Bakar, 2013)

Figure 2.7 “Understanding the factors affecting employee engagement – a study of the financial sector in Malaysia” by (Raida Abu Bakar, 2013)

This research provides a solid scientific basis for financial sector leaders to better understand employee needs and develop strategies to improve satisfaction and engagement However, it is important to recognize its limitations, including a small sample size confined to the financial industry, cultural variations, and regional beliefs that may affect the applicability of the findings Additionally, restrictions on accessing confidential information from government organizations further limit the scope of the research.

An analysis of factors influencing employee motivation was conducted based on Herzberg's Hygiene Factors Theory, focusing on employees at the Saipa Group in Golpayegan, Iran The study, authored by Barzoki, Attafar, and Jannati in 2012, highlights the significance of hygiene factors in enhancing employee motivation within the workplace.

The research identified eight key factors influencing employee motivation, including occupational health and safety, company policies, relationships with colleagues and supervisors, working conditions, personal life, salary, and welfare benefits (Barzoki, Attafar & Jannati, 2012) Notably, salary and welfare benefits were found to have the most significant impact on motivation, while personal life also played a crucial role in shaping work motivation (Barzoki, Attafar & Jannati, 2012).

Figure 2.8 “Analyzing factors affecting employee motivation based on Herzberg's motivation theory” (Barzoki, Attafar & Jannati, 2012)

Research in the service sector analyzes employee engagement through nine critical factors: compensation, opportunities for advancement, working environment, supervision, coworker relationships, job passion, information communication, and unexpected rewards and welfare benefits.

Figure 2.9 Research in the service sector evaluate the level of engagement (Spector's,

Domestic researchers are increasingly focused on human resources and organizational commitment, engaging in numerous conferences, seminars, and scholarly works that examine the nuances of cohesion A variety of domestic studies have specifically investigated organizational commitment, highlighting its significance in the workplace.

The study titled "Employee Needs, Satisfaction, and Level of Commitment to the Organization," conducted by Tran Kim Dung in 2005, employed the JDI model alongside qualitative and quantitative methods It involved a direct survey of 500 full-time employees, followed by re-validation with 300 employees at Tan Mai Paper Joint Stock Company The research not only examined employee needs and satisfaction but also analyzed the impact of company and personal characteristics Additionally, it introduced a three-component engagement scale that measured effort, pride, and loyalty through seven observed variables, leading to significant findings regarding employee commitment.

Loyalty is influenced by the following factors:

- Factors of the job description index: training and promotion opportunities, satisfaction with the work itself, leadership

- Factors of personal characteristics: age, seniority

- Factors of organizational characteristics: employees in state-owned enterprises exhibiting higher loyalty

- Effort: work itself, leadership, salary affect the level of effort

- Proud: includes 4 main influencing factors: promotion, leadership, work itself and salary

Tran Kim Dung's 2005 research on engagement is frequently referenced in dissertations, but it is essential to tailor its findings to specific companies due to the study's broad industry focus and the unique circumstances of each organization.

The study "Employee Engagement for Khanh Hoa Tourism Company" examines employee engagement through a three-component model—effort, pride, and loyalty—while identifying new influencing factors such as organizational brand, goal compatibility, organizational support (including material, mental, and knowledge-based assistance), and job satisfaction (H.H Tuu & P.H Liem, 2012) It highlights that a strong organizational brand enhances employee pride, motivating them to work harder, although it does not directly determine employee engagement.

Job satisfaction is important, but it does not automatically lead to employee loyalty or engagement Engagement is influenced by several factors, including familiarity with job responsibilities, supportive work relationships among colleagues, effective guidance from management, and the desire to be associated with a reputable organization.

Figure 2.10 “Employee engagement for Khanh Hoa Tourism Company” (H.H Tuu &

A study titled "Factors Impact on Employee Engagement with University Degrees or Higher in Businesses in Can Tho City" analyzed interviews with 165 employees from 50 companies in Can Tho City The research aimed to identify key factors influencing employee engagement among those holding university degrees or higher.

RESEARCH METHODOLOGY

Research process

The thesis study topic process flowchart is shown in Figure 3.1 as follows:

Figure 3.1 Research thesis process flowchart

Qualitative research

A comprehensive review of literature on employee engagement reveals that various factors influence this phenomenon, which can differ significantly across organizations based on contextual elements like location and time Research consistently shows varying impacts of these factors, prompting qualitative research at Yokowo Vietnam Co., Ltd to identify and integrate relevant elements into a research model The discussion framework was developed by synthesizing and selectively adopting scales from previous studies.

The author employed a qualitative research approach, utilizing group discussions involving

The research involved 11 leadership-level employees to analyze factors affecting employee engagement and customize the assessment scale to reflect the company's actual conditions This phase was vital for evaluating expression clarity, ensuring effective idea communication, and identifying content overlaps Necessary adjustments were implemented to enhance precision and relevance throughout the research process.

The discussion outline includes 02 main parts:

Part 1: contains questions designed to investigate and validate the appropriateness of the proposed research model in Chapter 2 (Figure 2.12)

Part 2: incorporates the scales suggested by the author and remains open to feedback from discussion participants to refine and adjust the observed variables used to measure the factors impact on “employee engagement with the company”

The discussion involved the removal of redundant and inappropriate factors, along with the introduction of new elements as needed Terminology adjustments were made to improve clarity, and the discussion concluded when no additional opinions were presented A list of participating members can be found in Appendix 2.

The official scale used in this quantitative research for measuring amendments is a 5-point Likert scale, featuring response options that range from 1 to 5.

The debate conference team unanimously agreed that the key elements influencing staff engagement at Yokowo Vietnam Co., Ltd, as proposed in Chapter 2 (Section 2.5.2), are crucial and aligned with the company's current objectives The outcomes of this group discussion are detailed in Appendix 3 and Appendix 4.

Scales term for the independent variable "Work itself": 05 observed variables Scales term for the independent variable "Income": 05 observed variables

Scales for the independent variable "Promotion opportunity": 04 observed variables

Scales term for the independent variable "Working environment": 05 observed variables Scales term for the independent variable "Direct manager": 06 observed variables Scales term for the independent variable "Colleague": 05 observed variables

Scales term for the independent variable "Organization culture": 04 observed variables

Scales term for the dependent variable " Employee engagement with the organization": 08 observed variables

The study identifies seven official criteria, encompassing 34 observed variables, that participants agree significantly influence employee engagement Additionally, eight observed variables for the dependent variable were also recognized, highlighting the multifaceted nature of factors affecting employee involvement.

The qualitative research findings led to the incorporation of personal characteristic variables—including age, gender, education, seniority, position/rank, working status, and income—into the development of an official survey questionnaire for quantitative research, as detailed in Table 3.1.

Quantitative research

This study utilized a combination of convenience and stratified sampling methods to select participants, prioritizing accessibility and respondents' willingness to complete the questionnaire This approach not only facilitated timely data collection but also reduced costs for the researcher The adoption of stratified sampling was particularly beneficial due to its high statistical efficiency.

Secondly, concerning the sample size: previous research on size of research sample has calculate and verify with various topic researchers

According to the researched topic, in case the occupant is undersized and well- defined., this under formula will be used (Yamane, 1967; Rao, 1985):

Where: n = sample size, N = population size, e = margin of error

According to Tabachnick and Fidell (2007), a reliable regression analysis requires that the sample size (n) meets the formula n ≥ 50 + 8p, where p represents the number of independent variables in the model This guideline ensures that the sample size is adequate for accurate results in regression analysis.

2013) So, the best sample size for regression is: 50 + 8*7 = 106 samples or more

According to Hair et al (2006), the minimum sample size for research should be at least five times the number of observed variables, indicating that with 42 observed variables, a minimum sample size of 210 is required To ensure high reliability, the survey was conducted with over 250 participants, including both staff and workers The research sample consisted of current and former employees of Yokowo Co., Ltd., which has a total workforce of 3,900 employees and 410 retirees.

With an accuracy of 95%, margin of error of +5%, the equation implement as below:

To enhance the quality of the research sample, the author plans to distribute 370 paper survey questionnaires to current employees and an additional 30 to former employees, contingent on their willingness to respond This approach aims to bolster the persuasiveness of the research model Throughout the data collection process, any survey responses that do not meet the established criteria will be excluded.

So, the total number of survey questionnaires sent to feedback is: 370 + 30 = 400

After conducting group discussions to identify factors affecting employee engagement, the researcher developed a refined 7-factor model comprising 42 observed variables, including 8 specifically aimed at measuring employee engagement levels Each variable utilized a 5-level Likert scale, ranging from (1) strongly disagree to (5) strongly agree.

The research sample data was collected through employee interviews utilizing a comprehensive, pre-prepared questionnaire, which was distributed in paper format directly to employees at Yokowo Vietnam Co., Ltd.

After analyzing the survey feedback results, we screened the data by removing questionnaires with significant missing information and excluding responses that did not meet the criteria for the encoded variables The cleaned data was then entered into the SPSS 23 software for further analysis.

Measurement scales

The model's conceptual elements are evaluated using validated scales from previous studies Additionally, insights from the debate conference team were utilized to tailor the measurement specifically for the research topic of stereotypes.

3.4.1 Scales for work itself factor

The "work itself" element factor (coded WI) encompasses five observed variables that assess employee interest in their assigned tasks, the adequacy of their skills to perform those tasks, and the inspiration they derive from their work When employees are engaged in their assigned roles, it positively influences their commitment and overall engagement with the company.

Table 3.2 Encoding the work itself factors scale

(Source: from previous research and qualitative research)

The “income” factor (coded IC) includes 05 observed variables that measure the

“income of employees” that commensurate with their working capacity, income that ensures personal life, and income that ensures fairness for employees

Table 3.3 Encoding the income factors scale

(Source: from previous research and qualitative research)

3.4.3 Scale for promotion opportunity factor

The “promotion opportunity” factor (coded PO) includes 04 monitored variables evaluating the chances for personal career development and promotion within the company

Table 3.4 Encoding the “promotion opportunity” factors scale

(Source: from previous research and qualitative research)

3.4.4 Scale for “working environment” factor

The “working environment” factor (coded WE) includes 05 observed variables measuring employees' feelings about the “working environment” where they contribute

Table 3.5 Encoding the working environment factors scale

(Source: from previous research and qualitative research)

3.4.5 Scale for direct manager factor

The “direct manager” element factor (coded DM) includes 06 observed variables assessing the correlation between the direct manager and subordinate staff

Table 3.6 Encoding the direct manager factors scale

(Source: from previous research and qualitative research)

The “colleague” factor (coded CL) includes 05 observed variables measuring the

“friendliness and mutual help” between colleagues at scope of work and work place

Table 3.7 Encoding the colleague factors scale

(Source: from previous research and qualitative research)

3.4.7 Scale for organization culture factor

The “organizational culture” factor (coded OC) includes 04 observed variables measuring training, support from departments, encouraging creativity and employee autonomy at work

Table 3.8 Encoding the organization culture factors scale

(Source: from previous research and qualitative research)

3.4.8 Scale for employee engagement with the organization

Employee engagement (coded EE) includes 08 observed variables measuring the level of “employee engagement with the company.”

Table 3.9 Encoding the employee engagement scale

(Source: from previous research and qualitative research)

Data analysis techniques

In SPSS 23 software, descriptive analysis was employed to investigate the characteristics of the surveyed sample, encompassing factors such as age, gender, education, seniority, position or rank, employment status, and income.

3.5.2 Test the reliability of the scale using Cronbach's Alpha coefficient

The analysis of Cronbach's Alpha is crucial for determining which items in a questionnaire should be retained or discarded, as it aids in removing inappropriate observed variables and measurement scales (Hoang Trong and Chu Nguyen Mong Ngoc, 2008) Items with a Corrected Item-Total Correlation below 0.3 are typically excluded, while a Cronbach's Alpha coefficient of 0.6 or higher is preferred for scale selection (Nunnally & Bernsteri, 1994; Slater, 1995) A Cronbach's Alpha coefficient of 0.8 or above is regarded as indicative of a strong measurement scale, whereas a range of 0.7 to nearly 0.8 is deemed acceptable Additionally, some researchers argue that a coefficient of 0.6 or higher may be sufficient for newly developed concepts (Hoang Trong and Chu Nguyen Mong Ngoc, 2008).

A higher Cronbach's Alpha coefficient generally indicates greater reliability; however, if the coefficient exceeds 0.95, it may signal redundancy among variables, suggesting that they measure similar aspects of the research concept To tackle this redundancy, researchers employ the Corrected Item-Total Correlation to evaluate each measurement variable effectively.

In conclusion, analyzing Cronbach's Alpha coefficient requires the removal of scales with low coefficients (α < 0.6) and observed variables with a Corrected Item-Total Correlation below 0.3 from the research model It is essential to base the decision to eliminate variables not only on statistical data but also on their conceptual significance.

After eliminating unreliable variables using Cronbach's Alpha analysis, Exploratory Factor Analysis (EFA) is applied to evaluate both convergent and discriminant validity, while simultaneously consolidating the estimated parameters for each variable group.

To determine the adequacy of EFA, researcher often use Bartlett's and KMO tests:

Bartlett's test of sphericity is a statistical method used to determine if a correlation matrix is an identity matrix The test is considered statistically significant when the significance level (Sig.) is less than 0.05, indicating that the observed variables are correlated with one another.

The KMO (Kaiser-Meyer-Olkin) measure of sampling adequacy is a crucial index for evaluating the strength of correlations among measurement variables in relation to their partial correlation coefficients According to Nguyen Dinh Tho (2013), a higher KMO coefficient indicates a stronger mutual relationship between the variables For effective use of Exploratory Factor Analysis (EFA), it is essential that the KMO coefficient is 0.5 or above (KMO ≥ 0.5).

With the aid of SPSS software, we can analyze factor weights and variance extraction results to meet our research requirements Consequently, the significance of KMO and Bartlett's test becomes irrelevant, as they consistently fulfill the necessary criteria (Nguyen Dinh Tho, 2013).

In this study, we employed Principal Components Analysis (PCA) for factor extraction, utilizing the Varimax rotation method The process was halted upon extracting factors with Eigenvalues of 1 or greater, indicating the variance explained by each factor.

3.5.4 Verify the adequacy of research model

Scales that pass evaluation are included in correlation and regression analyses for hypothesis testing The correlation coefficient between employee engagement and related factors will be analyzed Following this, a multivariate linear regression analysis using the ordinary least squares (OLS) method will be performed to evaluate the relationship between the dependent variable and the engagement factors.

"employee engagement" and independent variables: (1) work itself, (2) income, (3) promotion opportunity, (4) working environment, (5) direct manager, (6) colleague, (7) organizational culture

The "Enter" variable selection method is utilized due to the presence of multiple independent variables, with the adjusted coefficient of determination R² assessing the model's adequacy To ensure the reliability of the regression equation, it is essential to verify compliance with regression assumptions These assumptions include testing for a linear relationship using a scatterplot, assessing homoscedasticity through the Spearman correlation coefficient, examining the normal distribution of residuals via histogram and P-P plot, checking the independence of residuals with the Durbin-Watson test, and evaluating multicollinearity by calculating tolerance and the variance inflation factor (VIF).

Checking for multicollinearity involves using the Variance Inflation Factor (VIF) with the stipulation that VIF ≤ 10 (Nguyen Dinh Tho, 2013)

Evaluating the linear relationship between dependent and independent variables involves analyzing the connections between residuals and the regression values of the dependent variable, while also addressing the phenomenon of heteroskedasticity (Nguyen Dinh Tho, 2013).

The evaluation includes a detailed analysis of the relationship between independent and dependent variables, focusing on the standardized coefficient (β) and significance level (Sig < 0.05) A higher β value for an independent variable signifies a more substantial influence on the dependent variable (Nguyen Dinh Tho, 2013).

RESEARCH RESULTS

Overview and current situation at Yokowo Vietnam Co., Ltd

Yokowo delivers innovative high-tech products to manufacturers globally, focusing on the rapidly evolving electronics, electrical machinery, and automotive sectors Leveraging cutting-edge technology and a robust global production network, the company has expanded its offerings to include ITS and social infrastructure solutions, as well as medical devices, enhancing public safety and comfort Committed to identifying next-generation electronics needs, Yokowo develops advanced products while enhancing its pre- and post-sales services to ensure customer success The company aims to grow steadily alongside its customers.

Yokowo's corporate philosophy centers on its mission to be a responsible company by leveraging people and technology for societal benefit, both now and in the future By valuing diverse perspectives from its workforce and drawing inspiration from global trends, Yokowo is dedicated to fostering a company that genuinely prioritizes positive contributions to society.

Yokowo is committed to evolving society and addressing pressing issues for a secure future by promoting quality talent and technologies in collaboration with stakeholders The company continuously seeks innovative ideas that challenge existing paradigms while adapting to society's changing needs With a focus on exceeding customer expectations, Yokowo invests in training its workforce to proactively enhance technologies and processes Looking ahead, they will further advance through new technology development, business model reform, and partnerships Since its inception in 1922, Yokowo has consistently refined its core technologies and created innovative products, demonstrating resilience and a shared passion for overcoming challenges.

(Company organization chart - Yokowo Vietnam Co., Ltd)

Table 4.1 Statistics on the average number of employees at Yokowo Vietnam Co., Ltd

(Source: HR Department – Yokowo Vietnam Co., Ltd)

Figure 4.1 Manpower statistic of Yokowo VietnamCo., Ltd duration 2018 - 2022

(Source: HR Department – Yokowo Vietnam Co., Ltd)

An analysis of Table 4.1 indicates a steady increase in total employees, reflecting the company's growth trajectory Despite the challenges brought on by the Covid-19 pandemic, the decline in staff numbers can be linked to both economic factors and voluntary resignations as employees pursue better job opportunities This reduction in workforce impacts the company's production efficiency and overall performance Furthermore, Figure 4.1 presents a statistical chart showing a decreasing trend in the turnover rate, likely due to enhancements in human resource management practices.

Employee compensation includes a variety of components, such as base salary, responsibility allowances, and various benefits These benefits may cover expenses like meals, gas, and telephone usage, along with performance incentives, hazard pay, and additional bonuses for holidays.

From January 2018 to November 2022, significant trends and changes can be observed in various sectors This period reflects a dynamic evolution, marked by fluctuations and developments across multiple months Key insights include shifts in market behavior, consumer preferences, and economic indicators, which collectively illustrate the broader narrative of growth and adaptation over these years.

Total Employee Turn-over rate

The 13th-month bonuses and compensation for direct production staff are based on unit price and completed work volume, which may unintentionally emphasize quantity over quality Salaries are generally determined by an employee's position, experience, and skills The Board of Directors prioritizes employee well-being through various initiatives, such as social, health, and unemployment insurance Additionally, the company enhances its welfare programs with annual resort tourism events, birthday gifts, and holiday celebrations to retain employees and boost their engagement.

The company prioritizes safety, health, and environmental concerns in its manufacturing operations To maintain compliance with occupational safety and hygiene regulations, it conducts regular training sessions and awareness campaigns.

Interactions and mutual support among departments are essential for completing tasks effectively in the workplace A friendly atmosphere encourages sociability and collaboration among employees, allowing team members to share experiences and tackle challenges together As a result, the departure of colleagues can significantly impact the psychological well-being of staff.

Direct managers, including supervisors, department heads, and directors, play a crucial role in an organization by executing tasks assigned by the Board of Directors, overseeing training, and developing future leaders They are expected to exemplify strong leadership, take responsibility for task management, and create a professional and friendly workplace However, employee dissatisfaction with direct managers can occasionally occur, highlighting the importance of effective management practices.

The company prioritizes its promotion policy by designating successor personnel in each department, fostering opportunities for employees to enhance their personal development and advance their careers when the time is right.

The company promotes a strong organizational culture by providing employees with opportunities to enhance their knowledge through training courses When employees take the initiative to enroll in management skill courses to support the company's objectives, the company nurtures a supportive learning environment Additionally, employees enjoy autonomy in their job responsibilities, encouraging personal growth and development.

46 organizing and executing their work, provided it ensures efficiency and the successful completion of assigned tasks.

Research sample statistics

A survey was conducted among employees at Yokowo Vietnam Co., Ltd., with 400 questionnaires distributed and a remarkable 93% response rate, yielding 372 completed forms After excluding responses that were incomplete or from participants with less than three years of seniority or under 25 years of age, 308 valid questionnaires remained for analysis The data was processed using SPSS 23 software, categorizing the respondents by gender, age, education, seniority, income, working status, and position/rank.

The survey results indicate that among the 308 respondents, 174 were female, representing 56.5%, while 134 were male, accounting for 43.5% The gender distribution shows a relatively balanced ratio, as the company operates in the light industrial manufacturing sector, which typically has fewer harmful factors compared to heavy industries, resulting in a higher proportion of female employees.

The survey results indicate that a significant portion of employees at Yokowo Vietnam Co., Ltd are young, with 69.8% of participants aged between 25 and 34 years old, totaling 215 individuals In contrast, those aged 35 to 45 years make up 30.2% of the respondents, amounting to 93 people.

According to the survey results, a significant portion of participants, 50.3% (155 individuals), possess a high school diploma or less In contrast, those with college degrees make up 22.1% (68 participants), while university graduates account for 27.6% (85 individuals).

In our survey, participants with less than three years of experience were excluded, resulting in a sample of 308 individuals Among these, 79 respondents, representing 25.6%, have between three to five years of experience, while 229 participants, accounting for 74.4%, have over five years of professional experience.

In a survey of 308 participants, the distribution of positions revealed that 2.6% were managers or deputy managers, 56.8% held roles as leaders, sub-leaders, or supervisors, and 40.6% were staff or workers.

Working status: among the 308 participants who responded to the survey, 9 people had retired, accounting for 2.9%; 299 people are still working for company, counted for 97.1%

Income: the quantity of survey participants with income from 05 to 10 million

VND is 52 people, accounting for 16.9% and there are 265 people (accounting for 83.1%) with income over 10 million

Table 4.2 Research survey sample statistic

(Source: Author‟s analysis from survey data)

4.3.1 Test the reliability of the scale using Cronbach's Alpha coefficient

The analysis will begin with the evaluation of Cronbach's Alpha reliability coefficient to assess the scale's consistency Variables exhibiting low Cronbach's Alpha coefficients (α < 0.6) and low Corrected Item-Total Correlation values (< 0.3) will be removed from the study Conversely, variables that meet the acceptable thresholds of Cronbach's Alpha (α ≥ 0.6) and Corrected Item-Total Correlation (≥ 0.3) will be retained for further research analysis.

Table 4.3 Results of testing the reliability of the level scale

Scale Mean if Item Deleted

Scale Variance if Item Deleted

Cron a h’s Alpha if Item Deleted

S ale “Work itself”: Cron a h’s Alpha = 0.903

S ale “Promotion opportunity”: Cron a h’s Alpha = 0.921

S ale “Working environment”: Cron a h’s Alpha = 0.901

S ale “Direct manager”: Cron a h’s Alpha = 0.725

S ale “Organization culture”: Cron a h’s Alpha = 0.916

(Source: Author‟s analysis from survey data)

In general, all the above scales have quite high “Cronbach's Alpha coefficients” (α

Out of 33 observed variables in this scale, all except DM6 exhibit a "Corrected Item-Total Correlation" greater than 0.3 Therefore, removing the DM6 variable enhances the overall reliability of the scale.

“Cronbach's Alpha coefficients” increase from 0.725 to 0.863 The remaining variables are all used for subsequent EFA analysis

4.3.2.1 Factor analysis for independent variables

The results of Cronbach's Alpha indicate that the 33 observed variables across 7 factors assessing employee engagement at Yokowo Co., Ltd meet reliability standards Consequently, these variables will undergo further evaluation using Exploratory Factor Analysis (EFA).

 Firstly, conduct the factor analysis for 33 qualified observed variables by “Kaiser – Meyer- Olkin (KMO)” measure of sampling adequacy and Barlett‟s test of sphericity

Table 4.4: Result of KMO and Barlett’s test for independent variables

(Source: Author‟s analysis from survey data)

The results of the KMO and Bartlett's test indicate a significance level of 0.000 (Sig = 0.000 < 0.05) and a KMO index of 0.789 (> 0.5), demonstrating that the observed variables in the sample are significantly correlated, making exploratory factor analysis (EFA) highly suitable.

 Secondly, conduct the Extraction method: Principal Component Analysis and Rotation method: Varimax with Kaizer Normalization

Using Principal Component Analysis (PCA) with a Varimax rotation method, seven components were extracted from 33 observed variables, demonstrating eigenvalues greater than 1 The extracted sum of squared loadings accounted for 72.058%, exceeding the 50% threshold, indicating a significant result.

The results presented in Table 4.5 indicate that the variable DM1 loads on both components 4 and 5, with a significant difference in loading factors of 0.382, which exceeds the threshold of 0.2 According to Matt C Howard (2015), if an observed variable loads on two components but the difference in loading factors is less than 0.2, it should be considered for removal Since the difference here is substantial, there is no need to eliminate this variable from the model; it will be assigned to the component with the higher loading factor, which is component 4 The rotated components matrix using the Varimax method for independent variables is illustrated in Table 4.5 below.

Table 4.5 Result of exploratory factor analysis for independent variables

52 (Source: Author‟s analysis from survey data)

The Exploratory Factor Analysis (EFA) conducted on seven independent variables identified seven distinct components, as indicated by the rotated component matrix Each element's loading coefficients for the extracted variables surpassed the 0.3 threshold, validating the acceptance of these observed variables This outcome supports the initial hypothesis, which remains unchanged following the analysis.

The results of the Cronbach's Alpha and Exploratory Factor Analysis (EFA) indicate that the scales for the independent factors demonstrate both validity and reliability Therefore, these scales align with the research concepts and will be incorporated into the subsequent quantitative research phases.

The regression model will have 07 independent variables:

Table 4.6 Independent variables of regression model

1 Work itself WI WI1, WI2, WI3, WI4, WI5

2 Income IC IC1, IC2, IC3, IC4, IC5

3 Promotion opportunity PO PO1, PO2, PO3, PO4

4 Working environment WE WE1, WE2, WE3, WE4, WE5

5 Direct manager DM DM1, DM2, DM3, DM4, DM5

6 Colleague CL CL1, CL2., CL3, CL4, CL5

7 Organization culture OC OC1, OC2, OC3, OC4

The independent variables will be assigned the average value of their corresponding observed variables for use in the subsequent analysis

4.3.2.2 Factor analysis for dependent variable

 Firstly, conduct the data analysis for 08 qualified observed variables by “Kaiser –

Meyer- Olkin (KMO)” measure of sampling adequacy and Barlett‟s test of sphericity

Table 4.7: Result of KMO and Barlett’s test for dependent variable

(Source: Author‟s analysis from survey data)

The results of the KMO and Bartlett's test indicate a significance level of 0.000 (Sig = 0.000 < 0.05) and a KMO value of 0.857 (> 0.5), demonstrating that the observed variables in the sample are significantly correlated Therefore, conducting exploratory factor analysis (EFA) is deemed highly appropriate.

 Secondly, conduct the Extraction method: Principal Component Analysis and Rotation method: Varimax with Kaizer Normalization

Table 4.8 Result of exploratory factor analysis for dependent variables

At the result of EFA with Extraction method PCA and Rotation method Varimax,

Correlation and regression analysis

Before conducting regression analysis, a Pearson correlation analysis will be performed to evaluate the strength of the linear relationship between the variables This analysis treats all variables equally, without distinguishing between independent and dependent variables However, significant correlations may indicate the potential for further exploration in regression analysis.

55 exist between variables, caution is warranted regarding the issue of multicollinearity subsequent to regression analysis

Table 4.9 Result of correlation analysis

(Source: Author‟s analysis from survey data)

The results in Table 4.9 show that most significance values (Sig < 0.05) are notably low, indicating that the correlation coefficients are statistically significant and suitable for regression analysis This correlation analysis provides initial insights, demonstrating a positive relationship between the independent and dependent variables To accurately validate the impact of these variables, it is essential to apply regression analysis.

A linear correlation analysis was conducted to assess the factors influencing employee engagement within the organization To validate the impact of these variables, regression analysis was employed, confirming the relationships between the identified factors and their effect on employee engagement.

A linear regression analysis was conducted to assess the relationship between various factors—Work itself (WI), Income (IC), Promotion Opportunities (PO), Working Environment (WE), Direct Management (DM), Colleagues (CL), and Organizational Culture (OC)—and Employee Engagement (EE) within the organization In this analysis, the factors were treated as independent variables, while Employee Engagement served as the dependent variable.

4.4.2.1 Test the compatibility of the model

Table 4.10 reveals that the adjusted R Square (R²) is 0.607, indicating that 60.7% of the variation in employee engagement (EE) within the organization can be attributed to seven independent variables: work involvement (WI), intrinsic commitment (IC), performance orientation (PO), work environment (WE), decision-making (DM), communication level (CL), and organizational culture (OC).

The F-test conducted in the ANOVA analysis confirms the compatibility of the proposed linear regression model with the actual data, as indicated by an F value with a significance level (Sig.) of 0.000, which is less than the 0.05 threshold This result demonstrates that the included variables are statistically significant at the 5% significance level.

Table 4.11 Analysis of variance ANOVA a

(Source: Author‟s analysis from survey data)

Figure 4.2 Frequency histogram of the standardized residual

(Source: Author‟s analysis from survey data)

The analysis of the frequency histogram for the standardized residuals, as shown in Figure 4.2, indicates an approximately normal distribution The mean is 3.10E-14, which is close to zero, while the standard deviation is 0.989, indicating it is near one.

Consequently, it can be affirmed that the normal distribution assumption of the residuals remains unviolated

The P-P plot, illustrated in Figure 4.3, displays a histogram of standardized residuals, indicating that the residual points are randomly distributed around the diagonal line, which supports the assumption of a normal distribution of standardized residuals.

Figure 4.3 P-P plot histogram of the standardized residual

(Source: Author‟s analysis from survey data)

4.4.2.3 Test the independence of residuals

Upon reviewing the scatter plot (Figure 4.4), it is evident that the points are evenly dispersed, confirming that the assumption of constant variance in the regression model holds

The results of the Durbin-Watson test, shown in Table 4.10, indicate a value of d = 1.412, which falls within the range of 1 to 3 This suggests that there is no autocorrelation present in the model, allowing us to conclude that the residuals are independent and exhibit no correlation with one another.

The results of these tests collectively confirm that the assumptions of the linear regression function are satisfied, validating the suitability of the proposed regression model

(Source: Author‟s analysis from survey data)

As per the information presented in table 4.12, the “Variance Inflation Factor (VIF)” attains a maximum value of 2.089 (< 10), indicating that the “independent

The analysis indicates that the 60 variables considered are not closely interrelated, which means that multicollinearity is not present According to Hair et al (2009), a Variance Inflation Factor (VIF) exceeding 10 indicates significant multicollinearity that necessitates correction Consequently, the relationships among the independent variables do not substantially impact the explanatory power of the regression model.

The statistical analysis of regression coefficients indicates that five independent variables—Work Incentives (WI), Income (IC), Direct Manager (DM), Participation Opportunities (PO), and Organizational Culture (OC)—positively influence Employee Engagement (EE), as evidenced by their positive standardized coefficients (β) and statistical significance (Sig < 0.05) Among these, Income (IC) has the strongest impact on EE with a coefficient of β = 0.626, followed by Direct Manager (DM) with β = 0.242, highlighting the varying levels of influence these factors have on employee engagement within the organization.

“Work itself, WI” (β3 = 0,237), factor “Promotion opportunity, PO” (β 4 = 0,131), and has the lowest impact is factor “Organization culture, OC” (β 5 = 0,093) Two remaining factor

The factors of "working environment" and "colleague" do not significantly impact employee engagement, as indicated by a significance level greater than 0.05 Consequently, hypothesis 4 (H4), which posits that "the working environment influences employees' engagement with the organization," has been rejected Nonetheless, practical experience suggests that a negative working environment can adversely affect employee engagement.

A psychologically toxic work environment can diminish employees' long-term commitment, prompting them to look for opportunities elsewhere However, the findings of this thesis reveal that this hypothesis does not significantly impact employee engagement To clarify this contradiction, the author proposes that potential errors or inaccuracies in the initial survey data may have compromised its reliability, contrary to the author's original expectations.

Thus, hypotheses H1, H2, H3, H5, H7 are all accepted at 95% of reliability This shows that income, direct manager, work itself, promotion opportunity, organizational culture made the employee engagement at Yokowo Co., Ltd

Table 4.12 Statistical analysis of regression coefficients a

(Source: Author‟s analysis from survey data)

The results of testing the research hypotheses are summarized in table 4.13 as follows:

Table 4.13 Summary results of testing the research hypotheses

(Source: Author‟s compilation) The unstandardized regression equation has the form:

EE = 0,298 + 0,695*IC + 0,288*DM + 0,253*WI + 0,115*PO + 0,093*OC + 𝜀

The standardized regression equation has the form:

EE = 0,626*IC + 0,242*DM + 0,237*WI + 0,131*PO + 0,093*OC + 𝜀

The data analysis indicates that the theoretical model is consistent with the research findings, resulting in the acceptance of five hypotheses (H1, H2, H3, H5, and H7) Conversely, hypotheses H4 and H6 were rejected due to insufficient reliability.

The results of testing the model with the standardized (β) coefficient and the hypotheses are illustrated as follows:

Figure 4.5 Result of research model

Test the difference between the characters

To examine differences in “employee engagement with the organization” based on personal characteristics, an independent sample T-test and a One-Way ANOVA test were conducted

4.5.1 Test the Employee Engagement with the organization by gender

To test the difference of employee engagement with the organization in men and women, the independent sample T-test was used

Table 4.14 Independent sample T-test by gender

(Source: Author‟s analysis from survey data)

Table 4.15 Descriptive statistic by gender

The F test results indicate a significance value of 0.493, which is greater than the 0.05 threshold, allowing us to accept the hypothesis that the variances of the two samples are equal Consequently, the t-test yielded a significance value of 0.547, also exceeding 0.05, which suggests that there is no significant difference between the average organizational engagement of male and female employees Thus, it can be concluded that, at a 95% confidence level, there is no statistically meaningful difference in organizational engagement between genders.

4.5.2 Test the Employee Engagement with the organization by age

To test the difference of employee engagement with the organization by age, the One-way ANOVA test was used

Table 4.16 Test of homogeneity of variances for age

Levene Statistic df1 df2 Sig

(Source: Author‟s analysis from survey data)

The Levene's test produced a significance value of 0.356, which is greater than the 0.05 threshold, suggesting that the variance in employee engagement among different age groups is not significantly different Therefore, there is no notable variance by age, allowing for the application of the ANOVA analysis results.

Table 4.17 One-Way ANOVA test for age

(Source: Author‟s analysis from survey data) The ANOVA test results indicate a Sig value of 0.823, which is greater than 0.05 (Sig = 0.823 > 0.05) demonstrating that there is no statistically significant difference in

“employee engagement” across different age groups

4.5.3 Test the “Employee Engagement with the organization” by academic level

To test the difference of “employee engagement with the organization” by academic level, the One-way ANOVA test was used

Table 4.18 Test of homogeneity of variances for academic level

Levene Statistic df1 df2 Sig

(Source: Author‟s analysis from survey data)

In the Levene's test, the significance value (Sig.) of 0.178 exceeds the 0.05 threshold (Sig.= 0.178 > 0.05), indicating that there is no significant variance in

“Employee Engagement” across different academic levels This suggests that the variance in engagement does not differ by education level Consequently, the results from the ANOVA analysis will be utilized

Table 4.19 One-Way ANOVA test for academic level

Sum of Squares df Mean Square F Sig

The ANOVA test results reveal a significance value of 0.441, exceeding the 0.05 threshold, indicating that there is no statistically significant difference in employee engagement levels within the organization based on varying academic qualifications.

4.5.4 Test the Employee Engagement with the organization by seniority

To assess the variation in employee engagement with the organization based on seniority, a One-way ANOVA test was employed

Table 4.20 Test of homogeneity of variances for seniority

Levene Statistic df1 df2 Sig

(Source: Author‟s analysis from survey data)

The Levene's test revealed a significance value of 0.583, surpassing the threshold of 0.05, indicating no significant variance in Employee Engagement across various seniority levels within the organization.

As a result, the findings from the ANOVA analysis will be utilized

Table 4.21 One-Way ANOVA test for seniority

Squares df Mean Square F Sig

(Source: Author‟s analysis from survey data)

The ANOVA test results showed a significance value of 0.567, exceeding the 0.05 threshold, indicating that there is no statistically significant difference in employee engagement levels across various seniority levels within the organization.

4.5.5 Test the “Employee Engagement with the organization” by position

To assess the variation in employee engagement with the organization based on position, a One-way ANOVA test was employed

Table 4.22 Test of homogeneity of variances for position

Levene Statistic df1 df2 Sig

(Source: Author‟s analysis from survey data)

The Levene's test showed a significance value of 0.563, exceeding the 0.05 threshold, which suggests that the variance in "employee engagement" among various positions is stable and does not differ significantly As a result, the findings from the analysis of variance (ANOVA) can be utilized.

Table 4.23 One-Way ANOVA test for position

Sum of Squares df Mean Square F Sig

(Source: Author‟s analysis from survey data)

The ANOVA test produced a significance value of 0.823, which is greater than 0.05 (Sig = 0.823 > 0.05), indicating that there is no statistically significant difference in employee engagement across various positions within the organization

4.5.6 Test the Employee Engagement with the organization by income

To assess the variation in employee engagement with the organization based on income, a One-way ANOVA test was employed

Table 4.24 Test of homogeneity of variances for income

Levene Statistic df1 df2 Sig

(Source: Author‟s analysis from survey data)

The Levene's test yielded a significance value of 0.923, indicating that the variance in employee engagement among various income groups is not significantly different (0.923 > 0.05) Consequently, this allows for the application of ANOVA analysis.

Table 4.25 One-Way ANOVA test for income

Sum of Squares df Mean Square F Sig

The ANOVA test results revealed a significance value of 0.317, exceeding the threshold of 0.05, which suggests that there is no statistically significant difference in employee engagement among different income levels within the organization.

Discussion

Research findings reveal five key factors influencing employee engagement at Yokowo Vietnam Co., Ltd, with varying levels of impact for each factor detailed in the accompanying table.

Table 4.26 Influence level of factors to engagement of employee

Income is the primary factor influencing employee engagement at Yokowo Vietnam Co., Ltd An analysis reveals that the compensation offered to employees plays a crucial role in fostering their commitment and satisfaction within the company.

In the context of increasing living costs, the income offered by Yokowo Vietnam Co., Ltd is considered only marginally adequate for employees' sustenance Workers aim to earn not just to meet their basic needs but also to enhance their social status and recognize their achievements As a result, income continues to be a significant factor for employees, influencing their views on the adequacy of compensation provided by the company.

The "Direct manager" is a crucial factor influencing employee engagement within an organization, as they have a deep understanding of their team members' strengths, weaknesses, and career goals Direct managers are instrumental in shaping training and promotion policies, but when they blur the lines between personal and professional relationships, it can lead to employee dissatisfaction and increased turnover At Yokowo Vietnam Co., Ltd, some direct managers have fallen short of employee expectations, creating a challenging work environment that negatively impacts overall employee engagement.

The third impact factor is "Work itself", this element significantly contributes to fostering employee engagement within the company Employees have a clear understanding of their job responsibilities, facilitated by:

- Well-defined job descriptions corresponding to each position and job title

- A meticulous recruitment process that prioritizes professional qualifications and experience to ensure employees are well-suited for their assigned roles

- The KPI system, which systematically evaluates each employee's capabilities through comprehensive assessments of completed tasks, preventing any misjudgments regarding their competence and contributions

Yokowo Co., Ltd, a leading manufacturer, offers employees the chance to work with a modern production line and a wide array of customer partnerships This environment allows staff to interact with diverse clients and gain practical experience in advanced production techniques, significantly enriching their work experience and making their roles more engaging and fulfilling.

Promotion opportunities significantly influence employee engagement at Yokowo Vietnam Co., Ltd As a prominent Japanese company in the manufacturing industry, Yokowo implements carefully structured promotion policies that enhance employee motivation and commitment.

Yokowo Vietnam Co., Ltd, influenced by its Japanese parent company's cultural ethos, predominantly features Japanese professionals in senior managerial roles However, middle management positions are available to employees, with promotional opportunities typically arising when a direct manager advances or changes roles The company upholds a strong succession planning policy, encouraging employees to strive for excellence and stand out in their efforts.

Organizational culture plays a crucial role in employee engagement, albeit with a lesser impact compared to other factors Yokowo Vietnam Co., Ltd actively promotes a supportive environment for skill and knowledge enhancement while engaging in social and community initiatives These cultural values help shape a strong work ethic and foster employee pride in the company A well-defined set of corporate cultural values serves as a unifying force, encouraging long-term commitment and loyalty among employees.

Table 4.27 Descriptive statistic of the factor Employee Engagement

Yokowo Vietnam Co., Ltd reports an average employee engagement score of 4.06, reflecting a high level of engagement among its workforce This positive engagement is largely attributed to employee satisfaction with the company's offerings and working conditions.

CONCLUSION AND MANAGERIAL IMPLICATIONS PROPOSAL