Research Problem In any Company or Organization, employee engagement parts inmaintaining and enhancing the company’s performance.. Dueto the reasons and realities, author has chosen the
Research Problem
Employee engagement plays a crucial role in boosting a company's performance by improving job satisfaction and fostering a positive work environment In today's increasingly competitive labor market, employees have greater opportunities to choose their workplaces, making engagement even more essential for organizations looking to attract and retain talent (Markos & Sridevi, 2010).
In 2019, Vietnam signed the EVFTA agreement, leading to a surge in foreign investment from multinational corporations attracted by sustainable development strategies and professional working environments These companies offer clear advancement opportunities and appealing benefits, drawing workers who seek not only higher incomes but also a chance to enhance their skills and expand their professional networks.
The COVID-19 pandemic has significantly affected Vietnam's labor market, leading to a substantial number of workers leaving their jobs (Vietnam Social Insurance, 2020) Economic disruptions caused by the pandemic forced many organizations to change their operational methods, resulting in workforce reductions and a rise in unemployment rates.
The impact of the pandemic has profoundly influenced both physical and mental health, leading many individuals to reevaluate their priorities and seek work-life balance by leaving their jobs (Pham Minh Ha, 2021) This shift has caused significant fluctuations in the labor market, creating challenges for businesses in retaining skilled talent Melody Decor faces similar difficulties in keeping its talented employees.
Each year, a big number of employees choose to resign after received then full salaiy and bonuses There are many reasons for this:
Employees typically desire to work under effective leaders who support their personal and professional growth However, as time passes, many find that their current leader is not a good fit and contributes to unnecessary stress in the workplace (Indeed, 2024).
Many employees often feel suffocated and uncomfortable after spending a significant amount of time in an organization They may struggle to identify their role within the company, face challenges in connecting with colleagues, and discover that the corporate culture no longer aligns with their personal values (Robert Walters, 2023).
Many employees recognize a limited potential for career growth and advancement, as highlighted by Adriana Rasyiqah (2024) It is essential for employees to feel that their work contributes positively to their future development.
Employees frequently leave their organizations due to factors like overwhelming workloads that negatively impact their work-life balance Moreover, insufficient benefits can compel them to explore new career opportunities (Yamamoto, 2011).
Employees often wait longer to receive their 13th-month salary, as highlighted by Vietnamworks’ 2015 statistics, which show that the job market is particularly vibrant in the early months of the year During this time, many employees actively seek new job opportunities and better work environments.
To address the rising trend of employee resignations, companies are implementing measures like enhancing salaries and benefits However, these actions have not effectively differentiated their offerings or boosted employee engagement (Timsina, 2024; Mamorsky, 2024).
During my tenure at Melody Decor Company Limited, I observed a significant lack of employee job engagement, as evidenced by preliminary statistics showing the number of employees hired versus those who left the company.
Table 1: Preliminary statistical table of the number of employees are hired and left '
(Source: Author compiled from the Human Resources Department at Melody Decor Co., Ltd.)
Statistic on total employee numbers of Melody Decor Company limited:
• Construction department: 55 employees hired, 25 employees left;
• Design department: 35 employees hired, 15 employees left;
• Sales department: 60 employees hired, 18 employees left.
It is easy to realize that employee recruitment and resignation are occurring continuously during the first 06 months of the year According to (Batt & Colvin
2011), (De Winne, Marescaux, Seis, Van Beveren & Vanormelingen, 2019), (Park,
& Shaw, 2013), continuous employee recruitment and turnover negatively impact work productivity, diminish workplace cohesion, and increase business costs ,
The author explores the topic of "Measuring the Factors Affecting Employee Engagement at Melody Decor Co., Ltd and Other Companies" to analyze key influences on job engagement within organizations This research aims to deepen the understanding of how various factors impact employee engagement while providing practical insights to enhance human resource management policies, ultimately improving employee satisfaction and work engagement.
Objectives
General Objectives
This research aims to build a model of the factors influencing employee’s
Specific Objectives
1 To test the impact of the factors on employee’s job satisfaction and engagement.
2 To examine the mediating effect of employee’s job satisfaction in the relationship between the factors (leader, salary, work enviromnent, benefits, ) within the model.
3 To evaluate the controlling role of the factor such as gender, age on the relationships within the model.
Research Questions
1 Which factors are statistically significant at the 95% confidence level in influencing employee’s job satisfaction and engagement?
2 Does job satisfaction mediate the relationship between the factors within the research model?
3 Do gender and age affect the relationship between the factors in the research model with 95% reliability?
Research Subjects
Measuring the factors impact on employee’s engagement in the office interior design and construction mdustry at small and medium enterprises in Ho Chi Minh City.
All employees at Melody Decor Company Limited, as well as those from Paris Interior Decoration Architecture Design, Office Return Company Limited, and Builditect Design and Construction, are based in Ho Chi Minh City This workforce excludes temporary employees, interns, part-time staff, and individuals who have been employed for less than one year.
Scope of the Study
Spatial Scope
This research was conducted at:
• Melody Decor Company Limited, 7th Floor, Melody Building, 1 Nguyen Van Dau Street, Ward 5, Phu Nhuan District, Ho Chi Minli City, Vietnam;
• Paris Interior Decoration Architecture Design Company Limited, 1st Floor, Packsimex Building, 52 Dong Du Street, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam;
• Office Return Company Limited, 1A Nguyen Van Dau Street, Ward 5, Phu Nhuan District, Ho Chi Minh City, Vietnam;
• Builditect Design and Construction Company Limited, 1st Floor, Sabay Tower, 11A Hong Ha Street, Ward 2, Tan Binh District, Ho Chi Minh City, Vietnam.
This study focuses on Companies Melody Decor, Paris Interior Decoration, Architecture Design, Office Return Company Limited, and Builditect Design and Construction, all founded by Mr Vo Van Hoang Phuong Their shared strategic direction and corporate culture create a consistent research environment, allowing for effective analysis and comparison of factors affecting employee engagement Additionally, Mr Vo Van Hoang Phuong's role as the founder facilitates efficient access to management levels and comprehensive data collection, ensuring the reliability and feasibility of the research outcomes.
Time Scope
This research was conducted from 01/08/2024 to 18/09/2024.
Content Scope
This thesis focuses on analyzing the factors to affect employee engagement and the documents related to employee engagement.
Materials and Methods
The author initiated qualitative research by defining research objectives and reviewing pertinent literature to create a research model and preliminary questionnaire Following this, discussions were held with two human resources specialists from Nguyen Tat Thanh University, and surveys were conducted with the Director and Head of Human Resources at Melody Decor Company Limited The findings from these surveys informed the proposed research model and measurement scales.
The author conducted quantitative research by refining the preliminary questionnaire based on initial interviews and then administering the final survey to a sample of 400 participants Following data collection, the author utilized SPSS and AMOS software for comprehensive data analysis.
Structure of the Research
In addition to the table of contents, list of abbreviations, tables, figures, and references, the structure of the thesis consists of five chapters as follows:
Introduction: (Author outlines the rationale for choosing the topic, research objectives, research questions, research subjects, surveyed entities and subjects, research scope, methodology, and thesis structure).
Chapter 1: Theoretical framework (Presents a detailed review of relevant theories and previous studies, forming the basis for the development of the research model and hypotheses).
Chapter 2 delves into the study framework and analysis of research results, outlining key aspects of the company, including its information, structure, and business performance The author details the research process and methods employed, which encompass qualitative research, preliminary quantitative research, and official quantitative research Following this, the chapter presents the findings from both preliminary and official quantitative analyses, discusses these results, and compares them with the proposed hypotheses and existing literature.
Chapter 3: Conclusion and managerial implications (summarize the key findings and provides managerial implications aimed at improving employee engagement with their work).
In the first chapter, the author establishes both the practical and theoretical contexts, laying the groundwork for the research objectives The subsequent chapter will delve into more specific content related to these objectives.
Theoretical Framework
Employee’s Job Engagement
Employee engagement refers to the level of commitment an employee has towards their organization, as defined by Bridger (2015) Engaged employees seek a long-term connection with their workplace and are motivated to contribute to its growth They find passion in their roles, which drives them to perform their tasks with enthusiasm As a result, these individuals are dedicated to working hard and willingly commit themselves to achieving the organization’s objectives.
Employee engagement goes beyond mere job satisfaction; it encompasses an emotional and intellectual connection to the organization, fostering a sense of value and motivation among employees This deep engagement can significantly enhance work performance, improve morale, and decrease turnover rates, ultimately contributing to the achievement of organizational goals.
Employee engagement, as defined in Kruse's 2012 book, goes beyond mere job satisfaction; it represents the emotional commitment an employee has to their organization and its objectives This level of commitment encourages employees to not only fulfill their tasks but also to exert additional effort, enhance their effectiveness, and maintain a long-term connection with the company Consequently, fostering employee engagement results in improved work performance and lower turnover rates.
Employee’s Job Satisfaction 10 1.3 The Relationship Between employee’s job Satisfaction and Engagement 11
Since the 1910s, the significance of employee job satisfaction has garnered attention from researchers, who refined their methods by the 1930s to assess it more effectively Despite this progress, a universal definition of job satisfaction remains elusive due to its complex nature and the individual factors that influence it.
To date, there are many definitions of employee job satisfaction that we can refer to, such as:
Author Spector (1997) Show that Measuring employee job satisfaction, let measure the employee’s emotional response to a specific job.
Employee job satisfaction refers to the positive feelings individuals have about their work, stemming from the belief that their tasks are meaningful and valuable.
According to Ostroff & Cheri (1992), job-related factors such as challenges, fair rewards, a positive work environment, and support from co-workers significantly influence the fulfillment of individual needs, ultimately contributing to higher job satisfaction.
According to Schneider & Snyder (1975), employees experience varying levels of job satisfaction based on their individual job experiences and the outcomes or benefits they receive from their roles.
According to Armstrong (2006), job satisfaction refers to the feelings and attitudes employees have towards their work Positive feelings and attitudes indicate job satisfaction, while negative feelings and attitudes lead to dissatisfaction.
Gibson, Weiss, Dawis & Lofquist (1970) Job satisfaction is measured by three types, including: internal satisfaction, external satisfaction and combination of satisfactions.
- Internal satisfaction relates to personal feelings about one’s job, including: creativity in the job, trying to make achievement, proactivity and responsibility for the job (Spector, 1997).
- External satisfaction relates to many factors what stems from the organization, such as: career advancements, company policies, salaiy, recognition, etc (Dirani, 2009).
- Combmation satisfaction is a combination of the two types above with working conditions and Co-workers (Vondrasek, 2001).
1.3 The Relationship Between employee’s job Satisfaction and Engagement
Numerous studies indicate that employee job satisfaction significantly enhances job engagement (Jones, 2018; Vorina, Simonic & Vlasova, 2017; Anwar & Qadừ, 2017) Additionally, research suggests that employees who actively seek to engage in their work often experience increased satisfaction (Tsogtsuren).
Research indicates a strong relationship between employee engagement and job satisfaction, suggesting that one influences the other Understanding this connection is essential for fostering a productive work environment.
Maslow's hierarchy of needs, established in 1943, is a psychological framework that categorizes human needs into a structured hierarchy This model progresses from fundamental needs to more complex ones, illustrating the progression of human motivation.
Self-actualization desire to become the most that Otte can be
Esteem respect, self esteem, status, recognition, strength, freedom
Safety needs personal security, employment, resources, health, property
Physiological needs air, water, food, shelter, sleep, clothing, reproduction
Figure 1.1: Maslow's hierarchy of needs
The theory posits that an individual's needs progress to higher levels once their current needs are met According to Jonas (2016), this framework is commonly utilized by managers to boost employee motivation and strengthen job engagement.
Herzberg's two-factor theory, established in 1959 through interviews with 203 engineers and accountants in Pittsburgh, classifies the elements that affect job satisfaction and motivation into two distinct categories.
Hygiene factors encompass external elements like salary, company policies, interpersonal relationships, and working conditions While the absence of these factors can lead to employee dissatisfaction, their mere presence does not necessarily foster motivation.
Motivators in the workplace, such as recognition, responsibility, advancement, and personal growth, play a crucial role in enhancing job satisfaction and motivation While the presence of these intrinsic factors can significantly boost employee morale, their absence does not automatically lead to dissatisfaction.
While some studies, including those by Ruthankoon & Olu Ogunlana (2003) and Hur (2018), suggest that Herzberg's theory may not fully account for employee satisfaction, many scholars, such as Stello (2011) and Ghazi, Shahzada & Kiran (2013), support its relevance This underscores the importance of motivator factors in enhancing job satisfaction.
Douglas McGregor's Theory X and Theory Y, introduced in his 1960 book "The Human Side of Enterprise," form a crucial framework in human resource management and organizational behavior This theory divides managerial assumptions about employees into two opposing categories: Theory X, which views employees as inherently unmotivated, and Theory Y, which sees them as self-motivated and capable of taking responsibility.
Theory X posits that individuals are naturally lazy, unmotivated, and inclined to evade responsibility, necessitating close supervision and strict control measures to ensure productivity Managers who subscribe to this theory often rely on stringent oversight and a reward-punishment system to manage employee behavior effectively.
Review of Literature
1.5.1 Review of related to employee’s job satisfaction literature
Kabir and Parvin (2011) performed a comprehensive study on employee job satisfaction within the pharmaceutical sector Their research identified key factors influencing job satisfaction, highlighting significant determinants such as salary, the nature of the work, and relationships with leaders and colleagues.
Diagram 1 1: The research model of Kabir & Parvin, (2011)
A study by Dhanapal, Subramaiiiam, and Vashu (2013) investigated job satisfaction among employees in the academic sector, highlighting the differences in satisfaction levels based on gender and generational factors The research examined key elements influencing job satisfaction, including workload, compensation, age, gender, education, work environment, job security, and leadership, drawing on earlier studies by DeVaney & Chen (2003) and Miller (1980).
Diagì-am 1 2: The research model of Dhanapaĩ, Subramaniam & Tasha, (2013)
Gazioglu & Tansei, (2006), this study examines 04 distinct measure of job satisfaction and their relationship to various personal and job-related factors
Data is collected from 28,240 British employee surveys in the 1997 work place employee relations survey The research introduces 04 factors include: job influence, pay, sense of achievement and respect from supervisors.
Diagram 1 3: The research model of Gazioglu & Tansel (2006)
According to Dung (2013), the Respecting from supervisor factor belongs to supportive leadership style Therefore, author is going to integrate this factor into Leader factor.
In a study conducted by Kathure (2018) at Horizon Contact Centre, the researcher explored the factors influencing employee job satisfaction, focusing on aspects such as salary, training programs, working conditions, and empowerment Utilizing stratified sampling methods, the research surveyed a representative group of employees in Nahobi to gain insights into these key elements affecting job satisfaction.
Diagjam 1 4: The research model ofKathure (2018)
The research revealed that employee satisfaction with their income significantly diminishes the impact of working conditions on overall job satisfaction Conversely, empowerment and training programs emerged as important factors, even though their influence was comparatively less pronounced.
According to Khanh (2020) identified factors that influence job satisfaction include: Job itself, opportunity to training and development, leader, co-worker, salary.
Diagram 1 5: The research model of Khanh (2020)
A study was conducted to explore the factors affecting employee job satisfaction in public organizations in Tanzania, specifically at the Tanzania Electric Supply Company (TANESCO) Limited The research utilized various data collection methods, including questionnaires, oral interviews, and observations, successfully distributing questionnaires to 210 respondents and achieving a remarkable 100% response rate (Kafyeta, 2015).
A recent study found that employee satisfaction is largely influenced by several key factors, including job incentives, opportunities for training and development, the work environment, the quality of leadership, involvement in decision-making, and fairness in promotions.
Diagram J 6: The research model ofKafyeta (2015).
Oli the word of author of above study defines factor ‘‘managerial leadership” as a ‘‘way to impact on inferiors in order to get better productivity”
I will integrate this factor into “leader”.
From the standpoint of author of above research, “leadership quality ” is mean that “good leadership” Therefore, author will integrate this factor into
Hee, Shi, Kowatig, Fei, and Ping (2020) investigate the factors influencing job satisfaction among academic staff at a private institution in Malaysia, focusing on elements that lead to improved ratings in the Malaysian Quality Evaluation System for Private Colleges (MyQUEST) Their research is grounded in established theories of job satisfaction.
Motivation-Hygiene, Maslow’s Hierarchy of Needs, and Leader-Member
Exchange (LMX) This research explores the impact of factors such as: salaiy, work environment, leader, workload on employee’s job satisfaction.
Diagram 1 7: The research model of Hee, Shi, Kowang, Fei & Ping
In 2020, a study focused on measuring job satisfaction among IT professionals, highlighting its importance in reducing turnover, enhancing job performance, increasing engagement, and decreasing absenteeism The research gathered data from 326 IT professionals in systems development to identify the key factors influencing their job satisfaction.
The research indicated that Co-worker, Job itself, leader, career advancement, pay are positively related to employee’s job satisfaction (Nhung & Linh, 2021).
Diagj-am 1 8: The research model of Nhung & Linh (2021)
A study conducted by OthIlian, Kainarohini, Maan, and Kaar Maan (2018) assessed job satisfaction at Asia Brands Berhad, identifying key factors that contribute to employee satisfaction and motivation Out of 180 distributed questionnaires, 150 were returned, yielding 136 valid responses The findings revealed that benefits, work environment, and leadership significantly influence job satisfaction within the organization.
Diagram 1 9: Die research model of Othman, Kamarohim, Ma an &
Wang (2024) highlights the essential connection between employee job satisfaction and the long-term success of businesses A thorough literature review reveals that various factors significantly impact employee job satisfaction, underscoring its importance for organizational performance.
Diagram 1 10: The research model of Wang (2024)
2.5 2 Review of Related to employee’s job engagement literature.
According to Study by Nguyen Tat Thanh University published ill June
2023 by author Huynh Minh Tani.
A recent study examined the factors affecting employee job engagement and work performance in companies located in Ho Chi Minh City Utilizing a significant sample size, over 450 survey questionnaires were distributed, resulting in 400 valid responses after filtering The data was analyzed using the SPSS tool to derive meaningful insights.
The study identified several key factors influencing employee job engagement and overall business performance, including supervisor-related elements with five observed variables, training and career advancement opportunities with five observed variables, benefits comprising three observed variables, salary considerations with four observed variables, and work environment factors with five observed variables.
05 observed variables (Huynh Minh Tam, 2023).
Diagram 1 11: The research model of Huynh Minh Tam (2023)
In 2019, Nguyen Thi Diem conducted a study on the factors affecting employee job engagement and satisfaction at Can Tho Radio and Television Station The research involved collecting data through interviews with 188 participants, followed by a thorough analysis of the gathered information.
This research highlights key factors that influence employee job engagement and satisfaction, such as leadership and colleague relationships, the work environment, professional knowledge, salary and benefits, job characteristics, and opportunities for training and career advancement.
Diagram 1 12: The research model of Nguyen Thi Diem (2019)
Two Vietnamese authors also conducted research oil the factors influencing employee’s job engagement on a nonprofit organization (Nguyen &
According to Pham (2020), effective job design is influenced by key factors including job fit, job challenge, and job significance Additionally, work-life balance is determined by organizational support and workload management.
Notions related to the model
According to Tables 1.1 and 1.2, the "Leader" factor significantly influences employee job engagement, with 90% of job engagement studies and 90% of job satisfaction studies supporting this finding Additionally, the "Salary" factor is also crucial, receiving unanimous agreement from all job engagement studies and 80% agreement from job satisfaction studies Furthermore, the "Work Environment" factor is acknowledged by many researchers, with 80% of job engagement studies and 60% of job satisfaction studies recognizing its importance.
Career advancement significantly influences job engagement, with studies showing a strong correlation of 9 out of 10, while only 4 out of 10 indicate job satisfaction Training also plays a role, reflected in 7 out of 10 studies supporting job engagement, but only 3 out of 10 for job satisfaction The presence of supportive colleagues is similarly linked, with 7 out of 10 studies agreeing on job engagement and just 3 out of 10 on job satisfaction Lastly, benefits are noted in 5 out of 10 studies for job engagement, but only 1 out of 10 for job satisfaction.
Several factors significantly influence employee job engagement In this study, I focus on seven specific factors that are widely recognized and agreed upon for inclusion in the research model.
05 job engagement studies agreeing and ranked top hi job satisfaction studies This level of consensus can consolidate reliability and consistency of researches from different authors.
For the other factors, although I admit these factors, the consensus of authors are less than 50%, which means that a lack of consensus in researches.
Based on preliminary statistic, the 07 factors in this study’s research model are achieved high consensus and they have a positive impact on employee’s job engagement These factors include:
1 Leader with 9/10 job engagement and 8/10 job satisfaction studies in agreement
2 Salary with 10/10 job engagement and 7/10 job satisfaction studies in agreement
3 Work environment with 8/10 job engagement and 6/10 job satisfaction studies in agreement
4 Career advancement with 9/10 job engagement and 3/10 job satisfaction studies m agreement
5 Training with 7/10 job engagement and 3/10 job satisfaction studies in agreement
6 Colleagues with 7/10 job engagement and 2/10 job satisfaction studies in agreement
7 Benefits with 5/10 job engagement and 1/10 job satisfaction studies in agreement
In Summary, author propose 07 main factors for this study include: Leader, salary, work environment, career advancement, training, colleagues and benefits.
Author showed briefly outlined factors related to this study In the next, I will clarify each factor which influence employee’s job engagement.
A leader plays a crucial role in guiding a team and managing employees directly By ensuring equitable treatment, being attentive to subordinates, and possessing a strategic vision, a leader can significantly boost employee satisfaction Demonstrating competence, effective management skills, and providing operational support further enhance this positive environment, fostering a more engaged and motivated workforce (Robbins, Stuart-Kotze, Coulter, 2002).
According to Golbeck (2015), a leader encompasses numerous distinctive characteristics; however, there are generally common traits Kafyeta (2015) and Hee, Shi, Kowang, Fei & Ping (2020) as follows:
- Good leadership requires the ability to coach and mentor team members, thereby fostering a highly capable and collaborative team envữonment.
- Trust and empowerment are critical components of leadership A competent leader strategically delegates authority, enabling employees to enhance then autonomy and develop problem-solving skills in the face of challenges.
- Establishing a positive organizational culture is essential, as leaders serve as the catalyst for unifying individuals into a cohesive entity.
- Communication proficiency is indispensable for leaders They must not only convey information effectively but also actively listen to then- associates.
- Leaders should possess a clear vision and a well-defined strategy This is the foundation for the team’s development.
- In addition, making decision quickly and effectively is a fundamental leadership skill Leaders often build strategic planning and analyst effectively They also ensure that decisions are accurate and effective.
To become an effective leader, it is essential to possess a combination of key characteristics, as the absence of any can hinder successful operations (IABM, 2024) This understanding is why I chose to focus on this factor in my study.
To measure this factor's influence on employee job engagement, author Hee, Shi, Kowang, Fei & Ping (2020) and author Kafyeta (2015) proposed the following variables:
• Leader has positive influence my job satisfaction;
• Leaders of my company set a good example.
Salaiy, as defined by Khanh (2020), refers to the monetary compensation an individual receives for their efforts and time dedicated to an organization It encompasses various components, including base salary, allowances, bonuses, commissions, and additional financial benefits (Kabir & Parvin, 2011) Furthermore, Nguyen Thi Diem (2019) emphasizes that salary is a crucial factor affecting employee satisfaction.
To measure this factor's influence on employee job engagement, author Khanh (2020); Kabừ & Parvin (2011) and Nguyen Thi Diem (2019) proposed the following variables:
• Salary is sufficient to cover living expenses;
• Salaiy is commensurate with contribution;
• Company’s salaiy is higher than the labor market average.
According to Kathure (2018), the work environment is essential for employees to effectively perform job-related tasks Kafyeta (2015) emphasizes that a conducive work environment significantly boosts employee job performance This perspective is further supported by Nguyen Thi Diem, highlighting the critical role of a positive workplace atmosphere in enhancing productivity.
In 2019, it was emphasized that organizations must create a suitable work environment for their employees Research by Kathure (2018), Nguyen Thi Diem (2019), and Kafyeta (2015) highlights the importance of the physical environment, which encompasses facilities, equipment, and overall working conditions.
To measure this factor's influence on employee job engagement, author Kathure (2018), Nguyen Thi Diem (2019), and Kafyeta (2015) proposed the following variables:
• Work envữonment has a positive influence job satisfaction;
• My work enviromnent is clean, spacious and hygienic;
• Equipment fully supports my work tasks;
• My working envứonment in company is extremely conducive.
According to Nguyen Thi Diem (2019) and Khanh (2020), career advancement serves as a developmental strategy that enables employees to progress within their organization Additionally, Cuong, Uyen, and Nhan (2022) highlight that promotion opportunities significantly influence employee job satisfaction.
Career development is constructed by organization based on the following elements (Fastdo 2024):
• The position within the organization that employee is holding;
• The organization’s human resource plans in the future;
• The employee’s goals and aspirations.
To measure this factor's influence on employee job engagement, author Cuong, Uyen & Nhan (2022); Khanh (2020) and Nguyen Thi Diem (2019) proposed the following variables:
• Career advancement has a positive influence my job satisfaction;
• My company offers me opportunity to develop career;
• My company’s promotion policy is fan’.
Training is a vital process that involves teaching individuals specific tasks, as highlighted by Zumrah, Ali & Mokhtar (2022) Effective training programs enhance employees' knowledge and skills, leading to improved job performance and personal development Additionally, research by Cuong, Uyen & Nhan (2022) indicates that training has a significant impact on employee job satisfaction.
To measure this factor's influence on employee job engagement, author Zumrah, All & Mokhtar (2022) and Cuong, Uyen & Nhan (2022) proposed the following variables:
• Training significantly impacts on my job satisfaction;
• My company offers me opportunity to develop my career;
• My professional skills have improved after receiving training.
A co-worker is defined as an individual who works alongside others in the same company or organization (Oxford Learner’s Dictionaries) The presence of supportive and collaborative colleagues significantly enhances job satisfaction by fostering harmonious relationships, minimizing conflict, and creating a friendly work environment Building trust among co-workers is essential for a positive workplace atmosphere (Zumrah, All & Mokhtar, 2022; Khanh, 2020; Nguyen Thi Diem, 2019).
To measure this factor's influence on employee job engagement, author Zumrah, All & Mokhtar (2022); Nguyen Thi Diem (2019) and Khanh (2020) proposed the following variables:
• My co-workers are ready to help;
• I and my colleagues work effectively when collaborating with each other;
• My co-workers significantly impact on job satisfaction.
According to Cuong, Uyen, and Nhan (2022), employee benefits such as insurance, retirement plans, paid leave, allowances, and gifts for special occasions serve as a secondary income source for workers These benefits demonstrate a company's commitment to its employees, ultimately aiming to boost job loyalty and engagement (Othman, Kamarohim, Maan, & Kaar Maan, 2018).
To measure this factor's influence on employee job engagement, author Cuong, Uyen & Nhan (2022) and Othman, Kamarohim, Maan & Kaar Maan
• Benefits significantly impacts on job satisfaction;
• My company pays full insurance for me;
• My company offers a better welfare policy than others.
Proposed research model
Based on the above definition and the theories are presented Author proposes the specific research model:
Diagram 1 21: The research model was proposed by the author
Leadership has a positive impact on employee’s job satisfaction directly (+)
Salary has a positive influence on employee’s job satisfaction directly (+)
H3 Work environment has a positive impact on employee’s job satisfaction directly (+)
H4 Career Advancement has a positive impact on employee’s job satisfaction directly (+) H5
Training has a positive impact on employee’s job satisfaction directly (+)
Co-worker has a positive influence on employee’s job satisfaction directly (+)
Benefits have a positive influence on employee’s job satisfaction directly (+)
Job satisfaction have a positive influence on employee’s job engagement directly (+) H9
Leadership has a positive impact on employee’s job engagement indirectly through job satisfaction (+) H10
Salary has a positive impact on employee’s job engagement indirectly through job satisfaction (+)
Work environment has a positive impact on employee’s job engagement indữectly through job satisfaction
Career advancement has a positive impact on employee’s job engagement indirectly through job satisfaction
Training has a positive impact on employee’s job engagement indirectly through job satisfaction (+)
(Source: proposed by the author)
Co-worker has a positive impact on employee’s job engagement indirectly through job satisfaction (+)
H15 Benefits have a positive influence on employee’s job engagement indirectly through job satisfaction (+)
In Chapter 1, the author conducts a comprehensive analysis of the factors influencing job satisfaction, highlighting the crucial intermediary role of satisfaction itself By synthesizing previous research, the author establishes a theoretical research model and introduces specific measurement scales for each hypothesis The measurement of the model and its associated scales will be explored in greater detail in Chapter 2.
Study framework and Analysis of research results
Company Structure
Figure 2 2: Melody Decor Co.,Ltd’s structure
The CEO of Melody Decor leads the company, overseeing all management and operations while playing a key role in defining the strategic direction The executive team consists of professionals with a strong vision, extensive management experience, and a profound knowledge of the office design and construction sector.
• Strategic planning and decision-making: Develop and decide on the strategy and vision for Melody Decor, setting long-term development goals and action plans to achieve these goals.
• Management and operations: Oversee and coordinate daily activities of the company, ensuring that all departments are functioning effectively and accordmg to the planned strategy.
Melody Decor's executive team plays a crucial role in financial management, actively participating in financial planning, budget management, and oversight This hands-on approach ensures the organization's stability and promotes sustainable growth.
• Business development: Identify, expand, and leverage new relationships with strategic partners and major clients Most of the company’s clients come from the relationships and connections of the executive team.
• Human resources management: Build and maintain a positive work environment, develop the team through leadership, training, and skill development.
• Strategic decisions: Make key strategic decisions, such as market expansion or new service development.
• Representation: Represent Melody Decor at events, conferences, and in dealings with strategic partners, major clients, and even government agencies.
The CEO of Melody Decor plays a pivotal role in both management and visionary leadership, inspiring the team to achieve their best With a clear vision and effective strategy, the executive management drives the continuous improvement and enhancement of the quality of services at Melody Decor, ensuring steady progress and growth.
At Melody Decor, this role supports the executive management in managing and operating the company.
• Daily operations support: Monitor and coordinate daily activities, ensuring smooth operations.
• Meeting organization and coordination: Schedule, prepare materials, take meeting minutes, and track the progress of tasks assigned by the executive management.
• Information and document management: Handle and store important documents, ensuring accurate information transmission.
• Project support: Assist with various projects from planning to implementation as needed.
The assistant manager plays a crucial support role by representing executive management in interactions with partners, clients, and stakeholders This position helps alleviate the workload for senior management while ensuring timely communication between the executive team and other departments, ultimately facilitating effective management processes.
The design manager at Melody Decor leads the design department, ensuring high-quality and innovative interior design solutions for office spaces This position demands a blend of creativity, sensitivity, and exceptional communication and leadership abilities.
• Team management: Lead and co-ordinate the design team, ensuring effective and creative work.
• Idea development: Explore and propose new, creative design ideas that meet client needs.
• Design review and evaluation: Ensure designs meet aesthetic and functional requhements and comply with building quality standards.
• Client interaction: Discuss and understand client design requirements, adjusting designs based on then feedback.
• Coordination with other departments: Work with the busmess and construction departments to ensure project implementation is effective and on schedule.
In summary, the design manager is responsible for ensuring the quality and creativity of design projects at Melody Decor, ensuring client satisfaction with eveiy design.
The construction manager is responsible for coordinating and supervising the entire construction process This role requires experience, management skills, observation, problem-solving abilities, and meticulousness.
• Construction planning: Develop a detailed construction plan for each project, including timelines, resources, and budget.
• Construction supervision: Continuously update, monitor, and inspect the progress of construction activities, ensuring adapt to the plan and quality standards.
• Management of contractors and workers: Coordinate and manage subcontractors and construction teams, ensuring effective work performance.
• Problem identification and resolution: Identify and address issues and risks during construction, ensuring no impact on project timelines and quality.
The construction manager is essential for the timely, budget-friendly, and high-quality completion of projects, significantly contributing to the company's reputation with clients and partners.
The sales manager at Melody Decor plays a crucial role in leading the sales team to expand the market and secure valuable client contracts This position demands strong leadership skills, in-depth market knowledge, and a thorough understanding of the company's services and target clientele to facilitate informed decision-making.
• Sales team management: Lead, train, and develop the sales team to perform effectively, achieving the company’s action plan targets.
• Performance monitoring and evaluation: Monitor and assess the company's sales activities, proactively suggesting improvements to enhance effectiveness.
The sales manager is crucial in directing and developing Melody Decor's business activities, focusing on building and maintaining relationships with strategic partners, current clients, and potential clients This approach aims to enhance client satisfaction and loyalty while ensuring sustainable growth and improving service quality, ultimately reinforcing the company's brand in the market.
Analysis of business results over the past 03 years
2.3.1 Melody Decor Co.,Ltd’s asset size.
Table 2 1: Melody Decor Co.,Ltd's asset size
IV Other short term asset 13,075 15,746 2,671 1.20
1.07 vn Other long term assets 1,458 4,811 3,353 3.3
(Unit: Million VND)(Source: Author compiled from the sales department)
Short — term asset Short — term asset ratio = ——: - ■—
Short — term asset ratio in 2022 = ———— ~ 0.7549
Short — term asset ratio in 2023 = nn/n„n ~ 0.7517
Long — term asset Long — term asset ratio = - ế—— : - - ơ Toltal asset
Short — term asset growth rate
Short — term asset in 2023 — Short — term asset in 2022
Short - term asset growth rate = (166.312 - 141.459)/141.459 ô 0.1756
Long-term asset growth rate:
Long — term asset growth rate
Long — term asset in 2022 — Long — term asset in 2023
Long — term asset growth rate = -
Ratio of Short-term to Long-term asset: n r , > Short — term asset
Ratio of short — term to long — term asset = - -
Ratio of short — term to long — term asset in 2022 = ~ 3.0711
Ratio of short — term to long - term asset in 2023 = — ~ 3.0309
The company's asset value is notably high, primarily due to a significant concentration in accounts receivable, which has risen by 1.46% This increase suggests potential capital appropriation and an extended receivables collection period To address capital stagnation and minimize appropriation, the company must prioritize debt recovery Furthermore, there has been a slight decline in inventory, decreasing by 0.94%.
Long-term assets have risen by 1.19% as the company invests in new machinery for transportation and construction to enhance its production capabilities for interior furnishings Notably, the acquisition of these fixed assets is mainly funded through the company's own capital, with no reliance on borrowed funds.
In summary, the company's asset structure remains stable and is consistent with its industry; however, to navigate the current intense competition, it must prioritize investments in modern equipment, high-quality input materials, and an expanded product range.
Table 2 2: Melody Decor Co Ltd's source of capital
(Unit: Million VND) (Source: Author compiled from the sales department)
Owner's equity and accounts payable have seen a steady increase over the years, with a notable acceleration in growth rates This trend is particularly evident in the rise of short-term debt, primarily driven by increased accounts payable to suppliers, reflecting significant capital appropriation from them Furthermore, the growing accounts payable to employees can be attributed to rising minimum wage requirements.
The company must exercise caution regarding its liabilities, as insufficient funds to meet debt obligations can lead to insolvency and potential creditor actions A well-structured and detailed debt repayment plan is essential for financial stability and to mitigate risks associated with outstanding debts.
2.3.3 Analysis of busmess results over the 2021-2023.
The company's total revenue comes from detailed business activities, include:
• Revenue from design consulting services;
• Revenue from design and construction services.
In these, revenue from design and construction activities is the primary revenue source and has a significant impact on the company's total revenue.
Over the past four years, the company has experienced significant growth, with consistent annual increases in revenue, profit, and expenses The following statistics detail the company's production and business performance from 2021 to 2023.
Table 2 3: Melody Decor Co.,Ltd's business result over the 2021-2023
(Unit: Million VND) (Source: Author compiled from the sales department)
Revenue for the current year — Revenue for the previous year
Revenue for the previous year
Profit for the current year — Profit for the previous year
Profit for the previous year
Figure 2 3: Business result over the 2021-2023 chart
Between 2021 and 2022, revenue grew significantly from 7,882 million VND to 9,591 million VND, marking an increase of 1,278 million VND or 17.5% This growth was mirrored in profits, which rose from 464 million VND to 809 million VND, representing a substantial increase of 346 million VND or 74.5%.
Between 2022 and 2023, revenue surged from 9,591 million VND to 12,637 million VND, marking a 31.8% increase of 3,046 million VND Similarly, expenses rose from 8,579 million VND to 11,294 million VND, reflecting a 31.6% increase of 2,715 million VND As a result, profit grew from 809 million VND to 1,075 million VND, indicating a 32.7% increase of 264 million VND.
Annual revenue growth is driven by economic development, an increasing demand for visually appealing infrastructure, and a rise in contracts for design consulting and construction services The company's primary contracts come from investment projects initiated by domestic and international small and medium-sized enterprises, with a notable upward trend linked to the recent expansion of branches and the establishment of new firms (Tô Hà, 2023).
The analysis reveals that the company is experiencing consistent and stable growth over the years, achieving a profit of 1,074 million VND after three years This figure indicates a solid operational status; however, it remains relatively modest when compared to industry standards.
One key indicator that author pays attention to is the cost.
Cost — to — Revenue Ratio = Cost \
Viewed positively, the cost-to-revenue ratio for 2022 and 2023 shows a decreasing trend compared to 2021 However, it remains a high ratio compared to other competitors in the industry.
Average cost per unitof revenue:
Average cost per unit of revenue = — -
The average cost per unit of revenue decreased in 2022 but remained the same in 2023, reflecting a stable cost efficiency relative to revenue generation.
Cost of current year — Cost of previous year
In 2023, costs rose significantly faster than in 2022, indicating a concerning trend where expenses are outpacing revenue growth This sharp increase in the cost growth rate suggests that the company is compelled to incur higher costs to drive revenue Additionally, internal operational expenses are contributing to this upward pressure on overall costs.
To address the challenges of high employee turnover and the associated recruitment and training costs, it is essential to implement effective business strategies Despite efforts to enhance employee retention through improved work environments, development opportunities, and increased benefits, these measures have not yielded significant results Consequently, the focus will shift to analyzing the factors influencing employee job engagement in order to enhance retention and stabilize the workforce.
Study framework
The author will enhance the research process by integrating both qualitative and quantitative methods In qualitative research, the focus will be on designing questionnaires, crafting effective phrasing, and developing coding measurement scales For quantitative research, the author will concentrate on designing the research sample, executing data collection, and conducting thorough data processing and analysis.
Step 1: The first and most crucial stage in research is identifying the research problem This involves selecting the field, assessmg the relevance and feasibility of the study, and consulting with experts For this topic, the research problem is to measure the factors influencing employee engagement Subsequently, defining the research objectives is a critical step to guide the expected outcomes and formulate research questions to address these objectives.
Step 2: A literature review is a crucial step in gathering and analyzing theories and studies from previous authors By comparing and contrasting these studies, one can identify limitations and gaps, thereby creating new and distinct contributions to the research topic Based on the synthesized factor, author can involve proposing a research model.
Step 3: After synthesizing the hypotheses, research model, and measurement scales, the researcher has developed a draft questionnaire to conduct expert interviews for adjusting the hypotheses and research model.
Step 4: After conducting interviews and qualitative surveys through dhect discussions with experts and some individuals, the researcher recorded and adjusted the factors based on the survey results.
Step 5: The official measurement scale is completed after the refinement process, providing a foundation for the researcher to finalize the questionnaire and prepare for the official survey in the main research phase Subsequently, the researcher begins to determine the sampling method, sample size, survey subjects, and analysis methods.
Step 6: Reliability assessment using Cronbach’s Alpha is conducted to eliminate any observation variables and measurement scales that do not meet the requhements Observation variables with high reliability are selected for exploratoiy factor analysis.
Step 7: Exploratory Factor Analysis (EFA) is conducted to identify the factors and then- structure based on data collected from surveys of businesses This step helps clarify the underlying factors m the data.
Step 8: Confirmatory Factor Analysis (CFA) is the step aimed at evaluating and validating the measurement model, testing the accuracy of the structures and relationships among variables in the research model.
Step 9: Apply Structural Equation Modeling (SEM) to assess the accuracy of the structural model, aiming to determine whether the research hypotheses are supported and if the theory accurately reflects reality.
Step 10: Multigroup Structural Analysis amis to examine the differences in the effects of independent variables on the dependent variable across different characteristic groups.
Step 11: Based on the analysis results, author will provide conclusions and propose managerial implications.
For the research process, author divided it into three specific stages as follows:
The author conducted preliminary research through the analysis of secondary data and direct interviews with experts to evaluate the model's practicality Based on these insights, the author made necessary adjustments to the model to ensure alignment with the research findings.
To determine the criteria for evaluation, develop the measurement scale, and construct the questionnaữe, author conducted steps:
• Analyze, evaluate, and synthesize the theoretical foundations and relevant studies Based on tliis, author proposes the research model.
The author conducted preliminary research to identify factors influencing employee engagement, focusing on job satisfaction as an intermediary To validate these findings, direct interviews were held with experienced industry experts, allowing for a reassessment of the compiled factors affecting employee engagement through the lens of job satisfaction.
The author developed a draft questionnaire based on a theoretical model and conducted qualitative research through in-depth interviews to gather expert opinions on factors influencing job satisfaction, including leadership, salary, benefits, and training Preliminary research involved discussions with two professors from Nguyen Tat Thanh University and seven senior employees from various companies to refine the measurement scale Following this, a survey of 20 employees was conducted to gather responses for further questionnaire refinement The expert interviews revealed that one observation variable related to leadership required adjustment, while no additional factors were added or removed regarding employee engagement Ultimately, the qualitative research sample comprised 29 participants.
After developing the research model and survey questionnaire, the author conducted a comprehensive survey involving 400 employees from Melody Decor, Paris Interior Decoration Architecture Design, Office Return Company Limited, and Builditect Design And Construction Company Limited in Ho Chi Minh City The surveys were distributed directly to participants, and the author meticulously screened the responses to eliminate any incomplete submissions The collected data were then entered into Excel and subsequently imported into SPSS for descriptive statistical analysis, Cronbach’s alpha analysis, and exploratory factor analysis (EFA) Finally, AMOS was utilized for confirmatory factor analysis.
(CFA), testing direct and indirect effects, and multi-group analysis (gender, age) Based on the analysis results, author proposed managerial implications.
To enhance the study's effectiveness, the author will utilize a convenience sampling method, which, despite its limitations in theoretical generalizability, is suitable for this research context By ensuring a sufficiently large sample size, the study aims to attain the required level of accuracy.
To determine the necessary sample size for quantitative analysis in the research model, guidelines from Hair et al indicate that for Exploratory Factor Analysis (EFA), the minimum sample size can be calculated using the formula n = 5p + 5, where p is the number of independent variables Given that the model includes 28 observed variables, the minimum required sample size is 140 However, since EFA typically requires a larger sample than regression analysis, the study aims to collect approximately 300 samples to meet the quantitative analysis requirements.
The research sample was collected by convenience sampling method The questionnaire is sent to survey respondents at companies through Google Forms.
In this study, the author employed a range of secondary data sources, such as research papers, articles, government agency data, and market research reports, along with other pertinent materials relevant to the research.
Analysis of Research Results
The author will evaluate and analyze the research findings using a range of statistical methods, including descriptive statistical analysis and reliability analysis with Cronbach's alpha Additionally, the study will employ exploratory factor analysis (EFA), confirmatory factor analysis (CFA), and structural equation modeling (SEM), along with multigroup structural analysis to ensure comprehensive insights into the data.
A formal study was conducted over one month, involving the distribution of questionnaires to employees at Melody Decor, Paris Interior Decoration Architecture Design, Office Return Company Limited, and Builditect Design and Construction in Ho Chi Minh City.
400 questionnahes were sent via Google Docs, and author received 362 completed responses, with participants showing a high level of engagement.
(Source: The author complied from SPSS result)
The survey results indicate that males represented 56.63% of the participants, surpassing the female participation rate of 43.37% This highlights a higher engagement level among males compared to females in the survey.
According to statistics, individuals aged 18-23 represent the largest demographic at 60.77%, while those over 41 years old constitute the smallest group at just 1.38% The age distribution also includes 20.99% for the 30-35 age range, 11.60% for ages 24-29, and 5.25% for the 36-41 age group.
According to the survey statistics, the majority of respondents, accounting for 61.88%, have between 0 to 3 years of experience In contrast, only 3.87% of participants possess more than 16 years of experience Additionally, 13.81% of respondents have 8 to 11 years of experience, while 10.77% fall into other experience categories.
The Cronbach’s Alpha coefficient was utilized to identify and eliminate unsuitable variables for the study, with values ranging from 0 to 1 Higher values of this coefficient signify greater reliability of the measurement scale.
& Gliem, 2003) A good measurement scale typically has a Cronbach’s Alpha coefficient of 0.7 or higher (Nunnally 1975) However, in preliminary exploratory research, a Cronbach’s Alpha coefficient of 0.6 or above is considered acceptable.
Table 2 8: Results of Cronbach's Alpha analysis for factors influencing job engagement
Scale Mean if Item Deleted
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
Measurement scale: Leadership Cronbach's Alpha = 0.870
Measurement scale: Salary Cronbach's Alpha = 0.901
Measurement scale: Work Envhomnent Cronbach's Alpha = 0.929
Measurement scale: Career Advancement Cronbach's Alpha = 0.935
Measurement scale: Training Cronbach's Alpha = 0.921
Measurement scale: Co-Worker Cronbach's Alpha = 0.918
Measurement scale: Benefits Cronbach's Alpha = 0.833
Measurement scale: Job Satisfaction Cronbach's Alpha = 0.968
Measurement scale: Job Engagement Cronbach's Alpha = 0.945
(Source: The author complied from SPSS result)
The analysis in Table 2.8 shows a positive outcome, with all scales achieving a Cronbach’s Alpha above 0.6 and item-total correlation coefficients exceeding 0.3 As a result, all measurement variables related to factors influencing employee job engagement have been retained for further analysis.
The reliability analysis using Cronbach’s Alpha confirmed that all measurement scales met the necessary standards, allowing us to advance to exploratory factor analysis (EFA) in SPSS This essential step in quantitative data analysis will evaluate the relationships between variables across various factors and identify observed variables with significant loadings on multiple factors or those initially misclassified.
Exploratory Factor Analysis (EFA) was used to reduce the set of observed variables into a set F containing the most significant factors, according to Loc
In this study, we adhered to the guidelines set by Gerbing & Anderson (1988), which recommend excluding variables with a factor loading below 0.4 from Exploratory Factor Analysis (EFA) We specifically focused on variables with a loading factor of 0.5 or higher To extract the coefficients, we utilized the principal components method along with Varimax rotation.
Key criteria that must be considered in Exploratory Factor Analysis (EFA) include:
The KMO (Kaiser-Meyer-Olkin) index is a crucial measure for evaluating the appropriateness of data for factor analysis, with suitable KMO values falling between 0.5 and 1 A KMO value below 0.5 indicates that factor analysis may not be suitable for the dataset.
KMO value is below 0.5, it may indicate that the data is not adequate for factor analysis (Vogt & Johnson 2015).
Bartlett’s test of sphericity is a statistical method used to assess the correlation among observed variables within a factor A significant result, indicated by a p-value less than 0.05, confirms that the variables are correlated, supporting the validity of factor analysis (Tobias & Carlson 1969).
Eigenvalue serves as a key metric in Exploratory Factor Analysis (EFA) for identifying the number of factors to retain Factors with Eigenvalues greater than 1 are considered significant and included in the analysis model, as highlighted by Nguyen and Moreira (2021).
An EFA model is deemed adequate when the Total Variance Explained exceeds 50% This metric indicates the proportion of variance in the observed variables accounted for by the factors, with the remaining percentage representing unexplained variance (Han Junior, Black, Babin, Anderson & Tatham, 1998).
Factor loading, or factor weight, indicates the strength of correlation between an observed variable and underlying factors, with higher values signifying stronger relationships A factor loading of 0.5 or above is deemed high quality, while a minimum of 0.3 is considered acceptable (Han et al., 2010).
Exploratory Factor Analysis (EFA) confirmed that the 28 observed variables, initially spread across 9 components, were effectively consolidated into 9 distinct factors, each exhibiting Factor Loadings greater than 0.5, indicating strong associations The KMO value of 0.817 and Bartlett’s test result of Chi-square statistic 8570.462 (Sig = 0.000) further validate the appropriateness of the EFA, highlighting significant correlations among the variables The factors collectively explained 85.531% of the total variance, with an Eigenvalue of 1.136 Additionally, Cronbach’s Alpha coefficients surpassed the acceptable threshold of 0.6, and correlation coefficients within each factor consistently exceeded 0.3, affirming the validity of the measurement scales Consequently, all 9 original factors and 28 observed variables were retained, demonstrating strong reliability and validity post-EFA.
Table 2 9: Results of KATO and Bartlett's test for all variables
Kaiser-Meyer-Olkin Measure of Sampling
(Source: The author complied from SPSS result) Table 2 10: Exploratory Factor Analysis (EFA) Ọ o
Extraction Sums of Squared Loadings
Rotation Sums of Squared Loadings
(Source: The author complied from SPSS result) Table 2 11: Results of Exploratory Factor Analysis (EFA)
(Source: The author complied from SPSS result)