Determinants of the loyalty of employees in businesses

Employee loyalty to the organization can derive from their true feelings: 1 they will stay with the organization despite elsewhere higher salaries, better working conditions, 2 they can

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Advisor’s assessment

Advisor’s signature

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Table of contents

Chapter 1: Introduction 4

1.1 Problem statement 4

1.2 Research objectives 6

1.3 Research questions 6

1.4 Research scope 6

1.5 Research methodology 7

1.6 Research structure 8

Chapter 2: Literature Review 9

2.1 Theoretical literature 9

2.1.1 Approaches in the study of the loyalty of employees 9

2.1.2 Benefits of building and maintaining the loyalty of employees 10

2.2 Empirical literature 11

Chapter 3: Research Methodology 14

3.1 Data sources 14

3.1.1 Qualitative study 14

3.1.2 Quantitative study 15

3.2 Variables 15

3.3 Research model 19

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3.4 Method of estimation 21

3.5 Method of testing 22

Chapter 4: Research Results 23

4.1 Synthesis of the survey result 23

4.2 Descriptive statistics 26

4.3 Adjustment of scale 28

4.4 Factor analysis 30

4.5 Adjusted model 33

4.6 Testing of the adjusted model 35

4.7 Result of testing hypothesis 40

4.8 Testing the loyalty rate between male and female 42

4.9 Testing the loyalty among employees at different levels 43

4.10 Testing the loyalty among employees at different positions 45

4.11 Testing the loyalty among employees in different business types 47

Chapter 5: Conclusion, Recommendation and Limitation 50

5.1 Performance and topic’s contributions 50

5.2 Practical signification and recommendation 52

5.3 Limitation and direction for coming studies 55

References 58

Human resources management (HRM) issues include aspects: attendance, payroll, screening, hiring, training, coaching, evaluating the work of staff, drafting the remuneration policy, the labor remuneration regime, etc But one of the most important issues that should not be ignored by HRM professionals is the planning and implementation of strategic development of human resources, attracting talent

to work for the company as well as not making them anxious with their thought

“the grass is always greener on the other side of the fence”

According to results from a recent study by Walker Information and Hodson Institute that provided some information about the loyalty of workers in organizations as follows:

 Only 24% of employees found that they were really loyal, true commitment

of contribution to the objectives and activities of the company, and available to work for the firms in at least two years

 33% of employees had no commitment, no plan to survive in the firms in the long term

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 Up to 39% of employees have to be seen as being reluctant to work They worked only for a few specific reasons (wages, favoritism, waiting to find another job, etc.) but did not have a specific plan to benefit to the businesses

All business owners will admit that they have to always pay very high prices for the leave of key employees One of the problems often seen is the leave of the key employees will entail the leave of key customers The study showed that 70% of customers leave because of the leave of key staff Moreover, if there is continuous passing of the key staff, it may cause underground waves of exit of all staff remaining

Currently, the problem of how to retain employees is a headache for business owners and managers of enterprises in Vietnam Especially after Vietnam joined the WTO, the domestic enterprises need to expand production and business; in addition to the need of high quality of human resources, they also have to know how to retain qualified employees It’s a matter of business survival Thus, the business must identify, consider and evaluate accurately factors that affect the loyalty of employees, on the basis that the business will have appropriate direction

in the management of human resources, in order to have positive move to retain talent for the business to avoid brain drain phenomenon in the future That's why I chose the topic “Determinants of the loyalty of employees in businesses”

The paper attempts to identify the most important determinants of the loyalty of employees and provide an integrated analysis on the identified determinants

1.3 Research questions:

The research aims to address the following questions:

(1) What are the determinants of the loyalty of employees in businesses in HCM city?

(2) What suggestions can this study have to improve the loyalty of employees in businesses in HCM city?

1.4 Research scope:

Research objects who are currently working in the economic organizations; including Limited Liability Company, Joint Stock Company, State-owned Company, Joint Venture Company, Private enterprise and Enterprise 100% foreign capital

Since the time constraint, the study is focused on investigating the objects who are currently working in businesses in HCM city in positions of staff, team leaders, supervisors and middle managers

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1.5 Research methodology:

The research is conducted over 2 phases:

 Phase 1: using qualitative research methods to confirm and supplement the criteria of assessment, adjust scales and questionnaires to support the quantitative research process

 Phase 2: using quantitative research methods, using the measured variables in qualitative research phase to determine the factors and the measurement properties; after adjustment, final scale is used for formal interview

Samples and sample information: Quantitative survey was conducted in the area of HCM city Sample objects are currently working in businesses in HCM city, conducted by direct interviews with the questionnaires, selecting a random sample

of students in night classes (in-service, degree 2, master, etc.) at some universities

in HCM city like University of Economics HCM City, Open University of HCM City, University of Natural Sciences, University of Social Sciences and Humanities, University of Industry, etc Measurement model included 29 observed variables, using 5-level Likert scale range (1: totally disagree to 5: completely agree) to quantify; and 7 hypotheses according to minimum rule 5 x 3 = 15 samples for each measurement variables (Bentle & Chou, 1987) So that the original sample was calculated: 29 x 15 = 435

Collecting and analyzing data: Using data processing techniques by SPSS software, testing conducted through the following steps: (1) preliminary assessment of the scale and reliability of variables measured by Cronbach Alpha coefficients, and the values (factor loading) by EFA (Exploratory Factor Analysis); (2) testing the hypothesis and the overall model fit After that, T-Test would be used for testing

Chapter 2: Literature review

Chapter 3: Research methodology

Chapter 4: Empirical results and discussion

Chapter 5: Conclusion, recommendation and limitation

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CHAPTER 2: LITERATURE REVIEW

2.1 Theoretical literature:

2.1.1 Approaches in the study of the loyalty of employees:

There are many approaches in the study of the loyalty of employees in businesses Loyalty can be considered as a component of organizational commitment, or an independent concept Allen & Mayer (1990) focused on three psychological states

of employees associated with the organization Employee loyalty to the organization can derive from their true feelings: (1) they will stay with the organization despite elsewhere higher salaries, better working conditions, (2) they can be loyal to their organizations just because they do not have the opportunity to earn a better job, and (3) they can be loyal to their organizations because the moral standards of the organizations that they pursue

According to Mowday, Steers and Poter (1979), loyalty is the "intention or desire to maintain membership of the organization" Mowday's famous definition of loyalty

is similar to the concept of "Maintain" in the research of Aon Consulting Institute for many years in US: employees who intend to stay with the organization in the long term will stay with the organization even though they get more relatively attractive offers from other organizations According to Johnson (2005), today employees are more loyal to their profession than loyal to their employer; and the nature of the relationship between employees and employers has changed fundamentally, and it is necessary to revaluate the loyalty concepts

By the Loyalty Research Center (2004), employee loyalty is as commitment of employees associated with the organization's success, and they believe that working for this organization is the best choice of them According to the scale model of

2.1.2 Benefits of building and maintaining the loyalty of employees:

The value of employee loyalty is extremely large, reducing employee turnover cost

is just one visible example; and the benefit of retaining experienced and reliable staff is invaluable Seniority, experience and stability of the organization will be the things we think of first, but beyond the personal experience will give us an overview of the benefits to the organization of the construction and maintenance of employee loyalty in today's economic situation

 On the revenue side: The loyal employees tend to work better than what customers expect and always have high morale in their best ability Both of these characteristics are very important for the company to retain loyal customers and bring in more sales

 On the expense side: The loyal employees will stay working with the company in long term, refuse offers from the opponents, not actively look for a new job and always present the company as a good workplace All four of these attitudes have a positive impact to the operating cost of the company, because the company will avoid a significant cost for replacing staff

In other words, instead of just focusing on holding the employees (try to keep the employees who were laid off), managers need to be more positive and proactive in

2.2 Empirical literature:

Herzberg (1968):

In this study, Herzberg interviewed a group of employees to find out what made them satisfied and dissatisfied on the job He revealed two important factors that affect job satisfaction: motivation and hygiene Motivation – hygiene theory factors pointed out that factors creating of job satisfaction and job dissatisfaction were separate Factors that led to job satisfaction are called motivation factors, including achievement, recognition, the work itself, responsibility and advancement Factors that led to job dissatisfaction are called hygiene factors, consisting of administrative policies, supervision, salary, interpersonal relations and working conditions Herzberg’s study had put a strong foundation for later research on factors affecting job satisfaction Albert S King and Barbara J Ehrhard (1997):

In their study, they described the commitment cohesion exercise, which is an instrument that increases the understanding of employees’ attraction to “the ideal” or empowered organization The exercise measures employees’ perception of loyalty, values, and organizational commitment Three conditions, i.e loyalty, values and commitment, influence empowerment structures within an organization The exercise supported the notion of a stepwise movement from loyalty to value congruence (or

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agreement) to organizational commitment It also demonstrated how progressive phases are associated with perceived quality of work life and connected to an empowered organization

Zhen Xiong Chen, Anne S Tsui and Jiing-Lih Larry Farh (2002):

In this research, they investigated the relationship between loyalty to supervisor and employee's in-role and extra-role performance in comparison with that of organizational commitment in the People's Republic of China Two studies were conducted In the first study, a five-dimension loyalty to supervisor scale was developed and validated In the second study, the relationships between loyalty to supervisor, organizational commitment and employee performance were examined Results indicated that loyalty to supervisor was more strongly associated with both in-role and extra-role performance than organizational commitment

Frederick Reichheld (2006):

In his study, he reported that loyalty, for those who plan to stay with an employer at least two years, can be affected by several factors, including benefits and pay, working environment, job satisfaction and customers Employee loyalty is critical for organizations as constant turnover or churn can be very expensive In his report he stated that one of the most effective ways to improve employee loyalty is to make employees feel like they are an important part of the organization His report found that only 55 percent of the employee surveyed feel like their organization treats them well He suggested that an employee feedback system can help raise employee loyalty

by providing two-way communications between employees and management

Artz (2010):

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According to the results of Artz’s study, fringe benefits are significant and positive determinants of job satisfaction Fringe benefits are also believed to have a profound impact on the loyalty of employees It plays as a motivator that helps to improve employee performance and reduce employee turnover

In summary, there are many studies on employee loyalty to the organization, but most previous studies only focused on a general way to a certain extent, such as organizational culture, leadership style, etc There is now no study has ever addressed the specific factors affecting the loyalty of employees Therefore in this study each specific factor such as salary, working conditions, the appropriate target, etc will be examined to find out how each of them will affect the loyalty of employees in businesses

of variables

Objectives:

 Determine how managers of human resource understand the expectation of staff? In their opinion, what are the factors that make staff more loyal to the organization?

 Determine what is expected by staff in the organization? Which elements make them more loyal to the organization?

Do Corporation were interviewed

The results of this preliminary research shall be used to design the questions for the official research

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3.1.2 Quantitative study:

This is the stage of formal study with data collection techniques of interviewing through a questionnaire The collected data is processed by SPSS software After encoding and cleansing date, the formal analysis will be implemented as follows:

 Assess the reliability of the scale: the reliability of the scale was assessed through Cronbach’s alpha coefficients, from which inappropriate variables will

be eliminated if the Corrected Item–Total Correlation is small (<0.3) and the scale will be accepted as Cronbach’s alpha coefficient is satisfactory (> 0.6)

 Then, analyze the factor will be used to test the convergence of the component variables of the concept The variables with a singular correlation coefficient between variables and other factors (factor loading) less than 0.5 will be disqualified Analytical methods of Principal axis factoring with Promax rotation will be done and stops when extracting factors of Eigenvalue greater than 1

 Finally, test the hypothesis of a structural model and the level which fit the overall model

3.2 Variables:

(1) High income / salary:

Remuneration has always been one of the most challenging issues for managers in every business Businesses often have multiple points of view, different goals when designing their remuneration system However businesses generally are oriented to the four basic objectives: to attract staff, to maintain good staff, to stimulate employee motivation and to meet the requirements of the law

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For most people, employment and quality of employment are often measured by the income of the job Thus, income is considered as a measure of work as well as the success of the employee at work High income makes people more satisfied at least in term of physical secure so that they pay more attention to work and try to prove their worth even more Therefore, it makes an enormous impact on the morale of employees This impact is reflected in the following aspects:

 When the employees earn and feel worthy of their dedication, they will be enthusiastically excited at work

 They have little intention of leaving the company for another job while they are satisfied with their current income

 They are more responsible for the work they are in charge

 They have more discipline in observing the rules of the company

So the hypothesis is set out:

H1: High income / salary will make employees more loyal to the businesses

(2) Favorable working conditions

The working environment has always been interested by workers because it is related

to personal convenience and it is also a factor which makes them complete the tasks Workers do not like the working environment dangerous, disadvantageous and inconvenient Temperature, light, noise and other environmental conditions must be consistent Moreover, many workers prefer working closer to home, with the working facilities clean, modern and appropriate (Lam, 1998)

So we hypothesize that:

is defined as the compatibility of personal values and beliefs with the rules and values

of the organization (O’Reilly et al., 1991) The suitability of individual – organization

is the basis of the most important prediction of many factors to be studied (Chatman, 1991; Kristof, 1996; Van Vianen, 2000)

Research in sales planning indicated that the target is a prerequisite for a positive working attitude and employee behaviors (Netemeyer et al., 1997) Commitment to the goals and values of the organization plays an important role in the service and retail sectors The implementation of the policies and activities of an organization related to services require the commitment of employees to its goals and values

Therefore we hypothesize that:

H3: Target suitability will make employees more loyal to the businesses

(4) Support from management

Support from the management is the central focus of many researches Support from the management is defined as the level of consideration and support that employees can receive from the supervisors (Netemeyer et al., 1997) Leaders must have ability to help and treat employees fairly, encourage two-way communication, and recognize the contribution of the employees to implement the goals of the organization

Therefore the hypothesis is set out:

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H4: Support from management will make employees more loyal to the businesses

(5) Support from colleagues

Support from the colleagues will help employees, especially newcomers, learn new skills and knowledge It will help promote the business, increase the productivity and decrease time and energy wastage The term "knowledge is power" is antiquated in a team environment, knowledge should be shared so the team can work well together, learn from each other and respect each other's views and ideas

Fairness theory pointed out each individual follows a particular rule of fairness governing their attitudes and behaviors (Lane & Messe, 1971) This suggests that employees who are rewarded fairly will have a more positive perspective and willingness to act in the direction of supporting businesses

Thus we hypothesize that:

H6: Fair reward will make employees more loyal to the businesses

(7) Empowerment

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Empowerment exists when supervisors believe in the ability of making decisions of employees and encourage them to use initiative (Conger & Kanungo, 1998; Hartline et al., 2000) Empowerment means nearly autonomous tasks Core of this concept is the willingness of supervisors to subordinates to make decisions within the scope of regulation and use initiative Empowerment can be a tool to increase organizational effectiveness because it can enhance confidence in the ability to perform the employee's job Empowerment is particularly important for employees who contact directly with customers because it creates flexibility in meeting customer requirements (Bowen & Lawler, 1992)

Thus the hypothesis is set out:

H7: Empowerment will make employees more loyal to the businesses.

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High income

Target suitability

Loyalty of employees

is used

 Dimension of sample: There are 7 hypotheses and 29 observed variables which were identified Likert 5 scale is used Therefore, according to minimum rule, there are 5 x 3 = 15 samples for each measurement variables (Bentle & Chou, 1987) So that the original sample are calculated: 29 x 15 = 435

 Method of taking sample: Selecting a random sample of students in night classes (in-service, degree 2, master, etc.) at some universities in HCM city like University

of Economics HCM City, Open University of HCM City, University of Natural Sciences, University of Social Sciences and Humanities, University of Industry, etc

 Result and information of sample: Detailed questionnaire is presented in Appendix A There were 600 questionnaires which were sent directly to the object

of study During the survey process, there are some groups who have not worked and in a number of questionnaires some row were left unanswered All these questionnaires are to be removed prior to data entry Therefore, the number of formal questionnaire was conducted to analyze input only remaining 453 sets, accounting for 76% of the sent questions

 Testing the hypothesis of a structural model and the overall model fit Next, performing ANOVA & T-Test between among different groups with structure model inspected to find out the meaning difference of some certain groups

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CHAPTER 4: RESEARCH RESULTS

4.1 Synthesis of the survey result:

4.1.1 Survey result of gender:

The total number of female is 283, accounting for 62.5% and the total number of male is 170, accounting for 37.5%

Table 4.1: Survey result of staff on gender

Frequency Percent Valid Percent Cumulative

Percent Valid Female

62.5 37.5 100.0

62.5 100.0

4.1.2 Survey result of age:

The greatest number is of between 21-30 years old with 351 people, accounting for 77.5% (including 241 female and 110 male) The later is of 31-40 years old, with

90 people, accounting for 19.9% (including 36 female and 54 male) The remaining two age groups <20 and >40 occupy a small amount of 12 people

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Table 4.2: Survey result of staff on age

4.1.3 Survey result of education level:

The largest number is of staff with university degree, 274 people, and occupying 60.5% (in which 155 female and 119 male) Next, those with college degree are of about 83 people, occupying approximately 18.3% (in which 67 female and 16 male) Followed by those with an intermediate level, there are 53 people, occupying approximately 11.7% (in which 39 female and 14 male) Followed by those with a high school degree, there are 35 people, accounting for approximately 7.7% (in which 20 female and 15 male) The last group includes staff who have higher degree, 8 people (2 female and 6 male), accounting for approximately 1.8%

Table 4.3: Survey result of staff on education level

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4.1.4 Survey result of working position:

The largest group is of employees working as staff with about 313 people, accounting for 69.1% (in which 223 female and 90 male) Next, the team leader/expert group has about 84 people, occupying approximately 18.5% (in which

40 female and 44 male) There are 56 managers, accounting for 12.4% (in which 20 female and 36 male)

Table 4.4: Survey result of staff on working position

Count Col % Count Col % Count Col %

Working

position

Staff Leader Manager

4.1.5 Survey result of business type:

The largest group is of employees who are working for the joint stock companies, with 130 people, accounting for 28.7% (including 76 female and 54 male) Next group is of employees who are working for limited liability companies, with 125 people, occupying approximately 27.6% (including 94 female and 31 male) The number of employees working for state-owned companies and private companies are as large as 72 people of each, accounting for about 15.9% of each Number of employees who are working for enterprises with 100% foreign capital are 28, accounting for 6.2% And the last, number of employees who are working in joint ventures are 26, occupying approximately 11.7%

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Table 4.5: Survey result of staff on business type

Count Col % Count Col % Count Col %

Business

type

LLC JSC Private State 100% FC

4.2 Descriptive statistics:

4.2.1 Factors affecting the loyalty of employees:

The statistic results showed that employees evaluated the factors from very low to very high That means with the same statement, some staff entirely agreed, but also some staff entirely disagrees This can be explained by that the samples were collected in many different business types; each of them has different human resource policies

Overall, average value of the independent variables has quite considerable difference (value = 2.87 – 4.12), which proves that there is a different assessment

of the level of importance among the independent variables

3.06 2.87 3.02 3.38 3.41 3.50 3.68 3.77 4.12 3.56 3.46 3.42 3.36 3.60 3.80 3.78 3.17 3.23 3.25 3.20 3.50 3.79 3.29 3.50 3.51 3.68

.06 06 06 06 06 06 06 06 05 05 05 06 06 05 05 05 06 06 06 06 06 05 06 06 06 05

1.341 1.287 1.354 1.261 1.274 1.242 1.191 1.212 1.034 1.152 1.160 1.216 1.190 1.149 1.055 1.151 1.283 1.210 1.279 1.274 1.282 1.156 1.279 1.176 1.208 1.166

-.130 090 -.093 -.454 -.507 -.613 -.741 -.906 -1.251 -.661 -.512 -.596 -.408 -.708 -.916 -.860 -.283 -.350 -.288 -.263 -.563 -.951 -.354 -.478 -.575 -.743

.115 115 115 115 115 115 115 115 115 115 115 115 115 115 115 115 115 115 115 115 115 115 115 115 115 115

-1.286 -1.151 -1.248 -.967 -.837 -.661 -.289 -.136 1.026 -.307 -.547 -.654 -.805 -.259 360 -.013 -1.078 -.864 -.997 -1.003 -.737 066 -.994 -.586 -.563 -.260

.229 229 229 229 229 229 229 229 229 229 229 229 229 229 229 229 229 229 229 229 229 229 229 229 229 229

4.2.2 The loyalty of employees:

The observed variables in the scale of the loyalty of employees, Y1 (I'm willing to introduce to people about my company as a good working place), Y2 (I am proud

to introduce to people about the product / service of the company), Y3 (I will stay working with the company in long term although others suggest more attractive

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salary) with relatively high average value (value = 3.72; 3.84; 3.17) This shows that employees really desired long-term commitment to the business that they are working

Table 4.7: Descriptive statistics of variables belonging to the loyalty of employees

.06 05 06

1.256 1.141 1.313

-.747 -.861 -.190

.115 115 115

-.435 -.020 -.1.097

.229 229 229

4.3 Adjustment of scale:

Scale of reliability was assessed through two tools: Cronbach’s alpha coefficient and factor analysis Cronbach’s alpha coefficients were used to disqualify spam variables Variables that have a correlation coefficient of total variable less than 0.3 will be disqualified and the scale will be selected when Cronbach’s alpha coefficients are greater than 0.6 (Nunnally & Bernstein, 1994)

Reliability is used to describe the degree of measurement error, because we cannot know exact variability of the correct and incorrect variables as well as cannot directly calculate the reliability of the scale However, we can establish the reliability based on Cronbach’s alpha coefficients This coefficient shows the extent of correlation between the variables in the questionnaire, and will be used to calculate the change in each variable and correlation among variables (Bob E Hays, 1983)

4.3.1 Scale of independent variables:

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 Component: High income has Cronbach’s alpha = 0.76 and correlation coefficient is greater than 0.3, which meet the requirements included in the factor analysis followed

 Component: Favorable working condition has Cronbach’s alpha = 0.84 and correlation coefficient is greater than 0.3, which meet the requirements included in the factor analysis followed

 Component: Target suitability has Cronbach’s alpha = 0.79 and correlation

coefficient is greater than 0.3, which meet the requirements included in the factor analysis followed

 Component: Support from management has Cronbach’s alpha = 0.80 and

correlation coefficient is greater than 0.3, which meet the requirements included in the factor analysis followed

 Component: Support from colleagues has Cronbach’s alpha = 0.84 and

correlation coefficient is greater than 0.3, which meet the requirements included in the factor analysis followed

 Component: Fair reward has Cronbach’s alpha = 0.92 and correlation coefficient

is greater than 0.3, which meet the requirements included in the factor analysis followed

 Component: Empowerment has Cronbach’s alpha = 0.87 and correlation coefficient is greater than 0.3, which meet the requirements included in the factor analysis followed

4.3.2 Scale of the loyalty:

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Component of loyalty has Cronbach’s alpha = 0.84 and correlation coefficient is greater than 0.3, which meet the requirements included in the factor analysis followed

4.4 Factor analysis:

4.4.1 Factor analysis by KMO (Kaiser - Meyer - Olkin):

KMO (Kaiser - Meyer - Olkin) is an index used to examine the relevance of factor analysis KMO large value (between 0.5 and 1) means that factor analysis is appropriate, if this number is less than 0.5, the factor analysis is potentially incompatible with the data (Trong & Ngoc, 2005)

The variables which have factor loading of less than 0.5 will be rejected; the stop when Eigenvalues (represents variability explained by each factor) is larger than 1 and the total extracted variance is greater than 50% (Gerbing & Anderson, 1988)

Principal axis factoring with Promax rotation will be used in the factor analysis of measured scale of independent components Use of Principal axis factoring with Promax rotation will reflect the data structure more accurately than Principal component method with Varimax rotation (Gerbing & Anderson, 1988)

Above scale complexes after removing the variables in the evaluation phase of reliability, there will be remaining 26 variables The process of factor analysis of these scale complexes will undergo 2 steps Specific analysis results of each step are shown in the Appendix

Step 1, 26 observed variables shall be under the analysis, according to Eigenvalues standard of greater than 1, only 6 elements were drawn In this table (Appendix B), Cumulative = 68.255% said that the first six factors explained 68.255% of the data

4.4.2 Naming and explaining the factors:

The interpretation of the factors is fulfilled on the basis of realizing observed variables with large factor loading with one factor Thus, this factor can be interpreted by the variables having large coefficients for itself

In the factor matrix after rotation in this table (Appendix B), factor 3 gathers the observed variables from the components “Support from management” and

“Support from colleagues” that consist of observed variables Q4.1, Q4.2, Q4.3, Q5.1, Q5.2 This factor includes the behaviors of the relationship of the leaders to the employees whom they directly manage Therefore, this factor could be named

"management decisions" The observed variations of the remaining five factors including High income / salary, Favorable working conditions, Targets suitability, Fair reward and Empowerment have no change from baseline

4.4.3 Explanation of results:

The results of analyzing factors gave the measurement model of the loyalty

of employees to the organization that is a combination of scale: High

income / salary; Favorable working conditions; Targets suitability;

Management decisions; Fair reward and Empowerment

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The observed variations of components: High income / salary; Favorable working conditions; Target suitability; Management decisions; Fair reward and Empowerment have loading factor highly focused on one factor according to initial forecast It means that there is closely coherence between groups of observed variables with initial factors

Group of “Management decisions” factor includes observed variables belonging to components: Support from management and Support from colleagues

The result of analyzing factors includes the following components:

High income/salary

1 My current salary is commensurate with my working capacity Q1.1

3 I think that the company I am working for pay a fair salary Q1.3

Favorable working conditions

1 Equipments at my workplace are very well-equipped Q2.1

2 Rooms at my workplace are very airy to make me feel very

2 I commit to implement the goals set by organization Q3.2

4 My development targets are similar to the organization’s targets Q3.4