Impact of motivatiors on employee retention a study of banking industry in vietnam

The study identifies and measures the impact level of motivator factors on employee retention in banking industry in Vietnam.. Research results suggested that Growth, Advancement, Recogn

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

Ho Chi Minh City - Year 2014

Last, ISB staff helped, supported with their best for convenience of MBUS 2 I am greatly appreciated for their contribution to my present result

Tang Le Huy

February 2014

ABSTRACT

Employees retaining is very important for surviving of any organization The study identifies and measures the impact level of motivator factors on employee retention in banking industry in Vietnam Data was collected from 228 persons, who work in three commercial banks in Binh Duong province A likert-scale questionnaire was used to detect motivated factor and employee‘s retention The measurement scales were refined and tested unidimentionality, reliability and validity by Cronbach‘s alpha and exploratory factor analysis Multiple regression analysis was used to analyze the data of the study Research results suggested that Growth, Advancement, Recognition, Responsibility, and Achievement have positive impacts on employee retention in banking industry

Key words: motivated factors, employee‘s retention

TABLE OF CONTENT

LIST OF TABLES VI LIST OF FIGURES VI

CHAPTER 1: INTRODUCTION 1

1.1 Background 1

1.2 Problem statement 2

1.3 Research Objectives 4

1.4 Research scope 4

1.5 Thesis structure 4

CHAPTER 2: LITERATURE REVIEW 5

2.1 Predictors of employee retention 5

2.2 Motivators of Employee retention 9

2.2.1 Advancement 9

2.2.2 Responsibility 10

2.2.3 Recognition 10

2.2.4 Achievement 11

2.2.5 Growth 11

2.3 Model and Hypothesis 12

2.4 Chapter summary 13

CHAPTER 3: RESEARCH METHODOLOGY 14

3.1 Research design 14

3.2 Research methodology 15

3.2.1 Sampling : 15

3.2.2 Method of analysis 16

3.3 Measuring instrument 17

3.3.2 Employee retention 18

3.4 Chapter summary 19

CHAPTER 4 : DATA ANALYSIS AND FINDINGS 20

4.1 Sample characteristics 20

4.1.1 Gender: 20

4.1.2 Age: 20

4.1.3 Working position: 21

4.2 Assessment of measurement scales 21

4.2.1 Testing reliability of scales 22

4.2.2 Exploratory Factor Analysis (EFA) 24

4.3 Testing model and hypotheses 26

4.3.1 Testing model 26

4.3.2 Testing hypotheses 28

4.3.3 Description of statistics of overall employee retention 31

4.4 Discussions 31

4.4.1 Levels of importance of motivators 31

4.4.2 Differentiation among three groups of working duration 33

4.4.3 Comparing the level of retention between managers and staff 35

4.6 Chapter summary 37

CHAPTER 5 : CONCLUSIONS AND RECOMMENDATIONS 38

5.1 Conclusion 38

5.2 Managerial implication and Recommendation 39

5.3 Limitation and further research direction 42

REFERENCES 43

APPENDIX 1 : SURVEY QUESTIONNAIRE 47

APPENDIX 2 : CRONBACH'S ALPHA TEST RESULTS 51

APPENDID 3: EXPLORATORY FACTOR ANALYSIS TEST RESULTS 55

APPENDID 4: RESULTS OF REGRESSION ANALYSIS 58

LIST OF TABLES

Table 1: The turnover rate of Vietinbank in 2012-2013 3

Table 2: Maslow vs Hertzberg - Comparative Analysis: 6

Table 3 : The result of job enrichment program by Herzberg 1976 8

Table 6 : Descriptive Statistics by gender 20

Table 7: Descriptive Statistics by age 21

Table 8: Descriptive Statistics by working position 21

Table 9: Cronbach's Alpha test results 22

Table 10: KMO and Bartlett's Test 24

Table 11: Total Variance Explained 24

Table 12: Rotated Component Matrix(a) 24

Table 13: Result of EFA Retention 25

Table 14: Summary results of testing scales 26

Table 15: Correlations (a) 27

Table 16: Model Summary (b) 27

Table 17: ANOVA(b) 27

Table 18: Coefficients(a) 28

Table 19: Regression coefficients 29

Table 20: Descriptive statistics for the dimensions of employee retention 31

Table 21: Levels of importance factors on employee retention 31

Table 22: Descriptive statistics for employee‘s working time 33

Table 23: Model Summary(b) of three groups employee's working time 34

Table 24: Coefficients of three groups employee's working time 34

Table 25: Retention of employees 36

Table 26: Retention of managers, supervisors 36

LIST OF FIGURES

Figure 1: Research model 12 Figure 2: Research procedure 14 Figure 3: Regression coefficients of model 30

CHAPTER 1: INTRODUCTION

This chapter is an introduction and to provide background information of the present study and

its objectives and purpose It includes five sections The first section is background of the

research, the second is the problem statement, the third is the research objective, the fourth is the

scope of study and the final section is the structure of study

1.1 Background

The retention of employees is very important for the development and the

accomplishment of an organization‘s goals and objectives Retention of employees can be a vital

source of competitive advantage for any organization Today, changes in technology, global

economics crisis, are directly affecting the relationships between employee and employer

Outstanding employees may leave an organization because they become dissatisfied, underpaid

or unmotivated (Coff, 1996) Besides these problems, asymmetric information or lack of

information about the employees‘ performance may make a challenge for organization to retain

productive employees Without adequate employees‘ performances, an organization may not be

able to distinguish productive workers from non-productive ones

Insufficient information about employees‘ performance may result in adverse selection

by them (Grossman & Hart, 1986) The employees who perform better may move to other

organizations for better opportunities The employees who cannot improve their positions are

more likely to stay This is a problem when nonproductive and productive workers receiving the

same or nearly the same compensation and package of perks because of management‘s inability

to distinguish talented employees from the rest of the labor force in the organization The

problem of attempting to keep talented members of the workforce is further complicated

because of bounded rationality (Simon, 1976) High turnover rate is the reason for increasing

cost in training and recruitment because the new employees don‘t have experiences and

organization will spend a lot of time and cost on training them Moreover, high turnover rate has

a negative influence on the emotion of retention people

1.2 Problem statement

In 2013, Vietnamese government continues their objects: curbing inflation, stabilizing

macro economy As a result, banking sector has faced with a difficult problem for reaching

their target on credit growth and profit According to State Bank of Vietnam, total revenue of

banking industry in 2012 is 28.600 billion dong, decreasing 50% compare to 2011 (InfoTV,

2013) and annual report in 2012 of Vietinbank, Vietcombank, Eximbank, Seabank showed that

their employee‘s salary decreased comparing to 2011 Moreover, Nguyen Tri Hieu, expert in

banking finance, who said that ―in 2012, salary of banking sector is average comparing to the

rest sector‖

Thus, employees in banking sector have been faced with high pressure in work, lacking

time for themselves, their family, and salary is not high, so the turnover rate in this sector is very

high According to survey of Towers Watson in 2012 (Company provides support services,

human resources management, financial and risk in Vietnam) reported that the turnover rate in

banking sector is highest, 16% comparing to the rest sectors A result by interviewing the human

resources managers of Vietinbank showed that Vietinbank‘s voluntary turnover rate in 2012 and

the first six month of 2013 is 7.3% in average

Table 1: The turnover rate of Vietinbank in 2012-2013( Source: Human resources

However, in this difficult situation, the banks also want to keep their employees who have a good

skills and experiences in order to reach their business‘s target There are very necessary to

investigate these factors that influence employee retention rate and find out the valuable human

resources strategies for keeping good employees in banking industry

Employee‘s retention is considered by the leaders of the banks They implemented various ways

to increase level of retention such as: increasing salary, training more skills, offering

opportunities for promotion … However, the turnover rate is still high What are the motivated

factors and the level relationship that influence the employee‘s retention?

Previous researchers suggested some motivator factors that effect to retention such as: hunger,

thirst, shelter, safety, social, and esteem needs (Maslow, 1954) Achievements, recognition, work

itself, responsibility, advancement, and growth (Herzberg, 1959) What are the factors that have

a relationship with retention in banking industry?

This study is expected to find the key motivator factors that effect to retention in banking

industry and to provide new solutions and evidences for human resource management in order to

reduce the turnover rate in this sector

1.3 Research Objectives

This research aimed at clarifying the impact of motivator factors to the employee retention in the

banking industry in Vietnam with the specific objectives:

 To identify the impact of motivation factors (in Herzberg‘s two factor theory) on

employee retention in banking industry in Vietnam

 To measure the impact level of these factors on employee retention in banking industry

in Vietnam

 To examine the differences the impact of motivation factors on employee retention

among groups of working duration, and the level of intention between manager and staff

1.4 Research scope

Given the limited resources and time, the empirical data for the research were collected from

commercial banks in Binh Duong province They are Vietinbank, EximBank and Vietcombank

The respondents are 300 employees from those banks

1.5 Thesis structure

Chapter 1: Introduction presents the research background, problem statements, research

objectives, and research scope and thesis structure

Chapter 2: Literature review presents literature review, research model and hypotheses

Chapter 3: Research methodology illustrates the methodology of this paper

Chapter 4: Data analysis and findings presents research results based on collected data

Chapter 5: Discussion, conclusion and recommendations summarizes the research results,

provide the findings and recommendations

CHAPTER 2: LITERATURE REVIEW

This chapter presents the theories which relate to employee retention In this literature review,

factors effect employee retention will be represented Then, the model research will be proposed

for this specific study

2.1 Predictors of employee retention

Employee retention is about developing strategies that reduce the number of people who

leave the organization for avoidable reasons Organizations need to retain employees with the

required balance of skills and experience to ensure that business can be maintained (Stucberry,

2003) When employees leave their job, the organization will lost the employees who have

knowledge about production, current project, competitor and the loyal customer and client of

organization There are many factors that affect the employee's reasons for staying with the

organizations, as well as how important those factors are to employees In order to retain

employees, the organization must understand these factors, which motivate people to perform

their jobs and monitor the job satisfaction of employees

Cappelli (2000) suggested factors which play important role in employee retention:

career opportunities, work environment, work life balance, Organizational justice, and existing

leave policy and organization image Cole (2000) founded that employees stay with organization

where they are highly appreciated and work with their full potential and the reasons, which make

the employee remain in their job are: organization reward system, growth and development, pay

package and work life balance

There are some of the more famous theories within this motivation category: Maslows‘

Hierarchy of Needs Theory (1954) , and Herzberg‘s Two-Factor Theory (1959)

Maslow‘s Hierarchy of Needs Theory is one of the most well-known motivational

theories Abraham Maslow‘s theory identifies five levels of hierarchical needs that every people

attempt to accomplish in their life The needs start with the physiological (hunger, thirst, shelter)

and then move upward in a pyramid shape through: safety, social, and esteem needs, to the

ultimate need for self-actualization The peak of pyramid is self-actualization that is defined as

one‘s desire and striving towards maximum personal potential The pyramid shape to the theory

is intended to show that some needs are more important that others and must be satisfied before

the other needs can serve as motivators (Schermerhorn, 2003)

Herzberg‘s Two-Factor Theory divides motivation and job satisfaction into two groups of

factors: the motivation factors, and hygiene factors The motivation factors are achievement,

recognition, work itself, responsibility, advancement, and growth The hygiene factors are

company policy, supervision, relationship with supervision, work conditions, relationship with

peers, salary, personal life, and relationship with subordinates, status, and job security.(Herzberg,

1959)

Table 2: Maslow vs Hertzberg - Comparative Analysis:

Meaning

Maslow's theory is based on the concept of

human needs and their satisfaction

Hertzberg's theory is based on the use of motivators which include achievement, recognition and opportunity for growth

Basic of the theory

According to Maslow's model, any needs

can act as motivator provided it is not

satisfied or relatively less satisfied

In the dual factor model of Hertzberg, hygiene factors (lower level needs) do not act as motivators Only the higher order

challenging work) act as motivators

(Comparative Analysis between Maslow vs Hertzberg (Source: Akrani, 2011)

A result of job enrichment program was initiated at Hill Air Force Base in Utah by Herzberg

which revealed that: The enriched jobs reduce rate of personnel turnover, less overtime and

Maslow's theory is based on the hierarchy

of human needs He identified five sets of

human needs and their satisfaction in

motivating employees

Hertzberg refers to hygiene factors and motivating factors in his theory Hygiene factors are dissatisfies while motivating factors motivate subordinates Hierarchical arrangement of needs is not given

Nature of the theory

Maslow's theory is rather simple and

descriptive The theory is based long

experience about human needs

Hertzberg's theory is more prescriptive It suggests the motivating factors which can be used effectively This theory is based on actual information collected by Hertzberg

by interviewing 200 engineers and accountants

Applicability of the theory

Maslow's theory is most popular and widely

cited theory of motivation and has wide

applicability It is mostly applicable to poor

and developing countries where money is

still a big motivating factor

Herzberg's theory is an extension of Maslow's theory of motivation Its applicability is narrow It is applicable to rich and developed countries where money

is less important motivating factor

rework, a reduction in man-hours, and material savings (Herzberg 1976, 1977)

Table 2 : The result of job enrichment program by Herzberg 1976

Motivation factors Reported increase prior to

Source: Adapted from Herzberg and Zautra (1976)

Mausner and Snyderman (1999) consider the organization-based motivational variables which

are responsible for employees‘ job satisfaction Job satisfaction /dissatisfaction have long been

recognized as a predictor of employee retention and turnover The theory attempts to explain

satisfaction and motivation in organizations by stating that satisfaction and dissatisfaction are

driven by different factors (that is motivation and hygiene factors) respectively Motivators are

those aspects of the job that make people want to perform and inform their decision to stay or

quit an organization

Job satisfaction is very important in organization, dissatisfaction often leads to lethargy and

reduced organizational commitment Lack of job satisfaction is a predictor of quitting a job

(Alexander, Litchtenstein, and Hellmann, 1998) If any employee is not being motivated by the

factors, quitting tendency is observed (Bolarin, 1993)

Moreover, correlation exists among perceived work motivation, job satisfaction and staying

reported that motivation improves workers' job satisfaction Tang and LiPing (1999) reported

that a relationship exists between job satisfaction and employee turnover Furthermore, Stokes,

Riger and Sullivan's (1995) reported that motivation relates to job satisfaction and even

intention to stay the firm High job satisfaction creates the high level of motivation among the

employees And high level of motivation intents to the lower level of turnover (Abraham,

Ando and Hinkle, 1998; Mael and Ashforth, 1995; Ellemers, Spears and Doosje, 1997;

Wan-Huggins, Riordan and Griffeth, 1998)

Base on literature discussion above, there are relationship exists between motivation and

employee retention However, almost previous studies only focus on hygiene factors such as:

company policy, supervision, relationship with supervision, work conditions, relationship with

peers, salary, personal life, and relationship with subordinates, status, and job security… In

order to identify and measure the impact level of motivator factors in employee retention, this

research will use motivator factors (Advancement, Responsibility, Recognition,

Achievement, and Growth) of Herzberg‘s theory to answer this problem in banking industry

in Vietnam

2.2 Motivators of Employee retention

Base on Herzberg‘s theory, there are five main motivators as follows:

2.2.1 Advancement

This refers to the expected or unexpected possibility of promotion An example of negative

advancement would be if an employee did not receive an expected promotion or demotion

Oosthuizen (2001) stated in his research that advancement is one of strong motivator factor The

advancement may create the opportunity for personal growth, increased levels of responsibility

and an increase on social standing Arnolds and Boshoff (2001) suggest that if manager provide

more promotion opportunities, the employee job performance will higher increase Base on

discussion, there is a strong relationship between advancement and retention, so the hypothesis

is:

H1: There is a positive significant impact of advancement on employee retention

2.2.2 Responsibility

This involves the degree of freedom an employee has to make their own decisions and

implement their own ideas The more liberty to take on that responsibility the more inclined the

employee may be to work harder on the project, and be more satisfied with the result The

responsibility exist when the managers believe in employee‘s decisions and encourage them

implement their innovation (Conger & Kanungo, 1998) The responsibility is one of the

motivator factors for improving effective management because it raises employee‘s confidence

in working (Conger & Kanungo, 1988) Therefore, the hypothesis is:

H2: There is a positive significant impact of responsibility on employee retention

2.2.3 Recognition

When the employee receives the acknowledgement they deserve for a job well done, the

satisfaction will increase If the employees work is overlooked or criticized it will have the

opposite effect The annual survey of Watson Wyatt in USA 2002 finds that recognition is

important for workers because they want organization recognized and appreciated their work

Some previous studies stated that recognition has a positive impacted on employee‘s retention

(Allen, Shore & Griffeth 2003; Bergiel et al 2009) Therefore, the hypothesis is:

H3: There is a positive significant impact of recognition on employee retention

2.2.4 Achievement

An example of positive achievement might be if an employee completes a task or project

before the deadline and receives high reviews on the result, the satisfaction the employee

feels would increase High reviews on the result that refers to the remuneration of the banks

(salary, benefits, and incentive) Employees‘ motivation will enhance by monetary and

non-monetary reward and incentives (Bergiel, Nguyen, Clenney & Taylor 2009; Dockel 2003)

Bergiel (2009) suggested that there is a significant and positive relationship between

compensation and job embeddedness Thus, hypothesis is:

H4: There is a positive significant impact of achievement on employee retention

2.2.5 Growth

This motivation factor includes the chance one might have for advancement within the

company This could also include the opportunity to learn a new skill or trade When the

possibility/opportunity for growth is lacking or if the employee has reached the peak or glass

ceiling, as it is sometimes referred to, this could have a negative effect on the satisfaction the

employee feels with their job and position

The sufficient training opportunities to employees and training program should be an

important plan for employee growth and development (Dockel 2003; Kraimer, Seibert,

Wayne, Liden & Bravo 2011) Storey and Sisson (1993) stated that training and promotion is

the way that employers implement their commitment to the staff Training and promotion can

increase level of retention (Frazis et al., 1998; Wetland, 2003) Thus hypothesis is:

H5: There is a positive significant impact of growth on employee retention

2.3 Model and Hypothesis

According to hypotheses that stated above, the proposed research model was shown below:

Figure 1: Research model

Hypothesis 1: There is a positive significant impact of Advancement on employee retention

Hypothesis 2: There is a positive significant impact of Responsibility on employee

retention

Hypothesis 3: There is a positive significant impact of Recognition on employee retention

Hypothesis 4: There is a positive significant impact of Achievement on employee retention

Hypothesis 5: There is a positive significant impact of Growth on employee retention

2.4 Chapter summary

The chapter introduced the concept of employee retention and showed the different

motivational theories relating to employee retention The results of previous researches

have been referred to support the literature From the literature review, motivator factors

are represented and the model of employee retention is proposed for this study

Conclusion and Recommendation

Problem Statement

Objectives

Literature review

Research Model and Hypothesis Hypotheses Qualitative research methods

Questionnaire - Quantitative method

Data collection, data analysis and hypothesis

testing Hypothesis testing

CHAPTER 3: RESEARCH METHODOLOGY

This chapter reports the methodology that used to test the model and hypotheses that stated in

previous chapter

3.1 Research design

The research procedure is depicted in Figure 2:

Figure 2: Research procedure

3.2 Research methodology

3.2.1 Sampling :

 Sample size :

Sample size depends on analytical methods, this study has used Exploratory Factor Analysis

(EFA) which, according to Hoang and Chu (2005) suggested that the number of samples to be 5

times the number changes observed; The study was conducted with 30 observed variables (30

variables x 5 = 150 observations sample), the sample size must be at least 150 Similarly,

according to Hair et al (1998) cited in Nguyen (2011), refers to observations/items rate is 5:1,

that means a measured variable at least five observed variables Moreover, Tabachnick & Fidell

(1991) cited in Nguyen (2011), suggested that regression analysis to achieve best results, the

sample size to satisfy the formula:

(n is the sample size and k is the number of independent variables of the model)

This research conducted with sample sizes of about 228 is considered appropriate

 Data collection process :

Sampling method of this study was convenience sampling method; the object is officer

employees in banks in Binh Duong provinces

The data of this study was obtained from employees in banks in Binh Duong provinces At the

time the study was undertaken, there were about 300 employees who were working at banks

Participants in this study are classified as employees, supervisor and head / deputy department

The response rate is 83% or 250 After filtering, a number of questionnaires were eliminated

due to many missing values The data were based on 228 questionnaires – the sample The data

are used for later analysis

3.2.2 Method of analysis

The Statistical Package for the Social Sciences (SPSS) version 20.0 was used for all statistical

calculations Descriptive and inferential statistics includes: Cronbach alpha, EFA, correlation

and multiple regression analysis The analysis process is implemented as follow:

 Step 1 : Testing the reliability of the scale: The multi-items scale developed above have

to be evaluated for their reliability, unidimensionality and validity Cronbach alpha is the most

commonly use approach test reliability Cronbach alpha will be high if the scale is highly

correlative (Hair et al., 1998) Unidimensionality is defined as the existence of one construct

of underlying a set of items (Garver and Mentzer, 1999) Unidimensionality should be test

before doing reliability tests because reliability such as Cronbach alpha does not ensure

unidimensionality but instead assumes it exists (Hair et al., 1998)

 Step 2: Using the EFA tests the convergence of variables in the model In the current

research, the main assessment method is exploratory factor analysis (EFA) There are two basic

methods used for extracting factors in EFA, common factor analysis and principal component

factor analysis

EFA with principal component, eigenvalue >= 1 and varimax rotation was applied to

6 constructs under investigation (Conway and Huffcutt, 2003) The main purpose of this step is

to see whether the scale for each constructs under investigation is unidimensional or

multidimensional For a scale to be empirically unidimensional, the factor analysis must result

in only one factor extracted Moreover, item with low factor loading < 0.40 were eliminated

because they do not converge properly with the latent construct they were designed to measure

(Hair et al., 1998)

 Step 3: Analysis of linear regression for the intensity of the impact of the independent

variables on the dependent variable Since then, will examine the appropriateness of the model,

building multiple regression models, testing the hypothesis

3.3 Measuring instrument

3.3.1 Minesota satisfaction Questionnaire (MSQ)

Responses are scored on a five-point scale ranging from 1 for ―strongly disagree‖, 2 for

―disagree‖, 3 for ―neutral‖, 4 for ―agree‖, and 5 for ―strongly agree‖

 Advancement

Adv01 The opportunities for advancement on this job

Weiss, Dawis, England, and Lofquiest (1967), Sungmin Hyun (2009).

Adv02 The chances of getting ahead on this job

Adv03 The way promotions are given out on this job

Adv04 The chances for advancement on this job

 Resposibility

Res05 The chance to be responsible for planning my work

Weiss, Dawis, England, and Lofquiest (1967), Sungmin Hyun (2009)

Res06 The chance to make decisions on my own

Res07 The chance to to responsible for the work of others

Res08 The freedom to use my own judgment

Res09 The responsibility of my job

 Recognition

Rec10 The way I am noticed when I do a good job

Weiss, Dawis, England, and Lofquiest (1967), Sungmin Hyun (2009)

Rec11 The way I get full credit for the work I do

Rec12 The recognition I get for the work I do

Rec13 The way they usually tell me when I do my job well

Rec14 The praise I get for doing a good job

 Achievement

Code Items Source

Ach15 Being able to see the result of the work I do

Weiss, Dawis, England, and Lofquiest (1967), Sungmin Hyun (2009)

Ach16 Being able to take pride in a job well done

Ach17 Being able to do something worthwhile

Ach18 The chance to do my best at all times

Ach19 The feeling of accomplishment I get from the job

 Growth

Gro20 I am proud to work in my company because I feel I

have grown as a person

Teck Hong Tan and Amna Waheed (2011) Gro21 My job allows me to grow and develop as a person

Gro22 My job allows me to improve my experience, skills

and performance

3.3.2 Employee retention

Ret23 I‘m planning on working for another company within a

period of three years

Filip Dochy, Maya Michielsen, Bastiaan Moeyaert (2009)

Ret24 Within this company my work gives me satisfaction

Ret25 If I wanted to do another job or function, I would look

first at the possibilities within this company

Ret26 I see a future for myself within this company

Ret27 If it were up to me, I will definitely be working for this

company for the next five years

Ret28 If I received an attractive job offer from another

company, I would take the job

Ret29 The work I‘m doing is very important to me

Ret30 I love working for this company

3.4 Chapter summary

This chapter outlined the research design, the characteristic of the sample, the method used to

collect the data, the measuring instruments and statistical techniques to test the research

hypotheses

CHAPTER 4 : DATA ANALYSIS AND FINDINGS

The previous chapter describes the research design, the operationalization of constructs and the

measurement scales used in this study This chapter presents sample characteristics, the

assessment and refinement of these measurement scales, the results from statistical estimation,

the discussion and managerial implications

4.1 Sample characteristics

As mentioned in the previous chapter, the data were collected from 250 questionnaire delivered

through banks in Binh Duong province After filtering, a number of questionnaires were

eliminated due to many missing The data were then based on 228 questionnaires – the sample

The following sections describe the main characteristics of the sample

4.1.1 Gender:

There are 31.6 % or 72 male respondents and 68.4% or 156 female respondents These

percentages reflect the ratio of female in the banking industry is 2/3

Table 3 : Descriptive Statistics by gender

Gender

Percent Valid

4.1.2 Age:

Base on the data, age of employees can divide in to four groups:

1 Less than 25 year old: There were 48.7% or 111 people are under 25 years old They are

new employees in the company

2 Between 25 and 35 year old: there were 31.1% or 71 people They are senior employees

in the company They have experience in banking industry

3 Between 36 and 45: There were 9.2% or 21 people They are supervisors

4 Greater than 45: There were 11% or 25 people, they may be the managers of the banks

Table 4: Descriptive Statistics by age

According to survey results, company employees account for 80.3% (n=183) and the remaining

19.7% respondents was manager/supervisor (n=45) This structure shows that the banks focus on

supervision on their transaction

Table 5: Descriptive Statistics by working position

4.2 Assessment of measurement scales

The process of assessment and refinement of measurement scale are implemented using SPSS

20.0 software EFA and Cronbach alpha were used to assess unidimentionality and reliability

The criteria of refinement of item included factor loading > 0.40, item-total correlation > 0.3,

Cronbach alpha > 0.60, % of variance (Hair et al., 1998)

4.2.1 Testing reliability of scales

Before using EFA, research data will be tested this Cronbach Alpha, to test the reliability of the

scale components for employee retention Through testing results show that the variable

component to measure employee retention are Corrected Item-Total Correlation

> 0.3 and Cronbach's alpha > 0.6

Particularly, two items of retention have Corrected Item-Total Correlation < 0.3 (Corrected

Item-Total Correlation = 0.015 and -.007) and, so they are eliminated (Corrected Item-Total

Advancement

(Alpha =0.915)

Responsibility

(Alpha =0.884)

Res05 The chance to be responsible for planning my work .807

Res07 The chance to to responsible for the work of others 688

Recognition

(Alpha =0.894)

Rec13 The way they usually tell me when I do my job well 787

Achievement

(Alpha =0.910)

Ach18 The chance to do my best at all times 814

Growth

(Alpha =0.894)

Gro20 I am proud to work in my company because I feel I

Gro22 My job allows me to improve my experience, skills

Retention

First time

(Alpha =0.778)

Ret23 I‘m planning on working for another company

Ret24 Within this company my work gives me satisfaction .761

Ret25 If I wanted to do another job or function, I would

look first at the possibilities within this company .655

Ret27 If it were up to me, I will definitely be working for

Ret28 If I received an attractive job offer from another

Retention

Second time

(Alpha =0.917)

Ret24 Within this company my work gives me satisfaction .825

Ret25 If I wanted to do another job or function, I would

look first at the possibilities within this company

.733

Ret27 If it were up to me, I will definitely be working for

this company for the next five years

.705

4.2.2 Exploratory Factor Analysis (EFA)

4.2.2.1 EFA for all scale of antecedent factors

In this procedure, Item loaded highly on more than two factors were eliminated, loading of

items smaller threshold value of 0.40 are eliminated, % of variance > 50% and eigenvalue > 1;

KMO (Kaiser-Meyer-Olkin) is between 0.5 and 1 (0.5 <KMO <1) Significance

level of Bartlett's Test of Sphericity ≤ 0.05, there is a statistically significant (Al Jabnoun &

Tamimi (2003)

Table 7: KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling

Table 9: Rotated Component Matrix(a)

Rotated Component Matrix a

Extraction Method: Principal Component Analysis

Rotation Method: Varimax with Kaiser Normalization

a Rotation converged in 6 iterations

4.2.2.2 EFA for Retention

Table 10: Result of EFA Retention

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling

Cumulative

% of Variance Cumulative %

Table 11: Summary results of testing scales

Alpha

% of Variance Assessment

4.3 Testing model and hypotheses

4.3.1 Testing model

Results of regression analysis are used to test hypotheses of the study Before conducting linear

regression analysis we consider the linear correlation between the independent and dependent

variable, considering the general relationship between each independent variable with the

dependent variable and the independent variables up together