STUDY ON EMPLOYEE SATISFACTION ABOUT SALARY, BONUS AND REMUNERATION POLICIES AT DONG THANH TECHNOLOGY CO , LTD

DUY TAN UNIVERSITY
INTERNATIONAL SCHOOL
PSU DIVISION
------------------

UNDERGRADUATE THESIS

STUDY ON EMPLOYEE SATISFACTION ABOUT SALARY,
BONUS AND REMUNERATION POLICIES AT DONG
THANH TECHNOLOGY CO., LTD


MAJOR

: BUSINESS ADMINISTRATION

MENTOR

: LE THI KHANH LY

STUDENT

: HOANG THI NGOC TRANG

CLASS

: K24PSU-QTH4

ID NUMBER : 24202808170

Danang, May 2022

TABLE OF CONTENTS



4

CHAPTER 1: INTRODUCTION
1.1 REASONS FOR CHOOSING A RESEARCH TOPIC
Firstly, the issue of salary, bonus and personnel treatment is
certainly not strange to those who have been participating in the
labor market. This is one of the important elements of Human
Resource Management.
According to research, the salary, bonus and remuneration
policy is one of the top reasons why employees choose to work or
quit.
Second, the study of employee satisfaction helps managers plan
good employee retention and development policies, make employees
more satisfied and limit the phenomenon of "brain drain".
Therefore, in order to assess employee satisfaction about salary,
bonus and remuneration, I boldly choose the topic "Study on
employee satisfaction about salary, bonus and remuneration policies
at the Company." Dong Thanh Technology Co., Ltd”

1.2 RESEARCH OBJECTIVES
Systematize old theories and models related to the topic. From
there, build a new research model, examine the level of satisfaction


5

as well as determine the factors that affect the employee's satisfaction
with the salary and bonus policy.
Proposing a number of solutions to improve employee
satisfaction and efficiency in human resource management of Dong
Thanh Technology Co., Ltd.

1.3 SUBJECT AND SCOPE OF RESEARCH

•

Research subjects
- Subject of research: Satisfaction with salary, bonus and

remuneration policies at Dong Thanh Technology Co., Ltd.
- Survey subjects: employees at Dong Thanh Technology Co.,
Ltd.

•

Research period: The topic was studied during the internship
period from February 14, 2022 to May 20, 2022.

•

Research space: Dong Thanh Technology Co., Ltd.

1.4 RESEARCH METHODS


6

•

Qualitative research

•

Quantitative research

1.5 SIGNIFICANCE OF THE STUDY
Thesis consists of 5 chapters
Chapter 1: Introduction
Chapter 2: Research overview
Chapter 3: Research Methods
Chapter 4: Research results
Chapter 5: Conclusion and solutions.


7

CHAPTER 2 : RESEARCH OVERVIEW
2.1 THEORETICAL BASIS OF SATISFACTION WITH THE
POLICY OF SALARY, BONUS AND REMUNERATION OF
PERSONNEL
2.1.1 Theory of employee satisfaction
2.1.2 Theory of salary, bonus and remuneration policies for
personnel
2.2MODEL OF PREVIOUS RESEARCH
2.2.1 Research by Nguyen Thi Hong (2015)
5 factors affecting the level of employees' satisfaction is:

salary; bonus; allowances, subsidize and welfare; compensation
through work and compensation through work environment.
2.2.2 Research by Vu Thuy Duong and Hoang Van Hai (2011)
Pointed out 6 factors: salary; bonus; stock; allowance;
subsidize; welfare affect employee satisfaction.
2.2.3 Research by Nguyen Khac Hoan (2010)


8
Pointed out 5 factors affecting employee's work motivation:
Compensation through work environment; salary bonus and welfare;
work arrangement; training and advancement opportunities and
career prospects.
2.2.4 Research by Nguyen Thi Thuy Quynh (2012)
Pointed out 7 factors: nature of work; promotion training;
leader; colleague; salary, bonus; welfare; compensation through work
environment affects employee satisfaction.

2.3 SUMMARY OF RESEARCH MODELS
2.4 PROPOSED RESEARCH MODEL


9
H1

Salary

H2

Bonus

H3
Employee satisfaction on Salary, bonus & remuneration

Allowances, subsidies and welfare

H4
Training and advancement opportunities

H5
Compensation through work environment

Figure 2.5: Research model proposes employee satisfaction about
salary, bonus and remuneration policies.

2.4.1 Salary
H1: Salary has a positive effect on employee satisfaction in
terms of salary, bonus and remuneration policies.
2.4.2 Bonus
H2: Bonus has a positive effect on employee satisfaction in
terms of salary, bonus and remuneration policies.


10

2.4.3 Allowances, subsidies & welfare
H3: Allowances, subsidies & welfare has a positive effect on
employee satisfaction in terms of salary, bonus and remuneration
policies.
2.4.4 Training and advancement opportunities

H4: Training and advancement opportunities has a positive
effect on employee satisfaction in terms of salary, bonus and
remuneration policies.
2.4.5 Compensation through work environment
H5: Compensation through work environment has a positive
effect on employee satisfaction in terms of salary, bonus and
remuneration policies.
2.4.6 Employee satisfaction on salary, bonus and remuneration
policies


11

CHAPTER 3: RESEARCH METHODS
3.1 COMPANY OVERVIEW
3.1.1 Overview of the formation and development of the
company
3.1.1.1 General introduction

•

Company name: Dong Thanh Technology Co., Ltd

•

Charter capital: 10,000,000,000 VNĐ

•

Field of activity: Installation of industrial mechanical, electrical

and refrigeration systems

•

Business registration certificate: Business code: 4103003187.
First registered on April 8, 2019. Register for the 3rd change on
12/25/2020.

3.1.1.2 Vision, mission
3.1.1.3 Core values
3.1.1.4 The process of formation and development
3.1.2 Organizational structure and functions of each department


12
3.1.3 Results of the company's production and business activities
3.1.4 Labor situation of the company
3.1.5 Salary, bonus and remuneration policy of the company
3.1.5.1 Salary policy
3.1.5.2 Bonus policy
3.1.5.3 Remuneration policy

3.2 CONSTRUCTION AND MEASUREMENT OF THE
PROPOSED RESEARCH VARIABLES
3.2.1 Salary
Table 3.5: Scale for the factor variable “Salary”
Encod
e
S1
S2

S3
S4

Salary

Source

Salaries are commensurate with
work results
The company pays salarys on time
The company has a reasonable
salary increase regime

Pham Thi Thanh
(2015)

Convenient payment method

Nguyen Thi Hong
(2015)


13
3.2.2 Bonus
Encod
e

Table 3.6: Scale for the factor variable “Bonus”
Bonus
Source

B1

The reward policy is fair, clear and
satisfactory

B2

There are many forms of rewards

B3
B4

Vu Ngoc Sang
(2014)
Nguyen Thi Hong
(2015)

The reward level is worthy of the
contribution
The bonus at the company is very
attractive

Pham Thi Thanh
(2015)

3.2.3 Allowances, subsidies and welfare
Table 3.7: Scale for the factor variable “Allowances, subsidies and
Encod
e

W1

W2
W3
W4
W5
W6

welfare”
Allowances, subsidies and welfare
The company has different levels of
allowances, various allowances and
benefits in accordance with job
characteristics
Fully implement insurance policies.
The company's various and attractive
allowances, subsidies and welfare
programs
Cool and free parking space
Organizing annual trips for employees
Welfare shows the company's thoughtful
attention to employees

Source
Pham Thi
Thanh
(2015)
Nguyen Thi
Hong
(2015)

Vu Ngoc
Sang
(2014)


14
3.2.4 Training and advancement opportunities
Table 3.8: Scale for the factor variable “Training and advancement
opportunities”
Encod
Training and advancement
e
opportunities
P1
The company always creates conditions
for learning to improve knowledge and
working skills
There are many opportunities for
P2
promotion
P3
Clear promotion policy
3.2.5 Compensation through work environment

Source

Phạm Thị
Thanh (2015)

Table 3.9: Scale for the factor variable “Compensation through

Encod
e
CTE1
CTE2
CTE3
CTE4

work environment”
Compensation through work environment

Source

The number of tasks assigned in a day is
reasonable
Provide adequate equipment to serve the
work
The company regularly organizes cultural,
artistic and sports movements to
encourage employees to participate

Pham Thi
Thanh
(2015)

Feeling comfortable and safe at your
workplace

Vu Ngoc
Sang
(2014)

3.2.6 Employee satisfaction on salary, bonus and remuneration
policies
Table 3.10 Scale for the factor variable “Employee satisfaction on
Encod
e

salary, bonus and remuneration policies”
Employee satisfaction with
Source
remuneration policy


15
SA1

Satisfied with the salary and bonus
policy
Satisfied with the policy of
SA2
allowances, allowances and benefits
Satisfied with the training and
SA3
promotion policy
Satisfied
with
the
working
SA4
environment

3.3 QUALITY RESEARCH

Pham Thi
Thanh (2015)
Vu Ngoc Sang
(2014)

3.3.1 Objectives of qualitative research
3.3.2 Design of qualitative research
3.4 QUANLITIVE RESEARCH
3.4.1 Objectives of qualitative research
3.4.2 Quantitative study design
3.4.3 Information collection process
3.4.4 Sample size
We estimate that the total number of ballots distributed is 170
and collected 170 votes, after screening the number of votes used for
analysis is 160.
3.5 QUESTIONNAIRE
The survey questionnaire includes all 25 questions including 2
main parts:
(1) Survey part ( Likert scale)
(2) Personal information


16
3.6 SOME METHODS OF DATA ANALYSIS
3.6.1 Descriptive statistics
3.6.2 Testing of Cronbach's Alpha scale
3.6.3 Factor exploratory analysis
3.6.4 Build regression equation

3.6.5 Test the research hypothesis
3.6.6 Check the correlation phenomenon of residuals

CHAPTER 4: RESEARCH RESULTS
4.1 QUALITATIVE RESEARCH RESULTS
All observed variables are agreed 6/6 from the discussion group.
4.2 SAMPLE DESCRIPTION
4.2.1 Gender
4.2.2 Age
4.2.3 Education level
4.2.4 Income
4.2.5 Test the relationship between gender and education level
4.2.6 Test the relationship between gender and age
4.3 TESTING THE RELIABILITY OF THE RANGE WITH
CRONBACH’S ALPHA
4.3.1 Cronbach's Alpha test for independent variables
4.3.1.1 Cronbach's Alpha test for the factor “Salary”
Table 4.11: Cronbach's Alpha Test of the Salary Factor


17
Reliability Statistics
Cronbach's Alpha

N of Items

.884

4

Item-Total Statistics
Scale Mean

Scale

Corrected

Cronbach's

if Item

Variance if

Item-Total

Alpha if Item

Deleted

Item Deleted

Correlation

Deleted

S1

9.66

9.256

.704

.867

S2

9.91

7.539

.872

.799

S3

9.79

10.194

.564

.913

S4

9.92

7.547

.872

.799

4.3.1.2 Cronbach's Alpha test for the factor "Bonus"
Table 4.12: Cronbach's Alpha Test of Bonus factor
Reliability Statistics
Cronbach's Alpha

N of Items

.832

4

Item-Total Statistics
Scale Mean

Scale

Corrected Item-

Cronbach's

if Item

Variance if

Total

Alpha if Item

Deleted

Item Deleted

Correlation

Deleted

B1

10.88

6.810

.646

.796

B2

10.31

5.572

.693

.779

B3

10.91

6.563

.667

.786

B4

10.86

6.648

.657

.790


18

4.3.1.3 Cronbach's Alpha test for the factor “Allowances, subsidies
and welfare”
Table 4.13: Cronbach's Alpha test of the factor Allowances,
subsidies and welfare
Reliability Statistics
Cronbach's Alpha

N of Items

.891

6

Item-Total Statistics
Scale Mean

Scale

Corrected Item-

Cronbach's

if Item

Variance if

Total

Alpha if Item

Deleted

Item Deleted

Correlation

Deleted

W1

18.84

15.856

.750

.866

W2

19.23

17.433

.699

.874

W3

18.84

15.554

.765

.863

W4

19.28

17.194

.710

.873

W5

18.79

16.530

.707

.873

W6

19.24

18.031

.642

.883

4.3.1.4 Cronbach's Alpha test for the factor “Training and
advancement opportunities”
Table 4.14: Cronbach's Alpha test of the factor Training and
advancement opportunities


19
Reliability Statistics
Cronbach's Alpha

N of Items

.886

3

Item-Total Statistics
Scale Mean

Scale

Corrected

Cronbach's

if Item

Variance if

Item-Total

Alpha if Item

Deleted

Item Deleted

Correlation

Deleted

P1

7.61

3.597

.871

.754

P2

7.91

4.546

.608

.975

P3

7.50

3.396

.878

.745

4.3.1.5 Cronbach's Alpha test for the factor "Compensation through
work environment"
Table 4.15: Cronbach's Alpha test of the Compensation through
work environment
Reliability Statistics
Cronbach's Alpha

N of Items

.850

4

Item-Total Statistics
Scale Mean

Scale

Corrected

Cronbach's

if Item

Variance if

Item-Total

Alpha if Item

Deleted

Item Deleted Correlation

Deleted

CTE1

11.20

6.840

.723

.794

CTE2

11.19

7.436

.681

.813

CTE3

10.88

7.091

.721

.795


20
CTE4

10.58

7.340

.633

.833

4.3.2 Cronbach's Alpha test for the dependent variable
"Employee satisfaction"
Table 4.16: Test Cronbach's Alpha factor Employee satisfaction.
Reliability Statistics
Cronbach's Alpha

N of Items

.934

4

Item-Total Statistics
Scale Mean

Scale

Corrected

Cronbach's

if Item

Variance if

Item-Total

Alpha if Item

Deleted

Item Deleted Correlation

Deleted

SA1

10.21

4.395

.832

.918

SA2

10.41

4.043

.863

.908

SA3

10.70

4.174

.845

.914

SA4

10.92

4.251

.839

.915

4.3.3 Summary after checking the reliability of Cronbach's Alpha
4.4 EFA FACTOR DISCOVERY ANALYSIS
4.4.1 Factor analysis (EFA) for the independent variable
4.4.1.1 Testing the suitability of the EFA model (Kaiser-Meyer-Olkin)
4.4.1.2 Test of correlation between observed variables (Bartlett's
test)


21
Table 4.17: KMO-EFA coefficient of employee satisfaction
component
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.

.875

Approx. Chi-Square
Bartlett's Test of Sphericity

3001.278

df

210

Sig.

.000

4.4.1.3 Test of extracted variance of factors (% Cumulative
variance)
4.4.1.4 Test of Factor loading
4.4.2 Factor Analysis (EFA) for the dependent variable
“Employee satisfaction”
4.4.2.1 Integration test of EFA (Kaiser-Meyer-Olkin) factor analysis
model
4.3.2.2 Test the correlation between observed variables (Bartlett's
Test)
Table 4.20: KMO-EFA coefficient of employee satisfaction factor
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
Bartlett's Test of
Sphericity

Approx. Chi-Square

.842
539.090

df
Sig.

6
.000

4.4.2.3 Test of extracted variance of factors (% Cumulative
variance)
Table 4.21: Total variance extracted of employee satisfaction factor


22
nent
Compo

Total Variance Explained
Total

1

3.341

83.534

83.534

2

.296

7.412

90.946

3

.199

4.985

95.931

4

.163

4.069

100.000

% of

Cumulati Total

Variance

ve %

% of

Cumulati

Variance

ve %

83.534

83.534

3.341

Extraction Method: Principal Component Analysis.
4.4.2.4 Test of Factor loading
Table 4.22: Factor loading EFA of the factor Employee satisfaction
Component Matrixa
Component
1
SA2

.926

SA3

.914

SA4

.910

SA1

.905

Extraction Method: Principal Component Analysis.
a. 1 components extracted.
4.5 MULTI-VARIABLE LINEAR REGRESSION ANALYSIS
4.5.1 Check the correlation matrix between the factors
Table 4.23: Test results of correlation coefficient r
Correlations
SA

S

B

W

P

CTE


23
Pearson

1

.744**

.746**

.745**

.779**

.744**

.000

.000

.000

.000

.000

160

160

160

160

160

1

**

**

**

.465**

Correlatio
SA

n
Sig. (2tailed)
N
Pearson

160
.744

**

.402

.487

.437

Correlatio
S

n
Sig. (2-

.000

.000

.000

.000

.000

tailed)
N
Pearson

160

160

160

160

160

160

.746**

.402**

1

.592**

.545**

.444**

.000

.000

.000

.000

.000

160

160

160

160

160

160

.745**

.487**

.592**

1

.542**

.478**

.000

.000

.000

.000

.000

160

160

160

160

160

160

**

**

**

**

1

.581**

Correlatio
B

n
Sig. (2tailed)
N

Pearson
Correlatio

W

n
Sig. (2tailed)
N

P

Pearson
Correlatio
n

.779

.437

.545

.542


24
Sig. (2-

.000

.000

.000

.000

.000

160

160

160

160

160

160

.744**

.465**

.444**

.478**

.581**

1

.000

.000

.000

.000

.000

160

160

160

160

160

tailed)
N
Pearson
Correlatio
CT
E

n
Sig. (2tailed)

N

160

**. Correlation is significant at the 0.01 level (2-tailed).

4.5.2 Testing of model fit (Adjusted R Square, ANOVA)
4.5.2.1 Model Interpretation Level (Adjusted R Square)
Table 4.24: R Square analysis of the fit of the regression equation
Model Summaryb
Std.
Adjuste
R
Error of
DurbinModel
R
dR
Square
the
Watson
Square
Estimate
1
.975a
0.951
0.949 0.15258
1.92
a. Predictors: (Constant), CTE, B, S, W, P
b. Dependent Variable: SA

25
From the table above, we can see that adjusted R2 = 0.951
(test, Sig = 0.000 ≤ 0.05). 95.1% change in SA_employee
satisfaction is explained by 5 independent variables
4.5.2.2 Model fit: Analysis of variance ANOVA
Table 4.25: ANOVA analysis of the fit of the regression equation
ANOVAa
Model

Sum of

df

Mean

Squares
Regression
1

Sig.

Square

69.286

5

13.857

3.585

154

.023

72.871

159

Residual
Total

F
595.211

.000b

a. Dependent Variable: SA
b. Predictors: (Constant), CTE, B, S, W, P
99% confidence (Sig ≤ 0.01). Show that the theoretical model
is consistent with reality. The independent variables have a linear
correlation with the dependent variable in the model
4.5.4 Testing of regression coefficients and multicollinearity
(Multiple Collinearity)
Table 4.27: Regression coefficient of employee satisfaction factors
Coefficientsa

Model

Unstandardized
Coefficients
B

Std.
Error

Standa
rdized
Coeffi
cients
Beta

t

Sig.

Collinearity
Statistics
Tolera
nce

VIF