Các yếu tố ảnh hưởng đến lòng trung thành của nhân viên tại công ty trách nhiệm hữu hạn thiết bị viễn thông ANSV

..

ĐẠI HỌC QUỐC GIA HÀ NỘI
KHOA QUẢN TRỊ VÀ KINH DOANH
---------------------

VŨ THIỆN NHƯỢNG

FACTORS INFLUENCING THE EMPLOYEE’S LOYALTY
AT ANSV COMPANY LTD,
CÁC YẾU TỐ ẢNH HƯỞNG ĐẾN LÒNG TRUNG THÀNH
CỦA NHÂN VIÊN TẠI CÔNG TY TRÁCH NHIỆM
HỮU HẠN THIẾT BỊ VIỄN THÔNG ANSV

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

HÀ NỘI - 2019


ĐẠI HỌC QUỐC GIA HÀ NỘI
KHOA QUẢN TRỊ VÀ KINH DOANH
---------------------

VŨ THIỆN NHƯỢNG

FACTORS INFLUENCING THE EMPLOYEE’S LOYALTY
AT ANSV COMPANY LTD,
CÁC YẾU TỐ ẢNH HƯỞNG ĐẾN LÒNG TRUNG THÀNH
CỦA NHÂN VIÊN TẠI CÔNG TY TRÁCH NHIỆM
HỮU HẠN THIẾT BỊ VIỄN THÔNG ANSV
Chuyên ngành: Quản trị kinh doanh

Mã số: 60 34 01 02
LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

NGƯỜI HƯỚNG DẪN KHOA HỌC: TS. TRẦN HUY PHƯƠNG

HÀ NỘI - 2019


WARNING
Dear Teacher, My name is Vu Thien Nhuong, Master's Degree, Course 15 Specialization in Business Administration - Hanoi National University.
I pledge the thesis "Factors influencing employee’s loyalty at ANSV Co.,
Ltd" is my own research work.
Relevant theoretical bases and citations in the dissertation contain references,
sources and sources
The data, results in the thesis are directly collected, statistics and processed
by me
Hanoi, July 3rd, 2019
Student

Vu Thien Nhuong

i


THANK YOU
First of all, I would like to express my deep gratitude to Dr. Tran Huy
Phuong, who wholeheartedly guided and assisted me during the process of
implementing this graduation thesis.
I sincerely thank Teachers and Teachers of Hanoi National University for
conveying valuable knowledge to me during my time at the school.

I would also like to thank all of you and your colleagues who have been
working at ANSV Co., Ltd, who helped me answer the survey questionnaire as a
data source for analyze and produce research results of this graduate thesis
I would like to express my gratitude to the Family and Friends for helping
me and encouraging me, to help me complete this thesis.
In the process of implementation, despite the utmost efforts to complete the
thesis, exchange and absorb the comments of teachers and friends, consult many
documents but also inevitable errors. We hope to receive valuable information from
your teachers and readers.
I wish you all teachers and students a lot of health and happiness! Sincerely
thank.
Hanoi, July 3rd, 2019
Student

Vu Thien Nhuong

ii


TABLE OF CONTENT

LIST OF TABLE....................................................................................................... i
LIST OF FIGURE................................................................................................... iii
LIST OF DIAGRAM .............................................................................................. iv
PREAMBLE ..............................................................................................................1
CHAPTER 1: THEORETICAL BASIS OF THE LOYALTY OF STAFF AND
RESEARCH MODEL ..............................................................................................7
1.1 The concept of loyalty .........................................................................................7
1.1.1. What is loyalty? .............................................................................................7
1.1.2. Some thesis about loyalty ..............................................................................7

1.2. Expression of loyalty, measurement of loyalty [12] ........................................8
1.3. The role and benefits of loyalty to the organization [9] ..................................9
1.4. Factors affecting loyalty ..................................................................................10
1.4.1. Salary and benefits .......................................................................................10
1.4.2. Work environment [6] .................................................................................13
1.4.3. Colleague [5] ...............................................................................................13
1.4.4. Leadership style [13] ...................................................................................13
1.4.5. Interest in work ............................................................................................14
1.4.6. Recruitment of personnel .............................................................................14
1.4.7. Support of the organization .........................................................................14
1.4.8. Authorize .....................................................................................................14
1.4.9. Corporate culture .........................................................................................15
1.4.10. Training and developing [11] ....................................................................15
1.5. Theories aimed at understanding the factors affecting employee loyalty ..15
1.5.1. Maslow's hierarchy of needs ........................................................................15
1.5.2. Two-factor theory by F. Herzberg ...............................................................17
1.5.3. Expected theory of Victor H.vroom ............................................................17

iii


1.5.4. Theory of fairness ........................................................................................18
1.6. Some previous research on employee loyalty ................................................19
1.7. Research model.................................................................................................26
Summary of chapter 1 ............................................................................................27
CHAPTER 2: CURRENT STATUS OF EMPLOYEE’S LOYALTY AT ANSV .28
2.1. General overview of ANSV Co., Ltd. .............................................................28
2.1.1. The process of formation and development of the Company......................28
2.1.2. Organizational structure of the Company ....................................................30
2.1.3. Some main business results of the Company ..............................................30

2.2. Research design ................................................................................................32
2.2.1 Research method ...........................................................................................32
2.2.2 Research process ...........................................................................................33
2.3. Current status of loyalty analysis at ANSV Co., Ltd. ...................................38
2.3.1 Create loyalty for employees through Rewards and recognition .................38
2.3.2 Creating loyalty for employees through Income ..........................................38
2.3.3 Creating loyalty for employees through the Work Environment .................39
2.3.4 Creating loyalty for employees through Colleagues Relationship ...............39
2.3.5 Creating loyalty for employees through Training and promotion opportunities 39
2.3.6 Create loyalty for employees through Relationship with superiors .............40
2.4. Research process ..............................................................................................40
2.5 Design quantitative research ............................................................................41
2.5.1 Methods of information collection and sample size .....................................41
2.5.2 Methods of data analysis ..............................................................................41
2.6 Design qualitative research ..............................................................................45
2.7. Description of the scale ....................................................................................46
2.8. Overall assessment of employee loyalty status at ANSV ..............................49
2.8.1. Result ...........................................................................................................49
2.8.2. Limited and causes ......................................................................................49
2.9 Linear regression analysis ................................................................................50
2.9.1. Regression model for component variables.................................................50
iv


2.9.2. Regression model with the participation of qualitative variables ...............58
Summary chapter 2 .................................................................................................61
CHAPTER 3: SUGGESTING SOLUTIONS TO MAINTAIN AND IMPROVE
THE LOYALTY OF STAFF AT THE ANSV COMPANY ...............................62
3.1 Research sample information ..........................................................................62
3.2 Evaluate the reliability of the scale ..................................................................67

3.2.1 Cronbach’s Apha inspection for component scales ......................................67
3.2.2 Factor analysis (EFA) ...................................................................................72
3.4. Testing the differences according to personal characteristics to employee
loyalty .......................................................................................................................78
3.4.1 Gender differences ........................................................................................79
3.4.2 Age difference...............................................................................................79
3.4.3 Differences in education level ......................................................................80
3.4.4 Differences in seniority.................................................................................81
3.5. Conclude............................................................................................................82
3.6 Proposal ..............................................................................................................83
3.6.1. For Compensation factors ............................................................................83
3.6.2. For Leadership factor ...................................................................................85
3.6.3. For work nature elements ............................................................................88
3.7 Contribution of the topic ..................................................................................89
3.8 Limitations of the topic and the next research direction ...............................89
Summary of chapter 3 ............................................................................................90
CONCLUSION ........................................................................................................91
LIST OF REFERENCES .......................................................................................92
APPENDIX

v


LIST OF TABLE

Table 1Motivating and maintaining elements of F.Herzberg ...................................17
Table 2 Extracting business results from 2016 to 2018 ............................................31
Table 3 Scale of working environment components .................................................35
Table 4 Component scale Training and promotion ...................................................36
Table 5 Scale of Leadership component ...................................................................36

Table 6 Scale of Colleagues components .................................................................37
Table 7 Scale of components Nature of work ...........................................................38
Table 8 Employee Loyalty Scale ..............................................................................38
Table 9 Scale content ................................................................................................49
Table 10 Structure of survey sample by gender ........................................................62
Table 11 Structure of survey sample by educational level .......................................63
Table 12 Structure of survey samples by age ...........................................................64
Table 13 Structure of survey samples according to working seniority .....................65
Table 14 Structure of survey sample by job position................................................66
Table 15 Structure of survey samples by average income per month ......................67
Table 16 Cronbach’s Alpha coefficient of the Salary scale ......................................68
Table 17 Cronbach Alpha coefficient of the working environment scale ................69
Table 18 Cronbach alpha coefficient of scale Working environment after Env4 type ....69
Table 19 Cronbach alpha coefficient of scale Working environment after Env3 type ....69
Table 20 Cronbach’s Alpha coefficient of Training and promotion scale................70
Table 21 Cronbach Alpha coefficient of Leadership scale .......................................70
Table 22 Cronbach’s Alpha coefficient of Colleague scale ......................................71
Table 23 Cronbach's coefficient Alpha of the scale of work nature .........................71
Table 24 Cronbach Alpha coefficient of Loyalty scale ............................................72
Table 25 EFA results measure employee satisfaction ..............................................74
Table 26 EFA results scale of employee satisfaction after removing Pro5 observed
variable ......................................................................................................................75
Table 27 Results of EFA scale of employee satisfaction level after removing
i


observed variable Pro4, Pay1 ....................................................................................76
Table 28 Results of EFA scale of employee satisfaction level after removing
observed variable Cow5, Pay2, Sup5, Sup6, Pro6, Wor2 .........................................76
Table 29 Testing by KMO and Bartlett's method .....................................................77

Table 30 Results EFA loyalty scale ..........................................................................78
Table 31 Testing by KMO and Bartlett's method .....................................................78
Table 32 Regression results using the Enter method ................................................51
Table 33 Evaluation of conformity of the model ......................................................52
Table 34 Model conformity test table .......................................................................52
Table 35 Spearman test .............................................................................................55
Table 36 Durbin Watson statistics ............................................................................56
Table 37 Regression model with the participation of qualitative variables ..............78
Table 38 Testing the level of loyalty between men and women Independent
Samples Test .............................................................................................................79
Table 39 Table of verification of loyalty level by age Test of Homogeneity of
Variances ...................................................................................................................80
Table 40 Table of verification of loyalty level by cultural level ..............................81
Table 41 Table of verification of loyalty level by working seniority .......................81

ii


LIST OF FIGURE
Figure 1Calibration model in research of Turkyilmaz, Akman, Coskunozkan and
Pastuszak (2011) .......................................................................................................20
Figure 2Calibration model in Mehta's study, Singh, Bhakar & Sinha (2010) ..........22
Figure 3 Calibration model in the study of Ahmad Ismail Al-Ma’ani (2016) ..........22
Figure 4 Correction model in Ajami's study (1998) .................................................23
Figure 5 Calibration model in research by Kumar & Skekhar (2012) ......................23
Figure 6 Calibration model in the study of Athar Waqas et al (2017) ......................24
Figure 7 Calibration model in Ketbi's research (2006) .............................................24
Figure 8 Calibration model in the study of Nguyen Thi Thu Hang and Nguyen
Khanh Trang (2016) ..................................................................................................25
Figure 9 Calibration model in research by Nguyen Thi Thu Hang and Nguyen

Khanh Trang (2016), Tran Kim Dung (2005)...........................................................26
Figure 10 Research Model ........................................................................................26
Figure 11 Research process .......................................................................................32
Figure 12 Scale of remuneration components...........................................................35
Figure 13 Structure of survey sample by educational level ......................................63
Figure 14 Structure of survey samples by age ..........................................................64
Figure 15 Structure of survey samples according to working seniority ..................65
Figure 16 Structure of survey sample by job position ..............................................66
Figure 17 Structure of survey sample by average income / month ...........................67
Figure 18 Scatter chart between residuals and predicted values ...............................53
Figure 19 Frequency chart of standardized residuals................................................55
Figure 20 Q-Q Plot frequency chart of standardized residuals .................................55
Figure 21 P-P Plot frequency chart of standardized residuals ..................................56

iii


LIST OF DIAGRAM
Diagram 1 The organizational structure of the company ..........................................30
Diagram 2 Research Process .....................................................................................40
Diagram 3 Process of data analysis with SPSS.........................................................42

iv


PREAMBLE
1. The urgency of the topic
Every human resource is always an invaluable asset of any organization from
state management to private enterprises, from a small locality to a large country.
The integration leads to the rise of enterprises of all economic types that have made

the labor market rapidly formed. One sign that is easy to see is the increasing
mobility of enterprises among enterprises. The situation of highly qualified and
qualified employees often moves to high-wage places, better remuneration now not
only happens in sectors such as banking, telecommunications, information
technology , ... which is becoming a common problem, hurting most businesses.
A successful and efficient business always thanks to the contribution of good
and loyal staff. Therefore, to attract and maintain the human resources of managers
to implement human resource planning, change the salary, bonus policy, social
welfare, etc. and also ANSV Co., Ltd. must be an exception. However, managers
are still unable to avoid the departure of employees. According to the wage labor
report of ANSV Co., Ltd., the total number of unemployed workers in 2018 is 78,
of which professional and skilled employees account for 25% of the total number of
employees who leave, within the first 6 months of 2018 this figure accounted for
about 35%.
So what is the reason why employees of ANSV Co., Ltd are no longer
attached to the enterprise? What factors affect employee loyalty to the company? Is
the company's salary, bonus, social welfare, working environment, corporate
culture, leadership style, ... influencing their departure and leaders really care to the
rights of workers? Because of this concern, I chose the topic "Factors influencing
the employee’s loyalty at ANSV Co., Ltd." to conduct research on employee loyalty
to ANSV Co., Ltd, with the desire to contribute a small part in completing policies
to attract, maintain and develop the human resources of the company.
2. Overview of research situation
Studies of employee loyalty issues are seen on many perspectives and other
names. Research related to this issue mainly refers to factors affecting employee

1


loyalty, solutions to maintain and enhance employee loyalty to the organization.

Some typical research projects such as:
2.1. Situation of research abroad
In Aon Consulting's research is done annually on a national scale such as the
Commitment @ work study in the US since 1997, in Canada since 1999, in the UK
since 2000 and in Australia since 2002 shows that The close relationship between
employee satisfaction and their attachment to the organization. Aon Consulting
applied terrific theory to demand Maslow on the condition of the modern economy
and said that to enhance employee engagement with the organization, needs to
satisfy the needs of employees:
In the United States, employee satisfaction needs are categorized by: salary
and welfare, change management, training and development, organizational culture
and development path, balancing life.
In Canada and Australia the satisfaction of employees' needs is categorized
by: Safety, reward, social - loved, balanced work-life.
Research by Shruti and Nirmala (2016) investigates the impact of human
resource management practices on employee organizational commitment in
different sectors in India. Research shows how the practice of human resource
management brings advantages to employee commitment to organizational goals in
a global competitive market. The results show the elements of advancement,
satisfaction, job characteristics, communication, satisfaction of leaders, job
satisfaction, external exchange, internal and external exchange. and internal rewards
are positively and significantly related to cohesion among employees.
Meyer et al. (2000) also provided in their general analysis the results of research on
the causal factors of organizational loyalty. These factors include: leave of work and
awareness of leaving the organization, absence, work performance, civic behavior
in the organization, stress and conflict between work and family; In addition, they
presented an additional element related to workers, namely health and welfare
2.2. Researches in our country
Research by Tran Thi Kim Dung and Nguyen Thi Mai Trang (2007) argued

2


that the organization's leadership and cultural style affects the loyalty of specific
employees:
New leaders in substance affect employee loyalty, but this is not true in
foreign-invested companies, many employees still achieve good results but cannot
withstand the pressure working too high for a long time had to accept to switch to
another company.
Innovation culture: supporting with creating a supportive, goal-oriented
working environment, creating excitement for everyone has a very good effect to
retain employees. It has a positive effect on employee loyalty in all three types of
business ownership.
Administrative culture: administrative culture does not affect employee
loyalty in domestic enterprises but has an impact on employee loyalty in foreigninvested enterprises. When applying to foreign businesses, workers expect to work
in a professional environment, if this is not achieved, workers can easily leave the
business. On the contrary, when agreeing to work for domestic enterprises, workers
are more likely to mimic and accept the status of administrative desks, nonprofessional manners and practice of adapting to businesses.
Vu Khac Dat (2008) studied the factors affecting loyalty of office workers in
southern Vietnam Airlines also based on the research model of Tran Thi Kim Dung
but there are some adjustments accordingly. With the condition of Southern
Vietnam office Airlines, the author publishes the following six elements: Nature of
work, training-development, assessment, remuneration (salary and welfare),
working environment (combining two elements of Colleagues and working
environment), leadership. Research results show that the most powerful factor
affecting employee loyalty is the environmental factor. Both leadership and work
factors have a positive impact on employees' overall satisfaction as well as their
loyalty to the company.
Do Phu Tran Tinh et al. (2012) surveyed 200 workers working at agencies
and businesses in Ho Chi Minh City, concluding that promotion opportunities are

the most influential factor. to decide whether to continue to work for young

3


employees at the company, followed by reward and welfare policies, relationships
with leaders, working conditions and, ultimately, the relevance to career goals . This
study also confirms that income is not an important variable that determines the
attachment of young workers to enterprises.
Pham The Anh et al. (2016) in the article on Human Resource Management
and the cohesion of employees at enterprises gave the basic indicators of cohesion:
loyalty, pride, try. At the same time, the authors also analyzed three factors that
strongly influence the cohesion of workers: career development opportunities,
remuneration and job descriptions.
Tran Dinh Man Duy (2018) in the master thesis "Factors affecting the loyalty of
employees of Dong Tam Corporation". In my dissertation, the author has identified
factors that affect the loyalty of employees of Dong Tam Corporation such as
remuneration, working environment, training, advancement, leadership style,
colleagues, the nature of the work, the level of satisfaction of the employees ... On
that basis, the author deeply analyzed the influence of factors on the loyalty of
employees of Dong Tam Corporation. At the same time, the author proposes a
number of solutions to minimize negative effects and promote positive factors on
remuneration issues, the nature of work and leadership.
Dang Thi Hai (2017) in the master thesis "Factors affecting the loyalty of
employees of Beton 6 company". By presenting the theoretical basis and models of
research on loyalty, the author has developed a research methodology, which gives
an assessment of the factors affecting employee loyalty. Beton 6 company. Based
on the situation of analysis and evaluation, the author has proposed solutions to
strengthen the loyalty of Beton 6 employees.
3. Research gap

All of the above works have conducted research on many aspects related to
retaining employees in both theoretical and practical aspects. In general, studies
have mentioned the following issues:
 Giving factors affecting the cohesion of workers and the reasons they leave
the organization;

4


 Analyzing the job satisfaction of employees;
 Domestic studies have applied to the actual conditions of Vietnamese
workers in general;
Although there are many works related to the research topic, but these projects in
the implementation process as well as results are limited, subjective and objective
shortcomings are only to solve the problem of cohesion or job satisfaction issues for
employees in general.
The above works have not evaluated the reliability of the scale through factor
analysis, factor analysis for independent variables, factor analysis for dependent
variables. At the same time, the above works have not conducted to test the
differences according to personal characteristics to employee loyalty such as
gender, age, working position and seniority.
4. Research purpose
Employee loyalty is a deliberate commitment to further the best interests of
one’s employer, even when doing so may demand sacrificing some aspects of one’s
self-interest beyond what would be required by one’s legal and other moral duties.
A loyal employee is such that is willing to work in that organization,
thinking or believing that to work in the organization is the best option for him. For
this purpose, the employee tries his best for the success of the organization to ensure
that it survives.
Keep loyalty of employee makes business run smoothly. This thesis focuses

in how to make ANSV employee higher.

5. Research objectives
Based on research and analysis of factors affecting employee loyalty, thereby
providing solutions to maintain and improve employee loyalty to the company.
Systematize theoretical and practical issues of employee loyalty.
Analyzing factors of employee loyalty, the degree of influence of factors on loyalty,
to each individual.
6. Subject of research

5


Factors influencing the employee’s loyalty at ANSV Co., Ltd.
7. Scope of research
Scope of space: The study investigates factors affecting employee loyalty at
ANSV Co., Ltd.
Range of time:
With secondary data, the topic uses the actual data of ANSV Co., Ltd from 2017 to 2018.
With primary data, the collection process is prepared and implemented from
January to April 2019.
The thesis proposes solutions to retain employees of ANSV Co., Ltd. until 2023.
Scope of content: The thesis focuses on researching factors affecting employee
loyalty at ANSV Co., Ltd.
8. Research method
Secondary data: Dissertation uses data collected from internal documents,
reports and information of ANSV Co., Ltd. from 2017 - 2018, data sources
collected from outside such as central ministries, publications have been published
(textbooks, articles, magazines, internet, dissertations, ...).
Primary data: Quantitative method is used in the research phase by technical

interview directly with employees who have been working at ANSV Co., Ltd.
through detailed questionnaire according to rating scale 5 Corresponding level: 1 Completely disagree to 5 - Absolutely agree. Sampling method is random
probability. The survey results will be statistically and synthesized, and processed
by SPSS software to form an overall view of the status of retaining employees at
ANSV Co., Ltd., assisting Direction of feasible solutions.
9. Dissertation structure
In addition to the introduction and conclusion, the thesis consists of 3
chapters:
Chapter 1: The theoretical basis of employee loyalty and research design
Chapter 2: The status of employee loyalty at ANSV Co., Ltd.
Chapter 3: Proposing solutions to maintain and improve employee loyalty at ANSV
Co., Ltd.

6


CHAPTER 1: THEORETICAL BASIS OF THE LOYALTY OF STAFF AND
RESEARCH MODEL
1.1 The concept of loyalty
1.1.1. What is loyalty?
Loyalty is an employee who intends to stay long with the organization /
business; will stay with the same organization / business even if there is a relatively
more attractive salary offer (Stum 1999-2001).
1.1.2. Some thesis about loyalty
According to Johnson (2005), employees "are more professionally loyal to
employers" and "the nature of the relationship between employees and employers
has changed substantially and needs to be reevaluated. loyalty concept ”according
to Tran Thi Kim Dung & Nguyen Thi Mai Trang (2007, p.19-20)
There have been many studies of employee loyalty with many different
approaches.

According to Allen, N.J., & Meyer, J.P. (1990) focused on 3 psychological
states of employees when connected with the organization. Staff can be loyal to the
organization:
- Because of their true feelings, they will stay with the organization even if other
places pay higher wages
- Because they don't have a chance to find a better job
- And maybe because of the moral standards they pursue.
The Loyalty Research Center (1990) defined employee loyalty as employee
engagement with organizational success and believing that their best choice is to
work for this organization. Not only do they implement plans to survive with the
organization but they are also not proactive in seeking opportunities to change jobs
as well as not responding to other attractive offers. According to this definition,
employee loyalty is that they "want" to stay with the organization and they do not

7


plan to quit.
The intention to leave the employee's job is the intention to leave the current
working environment to switch to another working environment (Vo Quoc Hung &
Cao Hao Thi, 2010). In general, employees often work for an organization that
wants to meet their needs and feel satisfied with their work. Once the needs are not
met, feeling unsatisfied with the job, the intention to leave to find another
organization is inevitable. Thus, there is a correlation between demand and
satisfaction for work to the attachment, loyalty of employees to the organization.
(Tran Kim Dung, 2005). Therefore, it is necessary to present the theory of
employees' needs and satisfaction in order to consider the relationship with
employee loyalty, based on which hypotheses are proposed for this study.
1.2. Expression of loyalty, measurement of loyalty [12]
Firstly, tell your boss what your boss wants to hear the least: When

employees and bosses are farther away from their ranks, fewer employees will
disagree with the boss. For example, new employees who join the company often
absolutely comply with all boss's opinions and instructions without any comments. But
that doesn't mean they always feel satisfied. And when those employees' dissatisfaction
peaks, they often resolve themselves by quitting. Meanwhile, direct reporters who work
closely with their bosses may have mixed views with their boss. They are loyal
employees, willing to point out the wrong points of the boss, tell the boss what the boss
wants to hear the best with the willingness to want the job to be better.
Secondly, treat your boss as a person: A student can always watch his
teacher as an idol with a very standard and standard image. But the student is also
difficult to accept the image of the teacher he loves in the form of "morale" of an
ordinary person in society. Similarly, many employees look at the boss like a person
who is always strong, strong, powerful and often keeps distance from his boss. But
loyal employees do not place heavy relationships between bosses and employees that
way. They understand boss in every corner of their work and personal life. Loyal
employees understand that the boss always wants to help them achieve their career

8


goals and in their personal lives, expecting their employees to have the best. On the
contrary, they also want their boss to meet the best in their work and personal life.
Thirdly, never criticize your boss before others: Employees can criticize your
boss as a way to reduce stress but most people do this because they think your boss
is not superior to yourself. They also find ways to "erode" the respect that the boss
has worked so hard to deserve from everyone around. Loyal employees will not do
so. They didn't talk, bad boss said behind. They always show respect for the boss
even if the boss is not in front of them.
Fourth, show disagreement with your boss privately: Arguing and
disagreement are healthy for an organization. Loyal employees believe they can

freely share their views with their boss, analyzing the advantages and disadvantages
of their boss's decisions. They also believe that the boss is willing and eager to
listen to their comments for the sake of the boss and the company. However, unlike
loyal employees, they will do the above things with their boss skillfully and
privately.
Fifth, openly support all boss decisions: Even if you disagree with your boss about a
decision, loyal employees will not try to find a way to prove that your boss is
wrong. Conversely, in front of people, loyal employees will do everything to prove
their boss is doing the right thing.
Sixth, notice to the boss when he wants to quit his job: No boss wants to lose his
loyal employees. But sometimes, loyal employees are forced to say goodbye to bosses
and companies to pursue better opportunities, to enter a new field, to set up their own
company or just want to lifestyle changes. However, these employees always
understand that their departure will leave their boss and a hole in the staff and therefore,
they will foreshadow their plan so that the boss has enough time to prepare.
1.3. The role and benefits of loyalty to the organization [9]
As mentioned above, employee satisfaction is extremely important in any
organization, big or small. The satisfaction of employees has a two-way effect, both
with the organization and the employees themselves, but the level and intensity are
important.

9


For organizations, Employee satisfaction affects all aspects of corporate
operations including:
The first is increasing personnel performance. Employees who are satisfied with
the work will have better, more devoted, devoted attitude and active learning and
development in their work. This increases the overall productivity of the company and
helps the company achieve its goals

The second is to maintain and stabilize the human resources in the company,
satisfied employees will have a spirit of attachment to higher enterprises, less affected
by outside offers. Besides, employees will appreciate the collective benefits because
when they want to stick, they will "take care", "build" and "protect" their common
home.
Third, when employees are satisfied with their work, they will treat customers
better and therefore customer satisfaction is also greater.
Fourth, the staff will communicate the company outside and that helps the company
attract talents, build good image in the eyes of customers and partners.
Fifth, the Company will save money for training new candidates and recruiting
candidates
Sixth, the Company will minimize the errors in the process of work as well as
the process risks by more responsible, enthusiastic employees so they always strive to
do better their work. .
As for employees, the satisfaction of employees at work not only helps them
stick with businesses, but also reinforces their love of business. Employees will start to
care about their work instead of worrying about other issues, they feel responsible for
the organization and try to create better results to gain appreciation from the company.
They will also deal with customers better and build strong relationships with them.
1.4. Factors affecting loyalty
1.4.1. Salary and benefits
Wages are both an expensive and an asset. Expensive costs reflect through
labor costs. In the service sector, labor costs account for about 50% of the total
cost. However, remuneration is also an asset because it motivates employees to

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make efforts. It is a potential to affect employees' work behavior, motivating more
productive employees. Wages help employees improve their work, increase

productivity and lower the number of people who quit their jobs.
Some companies want to lead in higher salaries than other companies. These
companies want to attract talent because they think that paying higher wages than
other firms will attract highly qualified candidates. Some companies apply a salary
policy that is lower than the current salary. There are two reasons why these
companies pay low wages; one is that the company falls into a difficult financial
situation; secondly, they think that they do not need good workers to do simple
jobs. But studies have shown that paying low wages does not mean saving a sum of
labor costs. On the contrary, the company will be more expensive, because workers
will not be productive, the rate of good people leaving will be high to find other
places to pay higher wages.
According to Tran Kim Dung (2003), the remuneration is always one of the
most challenging issues for managers in all businesses. Enterprises often have
different views and goals when setting up a pay system, but generally businesses
aim to four basic objectives:
Attracting employees: The recommended salary is often one of the most
basic factors for a candidate to decide whether to accept a job at a business. The
higher the wage paying enterprises are, the more likely they are to attract good
candidates from the local market
Maintaining good employees: to maintain good employees for businesses,
high pay is not enough, but also must show fairness within the enterprise. When
employees find that businesses pay them unfairly, they will often feel
uncomfortable, inhibited and depressed, even leaving the business.
Stimulating and motivating employees: If the policies and governance activities
in the enterprise let employees realize that their efforts, hard work and good performance
will not be compensated adequately. They will not try to work anymore, gradually, can
form passive, passive among all employees of the business.
Meeting the requirements of the law: the fundamental issues of the law

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regarding labor pay in enterprises often focus on the following issues: the minimum
wage regulation, the time and the thing labor law, regulations on child labor,
allowances in wages, regulations on social welfare such as social insurance,
sickness, maternity, labor accidents, ...
All employees want to be rewarded for their contributions or contributions
in certain ways. Workers who can get in an organization are not just money and not
all people work for money. Money will be a strong encouragement for low-skilled
workers and those pursuing material wealth, but money has little impact on those
who like to do challenging jobs. Therefore, reward must be directed towards
satisfying the individual needs of employees.
The theory of expectation indicates that workers will not pursue rewards
when they realize rewards are not attainable. Therefore, the forms of material
encouragement must be designed in such a way that it will create employee
confidence in the connection between reward and effort.
Moreover, the reward must show personal justice (compare the effort spent
with the rewards received) and social justice (compare your efforts and rewards
with others) under the same conditions). If rewards do not give employees an
awareness of fairness, it is difficult to have good activities of workers.
In addition, to encourage employees 'efforts towards achieving the
organization's objectives, rewarding must be associated with the results and
effectiveness of the performance of employees' tasks.
According to Tran Kim Dung (2003), welfare shows the interest of
enterprises to the lives of workers, which stimulates loyal and attached employees
to enterprises. Business benefits include: Social insurance and health insurance;
retire; leave, holidays; lunch is covered by the enterprise; business subsidies for
large or disadvantaged employees; Business gifts for employees on birthdays,
weddings, happy parents and staff.
For Nguyen Huu Than (2001), welfare consists of two main parts: regulatory

and welfare benefits that are voluntarily applied by companies in part to stimulate
employee incentives, and partly to maintain and attract talented people to work for

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the company. Voluntary benefits are health insurance programs, health insurance
programs, types of services, programs that pay for harmful benefits - hazards and
other subsidies such as grants to establish centers, child care center when their
parents work or a program to diagnose and treat public blood pressure. Each
company has many initiatives for different types of subsidies, but all have a
common goal of encouraging employees to work, feel secure to work, and stick
with more agencies.
1.4.2. Work environment [6]
The working environment is always concerned by workers because the
working environment is related to personal convenience but it is also a factor that
helps them to fulfill their tasks. Workers do not like dangerous, unfavorable and
inconvenient working environments. Temperature, light, noise, and other
environmental factors must be appropriate. Moreover, many workers prefer to work
close to home, with clean, modern working facilities and appropriate equipment.
1.4.3. Colleague [5]
People get from work from many things, not just money and achievements.
For most workers, work also satisfies the need for interaction. Therefore, it is not
surprising that people who collaborate and support will increase job satisfaction.
Behavior of leaders is also a key factor determining satisfaction. Employee
satisfaction increases when their leader is knowledgeable, friendly, and gives praise
when workers perform well, listening to employees' opinions, and know about the
interests of workers.
In order for employees to wholeheartedly serve the business, the superior
communication technique for their subordinates is very important. Administrators

create a friendly atmosphere, trust in employees, pay attention to building good
relationships, behave courteously, respect employees, pay attention to their
opinions, not force they are more powerful, but by their true reputation, the more
they promote their talents, stimulate them to work harder and be more effective.
1.4.4. Leadership style [13]
Leadership in this study is defined as the process that leaders influence and

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influence, encourage encouragement and direction for the activities of the executives to
achieve the common goals of the organization, at the same time. Based on some
theories show that Leadership has a positive influence on employee loyalty.
According to research by Tran Kim Dung & Nguyen Thi Mai Trang (2007)
on the impact of organizational culture and leadership style on their performance
and loyalty to the organization, the new leadership style comes substance (including 3
components: attractive-inspirational; intellectual encouragement; personal interest) has a
positive impact on employee loyalty. When a leader is able to convey inspiration to work
for employees, "providing subordinates with a clear sense of purpose" will give life force
staff to work and have positive thoughts from there, more with the company. The leader
also needs to be an example for his subordinates to follow and encourage employees to
find new solutions to complete the job. Care and encouragement of employees must be
done appropriately. That is, only encouraging employees, showing employees that they
do it for themselves, not for the company. From there they will have admiration for
leaders that stick with the company more.
1.4.5. Interest in work
Regarding the challenges of work, the opportunity to use personal abilities and
feel interesting when doing the job. People who are not much suited to work are more
likely to leave the organization than those who have a personal and work fit.
1.4.6. Recruitment of personnel

The foundation of a business is always a strong, capable and suitable staff of
the company, loyal to the company. In order to have such staff, it asks a
combination of many factors such as remuneration, working environment, training
and development, empowerment, corporate culture, ... However, the first element
has The most important role is the recruitment process.
1.4.7. Support of the organization
When employees feel that they get help and coordination in good work with their
colleagues; being encouraged by the higher level will create confidence for them to
strive to accomplish the job well and want to contribute more to the organization.
1.4.8. Authorize

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