Factors impact on employee retention in Vietnamese enterprises
Main Article Content
Abstract
The study aims to determine the factor's impact on employee retention in Vietnamese enterprises. Quantitative research method with PLS-SEM modeling technique, data analysis using SmartPLS software with a research sample of 303 employees working at Vietnamese enterprises in Ho Chi Minh City. Based on Employee equity theory, research results show that organizational commitment, job satisfaction, and psychological contract all have an impact on employee retention in Vietnamese enterprises. In which job satisfaction has a stronger impact on employee retention than psychological contract and organizational commitment. Regarding employee retention, male and SME employees responded more strongly than female and large-enterprise employees. The study fills in the research gap on employee retention in Vietnamese enterprises and also makes a small contribution to increasing the understanding of researchers about employee retention.
Article Details
Keywords
Employee retention, Organizational commitment, Job satisfaction, Psychological contract
References
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Cardy, R. L., & Lengnick-Hall, M. L. (2011). Will they stay or will they go? Exploring a customer-oriented approach to employee retention. Journal of Business and Psychology, 26(2), 213-217.
Cardy, R. L., Miller, J. S., & Ellis, A. D. (2007). Employee equity: Toward a person-based approach to HRM. Human Resource Management Review, 17(2), 140-151.
Cho, Y. N., Rutherford, B. N., & Park, J. (2013). Emotional labor's impact in a retail environment. Journal of Business Research, 66(11), 2338-2345.
Das, B. L., & Baruah, M. (2013). Employee retention: A review of literature. Journal of Business and Management, 14(2), 8-16.
D'Amato, A., & Herzfeldt, R. (2008). Learning orientation, organizational commitment and talent retention across generations: A study of European managers. Journal of Managerial Psychology, 23(8), 929-953.
Evans, J.R., & Mathur, A. (2018). The value of online surveys: A look back and a look ahead. Internet Research, 28(4), 854–887.
Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50.
Hair, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2016). A primer on partial least squares structural equation modeling (PLS-SEM) (2nd ed.). Thousand Oaks, CA: Sage.
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Naz, S., Li, C., Nisar, Q. A., Khan, M. A. S., Ahmad, N., & Anwar, F. (2020). A study in the relationship between supportive work environment and employee retention: Role of organizational commitment and person–organization fit as mediators. SAGE Open, 10(2), 1-20.
Osteraker, M. C. (1999). Measuring motivation in a learning organization. Journal of Workplace Learning, 11(2), 73-77.
Pate, J. (2006). The changing contours of the psychological contract: Unpacking context and circumstances of breach. Journal of European Industrial Training, 30(1), 32–47.
Pradhan, R. K., Jena, L. K., & Pradhan, S. (2017). Role of psychological contract between organisational commitment and employee retention: Findings from Indian manufacturing industries. World Review of Science, Technology and Sustainable Development, 13(1), 18-36.
Raja, U., Johns, G., & Ntalianis, F. (2004). The Impact of personality on psychological contracts. Academy of Management Journal, 47(3), 350-367.
Restubog, S. L. D., Hornsey, M. J., Bordia, P., & Esposo, S. R. (2008). Effects of psychological contract breach on organizational citizenship behaviour: Insights from the group value model. Journal of Management Studies, 45(8), 1377-1400.
Restubog, S. L. D., Bordia, P., Tang, R. L., & Krebs, S. A. (2010). Investigating the moderating effects of leader–member exchange in the PCychological contract breach–employee performance relationship: A test of two competing perspectives. British journal of Management, 21(2), 422-437.
Ringim, K. J., Razalli, M. R., & Hasnan, N. (2012). A framework of business process re-engineering factors and organizational performance of Nigerian banks. Asian Social Science, 8(4), 203–216.
Rousseau, D. (1995). Psychological contracts in organizations: Understanding written and unwritten agreements. Thousand Oaks, California: Sage Publications, Inc.
Soomro, B. A., & Shah, N. (2019). Determining the impact of entrepreneurial orientation and organizational culture on job satisfaction, organizational commitment, and employee’s performance. South Asian Journal of Business Studies, 8(3), 266-282.
Tanwar, K. (2016). The Effect of employer brand dimensions on organisational commitment: Evidence from Indian IT industry. Asia-Pacific Journal of Management Research and Innovation, 12(3-4), 282-290.
Tanwar, K., & Prasad, A. (2016). Exploring the Relationship between Employer Branding and Employee Retention. Global Business Review, 17(3_suppl), 186-206.
Westlund, S. G., & Hannon, J. C. (2008). Retaining talent: Assessing job satisfaction facets most significantly related to software developer turnover intentions. Journal of Information Technology Management, 19(4), 1-15.
Zhao, H. A. O., Wayne, S. J., Glibkowski, B. C., & Bravo, J. (2007). The impact of psychological contract breach on work‐related outcomes: A meta‐analysis. Personnel Psychology, 60(3), 647-680.
Anis, A., Khan, M. A., & Humayoun, A. A. (2011). Impact of organizational commitment on job satisfaction and employee retention in pharmaceutical industry. African Journal of Business Management, 5(17), 7316-7324.
Anphabe (2018). Báo cáo khảo sát nơi làm việc tốt nhất Việt Nam 2018. Công ty Cổ phần Tập đoàn Anphabe. https://www.anphabe.com/survey-report.
Backhaus, K., & Tikoo, S. (2004). Conceptualizing and researching employer branding. Career Development International, 9(5), 501-517.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.
Bharadwaj, S., Khan, N. A., & Yameen, M. (2021). Unbundling employer branding, job satisfaction, organizational identification and employee retention: a sequential mediation analysis. Asia-Pacific Journal of Business Administration, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/APJBA-08-2020-0279.
Bloemer, J., & Odekerken‐Schröder, G. (2006). The role of employee relationship proneness in creating employee loyalty. International Journal of Bank Marketing, 24(4), 252-264.
Bộ Kế hoạch và Đầu tư (2020). Sách trắng doanh nghiệp Việt Nam năm 2020 [Vietnamese Enterprises White Book 2020]. http://www.mpi.gov.vn/Pages/tinbai.aspx?idTin=46136&idcm=37.
Bravo, G. A., Won, D., & Chiu, W. (2019). Psychological contract, job satisfaction, commitment, and turnover intention: Exploring the moderating role of psychological contract breach in National Collegiate Athletic Association coaches. International Journal of Sports Science & Coaching, 14(3), 273-284.
Cardy, R. L., & Lengnick-Hall, M. L. (2011). Will they stay or will they go? Exploring a customer-oriented approach to employee retention. Journal of Business and Psychology, 26(2), 213-217.
Cardy, R. L., Miller, J. S., & Ellis, A. D. (2007). Employee equity: Toward a person-based approach to HRM. Human Resource Management Review, 17(2), 140-151.
Cho, Y. N., Rutherford, B. N., & Park, J. (2013). Emotional labor's impact in a retail environment. Journal of Business Research, 66(11), 2338-2345.
Das, B. L., & Baruah, M. (2013). Employee retention: A review of literature. Journal of Business and Management, 14(2), 8-16.
D'Amato, A., & Herzfeldt, R. (2008). Learning orientation, organizational commitment and talent retention across generations: A study of European managers. Journal of Managerial Psychology, 23(8), 929-953.
Evans, J.R., & Mathur, A. (2018). The value of online surveys: A look back and a look ahead. Internet Research, 28(4), 854–887.
Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50.
Hair, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2016). A primer on partial least squares structural equation modeling (PLS-SEM) (2nd ed.). Thousand Oaks, CA: Sage.
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2-24.
Henseler, J., Hubona, G., & Ray, P. A. (2016). Using PLS path modeling in new technology research: Updated guidelines. Industrial Management & Data Systems, 116(1), 2-20.
Kyndt, E., Dochy, F., Michielsen, M., & Moeyaert, B. (2009). Employee retention: Organisational and personal perspectives. Vocations and Learning, 2(3), 195-215.
Michaels, E., Handfield-Jones, H., & Axelrod, B. (2001). The war for talent. Boston, Massachusetts: Harvard Business Press.
Miller, D., & Lee, J. (2001). The people make the process: Commitment to employees, decision making, and performance. Journal of Management, 27(2), 163-189.
Mowday, R. T., Porter, L. W., & Steers, R. M. (1982). Employee—organization linkages: The psychology of commitment, absenteeism, and turnover. Academic press.
Nayak, S., Jena, D., & Patnaik, S. (2021). Mediation framework connecting knowledge contract, psychological contract, employee retention, and employee satisfaction: An empirical study. International Journal of Engineering Business Management, 13, 1-10.
Naz, S., Li, C., Nisar, Q. A., Khan, M. A. S., Ahmad, N., & Anwar, F. (2020). A study in the relationship between supportive work environment and employee retention: Role of organizational commitment and person–organization fit as mediators. SAGE Open, 10(2), 1-20.
Osteraker, M. C. (1999). Measuring motivation in a learning organization. Journal of Workplace Learning, 11(2), 73-77.
Pate, J. (2006). The changing contours of the psychological contract: Unpacking context and circumstances of breach. Journal of European Industrial Training, 30(1), 32–47.
Pradhan, R. K., Jena, L. K., & Pradhan, S. (2017). Role of psychological contract between organisational commitment and employee retention: Findings from Indian manufacturing industries. World Review of Science, Technology and Sustainable Development, 13(1), 18-36.
Raja, U., Johns, G., & Ntalianis, F. (2004). The Impact of personality on psychological contracts. Academy of Management Journal, 47(3), 350-367.
Restubog, S. L. D., Hornsey, M. J., Bordia, P., & Esposo, S. R. (2008). Effects of psychological contract breach on organizational citizenship behaviour: Insights from the group value model. Journal of Management Studies, 45(8), 1377-1400.
Restubog, S. L. D., Bordia, P., Tang, R. L., & Krebs, S. A. (2010). Investigating the moderating effects of leader–member exchange in the PCychological contract breach–employee performance relationship: A test of two competing perspectives. British journal of Management, 21(2), 422-437.
Ringim, K. J., Razalli, M. R., & Hasnan, N. (2012). A framework of business process re-engineering factors and organizational performance of Nigerian banks. Asian Social Science, 8(4), 203–216.
Rousseau, D. (1995). Psychological contracts in organizations: Understanding written and unwritten agreements. Thousand Oaks, California: Sage Publications, Inc.
Soomro, B. A., & Shah, N. (2019). Determining the impact of entrepreneurial orientation and organizational culture on job satisfaction, organizational commitment, and employee’s performance. South Asian Journal of Business Studies, 8(3), 266-282.
Tanwar, K. (2016). The Effect of employer brand dimensions on organisational commitment: Evidence from Indian IT industry. Asia-Pacific Journal of Management Research and Innovation, 12(3-4), 282-290.
Tanwar, K., & Prasad, A. (2016). Exploring the Relationship between Employer Branding and Employee Retention. Global Business Review, 17(3_suppl), 186-206.
Westlund, S. G., & Hannon, J. C. (2008). Retaining talent: Assessing job satisfaction facets most significantly related to software developer turnover intentions. Journal of Information Technology Management, 19(4), 1-15.
Zhao, H. A. O., Wayne, S. J., Glibkowski, B. C., & Bravo, J. (2007). The impact of psychological contract breach on work‐related outcomes: A meta‐analysis. Personnel Psychology, 60(3), 647-680.
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