Key factors influencing employees’ job motivation and loyalty at enterprises in Dong Nai province in Vietnam

Abstract

Background: Employee motivation and loyalty are essential elements that drive individuals to perform diligently, optimizing productivity and efficiency within a business. Motivation manifests as the effort and dedication towards achieving both organizational and personal objectives. Thus, fostering job motivation is vital for enhancing labor productivity and encouraging employees to work more efficiently.

Objective: The research objective assesses the primary determinants of employee motivation and loyalty in enterprises located in Dong Nai province, Vietnam. Based on this premise, the author suggests management strategies to enhance employee motivation and loyalty in firms located in Dong Nai province.

Methodology: The research applies both qualitative and quantitative methods. Qualitative research was conducted with 30 business managers with extensive experience in human resource management. The research aimed to explore the factors affecting employee motivation and loyalty. The study used an official questionnaire to survey research subjects and was conducted on an official data set of 1.000 employees, but it was 920 valid. Data was collected from the survey using SPSS 20.0 and Amos software to test the reliability of the scales using Cronbach's Alpha reliability coefficient, exploratory factor analysis, confirmatory factor analysis, and structural modeling model (SEM).

Result: The results of the structural equation model showed that all eight key factors mentioned positively influence employees' job motivation and loyalty at enterprises in Dong Nai province. In addition, job motivation also affects employees' loyalty with a significance level of 5%.

Conclusion: the author presented the conclusion and gave eight managerial implications for the job motivation and loyalty of the employees working at enterprises in Dong Nai province.

Unique Contribution: This study is beneficial in both theory and practice in managerial implications for business leaders to improve organizational efficiency by using policies to stimulate and motivate employees.

Key Recommendation: From the above results, the author proposes eight managerial recommendations to improve: (1) Corporate social responsibility, (2) training and development, (3) salary and benefits, (4) support from leaders and colleagues, (5) corporate culture, (6) working environment, (7) management capacity, and (8) performance evaluation. The corporate social responsibility is prioritized for implementation first because the standardized estimated coefficient has the highest value, and the last factor is the job performance evaluation factor because the standardized estimated coefficient has the lowest value when implemented showed management implications.