Proceedings of the Second Asia-Pacific Conference on Global Business, Economics, Finance and Social Sciences (AP15Vietnam Conference) ISBN: 978-1-63415-833-6 Danang-Vietnam, 10-12 July, 2015 Paper ID: VL558

Study on the Factors affecting Job Satisfaction of Employees at BIDV (Bank for Investment and Development of Vietnam) Toan Le Duc, Duy Tan University, Danang City, Vietnam. Nhan Ho Van, Duy Tan University, Danang City, Vietnam. Phu Nguyen Huu, Duy Tan University, Danang City, Vietnam. Ha Nguyen Tang Duy Tan University, Danang City, Vietnam. Email: [email protected]

_____________________________________________________________________ Abstract In developed countries, there are many studies on the factors affecting job satisfaction of employees in enterprises, commercial banks such as the studies of Weiss et al (1967), Hackman, J. R. & Oldham, G. R. (1974). However, in Vietnam there are very few studies on this issue, this paper focuses on the factors that affect the job satisfaction of employees at a particular bank and gives necessary recommendations for the management and administration. ____________________________________________________________________________ Keywords: The factors affecting, job satisfaction

1

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Proceedings of the Second Asia-Pacific Conference on Global Business, Economics, Finance and Social Sciences (AP15Vietnam Conference) ISBN: 978-1-63415-833-6 Danang-Vietnam, 10-12 July, 2015 Paper ID: VL558

1. Research Rationale According to Weiss (1967), job satisfaction is the attitude towards work expressed by feelings, beliefs and behaviors of employees. Many studies show that there are two groups of factors that affect the satisfaction of employees, including personal characteristics and aspects of the job. - The elements of personal characteristics: gender; age; capacity; job position; sensitivity; the progressive. - The aspects of job: Nature of work; Salary; Leadership; Co-worker Relations; Working conditions; Training, promotion opportunities and Benefit policies.

2. Literature Review and Hypothesis Development 2.1 Literature Review There are many theoretical models of job satisfaction as: 2.1.1 The Minnesota Satisfaction Questionnaire (MSQ)

The MSQ (Weiss et al., 1967) is another satisfaction scale that has been very popular among researchers. The MSQ comes in two forms, a 100-item long version and a 20-item short form. It covers 20 facets, many of which are more specific than most other satisfaction scales. The long form contains five items per facet, whereas the short form contains only one. Most researchers who use the short form to combine all the items into a single total score, or compute extrinsic and intrinsic satisfaction subscales from subsets of items. Extrinsic satisfaction concerns aspects of work that have little to do with the job tasks or work itself, such as pay. Intrinsic satisfaction refers to the nature of the job and how people feel about the work they do. Subscales, which have better reliabilities than individual items, are generally preferred. (Paul E. Spector, 1997) 2.1.2 The Job Descriptive Index (JDI)

The Job Descriptive Index by Smith et al. (1969) includes 72 items to measure job satisfaction levels of employee in five facets. The JDI’s value and reliability are appreciated in both practice and theory for over 50% of the published research papers using JDI. Smith, Kendall and Hulin (1969) from Cornell University developed the JDI of the job description to assess the level of employee job satisfaction through the five facets: The nature of the job; Training & promotion opportunities; Salary; Leadership; Colleagues. Later, Crossman and Bassem (2003) added two more facets: benefits and work environment. 2.1.3 The Job Diagnostic Survey (JDS)

The IDS model of Hackman & Oldham (1974) has five core characteristics: skill variety, task identity, task significance, autonomy and feedback, these characteristics impact on the 3 psychological states: understanding task significances, responsibility for work results and perception of work results, from these states will produce the work results. 2

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Proceedings of the Second Asia-Pacific Conference on Global Business, Economics, Finance and Social Sciences (AP15Vietnam Conference) ISBN: 978-1-63415-833-6 Danang-Vietnam, 10-12 July, 2015 Paper ID: VL558

2.1.4 The Job Satisfaction Survey (JSS)

The Job Satisfaction Survey of Spector (1997), developed to apply to enterprises in the service sector, is the nine facet scale to assess employee attitudes about the job and aspects of the job. The nine facets are: Salary; Promotion; Work conditions; Supervision; Co-workers; Nature of the job, Communication; Contingent Rewards (performance based rewards) and Fringe Benefits. In Vietnam, some authors use the JSS model as a basis for researching the job satisfaction of employees and in the process of study; they have modified, added some other components related to the job in order to suit conditions and job characteristics of each business, each region in the different stages. 2.2 Hypothesis Development 2.2.1 Proposed Research Model

For the Bank for Investment and Development of Vietnam (BIDV), Quang Nam Branch - A Joint Stock Commercial Bank - Office at 112 Phan Boi Chau, Tam Ky City, Quang Nam Province, with the total officer and employee number of 120 people. Based on the studies mentioned in Section 2.1, the author proposes a research model with seven factor groups which impact on the job satisfaction of employees at the BIDV, Quang Nam Province Branch as follows - Job characteristics - Salary - Leadership - Co-workers - Training and promotion - Working conditions - Social welfare policy 2.2.2 The Hypotheses of the Research Model as Follows

The nature, characteristics of the job: The satisfaction of employees is affected by the job characteristics such as pressure, the work assignment matching capabilities. The job will be judged well if the satisfaction of employees is greater. H1: Job characteristics are to correlate the same way with the satisfaction of employees. Salary policy: Income is considered as a factor showing the most clearly contributing result of the employees received from organizations and businesses. H2: Salary policy is to correlate the same way with the satisfaction of employees. Co-workers: The satisfaction of employees is also affected by the relationship of co-workers. Open-heartedness, interest and helping each other among co-workers have very positive impacts on employees. 3

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Proceedings of the Second Asia-Pacific Conference on Global Business, Economics, Finance and Social Sciences (AP15Vietnam Conference) ISBN: 978-1-63415-833-6 Danang-Vietnam, 10-12 July, 2015 Paper ID: VL558

H3: Leadership factor is to correlate the same way with the employee satisfaction. Training, promotion: The plan of recruitment, appointment done in organizations affects feelings of employees about the fairness and transparency. H4: Co-worker factor is to correlate the same way with the employee satisfaction. Leadership: The people who manage directly the work of employees. The style, attitude of leaders impact significantly to the satisfaction of employees. H5: Training, promotion policies are to correlate the same way with the employee satisfaction. Environment and working conditions are the conditions of the facilities, the safety and hygiene of the workplace. H6: Environment and working conditions are to correlate the same way with the satisfaction of employees. Social welfare policies are fringe benefits that employees receive from businesses such as social insurance, vacation, corporate activities, showing the interest in workers. H7: Social welfare policy is to correlate the same way with the satisfaction of employees. The personal characteristics such as gender, age, qualifications, position, seniority, ... also affect the employee sense of job satisfaction. H8: There are differences in the satisfaction of employees by age H9: There are differences in the satisfaction of employees by gender. H10: There are differences in the satisfaction of employees by qualifications. H11: There are differences in the satisfaction of employees by seniority. H12: There are differences in the satisfaction of employees by departments. H13: There are differences in the satisfaction of employees by position.

3. Research Method On the basis of reasoning, the theoretical basis of model selection, process building, study sampling, hypothesis suggestion, using 5-level Likert scale, using SPSS 20.0 software for handling. 3.1. Building a Questionnaire and the Scales of Employee Satisfaction Including 24 variables of 7 factors as the following Table 1 Table 1: The scale of employee satisfaction in the study model

Job characteristics Job1

The job showing the social position

Job2

The job fitting with personal capacity

Job3

The work enhancing knowledge, understanding

Job4

The job is stable and does not require overtime, unplanned work Salary policies 4

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Proceedings of the Second Asia-Pacific Conference on Global Business, Economics, Finance and Social Sciences (AP15Vietnam Conference) ISBN: 978-1-63415-833-6 Danang-Vietnam, 10-12 July, 2015 Paper ID: VL558

Salary1

Income is worthy of the capacity, performance of employees

Salary2

Income is sufficient to cover the needs of life

Salary3

Salary, bonus are competitive with other banks

Salary4

Implementation of reward and discipline is fairness and transparency Leadership

Leadership1

Manager’s style, attitude, qualifications

Leadership2

Manager is friendly, fair

Leadership3

Manager’s guide is enthusiastic, specific and their timely support

Leadership4

Manager provides opportunities for employees to learn & develop

Co-workers Co-worker1

Co-workes are friendly, open-hearted

Co-worker2

Co-workers support and cooperate with each other

Co-worker3

Co-workers are interested in each other, help each other in life Training, promotion

Training, promotion1

Recruitment, position, appointment are made transparent, fair

Training, promotion2

Employees may participate in training courses

Training, promotion3

Employees have the opportunity to promote Work conditions

Work conditions1

Workplace is comfortable, safe, and sanitary

Work conditions2

Work equipment is modern and scientific

Work conditions3

Information of the working conditions is transparent Benefit policy

Benefit1

Benefit policy is fully implemented, showing the interest in employees

Benefit2

Satisfied with the social insurance, health insurance

Benefit3

Satisfied with the mode of vacation, holiday

Similarly, the variables measuring employee satisfaction are also applied 5-level Likert scale to 3 following variables: Satisfaction1

Love the current job

Satisfaction2

Pleased to be working in the BIDV, Quang Nam

Satisfaction3

Employees will work in the long term with the BIDV.

3.2. Sample Selection The questionnaire will be printed on paper, distributed to all employees currently working at the Bank at the time of the survey. Respondents are all employees currently working at the BIDV, Quang Nam Branch. The size of overall study is N=120. 5

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Proceedings of the Second Asia-Pacific Conference on Global Business, Economics, Finance and Social Sciences (AP15Vietnam Conference) ISBN: 978-1-63415-833-6 Danang-Vietnam, 10-12 July, 2015 Paper ID: VL558

3.3 Analysis and Processing of Data The data collected were processed and analyzed with the aid of Statistical Package for the SPSS software version 20.0 using analytical techniques of multivariate statistics such as Cronbach’s Alpha, EFA, Multi-Regression Analysis to find out the answers to the purpose research.

4. Data Analysis and Empirical Results 4.1 Data Analysis The total number of questionnaires distributed is 120/120 employees currently working at the BIDV Quang Nam. The total number of questionnaires collected is 120, the questionnaires are valid after being checked out. Thus the total number included in the analysis and processing is 120 questionnaires. The characteristics related to the 120 subjects of investigation are as follows: Gender: males account for 50.8% and females account for 49.2% of the total number of employees at the BIDV, Quang Nam Branch. Percentage difference between men and women is not large and fairly even, this shows that BIDV Quang Nam used and distributed evenly labors. Age: The age of 30-45 is large proportion, about 49% of the total number of employees and those who are with much experience in the industry. Number of employees under 30 accounts for 36.7%; from 46-55: 12.5%; over 55: 1.7% Seniority: over 10 years: 34.2%; 6-10 years: 30.8%; 2-5 years: 26.7%; under 2 years: 8.3%. More than 60% of employees work less than 10 years, through which shows that the seniority of the Bank staff is also quite young. Positions: employees 70.8%; leaders of departments and branches: 29.2% Qualifications: college level: 71.7%; postgraduate: 3.3%; levels of intermediate and senior high school: 25% 4.2 Empirical Results 4.2.1 Rating Scales by Cronbach's Alpha Reliability Coefficient

Results of the analysis show: - Cronbach's Alpha coefficient of the variable groups is > 0.6 and Corrected Item-Total Correlation of variables is > 0.3 so the variables in the model are satisfactory for inspection, can be used for subsequent analysis. - The satisfaction scale with Cronbach's Alpha coefficient = 0.829 > (0.6) and Corrected ItemTotal Correlation is > 0.3 so the scale is satisfactory. These variables will be included in the next factor analysis. 4.2.2 Explantory Factor Analyse (EFA)

(i) Scale of factors affecting the employee satisfaction 6

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Proceedings of the Second Asia-Pacific Conference on Global Business, Economics, Finance and Social Sciences (AP15Vietnam Conference) ISBN: 978-1-63415-833-6 Danang-Vietnam, 10-12 July, 2015 Paper ID: VL558

Table 2 shows the observed variables in the overall have no correlation with each other (sig = 0.000). The KMO coefficient is fairly high = 0.917 (> 0.5), this proves the (EFA) factor analysis is suitable for use. Table 2: KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Approx. Chi-Square Df Bartlett's Test of Sphericity Sig.

.917 2395.868 276 .000

(Source: Research results of the thesis) Table 3: Rotated Component Matrixa

1

2

Salary2

.794

Salary4

.783

Benefit1

.735

Salary1

.721

.317

Benefit3

.681

.306

Benefit2

.652

Salary3

.606

Leadership3

.305

Co-worker1 Co-worker2

.374

.357

.728

.689 .319

Leadership1

.427

.663 .655

.381

Job1

.784

Job3

.762 .315

.360

Job4

.755 .690

.327

.828

Training, promotion1 Training, promotion3

.320

.748

Leadership4

Training, promotion2

5

.775

.696

Job2

4

.379

Leadership2

Co-worker3

Component 3

.820 .358

.715

Work conditions1

.796

Work conditions2

.303

Work conditions3

.325

Eigenvalue

12.489

.755 .690

1.738

1.293

1.256

1.104 7

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Proceedings of the Second Asia-Pacific Conference on Global Business, Economics, Finance and Social Sciences (AP15Vietnam Conference) ISBN: 978-1-63415-833-6 Danang-Vietnam, 10-12 July, 2015 Paper ID: VL558

52.037

Cumulative (%)

5.388

5.234

4.601 74.499

Cronbach's Alpha coefficient

7.240

0.940

0.915

0.906

0.894

0.781

(Source: Research results of the thesis) Extraction Method: Principal Component Analysis, Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 7 iterations.

The results show that there are some changes in the observed variables among SHL assessment factors for initial work: - The No.1 factor includes seven variables: Salary1, Salary2, Salary3, Salary4, Benefit1, Benefit2, and Benefit3. In general, most of the variables are Salary and Benefit factors. Therefore, this factor is named the income and benefit. - The No.2 factor includes 7 variables: Leadership1, Leadership2, Leadership3, Leadership4, Co-worker1, Co-worker2, and Co-worker3. These seven variables are in the factors of leaders and co-workers, who worked at the same agency. Thus, this factor is named the leaders and coworkers. - The No.3 factor includes four variables: Job1, Job2, Job3, and Job4. These four variables are in the component of job characteristics. - The No.4 factor includes 3 variables: Training, promotion1, Training, promotion2, Training, promotion3. These 3 variables are in the factor of training, promotion. - The No.5 factor includes 3 variables: Work condition1, Work condition2, Work condition3. These 3 variables are in the factor of work conditions. (ii) The Scale of Employee Satisfaction Performing KMO and Bartlett`s testing with fairly good KMO coefficient = 0.720 (> 0.5), this proves the factor analysis is suitable for use. With (Principal Component) Extraction Method and Varimax Rotation extract a single factor in Eigenvalue value of 2.243 and Cumulative is 74.760% (> 50%). Moreover, the factor loading coefficient of variables is fairly high (> 0.7). Thus, the observed variables of this scale are satisfactory for subsequent analysis. Table 4: EFA

Factor Variables 1 Satisfaction3

.878

Satisfaction2

.868

Satisfaction1

.848

Eigenvalue

2.243 8

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Proceedings of the Second Asia-Pacific Conference on Global Business, Economics, Finance and Social Sciences (AP15Vietnam Conference) ISBN: 978-1-63415-833-6 Danang-Vietnam, 10-12 July, 2015 Paper ID: VL558

Cumulative (%)

74.760

(Source: Research results of the thesis)

4.3. Adjusted Model According to the EFA analysis above, the theoretical model to study the factors affecting the satisfaction of employees at the Bank is adjusted as the figure 1 below: Figure 1: Adjusted Research Model

Income, benefits

Leaders, co-workers The satisfaction Job characteristics

of employees

Training, promotion

Work conditions

The personal factors: -

Age

- Seniority

-

Gender

- Departments

-

Qualifications

- Position

The hypotheses of the adjusted model are as follows: H1: Income and benefits are to correlate the same way with the employee satisfaction.

H2: Leadership and co-worker factors are to correlate the same way with the employee satisfaction. H3: Job characteristics are to correlate the same way with the employee satisfaction. H4: Training, promotion policies are to correlate the same way with the employee satisfaction. H5: Environment and working conditions are to correlate the same way with the employee satisfaction. H6: There are differences in the satisfaction of employees by age. H7: There are differences in the satisfaction of employees by gender. 9

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Proceedings of the Second Asia-Pacific Conference on Global Business, Economics, Finance and Social Sciences (AP15Vietnam Conference) ISBN: 978-1-63415-833-6 Danang-Vietnam, 10-12 July, 2015 Paper ID: VL558

H8: There are differences in the satisfaction of employees by qualifications. H9: There are differences in the satisfaction of employees by seniority. H10: There are differences in the satisfaction of employees by departments. H11: There are differences in the satisfaction of employees by positions.

5. Testing the Research Hypotheses 5.1 Assessing the Fitness of the Multiple Regression Model After performing EFA, there are 5 factors included in the model testing. The value of each factor is the average value of the component observed variables of that factor. Correlation Analysis (Pearson) is used to examine the fitness when including the components in the regression model. The results of the regression analysis will be used to test hypotheses from H1 to H5 described above: - Dependent variable: Satisfaction - Independent variables: Income-benefits, Leaders-co-workers, Job characteristics, Trainingpromotion, Work condition. 5.1.1 Testing the Correlation Coefficient

Performing the correlation analysis with the results at Correlation Matrix, the variables of Income benefits, Leaders co-workers, Job characteristics, Training promotion, Work condition are to correlate closely with the variable of employee satisfaction with the significance level of 1%. 5.1.2 Regression Analysis

Analysis is performed by the Enter method. Results of regression analysis are as follows: Table 5: Model Summary-b Mode l

Adjusted R

R2

R Square

1

.941a

.885

.880

Change Statistics

Std. Error of the Estimate .16340

Durbin R Square Change .885

F Change 176.277

df1

df2

5 114a

Sig. F

Watson

Change .000

1.484

a. Predictor: (Constant), Income,benefits; Leaders,Co-workers; Job characteristics; Training,promotion and Work condition. b. Dependent Variable: Satisfaction (Source: Research results of the thesis)

Adjusted R Square = 0.880 means the constructed multiple regression model in accordance with the data set by 88.0%. Durbin - Watson = 1.484 (d = 1.571), based on an index to test the Durbin - Watson with 5 independent variables and 120 observations, we see the value d in the accepted domain, the hypothesis has no correlation to most chains. Thus, the regression model just built does not violate assumptions.

10

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Proceedings of the Second Asia-Pacific Conference on Global Business, Economics, Finance and Social Sciences (AP15Vietnam Conference) ISBN: 978-1-63415-833-6 Danang-Vietnam, 10-12 July, 2015 Paper ID: VL558

To check the fitness of the regression model just built with the overall study, we consider testing F. Table 6: ANOVAa

Model

Sum of Squares

Df

Mean Square

F

Sig.

Regression

23.534

5

4.707

176.277

.000b

Residual

3.044

114

.027

Total

26.578

119

1

a Dependent Variable: Satisfaction b. Predictor: (Constant), Income,benefits; Leaders,Co-workers; Job characteristics; Training,promotion and Work condition. Table 7: Coefficientsa

Model

Unstandardized

Standardized

Coefficients

Coefficients

B

Std. Error

.120

.155

Income/benefits

.438

.047

Leaders, Co-workers

.183

Job characteristics

1 (Constant)

Collinearity t

Statistics

Sig.

Beta

Tolerance

VIF

.771

.442

.511

9.332

.000

.335

2.983

.050

.179

3.658

.000

.420

2.379

.094

.042

.107

2.225

.028

.432

2.314

Training, promotion

.195

.042

.200

4.660

.000

.544

1.839

Work condition

.112

.047

.098

2.404

.018

.608

1.644

(Source: Research results of the thesis)

Sig. = 0.000